RealEstate.com.my

Local real estate market especially medium-range landed housing industry is showing signs of recovery after months of global financial crisis. Yet, properties around Kuala Lumpur City Centre especially high-end condominium are still weak.

By mid-2009, take-up rate for landed housing units have increased as opposed to global financial crisis worldwide. In addition to that, developers are also gaining good profits of buying interest in popular hotspots. Other than that, high-rise residential market is also showing some signs of recovery.

According to report by Malaysian Institute of Economic Research’s Residential Property Index (MIER RPI), Q4 2008 recorded 69.3 points while in Q2 2009, the figures have increased tremendously up to 91.5 points. In line with the recovery of local real estate market, developers are now planning more new greenfield projects by year-end.

The improvement is deemed positive as opposed to sales dropped in year-end 2008. Unfortunately, when most developers are looking ahead for better sales, government has once again re-imposed 5 percent real property gains tax (RPGT), regardless of category of owners or holding periods. While some just waved off RPGT, there are some developers expressed their concern on the possibility of slow down of sales among owner-occupiers and first time purchasers.

Separately, IJM Land Bhd managing director Datuk Soam Heng Choon announced new projects in-line including commercial project in Malacca to be launched next month. The latest properties projects under IJM Land’s belt are Nusa Duta project in Johor Baru launched in July and The Light Waterfront Penang in August. Soam said the group must be well-prepared to overcome challenges ahead.

On the other hand, SP Setia Bhd president and chief executive officer Tan Sri Liew Kee Sin also commented that the country’s economy is showing positive signs of recovery. Liew points out that local property market looks promising with low interest rates and ample liquidity. However, some developers are still reluctant and have doubts on the right timing to launch the properties in the market.