Malaysia’s real estate market will likely enjoy a positive outlook this year, after the moderate recovery in its economy, said Rahim & Co Chartered Surveyors Sdn Bhd, one of Malaysia’s biggest property firms.
The projects under the Economic Transformation Programme (ETP) are likely to provide a positive impetus to the real estate market, said Datuk Abdul Rahim Rahman, Executive Chairman of Rahim & Co Group of Companies.
“The high-end condominium market will see an uptrend by 2012 as the projects to be implemented under the ETP would make city living more vibrant,” he said.
Last year, the market trended flat or sideways, due to oversupply and lack of interest from purchasers and investors, as the impact of the 2008 global recession was still being felt, he said.
“Demand was noted to be selective. Developers with good track record offering good design, high quality materials and professional property management continue to attract buyers.”
About 14.5 million sq ft of new office space will be completed in the next five years, of which around 27 percent would be located in the suburbs, said Mr. Abdul Rahim.
“With the growth of new townships, the traditional office market in the city centre will have to compete with new commercial developments in these suburbs, which is made possible by the increasing accessibility via major highways.”
The outlook for the local retail industry is likely to be optimistic, with the total retail sales forecast to climb to RM227 billion in 2014, from RM137 billion in 2010, he added.
“Such optimism is driven mainly by the relatively low unemployment rate of 3.6 percent, higher disposal income of the working population and the growing tourism industry,” he said.