Residential units in the secondary market in the southern corridor of Kuala Lumpur (KL) are booming with an influx of existing residential units, according to experts at a recent talk.
The real estate talk on March 4, 2017, at Bukit Puchong Sales Gallery attracted around 150 attendees with REI Group of Cos CEO Dr Daniele Gambero, Malaysian Institute of Geomancy Sciences president Professor Joe Choo, and TAHPS Group Bhd CEO Eugene Khoo Kong Hooi as invited speakers.
Gambero said homebuyers should consider venturing into south of Greater KL, which is expected to be the next growth centre for real estate.
“The economic growth in the region is in tandem with Malaysia’s vision valley, that is slated for development by 2035. “Covering high technology, logistics, education, health, tourism and sports, this new economic corridor is expected to create some 1.35 million jobs in the next two decades,” he added.
Gambero said buyers should have an investor’s mindset by looking for the most affordable homes that possess the greatest room for capital appreciation. “Now is a good time to begin the property hunt, as it is a buyers’ market with a lot of unsold stock. Knowing when to enter and exit the market is crucial and one must also be discerning by looking at where the demand is in order to enhance future property value, especially with the current strong demand for affordable homes,” he added.
Despite difficulties for buyers to obtain end financing, Khoo remained optimistic that potential buyers can instantly penetrate the market, especially as the property segment is experiencing slow take-up rates and lower sales.
“If you are looking for an asset, now is the perfect time to buy when there is hardly any activity. Supply has outstripped demand resulting in an oversupply of properties resulting in developers wanting to clear stock to generate an instant cashflow,” he added.
Khoo said with the property market remaining flat this year, property players are now offering attractive packages or rebates to entice purchasers to clear existing stock.
More developers are launching smaller-sized properties especially in the high-rise category to increase affordability, with units that have average built-up areas of 31.17 sq m, which are expected to enter the market soon.
Choo expected the second-half of the year (2H17) to be more positive and not as volatile as the 1H17 for the secondary market, while the primary market will continue to be sluggish.
Under the 11th Malaysia Plan (11MP) (2016-2020), which includes the Mass Rapid Transit Line 1, 2 and 3, one of the federal government’s main strategies is to further boost development and to support economic expansion and infrastructure strengthening southern KL.