By Ashwin Kumar
SHAH ALAM, Feb 27 — Though the Malaysian property market outlook remains challenging, it is showing some signs of recovery even though the progress may be slow.
Selangor State Development Corporation (PKNS) Chief Operating Officer Norita Mohd Sidek said the property bubble between 2011 and 2013 saw the Malaysian house price index to have increased up by an average of 11 per cent in recent years.
“This has resulted in a combination of oversupply and slowing demand, which affects the property overhang. Fortunately, there are signs of a possible recovery although it may be slow progress.
“For instance, through the expected increase in the economic activity spurred by the Shared Prosperity Vision (SPV) 2030, we are hoping that it would generate business growth and demand of industrial and commercial properties,” she said in her welcome address at the National C-Level Real Estate Investment Trusts (REITs) conference 2020 here yesterday.
Norita noted additional efforts by the Federal government, such as reducing the minimum threshold price for foreigners to buy residential property, could also spur the property demand.
“Property owners and industry players need to find a way to unlock the value of the assets that they own in order to maintain their survival in the market,” she said.
Meanwhile, on the conference, Norita said REITs have always been viewed by investors as a defensive investment and are particularly in demand in times of economic uncertainty, given their good sustainable dividend yields.
A REITs are companies that own or finance income-producing real estate including commercial, industrial or hospitality properties.
There are some 18 REITs listed on Bursa Malaysia at present.
