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Thursday, December 13, 2012

Malaysia: Property market may remain stable in 2013

December 13, 2012 by: fmt
By John Gilbert

KUALA LUMPUR; The Malaysian Institute of Estate Agents (MIEA) expects the property market to remain stable in 2013 as buyers buck expectations of busts and booms.

MIEA president Nixon Paul said recent news reports predicting a boom for next year are creating an artificial situation in the market.

“We view the property market to remain strong for 2013 and prices will continue to increase if the stock availability remains tight,” he told reporters at the MIEA Property Outlook 2012 here yesterday.

He said there were also misconceptions that the condominium market is going to drop, caused by low rental income and take-ups by expatriates.

“We believe the market for the condominium market will hold, especially in the areas of KLCC, Mont Kiara and several other places in the city,” he said.

However, Paul said many foreign companies are repackaging the housing allowance for expatriates into their salaries and this is causing many of them to seek lower rents outside the city centre and closer to international schools for their children.

Touching on the industrial market, Hectares & Stratas Sdn Bhd director Stephen Tew Peng Hwee said the demand for industrial space in the Klang Valley is strong but the supply is limited with overall vacancy being well below 5%.

“Capital values have increased as much as 50% over the past four to five years, rentals by 20%-30% and the main cause of these increases is not much on overly demand but rather lack of new supply,” said Tew.

“Today, the biggest gobblers of industrial space are trading and logistics companies and not manufacturing as in the past.”

As for Penang, Tew said there is also a supply shortage of industrial space and rentals and it can often be more expensive than the Klang Valley.

“The biggest demand for industrial space in Penang comes from the electric and electronics industry and it is not uncommon to hear companies complaining of the difficulty of finding space in Penang for logistics.”

He said the demand for industrial space in Johor has improved substantially over the past few years due to the success of Tanjung Pelepas port and better relations with Singapore.

“Many Malaysia-Singapore joint ventures to develop residential, commercial and industrial facilities in Johor have created a better environment and leadership guidance to Singaporeans to start seriously looking at building new factories in Johor.

“Demand for industrial land and buildings has been improving and land values have begun moving up a bit slower as Johor is a huge state with plenty of land,” he said.

Source reference link: http://www.freemalaysiatoday.com/category/business/2012/12/13/property-market-may-remain-stable-in-2013/



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