We should always leave the predictions to property experts. So, who are the experts? Actually, most of us are property experts in our small way, especially those who stay in some not so popular areas. Haha. You would know exactly about new shop openings in your area. In fact when McDonald’s and a new bank branch opens, it will tell you that the population for the neighbourhood has grown to a good number. By the way, when many shops start to open one after another every few weeks or even months, you have bought at a really good potential area. Hold on to your unit and enjoy… By the way, when you see shops closing one after another and even the local bank branch is closing, it may also mean that they are not having sufficient support from the local population. May not be positive. 🙂 Oh yeah, coming back to our topic for the day; general election and the property market.
Reported in TheMalaysianReserve, Property consultancy firm Savills (M) Sdn Bhd executive chairman Datuk Christopher Boyd said, “We have seen a lack of confidence in the market. I think there is an issue of affordability in the residential market, which has been overplayed. I feel very sure that once the general election is over, whatever the outcome would be, there will be increase in demand for the overall property market.” (Positive statement) Boyd went on to share that even when the market starts to pick up, the current excess unsold units in the market would prevent prices from suddenly explode. He said that developers would have to clear quite a number of units before any major price corrections could take place.
In the same article in TMR, Axis Real Estate Investment Trust Managers Bhd head of investment Siva Shanker says something similar. He said, “Everything is on track, but it looks a little bit quiet now because everyone is worried about the election. Barring something really unfortunate, I think as soon as the election is over, the economy will kick-start and the sector will move along nicely. So, 2018 should see the start of a small recovery in the property sector.” In terms of the future for the office market, Boyd shared that the demand for co-working spaces would mean a reposition of the supply and demand in the market. He said, “As time passes, co-working spaces will definitely spread out to the suburban areas, satellite offices, as well as other cities such as Penang, Johor Baru and Kuantan driven by the flexibility and lifestyle amenities, which would meet the youths’ current wants and needs.” Full article here for reference.
I also think the property transactions should normalise (means growing slowly again) after the general election. Yes, just an hour ago, a friend said he is sure it will be end April 2018 or latest first week of May. I love his confidence. These few weeks, the actions from potential buyers have really reduced in intensity. In one bank property auction just last week, instead of the usual 20-30 bidders / guests like usual there were just 6 people in the auction hall. Actually, this may present an opportunity to all potential bidders in property auctions because every property may have just one bidder! So, one may get to buy the property at the reserve price which sometimes may already be 20 percent below market. Happy anticipating the actual election date announcement yeah. Yes, should be pretty soon.
written on 27 March 2018
Next suggested article: Banks are refusing to lend or buyers are unable to buy? Different things.. ok