On and off, we hear the grumbles from some of our friends that the property prices are expensive. Then, when I pointed out that it is not true and that they can still buy apartments for less than RM200,000. Their answer was, they wanted a condo instead. Then, when I pointed out that for a little bit more, a condo is reachable but they have to buy further away, their answer is, ‘its too far’ or ‘that area I don’t like’. Do you see what I see now? Are the buyers desperate? Oh yeah, two friends even commented that those affordable schemes that either the federal government or the state government is running are too few, it’s impossible to get one. Both of them said, they have not yet submitted their application. What the ……… ?
In Hong Kong, when any unit is put up for sale and is 10% below market price, it will be snapped up almost immediately. In Singapore, the same situation would also happen to HDB flats. However, in Malaysia, even up till today despite the fact the secondary market has not gone up like the primary market, people are still not buying. If people are buying, why are there still so many listings for properties below RM400,000 in Iproperty, Propertyguru, or Propwall? Who are we trying to kid here? On one hand, everyone is saying that anything above Rm400,000 is a definite no-no but on the other hand, those properties which are still way below Rm400,000 are still lying everywhere!
Let me give you a real example. As I was not rushing to sell, I put up my condo in Penang for RM640,000. It comes with 2 car parks. Size is 1,258 sf. In other words RM508 per sf. Today, you cannot find ANY new launches for such a size and car parks for this price in Penang. Yet, people are still waiting for the prices to go down. My agent laughed together with me too because I told him, since buyers are not desperate, I am ok to wait and as soon as markets start moving up, I will adjust my price. For those buyers who wants such a size and 2 car parks and by a reputable developer, I sincerely think you will lose this opportunity. I know, some would say there are a few projects which are below this price! Let me tell you in advance, ‘Please proceed to buy THAT project’. SMILE.
Transactions have gone down. Prices has inched up. Buyers are still looking, waiting and they are not desperate. It is perfectly fine because if you look at the base price of a few years ago, it also meant that the sellers are also rather comfortable even at this current situation. Malaysia is nowhere near America. Here, if you do not qualify for loan from local banks you will not get the loan. The failure rate for new home loans are close to 50% for all new launchings. (developer’s info). If I have extra cash, I will not wait. My next purchase is going to be for rental purpose as I think there are still a lot of gems in the market today.
written on 26 April 2014
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