I think it is very important to understand why buyers buy and not just the so-called negative sentiment which everyone is talking about today. This is especially true for the ‘repeat buyers.’ Most of the time, the reason why they continue to buy is because they have learnt about the benefits of buying the right property. They may also be buying because they had just sold off one of their properties for a good profit and wanted to reinvest. Last but not least, they are buying because there are now more opportunities. No queues from the buyers. The queues are coming from the many launches instead. Look at the newly launched ones, the prices are definitely more attractive today compared to 2 years ago. Back then, it was reaching for the sky.
Reported in a local English daily. Regardless of the current negative sentiment affecting the market, Andaman Property Management Sdn Bhd Managing Director Datuk Seri Dr Vincent Tiew said that investors and first-time buyers are still continuing to buy. The property market demand remain stable. This demand is not coming from just the rich but also the mass market. The only thing holding them back would be the 50-50 chance for loan approval as well as the type of property available.
Someone wrote in to me, asking if it’s appropriate for her to buy a property for own-stay, a condo of 1,000sf at around RM450,000 which comes with 2 car parks. The only thing is that the property is in an area prone to jam nearly all the time. The whole development is also a high-density one. Actually high-density or low density, this kind of price vs the location and price is going to be hard to find 4 years down the road when the condo is completed. She is ALSO a repeat buyer. She will either rent out her existing apartment or sell it later.
Coming back to the first-time buyers today. Truth is, potential demand far outstrips whatever incoming and available supply there is today. Take a look at the Malaysian population demographics to understand why. The only issue would always be affordability vs location and price. Hotspots are too expensive. Cheap ones are too far away. Affordable ones often have a few reasons which needs some serious consideration. Slower periods represent opportunities but not many dared to buy when everyone they know are saying otherwise. That’s the reason why first-time buyers need a longer time to decide compared to REPEAT buyers. During the hotter times, I lost out in buying a unit I wanted by a mere few minutes. A friend lost out in buying her unit of choice by seconds! She lost out to my sister and brother. All three were at the same launching event.
Read more. Understand what’s the typical prices. Drive around even in areas you are not familiar with. Get to know your options. Know what you can afford and then buy one. Unless Malaysia suffers same fate as Greece in the near future, a few years down the road would reveal that the decision to buy was better than to do nothing and spent much of the money on something ‘useless’ instead. Yes, the repeat buyers would continue to buy. That’s why first-time buyers MUST buy too.
written on 15 July 2015
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