PETALING JAYA (April 25): The local property market will normalise in 2015 as market sentiment adapt to the recently implemented Goods and Services Tax (GST), said Previndran Singhe (pictured), founder and CEO of Zerin Properties at the The Edge Investment Forum on Real Estate 2015 today. The theme of this year’s forum is “Investing in Uncertain Times: Make Better Decisions”.
"We think the market will stabilise in the second half of the year once it has adapted to all policies including the 6% tax," said Previndran in his topic “Market Outlook -- What To Expect In 2015”.
"We also think the market will normalise with good global performance, Malaysia's positive gross domestic product, low unemployment rate, progression of the economic transformation programme projects, and multiplier effect from large infrastructure projects like improvements of public transportation and new highways."
Previndran viewed that 2016/2017 will mark full recovery for the property market with increased transactions and take-up rates.
He added that 2015's key focus will be on the secondary market, which continues to be stable after the removal of the developers’ interest bearing scheme (DIBS).
"The property market will continue to be resilient…Semi-detached and terraced houses within gated and guarded scheme in good locations will see increase in demand and prices, while high-rise condominiums will be stable throughout the year."
According to Previndran, transaction volume of properties between RM200,000 and RM500,000 grew 12% in 2014.
"However, properties below RM200,000 fell 40% year-on-year due to the strict lending guidelines by Bank Negara. The market that is very active is properties above RM500,000, with 20% growth per annum,” he adds.
The primary property market will see more launches in the coming quarters as developers proceed to launch new projects to capture pent-up demand.
For the full details of The Edge Investment Forum on Real Estate 2015, read the May 4 issue of City&Country, the property pullout of The Edge Malaysia.
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