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Bright 2013 for property market
2013-01-08 11:50:22

Spurred by the solid banking system and catalytic projects under the Economic Transformation Programme (ETP) and in the economic corridors, the property market will grow further in 2013, said TA Securities.

“Catalytic projects such as the Klang Valley MRT and public-private partnership developments like the PJ Garden Sentral in Petaling Jaya, Rubber Research Institute land in Sungai Buloh and Bandar Malaysia in Sungai Besi are envisaged to continue to excite the property market,” noted Thiam Chiann Wen, Research Analyst with TA Securities.

In TA Securities’ 2013 Annual Strategy: 2013 Outlook – Ride the Volatility report, it said, “We reiterate our view that the multibillion-ringgit MRT project will be a long-term driver for housing demand and property prices in the Klang Valley, particularly in Kajang and Sungai Buloh”

For instance, Johor has enjoyed an influx of investments into Iskandar Malaysia (IM), amounting to RM20.4 billion for the 11 months of 2012. This increased the total cumulative committed investments into the region and translated to high economic activity and jobs.

Currently, Iskandar is also enjoying boosted housing demand, said Thiam Chiann Wen.

Meanwhile, the Bank Negara Malaysia’s newly-introduced responsible financing guidelines have affected property growth, reflecting 48 percent decline in mortgage approval rates for the period up to October 2012.

Nevertheless, the total number of mortgage applications at the same period increased 3.4 percent year-on-year, which could mean that buyers remain optimistic amid stricter lending guidelines.