Business Time Online, March 03, 2010
THE outlook for Malaysian property market is promising with sales volume expected to increase by 5 to 10 per cent this year, according to RAM Holdings Bhd.
In stating this, its chief economist Dr Yeah Kim Leng said the improving economic outlook and friendly lending policy will help to increase the confidence level of consumers and boost the property market.
“Affordable housing and domestic-led growth strategy implies supportive policies will continue, though Bank Negara Malaysia remains wary of asset bubbles,” Yeah said at a talk organised by the International Real Estate Federation or FIABCI here today.
He said the favourable demographics, stricter-but-still easy access to home financing, rural-urban migration, foreign demand and income growth are all expected to improve housing sales.
Yeah said expectation that the central bank will start “normalisation” of its monetary measures beginning this month will not dampen home purchases, especially when economic growth strengthened further.
RAM expects an increase of 0.75 to 1.00 percentage point in the overnight policy rate by year-end. Read more »