Personally, whenever market slows down, it should be a good time for some bargain hunting. This is especially so when the market has been booming for many years and if you drive past a lot of condos these days, a lot of it are unoccupied even if owned by someone. If we were to refer to online websites, there are still a lot of very affordable properties, just that it may not be in a location you love. Areas such as Damansara Damai, Selayang, Sungai Buloh or Rawang can not be compared to Bangsar, Mont Kiara or Desa Park city. Surprisingly a lot of the properties in these less favourable area are not even half of the typical prices in the popular areas. During booming times, every few months, the price would increase. I think currently, the prices are quite stable if not lower if there are a lot of desperate sellers.
This is especially true for any new projects which has just been completed a few months. If there are 500 units and only 50% of the units are put up for sale, we are talking about a huge amount of available units for sale. Prices would be under pressure and if you are a buyer, you should move in now. As soon as the supply starts to becoming much lesser, the owners would get back their negotiation powers and soon enough, if the project is indeed undervalued compared to the surrounding peers, you would have lost the chance.
If possible, do your own homework, jot down the properties you like to buy in property sites, look at them again every few weeks. Some properties are still there. These would be good targets. Please do not have false hopes. Prices are not going to come down 20% unless some kind of bubble bursts. The bubble cannot burst because if the property prices comes down 20%, developers would stop launching new projects and supply would shrink in the coming future. To me, if you buy a property undervalued by 10% compared to similar units, it’s a sign to buy.
I have read about CIMB analysts saying the market would recover by H2 of next year. I have also heard that prices would be stagnant throughout 2014. However, there has been zero report that the bubble would definitely burst in 2014. Buyers, it’s your market now. Don’t simply buy overvalued properties but don’t miss the boat.
written on 26 dec 2013.
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