Rehda says property prices to increase up to 20pct in next 6 months

Kuala Lumpur: Real Estate and Housing Developers' Association (Rehda) Malaysia expects property prices to increase up to 20% in the next six months in general as material and land costs continue to rise.

Its president Datuk Seri Michael Yam said on Thursday, March 10 that building material costs increased 5% to 10% annually. For instance, steel bar was transacted at RM2,350 to RM2,580 per tonne at end-2010 from RM1,800 at end-2009.

Yam said at a media briefing for the 2011 property outlook that for the full year of 2011, property prices were expected to increase by an average of 13%.

“The range of the increase will range between 2% and 50%, depending on the location and the development type. With higher property prices, condominiums are a good buy in KL, compared to terraced homes,” he added.

The estimation is based on a half-yearly survey done by Rehda with its members, comprising housing and property development companies, as at December last year. Some 135 out of 972 members from all states, or 14%, responded.

Yam noted that 58% of the respondents indicated they had increased their launch prices by an average of 11% (minimum: 5%; maximum: 40%) in the second half last year, compared to the previous launches in the first half of 2010.

By The EDGE Malaysia (by Racheal Lee of theedgeproperty.com)