Albeit its rising potential and the much anticipated Penang World City, Malaysia’s economy is struggling to rise from its downfall and with it, the Malaysia property market. So if you’re planning to buy Malaysia properties, read on.
The Kuala Lumpur skyline at sunset
The Valuation and Property Services Department (JPPH) released its annual Property Market Report yesterday, April 18. According to the report, the Malaysia real estate market is in a tight spot with transaction volumes decreasing by 11.5% in 2016. Transaction values also went down 3% from RM 149.9 billion to RM145.1 billion.
JPPH also stated that new launches of properties, like Malaysia apartments and condos, went down from 58,000 in 2015 to 53,000 in 2016, the Malay Mail online reports.
Datuk Othman Aziz said this could be related to Malaysia’s “sluggish” GDP growth in 2016. Nevertheless, Othman remains hopeful that the GDP will grow from 4.3% to 4.8% this year, and along with it the property market.
JPPH believed otherwise, stating that the Malaysia property market would continue its downward slope this year. According to The Star Online report, Rahah Ismail, director of JPPH, suggested that “developers would need to come up with the right product and pricing to withstand the property market slowdown.” He believes that developers should focus on affordable housing because it is currently the more in-demand Malaysia property investment compared to Malaysia condos and apartments.
Meanwhile, the good news for people who are looking for a Malaysia home is that the Malaysian House Price Index (MHPI) relatively remained steady with only a 5.5% growth.
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