CBRE Malaysia executive chairman Chris Boyd.
He said despite rising residential property prices, houses in Malaysia were still among the cheapest in the region.
“Residential property prices increased at a constant pace in Malaysia until 2009, but have been accelerating until recently.
“However, prices are not as volatile as those observed in Hong Kong and
Singapore,” he said in a presentation during the 16th National Housing
and Property Summit 2013.
“In comparison with selected Asian
luxury residential prices, Kuala Lumpur remains one of the cheapest
cities in the region,” said Boyd.
According to him, the average
luxury residential property in Hong Kong costs nearly US$3,000
(RM10,200) per sq ft, compared with US$250 (RM850) per sq ft in Kuala
He pointed out that to overcome the issue of rising
property prices, the Government had launched two schemes to make houses
affordable, namely the Malaysia My First Home Scheme, which was
introduced in 2011, and the 1Malaysia Housing Programme, which came into effect in 2012.
Meanwhile, Universiti Putra Malaysia Housing Research Centre professor Datuk Abang Abdullah Abang Ali
said the recent Government initiatives were addressing the issue of
rising prices but added that it was not clear if that was enough.
He said artificial increase in prices would create a bubble, noting
that there was a serious mismatch between income and property prices,
especially in the Klang Valley.
“This indicates that affordable
homes are not being built to cater to the general market and most buyers
in the Klang Valley are likely to be investors or speculators.
“As market prices head for a correction and speculation decreases, there may be an oversupply of properties above RM550,000.”
Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan,
in his opening speech, said the Government had to mitigate excessive
investment and speculative activity in the property market so as to
prevent a property bubble.
“Moving forward, the Government would
not hesitate to further tighten the fiscal policies in order to curb
property speculation and ensure reasonable and affordable property
prices in the country.”
Abdul Rahman said the low real property
gains tax, which was increased from 5% to 15% last year, had not been
effective in preventing the increase in house prices.