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Developers feeling the heat?

Posted in Uncategorized

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

Next suggested article: Predictions on property bubble burst date

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7 Comments

  1. Richard
    Richard

    Yup, agreed with unknown developers making a quick bucks from buyers may affect to mislead. Casino on the table will be quite a recommendation, wanna know more call me 😉

    December 28, 2013
    |Reply
  2. asali
    asali

    You would have probability 50/50 chances in Casino but in Property 75% chances you could have earn handsome money with little money. So, which one is better?

    December 28, 2013
    |Reply
    • 🙂 I would take property anytime asali! On and off, casino trips would be fine for me too.

      December 28, 2013
      |Reply
  3. Richard
    Richard

    I’ve realised if so happen developers sells their property to their right market, they still can sell especially for the std units. If u see most projects the penthouse or higher entry units ones are left unsold. Buyers are still out there but options are rather more these days result in slow downs for developers

    December 29, 2013
    |Reply
    • agree. right product, right price sells. or else, better redesign the product to calibrate the prices for new launches.

      December 29, 2013
      |Reply
  4. Crystal Teh
    Crystal Teh

    I read this news about developers from Chinese newspaper too. Yesterday i met two people. One is my friend who asking me calculate his income able afford buy how much house. He feel sad after i calculate for him, because he prefer 300k house, after calculate, end up only affordable 100k house. Property price keep increasing, a property 5 years ago sell in 100k, nowadays turn to about 200k – 250k. He said, shall him use the word “inflation” on property? While another, when we walk in Paragon shopping mall, she look into Paragon condo and told me that, how regret that time when Paragon newly launch, she no buy it. That time launching price with 900k. Nowadays, at Penang any new project condo, the price comes to 600k -800k. Imagine how worth if switch this budget get a Paragon condo when it launching. The main key is, Paragon condo is in golden area – Gurney Drive.

    December 30, 2013
    |Reply
  5. Hui Yi
    Hui Yi

    I read that today and was thinking to share wif u. haha

    March 11, 2014
    |Reply

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