KUALA LUMPUR, Jan 23 — The residential sector ended 2017 on a whimper due to waning enthusiasm and lowered expectations among stakeholders, according to a Malaysian Institute of Economic Research (MIER) study.

MIER executive director Zakariah Abdul Rashid said its Residential Property Index (RPI) retreated to 104.5 points in the fourth quarter of 2017, losing 3.3 points from the previous quarter.

"Year-end home sales were weak as 56 per cent of the respondent reported poor sales in the fourth quarter, thus, reflecting a a passive and cautious mood.

"There were also slower demand for high-rise residences in that quarter,” he told a media conference.

Zakariah said while most respondents reported reduced overhangs towards the end of last year, most also said they would slow down construction activities.

He added that home prices were still set to increase in the coming months due to the rising cost of building materials and labour.

"Amid an improving economy, housing looks likely to continue treading cautiously into a new year as builders will likely maintain their ‘wait-and-see’ stance,” he said.

It is unknown how many respondents were polled in the study that asked of their perceptions of their current business and expansion plans.