‘Many buyers believe property market due for price correction’

Market activities and property prices have been active in areas like Kota Damansara, Cheras Perdana and Kajang since construction of MRT stations began.

In the wake of last year’s slower secondary property market due to Bank Negara’s cautionary measures as well as election uncertainties, the secondary property market is expected to remain slow for the first half of this year, suggests Property Hub Sdn Bhd resident manager Wan Choy Heng.

“At least, it will remain slow until the GE13 is over, and the aftermath sentiment subsides. I think that the investors will shy away from the secondary property market during this period as most of them feel that property prices have risen quite substantially in the last three years, and have the opinion that the market is due for a price correction.

“Since late last year, buyers have opted for developer launches at populated location. Many have committed a developer launch unit likely with a DIBS package to hedge against the property market in three years’ time, as most condominium or service apartment take three years to complete,” explains Wan.

Having said that, Wan believes that the secondary property market will remain cautiously healthy as there is still a sizable group of genuine end-user buyers actively looking for a suitable home to move in to or to upgrade to.

The secondary residential market in the RM500,000 to RM1mil range will remain active, subject to the availability of financing. This group of buyers are unaffected by the 70% loan-to-value ruling as they are mostly first-time home buyers or upgrading from their existing property.
They are undeterred by the stringent bank loan approving process, and they are less concerned about the GE13 factor.

Other than the traditionally hot areas for the residential market where demand constantly outpaces supply such as landed terrace houses in many parts of Bangsar, Hartamas, Cheras, Puchong, Petaling Jaya and Subang Jaya/USJ, Wan shares that the residential market, both landed and strata, near MRT and LRT stations that have already begun construction have been very active.

“Both market activities and property prices have been very active in areas like Kota Damansara, Cheras Perdana and Kajang since the construction of proposed MRT station began construction about a year ago,” said Wan.

He added, “As our society is getting more affluent, and our city gets more globalised, we will need more housing which emphasises on lifestyle and security. Undoubtedly, guarded and gated developments will be the common trend of development in the years to come.”

As the recipient of the Best Residential Agency Award (Medium-size Category) for 2012 by MIEA, Property Hub Sdn Bhd’s strength have been in the residential sector although they are gradually gaining ground and breakthroughs in commercial sector and development land deals.

With approximately 30 full-time real estate agents and negotiators focusing on the secondary residential market, Property Hub Sdn Bhd have different teams covering most of the established medium and high-end residential areas such as Hartamas/Mont Kiara area, KLCC, Bangsar/Damansara Heights area, Bandar Utama/Mutiara Damansara/Taman Tun Dr.Ismail area, Kota Damansara and Subang Jaya/USJ area.

Property Hub will join around 30 other agencies to exhibit its secondary properties at the upcoming Malaysian Secondary Property Exhibition (Maspex) 2013, to be held over the weekend of April 12 to 14, at the concourse of Tropicana City Mall, PJ. Organised by the Malaysian Institute of Estate Agents (MIEA), it will feature booths by 32 real estate agencies with photos and presentations of previously owned properties for sale.
Other participating agencies include Reapfield Shah Alam (which talks to StarProperty.my about hot spots in Shah Alam) and Henry Butcher (Penang) which talks to us about upcoming areas surrounding five new proposed highways.

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