His view on real estates market in Malaysia: extracted from THEEDGE FINANCIALDAILY 13th June 2011:
Snapshot of the residential market
The growth of Malaysia’s property market generally mirrors the growth of the country. In 2010, a total of 376,583 residential transactions valued at RM107.44 billion were recorded, reflecting increases of 11.4% in volume and 32.6% in value respectively. Comparatively, in 2009, a total of 338,089 transactions valued at RM81.02 billion were recorded. There was a strong rebound from the global financial crisis, with average value per transaction peaking at RM223,270 (2007: RM182,927), reflecting an increase of 22.1% between 2007 and 2010.
Outlook
Prices of landed homes in selected locations in Klang Valley are expected to rise further in the next 12 months due to pent-up demand and limited new supply albeit at a slower pace (5% to 10% on average) compared to 2010/early 2011 where some locations registered price increases exceeding 20%. Further possible interest rate hikes and cooling measures could dampen the market.
Prices of condominiums, particularly the high-end segment in locations such as KLCC, Mont’ Kiara and Ampang/U-Thant are expected to remain relatively flat due to lower occupational demand. In general, smaller units are in greater demand due to their lower entry costs as well as ease in leasing.
However, mid-market condominiums are expected to perform well especially those located within established and emerging suburban locations or along the proposed MRT route. The recent sharp spike in prices of landed homes has made this segment a more affordable alternative for those looking to own homes.
Significant projects since 2007
1, Bangsar South
The development has transformed the former Kampung Kerinchi into a much-sought after commercial spot.
2. Garden Residence in Cyberjaya
This project by Mah Sing Group has helped transform the residential market in Cyberjaya and set new benchmark pricing levels.
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