Feb 15, 2012 | Comments 1
The new year will bring a mixed market to Malaysia, with some sectors performing, and some experiencing a slow-down.
An over-supply of condos and office space will slow those property and rental markets, while lower-end housing, industrial and commercial property will remain strong says the Malaysian Institute of Estate Agents.
Experts are bracing for a slowdown in high-end residential property in the Malaysian market this year, MIEA president Nixon Paul told the (Malaysian) Star, despite confidence in the long-term market.
With uncertainty coming from the U.S. and the eurozone, the MIEA expects to see caution from buyers.
“We don’t expect to see any slowdown for property transactions within the RM300,000-to-RM600,000 range,” Paul said. “But there is a lot of caution now due to the uncertainty in Europe and the United States. With fear of a potential spillover effect, most buyers are adopting a wait-and-see’ approach.”
“Most investors are shifting to commercial from residential because they feel this sub-sector is more resilient, especially in a downturn,” he said, adding that there was pent-up demand for commercial property in Malaysia.
“There is an oversupply of office space. Rentals in prime locations such as KLCC may not be affected but not those located in the outskirts of the city,” he said, adding that major shopping complexes, especially within Kuala Lumpur, would continue to experience good take-up this year.
“We believe that the industrial sub-sector will also be quite active. Property prices in Bukit Jelutong and Glenmarie are at an all-time high,” Paul said.