Actual conversation from a friend’s Facebook page which made me laugh out loud this morning.
Potential buyer: Hi… I am XXXXX. Looking for a new house. Prefer double-storey, link-house.
REN: Your budget n location please
Potential buyer: Shah Alam. RM200-400k. With gated and guarded.
Ladies and gentlemen, all the affordable projects announced thus far are high-rise units below RM350,000. There are some PR1MA units at RM400,000 but generally, the aim is for RM300,000 or lower because that’s the limit which most Malaysians could afford to buy. At this price point, there are definitely some landed ones too but I have not yet come across any from Shah Alam. If you know of any, feel free to share.
We know that times are really slow. However, this is still NOT the time to wait for property prices in mature and popular areas to drop a lot. Assuming the price dropped 10%, the neighbours to the unit would have purchased the unit. In fact even the Real Estate Negotiator (REN) who is handling the deal from the owner should buy the unit instead of offering it to the market. Any REN who comes across such deals and does not want to take the unit up should let me know. I can help spread the news too.
Beyond times are slow, potential buyers must stop waiting and guessing. In fact, please know the price range for certain areas so that when opportunities open up, we can strike it quickly before others do. In fact this is the time to really go all out to scout for good deals. This is the time to view many units and choose the best and then negotiate for the best price possible. Auction market could be one but the issue with auction market is that it’s best to be ready with the money just in case the loan is delayed. Else, one may lose their deposit.
Someone told me that developers are desperate nowadays. That is why some offer more than 10% discounts and some numbers they offer are unbelievable. Let me tell you my thoughts again. Based on the cost of construction and the time needed to build these units, the developer needed to sell above their cost and I have never heard of any developer who has gross margins higher than 30 percent. We can also refer to the listed companies’ results for some ideas too. In other words, if the developer could offer 30 percent, they have to find ways to cut costs. Land cost is already fixed much earlier. So, think really carefully, what will happen to the final quality of the project? Happy researching.
<Featured Image is courtesy of Stock Photos from By bogdanhoda>
written on 7 April 2019
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