Property market Malaysia where transactions are concerned started slowing down since 2013. It showed a very small ‘recovery’ for 2018 when compared to 2017. Here’s that earlier article: JPPH:market improved in 2018 versus 2017. With the current Home Ownership Campaign being extended till end of 2019, (earlier article here.) perhaps this may push the total transactions to be very slightly higher in 2019 versus 2018? By the way, no one knows for at least 7-8 more months. However, one thing’s for sure, there are a few prominent property experts saying that just perhaps the market is now in recovery mode.
Article in edgeprop.my Axis REIT Managers Bhd head of investment Siva Shanker is optimistic about the market. He said, “I expect the market to improve further by end-2019. We are probably at the bottom of the u-curve.” He also believe that the confidence is returning to the market as several large infrastructure projects have been confirmed. Once the economy starts getting stronger, the property market will follow. He added, ““More people are looking for houses, making enquiries and viewings.”
Henry Butcher Malaysia COO Tang Chee Meng says he expects property prices to increase within a 5% to 10% range annually in future. However the price movements currently are flattish. This is a good opportunity for cash-rich investors to pick up properties at off-peak prices.As for normal homebuyers, a good time to buy will be when there are signs of market recovery. He also expects that the buying in second half of 2019 will be better with the support from the HOC 2019’s extension. Do read the full article in edgeprop.my
This evening, I gave a talk to IQI RENs at their Old Klang Road office. I shared all the best times to buy a property and one of it will be when developers conduct a clearance sale. By the way, if a developer could not sell enough units to breakeven, chances of them doing a clearance sale will not exist. They may just choose to return the down payments received instead. There are already developers offering discounts which are higher than the guidelines for the HOC 2019. However, these discounts simply meant that they are willing to take a cut in their profit margins instead of a clearance sale. As for all the rest with just a small discount even after such a long unsold period, I think it tells us that the bottom of a u-curve as predicted by Siva Shanker may just be true. We will see next year, okay?
<Featured Image is courtesy of Stock Photos from donskarpo>
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