In an article in edgeprop.my, Valuation and Property Services Department (JPPH) director Ahmad Zailan Azizuddin predicted that the property market in H1 2019 would be resilient,followed by a gradual improvement in market activity.
This prediction was backed by JPPH’s data that showed positive increments or only marginal declines in the movement of property market activities recently.
Ahmad Zailan said, “In 2018, the residential sub-sector had continued to lead the overall market, with a contribution of 63.4% in volume and 53.7% in value. Residential properties in established areas with efficient connectivity continued to experience capital increases.
“However, the occurrence of overhang and unsold completed residential properties significantly increased in certain areas which involved mostly high-rise residential units.”
For the commercial sub-sector, there has been a slight improvement in 2018.
“The occupancy rates of both purpose-built offices and shopping complexes were encouraging, with most states attaining rates of above 80%. The industrial sub-sector also showed a substantial increase in value in line with the sentiment of Industrial Revolution 4.0.”
He stressed that the government will have to continue its role via economic growth, accommodative monetary policy as well as provide continuous incentives for the housing sector as this would then help sustain the momentum in the property sector.
The government’s top priority is to ensure that houses are made accessible and more affordable for Malaysians.
He shared JPPH’s proposal to the government to have a committee to monitor the cost of development components to see how housing prices can be made more affordable in the country.
He said, “I believe it will benefit the M40 and B40 groups greatly. However, the government should not be seen as controlling the price of residential property but ensure that the housing price offered is more competitive and affordable to all people.”
When this “committee” understands the cost of development components thoroughly, the government will be able to come up with better policies which can help ensure more Malaysian households own/start to own a property.
Only time will tell if JPPH’s proposal is taken up and implemented.
