Property sector to remain muted, market uncertainties a dampener

Malaysia’s property sector outlook is expected to remain muted as higher interest rates and market uncertainties have affected buyers.

Paramount Corporation Bhd group CEO and director Jeffrey Chew Sun Teong said developers have not matched affordable residential projects with suitable prices.

He said rising labour costs and prices of raw materials are also a cause for concern among property developers when planning future developments.

“There is a temporary supply issue and upcoming projects in the Klang Valley have dropped. We do not see a tremendous recovery of the market in the next five years.

“We are cautious about the outlook,” he said at the company’s results briefing for the first half of financial year 2023 (1H FY2023) today.

Citing a National Property Information Centre report, Chew said the overhang and unsold under-construction units in the Klang Valley, Selangor, Penang, Johor, and Kedah have improved in terms of numbers, but these markets still need products which are priced correctly.

Its property division sold RM617 million worth of properties in the 1H FY2023, which is 45 percent higher than the same period last year.

He said the group’s pipeline projects include The Ashwood, a high-rise residential property in Kuala Lumpur with 312 condominium units and duplexes, and 12 low-rise villas.

Other projects include the Greenwoods Amaria, Salak Perdana in Sepang, and landed residentials in Bukit Banyan, Kedah.

- Bernama