Rehda: Property sector to recover in 2nd half of 2010

Malaysia's sluggish property market is expected to recover in the second half of next year, in line with the country's improving economy.

Real Estate and Housing Developers' Association (Rehda) chairman Datuk Michael K.C. Yam said based on the findings of its own survey, over half of members are optimistic the market will improve.

"The respondents are optimistic that the property market will improve amid cautious optimism with houses between RM100,000 and RM250,000 expected to see good demand," Yam said in Kuala Lumpur yesterday at a media briefing on property updates.

A total of 103 members participated in the survey. Rehda has about 900 members.
Most developers agree the economy will recover next year with the government forecasting growth of 2 to 3 per cent.

Only 21 per cent of respondents will maintain current prices for new launches while another 38 per cent said they will increase their prices.

A majority expects property prices to rise by up to a fifth over the next six months.

"Higher Employees Provident Fund withdrawal for subsequent home purchases and lower toll to encourage buyers to buy homes outside of Kuala Lumpur can improve the sector," said Yam.

By Business Times (by Zaidi Isham Ismail)