The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) projects property prices to grow by 2% to 5% this year, driven by strong domestic housing demand and higher construction costs. It said this at the PEPS 17th Malaysian Property Summit held on Thursday at the Connexion Conference & Event Centre in Bangsar South, Kuala Lumpur.
During the press conference, the event's organising chairman Sulaiman Saheh said the projection rate of 2% to 5% is very much dependent on the locality.
“[The property price growth projection] ranges from 2% and could go up to 5%, but it is very much dependent on the locality. Certain areas and developments in good locations can attract a lot of interest [hence a higher growth] but some may not. Nonetheless, I think the [growth] will be on a gradual basis. The old days of double-digit growth may not come back, and it is not sustainable. An average of 4% growth may not be attractive to investors, but it is healthy and on par with the bank interest rate.”
