Lethargic buying sentiment amid uncertainties in the economy, an already sizeable number of unsold completed housing units, the issue of affordability and changing buyer demographics have, by all accounts, set the stage for a challenging few years in the property sector.
“The property sector seems to be in a state of flux. There are many things that are not quite right, which is worrisome,” says Knight Frank Malaysia managing director Sarkunan Subramaniam.
He points to what he believes is an overemphasis on the affordable housing segment. If affordable homes were in short supply in the past, this segment of the housing market will face an oversupply situation, he says, attributing this to the entry of more developers into this segment and the government’s plan to build one million affordable homes.
