More homes to be sold this year

admin Property Advisor Posted On November 19, 2019

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The residential property market is expected to do well this year, claimed a real estate agency. It is set to hold the highest record since 2016, predicting sales of some RM71 billion by the year-end.

204,840 units are expected to be sold, compared to 197,385 units or RM68.7 billion last year, witnessing a 3.77% increase, quoted Raine & Horne International Zaki + Partners, (RHIZP).

Michael Geh, a senior partner ascribed the expansion to new manufactured homes, which will grow between 10% and 11%. He mentioned the residential property market is expected to record the highest number of transactions within a four-year period since 2016, in a State of the Malaysian Residential Property Market and Projected 2019 Performance Report released today.

Pre-owned property market or secondary market will increase between 2% to 3%, said Geh who is also the head of Malaysian chapter of the International Real EstateFederation.

HIZP managing director Ho Sek Chuen mentioned the availability of smaller and affordable units has contributed to the bullish residential property market and the government’s implementation of Home Ownership Campaign.

He also adds the impact of the primary market of residential properties above RM600,000 from foreign buyers can only be seen in 2020. The leftovers of the unsold properties were in a less desirable location with little connectivity and won’t be surprised if it remains unsold for the next two years.

Finance minister, Lim Guan Eng has mentioned that the threshold rate for high rise properties in urban areas would be decreased from RM 1million to RM 600,000 in Budget 2020 earlier.

Original report by FMT.