Malaysia property mart expected to moderate next year

by **hlk** Fri 16 Dec 2011, 13:48

KUALA LUMPUR: The property market is expected to moderate in 2012
due to continued slowdown in global economy amid growing concerns on
the Eurozone debt.

The uncertainty in the market in view of the
impact from the upcoming 13th general election will also influence the
expected lacklustre performance in the property sector next year.

Association of Valuers, Property Managers, Estate Agents and Property
Consultants in the Private Sector (PEPS) immediate past president James
Wong said he expects banks to be more conscious in loan approval next
year as loan eligibility is now based on net income as compared to gross
income previously.

"Over the years, property sector
experienced oversupply of product, especially in the high-end
condominium and offices. In addition to other factors that were
mentioned, we expect to see a dip in property market performance next
year," Wong said.

During the first half of this year, the property market registered an
overwhelming 214,764 transactions worth RM64.75 billion. This represents
a growth of 18 per cent and 29.7 per cent respectively against the same
period in 2010.

"The year 2010 was acknowledged by all as a
good year for the residential sector, which was then reflected in the
volume and value of transactions," said Wong.

The market was
expected to soften this year but it went against the odds, spurred by
government projects, especially those under the Economic Transformation
Programme (ETP).

PEPS president Choy Yue Kwong said the world
is concerned with the possible contagion effect of the Eurozone
financial crisis.

"Locally, home property prices have risen
significantly over the past two and a half years and the market is
concerned if there will be a property bubble," Choy said.

He
said these are among the issues that will be discussed in the upcoming
Fifth Malaysian Property Summit 2012 (5MPS), which will be held on
January 17 next year.

PEPS, which is the organiser of 5MPS, has
lined up eminent speakers like Knight and Frank Malaysia managing
director Eric YH Ooi, KGV International Property Consultants (M) Sdn Bhd
executive director Anthony Chua Kian Beng and deputy managing director
CH Williams Talhar and Wong Sdn Bhd Danny SK Yeo. By Zurinna Raja Adam