Residential properties in Malaysia have become less affordable, but the price growth has been moderating particularly in the past two quarters, according to Dr Yeah Kim Leng, Chief Economist at RAM Holdings group.
The housing market is also expected to have a “soft-landing” in 2014, which can shrink property bubbles in certain areas, he said during Malaysia Property Inc’s 2014 Corporate Outlook seminar yesterday.
However, there exists a significant gap between supply and demand, especially in the low-cost segment.
“Developers need to take note that 3.8 million people or 55 percent of the market have monthly household incomes of less than RM4,000 and can only afford properties priced RM360,000 and below,” Yeah noted.
Speculative buying is also a threat to Malaysia’s financial system, but it’s hard to differentiate between investors and speculators.
“This is because property has become an investment asset in Malaysia due to the lack of alternative investments. The demand for properties for investment in Malaysia is high, especially if interest rates remain low.”
Nevertheless, the country’s demographics are favourable to the housing market. For instance, the working population is growing steadily, while the unemployment rate remains low at 3.4 percent.
“Despite cooling measures, the fundamental demand such as demand from first time home buyers should still continue and banks still have the liquidity to serve this demand," he added.
The housing market is also expected to have a “soft-landing” in 2014, which can shrink property bubbles in certain areas, he said during Malaysia Property Inc’s 2014 Corporate Outlook seminar yesterday.
However, there exists a significant gap between supply and demand, especially in the low-cost segment.
“Developers need to take note that 3.8 million people or 55 percent of the market have monthly household incomes of less than RM4,000 and can only afford properties priced RM360,000 and below,” Yeah noted.
Speculative buying is also a threat to Malaysia’s financial system, but it’s hard to differentiate between investors and speculators.
“This is because property has become an investment asset in Malaysia due to the lack of alternative investments. The demand for properties for investment in Malaysia is high, especially if interest rates remain low.”
Nevertheless, the country’s demographics are favourable to the housing market. For instance, the working population is growing steadily, while the unemployment rate remains low at 3.4 percent.
“Despite cooling measures, the fundamental demand such as demand from first time home buyers should still continue and banks still have the liquidity to serve this demand," he added.
via:http://www.propertyguru.com.my/property-news/2014/2/11888/home-prices-continue-to-rise
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