East Coast property market to slow down due to challenges, says Rahim & Co

KUALA LUMPUR (Feb 24): The real estate market in the East Coast Economic Region, which comprises Pahang, Terengganu, Kelantan and District of Mersing, Johor, is expected to be slow due to the challenging economic environment and weakened consumer sentiment, said Rahim & Co International Sdn Bhd director Sulaiman Akhmady Mohd Saheh.

In the first nine months of last year, the transaction volume and value of residential, commercial and industrial property in Pahang was down 16.1% and 20.6% respectively, against the same period in 2015, he said at at the 10th Malaysian Property Summit 2017 yesterday.

He gave a presentation entitled "Regional market performance and outlook — eastern economic region" at the summit, which was organised by the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia.

The transaction volume and value of properties in Terengganu decreased 7.4% and 19.3% in the first nine months of last year from a year earlier, while Kelantan registered a 41.7% year-on-year increase in transaction volume, due to more residential and industrial transactions, but the state still recorded a 19.4% decrease in transaction value, he added.

He said that the East Coast property market will be slow going forward with the challenges and the number of launches and sales performance by developers which are declining.

However, there is a growing interest in the region from developers as it is still a relatively undercapitalised market, but there is a risk of market saturation as the East Coast market is a relatively smaller market due to the population size and income level, he noted.

"Affordability is a major concern in the East Coast region. With the market moving towards the affordable market segment, creative products within the affordable price range is poised to be well-received," he added.

Meanwhile, Sulaiman pointed out that there is opportunity to grab in the industrial sector due to the expansion of Kuantan port and incentives by the government.