KUALA LUMPUR (March 25): KGV International Property Consultants executive director Samuel Tan foresees the Johor property market to level up in the next two years.
Speaking at The Edge Investment Forum on Real Estate 2017 themed “Have we hit rock bottom? What’s next?”, Tan said real estate transaction volume and value in Johor will see a drop in the next two years.
“The market is correcting itself. We will continue to see lower transaction volume and value especially in the high-rise residential segment. However, the niche landed segment will still be in demand,” Tan said during his presentation entitled “Johor market: Too much too soon? Is it too late to invest?”
“Johor property prices have skyrocketed since 2009 and I think the current slowdown is a good phenomenon to allow price corrections and prepare for the next generation of buyers,” Tan said.
He added that the current oversupply situation of high-rise residential properties will push developers to price new products within the range of RM450 to RM600 psf to cater to the mass market.
“Moving forward, affordability is still a major concern for buyers. Other than that, I think there will also be more affordable landed housing which will likely be priced in the range of RM250,000 to RM600,000, Tan noted.
He also believes niche landed homes, such as waterfront villas, will continue to sell well.
“People who can afford such homes are those with deep pockets. They don’t buy for the house but for the location and for future appreciation in value,” Tan shared.