I read in The Star today about some developers feeling the heat from all the cooling measures undertaken by the government. I seriously believe if their product is the right one for the mass market, there is nothing to fear. Whatever cooling measures undertaken is to ensure the property bubble does not happen and there are no bubble thus far for right property at affordable price. Gone are the days when the developers simply launch anything and the market would be queuing up to buy them. When the goings get tough, the tough gets going. It meant developers themselves have to conduct sufficient research and understands the market before any launching.
These days, any company with some cash in hand love to become a property developer. Some even roped in superstars to endorse their project and in the process the price per sf is increased even further. While this may continue to attract those with very deep pockets but even these deep pocketed people do their own research before parting with their money. In a market where everything is slowing down; over 30% down in terms of transactions in both Klang Valley and Penang year on year as at October 2013, it is not wise to think these people would continue whatever you build.
My friend asked me about buying a property for RM750psf in Penang recently. My advise is, as long as you are able to withstand some waiting, it should be okay in the longer term but if you think this RM750psf will rise up to RM850psf easily, think again. Perhaps it may be quite a long wait and I welcome the wait because properties should primarily for people who wants to stay and not for people who wants to flip. For those who loves to earn fast money, you may proceed to casinos all around you. There are two newer ones in Singapore and our very own Genting.
written on 28 dec 2013
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