COVER STORY
Feeling the Market
So are prices edging towards a downward will always be there, saying, “They will still be
spiral? actively buying but the numbers could now be
smaller due to stringent requirements by the
Not exactly. While factors like the increase in banks.” Henry believes that the slowdown in
stamp duty for properties priced above RM1 the market have resulted in many speculators
million from 3% to 4% may put a dent in the opting out. On the other hand, genuine
high-end segment, people will still be on the investors looking at the long term are waiting
lookout for affordable properties. to strike when the price is right, but no longer
John Tan, COO of Hap Seng Consolidated
buying at first sight.
Bhd says that experienced investors will Buyer confidence will climb if the Malaysian
recognise good deals and snap them up, economy improves on the recorded 5.6%
which may leave home buyers with not much growth in 1Q2017 and might even cancel
options. Deciding to wait may be the overall out external factors that are negatively
sentiment but John recalls situations where impacting buyers’ perceptions. In fact, a
interested home-buyers had to pay more report conducted by MIDF Research shows
because investors have already vetted the that consumer sentiment index (CSI) stands
property and gotten the good deals, which at 76.7 points in 1Q2017, an increase from
include developer promos. John advises, 69.8 points in 4Q2016. This shows that
“Buyers shouldn’t be too pessimistic but buyers are in the market for property but are
rather ask themselves if it is right property apprehensive due a gloomy outlook.
they want, are they able to afford it, who are
the developers, are they trustworthy and Sarkunan Subramaniam, Managing Director
how good the workmanship is.” of Knight Frank Malaysia says that we
can see signs of an improving Malaysian
Construction costs is also a determining economy with the GDP expanding. He
factor when it comes to prices. With GST says the effects can be seen in the general
in effect the costs of raw materials have primary property market with a slight easing
an extra bearing on the developers. John of loan approvals and developers achieving
opines, “Costs of building will not go down. better sales rates. For the secondary market,
A lot of our raw materials are imported and Sarkunan sees that confident buyers who are
developers experience imported inflation. cautiously looking out for good investments
GST itself is 6%, but with everyone increasing and opportunities are stepping up to
prices, it goes well beyond 6%.” snap up discounted properties. Towards
According to Henry Tai, Principal and Founder
of Henry Realty Sdn Bhd, genuine home
buyers looking for a place to call their own
the end of 2017, he foresees the market
improving with the impending general
election and government spending more on
infrastructure.
Looking further down the pipeline, the property market will be boosted with
the development of the Pan Borneo Highway adding further selling points for
properties in Sabah.
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