KUALA LUMPUR, Jan 20 — The property market is expected to face a challenging environment this year with growth likely to be at a moderate pace, said Organising Chairman of the 9th Malaysian Property Summit 2016, James Wong Kwong Onn.
However, he said, there would be no recession and property bubble this year.
“There is oversupply and borrowers are also finding it tough to get more loans. The global economy is not looking too good and including the domestic factors, they will impact the property market.
“There will be fewer property launches this year and the take-up rate is expected to be low too,” he told reporters on the sidelines of the summit here Wednesday.
For January-September 2015, the demand of new launches fell with sales down 39.2% from 43.9% in the same period in 2014, while property prices dropped by 8% year-on-year.
President of the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia, Datuk Siders Sittampalam, said the number of property launches, particularly in the primary market, has declined dramatically since the last few months.
He said this was due to the mismatch with developers focusing on high-end properties but demand was actually for affordable homes.
Transactions in the first three-quarters of last year fell by 5.9% to 272,578 from 289,551 transactions in the same period of 2014.
During the same period, transaction value fell by 8.2% to RM114.12 billion from RM124.35 billion previously.