'Home prices to rise 10-15pc this year'

Residential property prices in the country will continue to rise 10 to
15 per cent this year, according to real estate services firm C H
Williams Talhar and Wong Sdn Bhd.

Managing director Foo Gee Jen
said sales for new housing developments will sustain this year driven
by high demand for residential properties in the country.

"Areas
of high demand will be close to the high-level infrastructure projects
such as Mass Rapid Transit (MRT), Light Rail Transit (LRT) and Komuter
train lines," he told reporters at the launch of the company's Property
Market Report 2013 today.

"A big volume correction will be seen
this year. House prices will remain generally flat but prices could
face upward pressure from rising materials prices and other cost-push
factors," said Foo.

The landed residential market is expected to
continue to be in resilient mood with stable growth although fewer new
units may be launched, he said.

Developers are also trying to sustain profit margins by raising the new launch prices and testing new grounds for affordability.

"In tandem with that, they are putting in more eco-friendly and green building features as an added value to the projects.

"We
have seen developers veering away from high-end niche devlopements and
swtiching to more mid-range products in tandem with the government's
PR1MA scheme," he said.

Foo said the outlook for the affordable housing segment is very positive.

"We can expect units in this segment to continue to find a ready market.

High-end
residential properties continue to sell well in the major cities of
Johor Baharu, Kuala Lumpur, Kota Kinabalu and Penang.

"We can expect with the seemingly strong demand, prices may be pushed upwards," he added.-- Bernama