'Cautious growth for property sector in 2012'

Malaysia's property sector is expected to experience cautious growth next year, Housing and Local Government Minister
Datuk Seri Chor Chee Heung said today. He said the projection was not because developers had reduced their sales.

In fact, house prices had increased by leaps and bounds over the last five years and prices would not come down. "So, it's fair for the industry to take a rest," he said.

For the second half of next year, the housing industry's downward trend would continue, he said when launching The Star's Property Fair 2011.

On the current year outlook, the minister said after taking into account the third quarter performance, the growth is expected to slow down slightly vis-a-vis last year.


He said the property industry would register 3.4 per cent growth this year against 5.1 per cent last year. Later at a media conference, Chor said since many developers had applied for
housing licence this year, the number of applications would probably be less next year.

On spiralling house prices, Chor said house prices would not increase every year and prices would stabilise at a certain stage. Under the 1Malaysia public low-cost housing scheme, he said, the government would help ensure house prices are affordable.

"I believe many developers would complement government's initiative by building more affordable houses for the people," he added. -- Bernama

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