The Star reported that the country’s property market, which has been on a downtrend over the past three years, is expected to return to growth following the implementation of the zero-rated Goods and Services Tax.
SP Setia Bhd President and Chief Executive Officer Datuk Khor Chap Jen said he hoped the move to abolish the GST would help improve buying sentiment, especially among the young and first-time house buyers.
“The property business has been a bit challenging over the last three years amid a soft market, but we hope this will change following the general election, with buying sentiment rising again.
“We are also seeing a decline in property speculation, so property buyers nowadays are those who really want to purchase houses. Housing demand will always be there, but it is now moving towards a stable, gradual increase,” he told reporters after the World Environment Day celebration organised by SP Setia.
Khor said in terms of demographics, a lot of young people were seeking houses and demand existed for landed residential properties with an average price of RM500,000 despite tighter bank lending requirements seen in the last three years.
“However, we hope this will change, as there has been many applications and requests to Bank Negara from first-time house buyers for the conditions to be eased,” he explained.
SP Setia’s projects in Iskandar Malaysia are Bukit Indah, Eco-Garden, Setia Tropika, Setia Indah, Taman Pelangi and Taman Rinting, undertaken by its subsidiary, I and P Group Sdn Bhd.
“In Johor, the highest demand is for landed properties as opposed to apartments,” he added.