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Residential property outlook? Developers are switching…

In the recent MIEA Press Conference, Kelvin Yip, Associate Director of Frank Knight Malaysia Sdn Bhd presented the “Residential Property Market Outlook.” These are some of the points he presented. Since 2016, Malaysia’s GDP has been on a downtrend but in 2017, it has rebounded and in 2018, forecasts from most analysts show that the 2018 number would be almost similar to the 2017 numbers; positive.  Inflation has continue to inch downwards but in 2017, it has also rebounded. In fact, close to 100 percent increase! Okay, except for countries in turmoil, increasing inflation rate is still considered a positive sign. I do hope no one thinks Malaysia is in some sort of turmoil? Unemployment rate has actually inched upwards. Does not seem that great but then again anything below 4 percent is considered good. I only know that if one is a computer science graduate and is good in programming, the starting pay may just be RM3,500 if not higher. I have more than a few friends below 30 who’s already within T20 percent earning bracket in Malaysia.

By the way, for those people working in the growing industries, the bonus should be pretty good. Already 2 friends whose companies are in the export business told me that their bonus would be 4 months. Another in the services line said anything less than 2 months, many in the company would resign. I was like, ‘WHAT?’ Anyway, I hope of them would save some of the bonus payout for investment purposes.  You can see that the GDP is driven by growth in exports, services and manufacturing as well as private investments. 🙂   On an overall basis, I rate these numbers as good for the property market. As long as they are okay to buy a unit within their means yeah.  Trying to stretch will not mean much because banks are unlikely to take too much risks these days. Here’s the full presentation from Kelvin. Download it here. One of his conclusions? More developers are going to build in established fringe locations and upcoming areas along the rail transportation lines with affordable housing products. Definitely a buyers market but are buyers in the mood to buy? That’s a question for you.

In conclusion for 2018?  Well, since 2014, we have a slow property market. Everyone knows that. If the question is ‘What is the Malaysian property market outlook for 2018?’ and it’s asked to me, my answer is, it will be a great one for everyone who bought a good property. 😛   Sorry yeah, I am an optimist but of course we must still look back at the fundamentals. Without a supportive economy, there’s no need to talk about the property market. We better talk about the job market instead. As at today however, the number of teenagers enjoying a RM17.50 cup of customised latte in most of the cafes I go to remained MANY. I do not think they earned it from doing part-time jobs and I do not believe their parents are under the low income household. Either way, these teenagers are not likely to see their allowances get cut unless their parents have financial difficulties. I hope everyone continues to earn good incomes.  Happy viewing! Here’s that report from Knight Frank here. 

written on 8 Feb 2018

Next suggested article: Unsold primary residential properties? In 2017, it was HUGE..

 

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kopiandproperty.com

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

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2 Comments

  • Sang Kancil Guru on February 9, 2018

    Those kids who are paying RM17.50 for a latte are probably earning RM3000 or less, living with their parents. They will not be able to afford to buy a home themselves, and their parents may not either, besides the single family home they have since childhood. Not everyone is like Vincent Tan’s children on private jets and sipping Starbucks frappes. But hey, in the depressing state of things in this country for our youths, at least they can afford to comfort themselves with a RM17.50 latte for the moment.

    • kopiandproperty.com on February 10, 2018

      Hi Sang Kancil, I am talking about teenagers, those barely 18 kids. As for overspending even when one is earning little, very true also. Staying with their parents may not be entirely true because many of these kids are moving into cities from their hometowns. Cheers!

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