2012 outlook remains strong

KUALA LUMPUR (Jan 17): Any fall in transaction numbers or prices within the local property market is merely a technical correction and does not translate to a bearish property market, according to the National Property Information Centre (NAPIC) director Dr Zailan Isa.

"Our country has a lot of different cultures and trends," she said. "The behaviour of the industry varies. We have to take into account the season of spending and the celebrations. So, any drop in property transactions is normal and is merely a technical correction. But it doesn't mean the property market is bad."

Zailan added that because of this, NAPIC monitors both the half year trends and the full year trends to truly understand the market. However, she said the property market is still moving strongly.

Giving an overview of the Malaysian Economy and the Malaysian Property Market at the fifth Malaysian Property Summit on Tuesday, Zailan stressed that in 2011, the volume of transactions has reached 400,000 translating into RM101 billion worth of properties.

The Malaysian economy in 2012 is expected to grow by 3.8% to 5% with the government's Economic Transformation Programme (ETP) boosting the local property scene.

She added that the overall property market activities sustained by higher housing starts and building plan approvals signify confidence among developers and investors.

Vacant space in the retail and office sectors will be taken up by the market as private investments are spurred by the ETP, she said and expects the ETP within the Greater KL Plan will continue to give positive impacts on the property development within the coming two to three years.

Zailan remains bullish on the market as she expects the banking industry to continue supporting the market with ample funding.

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