After my property investment sharing session around 2 months ago in a company function, one colleague identified the area which met her expectations, started viewing and signed the Sale and Purchase agreement last week. She said she does not know when is the best time to buy but the she managed to get a good discount from the buyer. She said maybe it’s because of the current situation; slowdown. I told her that’s for sure because during good times, as soon as we ask for discounts, the seller would close their door. The best time to buy would normally be a bad time to sell. She bought a secondary high-rise unit of 800 sq ft for RM380,000 in Bandar Permaisuri. The unit was renovated which is a plus. My good friend, the general manager of propsocial.my just shared with me that her friend who told her that she wants to buy 5 years ago is still waiting to buy. Haha. So, what do the experts say?
During PropertyGuru’s 2017 Market Outlook, Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Seri Fateh Iskandar Mohamed Mansor said prospective housebuyers cannot count on property prices falling significantly despite a softer property market. He shared, “A lot of people have asked me ‘So when is it going to fall? When can I get a good deal?’ I’m telling you now is when you are getting a good deal.” He then shared something which I usually remind my friends. We should look at what we could afford, understand what we really need and proceed to buy. The waiting game is best played after we own something, not before. He also shared that developers looking to sell may not be offering lower prices but they are throwing in a free cabinet or air-con units etc. These days, the developers are better funded than the days of 1998 or 1999.
The drop in transaction numbers did not only happen this year. In fact it has started dropping from 2013. Assuming someone bought a new unit towards the end of 2012, the unit should already be completed this year. Since there were so many who bought for investment, surely they would need to sell their units. The question is, did we view and negotiate for a better price? As for developers, the focus is pretty easy. Smaller units with lower prices. This is what the mass-market could afford. It’s no longer about wants. We should note, there were times when condos of 1,000 sq ft were only RM200,000 or RM250,000. For those prices, it could have easily doubled. Main reason? People could afford the price, even after it doubled. Today, when we buy at RM450,000 let’s not have the mindset that it will double and become RM900,000. How many Malaysians can afford them? Happy deciding.
written on 6 Dec 2016
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