Residential property to continue uptrend in 2012

29th December 2011

The residential property market will likely remain positive next year, with consumers shifting their focus to affordable homes.

According to OSK Research Sdn Bhd (OSK Research), recent high-end launches could indicate the upcycle’s tail-end. Developers may also be rushing to capture any remaining upside for such properties before negative sentiments arise.

“Subsequently, we expect developers to shift to the more affordable mass-market housing segment to tap into the high demand by first-time young buyers,” it noted.

The shift became notable when high-end developers like Mah Sing Bhd and SP Setia Group Bhd acquired large Klang Valley land parcels to develop townships offering affordable housing.

“For those which remain focused on the high-end market, we see them offering smaller housing units with the aim of making the price per unit appear more affordable,” it added.

The investment research firm maintained a “neutral” call on the property sector, if property counters “market-perform” or “underperform” when sentiments weaken.

Source