KUALA LUMPUR: The residential property market is expected to remain rather encouraging next year as consumers start to focus on affordable homes.
OSK Research Sdn Bhd said the fact that most of recent launches were of units in the high-end segment could signal that the upcycle is at its tail-end and developers were rushing to capture any remaining upside before the sentiment for such properties turns sour.
"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 said in a research note today.
The shift became more apparent recently when high-end developers such as SP Setia and Mah Sing acquired sizeable pieces of land in the Klang Valley for developing townships that offered 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 said.
OSK maintained a "neutral" call on the property sector, on the fact that property counters tend to underperform or market perform when sentiments weaken. - Bernama