The year 2013 is widely seen as the year when property prices are expected to rise due to faster and higher pace of inflation as well as rising commodity prices. With the election finally behind us, many property buyers are beginning to reassess their next move.
Residential properties will still do well in terms of numbers. For certain areas, prices will increase. But overall for this year, there will be an adjustment in terms of prices, which are expected to moderate. The property prices in Malaysia will continue to rise in the coming months, but at a slower rate possibly in single digits.
What has actually caused the serious price increase over the short span of time to the level we have never seen before, is low interest rate. The lowest BLR in Malaysia was logged in 2009 at 5.55% and the highest level was 12.80% in 1984. Taking this into consideration, the average BLR in Malaysia for the past 28 years is about 8%.