The following was a real conversation between an old friend of mine many years ago when I had just moved into my new condo and my friend who was interested called me one day. Note: This happened 7 years ago. The quantum of increase no longer happens like this but I can safely tell you that even if property prices increases at its usual rate, it may be better to act faster and not slower.
My friend: ‘Hey, I just went to your project today and viewed the 1st floor of Block C.’
Charles: Great, are you buying?
My friend: I am still thinking. It’s on top of the TNB room and it’s RM290K.
Charles: If it is unsafe, I don’t think the developer would build a unit there. Can u hear anything below the unit?
My friend: I can’t hear anythingbut I want to consider first. I love your project. So spacious and you have a jungle track within your project, I think this is the only one in Penang.
Charles: If everything is right, I suggest you buy quick because the prices would continue to move upwards especially RM290K is not considered that high.
My friend: Can’t be lar. There are so many units at RM290K.
In the end, my friend lost the unit because one week after that the unit was taken and I asked him what about all the other units he was looking at. He replied sheepishly that none of the units were below RM350K. Sorry to say but in property purchase, if the property meets all your requirement, BUY. There’s no such thing as the totally perfect property which meets every single of your requirement. If there are, chances are it’s not yours to buy. The owner would have increased the price or someone would have bought it earlier.
Last year, I decided to sell my condo, the one my old friend wanted. I informed him in advance that I was selling and if he is serious, we can always talk about the pricing. As he is a friend, I would give him a slightly lower price. He said he wanted to think about it and never got back to me. I sold it and just months ago, he called me and asked me if I still have the unit available. I reminded him that I told him much earlier. He said my price of RM645k was high. Then, he told me that today, the price is now RM700k.
My friend missed it because for every condo and for every price, it is always dictated by demand and supply. If a lot of the condo owners want to sell, the prices come down. Most of the time within the first 6 months of completion. If however, few units are being chased by many buyers, then the prices would go up. For secondary properties prices are pretty transparent. Even agents would be able to tell you a small range. When you intend to buy one, be serious about it. Perfect property with the lowest price may be around the corner if you redefine what is ‘lowest’ price. cheers.
rewritten on 26 Apr 2015
Suggested article: Penang Property Market? Expert Series with Michael Geh.