The current economic climate has many investors leery of real estate investment.
However, Eric Kho, the president of the Malaysian Institute of Estate Agents (MIEA) reassured that the weakening Ringgit will not lead to real estate prices crashing.
Property remained a sound investment despite the current economic climate, he added.
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“Holding property is always better than holding cash,” he said.
Although the demand for primary or new developments had been tapering down, Kho assured that it is not due to the depreciating currency.
He said the slowdown was due to stricter Bank Negara guidelines for banks in providing loans as well as increased construction cost due to the Goods and Service Tax (GST).
Construction cost had increased by up to 15% and some developers were holding back on launching new properties, said Kho.
Projects that had already been launched come with huge discounts to attract buyers.
Even in the secondary market sees a slowdown, and buyers can expect cheaper prices of between 5% and 10%, depending on location.
Kho, however, expected this situation to be temporary and said property would eventually appreciate.