Okay, good news and bad news. Good news for people with ready downpayment for a home. Bad news for owners of properties in places where there’s an oversupply because demand is not big enough. Property prices will continue to decline in 2019 says PropertyGuru Malaysia country manager Sheldon Fernandez. Article in TheMalaysianReserve here. He said, “Expect the downward trend to persist in the 1H19, but there is a chance of a market recovery — post third quarter of 2019 (3Q19) or 4Q19.” He added, “The initial optimism expressed post the 14th General Election is beginning to wear off as buyers are adopting a more cautious approach.”
He also shared that The PropertyGuru Market Index in 3Q18 revealed that asking prices by real estate developers and individual owners nationwide had dipped by 2.3% year-on-year and 2.3% quarter-on-quarter. The downward trend persisted despite the overall improved consumer sentiment of 42% with 53% of Malaysians wishing to buy a home by the end of 2018. Nevertheless this is not necessarily a negative development. He said that the present market conditions have compelled developers and private sellers to be more competitive in terms of quality, design ideas, ownership packages, as well as pricing. His other comments are here: Article in TheMalaysianReserve here.
We should note that wishing to buy a home versus willing to do something serious about it are two different things. The request for the government to do more in providing affordable homes must also be followed with one’s usual spending habits. There’s just too many things to buy these days, right? Here’s an earlier article about choices. Beyond just the focus on cheaper homes in areas we could not afford, there’s also the potential for areas we could afford. It’s usually a case of WHY versus WHERE when it comes to property purchase. In case everyone has forgotten, we used to have many MINING lands. For example Puchong and Sunway. We also used to have ‘forests’ in faraway areas like Mutiara Damansara or even that premium address called Desa Parkcity which is actually in Kepong. When we focus on WHY, we will buy the correct property for what we need. That’s called due diligence combined with money intelligence. Cheers.
written on 24 Dec 2018
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