Thursday, March 6, 2014

Real estate market may see upswing next year

By Sharen Kaur

MIEA PROJECTION: Transaction value for properties set to exceed RM143b in 2015


   THE local real estate market will be on an upswing next year with the value of transactions for all types of properties forecast to exceed RM143 billion.
    Malaysia Institute of Estate Agents (MIEA) president   Siva Shanker expects the market to improve by between 10 and 15 per cent next year, after a slow performance last year.
  “Everybody thinks 2014 will be a bad year for the property market. In my mind, it was bad last year.
  “My take on the sector is that in the first two quarters of this year, the market will shrink as there is still some knee-jerk reaction because of 2014 Budget  and the government’s cooling measures,”  he said, after introducing a new tag system for real estate agents and negotiators, here, yesterday. 
  “The second half of 2014 will see an increase in property transactions and this will spill over into 2015.
  There will be a slowdown at first, followed by consolidation and then a new high.” Siva said the only hiccup next year would be the April 1 implementation of the goods and services tax (GST).
   He believes it may cause a dent in the market,  but the impact could be minimised as the government continues to educate the public on GST.
   “I  expect an upswing in the property market in 2016 and 2017, once all these are settled and people get used to the new measures and understand the GST better.”  \
   According to the National Property Information Centre,  the   transaction value for all types of properties in 2012 was RM142.8 billion (427,520 units).  It is still compiling data for 2013.
  Meanwhile,  Siva expects an improvement in the property market, thanks to the new tag system for real-estate agents and negotiators, introduced by the Board of Valuers, Appraisers and Estate Agents     Starting May 1,  registered agents and negotiators  are required to use an identification tag whenever they buy or  sell properties.

(From left) MIEA board representative Eric Lim, Valuation and Property Services Department director-general Datuk Abdul Hamid Abu Bakar and MIEA president Siva Shanker at the briefing in Putrajaya yesterday. Pic by Mohd Fadli Hamzah


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