Jan 12, 2010
Real estate outlook for 2010
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Industry players predict that United States will perform better in the second half of 2010.
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The US market has recovered marginally, however, due to its weak economic fundamentals, many industry players predict that it will perform better in the second half of 2010.
Meanwhile in the UK, the market has been growing strong with prices still on the rise. However, many property analysts feel that the better investment opportunities for the UK have passed.
In Europe, France and Germany are expected to have a robust year ahead while other European countries continue to suffer from flat markets where investors remain sidelined.
The outlook on Asia
Property sectors in Asia are expected to grow due to its strong economic recovery with China and India leading the pack.
Singapore is upbeat about its economic outlook in 2010, especially with the soon-to-be-opened casinos and the positive equity market sentiment. It is safe to say that Singapore is set to see an increase in property investment activity in 2010.
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Foreigners are flocking back to Malaysia to buy properties.
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Back home in Malaysia, the economy was not spared from the global recession. In the first quarter of 2009, our export hit an all-time low of 6.2% (year over year). However, the market improved in the second half of 2009 yet remained relatively weak when compared to other regional markets such as Hong Kong and Singapore.
For 2010, many industrial players feel that Malaysia’s property market will be performing well because:
1. The interest rate is still very attractive despite its tendency to increase in the near future because of the economy’s improving conditions. Furthermore, finance institutions are moving toward risk-based pricing in determining more sustainable interest rates for the industry.
2. Due to the population growth in Malaysia, the demand for residential properties will remain strong for years to come.
3. The removal of the 30% Bumiputra equity quota for companies seeking to list on Bursa Malaysia will encourage more domestic and foreign direct investment, which will further stimulate the property industry.
4. Developers continue to roll out housing projects with innovative designs, higher quality, 10/90 property financing scheme etc.
5. As the economic condition improves and the household income gradually increases, Malaysians will be prepared to commit to more capital spending such as buying houses.
6. As global economy gradually recovers, foreigners are flocking back to Malaysia to buy properties as we have one of the highest quality and cheapest properties to offer in Asia.
Hopefully, with the government playing a more active role in creating employment opportunities and improving the purchasing power of its citizens, 2010 will be a promising year for property investment.
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