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2019 is THE year when home prices strengthen. KL and Penang ‘best buy’

Posted in Property Penang, and Property, KL / Selangor

‘It’s not easy to get a good price for a 1,000 sq ft condo in Penang currently,’ says my close friend, Mr. VS who’s a real estate negotiator in Penang. (If you want to buy properties in Penang, let me know and I will connect you to him) He added that he based his views on the fact that there’s too many of them (condos with 1,000 sq ft) and the demand is not strong like a few years ago. (before 2013). What about in KL? In KL, no real estate industry friends are telling me that the market is strong. I met Alan Poon, Founder and CEO of SuperiorWealth for coffee break yesterday. He was telling me about a similar situation here in KL. Demand is not strong and the market is really slow. This ‘slow’ situation in both Penang and KL may be turning around next year? After the euphoria since 10th May 2018, more good news shall we? Here’s an article in theedgemarkets.com “Savills Malaysia: Housing prices to firm up in 2019” 

According to Property consultancy Savills Malaysia, there are two property markets under the ‘never been a better time to buy; best buy.’ The two markets are Greater KL and Penang. No further explanation on reasons why but they did say that home prices will firm up in 2019 because of supply issue. It said that estate developers are able to increase supply by early 2020. Note this statement though, “However, there will be a period of adjustment and consolidation required to clear existing stock before we see much evidence of price increases.”  (I think what they are saying is that the current unsold stock has to reduce first and because developers have lots of unsold units, they are not going to aggresively build new ones. Since it will take some time to clear the stocks, by the time they (developers) clear the units and launch new ones, the supply would have slowed tremendously. Actually makes sense. No sell, no build. No build, no supply. No supply, demand exceeds it and well, prices firm up)

Moving on, Savills Malaysia deputy executive chairman Allan Soo said, “We see the likelihood that retail turnover will pick up in areas where GST is lifted from merchandise, and not replaced by a sales tax. We hope that luxury goods will fall into that category, making Malaysia a major tourist shopping destination.”  (Here, I think what he says is that with the removal of GST, it should help in improving the sentiment and thus this should make people more willing to buy. 6 percent is not likely to be the game-changer when we are talking about luxury goods. Sometimes, I do wonder why are there so many rich working professionals because I could see majority carrying luxury handbags while at the same time, so many working professionals say they could not afford any property above RM500,000.)  Savills Malaysia managing director Datuk Paul Khong shared that there is the prospect of an appreciation in the ringgit as well as strong economic growth and this will now make Malaysia an outstanding regional investment opportunity. Here’s that full article for reference. 
I hope everyone is now more positive with all these predictions from Savills Malaysia? There’s no need to ask me. Just read my views on a daily basis yeah. 🙂  Oh yeah, there are usually three kind of buyers. One who buys because he knows what he should buy, regardless of what people say. One buys because everyone buys because majority should be right? Another one keeps talking, asking and waiting. Happy following and deciding.
written on 16 May 2018
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