Slow, slow, slow. No grow. Property market Malaysia in 2020.

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A good friend who’s a prominent property expert asked me about my opinion about an article in edgeprop.my He said that perhaps real estate analysts should be more positive for Malaysia property market 2020. I told him that after reading the article thoroughly, I think the article is at worst, negative. In fact, there were many positives inside the article. For one, it does not say that the Malaysian property market will be facing a crisis in 2020.

With a world economy of today, with the two largest economies in the world still in that very weak truce, the risks are definitely higher. Then, we were treated to the news that a drone killed the most powerful Iranian general. Latest news though is that both sides are saying that they do not want any escalation into a full-blown war. I mean this kind of news / announcements from both sides should be considered a positive one even if it came from a negative situation. Now we come to the article.

Article in edgeprop.my KL Property Index had a mixed year in 2019. It toughed a high of 964.6 points in February 21 2019 and declined to a low of 747.62 during the year. On Dec 31, it is in the middle, closing at 830.62 points. The performance is better than the benchmark FBM KLCI.

Top declining property counters included Yong Tai Bhd (down 56%), Eastern & Oriental Bhd (down 42%), S P Setia Bhd (down 30%) and LBS Bina Group Bhd (down 20%). Some of those who appreciated included Iskandar Waterfront City Bhd (IWCity) which surged 110% during the year. YNH Property Bhd gained 109%

CGS-CIMB analyst Ngo Siew Teng shared if one looked at the data collected by National Property Information Centre the total residential property transactions rose 2.1% year-on-year (y-o-y) in the third quarter of 2019. The increase was supported by the Home Ownership Campaign which ended on 31st December 2019.

MIDF Research said, “We expect property sales of property developers to be unexciting in 2020. As such, we expect outlook for property sector to remain lacklustre in 2020 and maintain our ‘neutral’ view on the sector,” Please refer to the comprehensive Article in edgeprop.my

Sluggish, the adjective used by the article in edgeprop.my also meant slow-moving, inactive and flat. I think this is not such a bad sign yeah. It gives an opportunities to many in the M40 household category to read more and understand more. Perhaps they may buy a property in 2020 if they continue to have a stable job. Just remember that the T20 earns a much higher income. If the M40 wants to catch up, it will have to be through investments.

Relying on salary increments will be uphill because that same 5% increase in salary for the T20 and a 5% increase for the M40 will mean the gap is getting larger. This is the increment forecasted for Malaysian working professionals for 2020. Malaysians, we will have increments for 2020. High or Low? Happy reading articles from my point of view yeah.

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