The marginal improvement in economic growth is likely to result in a slight improvement for the property industry next year, said Second Deputy Finance Minister Datuk Lee Chee Leong.
Lee said gross domestic product (GDP) is expected to grow by between 4 per cent and 5 per cent in 2017, which would be an improvement on the estimated growth of 4 per cent to 4.5 per cent registered
Speaking to reporters at a launch event for Lavile Condominium in Taman Maluri, KL, he said that because Malaysia is an open economy, the country will follow recent positive global economic movements.
According to Lee, the projection that the country’s GDP would improve next year is based on rising commodity prices, such as oil and gas. He said the property market would likely follow suit.
He estimated that at least 941,446 units of strata properties, including condominiums and apartments, would be completed nationwide by year-end.
“The number is growing yearly and the trend now is more towards quality living. That means discerning buyers are now paying more attention to value-added features like security, privacy, covered parking space, landscaped garden and many others,” Lee said, indicating that demand for residential property is still high.
However, the current harsh economic environment has taken its toll on the industry, leading to an extremely cautious outlook for 2017 by most property players.
Statistics from the National Property Information Centre (Napic) showed that from January to September 2016, property transaction value in KL fell by 19.1 per cent year-on-year to RM2.05 billion.
For the same period, the sector also saw the volume of property transactions drop by 22.3 per cent to 2,599 units from 3,347 units recorded in the same period last year.
The residential segment continues to dominate the market, according to Napic, making up 49.6 per cent of total transaction volume.
The statistics show that two- and three-storey terrace houses represented 13.7 per cent of property transactions, while low-cost flats accounted for 11 per cent and regular stratified units represented 10.9 per cent.