Knight Frank: Widening gap in property supply and demand a concern

Property market outlook

By THE STAR

PETALING JAYA: In its first half 2016 report on the real estate industry, Knight Frank noted that the market outlook for the high-end condominium segment remained lacklustre, impacted by weak sentiment as potential buyers and investors continued to adopt a ‘wait and see’ approach.

“The widening gap between supply and demand coupled with mismatch in product pricing and affordability in the domestic market has caused more developers to widen their target catchment by marketing overseas as the weak local currency translates to attractive pricing and low entry level for foreigners,” it said.

Despite Malaysia’s high household debt-to-gross domestic product ratio at 89.1% in 2015, there were several notable previews and launches during the first half of 2016.

To name a few, some of high-end developments include Yoob (Tower A), a branded residence within the integrated project of 8 Conlay launched in November last year. Tower A offers a total of 564 units with an average price of RM2,700 per sq ft, while the upcoming Tower B is slated for launch by second quarter of 2017.

The Novum South Bangsar is another development launched in March 2016, which features three towers, housing 654 units of serviced apartments priced at an average of RM880 per sq ft.

– Malaysia Property News

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