KUALA LUMPUR: Question marks remain over the sustainability of property demand in Malaysia, with property prices outpacing income growth, interest rates inching up and the upcoming GST expected to affect prices, according to Maybank IB Research.
“Already, the affordability index has been trending down since 2009 after the hikes in the BLR (to 6.6%, from 5.6% over 2009-2011) and higher property prices (+12.5% CAGR vs income growth of +6% between 2010-2013). This would impact investment decisions for new purchases and could eventually lead to a decline in property sales.
