IJM land sees moderate growth for Klang Valley properties

Klang Valley's property sector is expected to experience moderate growth next year, says IJM Land central region General Manager Hoo Kim See.

He said the loan tightening rule by Bank Negara Malaysia could slow down the demand for properties while developers will remain cautious in launching new properties.

"Property prices have increased by leaps and bounds over the last few years and it could only be a moderate growth next year," he told Bernama at Shng Villas's project briefing recently.

He said buyers will also tend to be cautious in purchasing their property unlike in previous years when all types of property were quickly snapped up.

"I believe the rising labour and land costs are the major factors for the moderate growth in the property sector," he said, adding property developers need to study their products, pricing and target group before launching a property.

"Although the demand for properties will still be there in the Klang Valley, only properties in a strategic location at reasonable prices can attract genuine buyers," he said.

However, Hoo said, the good news for property developers is that Bank Negara is still maintaining the interest rate for housing loans.