MIEA Debunks Claim That Malaysian Property Values Are Approaching Half-Price
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The Malaysian Institute of Estate Agents (MIEA) has debunked the claim that property values in Malaysia are approaching half-price, as reported by a local newspaper under the headline, "Houses at half-price, anyone?"
Ms. Chan Ai Cheng, the organization's president, stated that the question applies to two specific developers who have advertised that they are selling properties at a 50% discount.
It was discovered that one developer in KL made a major impact in their marketing campaign by offering lower pricing on a single retail lot, with no residential properties involved. Another developer in Johor is said to have put homes up for sale at the same 50% discount, citing the units' unattractiveness as a justification. These are isolated cases that should not be used to infer that similar incidents are happening all over the country.
While the majority of developers in the country do offer discounts for their projects, she added that these discounts are not as "dramatic" as stated. No such evidence was found in a recent MIEA poll of real estate practitioners who are on the ground and are aware of what is going on.
Indeed, property prices in established neighbourhoods and newly developed townships are keeping steady. Because demand is high, the developers have no intention of reducing their selling prices.
Despite the fact that the growth rate over the last three years has been less than 5% due to market challenges, the real point is that the Malaysian property market is resilient.
Ai Cheng went on to say that as an association, we have a solemn obligation and responsibility to protect the public's interests, and that isolated incidental and sensational news of this sort can influence buyer and seller views. Although there is price movement based on demand and supply, the property market remains steady.
She advises that the general public make use of the many government incentives already in place, both for the primary and secondary markets, and take advantage of your alternatives as purchasers.