NAPIC reports the Malaysian economic growth was at 6.0% in 2014
“Looking at the statistics, I’m sure property players will know how to respond to market needs for affordable housing this year,” Deputy Finance Minister Datuk Chua Tee Yong told the press at the launch of the Malaysian Property Market 2014 report.
Property developers should address demand for affordable housing. They will do well to pick up on the high demand for residential properties in the price range of RM200,000 to RM500,000.
The Malaysian economic growth was at 6.0% in 2014, higher than 4.7% registered in 2013. The positive growth in the economy supported the slight increase in the property sector, which grew at a marginal of 0.8% in market volume and 13.5% in market value. The cooling measures which resulted in the moderation of market activity in last two years have seen market corrections, which ensued the slight pick-up in market activity in 2014. Measures such as the imposition of higher Real Property Gains Tax to curb speculative activities and spiralling property prices have also shown positive signs. Evident from the moderating increase in the Malaysian House Price Index over the last three years.
Way forward, it is expected that property market would remain stable in the coming year given the confidence in the economic growth. The cautionary sentiments amongst developers and home buyers, in particular towards the GST implementation is to be expected. With the implementation, the interplay of market forces is expected, ensued by market readjustments in due time. The following six months post-GST is deemed as crucial for the industry to monitor the signals to indicate where the property market would be heading. Nevertheless, given the positive projection of the economy and the accommodative financial environment, property market should be able to sustain in the coming year.”
National Property Information Centre (NAPIC)
Valuation and Property Services Department
Ministry of Finance Malaysia
14th April 2015
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