October 20, 2009
M'sia property market to show signs of recovery: official
(PETALING JAYA) The Malaysian property market is expected to continue to show positive signs of recovery towards the year-end, likely to be driven by continuous interest in residential properties, Housing and Local Government Minister Kong Cho Ha said yesterday.
He said that the property sector saw a strong comeback in the third quarter of the year, with renewed buying interest in residential property on anticipation of a recovery in the economy.
This was evident although the commercial property market, including office and retail space, remained quite soft with easing demand bringing down rental and occupancy rates, he said.
Prices of houses are expected to see further upside, driven by huge liquidity in the economy as well as a further rebound in residential rent, Mr Kong said in his keynote address at the National Property and Housing Summit 2009 here yesterday.
He said that analysts were expecting a more robust revival in the region's property market towards the end of the year, in tandem with further pick up in the global economy.
Speaking to reporters later, Mr Kong said that the market, especially in the Klang Valley, had seen a healthy growth the past few months.
'In the past few months, more upmarket projects have been planned and the sales are also encouraging. These are good signs for the economy,' he added.
Meanwhile, on abandoned housing projects, Mr Kong said that the government successfully revived 12 out of 148 of such projects over the years.
It is also looking into reviving another 48 of such projects, Mr Kong said.
Martin Koh/ Sherry Tang