Tuesday, August 10, 2010

Malaysia's Property Prices To Rise As Much As 20% Within 6 Months?

According to Datuk Michael Yam, President of Real Estate and Housing Developers' Association
Malaysia (REHDA), prices of residential properties will rise 10-20% over the next six months because of cost and inflationary pressures! He added that the current housing market is simmering, and there is neither boom nor bust, but property prices will rise. The increase will be in high-rise and landed properties in all price categories across Malaysia! The issue of rising property prices was partly due to an imbalance of supply and demand as more migrants move to land scarce Kuala Lumpur.

Interestingly, in a recent survey of 133 Rehda members, 81% expect price hikes by as much as 20% in the next six months!

Can you ever imagine a terrace-linked house being sold for about RM1.6 million? Well, that's happening in the upper-class enclaved Desa Park City!

Nevertheless, there are views that Malaysia's property prices are still under appreciated by foreigners. Some experts attributes this to a lack of liquidity in the market and competition from Hong Kong and Singapore where capital appreciation is better due to price volatility. In addition, when other important consideration comes into play, such as public transportation, the branding of the city and KL is considered provincial when compared to London, Hong Kong or Singapore. In simple terms, KL needs to be seen as world class and provides better livability.

For the full article on the above, click this link.

No comments: