Most estate agent expect the local market to remain resilient and see a positive outlook for the next six months.
They said although property prices have dropped since the global economic downturn, the public should not be overly concerned as the decline was an average of five per cent in the last six months compared to double-digit falls elsewhere in the region.
“Our market is stable. It’s really up to estate agents to convince buyers that properties are still giving good returns,” GDS Properties principal realtor Govin Bala told NST Property at the recent inaugural Malaysian Institute of Estate Agents (MIEA) National Real Estate Awards at the Sime Darby Convention Centre in Bukit Kiara, Kuala Lumpur.
“While negative sentiments have not helped in terms of sales in the first quarter, we can still expect a stable market in the next six months. Considering prices in the other markets in the region suffered falls of 30 to 40 per cent, we are better off,” said Reapfield founding president David Ong.
Among the key factors cited for the resilient market is the strong backing from the government, developers and financial institutions, the latter two of which introduced innovative homeownership packages and attractive loan respectively to make it easier to buy residential units.
“The financial institutions have been proactive in efforts to spur industry. Sales have bounced back since April and May this year due partly to banks coming out with enticing loan packages to encourage prospective buyers,” said Rahim & Co executive chairman Datuk Abdul Rahim Rahman.
He suggested the government could also help local real estate attract international capital with “a property index or market health indicator”, adding while there are several property monitors already in place, these are not fully develop and access to data is sluggish, which does not indicate how current market is faring.
Meanwhile Zerin Properties chief executive officer Previndran Singh said underrated places such as Medan Damansara and Oversea Unian Garden in KL, and Serdang and Puchong in Selangor, could offer tremendous upside potential in the long term based on criteria like location, growth potential and quality neighbourhoods.
By Kenny Loh
Source: NST, July 17,2009
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