Is today a buyers’ market or is it a sellers’ market. The answer is not that straightforward yeah. If I own a property which has dropped in price but I could hold on, it’s still a good market for me. As for the buyers’ who are looking at only the attractive properties in mature neighbourhoods, chances are it’s not really their market either. For first-time home buyers who realised that there are really properties which are cheaper in slightly less popular areas, it’s their market. After they bought and they started staying there, the prices will slowly inch upwards and when it’s time for them to upgrade, the times may be better already.
Article in themalaysianreserve.com The mortgage applications are now at a 6-year high! It’s also 37 percent higher than a year before. The total for these applications? RM25.6 billion in May 2019. Industry experts say that this is due to the lower interest rate as well as the Home Ownership Campaign BUT it will not be enough to clear the overhang. Latest figures from Bank Negara Malaysia (BNM) indicate that loan figures are falling again.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told The Malaysian Reserve (TMR). “I doubt the property overhang will be cleared very soon. It’s a buyers’ market now, and buyers have other options such as sub-sales and auction markets, especially those who are financially savvy.” He added, “We could expect a slight improvement (in the glut situation) due to HOC 2019 but it will be very marginal.”
According to the National Property Information Centre, total unsold completed residential units — also known as an overhang — amounted to 32,936 units worth RM19.96 billion in the first quarter of 2019 (1Q19). MIDF Amanah Investment Bank Bhd also said that the property market will remain a buyers’ market in the near term. Developers are also expected to keep offering discounts and put in more marketing efforts. Article in themalaysianreserve.com
Earlier article about HOC extension here. (click) Let’s really understand that with the market still in uncertainty, most first-time home buyers will be at the sidelines. I am not sure if they are waiting though because I do not feel that they are taking this opportunity to start viewing as well as saving lots of down payment and be ready to grab when the opportunity presents itself. Remember yeah: Uncertainty will cause even more waiting As for the savvy investors who has been investing for many years, they have lots of options yeah. They always do. For the rest who may also want to take a look at the auction market, perhaps this could be an event to attend this 17 August 2019 (click) . Happy understanding.
written on 5 Aug 2019
<Featured Image is courtesy of Stock Photos from fizkes>
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