SP Setia expects a revival in property market


JOHOR BAHRU: The country’s property market, which has been on a downtrend over the past three years, is expected to return to growth following the implementation of the zero-rated Goods and Services Tax from last Friday.

SP Setia Bhd President and Chief Executive Officer Datuk Khor Chap Jen said he hoped the move to abolish the GST would help improve buying sentiment, especially among the young and first-time house buyers.

“The property business has been a bit challenging over the last three years amid a soft market, but we hope this will change following the general election, with buying sentiment rising again.

“We are also seeing a decline in property speculation, so property buyers nowadays are those who really want to purchase houses. Housing demand will always be there, but it is now moving towards a stable, gradual increase,” he told reporters after the World Environment Day celebration organised by SP Setia here today.

Khor said in terms of demographics, a lot of young people were seeking houses and demand existed for landed residential properties with an average price of RM500,000 despite tighter bank lending requirements seen in the last three years.

“However, we hope this will change, as there has been many applications and requests to Bank Negara from first-time house buyers for the conditions to be eased,” he explained.

This was because the majority of these potential house buyers were already saddled with other burden, such as paying off National Higher Education Fund Corporation (PTPTN) and car loans, which made it difficult for them to pay the housing deposit, he said.

“The government recently declared that PTPTN borrowers could delay repaying their loans till they start earning a monthly income of RM4,000, and we expect this will, to a certain extent, increase the house buyers’ purchasing power,” he said. 

Meanwhile, Khor announced that SP Setia would launch a new township development project in Bertam, Penang, called Setia Fontaines at the end of this year.

The project, spanning 677 hectares, will feature two residential collections offering single- and double-storey terrace, cluster, semi-detached and bungalow houses.

“Other projects, located in Johor (Iskandar Malaysia), Selangor and Kuala Lumpur, were launched earlier and construction work was onongoing,” he said.

Among SP Setia’s projects in Iskandar Malaysia are Bukit Indah, Eco-Garden, Setia Tropika, Setia Indah, Taman Pelangi and Taman Rinting, undertaken by its subsidiary, I and P Group Sdn Bhd.

“Last year, we took over the I and P Group whereby we have opened more development space in the Iskandar area. All these development projects are expected to be fully completed within 10 years, and in Johor, the highest demand is for landed properties as opposed to apartments.

“This is because, in general, people of this country are accustomed to landed properties. But, in the future, when Johor becomes more advanced, perhaps the people here will accept the idea of living in apartments like  in Kuala Lumpur,” he said. - Bernama

 

Get 30% off with our ads free Premium Plan!

Monthly Plan

RM13.90/month
RM9.73 only

Billed as RM9.73 for the 1st month then RM13.90 thereafters.

Annual Plan

RM12.33/month
RM8.63/month

Billed as RM103.60 for the 1st year then RM148 thereafters.

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

HeiTech Padu appoints Hasrul Azuan as CEO
Dnex ties up with France-based Conex to streamline EU trade compliance for M’sian exporter
Capital A submits regularisation plan to exit PN17 status
TM and Perodua tie up to drive Malaysia's automotive transformation under NIMP 2030
Powerwell wins RM27mil supply contract
FBM KLCI gains ground; ringgit rebounds
Oil gains as cooling US inflation points to possible easing
CIMB and Gentari ink MoU to drive green mobility and value chain decarbonisation
AmInvest declares income distribution of RM142.8mil
S P Setia's commercial offerings in Semenyih see strong demand and full take-ups.

Others Also Read