Please tell me, what was the salary increment that you are expecting for 2020? Would it be 5%? Or higher at 6%? Or even higher still? Against a salary of RM6,000 for example, a 5% is RM300 per month and 6% is at RM360 per month. This is what consultants are saying for the increments in 2020. We will have incremments in 2020 What do you expect for the property you are current staying in?
Imagine you bought a RM500,000 property in 2018 and started to stay there happily. By the end of 2019, the price has increased by 2.5%. Yes, just 2.5%. In actual amount, that’s RM12,500. On a monthly basis, that’s RM1,041.70 Actually, 2.5% is considered low because the typical inflation numbers may be higher. In Singapore, with the effectiveness of the cooling measures, the property price has increased by 2.5% in 2019.
Article in themalaysianreserve.com . For all of 2019, apartment prices in Singapore increased by 2.5%, well below a jump of 7.9% in 2018. In the final three months of 2019, it rose by just 0.3%. Singapore introduced cooling measures to slow price increases in early July 2018. These measures included raising stamp duties for second homes, tightening loan-to-value limits for housing loans granted by financial institutions and making it more expensive for foreigners to enter the market.
There’s another reason for the price increase moderating too. Singapore is currently facing an oversupply. Some market watchers say it may take up to four years to clear. There are almost 32,000 units of which some are completed and some are under construction in the pipeline. The Monetary Authority of Singapore said, “The increase in the unsold inventory could place downward pressure on prices in the medium term, if unaccompanied by a corresponding rise in demand.” Please refer to more detail in the Article in themalaysianreserve.com
There’s no need to think Malaysia is any different yeah. It’s great to have a guide as to what may potentially happen from a more advanced market right next door. We (Malaysians) continue to be bombarded by news about overhang properties and all those measures to attract some foreigners to take it up via the lowering of foreign buyer threshold. Just have to see if it’s going to be successful. Number of units remained small because it’s not for the whole of Malaysia yeah, just Kuala Lumpur at the moment.
As for the promoters of this lower threshold, remember yeah, attract them (foreign buyers) with the attractiveness of Kuala Lumpur and not the low price. Earlier article here: Lower threshold does not mean people will suddenly buy When we look at how the market moves, it’s very clear that when markets face a slowdown, property prices do not go into negative mode. It goes into hibernation mode instead… Happy holding on to your asset yeah.
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