KUALA LUMPUR: Property developers can look forward to a bumper year in 2010 with more purchasers and investors expected to enter the market as economic conditions improve.

Real Estate and Housing Developers’ Association (Rehda) deputy president Datuk Michael Yam said the local property sector may see up to 450,000 potential home buyers for next year.

“Based on average household formation and population growth, there is an average demand for 150,000 units (homes) per year.

“If people have delayed buying in 2008 and this year (because of the financial crisis), you should have around 450,000 people waiting to get into the housing market in 2010,” he told reporters yesterday.

Yam was a panellist at The Time Bomb Returns – Benchmarking Management Cost seminar jointly organised by FIABCI Malaysia and the Malaysian Association for Shopping and Highrise Complex Management (PPK). Given the (high) potential demand for property next year, he said developers could face a serious supply shortage.

“I think there is going to be a shortage next year. At the end of 2007, developers, especially the members of Rehda, were making a conscious decision not to launch because construction cost went up 30%.

Source: http://www.propertymalaysia.my/index.php/2009/12/02/property-sector-can-expect-bumper-year-ahead/

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