I personally believe property prices, whether it’s on the way up or on the way down should never be the main reason we buy one. The reason is because actually, no one knows for sure whether it’s on uptrend or downtrend. Buy because of clearer reasons; you need a place to stay, YOU ARE GETTING MARRIED or you want to hedge against inflation or even a form of savings for our children’s education. However, trends are always important because it will still be a supporting reason why or when we should buy. The below is a press release by PropertyGuru. In brief, they are saying that there’s a chance for property prices to start going up in the near future. This is because the PropertyGuru Market Index has shown that property prices are bottoming out..
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PropertyGuru Launches Property Market Index for Malaysia; Report Indicates Possible Bottoming Out for Property Prices
- PropertyGuru launches the PropertyGuru Market Index as a key reference for Malaysians seeking to understand the real estate market.
- Marginal quarterly points to possible bottoming out in Malaysia
- Year-on-year price trends reflect 1.8 percent decline
KUALA LUMPUR, JUNE 1 2017 – Continuing to help Malaysians make more informed property decisions, PropertyGuru, the leading online property portal, launched its proprietary ‘PropertyGuru Market Index’ (PMI) exclusively for Malaysia today.
PMI is a comprehensive, insightful quarterly overview of home pricing trends at a nationwide level, as well as the key property markets of Kuala Lumpur, Selangor, Johor and Penang.
The index serves as a great knowledge asset and trend indicator to all consumers helping them make informed property decisions. PMI is available to the public at: http://www.propertyguru.com.my/marketindex.
From Q4 2016 to Q1 2017, following a decline in prices, the PMI showed a marginal increase of 0.2 percent for property prices in Malaysia. This indicates that the local property sector could be bottoming out.
PMI is derived from PropertyGuru’s extensive proprietary data, which includes (but is not limited to) the asking prices of over 250,000 residential property listings onPropertyGuru.com.my.
The data is cleaned, aggregated and indexed to provide insights into price movements on a quarterly basis. The index also considers supply volume of properties from both the primary and resale markets.
“The PropertyGuru Market Index is a realistic view of market sentiment; the asking prices that sellers be it property developers or private home owners are confident of fetching from the market.
We believe that the insights delivered in the Index can help consumers to better understand the real estate market, helping them to time their property purchases better and give them a greater sense of property market movements,” explained Sheldon Fernandez, PropertyGuru Malaysia Country Manager.
Kuala Lumpur, Selangor, Johor Move Upwards; Penang Declines
Quarterly, Kuala Lumpur, Selangor, Johor registered upward price movements with increases of 0.3 percent, 0.3 percent and 3.4 percent respectively. Penang’s index showed a decline in property prices by 0.7 percent– largely attributed to a reduction in prices and a tapered supply.
Yearly, the Index saw Penang and Selangor record year-on-year declines of 4.1 percent and 2.6 percent, respectively. Kuala Lumpur recorded one percent year-on-year growth. A significant year-on-year increase of 5.3 percent was seen for the Johor market contributed by the various mega projects being developed there.
“Going forward, we foresee prices being affected by inflationary pressures due to rising living costs, availability and accessibility to financing and overall conditions of the macro-economic environment. The next quarter will provide a clearer indication on how the property market has performed in the first half of 2017 and possibly give us a trend line for the rest of the year,” shared Fernandez.
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