There is presently no bubble risk Despite the spiralling home prices in key locations, there is no immediate risk of a property bubble in the country, according to real estate consultancy, CBRE Malaysia. Although property prices rose at a faster pace in recent years compared to the pre-2009 period, Malaysian houses are still among the cheapest in Asia, said its Executive Chairman Chris Boyd. Apart from that, home prices are not as volatile as those in Singapore and Hong Kong, and Kuala Lumpur remains one of the most affordable luxury residential market in the region. In fact, a typical high-end property in KL costs about US$250 psf (RM850) versus nearly US$3,000 psf (RM10,200) in Hong Kong, he added. However, Universiti Putra Malaysia Housing Research Centre professor Datuk Abang Abdullah Abang Ali notes that there is a significant disparity between income and home prices, especially in Klang Valley. “This indicates that affordable homes are not being built to cater to the general market and most buyers in the Klang Valley are likely to be investors or speculators.” “As market prices head for a correction and speculation decreases, there may be an oversupply of properties above RM550,000,” he projected. Meanwhile, Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan mentioned more property curbs on his opening speech at the National Housing and Property Summit 2013. “Moving forward, the Government would not hesitate to further tighten the fiscal policies in order to curb property speculation and ensure reasonable and affordable property prices in the country.” Farah Wahida, Editor of PropertyGuru, 29/8, Property Guru.
Posted on: Thu, 29 Aug 2013 23:18:05 +0000
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