ID :
56690
Tue, 04/21/2009 - 17:14
Auther :
Shortlink :
https://oananews.org//node/56690
The shortlink copeid
PROPERTY MARKET TO SEE MODERATE GROWTH
KUALA LUMPUR, April 21 (Bernama) -- The property market in Malaysia is
expected to moderate this year with prices and rentals correcting and
construction activities easing slightly in line with the current economic
slowdown.
Director-general of the Finance Ministry's Valuation and Property Services
Department, Abdullah Thalith Md Thani, said the prices and rentals, however,
were unlikely to plunge in the coming years, although there were some sort of
pressure in the first quarter of this year.
"The most vulnerable sub-sector will be the high-end residential market as
well as industrial property, which is already experiencing a slowdown.
"Perhaps the stimulus packages and the implementation of projects in the
Ninth Malaysia Plan will help cushion the impact of global economic crisis," he
told a media briefing after the launch of the Property Market Report by Deputy
Finance Minister, Chor Chee Heung, here Tuesday.
In his speech, Chor said the impact of the stimulus packages has started to
"kick in", which would stimulate the domestic demand and activate the housing
market as well.
"We don't foresee any bubble in the property sector as the government has
also come in to help stabilise the prices of houses," he said.
He said the government has always been concerned about housing and home
ownership, especially among the lower income group.
Chor said the commercial sub-sector has shown an improvement in overall
unsold position, with shops overhang declining by almost four percent.
"For the industrial sub-sector, however, the news is not so good. The
overall unsold position has deteriorated by 30 percent, with numbers breaching
2,000 units.
"Johor and Selangor contributed the highest number of overhang and unsold
residential units in the country," he said.
According to the Propety Market Report, the market recorded 340,240
transactions valued at RM88.34 billion in 2008.
It said the transaction volume recorded 9.9 percent increase (2007: 309,455
transactions) while value grew by 14.5 percent (2007: RM77.14 billion).
The residential property sub-sector remained as the most dominant sub-sector
comprising 63.7 percent of the total volume and 46.8 percent of total value
of transactions, it said.
The report said agriculture property came second forming 20.3 percent of the
total transactions, followed by the commercial property at 9.3 percent,
development land at 4.3 percent and industrial property at 2.4 percent.
It said generally, the average price of all property sub-sector was on the
upward trend.
"Last year, the primary market did not perform as well as in 2007 as only
21,725 units taken out of the 48,830 new units offered for sale.
"In tandem with the dismal performance of the primary market, the number of
residential overhang increased by 9.1 percent to 26,029 in 2008," it said.
On the supply side, the development of residential property was cautious
with dwindling numbers in starts, completion and new building plan approvals, it
said. (US$1=RM3.64)
-- BERNAMA
expected to moderate this year with prices and rentals correcting and
construction activities easing slightly in line with the current economic
slowdown.
Director-general of the Finance Ministry's Valuation and Property Services
Department, Abdullah Thalith Md Thani, said the prices and rentals, however,
were unlikely to plunge in the coming years, although there were some sort of
pressure in the first quarter of this year.
"The most vulnerable sub-sector will be the high-end residential market as
well as industrial property, which is already experiencing a slowdown.
"Perhaps the stimulus packages and the implementation of projects in the
Ninth Malaysia Plan will help cushion the impact of global economic crisis," he
told a media briefing after the launch of the Property Market Report by Deputy
Finance Minister, Chor Chee Heung, here Tuesday.
In his speech, Chor said the impact of the stimulus packages has started to
"kick in", which would stimulate the domestic demand and activate the housing
market as well.
"We don't foresee any bubble in the property sector as the government has
also come in to help stabilise the prices of houses," he said.
He said the government has always been concerned about housing and home
ownership, especially among the lower income group.
Chor said the commercial sub-sector has shown an improvement in overall
unsold position, with shops overhang declining by almost four percent.
"For the industrial sub-sector, however, the news is not so good. The
overall unsold position has deteriorated by 30 percent, with numbers breaching
2,000 units.
"Johor and Selangor contributed the highest number of overhang and unsold
residential units in the country," he said.
According to the Propety Market Report, the market recorded 340,240
transactions valued at RM88.34 billion in 2008.
It said the transaction volume recorded 9.9 percent increase (2007: 309,455
transactions) while value grew by 14.5 percent (2007: RM77.14 billion).
The residential property sub-sector remained as the most dominant sub-sector
comprising 63.7 percent of the total volume and 46.8 percent of total value
of transactions, it said.
The report said agriculture property came second forming 20.3 percent of the
total transactions, followed by the commercial property at 9.3 percent,
development land at 4.3 percent and industrial property at 2.4 percent.
It said generally, the average price of all property sub-sector was on the
upward trend.
"Last year, the primary market did not perform as well as in 2007 as only
21,725 units taken out of the 48,830 new units offered for sale.
"In tandem with the dismal performance of the primary market, the number of
residential overhang increased by 9.1 percent to 26,029 in 2008," it said.
On the supply side, the development of residential property was cautious
with dwindling numbers in starts, completion and new building plan approvals, it
said. (US$1=RM3.64)
-- BERNAMA
