‘Property buyers adopt cautious approach’

KUALA LUMPUR: Malaysians are adjusting to the new “cooling measures” in the property sector, adopting a cautious approach to purchasing or investing. They are waiting to see how the cooling measures announced in Budget 2014 will affect the property market, iProperty group chief executive officer Shaun Di Gregorio said.

“While Malaysians digest and react to the latest cooling measures, the property market can expect a slowdown,” he said in a statement.

Based on the iProperty.com Asia Property Market Sentiment Report 2014 for the first half of this year, he said affordability and rising house prices continue to remain a major concern. On a scale of 1 to 10 — 1 being very affordable and 10 not being affordable at all — respondents rated the current affordability of property at 7.5, Di Gregorio said.

He said 79% of respondents expect the implementation of the goods and services tax (GST) from April 1, 2015, to come with the risk of inflation.

The survey findings, which attracted 6,865 respondents from Malaysia, also showed that 70% believe the implementation of the GST will lead to an increase in property prices.

Highly popular areas for investment include Petaling Jaya, Ara Damansara and Puchong in Selangor, Iskandar Malaysia, Johor, Penang and Melaka, Di Gregorio said.

He said 51% of Singaporean respondents expressed strong interest in investing in Iskandar Malaysia with landed property the key favourite followed by private condominiums. — Bernama


This article first appeared in The Edge Financial Daily, on March 25, 2014.