Property Market Review 2014\/15<\/em> by the property consultancy firm, Rahim & Co., property prices in Malaysia are said to be expected to consolidate this year.<\/p>\nA higher transaction numbers were recorded in the first half of 2014, rebeounding after a slowdown in 2013, said Tan Sri Abdul Rahim Abdul Rahman, the executive chairman of the firm.<\/p>\n
The first half of 2014 saw a 3.3% growth compared to the same period in 2013, with transaction value of RM82 billion (19.3% increase).<\/p>\n
The double-digit increase in value, as opposed to a less than 5% growth in the number of transactions, indicates that average prices are still increasing. The pace of growth would be \u201cslower\u201d in 2015, he said.<\/p>\n
Slow Down in Demand<\/h2>\n
The slower growth and demand for high-rise condominiums has resulted in an oversupply. The current consolidation of completed units is expected to give rise to more foreclosures going forward.<\/p>\n
\u201cBut strong liquidity will be able to absorb this,\u201d said managing director, Robert Ang.<\/p>\n
Property flipping may not be possible. Property owners expected high margins earlier and they may not want to go ahead with the mortgage payments.<\/p>\n
The rentals may not be able to cover mortgage payments. This may result in the weaker ones falling on the wayside, said Ang.<\/p>\n
However, Malaysians still have an appetite for land, he added.<\/p>\n
Although the residential sub-segment is GST-exempt, building materials, labour and machinery are not.<\/p>\n
\u201cThere will not be more than a 3% to 4% price hike in residential properties, which is still lower than the 6% GST,\u201d Abdul Rahim said.<\/p>\n
This increment is not only due to the GST, but also the market\u2019s supply and demand mechanism, he added.<\/p>\n
According to studies by Rahim & Co, the least affordable terraced house is in Sabah, with a ratio of 6.2, followed by Penang at 5.9 and Kuala Lumpur at 5.6.<\/p>\n
While effective rental rates are expected to continute to decline due to longer rent-free periods, landlord providing renovation costs and rental review clauses which favour tenants.<\/p>\n","protected":false},"excerpt":{"rendered":"
What can we expect from the property market this year? Will the impending GST negatively affect the market? Read on to find out. <\/p>\n","protected":false},"author":9,"featured_media":13641,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[216,21],"tags":[],"class_list":["post-13638","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-updates","category-properties"],"acf":[],"yoast_head":"\n
Property Market Slowdown, Foreclosure Rising | iMoney<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\t\n\t\n\t\n