theSun Property January 2017

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WHILE last weekwe
published views on the
global outlook, this
weekwe explore the
market in various regions as well as
the local scene.
It’s a newyear and looking at
how the propertymarket and our
local currency fared in 2016, many
are sceptical. With that, we have
compiled views and comments
fromvarious industry specialists
andmarket professionals for a
better idea of what can be expected
in the Year of the Rooster.
REGIONAL OVERVIEW
According to JLL’s forecast for 2017
delivered by its global capital
markets research director, David
Green-Morgan, the amount of
capital targeting real estate across
the worldwill remain constant,
with volumes expected to exceed
slightly. However, political and
market uncertaintywill likely
Three celebrations to
welcomeaperfect year
> Reports on propertymarkets in the region and here inMalaysia
CONTINUEDON NEXT PAGE X
S P Setia Berhad hosted the first of
its three Chinese NewYear
celebrations towelcome the Year
of the Fire Rooster at the Setia
Welcome Centre, SPICE Penang.
More than 500 guests
comprising Astro celebrities and
Penangites, attended the party.
The theme for the party this year
was based on “a home is made
complete when all family
members reunite”.
The party saw guests partaking
in fun games and activities
together with their favourite
celebrities, as well as rainbow
calligraphy, dough doll-making,
fortune-telling, caricature drawing
sessions andmore.
The “God of Prosperity” was
also present to hand out mandarin
oranges and Setia ang pows, while
Setia staff were seen distributing
traditional Chinese candies and
sweets.
Eight luckywinners walked
awaywith limited-edition plush
toys produced by Astro in
collaborationwith S P Setia.
The second of its festive
celebrations was held at the Setia
TropikaWelcome Centre in
Johor, with the final one taking
place this Saturday at the Setia
City Convention Centre in Setia
Alam.
For more information, visit
perpetuate into the year.
Green-Morgan shares that
performance in two of the
region’s biggest markets,
Australia and Japan, was
down by 17% and 1%
respectively, with China
recording a 19% increase.
Over in the UK, it was a
rollercoaster with Brexit,
which saw a decline in
currency terms and overall
volume, yet the English
managed to battle it out and
end the year with just a 11%
drop. Outperformers for the
year were Germany (up by
11%) and Central and Eastern
Europe (up by 70%) – notably
Poland and the Czech
Republic.
In the Americas, the
market ended 9% lower than the
previous year with Canada slightly
outperforming the rest of the region
by ending the year just 3%below its
figures for 2015.
LOCAL LANDSCAPE
According to property experts at a
forumconducted by PropertyGuru,
as rising living costs and smaller
income growth are still concerns
that are being carried into the new
year, these will likely cause
affordability issues and high loan
application rejection rates to persist,
whichwill, if not already, lead to
falling property prices. Moreover,
with oversupply in some segments
of high-rise residences – this will
likely cause a drop in the selling
price of property, especially for
those who do not have holding
power andmay need to liquidate
their properties.
Withmany in the oil and gas and
banking industries who have been
given the pink slip (especially
PHOTO: HTTP://WWW.WORLDPROPERTYJOURNAL.COM
China
foreigners/expats), renters will be
spoiled for choice, evenmore, as the
number of vacant leased homes/
properties increase, causing
landlords to drop rates. Then again,
depending onwhich “side of the
fence you’re on”, there will be losers
and gainers unless one has had the
foresight and considered a long-
term investment plan beforehand.
HOTSPOTS AND
MANTLE PLUMES
The effect from rejected bank loans
and those needing to cash out on
their properties will most likely see
a rise in the number of rentals,
especially those situated in strategic
locations, facilitatedwith good
public transportation or located in
easily connected/accessible areas.
Areas to take note of are the
Transit OrientedDevelopments
(TODs) – property development
projects that are connected or
located in close proximity toMRT,
LRT or monorail stations. Andwith
Prasarana’s seven additional TOD
projects (in Selangor alone)
expected to be completedwithin
the next four years, plus
construction of the High Speed Rail
scheduled in 2018, not forgetting the
MRT line that will soon connect the
north and south sectors of Greater
Kuala Lumpur – the property scene
here is expected to be bustling.
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USA
The view after Brexit in the UK.
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Propertymarket outlook PART2
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theSun ON FRIDAY | JANUARY 20, 2017