I wrote about this nearly 2.5 years ago. The amazing thing is, the property bubble bursting predicted by my very successful friend has not yet happened. My friend is now already a Director in a US- Multinational. His salary would be the envy of majority of all Malaysians, perhaps including me. Read here: Property Prices are way too high in Penang. Actually, there are not even many condos of 1,000sf which are below RM550k today in Penang. Of course, that prediction about the RM1 million has always been quite true. The prices have since stagnated and the sales for the properties above RM750,000 in Penang is definitely tough these days.
In fact my own condo in Tanjung Tokong for which I was offered RM630k just a year ago is now finding it tough to even sell for RM600k. Let’s face it, property investment must still be based on affordability. During great times, many just ignored all these but during slower times, sanity returns. Read here: In a slowing market, sanity returns how true For those who are still believing that property prices will drop to a level everyone can buy, it would not happen, without another financial crisis which meant that majority of banks would tighten their lending even further and many would only be thinking of hanging on dearly to their jobs. I am not sure if any one of us really do prefer this situation.
Oh yeah, remember I wrote earlier about some predictions by property industry experts a.k.a gurus that 2018 may see a return of the “healthy days”? Here: Asia Property Market Sentiment Survey: 2018 peak again Many friends are now telling me that 2018 may just be a propaganda by some industry people. First, if it’s truly propaganda, it simply meant we must buy VERY CAREFULLY. It does not mean, ‘stop buying.’ Do note that even during good times, there are still buys who bought wrong ones and are still suffering currently. Second, if it’s proven that in 2018, prices are booming again, we have all missed another boat both in 2016 and 2017. Happy believing, regardless of side. I am just an investor like the majority of you.
written on 23 Mar 2016
Next suggested article: Flat 2016? Good 2018 and great 2020?