Expert Series with Khalil Adis: The ‘tough’ questions for those waiting to buy

Khalil is a much sought after speaker and real estate consultant by many developers and thus it is my honour to be able to catch him for this Expert Series focused on answers for those playing the waiting game. Seriously, it’s foolish to buy without understanding enough especially when there are both over-supply of luxury units in certain locations as well as under-valued properties side by side in the Malaysian property market today. Let’s learn from this distinguished gentleman who’s ever willing to share. His answers below are frank, direct and real.

1) What’s your advice to the first-time buyers who are waiting for property prices to drop lower before buying?
My advice is not to buy when you can still afford to. Don’t time the market as the market does not wait for anyone. In my opinion, 2016 presents plenty of opportunity for buyers as there is so much supply in the market.

2) In your personal expert opinion, what’s the possibility of a bubble bursting for the condo market since there are now oversupply in the market? Why do you say so?
When you talk about a property bubble, we refer to price climbing at an unreasonable levels for first-time home owners. With so much supply in the market, prices for homes in the secondary market have actually come down by some 30 per cent compared to new launches so I don’t see a property bubble forming here. I would advice those who need a home quickly to look for homes in the secondary market as there are so many good deals out there.

3) Is it true that buying in hotspots is less risky compared to buying a secondary area which is not favoured by many people yet? After all, the demand for these hotspots are far higher.
It is true it is less risky. However, it also means it will be expensive and out of reach for the first time property buyer. I would advice those who are cash sensitive to also look into other areas that are up and coming with plans for new MRT lines, economic drivers, iconic projects and such. These secondary areas (like Sungei Buloh, Kajang, Semenyih) may seem ‘ulu’ now but will be the next hot spot once the various infrastructure have been completed.

4) Should Malaysia’s price per sq ft be benchmarked with the developed property markets of the world? Why do you say so?
I think it should be dictated by market forces rather than benchmarking it to say Singapore as each country evolve at different rates. Properties in Singapore is expensive because we do not have enough land plus we have a stable political environment and first class infrastructure. You cannot have the same price per sq ft in Malaysia when the ingredients are not the same. There is no point in benchmarking it to other developed countries when in the end, locals cannot afford to buy them.

There’s no need to stop here. Keep reading and following him at http://khaliladis.com/

interviewed on 15 Mar 2016

Next suggested expert series: Expert Series: That serious matter about your retirement

Khalil Adis is a property journalist who is also a sought-after speaker and real estate consultant known for his independent reviews and commentaries. He has his own consultancy business which presents a myriad of services which include property and market research, due diligence, editorial, content management and speaking engagements in the regional property market.

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