It amuses me every time someone asked me about the lowest point for the proprrty market. The bottom point. Even if the speaker is someone very famous, how is he going to know when is the bottom point? Using stats? Well if so, then why need the speaker… Why not they sell just you the report. Everyone can just wait till that day and just buy. Then everyone becomes a multi-millionaire after a few years later. Or using historical data? If so, then the best speakers should be statisticians or even historians. By the way, the ones usually asking about the bottom point are also the ones who are still finding more reasons not to buy. Funny but true! Failure to see opportunity beyond the usual always ensure only the few who saw becomes wealthy. Have you read how many people said no to Jack Ma or even KFC’s Colonel Sanders before both became successful? Both definitely did not predict when is the best time to push what they believe. They just do it.
One thing is for sure however. The median property price for Melbourne or Sydney is already very high, even if the Australians are earning in AU$ which is supposed to be 3 times higher than Malaysia. Here’sone earlier article: Median home prices – Australian cities. (by Corelogic) Fresh graduates in HongKong is earning 3.5 times more than their friends here in Malaysia. Fresh Grads and Micro Apartments Or even the fact that Singapore’s property prices are dropping but is still far off from how much they went up within those few booming years. What about the property capital of the world, London? Well, an earlier article here: Global property bubble about to pop? Pop means kaboom These are property markets which has by farmore foreign participation than Malaysia. They are considered more advanced, nothing less than a decade more advanced I personally think. Draw one line across their property prices over the past 10, 20 and even 30 years and the line goes up. A dip here and there perhaps due to the overall economic situation but it is clear, prices continue going up or at least inching upwards.
As for Malaysia’s average property prices, I seriously do think that the average property prices would have to drop because of the many affordable homes which are being launched, built and delivered across Malaysia, especially within the Greater KL area. The number of units per development can be over 1,500 units and these are mostly below RM400,000. Average property price in KL used to be over RM700k. Earlier article here: KL property prices? Still up….. slowly Assuming the average prices do drop, then when will it be bottoming? I think those prices offered by PR1MA, RUMAWIP and even Rumah Selangorku is already a bottom. Anything lower would mean that Malaysia is in an economic crisis with lots of people out of job and no longer just something in trouble with the property market. Let’s hope that this kind of bottom prices do not happen. As for those first-timers still waiting, go for the affordable schemes first. After a few years, can always upgrade. The waiting game is best played after we own something Cheers.
written on 11 July 2017
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