Property market value expected to rise this year

KUALA LUMPUR: Malaysia’s property market is expected to increase in value and stabilise in terms of transactions this year.
This is based on the country’s economic growth projection at the rate of between five and 5.5 per cent this year.

Speaking to reporters after the launch of the Property Market Report 2013, here, yesterday, Deputy Finance Minister Datuk Ahmad Maslan said the property market would normally increase in line with the country’s economic growth.
Ahmad said the property market last year saw a 10.9 per cent contraction in total transaction but an increase of 6.7 per cent in value.

“Last year saw 381,130 transactions valued at RM152.37 billion compared with 2012’s 427,520 transactions worth RM142.84 billion,” he said.
Malaysia’s economy recorded a modest growth with gross domestic product expanding 4.7 per cent last year after reaching 5.6 per cent in 2012 and 5.1 per cent in 2011. Touching on the increase of house prices following the implementation of the goods and services tax (GST) in April next year, he said that the increase is not expected to exceed 1.8 per cent. He said that although there would be no GST for house buyers, there would still be a small increase due to the non-reimbursement in input tax, but prices should not increase too much.

“The government has other methods to curb price increase due to speculation, by improving existing policies,” he said.
Meanwhile, touching on the property report, Maslan said it was an important report under the Finance Ministry, published by the Department of Valuation and Property Services.

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