Penang: Property transactions are likely to decline this year amid cautious sentiment and stringent housing loan regulations by financial institutions.
Real Estate and Housing Developers Association (REHDA) Penang chairman, Datuk Jerry Chan said the property market was likely to register a decline in both sales and value.
The market is likely to see a 20 per cent decline in value, he said after briefing reporters on the three-day Malaysia Property Exhibition (MAPEX) 2014 to be held here beginning February 2.
Organised by REHDA Penang and Henry Butcher Penang, properties ranging from RM370,000 will be on showcase for prospective buyers.
Chan said the central bank's move to tighten consumer loans were likely to impact the property market and between 80 per cent and 90 per cent of prospective buyers depended on loans to purchase houses.
Besides, he said buyers were also becoming more cautious this year given the backdrop of rising living cost.
However, Chan said Malaysia's property market was still bullish as the segment was driven by low interest rates and economic growth.
He explained that 2014 would be a good year for buyers to purchase properties despite the uncertainties.
"Developers would sell new products at new cost and land value amid rising construction and labour costs," he added.
Chan also said developers were concerned over project delays amid the labour shortage following the major crackdown on illegal immigrants. - By Business Times
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