Until today, I have friends who refuse to look at the secondary market. First of all, there’s nothing wrong with whether it’s primary or secondary. However, these friends also commented that primary properties are either too expensive in the places they desire or too far away if it meets the price they were willing to pay. Now do we wonder why so many are still renting and spending away their extra money and in the end, making the property prices seem even more expensive.
Of course, there are those staying with their parents and thus are not pushed at all to buy one. After all, the rental market is also bad currently… right? Haha. Let’s look at what Mark Saw, chairman of the Malaysian Institute of Estate Agents (MIEA) Penang branch said in a Malay Mail article recently. Full article here. He said current conditions in the Penang property market is good for potential buyers. This is because the prices are weakening due to more projects being delivered by end of 2016 as well as the the usual complaint of difficulties in getting loan approvals. He said, “We expect a slight dip in pricing in the secondary market at the end of the year as we are expecting at least half a dozen projects to be completed at the end of this year.”
He also explained briefly on the three groups of buyers who are still thinking of buying. They are new home buyers looking for their dream home, investors waiting for lower prices to start buying and even state natives who’s working abroad and thus could afford to buy property here in Penang due to the foreign exchange rate gains.
I think he is right on all three groups. However, just to add, I think the first time home-buyers may need to understand that their dream home may not be their first home. Seriously, how many Malaysians will buy the BEST property they could buy today and will always feel that it is the best and will never look at other properties in the future? Stay focused. That first property provides stability and forces us to pay for something that is an asset. This should be the right focus. That ‘dream home?‘ It can always be the second property or perhaps a future upgrade. Happy viewing secondary properties in the upcoming Malaysian Secondary Property Exhibition in Queensbay Penang on 22 – 25 September 2016. Cheers.
written on 5 Aug 2016
Next suggested article: Be careful with property investment today