Real estate remains a sound investment, says MIEA

  • Nation
  • Friday, 14 Aug 2015

: The Negri Sembilan government’s revised housing policy which among others allocates a 50 quota for Bumiputeras is a boon for the industry. UU BAN/The Star

PETALING JAYA: The depreciation of the ringgit will not lead to real estate prices crashing.

The Malaysian Institute of Estate Agents (MIEA) president Eric Kho said property remained a sound investment despite the current economic climate.

“Holding property is always better than holding cash,” he said.

Kho acknowledged that demand for primary or new developments had slowed but not as a result of weakening currency.

He said the slowdown was due to Bank Negara guidelines for banks to be more prudent when providing loans as well as increased construction cost due to the Goods and Service Tax (GST).

Kho said construction cost had increased by up to 15% and some developers were holding back on launching new properties.

He said developers who had launched projects were offering huge discounts to attract buyers.

Kho said there was also a slowdown in the secondary market and those looking to buy could expect to pay between 5 and 10% less, depending on location.

Kho, however, expected this situation to be temporary and said property would eventually appreciate.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Next In Nation

Sabah govt appeals for donors to fill depleting blood banks
Umno will not push for snap GE if Covid-19 situation not good, says Tajuddin
Ismail Sabri: 332 arrested for SOP violations on Friday (May 7)
Health DG: Saliva-based Covid-19 tests available to the public soon
Penang cops arrest 15 youths at house party, drugs worth RM1,900 seized
Covid-19: All premises listed in HIDE system must close for three days
MCO to be imposed in Kuantan, several districts in Penang and Perak
Health DG: Covid-19 cases will surpass 5,000 daily by end May – unless Malaysians do their part
Number of self-employed making Socso contributions has doubled since 2019
Covid-19: Spike in cases of youths showing severe symptoms

Stories You'll Enjoy