Property bubble ‘not likely’

Monday, 17 June 2013 10:01 Kazi Mahmood

Malaysia’s housing and property sector is safe from a property bubble with the future looking bright for the industry, said Ken Holdings Bhd group MD Tan Chek Siong.

He cited the robust demand and the existing supply as the main reasons for the company’s trust in the future growth of the industry as a whole.

“I do not foresee a property bubble in Malaysia as long as there is continued demand and the location of the property is good,” he told The Malaysian Reserve after the launch of the company’s Ken Rimba Jimbaran Residences on Saturday.

“There is also a rise in divorces, based on what the authorities are saying, and this too means there are even more demand for new homes which they can afford on their own,” he said.

Ken Holdings is pushing forward several new concepts that were attractive, at the right prices, to first time buyers and those in the market for innovative and green homes.

He said there are a large number of young people looking for the type of homes and condominiums offered by the company, proof of demand is there for new houses.

One of the considerations is that buyers of the company’s properties seem to be professionals with stable jobs who can afford the mid-range and high-priced houses, thus creating demand for more houses.

He said the economic situation was conducive thus prompting Malaysians who want to have new houses to go on the hunt for a home, since the properties are still affordable.

There are no reasons for fear of a collapse of the market since Ken Holdings alone can boast of an 80% sales of its residential homes, including the 4-bedroom, 3-bathroom, double-storey terrace/ link houses in Ken Rimba, Legian Residences, Shah Alam.

One of the facets of the Ken Rimba residences, Tan said is its strategic location, providing residents with the convenience of shopping, leisure and transportation such as the Keretapi Tanah Melayu Bhd and bus station within the guarded enclave. Ken Rimba is located at Section 16, Shah Alam.