The downtrend of the property market in 2015 which continued in the first half of 2016 is expected to remain for the rest of 2016.
“In the present uncertain economic scenario, the outlook of property market for 2016 is expected to be in similar momentum,” said the Valuation and Property Services Department director general Datuk Faizan Abdul Rahman.
“The overall market activity is anticipated to be further toned down. Nevertheless, the residential sub-sector will continue to dominate the market segment, with affordable housing taking the limelight,” he said during his presentation at the Malaysian Property Summit Mid-Year Review 2016 today.
He said a price correction can be expected as more supply of affordable housing by both public and private sectors enter the market while the slow growth in the House Price Index (HPI) will continue further.
The growth in HPI has been on a declining trend since the third quarter of 2013, when index points grew 12.2% year-on-year. In the fourth quarter of 2015, index points grew 7.2% year-on-year.
Faizan said the preliminary growth for first quarter of 2016 is 6.8% year-on-year. He said a favourable year-on-year growth range would be 3-5%.