PETALING JAYA: The property sector is likely to face hard times for the remainder of this year due to waning demand, high cost of materials and an expected increase in interest rates.
Rahim and Co International Property Consultants CEO Siva Shanker told FMT Business the sector’s performance for the first half of this year has been unremarkable.
Siva foresees only a modest improvement of between 2% and 4% for the property sector by the end of 2022.“Although close to a flatline, it is still an improvement and one that is sustainable over the longer term,” he said. He said properties outside prime locations may encounter a lack of demand.
On the commercial side, Siva expects demand for office space and retail outlets in small suburban malls to decline as preference shifts to smaller units and online operations. He said the rising supply of office units will only exacerbate the situation.