Market to consolidate in 2014.8

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

Outlook

Landed properties in choice locations will remain positive.  However, there will be fewer transactions in the secondary market because of the (RPGT).  We may see an increase in transaction volume, as vendors would want to avoid the GST, which will be implemented in 2015.

Borrowing costs should not be raised too much or it will affect sales, and financing should not be too restrictive to have a vibrant 2014.  interest will still be on Medini Iskandar because of the incentives.  I also predict that interest will widen to non-residential, industrial and land.

If the Eastern Dispersal Link is tolled, there will be some effects on properties in the Tebrau region, although it will not be significant.  I also expect developers to innovate with new marketing techniques.

Investors should look at landed properties in popular locations, properties near the rapid transit system site that is to be announced soon, development lands outside the developed areas and projects by reputable developers, who will be building in phases, in order to enjoy the appreciation created by the developers.

Wish list

• Stable local and global financial markets;
• Consistent and long-term beneficial housing policies;
• The authorities should consult with stakeholders prior to the announcement or implementation of any policies; and
• Iskandar to continue to grow at a sustainable and healthy pace.