KUALA LUMPUR, Dec 15 – PropertyGuru expects the property market to continue its downtrend in the first half of next year before recovering or stabilising in the second half. This could set the stage for recovery in 2017-2018, the online property portal group said in its outlook report for 2016 released here Monday.
“Essentially, prices in general are expected to come down as would transaction volumes. One can expect a market correction of three to four per cent. This is true for high-rise units, especially in the high-end market. Of course, there will be certain properties in prime areas such as near the MRT (stations) that will buck the trend and continue to appreciate,” it said.
However, the PropertyGuru also said that the prices would not likely drop substantially as there were many other factors driving high property prices such as land scarcity, public sentiment, construction and compliance costs, strong demand, and rising cost of living.
“2016 would be driven by more genuine demand as speculators would have been virtually totally removed from the market. In essence, 2015 will be very much a buyer’s and renter market with plenty of bright spots and opportunities. Buyers can expect incentives, rebates, freebies and goodies that would make their new home deal more enticing,” the company said.
