GEORGE TOWN: A real estate agency today predicted that the residential property market would do well this year, predicting sales of some RM71 billion by the year-end, the highest recorded since 2016.
Raine & Horne International Zaki + Partners (RHIZP) said the number of properties expected to be sold would be 204,840 units, compared to 197,385 units or RM68.7 billion last year, a 3.77% increase.
Senior partner Michael Geh attributed the increase to newly built homes, expected to grow between 10% and 11%.
“The residential property market this year is expected to record the highest number of transactions within a four-year period since 2016,” he said in the State of the Malaysian Residential Property Market and Projected 2019 Performance Report released today.
Geh, who also heads the Malaysian chapter of the International Real Estate Federation, said the pre-owned property market or secondary market will see an increase between 2% to 3%.
RHIZP managing director Ho Sek Chuen said the reason behind the bullish residential property market was due to the availability of smaller and affordable units as well as the government’s Home Ownership Campaign.
“The impact on the primary market of residential properties above RM600,000 from purchases from foreign buyers will only be detected in 2020,” he said.
On the property glut, Geh said many of the unsold properties were in less desirable locations with little connectivity.
“I won’t be surprised if it remains unsold for the next two years,” he told FMT when contacted.
Finance Minister Lim Guan Eng recently announced lower floor price for foreign buyers of high-rise real estate in urban areas, from RM1 million to RM600,000.
The move drew support from the Real Estate and Housing Developers’ Association, which said it would help developers release unsold houses and reinvest in affordable housing.