The demand in the secondary property market is expected to remain slow during the first half of this year, a reflection of last year's trend due to Bank Negara's responsible lending guidelines, says Property Hub Sdn Bhd resident manager Wan Choy Heng.
He says that the situation is expected to remain slow as house buyers prefer project launches that come with a developer's interest bearing scheme (DIBS) There is also the general sentiment that the property market is due for a price correction.
“Many have committed to a property with a DIBS package to hedge against the market in three years, as most condominiums or service apartments take three years to complete,” Wan says.
Property Hub is among 30 real estate agencies participating in the Malaysian Secondary Property Exhibition (Maspex) 2013 held from April 12-14 in Petaling Jaya. It is organised by the Malaysian Institute of Estate Agents.
Despite the general preference among house buyers for new projects, Wan says the secondary property market will remain healthy as there is a sizeable group of buyers looking for homes to occupy or to upgrade from their current properties.
The secondary residential market in the RM500,000 to RM1mil range will remain active, subject to the availability of financing, he says. This group of buyers are unaffected by the 70% loan-to-value ruling, the stringent bank loan approving process because they are mostly first-time home buyers, or upgraders.
The traditional hot spots where demand exceeds supply include landed terrace houses in Bangsar, Hartamas, Cheras, Puchong, Petaling Jaya and Subang Jaya/USJ. Both landed and strata developments, near MRT and LRT stations are expected to enjoy high demand.
Transactions are buoyant in Kota Damansara, Cheras Perdana and Kajang since the construction of an MRT station began a year ago, says Wan.
“As our society is getting more affluent, and our city more globalised, we will need more housing projects which emphasise on lifestyle and security. Undoubtedly, guarded and gated developments will be the common trend in the years to come.” - By MELISA NG (The Star)