Property market set to end on weak note in 2016

Posted by at 26 January, at 19 : 38 PM Print

Property market set to end on weak note in 2016

Kuala Lumpur Property

Kuala Lumpur: The year 2016 ended with yet another depressing news in the property market in Malaysian, both in commercial properties and residential properties. This seemed to be an extension of 2015 is downward purchasing momentum.

Siva Shanker, the former President of the Malaysian Institute of Estate Agents (MIEA), suggested that after being on slow progress since 2012, the real estate market hit the lowest point in 2016.

ìWe witnessed the failure of number of transactions in 2013, however, the values were still growing. We witnessed a slight increase in the value in 2014. Sadly, the value improvement did not continue in 2015,î he said.

ìI think the real estate market will end with a weak note this year, Siva Shanker told Bernama earlier.
Investment in property is a long-term investment goal, and the people who are apprehended in under-value cycles are those who look for short-term investments. They are usually described as property flippers.

The difficulty in getting housing loans from banks and financial institutions has been pointed as the main reason for low purchasing activity in the real estate industry.

The ratio between the loan approvals and loan applications dropped to 40 percent, the lowest figure in the last six-year. This was revealed in the Property Market Report by the National Property Information Centre (NAPIC). The report analyzes the performance of first half of 2016.

Against the backdrop of weak economy, property buyers seemed to be sagging under the increasing prices of commercial and residential buildings.

In the second quarter of 2016, Malaysian House Price Index was continuing to improve fairly at 235.4 points, which was 5.3 percent up.

Commercial buildings also witnessed the same reasonable improvements. The price for shopping lots continued to be stronger because of the publicity in commercial activities and well-organized connectivity. Depending on the locality, the shopping lots price for a double-storey unit ranged between RM1.2 million and RM2 million.

 

Real Estate

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