Over a third of survey participants believe property prices will go down in next 12 months

PETALING JAYA (July 22): About 36.2% of people surveyed by TheEdgeProperty.com believed that prices of properties will decline in the next 12 months, citing factors such as the current dampened economic sentiment, oversupply and lending curbs.

Meanwhile, the remaining respondents were split equally in their outlook, with half believing that prices would remain stagnant, while the rest felt that prices would rise.

Some of those who believe that prices will remain stagnant say the market has hit the bottom, so prices are unlikely to drop further.

Meanwhile, those who believe that prices will go up say rising costs of development and land scarcity will drive prices upwards.

Town planner Rosaini Wan Hassan believes that development costs — such as land, building materials and labour — have gone up steadily amid the weakening ringgit, lack of government incentives and the introduction of the Goods and Services Tax.

Some of the respondents — that included professionals in the real estate industry, finance and law — feel that certain property types and locations will be more affected than others.

“High-rise property values will be lower while residential landed properties will either stay stagnant or rise by no more than 5%,” said Panjakumar Bipinchandra, a director of investment and corporate strategy.

Business executive Hamizatul Akmal Huzailing expects property prices to decline on economic uncertainty.

“There is an oversupply of high-end residences in the market, hence, property developers will focus on more affordable homes and provide houses for genuine buyers,” she said.

Meanwhile, product manager Mubin Sammy Soon believes that property prices will “remain flat at best and go down due to property supply not meeting the perceived price of housebuyers”.

Khaw Yi Yun, who is in the property development line, expects prices to remain. “Property buyers are still practicing the wait-and-see approach. However, there are still genuine first-time homebuyers who will seek for property.”

The survey was held as part of a competition held by the portal to give away 10 tickets worth RM1,088 to the Malaysian Property Summit — Mid-Year Review 2016 on July 27 (Wednesday) at the Sime Darby Convention Centre in Kuala Lumpur.

The contest closed on July 21. The winners have been contacted.