The rise in loan applications suggest that the market is taking a turn for the better.Â
There are clear indicators that suggest that the property market in Malaysia is taking an upwards turn. The construction industry is growing.Â It is forecast that the luxury market is set for a revival. Now those working in the industry are more positive than ever before for the future. This has been supplemented by recent news of a spike in loan applications.
According to PPC International, a property consultant, there was a rise in the number of applications by 19 percent for the first quarter of 2017. Additionally according to Bank Negara, Malaysian’s central bank, there has also been a three percent increase in loan approvals year-on-year.
These figures suggest that there is a renewed sense of consumer confidence in the market as demand increases. Developers have been adapting to market conditions and putting attractive packages on the table for investors. Enticing them in with marketing and finance draws such as smaller deposits and promotional gifts. Property purchasers are responding accordingly with the vast choices that are available to them. However this is only applies to new projects whilst the second hand market faces challenges related to financing.
Like in any slowing market, there is a real need for property to retain its value. This is applicable across the board from residential, retail and commercial. Management needs to be of the highest level to retain tenants and to maintain its worth. This fact has been noted by experts but the expansion of the mass transit networks is expected to be a key factor in driving the market going forward. This is despite a weak ringgit and slump in oil prices.
Driven by supply and demand, it is anticipated that there will be less new projects launched this year. A result of developers taking a cautious approach due to a drop in demand in 2015. This should turn attention to the second hand market where transaction numbers could possibly rise. A sector that historically has been ignored in favour of the newer schemes made available.