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Malaysia's property market on road to recovery

Catherine Deshayes

Malaysia's slow property market should recover in six to nine months, according to The Real Estate and Housing Developers Association.

General confidence amongst would be property buyers in Malaysia have weakened considerably in recent months.

This follows a 41 per cent hike in petrol prices in June, while many prospective buyers are having problems obtaining a mortgage as banks become stricter in approving loans due to a tough economic outlook.

Now, experts are predicting that the market will strengthen when the supply of materials stabilises and people adapt to the higher cost of living.

Chairman of The Real Estate and Housing Developers Association, (REHDA) Datuk Michael K C Yam, said, "In 2009, the cloud will be clearer.

"When there is certainty in fuel price and there is regular cement and steel supply at market-driven prices, I think people can better plan their lives."

A sharp rise in construction costs has seen the price of buying a new-build home in Malaysia shoot up.

For the same reason, developers have lowered the number of residential units they are launching.

The average number of residential units to be launched per developer for the second half of this year is 152 units, less than the 169 units in the same period last year.

Terrace houses remained the most popular, with 50.4 per cent of the market hankering after them, mostly in the £16,000 to £40,000 price range, followed by apartments and condominiums at 15.6 per cent.

Browse Malaysian properties for sale at www.themovechannel.com/property/Malaysia/