Malaysia set for 2012 price increases says REHDA
Malaysia’s leading property developers believe that residential prices in the country will increase over the coming 12 months, according to a report out this week from the Real Estate Housing Developers' Association Malaysia (REHDA).
The survey found that three-quarters of its members think that home values will rise in 2012, with 36% of REHDA members predicting a 10% to 20% jump. One in three are more modest, expecting a 5% to 10% improvement.
However, business confidence and optimism levels in the Malaysian real estate sector as a whole is lower than it was six months ago, REHDA says.
Association president Datuk Seri Michael Yam told OPP that “our members are more cautious towards market conditions due to more compliance requirements imposed on the housing industry, global economic uncertainty and inadequate information and data with regards to on-stream demand and supply."
Despite these worries, the Malaysian housing and local government minister, Datuk Seri Chor Chee Heung, also said this week that property values will play an important part in transforming the country into a “high-income nation” by 2020. Heung argues that Kuala Lampur’s rampant property market is helping to establish the capital as a major economic centre and that there will be a trickle-down effect for the rest of the country.
The serviced apartment market in KL is doing particularly well. Serviced apartments are now the “third most popular property type being built after double-storey terrace houses and apartments/condominiums,” says REHDA.