Construction sector to remain attractive
Published on: Sunday, December 21, 2014
KUALA LUMPUR: The construction sector is expected to remain attractive next year amid a weaker domestic currency due to lower demand for commodities and the general public apprehension over the Goods and Services Tax (GST). Malaysia Building Society Bhd President and Chief Executive Officer Datuk Ahmad Zaini Osman said he expected the property market to remain sustainable, with the demand not much affected, even upon the GST implementation in April next year. "Furthermore, I think, our building materials, in term of currency, won't be much affected as most of our products is local. We no longer bring in imported products.
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"Hence, I foresee that the property sector will remain sustainable next year," he saidDespite possible slight oversupply of properties in certain areas, he said the government had already put a freeze on new projects in certain areas to neutralise the demand. "Overall, there will be enough demand and supply. So, there will not be overly excess supply," he added. On the need for developers to move to suburban areas, he said for any suburban area to be attractive, there has be a magnet to lure house buyers.
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He said demand for housing would be high in areas near educational institutions like universities, having efficient public transportation and close to expressways. On affordable housing, Zaini said that the government should develop urban outskirts, taking advantage of lower land prices, but they should have good road networks and transportation services.
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