The new Puteri Harbour development in Iskandar
Property prices in Malaysia’s most popular locations reached record levels last year. In fact, investors in landed property have enjoyed strong capital appreciation of 20 to 30 per cent in recent years. The market was so hot that concerns over a possible bubble led the Bank of Negara to impose restrictions on third home mortgages, imposing a 70% cap on loan-to-value ratios.
Experts on the ground say a strong economy will ensure continued demand in the Malaysian property sector through 2011, particularly in the Klang Valley and Penang with new residential launches and major infrastructure projects coming online. Data from the National Property Information Centre suggests a reduction in supply following the global economic crisis drove demand last year and analysts believe this trend looks set to continue. Confidence remains high, although the supply shortage will ease this year as developers match demand.
According to CB Richard Ellis, well-located medium-cost high-rise dwellings will remain the most popular in Malaysia with strong demand from younger middle-class buyers and the trend towards towards building smaller, affordable units close to the central business district will continue. New locations such as Iskandar Malaysia and Ipoh will also draw demand, albeit at a slower rate than the main centres. However, luxury level residences in areas such as Kuala Lumpur City Centre and Mon’t Kiara may face a more challenging market as an oversupply is now suffering from weak rental demand.
Although the 70 per cent LVR ruling has had little impact in terms of wider investment, experts like CB Richard Ellis Sdn Bhd executive chairman Christopher Boyd advise buyers to be careful not to over-commit because prices may soon level off, making it more difficult to exit the market.
Experts on the ground say a strong economy will ensure continued demand in the Malaysian property sector through 2011, particularly in the Klang Valley and Penang with new residential launches and major infrastructure projects coming online. Data from the National Property Information Centre suggests a reduction in supply following the global economic crisis drove demand last year and analysts believe this trend looks set to continue. Confidence remains high, although the supply shortage will ease this year as developers match demand.
According to CB Richard Ellis, well-located medium-cost high-rise dwellings will remain the most popular in Malaysia with strong demand from younger middle-class buyers and the trend towards towards building smaller, affordable units close to the central business district will continue. New locations such as Iskandar Malaysia and Ipoh will also draw demand, albeit at a slower rate than the main centres. However, luxury level residences in areas such as Kuala Lumpur City Centre and Mon’t Kiara may face a more challenging market as an oversupply is now suffering from weak rental demand.
Although the 70 per cent LVR ruling has had little impact in terms of wider investment, experts like CB Richard Ellis Sdn Bhd executive chairman Christopher Boyd advise buyers to be careful not to over-commit because prices may soon level off, making it more difficult to exit the market.
No comments:
Post a Comment