More Affordable Houses Needed, Says Minister at MASPEX Launching
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The Malaysian Institute of Estate Agents (MIEA) held their second Malaysian Secondary and Primary Property Exhibition (MASPEX) in Kota Kinabalu. Minister of Special Tasks (Sabah), YB Datuk Seri Panglima Teo Chee Kang officiated the event this morning (17 November) at Imago Shopping Mall.
"I understand that MASPEX have also been organized in other cities such as Kuala Lumpur, Johor Bahru, Penang and this is the second time it's being organized here in Kota Kinabalu. I was further informed that all these events were made possible with the strong support of two main sponsors, MRCB and Malayan Banking Berhad" says Datuk Seri Panglima Teo.
According to the Valuation and Property Services Department's property market report in 2016, there was a total number of 6,983 properties transactions in Sabah with a total value of RM 3.51 billion, it's about 10% less as compared with 2015. 79.7% of the total transactions were priced below RM 500,000.00 and only 7% of the transactions were priced at RM1.0 million and above. Most of the transactions were in the residential sub-sector with a total value in the region of RM 1.308 billion or about 37.2% of the overall market value.
"Based on the figures given, we could safely assume that generally the primary and secondary properties priced in the range of RM500,000 and below are still in good demand" says Datuk Seri Panglima Teo, adding that the growing population contributes to the need for more affordable housing in the State.
Amongst the exhibitors at MASPEX, a Federal government agency PR1MA will be present to showcase their affordable housing projects which are currently under construction in various parts of Sabah.
Speaking at a press conference after the launch, Datuk Seri Panglima Teo said that the property market is now experiencing slower paced activities. "The impact on the property market have been felt by many property investors and intending purchasers.â€
He added that some property experts have expressed that Sabah properties will remain stable and active which is in the stage of self-correction as we usher into the year 2018.
"Actually, now is the best time to bargain hunting and negotiate for the best deals. Sellers are more flexible and are willing to negotiate. Do not wait until the market improve. When the market improves, sellers will be holding back for better pricing and it is tougher to negotiate for good deals" says Eric Lim, President of MIEA.
He also added that in the recent announcement of the Budget 2018, several measures and incentives were announced for the property segment namely;
1. MyDeposits and the Step-up Financing Scheme government initiatives were re-introduced to help alleviate the initial financial burden of property purchase.
2. The Budget also promotes the growth of rental market compared to home ownership (under the concept of House Owing Democracy) whereby a tax exemption of 50% on rental income up to RM2,000 per month is given from 2018 to 2020.
MASPEX will be held from 17 â€“ 19 November 2017 at Imago Shopping Mall. This 3-day event is free and will run from 10am â€“ 10pm.