LOCAL HOUSING MART REMAINS STABLE
House price index continues to rise despite cooling measures imposed by govt to curb speculation
MALAYSIA’S domestic house price index continues to grow albeit at a more moderate rate, despite a slew of cooling measures introduced by the government to curb speculation in property prices.
Global property consultancy Knight Frank, in launching its Global House Price Index for the fourth quarter of last year, noted that the overall picture of the industry was one of stable or rising prices, despite the global landscape of political and economic uncertainty.
Knight Frank Malaysia executive director of research and consultancy Judy Ong Mei Chen said the house price index in Malaysia continued to grow as the country was an attractive investment destination.
“Malaysia’s house price index continues to grow, but the pace has slowed down because of the slew of cooling measures introduced to curb speculation in the property sector.
“However, Malaysia still remains an attractive investment destination in the region with its stable property market and relative lower entry prices that continue to offer reasonable returns,” said Ong.
Knight Frank said the index monitored and compared the performance of mainstream residential markets in 55 countries across the world, 11 of which are from the Asia-Pacific region.
The consultancy said globally, the index grew six per cent last year, up from 5.3 per cent in the previous quarter and 4.1 per cent in 2015.
“It is the highest annual rate recorded since the first quarter of 2014,” it added.
Knight Frank Asia-Pacific head of research Nicholas Holt said New Zealand was the strongest performing market in the AsiaPacific region, despite the country seeing price growth moderating after a number of quarters of upwards momentum.
“However, with the market still suffering from supply shortages, we believe overall growth will remain positive throughout the year,” he said.
“In Asia, the most notable market was Singapore, where the surprise slight easing of certain cooling measures is likely to spur some additional interest in the market.
“Still sitting close to the bottom of the chart, many buyers in Singapore are still constrained by the Additional Buyer’s Stamp Duty and lending restrictions,” Holt added.