The local property market will likely remain resilient in the rest of the year as all major stakeholders continue to play their part to ensure stability in the market.
Naza TTDI Sdn Bhd deputy executive chairman and group managing director SM Faliq SM Nasimuddin says the market would see a more cautious and pragmatic approach as far as property launches are concerned.
He said, having experienced an oversupply of property over the past years, especially in the high-end segment, this has contributed towards a property overhang that has continued well until now.
Faliq believes that despite several initiatives undertaken by the government to boost the property market, potential buyers are likely to adopt a wait and see approach before they pursue their property purchase.
"They will do this to ensure that they secure the best deal for their property. On the other end, there would be challenges to meet the affordable price range for home seekers, while ensuring that loan financing availability is there for them to purchase a property.
"Hence, with the affordable housing quotas set and initiatives currently being undertaken, it should help to bridge the gap between consumer demand in this segment and the developer portfolios," he told NST Property.
Knight Frank Malaysia managing director Sarkunan Subramaniam said that despite market uncertainty, transit-oriented developments (TOD) will continue to do well.
He said, in less than a year after the launch of TODs, more than 90 per cent of the properties are sold.
"Wrong location and overly priced properties are the products which are currently hanging," he said.
For 2020, Subramaniam said developers should carry out their own homeownership campaign and with the incentive scheme that they have individually structured to carry on clearing out their stock.
"They should do more market study to ensure the products are priced right so they can have better sales. As far as land is concerned, the cost has gone up which is why house prices are going up," he said.
GDP growth for 2020 within expectation, says PropertyGuru
PropertyGuru Malaysia country manager Sheldon Fernandez said the slowdown in gross domestic product (GDP) growth to 4.3 per cent in 2020 is in line with the firm's neutral outlook for the property market this year, with strong macroeconomic headwinds.
"Slower economic growth translates to reduced accumulation of wealth, which is a prerequisite for homeownership. As such, we anticipate further impacts on home seeker sentiment, though this may be buffered to some extent by Bank Negara Malaysia's timely Overnight Policy Rate (OPR) revision," said Fernandez.
He said it should be noted that GDP expansion does not directly correlate to growth in the property market, with the latter influenced by other factors such as urbanisation, construction, and demographical trends, typically following a cyclical pattern.
Malaysia's GDP growth will decelerate to 4.3 per cent in 2020, below the government's forecast of 4.8 per cent, due to weaker external trade performance and softer domestic demand growth.
Analysts believe the economy may bounce back in the second half, buoyed by a RM20 billion stimulus package announced last Thursday.