I do not subscribe to the reasoning that more supply means lower prices. Do not agree? Look at the price of iPhones a few years ago versus the price today. There are much higher number of smartphone brands today versus previously. Now look at the unsold properties in Malaysia. It’s also growing which meant that supply is actually unsold… or demand is just not forthcoming? Anyway, House Price Index continued to show a positive increase even if the number is now very small versus those good years. Source: housingwatch.my
Thus, perhaps we should now read the following news with some objectivity too. More supply will definitely mean a higher competition and choices, thus the prices would have be very competitive too. Perhaps this will force the developers to be more prudent with their offerings where size, location and quality is concerned. In this case, perhaps the prices will be lower when it’s launched.
Article in nst.com.my Chief Minister Datuk Seri Mohd Shafie Apdal says that he hopes that with the implementation of 24-hour approval to developers, the houses and property price in the state will become more affordable. Shafie explained that following the replacement of the Town and Country Planning Central Board with State Planning Council, developer could now expedite their property development.
He said, “The launching of e-Planning Permission (EPP) website, was planned from the beginning, to enable all development projects to be approved (fast) compared to the Central Board that might take as long as 10 years. If we delay the approval, in 10 years the price of all the raw materials such as cement, sand and others will go up. Secondly, there will be projects that are abandoned as there is no proper planning.” Please do read the article in full here: Article in nst.com.my
Please do note that the Chief Minister of Sabah himself said ‘he hopes’ yeah. He did not say it will be dropping. He also gave a few reasons why it should be lower which makes sense too. However, just expecting supply alone to push prices down is a little far-fetched yeah. This is the reason why it’s very important to read articles in full and not just the title. Remember this recent article where someone thought the property price threshold for foreigners are now reduced to RM500,000? (read here)
As an owner of properties in the state of Sabah, (yes, I have more than 1), I will definitely prefer for property prices to rise very moderately. Slowly following half of the inflation rate is perfectly fine for me too! It’s for the long term, no intention to become an instant millionaire from properties yeah. Happy reading and let’s wish Sabah the best for 2020. Its tourism industry has been badly affected by the Covid-19 (coronavirus).
As for all other readers who has never visited Sabah, please do visit this beautiful state. As for those who are still sharing about how it being unsafe etc, SHAME on you for refusing to read more. By the way, I visit Sabah at least 3 times a year for the last 22 years. That’s already 66 trips. I have even climbed the Mount Kinabalu and conquered it twice. Haha. I definitely know more than anyone who has not visited it yet. Cheers.
Next suggested article: Health is Wealth. Go climb Mount Kinabalu