Advertisements

Double digit increase in prices even with the current slowdown?

It’s not easy to convince those who has yet to buy a property that prices are not likely to drop as much as it has risen. It’s far easier to convince those who already own more than 2 properties to stop and think a bit more before buying. Haha. Well, except for another financial crisis, prices will not be singing ‘if only I could turn back, time.’ (Song by Aqua) This is regardless of the current market sentiment, which is negative and likely to remain the same for 2017 or beyond. Some predictions?  Luxury high rise? Rising higher next year Perhaps just show them some numbers reported by a major property site, with actual numbers? Actual transaction prices versus prices being offered today? Here’s one in theedgemarkets.com KL condos that defied the slowdown in 2016. 

What the article shared was a list of some properties that has defied the current slowdown and is still going up in price. In fact all are growing by double digits within the past 12 months. Prices per sq ft? Except for one which was over RM1,200 per sq ft, the rest are the normal ones, ranging from around RM400 to slightly over RM500 per sq ft. These are from the secondary market. It’s not all positive though. There were also a total of 78 condos which suffered a drop in sale prices between 2.2% to 11.7% y-o-y. Some of those projects include the Platinum Lake PV10 in Setapak, Abadi Indah Apartment in Taman Desa, G Residence in Desa Pandan, Seringin Residences in Kuchai Lama and Idaman Residence @ KLCC. It quoted PA International managing director Jerome Hong who observed that properties that registered high growth were all below RM500,000. A good property according to Hong would have three aspects: the education catalyst, transit-oriented developments (TOD) and integrated developments with various components. The full article is pretty long and comprehensive. Do read it here. 

As for new launches today, the typical price would already be around RM500 per sq ft, depending on the size. Usually, smaller sized condos would have a higher price per sq ft. The reason is because of affordability. Not all condos are offering two car parks yet though but RM500 per sq ft today is already higher than some older secondary units. When it’s completed 4 years later, with the usual inflation rate, the prices should inch up further. I personally think the double digit growth days will not happen anymore. The salaries are not rising fast enough to accommodate any sudden increase anymore. Dangerous, when property turns affordable  Here’s that article again. Note though that buying secondary units would also mean one has to take care of the usual wear and tear too. Here are some tips on inspecting secondary condos. Not all condos are the same. This is the reason why we need to evaluate before we buy. Happy viewing.

written on 14 Aug 2017

Next suggested article: Developers are unlikely to reduce prices drastically? True, but..

 

Advertisements

kopiandproperty.com

kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.

Related Posts

Social Capital Considerations in Purchasing Property

An article by my good friend who’s launching his book next month.  It’s a guide to everyone who’s thinking of buying a property.  Happy reading.      — start — “Man is by nature a social Animal” – Aristotle Source: https://commons.wikimedia.org (image in public domain) What are the factors most people take into consideration when […]

Read More

Fearing the worst for Malaysian banks?

I just wrote this article not too long ago: Important signs for the market; Banks’ results Banks are extremely important because they allow to see way in advance if the market is in trouble. Here’s a THREAT to Malaysian banks. Article in TheStar here. Moody’s Investors Service has announced that property loans are the greatest threat for Malaysian […]

Read More

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Property investment news everyday? Subscribe for free!

An article a day, keeps you updated all the way.

Join 898 other subscribers

LIKE us for property news update, FREE.

%d bloggers like this: