Many of my friends have told me that I should tell them when it’s really the time to buy. I am not sure what they meant but it’s okay. They could continue waiting for the ‘really best time to buy.’ However, if we are looking at buying when the market shows some recovery signs where transactions are concerned, then perhaps the time has started. In 2018, the number of transactions increased marginally. It was the first time that it has been in the positive zone since 2014.
What has happened thus far in 2019 then? Let’s listen to what Raine & Horne International Zaki + Partners (RHIZP) is predicting for 2019.
Article in freemalaysiatoday.com Raine & Horne International Zaki + Partners (RHIZP) said the number of properties expected to be sold would be 204,840 units, compared to 197,385 units or RM68.7 billion last year, a 3.77% increase. Senior partner Michael Geh said, “The residential property market this year is expected to record the highest number of transactions within a four-year period since 2016.”
Geh is also the President of FIABCI Malaysia added that transactions in the secondary market will see an increase of between 2-3%. As for the impact of the foreign purchase of RM600,000 properties, the impact will only be seen in 2020. As for the current unsold properties, he said that many of these properties were in less desirable locations with little connectivity. It may remain unsold for the next two years. Do refer to the full article with more details here: Article in freemalaysiatoday.com
A friend managed to sell her property in Puchong recently for RM370,000. She had started to sell the property since middle of 2018. The starting price then was RM450,000 and later on RM430,000 and with lots of market pressure as well as the fact that she needed to go back to Penang, the final selling price was RM370,000. The ‘perceived’ market price as per listings are said to be around RM400,000.
This RM430,000 to RM370,000 represents an opportunity for buyers. When good times return, well, it may just be the other way around. As for all the potential sellers, be very objective. Earlier article here: Sellers, market is good for buying. Think about it when you sell . Many times the actual price we paid for may be even lower but we wanted to ‘maximise’ profits, so we try to sell at market price. This is likely to take a long time. How about identifying another great property to buy and then quickly sell this one and buy the next one? Happy investing.
Next suggested article: Why prices usually go up when transactions happen