More developers expected to launch projects ahead of GST

KUALA LUMPUR, Jan 22 (Bernama) — More developers are expected to launch their projects ahead of the Goods and Services Tax (GST) implementation on April 1 with reviewed pricing and marketing strategies, while widening target catchments by marketing overseas, Knight Frank Malaysia said.[br]


Amid heightened competition and a challenging market environment, the property consultant said developers are expected to review their pricing and marketing strategies to pursue product differentiation in a move to improve the sales of their projects.[br]


In a report on ‘Malaysia Real Estate Highlight 2H2014’ today, the property consultant said the slew of macro prudential measures by the central bank had succeeded in cooling the local property market.[br]


On local residential sector, a slowdown in residential property market continues with noticeably less activities, both primary and secondary, it said.[br]


In the high-end condominium segment, demand continues to trail supply, with an estimated 4,929 units anticipated entering the market by the first half of 2015, coupled with the high level of existing supply in the market, the overall outlook is one of caution.[br]


The focus now is on the affordable housing market segment, it said, citing the 2015 Budget announcement of more housing units would be built under the 1Malaysia People’s Housing Programme (PR1MA) and the extended 50 per cent stamp duty exemption until 31 December 2016, as among measures to assist youths and first-time house buyers.[br]


Knight Frank Malaysia Executive Director, Research and Consultancy, Judy Ong said buyers and investors had become cautious with many adopting a ‘wait-and-see’ approach.[br]


“More developers are turning their focus on the affordable housing segment. Selected property sub-sectors, and locations, may undergo a period of consolidation in terms of slower market activities,” she said.[br]


The pricing and rentals will be affected by a series of cooling measures, uncertainties surrounding the impending GST implementation, among others, she added.[br]


Moving forward, with stiffer competition, more older and non-performing malls in the Klang Valley are expected to be redeveloped or repositioned, while in Kota Kinabalu, a very exciting time is expected for the retail sector with the completion of several retail properties in the first half of 2015, the report said.[br]


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