Demand for property to remain steady in 2025
Following a steady performance this year, the Malaysian property market is expected to resume its stable growth momentum
Real Estate and Housing Developers' Association Malaysia (REHDA) president Datuk NK Tong said that developers cannot afford to disappoint customers.
Speaking to Bernama, Tong stressed that not all developers maintain high standards, cautioning buyers to remain vigilant against encountering subpar ones.
He emphasised buyers' right to seek legal recourse if they feel wronged by sellers.
Tong was asked to comment on some cases where buyers were dissatisfied with their newly bought property due to poor-quality materials and workmanship.
He said that not all developers are good, and buyers may encounter some bad and ugly ones.
Tong advised buyers to carefully select reputable developers with a proven track record.
Alternatively, he suggested exploring the secondary market, where transactions are transparent, accounting for about 85 percent of yearly transactions.
Regarding the recent salary hike for civil servants, Tong sees it as a potential boost to property purchasing opportunities.
Despite challenges like the rising cost of living and building materials, Tong sees the salary increase as a positive development, particularly for the Employees' Provident Fund (EPF) contributors, who can still access a portion of their savings for home purchases.
"Despite some concerns about the restructuring of contributors' accounts, in which Account 1 has been increased to 75 per cent, would-be homebuyers still have up to 25 per cent of their savings to be used to buy their dream home, in Accounts 2 and 3," he said.
While Tong acknowledges that the salary increase might not immediately address housing affordability issues, he anticipates positive long-term impacts on both the industry and the country.
To address escalating building costs, Tong recommended that developers innovate by possibly reducing margins or exploring alternative materials.
"The weakening of the ringgit could result in higher prices for buyers, but substitution with equally durable materials is another option. You will start to see units becoming a bit more compact because it makes more financial sense for developers in terms of construction," said Tong.
He cautioned against compliance costs, including regulatory delays, which add to operational expenses.
Tong emphasised the need to mitigate rising global energy costs, which are the prime input for building materials, without compromising regulations or laws.
Regarding the adoption of the industrialised building system (IBS), Tong noted its potential for improved quality but highlighted Malaysia's lack of economies of scale, hindering its widespread adoption.
He suggested that government projects with standardised designs and high unit volumes could facilitate IBS adoption.
However, Tong warned against improper IBS use, which could inflate prices if not implemented efficiently.
