PROPERTY developers have been asked to maintain caution and not over-build to prevent a repeat of the 1997 property downturn despite the renewed optimism in the sector.

Finance Minister II Tan Sri Nor Mohamed Yakcop said developers should conduct proper market intelligence before embarking on any projects.

Developers should make use of the information provided by the National Property Information centre (Napic) to help them make informed and relevant decisions, Nor Mohamed said in his keynote address at the 15th National Real Estate Convention in Kuala Lumpur yesterday.

''There is an imperative need to inject greater professionalism in the development and management of real estate in order to ensure the continued healthy development of the property sector,'' he said.

Nor Mohamed said professional rigour should be applied not only in project development but also in the management of assets, especially in the proper maintenance of high-rise buildings.

He said future property developments needed to be more self-contained and integrated with the view of providing quality properties and conducive living and working environment.

Nor Mohamed said the property sector must reinvent itself to stay profitable and competitive and, at the same time, meet its obligations responsibly and ethically.

''Industry players ought to carry out market studies to ascertain market needs and affordability,'' he said, adding that cost reduction and productivity gains resulting in competitive pricing should be the prime objective.

This, he said, could be attained through faster construction and labour-saving technology, such as fabrication, standardisation and modular systems.

Nor Mohamed said while the sector had relied on and benefited enormously from foreign workers, this over-dependence had retarded capital intensity and innovation in work processes.

''Consequently, jobs in this sector remained unattractive to local workers,'' he said.