Developers expect slow take-up as market softens

By BUSINESS TIMES

GEORGE TOWN: Property developers are set to see a slow take-up in their offerings as the industry slows, with banks becoming stringent in disbursing loans and local buyers remaining cautious.

“We can see that the overpriced property market has been aggravated by shrinking disposable incomes due to a cut in subsidies and the rise in living costs, which have somewhat muted the buying of properties,” VCB Capital chief executive officer and executive director Mohammad Amir Mokhtar told the Business Times. “If a house design is not modern enough and there is no solid attraction to a property and does not meet a buyer’s expectations, this too would contribute to slow sales of new launches,” he added.

On property lifestyle developer Eastern and Oriental Bhd’s (E&O) impending launch of its Amaris Terraces By-The-Sea development in the first phase of the company’s Seri Tanjung Pinang (STP) development, Amir said Amaris’s sales would also likely be slow despite its recent award win. STP was named as one of Penang island’s most desired addresses at the recent The Edge Property Excellence Awards 2016.

STP won the award in the Property Development Excellence category, which recognises completed large-scale projects which have made an impact through their design and concept. The award also acknowledges the development as a catalyst for growth which continues to contribute to the vibrancy of its vicinity, the company said in a statement. The STP development covers 97.1ha. “We are heartened by this win, which coincides with STP’s 11th year (in operation),” said E&O executive deputy chairman Datuk Seri Terry Tham Ka Hon.

“Our vision was to create a world-class development that celebrates the best facets of island living. This award for the project, which is born through E&O’s collaboration with award-winning local and international partners, validates the realisation of that vision,” he added.

In 2003, E&O, through its subsidiary Tanjung Pinang Development Sdn Bhd, assumed the rights, obligations and liabilities of the former concessionaire for the then idle and partially-reclaimed STP project. E&O completed the reclamation of STP and held its maiden launch of terraced homes in 2005, with handover to purchasers in 2006.

– Malaysia Property News

Property market outlook slowdown

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