Pent-up demand, along with improved buyer sentiment and overall business environment will spur the local property market to its ‘next market high’ in 2018, said PPC International Sdn Bhd.
Its Chief Executive Officer Siva Shanker noted that conditions have been improving, albeit slowly, with the introduction of the goods and services tax (GST) not having significant impact on the market as initially expected.
“GST came and went and everyone is still carrying on. But the general perception is that business is slow. When things are slow, the first thing that suffers will be property, because it is a big-ticket item,” said Siva.
He revealed that property transactions, and not prices, have been spiralling since 2012.
“But we believe things (transactions) are improving already and we expect 2018 to be the next market high.”
According to SK Brothers Realty Sdn Bhd general manager Chan Ai Cheng, the market will bounce back as soon as the government decides to ‘boost the sector’.
“We hope the market will return within the next two years,” said Chan.
She noted that this year’s transactions have been slower compared with that recorded over the same period last year.
“From our marketing activities and road shows so far, it (transactions) has reduced compared with last year. There’s a bit of hesitation.”
In a report, AmResearch reaffirmed last week an ‘overweight’ outlook for the property sector.
“While we expect residential prices to continue moving sideways in 2015, a return of pent-up demand towards end-2015 – barring external shocks – is possible as the market is still awash with liquidity,” it said.
“Besides that, property cooling measures and post GST impact appears to have already been priced-in, given the steep 52 percent discount that property stocks within our coverage currently trade at vis-à-vis their respective net asset value.”