PETALING JAYA (Jan 30): Despite a slowing property market, two and three-storey terraced houses in Kota Kinabalu (pictured) have become increasingly popular, especially among first-time homebuyers and young families, said Knight Frank Malaysia (Sabah branch) research executive Welton Chin.
“The rising popularity is matched by a steady increase in value, whereby the total value of transactions for two and three-storey terraced houses increased by approximately 62% in 3Q2015 compared with the preceding year,” Chin says.
Meanwhile, he notes that the high-rise residential segment has in 3Q2015 registered a significant drop in terms of volume and value of transactions by approximately 52% compared with 3Q2014.
He explains that this is primarily due to an undersupply of new projects being launched throughout 2015.
“Inflated land and construction costs have also led developers to postpone new launches until the market sentiment improves,” he adds.
Similarly, Metro Homes Sdn Bhd senior group manager Richard Tokuzip opines that there were not many choices in the property market last year as most were unsold units from 2014 launches, but he has observed that the market during 4Q2015 seems to have picked up in terms of market response and is gaining momentum.
Chin also notes that given the weak ringgit, there are opportunities for foreign investors with good purchasing power to find good deals in both the primary and secondary markets, in addition to developers offering more incentives to buyers during this challenging time.