The construction sector is expected to remain attractive next year amid a weaker domestic currency due to lower demand for commodities and the general public apprehension over the goods and services tax (GST).

Malaysia Building Society Bhd president and CEO Datuk Ahmad Zaini Osman said he expected the property market to remain sustainable, with the demand not much affected, even upon GST implementation in April next year.

“Furthermore, I think, our building materials, in term of currency, won’t be much affected as most of our products is local. We no longer bring in imported products.

“Hence, I foresee that the property sector will remain sustainable next year,” he told Bernama.

Despite possible slight oversupply of properties in certain areas, he said the government had already put a freeze on new projects in certain areas to neutralise the demand.

“Overall, there will be enough demand and supply. So, there will not be overly excess supply,” he added.

On the need for developers to move to suburban areas, he said that for any suburban area to be attractive, there had be a magnet to lure house buyers.

He said demand for housing would be high in areas near educational institutions like universities, having efficient public transportation and close to expressways.

On affordable housing, Zaini said the Government should develop urban outskirts, taking advantage of lower land prices, but they should have good road networks and transportation services.

The construction industry reported the strongest growth across sectors in the first six months of the year, registering 14.3%.

The government expects the momentum to continue into the second half and next year, fuelled by approved government projects and potential investments from the private sector.

Source: Bernama