THERE seems to be a Catch-22 situation in the property market as more developers plan new launches in the second half of this year (2H14), knowing that demand remains solid, and yet may end up accumulating more unsold units going forward.
Many property players have been holding back their launches in the first half (1H), banking on homebuyers’ rush to buy in the face of the Government’s imminent Goods and Services Tax (GST) implementation in April 2015.
Market experts, however, believe the sector does not have to worry about a Catch-22 situation.
CB Richard Ellis (M) Sdn Bhd executive director Paul Khong says that with nominal Government intervention, the property market will automatically find its own equilibrium.
“No private developer will continue to build if demand does not exist. With the market doing fairly well, developers are pushing harder for sales with various incentives,” he says, touching on how players are adapting to the environment the best they can.
Khong notes that the market has had a quiet start in 2014, as forecast earlier, due to various tightening measures taken by on the Malaysian property market through Budget 2014. Read more