Malaysia property market outlook 2012

2012 Malaysia property outlook is expected to be not as good as 2011 due to the global economic uncertainties. Well, Malaysia, as an export-driven economy, will not be spared from the effect of the global economic turmoil. In some part of our country, there may even be a price correction to the properties, certain categories. High end residential and commercial properties are the first to be hit during economic downturn, be it in Malaysia or the United States.There will be less new housing project launching.

These are almost certainties

But, alas, the prices of property in Klang Valley are not expected to go down. In fact, the prices are expected to go up by five to twenty percent, according to a survey done on housing developers in Klang Valley!

This is definitely not a good news to those who haven't bought their first house.

But why even the prices of houses for the middle income group under affordable housing scheme are going up? The prices are not going up because of speculation, not like what happened to Hong Kong or Singapore properties due to foreign speculation. Foreigners don't come to buy new houses at Teluk Panglima Garang Kuala Langat, Jalan Kebun Shah Alam, Johan Setia Klang, Kapar and Meru at Selangor. So, the price increase must be caused by inflation - more money is needed to buy things where income's increase doesn't match up. Land, material and labour costs go up, and developers have to pass the cost to the house buyers and there isn't anything wrong with it that the government can do much! Or have I been wrong?

Tough situation. Sad story!