Negri housing market looks promising

By Star Online: Business
19th Jan 2013

THE property market in Negri Sembilan looks promising this year and is expected to continue growing with no slowdown expected in take-up rates for residential property.

Real Estate and Housing Developers' Association Malaysia Negri Sembilan (Rehda NS) chairman S. Sivanyanam says demand for single- and double-storey landed properties is the strongest with terraces being the most-popular choice.

He says a good indicator of the continued demand for such properties is the sales reports from participating developers at the 2012 Mapex NS property expo held in October.

“These properties sold like hotcakes and were the most popular during the expo,” he says.

Sivanyanam is confident the Negri property market will continue to do well in 2013.

Property prices in the state, especially in Seremban, are also expected to rise in tandem with other related costs such as land prices and the cost of building materials.

At present, single-storey terraced houses in the state are priced between RM150,000 and RM200,000, while double-storey terrace ranges from RM240,000 to RM350,000.

Prices, of course, correspond to a property's built-up area (generally 20 ft x 75 ft to 22 ft x 75 ft), finishes and location.

Due to Seremban's proximity to Kuala Lumpur and improvements to its infrastructure, many people working in the Klang Valley have also chosen to buy homes in Seremban as the prices are very much lower in comparison to properties in the city.

In fact, housebuyers are able to afford larger landed properties for about only half the price of Klang Valley properties.

Single storey semi-detached units in Seremban currently retail between RM350,000 and RM500,000, and double-storey semi-detached ranges from RM450,000 to RM800,000.

The built-up size of these units range from 40 ft x 80 ft to 50 ft x 100 ft, which is really good value for money, hence its popularity with those working in the Klang Valley.

Increase in both construction and labour costs pushed property prices up by about 7% last year compared to 2011 and 2010.

Although prices would continue to increase in 2013, Sivanyanam, who is also a director of Mega 3 Housing Sdn Bhd, says it is difficult to put a figure on the increase.

“There are plenty of factors to consider including fluctuating prices of building materials.

“Of course, prices will increase but only marginally,” he says.

While landed properties continue to show an upward trend in Seremban and its surrounding areas, the sales of high-rise properties remain sluggish.

This, perhaps, can be attributed to the preference of house-buyers in Negri Sembilan and because land is still available.

“There is only selected demand for high-rise properties in the state,” says Sivanyanam.

Siva says 2012 was a good year for the Negri property market, with an increase in developers launching new projects.

He is confident this trend will continue into 2013, with more mid-year launches of residential properties expected.

“Continued improvement to infrastructure such as the completion of the Middle Ring Roads and other amenities bode well for the property market here. We expect the market to do well and remain resilient,” he says.

Growth is also expected in newer townships such as Seremban2 at the top-end of the market which enjoys continued success and Bandar Seri Sendayan.

These townships are continuing to expand and are popular with buyers due to their location, infrastructure and facilities provided.

[Source]