Property market will improve this year, particularly the residential segment: Knight Frank

PETALING JAYA: The property market, which experienced a pick-up in activities in 2H2018, is expected to improve this year, particularly the residential segment, said Knight Frank .

“Investors’ confidence showed some positive signs as the newly elected Pakatan Harapan government starts to provide more clarity and certainty on its fiscal policies following the tabling of Budget 2019,” it said in a statement today.

In its Real Estate Highlights 2nd Half 2018 report, Knight Frank said that prices are generally holding firm in ’s prime housing market.

Although the widening gap between supply and demand coupled with rising financing cost will continue to impinge on price growth, property developers are generally more optimistic thus more launches are expected this year and beyond.

The slight upward revision in the rates of real property gains tax and stamp duty as announced under Budget 2019 are unlikely to have significant impact on the high-end condominium sector although the acquisition and disposal costs in property transactions may be higher.

In contrast, the exemptions and initiatives, in particular the waiver of stamp duty on the instrument of transfer and agreement for residential homes valued up to RM300,000 for a two-year period and the six-month waiver of stamp duty charges for properties priced from RM300,001 to RM1 million, are expected to kick-start the housing market moving into 2019 and beyond.

Knight Frank said the introduction of alternative financing through property crowdfunding will further assist first-time home buyers but emphasised the importance of governing the platform with stringent guidelines to avoid potential sub-prime mortgage crisis.

“In 2019, we expect to see more motivated sellers and discerning buyers to be present in the residential market. Various policies announced in Budget 2019, which are designed to aid first-time home buyers, are also expected to kick-start the housing market moving into 2019 and beyond.

“Malaysia’s residential properties will continue to be attractive in the eyes of foreign buyers as a result of our liberal policies, reasonable valuations and coupled with no extra stamp duties,” said Knight Frank Malaysia associate director of residential sales and leasing Kelvin Yip.

In 2H2018, four projects were completed namely Ruma Residences, Pavilion Suites, Premium Residences @ KL Gateway and Dorsett Residences Sri Hartamas, bringing the cumulative supply of high-end residences to 53,033 units.

By 1H2019, the scheduled completions of Inwood Residences @ Pantai Sentral Park, One Kiara – Block A, Residensi Sefina and Opus KL will contribute an additional 931 units to the existing stock.

In 2H2018, there were more previews and launches compared with 1H2018 with notable launches including Agile Bukit Bintang (Block B), Yoo8 of 8 Conlay (Block B), Windsor Suites @ Pavilion Damansara Heights, Trinity Pentamont and Residensi Astrea.

In the secondary market, prices were generally flat in the selected localities under review while the rental market saw a marginal dip in selected schemes reviewed in the Damansara Heights area.

In the primary market, available units of previously launched projects are selling from about RM1,500 per sq ft to RM1,950 per sq ft for units sized below 1,000 sq ft while more recent launches have higher composition of smaller sized units, which resulted in lower quantum pricing but higher price on per sq ft basis.

Source: The Sun Daily

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