Juwai IQI warned that the 9 per cent loss in newly planned residential supply and the 47 per cent drop in completed housing may soon lead to a price floor for residential properties in Malaysia.
The international real estate technology group said the property sector will reduce supply enough to limit future price declines.
“As agents, we still see sufficient activity and buyer demand to keep us busy. We have more concern about supply. The pipeline of new supply is shrinking,” head of bumiputera segment Muhazrol Muhamad said.
“Prices last quarter fell by 2.2% but we believe the shrinking pipeline will put a floor under future price falls.”
He said prices drop when there are more properties than buyers, and developers are shifting the equation in favour of supply by reducing the flow of new properties onto the market, noting that inflation is probably the number one factor behind developers deciding not to launch new projects.
Read more:-
English: New Straits Times, Bernama, The Malaysian Insight, The Vibes.com, The Sun Daily
Malay: Dagang News
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