Many weeks ago, someone asked me if the Klang Valley property market is bad. I asked bad in terms for developers or bad for owners / sellers? I know he does not mean bad for potential buyers. I told him that the market has indeed slowed but I still do not see really drastic actions by many developers yet. What we could see however is that developers with cash or big appetites and vision are still snapping up land parcels. Some announce to the world that they have a huge war chest and they are scouting for more lands. Some try to get more funds from the public to expand. More non-property players are now entering the market to also get a slice of the action.
The situation is very different from a SMS which I received today. Remember all the uproar and sharing on Facebook about how loyal Maxis users were apparently mistreated by Maxis’s special promotion which was only given when any user decides to stop their subscription? I started using Maxis in 2000 I think. That’s 17 years ago. I have been happy with Maxis’s coverage thus far. My whole family is still with Maxis, currently. However, I told my wife that as soon as my package is over, I would be porting over to another brand instead. I needed more data but I was not willing to pay ever higher for it. Today, the SMS came (refer image) and I told my colleague that I think I will be staying put. This is what I would define as a NECESSARY move before everything gets uncontrollable.
In Malaysia’s property market however, I seriously do not see this ‘necessary’ move yet. When the situation do get serious (bad) in the property market, I think we would see many smaller developers being forced to exit the market. The total outstanding / unsold number of units would rise to a new high. The buyers would disappear from the market not because they do not need a roof over their heads but because none of their friends were buying. This may happen if Malaysia spins into a full recession caused by the world falling into a recession. To be frank however, current signs are not pointing into that direction. Let’s keep monitoring the market yeah. Happy searching for undervalued properties.
written on 8 Apr 2016
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