Yes, the property market is challenging for some developers. For some buyers who has received keys to their unit and found out that the price they wanted to sell is not what the next buyer is willing to accept, that’s a headache too. However to think everyone is pulling back and no longer buying is totally untrue. Seriously, even for first-time buyers who is able to get their loans approved, they will buy if the unit is what they are looking for. Malaysia’s GDP is still expected to be 4.5 percent or thereabouts for 2017. Another prominent developer has just announced this, “We are optimistic of achieving our RM4 billion sales target this year amid challenging market conditions,” This is their expectations fo the year ending October 2017. This was reported in NST today. This sentence came from Eco World DevelopmentGroup Bhd’s chief executive office Datuk Chang Khim Wah.
He gave two valid assessments. Interest rate has been attractive so far. Bank Negara Malaysia is still continuing its accommodative stance instead of worrying too much about increasing the rates so that ringgit can become stronger. BNM: Stablising ringgit is priority and welcoming long-term investors He also shared that the property sales have remained strong despite the average household facing rising cost of living. (I think it’s important to note that the group of property buyers for most properties today are also those who is still having a secure job and have sufficient credit score that their loans are approved by the banks. Seriously, it is tougher to get loans because banks themselves are also wary that things are not that positive today)
He then shared something everyone should note, whether they are buying today, tomorrow or in future. He said, We continue to enhance security, infrastructure and amenities for home buyers.” Actually when we look at huge integrated developments these days, they are further away. That’s the reason why some developers would need to do much more than just build within a mature area and sell high. To date, Eco World has a total landbank of 8,000 acres. The group is focusing on existing projects in Penang, Johor Baru and the Klang Valley. Next is a good news for any developer. Chang shared, “We are always mindful of our gearing rate, and as a new developer, we want to strengthen our position in the market. By partnering with trusted names such as the Employees Provident Fund (EPF) to help finance our projects, we can sustain our gearing rate to a comfortable level.” Happy following.
written on 20 Feb 2017
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