Note, I really do not share any enthusiasm for the property market currently. I love properties, that’s for sure. However, if I read any news saying that the expectations are that property prices are rising or even in the very near term, I would choose not to believe it until it happens. Nothing to rush anyway. Do I hope it happens? Of course. Do I think it will happen? Erm… please look at this number before you decide.
Yes, I know our number of new cases here in Malaysia has dropped to double digits for the very first time in a long time and our recovery rate meant that active cases wise, Malaysia is going to drop out of even the top 50 by end of today, hopefully. The whole world is still showing huge numbers yeah so the sentiment is not going to be positive. Come on, it’s not even possible for buyers to drop by and view the actual unit before buying… Well, following are what some analysts are saying.
Article in scmp.com John McGrath, founder and executive director of Australia-based McGrath Estate Agents says that stock markets have dived around the world but property values have remained relatively stable. He said, “Property is a stable, long-term investment that requires time, above all other considerations, to grow in value. It’s the tortoise in the race.”
Alice Tan, senior director of research and consulting at Edmund Tie said new private homes have a premium of around 40 percent over resale units last year. She said, “With ample new supply coming on-stream and demand staying stable for 2020 in the light of low interest rates, it is anticipated that the price differential between the primary and resale non-landed markets will remain at 40 to 45 per cent.”
According to Georg Chmiel, Juwai IQI executive chairman, activity on Juwai’s property portal in February exceeded the six-month average. He said, “Buyers are still motivated, and it is just practical restraints on travel that are holding them back.” It is a very comprehensive article with lots of details. Please read it here: Article in scmp.com
One should not buy without looking at the actual unit okay. For all the properties I hold currently, I do not have any hope that it will sell for a higher price than before the Movement Control Order (MCO) in this year. Well, unless of course the neighbour needs my unit specifically for his parents… However, this is really the best time to research, to view some online photos and even to secure some viewing appointments if the owner is willing to consider your offer price. Do not worry, at the moment, they would prefer to negotiate and not slamming down your phone.
Do not be too hopeful that they will simply accept any offer yeah. We are not in a financial crisis. We are in a pandemic where the sentiment is super negative currently. There’s a huge difference unless of course the economies start collapsing and leading to loss of jobs and eventually affecting the property market too. Let’s hope we hear of more good news about COVID-19 soon. Earlier article on what happens when the property market crashes. (click to read) As for the property market, well just read all the news regardless of positive or negative ones. It’s up to what you believe yeah.
Next suggested article: WOW. property market springs back to life