KUALA LUMPUR, April 8 — The Malaysian Real Estate Association (Pertama) has reportedly said that property prices are expected to increase by 25 per cent — especially for homes valued RM500,000 and above — as the economy continues its recovery.
Its president, Ismail Omar, told Utusan Malaysia that developers and owners are still forced to sell at a lower price now, and therefore it would be the time for Malaysians to buy homes.
“Especially houses priced above RM500,000 which are largely unsold when buyers are more likely to buy homes below RM300,000. So developers or owners are forced to sell at a lower rate to avoid selling at all.
“However, the situation is only temporary, as the Malaysian economy recovers, the housing market is expected to stabilise again with a price increase of around 25 per cent. So some people are aware of this, they are scrambling to buy a house now that the price has fallen before the value has risen," he was quoted by the Malay daily.
Ismail pointed to the property overhang in the past few years caused by cautious homebuyers.
He also added that banks and financial institutions are willing to offer loans and make the process easier for buyers, thus resulting in an increase in the demand for homes.
However, Ismail said the purchase of homes would re-stabilise and cause an increase in house prices as everyone attempts to prevent the abandonment and overhang of houses in the market.
“Perhaps the bank will facilitate financing a loan while developers can take steps not to increase house prices and building materials manufacturers sell their materials at not too high of prices” he reportedly said.
Therefore, Ismail said the government needs to monitor the current situation of house prices to avoid prices from shooting up which would then make it difficult for the public to attain homes — and prevent a similar cycle of unsold properties.
He said one of the best mechanisms to encourage people to buy a home is through the rental method for the bottom and middle 40 per cent households to own homes without the burden of lending.