‘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)
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