Jan 14, 2011
The overall real estate sector will likely see an uptrend in 2011, buoyed by the several Economic Transformation Programmes (ETP) announced by the government, as well as the expansion in the services and manufacturing sectors, said Rahim & Co Chartered Surveyors Sdn Bhd, one of Malaysia’s biggest property consultancy firms.
The outlook was good despite a soft market in high-end condominium rentals, said Rahim & Co Chartered Surveyors.
Average prices in the secondary high-end condo market dropped by 29 percent from Q2 2008 to Q2 2009, but rose 13 percent since Q3 2010, said Datuk Abdul Rahim Rahman, Executive Chairman of Rahim & Co Chartered Surveyors. Meanwhile, prices of new launches range from RM750 psf and RM2,500 psf.
“The leasing market has not fully recovered. Rental rate has remained low at about RM4.30 psf compared with its high in 2008 at RM4.90 psf. With the various projects to be implemented under the ETP to make city living more vibrant, we expect the market to be on the uptrend by 2012,” said Abdul Rahim.
In locations such as Shah Alam, landed units by more reputable developers changed hands within six months. “People are buying because for RM2 million or so, they can buy the same type of houses which cost RM6.5 million to RM7 million in the city. That is why the launches outside KL are doing well, coupled with the fact that there are no landed launches within KL itself because of the scarcity of land. In locations like Bangsar and Sri Hartamas, only condominiums are launched,” he said.
About 14.5 million sq ft of new office space will be completed in the next five years, of which around 27 percent will be located in the suburbs, he added.
Mr. Abdul Rahim was also positive on the retail property market, noting that retail sales will likely grow to RM227 billion in 2014 from RM137 billion last year.
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