Malaysia’s property sector stable in H1 2017, survey finds

Given rising living cost, a weaker ringgit, low oil prices and other factors, the real estate sector could still see slow growth in the second half of 2017. 

Confidence in the Malaysian property sector remained stable in the first half of 2017, with 36 per cent of respondents expressing overall satisfaction with market conditions during the period, according to PropertyGuru Malaysia’s Consumer Sentiment Survey.

The survey also found that another 24 per cent of respondents expressed neutral views, with negative perceptions declining to 39 per cent from a high of 53 per cent in the first quarter of 2015.

The sentiment was further supported by stable price perception for all property types in Malaysia, PropertyGuru said in a statement.

The key factor cited by consumers for overall satisfaction was the gradual but stable appreciation of property prices, particularly for landed residential properties in the key urban epicentres of Kuala Lumpur, Penang and Johor.

This is a marked contrast to the price hikes of previous years where flipping activity by speculators contributed to market over-heating and over-supply for certain property classes.

PropertyGuru Malaysia Country Manager, Sheldon Fernandez, said currently, the property market primarily consists of owner-occupiers or longer-term investors, with landed properties purchased largely by families or newly-weds using joint income affordability, providing the momentum for sales and purchase transactions.

“Houses are being bought further away from the city centre and this has emerged as a trend for 2016 and 2017. These factors are driving the development of a more stable property market where price appreciation may be smaller compared to recent years, but is also more stable and sustainable,” he said.

However, given rising living cost, a weaker ringgit, low oil prices and other factors, Sheldon said the real estate sector could still see slow growth in the second half of 2017.

On the impact of possible elections in 2017, he said Malaysians generally tended to adopt a wait and watch approach and transactions usually tapered off before the elections.

“However, momentum is likely to pick up once the elections, if any, are concluded,” he added.

(Source: Malay Mail)