KUALA LUMPUR: The Real Estate and Housing Developers’ Association (Rehda) Malaysia expects property prices to increase by up to 20% in the next six months on higher material and land costs, its president Datuk Seri Michael Yam said.
Yam noted that building material cost increased by between 5% and 10% annually. Steel bars, for instance, were priced at RM2,350 to RM2,580 per tonne at the end of last month, an increase of 30% to 40% from RM1,800 at end-2010. The average property price rise this year is expected to be about 13%, he added.
“The increase will range between 2% and 50%, depending on the location and the development type. With higher property prices, condominiums are a good buy inKuala Lumpur
The estimates are based on a half-yearly survey by Rehda among its members, comprising housing and property development companies, as at December last year. Some 135 out of 972 members from all states, or 14%, responded.
Yam noted that 58% of the respondents indicated that they have increased their launch prices by an average of 11% (minimum: 5%; maximum: 40%) in the second half of last year, compared with launches in the first half of last year.
He said a majority of the respondents were optimistic of the property market in the coming six months, while they anticipate the number of new launches to rise in the first half of this year.
Yam noted that building material cost increased by between 5% and 10% annually. Steel bars, for instance, were priced at RM2,350 to RM2,580 per tonne at the end of last month, an increase of 30% to 40% from RM1,800 at end-2010. The average property price rise this year is expected to be about 13%, he added.
“The increase will range between 2% and 50%, depending on the location and the development type. With higher property prices, condominiums are a good buy in
The estimates are based on a half-yearly survey by Rehda among its members, comprising housing and property development companies, as at December last year. Some 135 out of 972 members from all states, or 14%, responded.
Yam noted that 58% of the respondents indicated that they have increased their launch prices by an average of 11% (minimum: 5%; maximum: 40%) in the second half of last year, compared with launches in the first half of last year.
He said a majority of the respondents were optimistic of the property market in the coming six months, while they anticipate the number of new launches to rise in the first half of this year.
According to the survey, launches in the first half of this year in Kuala Lumpur
BothKuala Lumpur
Rehda exco member and treasurer Teh Boon Ghee said property prices inKuala Lumpur Kuala Lumpur
In general, properties launched last year were mostly terraced homes, semi-detached/bungalows, condominiums/apartments, serviced apartments as well as townhouses, the survey showed. Properties ranging from RM100,000 to RM500,000 were the most sellable, the survey stated, whilst properties priced between RM250,000 and RM500,000 were the most in demand. The Valuation and Property Services Department under the Finance Ministry had earlier forecast the property sector to contribute 19.6% to the 2010 GDP from 15.5% the previous year.
On the government’s My First Home Scheme announced recently, Yam said Rehda would appeal to the government to have a separate mechanism for properties inKuala Lumpur
“There are not many properties priced below RM220,000 inKuala Lumpur Klang Valley
In partnership with 25 financial institutions and banks, My First Home Scheme is designed for single adults and households earning no more than RM3,000, intending to purchase houses priced between RM100,000 and RM220,000.
Yam said many developers may need to review their future developments by building smaller units, where the condition may include higher plot ratio to encourage the construction of more affordable units, and ensure convenient transportation nearby.
Both
Rehda exco member and treasurer Teh Boon Ghee said property prices in
In general, properties launched last year were mostly terraced homes, semi-detached/bungalows, condominiums/apartments, serviced apartments as well as townhouses, the survey showed. Properties ranging from RM100,000 to RM500,000 were the most sellable, the survey stated, whilst properties priced between RM250,000 and RM500,000 were the most in demand. The Valuation and Property Services Department under the Finance Ministry had earlier forecast the property sector to contribute 19.6% to the 2010 GDP from 15.5% the previous year.
On the government’s My First Home Scheme announced recently, Yam said Rehda would appeal to the government to have a separate mechanism for properties in
“There are not many properties priced below RM220,000 in
In partnership with 25 financial institutions and banks, My First Home Scheme is designed for single adults and households earning no more than RM3,000, intending to purchase houses priced between RM100,000 and RM220,000.
Yam said many developers may need to review their future developments by building smaller units, where the condition may include higher plot ratio to encourage the construction of more affordable units, and ensure convenient transportation nearby.
This article is written by Racheal Lee & appeared on the Property page, The Edge Financial Daily, March 11, 2011 .
Malaysia is increasingly becoming the preferred investment destination in Asia due to its stable property market and relative affordability..but now 20% increase in prices is too high..:-)
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