fbpx
Previous
Next

Advertisement Banner

Too early to know if property price will be falling

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

If we bought a property for RM500,000 a few years ago, we are certainly not going to sell the property for lower than RM500,000 today. UNLESS if we lost our job and we are certain that we could not find a new employment before we ran out of money. In that case, we may sell the property for below RM500,000 if the market price is RM500,000 or even lower depending on how bad the market is. My point is, for property prices to fall, there has to be a triggering point. That point has to be a crisis of sort for us, financially.

Even if we lost our job but we could find a job in a few months, we should be able to continue paying for the home and there’s no need to sell the home for a lower price. This is why property price do not fall like stock prices when sentiment suddenly turns negative and this also explains why stock prices could also rise much faster than property price too if the market suddenly becomes active like the last 7 days. Perhaps more Malaysians are taking out their Fixed Deposits (FD) to buy stocks since the return from FD is 2% or lower while the right stock with dividends will actually give higher returns. Coming back to property price, here are some views from prominent real estate personalities.

Article in themalaysianreserve.com Jones Lang Wootton ED Prem Kumar gave his views about the potential for property price to drop. He said, “It is still too early, especially since the moratorium on loans provides a buffer for a period of six months. Even though people may have lost their jobs or their employment income may be affected, the fact that they do not have to service their loans for six months provides short-term holding power.”

Malaysian Institute of Estate Agents president elect Chan Ai Cheng shared that the many cooling measures implemented by the government to control property pricing over the past many years have helped to curb speculation of the market. She said, Prices will adjust if there are owners who are in need to offload quickly. In established locations where owners have lived for many years, prices are very unlikely to fall, as firstly, they are mainly owner occupiers and secondly, they would have very much paid off most of their loans.” Please do read the full article in themalaysianreserve.com here.

What both of them said makes a lot of sense yeah. The buffer from the moratorium will last until end of September. Now, guess what happens if our normalisation could happen slightly faster than what we thought and that most people could get back to work by end of September? Besides, we must always remember that if the development is full of owner-occupiers, what’s the reason for them to sell lower? They would just continue to live there!

Plus they could smile at real estate agents who tried their luck by sending in some SMSes with ridiculous price offers. Yes, every time I received them, I replied my pricing expectation and that SMS never gets any reply. Haha. So, if we are waiting for property prices to fall, then do remember that the window of opportunity does not open forever. Happy evaluating and deciding what’s best for you.

Please LIKE kopiandproperty.com FB page or Sign Up for free to get daily updates about the property market. Else, follow me on Twitter here.

Next suggested article: Why cut rates will help the economy?

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

We love to hear from you (Facebook Comment)

LIKE us for property news update, FREE.

Previous
Next

Advertisement Banner

kopiandproperty.com

kopiandproperty.com

kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.
Previous
Next

Advertisement Banner

LIKE us for property news update, FREE.

Property investment news everyday? Subscribe for free!

An article a day, keeps updated all the way.

Join 1,394 other subscribers

Property investment news everyday?

An article a day, keeps updated all the way. Subscribe for free!

join the family

Like us for daily investment news and more

Hit the like

%d bloggers like this: