I am not sure how many Malaysian friends we ask today will say something positive about the property market. Somehow, even if they still have a stable job paying them good pay, the thinking is the same; Malaysian economy is not doing well. Of course, when the economy is not doing well, the property market is likely to follow. What we do not want is for the property prices to still move up even with a slow market like today. Article here: The economy should determine the property price. More natural
Well, perhaps we should also ask some analysts about the economy as well as the property market then? At least, their views would be backed up by numbers and their own research. Just remember to take it with a pinch of salt because it is definitely not possible to predict with any accuracy on how bad or how good a situation could become. Sentiment could change very fast and financial crisis could also happen suddenly.
Warning signs will be there before the crisis happens but these are just guides. Understanding the 3 property bubbles and more Let’s look at the article in themalaysianreserve.com Economist and political analyst Prof Dr Hoo Ke Ping expects the economies of many countries will be dragged down by the coronavirus outbreak as China has been the biggest provider of capital that helped boost sales at property companies across the region.
He said, “When the global supply chain is affected, we will have a big negative impact. When China’s capital doesn’t come out, how or who’s to buy property? They should try to sell houses at a cheap price to raise cash for the rainy days because the rainy days are heavier and longer. Companies who went outside Malaysia must have cash. If they start borrowing, they will have problems because there is always an exception.” Please refer to article in themalaysianreserve.com
By the way, I do agree that when China ‘sneezes’ a lot of countries will start ‘coughing.’ China is after all the second largest economy and with it’s current growth, it will overtake the United States of America within the next decade, I think. As for how much the coronavirus will affect the world economy, this was a recent view. I would like to say that we should take precautions but there’s no need to panic currently.
I just hope that all these negatives will start to become neutral and then perhaps with some infrastructure announcements, the sentiment could turn positive? Yea, I have to agree that H1 2020 looks like it will need some resuscitation efforts. Happy understanding.
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