Property market recovery seen by 2H18 — UEM Sunrise

KUALA LUMPUR (Oct 3): UEM Sunrise Bhd expects Malaysia's property market, particularly within the premium segment, to recover from the second half of next year on improving income growth and better mix of real estate products.

"We are hoping to see recovery of the property market from 2H18,"  said managing director Anwar Syahrin Abdul Ajib. "We are still seeing demand for premium property products.”

“The market is there provided (the project) is in the right location with strong value proposition," he told reporters on the sidelines of the Khazanah Megatrend Forum 2017.

Describing the current property market as "cautious", Anwar Syahrin said this is evident by consumers weighing their options very carefully before purchasing big-ticket items.

On the upcoming Budget 2018, he said UEM Sunrise hopes the government will address the issue of high building materials cost following the implementation of the Goods and Services Tax since April 2016.

"Basically, the property developers are asking for anything that can drive the real estate development cost down," he said.

On affordable housing, Anwar Syahrin said "it has always been an issue."

"The issue of affordable housing is linked to the land cost. The price of the house is always driven by land prices, and that is always a tricky issue as land acquisition cost is high," he said.

Bank Negara Malaysia had in its 2016 annual report described houses in Kuala Lumpur, Terengganu, Penang and Sabah as "severely unaffordable". The central bank said houses in most states are generally unaffordable for households earning the median income.

According to a study by Khazanah Research Institute published in 2015, there are warning signs that housing affordability in Malaysia, particularly for lower income households, will worsen if left unchecked. — theedgemarkets.com

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