Every time someone tells me that the property market is about to collapse, I would smile and say I disagree. Their next statement is always ‘look at the oversupply’ I repeat, oversupply and property bubble bursting are not necessary the best team-mates. Here’s an easy to understand video yeah.
I personally think the property market is always about demand vs supply. As for demand vs supply, it’s also affected by sentiment. A positive sentiment means people would be more willing to buy while a negative one will mean people will think over a longer period instead of confirming their purchase because a property is usually the most expensive item that will ever buy in their lifetime. Today, we have a positive assessment from our Housing and Local Government Minister Zuraida Kamaruddin.
Article in EdgeProp.my here. She (Zuraida) said, “I am optimistic of the property market because of the policies and with all the efforts [by] different parties, the market will improve and the rakyat will benefit [and can] own a home. Things will get better for all of us, hopefully.” She is also supportive of Napic’s proposal for a federal government committee to evaluate fair housing prices. She said, “The Ministry of Finance has the right to form the committee because they want to make sure that the cost of the houses commensurate with the construction cost. Therefore, it is about developers not making big-margin profits in their project [sales]. But I do not have to worry because the developers who are coming to see me, they said that they enjoy a 5% profit [which] is enough [for them].” (Developers are looking at just 5 percent profits? I am not sure how many developers are looking at just 5 percent profit margin but I did not read any articles about developers refuting this yet…)
Next, we have Rehda immediate past president Datuk FD Iskandar who said that he hopes the first National Budget 2019 from the new government will have incentives to boost the overall economy and real estate sector specifically. He said, “This upcoming Budget 2019 is particularly important to provide clarity and clear direction, as well as reinforce the new government’s vision for the country which will hopefully set the tone not only for the next fiscal year but also the years beyond. How the government balances between the challenges of fiscal consolidation and growth as well as national debt will determine the market’s next course of action. We hope that the government will send positive signals to private and foreign investors about the affirmative reforms and growth opportunities that Malaysia has to offer.” Here’s that full article in Edgeprop.my
Since the focus is now on the Budget 2019 in November, let’s just not say too much and wait for it. It’s just 3 weeks away actually. As for me, as a Malaysian concerned for other Malaysians, I am waiting forward to more details about the 1 million new affordable homes instead because I am sure the KPKT are well aware that the homes needed to be affordable and attractive enough or else, this new supply will just add to the oversupply numbers instead of allowing more Malaysians to own a roof over their heads. Happy following.
written on 12 Oct 2018
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