Business

Wednesday January 23, 2013

Property prices to keep rising


PETALING JAYA: High property prices are set to “keep increasing” in certain areas with good fundamentals, said the Association of Valuers, Property Managers, Estate Agents and Property Consultants (AVPEP) president Lim Lian Hong.

“In certain areas, property prices will keep increasing. The property market is backed by the country's economic fundamentals.

“It is better not to try to guess which one will go up and which one will come down. This is because the property market is not (volatile) like the stock market,” Lim said.

He said the prices were also determined by other fundamentals such as population growth, access to highways, and also types of design and finishes that a particular property offered to buyers.

Speaking at a briefing during the Property Market Outlook For 2013 forum organised by AVPEP, Lim said other important factors to include in evaluating a property was its surrounding area such as other upcoming developments.

He also said credit had to be given to certain developers for being able to market and sell their products so well in spite of the high prices.

“They (the developers) have been able to develop properties so well that sees values go up and this is good for everybody,” Lim added.

He said that another factor which influenced property prices was the supply-demand factor.

“If you ask me (specifically) in which areas the prices will go up or down, you will have to look at the supply and demand (equilibrium),” he quipped.

AVPEP honorary secretary Foo Gee Jen said another factor was the property's access to transportation facilities roads, rails or highways.

“In some areas today, even a Chinese school (situated nearby) may be key to an increase in land values. We are starting to see that,” Foo said.

On a related matter, Property Services and Valuation Department deputy director-genaral (technical) Faizal Abdul Rahman said that 2013 might see some “adjustment” in property prices.

“The increase in prices will not be as high as in previous years. Prices this year will moderate, depending on the area.

“Incoming supply in terms of numbers will be more than in previous years but the growth percentage will be less,” Faizal said.

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