Developers may cut prices to ease cash flow in challenging market

PETALING JAYA (Oct 25): This is the time for those looking to buy properties to look out for “bargains” as the challenging property market may prompt some developers to lower prices, said Datuk Steve Chong, the Johor branch chairman of the Real Estate and Housing Developers’ Association Malaysia (Rehda).

“There will be some developers who want to reduce their financial leverage during the current market slowdown. These developers will sell their properties at a cheaper price, so buyers should definitely look out for such opportunities,” said Chong during the TheEdgeProperty.com’s Roundtable on Budget 2017 yesterday.

“The outlook for the property sector is going to be challenging as well, so for developers who want to ease the pressure on their cash flow, they would cut their selling prices,” he added.

Moderated by TheEdgeProperty.com managing director and editor-in-chief Au Foong Yee, the roundtable invited six panellists to discuss the impact of Budget 2017 on the property sector, the cost of doing business and the outlook of the sector.

The panellists were Chong, Rehda deputy president Datuk Soam Heng Choon, Master Builders Association Malaysia president Foo Chek Lee, Rehda Selangor chairman Zulkifly Garib, Rehda Kedah and Perlis chairman Datuk Rick Cheng and Rehda deputy secretary general Tan Ching Meng.

For a detailed report on the roundtable, read the Oct 28, 2016 issue of TheEdgeProperty.com pullout. It is available free for download here.

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