The property sector in the country is likely to weaken further amid worsening economic conditions with the malaysia property market expected to rebound in two years. Property consultanty firm Rahim & Co Chartered Surveyors make the note porperty investors.

Executive chairman Datuk Abdul Rahim Rahman said people were getting more prudent with their spending, adopting a wait-and-see attitude that has resulted in the property market getting softer.

The price of luxury condominiums in Kuala Lumpur City Centre (KLCC) for example are down 15% to 20 %”. Apart from that, the ongoing buildings development activities outside the central business district may push down the rental rate for offices when they are ready by 2010 – 2011 as a result of oversupply of office space. Malaysia property market getting influence during the current economic uncertainty.
Property consultanty firm Rahim & Co Chartered Surveyors expected the Malaysian economy to recover in 12 to 16 months but the Malaysia property market would take another two years to rebound after the economy recovered. This all will depend on the Government’s strategy and initiatives to strengthen the economy. It’s not as bad as in year 1997 when the property market needed 4-5 years to recover. Property consultanty firm Rahim & Co Chartered Surveyors believe that property market would be stable again within two years after economic recovery.

Savills Rahim & Co Real Estate Agents’ managing director Robert Ang said buyers were now asking for a yield guarantee from property developers before buying a property. Last year, the yields were 4% to 5%. As the market weakens, home buyers want guarantee from property developers to give them higher yields at 6% to 7%”.

Due to weak demand in property market right now, some of the company’s clients were advised to defer their new launches, especially the higher-end projects, to the third quarter.

Nevertheless, the property sector remains relatively well supported at the moment. Banks are still providing mortgage loans to home buyers and property developers. Apart from that, home sellers are getting more flexible on pricing their properties.

However, the demand is not as strong as before. Rahim & Co will be organising a seminar called “Looking Beyond: Challenges & Opportunities In The Malaysian Property Market” on March 3 at Hotel Istana Kuala Lumpur. The seminar will feature talks on the property market situation in the country by local and international speakers. If you are from property investment sector, you should attend the seminar and acknowledge about current property market and property market expectation in next few year.

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