Moody's: Lacklustre Demand For Residential Malaysian Properties In 2015
Date：2015/02/06
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SINGAPORE -- Moody's Investors Service expects demand for residential properties in Malaysia to slow further in 2015, crimped by property cooling measures imposed in 2013 and weak buyer sentiment.
Moody's Assistant vice president and analyst,Jacintha Poh said: "We expect the anticipation of higher mortgage rates in 2015 and implementation of the 6 per cent Goods and Service Tax in April to dampen sales as buyers take a wait-and-see approach.
"But the magnitude of the sales impact will depend on Malaysian property developers' target segment of project launches and pricing."
Moody's analysis is contained in its latest edition of Inside Asean, a quarterly publication looking at major credit trends prevalent in the Southeast Asian region.
It expects developers focused on residential projects located in popular locations as Johor, Kuala Lumpur, Selangor and Penang, to face the greatest challenge in achieving their sales targets.
Properties in these states are typically priced above RM1 million and aimed at high-income households or foreign investors.
Nonetheless, Moody's expects demand for owner-occupied homes priced in the middle-income range to remain resilient.
Malaysia's average house prices from 2001 to 2013 increased at a compounded annual growth rate of 7.3 per cent, which is faster than the 6.3 per cent for the gross national income per labour.