Residential property prices may see some correction this year
3:10 AM
水兴浪 Gavin Tee
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KUALA LUMPUR: Residential property prices may see corrections this year. Having escalated too quickly last year, property prices may soften for certain products in certain locations, said Swhengtee International Sdn Bhd founder and president Gavin Tee. TEE: INVESTORS SHOULDN'T MAKE THEIR BUYING DECISIONS BASED ON THEIR IMPRESSIONS OF THE PRODUCT OR THE SALESPERSON. PHOTO: MOHD IZWAN MOHD NAZAM OF THE EDGE MALAYSIABy Racheal Lee of theedgeproperty.com Friday, 29 April 2011 14:28
"It will depend on the type of property and location. You have seen prices rising since 2007, and last year's level was especially high. Areas that don't normally have high appreciation have also seen impressive capital gains. I expect some corrections this year," he told The Edge Financial Daily at the Third Anniversary Swhengtee Property Talk on Wednesday, Apr 27.
At the talk, Tee advised participants that some "very hot" markets could overheat. He noted that property cycles in some so-called property investment "hot spots" were also getting shorter.
He noted that over the long term, the next few years until 2020 would be a good period to invest in property, mainly due to the implementation of developments under the Greater Kuala Lumpur Plan with the aim of supporting 10 million residents.
Greater KL will encompass 279,327ha, an area four times the size of Singapore. It is envisaged that by 2020, seven out of 10 Malaysians will be living here. It will be a livable city and an economic hub covering 10 municipalities with more open spaces, improved waterfronts and a superior public transport system.
Covering Klang and Sepang, and stretching past the Selangor coastline, Greater KL will also include the green belt of Templer's Park in Selayang.
Other municipalities that will make up Greater KL are the Federal Territory of Kuala Lumpur, Putrajaya, Ampang Jaya, Petaling Jaya, Subang Jaya, Shah Alam and Kajang.
Tee also said several proposed infrastructure and mega projects would be completed by 2020 and that is when the property market should be at its peak as more supply feeds a growing population.
He said there are certain areas property investors can start looking at from this year. He identified three areas which he feels may be worth investing — the city centre for both residential and commercial properties; areas to be developed under the Economic Transformation Programme such as Sungai Buloh and Jalan Imbi; as well as tourism hot spots such as Melaka for commercial properties.
Swhengtee International is a real estate investment networking club with over 200 members.
