PETALING JAYA: Local demand for high-end condominiums is expected to weaken in the next 12 months, primarily in the Kuala Lumpur City Centre area, with more developers anticipated to tap foreign markets.
Jones Lang Wootton executive director Malathi Thevendren said the projection is based on the mismatch in the level of pricing by developers with local affordability.
“Supply must match demand, as there are not many people who can afford to buy high-end condominiums. Some developers are holding back their launches… they know there’s no market,” she said on the sidelines of the 17th National Housing and Property Summit, here, yesterday.
Malathi was a speaker at the two-day summit organised by the Asian Strategy and Leadership Institute.
For affordable condominiums, she said demand will see steady growth, with young couples and professionals driving the market.
“People’s preferences are still for landed properties. But because house prices have escalated over the past two to three years, many can’t afford to own such property.”
Malathi said market prices of most high-end condominiums are expected to be stable over the short-term, while prices of low- to medium-end condominiums at more popular locations may see some appreciation. For new launches, prices are likely to increase in line with inflation and construction costs.
On supply, she said it would see moderate growth with infrastructure, transport improvements and condominium acceptance areas further from the city.
~ By BUSINESS TIMES
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