Homes prices in Malaysia are expected to be stable, thanks to solid domestic demand and ample purchasing power, said Datuk FD Iskandar, Deputy President of the Real Estate and Housing Developers’ Association of Malaysia (REHDA).
“With the implementation of the Economic Transformation Programme and the Greater Kuala Lumpur, the real estate sector is set to experience skyrocketing demand in the coming years,” he told The Borneo Post.
Compared to other property segments, landed houses saw the highest demand this year and the same is expected for 2013 and 2014. One of the factors that contributed to the domestic demand was the country’s growth rate of between 2.2 and 2.3 percent, as well as the rapid urbanisation of Malaysia.
“In the 70s, the degree of urbanisation in Malaysia was only about 30 percent and it increased to 40 percent in the 80s. Now, the degree of urbanisation in the country is between 55 percent and 56 percent,” he said, adding that 200,000 houses were sold in 2011, of which 50 percent were new properties, with the rest being resale properties.
At the same time, people need not worry that a property bubble is looming. Of all the properties sold in 2011, only 1.8 percent was bought by foreigners, unlike in Singapore, where over 39 percent of properties were sold to expatriates, he said.
In addition, property prices in Malaysia are still one of the lowest in the ASEAN region.
“The best that we have is the KLCC area, with an average selling price of US$500 psf (RM1,525 psf). In Singapore, you will be paying US$2,000 (RM6,103) for the same area, while in Jakarta, you will get it in between US$700 and US$800 (RM2,136 to RM2,441),” he added.
Along the same lines, Iskandar Malaysia is expected to match KL in the near term and possibly surpass it inthe mid to long term due to the Iskandar effects from Singapore and the region.
- Iskandar Malaysia properties to see 5% price hike (minimum) (investjohor.wordpress.com)