In one latest list for the top 10 countries for property price growth, we are seeing many new countries which were nowhere near top 10 in the same period a year ago. Yes, all these countries are still affected by COVID-19 yeah. Usually, when transactions happen during good times, property prices may go up. When transactions happen during bad times, the property prices may come down. Just note that there is no guarantee that when transaction numbers drop, the prices will also drop yeah.
Is Malaysia inside this top 10 countries for property price growth list? Sorry, Malaysian properties are not ranked for any house price growth. Remember the many predictions that our property prices will fall? Well, that did not really happen either but if we get compared to some of the countries below, we are technically nowhere near them too; price growth wise. Take a look at the countries which were not in top 10 in 2019. They have shown a tremendous jump and that may also because their numbers were really low previously. For example, Turkey is number 1 for Q1 2020 and it was 32nd in Q1 2019 and used to have just a 3.5% price growth then.
Specifically, if we look at Australia (the country where many Malaysians love to visit or even stay), the 12-month change is a positive 8.6% for Q1 2020. This was after it being ranked a lowly 56th in Q1 2019 for having a negative 5.1% for price growth previously. I have no idea how people would think about this but to me, I think it also showed again that if that property market is one which many are eyeing, prices should stabilise after a negative year. No one can predict for sure what will happen in Q1 2021. What’s more important is to understand that if it’s property, then it’s a long term play. 12 months is just too short. Cheers mate.
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