A friend said that if we want to know if the occupancy is excellent, good or bad, we just need to drive by the development at night. If most of the lights are off, it meant that the occupancy is low. This does not mean that most of the units were unsold because developers do not usually start the project without sufficient units sold. Else, they will not have enough funds to complete it. What happens though is that many of the buyers bought the units but they were not thinking of staying in it. They were waiting for it to be completed in order to sell it and get profits instead. When this happens, it’s unlikely that they could sell it at a higher price that what they paid for.
Then again if we are looking at it from a high-end property perspective, we need to also note the holding power. Remember, that the same property bought at the same time will yield different results for different people because of holding power. Same car, same property? Different results for different people. If we want to know what’s happening in the high-end residential property market Malaysia? Well, here’s a report released by Nawawi Tie Leung Property Consultants Sdn Bhd (NTL).
Article in themalaysianreserve.com here. Nawawi Tie Leung Property Consultants Sdn Bhd (NTL) released a report entitled, “Muted Global Conditions Affected the Malaysian Market.” It says that the high-end residential property market is expected to remain stagnant over the next quarters due to the increase in the number of overhang homes. The rising overhang homes are due to the demand-supply mismatch and strict lending regulations. Besides that, the market is swayed towards the first-time home buyers who are more interested with affordable housing. It said, “Overall, the high-end residential property market is anticipated to remain sluggish in such conditions for the upcoming quarters.” This is why the high-end residential market sampled in Kuala Lumpur continues to remain soft without much activities in 2Q 2019. Do refer to the full article here. There are also comments on commercial properties too. Article in themalaysianreserve.com here.
Let’s understand that high-end residential property will always be a different ball game compared to affordable property. The affordable play will be a much bigger mass market play. The high-end residential meanwhile will have to depend on the T20 households or the business community yeah. Which property will have a better capital appreciation? Haha. Imagine… property of high-end residential rises continuously while prices of affordable properties remain exactly the same? 🙂 It will always be the same yeah. Prices do not rise just in one segment and it will also not be falling in one segment. Just note that price fluctuations will usually be wider when the property price is more expensive versus a bread and butter kind of property. Happy following.
<Featured Image is courtesy of Stock Photos from Beyond Time>
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