Challenging days ahead, experts predict

It is expected that 2016 could spell another challenging year for the local real estate market unless the domestic and global economic situation improves, according to local property consultants polled by City&Country.

They highlighted that 2015 saw much uncertainty in the market, intensified by weak market perception due to the government's property cooling measures in 2014 to curb property speculation and escalating property prices.

The property market in 2015 was subdued with limited growth, deferred launches and a contraction in both value and volume of property transactions. Moreover, the implementation of the goods and services tax (GST) caused some uncertainty in the market and became an added cost for contractors and developers.

While the outlook for 2016 remains cautious, property consultants remain optimistic about properties in new growth areas and developments in the vicinity of upcoming rail lines and highways. The "hot" areas to look out for include Kajang, Semenyih, Rawang, Cheras, and Ijok.

The property consultants are also in favour of affordable housing as well as the relaxing of the cooling measures to spur transactions and construction activities, including encouraging foreign direct investment.

Meanwhile, they highlighted some significant policy changes in 2015 which include the enforcement of the Strata Management Act and the revision of the Strata Title Act, while significant transactions that took place include the sale of several parcels of land in Tun Razak Exchange (TRX) as well as the sale of Integra Tower.

Read the full report in the Jan 4, 2016, issue of City & Country, the property pullout of The Edge Malaysia. Tap here to subscribe for your personal copy.