Market to consolidate in 2014.5

THE EDGE WEEKLY ISSUE#995

THE WEEK OF DECEMBER 30, 2013 – JANUARY 5, 2014

City & Country Section

LOCAL CONSULTANTS’ POLL: By THE CITY & COUNTRY TEAM

PREVINDRAN SINGHE
CEO ZERIN PROPERTIES SDN. BHD.

Outlook

Kuala Lumpur and Penang will see an active market and prices will inch up further due to the lack of incoming supply to satisfy demand.  Demand is fuelled domestically, driven by full employment, a positive GDP and growth in the economy.  Johor will be flat for the first two months until the market adjusts to the 2% levy on foreign ownership.  Then it will see activity again.  Prices will remain stable in Johor Baru.

Where should investors look at?  Kuala Lumpur, Penang, Nusajaya and Kota Kinabalu.  Landed and freehold properties will be my theme for next year.  Notwithstanding, I see tremendous opportunity in condos in KLCC, Damansara Heights and Bangsar as the MRT and LRT works there are mostly underway.  However, I also think condos will thrive in Penang and Puteri Harbour, Johor.

Wish list

• The authorities to realise that the only way to control escalating prices is to increase supply by shortening the approval period and processes as the cost of this is transferred to the rakyat, and that is why prices are increasing; and
• With the removal of non-sustainable subsidies, the government should now use some of the subsidies to help build affordable housing.