Rehda: Home prices unlikely to fall much

PETALING JAYA: Well managed property development companies are unlikely to drastically drop the prices of their properties as they have comfortable profit margin buffers already in place, said MKH Group group managing director Tan Sri Eddy Chen said.

Speaking at the sidelines of the 18th Malaysia Strategic Outlook Conference 2016, Chen, who is also a patron of the Real Estate & Housing Developers’ Association Malaysia (Rehda), told StarBiz that most local developers worked on the basis of having profit margins of between 15%-18%, or even 20% if their projects were in choice locations. Hence it is unlikely for such developers to have to drop their prices very much.