KUALA LUMPUR – The local property market, which saw a decrease in sales last year, will continue to be subdued this year, the research arm of property consulting firm Rahim & Co said today.
“The property market is expected to remain subdued for a period of 12 to 18 months,” the firm told a news conference here on in its summary of findings on the Property Market Review for 2016 and 2017.
The firm added that it will be a buyers’ market as there will be a period of adjustment and price consolidation to close the gap between prices demanded by sellers and those looking to buy.
“Affordable housing will continue to be popular this year where the people are facing rising cost of living especially for young families,” it said.
But the firm also expressed concern that there may be an oversupply in the commercial sector.
While residential transactions across the country had decreased, retail space had continued growing in most of the states, according to the review.
About six million square feet of new mall space is expected to come up in the next couple of years.
“Absorption of new supply coming into the market is expected to slow down and capital values as well as rental rates are to remain competitive,” it said.
Retail sector is also expected to face “tougher times” due to declining consumer sentiments, the firm said.
– Malay Mail