BUYERS who want to purchase houses below RM500,000 in the Klang Valley may have to settle for smaller units, said Persatuan Perunding Hartanah Muslim Malaysia vice-president Aziz Ahmad.
Aziz discounted the possibility that house prices will drop this year.
He said property prices had been increasing in the past few years because of the high cost of construction and raw materials.
“Developers may shrink the size of houses or apartments in order to maintain the prices,” he told NST Property.
He said prior to 2010, it was common to own a 1,100-square-feet apartment. Between 2010 and 2014, the trend shifted to 900 sq ft and subsequently, 500 sq ft (studio unit).
“People may not be able to afford an apartment of 1,100 sq ft in Kuala Lumpur as it will cost RM600,000 to RM700,000. If they want to buy an apartment for between RM300,000 and RM400,000, they have to go for smaller units.”
Aziz said those who recently got married or were starting a family should buy a small apartment first before moving on to a bigger property.
“They should start by buying a small apartment, such as a studio or two-bedroom unit, and upgrade to a three-bedroom apartment later when their household income improves.”
Aziz said properties in suburban areas are still affordable and that new developments in the southern Greater Kuala Lumpur, such as Semenyih, Nilai and Salak Tinggi, might offer a great investment opportunity.
“You can still buy a landed property, such as a double-storey terrace house measuring 20 x 70, for below RM500,000. The same property in Kuala Lumpur will cost more than RM600,000.
“If you are buying to stay, you can also consider Bangi, Rawang, Puncak Alam or Ijok,” he said.
Aziz also said there were three mega government projects to look out for which would boost the property sector.
They are KLIA Aeropolis, Malaysia Vision Valley (covering Seremban, Nilai, Port Dickson) and Cyberjaya City Centre.
“The government is giving a lot of attention to the southern part of Greater Kuala Lumpur. When they pump in a lot of money into these areas, it will spur growth.
“For people who are looking to own affordable houses in the outskirts of Greater Kuala Lumpur, these are some options to consider.”
Aziz will be giving a talk entitled “Hot property in a hot spot” this weekend at the NSTP MyRumah Property Showcase at Balai Berita in Bangsar, Kuala Lumpur.
Admission to the event, held from 10am to 6pm, is free.
Visit http://www.nst.com.my/myrumah for more.