Those above RM3m per unit are very much in demand and now considered ‘trophy products’, says expert
By FARA AISYAH / Pic By MUHD AMIN NAHARUL
The secondary market for property in Malaysia is still seeing favourable demand, particularly for houses in the high-end segment, despite the slower performance reported by the overall sector in the last couple of years.
CBD Properties Sdn Bhd MD Datuk Adrian Wang said high-end properties, especially those above RM3 million per unit, are very much in demand and now considered “trophy products”.
“There is high demand in the high-end properties. It was very hard to find good bungalows at an affordable price in Tropicana Kota Damansara, Damansara Heights and Bangsar previously, but you can find them being sold at a very good price now.
“The owners are reducing the price to compete with other sellers in the market,” Wang told The Malaysian Reserve (TMR).
He added that many owners decided to sell their high-end properties for various reasons. He said the main reasons include migration, while some of them had decided to down-grade to living in apartment or condominium units.
Zerin Properties real estate negotiator Natasha Gideon conceded that high-end properties are still very much in demand.
“There is a high demand for high-end properties because buyers know now is a good time to get a deal.
“Sales are slower, but still okay for me. The price has seen a marginal drop because of competition. But there is not much reduction for the properties above RM3 million,” she told TMR.
Laurelcap Sdn Bhd property valuer Kit Au Yong echoed the sentiment and said the secondary market’s share in the property market increased considerably last year, compared to 2016.
“New launches in the primary market have dropped in volume and value, but the decline has been moderated compared to 2016.
“The market for the high-end brand-new properties is also subdued, unless there is a good bargain, while the property market has slowly shifted towards the affordable housing segment,” Au Yong told TMR.
On the other hand, Wang said Malaysians are currently very cautious in buying new properties, in anticipation of the upcoming 14th General Election.
He said the current trend also shows more people are opting to rent to weather the high-cost entry that includes bigger down payment and legal fees.
The situation is also advantageous for affordable home projects developed by the government which allow a lower entry cost.
Wang said many property investors are also currently desperate to sell their units, as they are getting lower rental, while having to pay higher monthly instalments.