Property market to remain challenging in 2016

The property market is expected to remain challenging with moderate activity in 2016, says real estate consultancy firm Rahim & Co.

It said on Thursday that prices are still expected to rise but it would be more marginal for the residential sector.

"Depending on location and type of property, some may see price consolidation as the gap between sellers' asking prices closing towards buyers' expected prices," it said.

It added that more focus will be seen on the affordable housing segment as well as the secondary markets with strong owner-occupier demand.

Rahim & Co also said that the office sector will ask remain challenging as absorption of new supply coming into the market is expected to slow down.

"Prices as well as rental rates are to remain competitive and the same is to be seen for the retail sector.

"Retail sales are expected to face some tougher times fuelling the pressure in rental rates amidst decaying consumer sentiments," it said.

However the market will still remain cautious whereby buyers are definitely becoming more discerning in their purchases across all sectors, while expecting bargain purchases to slowly creep up in the market. - The Star

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