Working in KL and looking at Klang Valley properties? I know these days, comments from all your KLite friends are negative and media reports are RED. I can safely say that I remain optimistic and will continue to view properties. Buying or not depends on the attractiveness of the said property versus the price that the seller is willing to consider. Sometimes, it’s just not easy when the seller is still not desperate or does not have any special circumstances. An old friend told me that his Korean friend who’s moving back to Korea has agreed to sell him a Vios and Innova at ‘super low price.’ So sometimes, luck plays an important part too. My old friend has been driving his Wira for the past 15 years. (Yes, Wira can last that long apparently…) Let’s skip negative news for a while. Now, for a dose of positive news.
According to Dun & Bradstreet (D & B) Business Optimism Index (BOI) study which is their 12th by the way, the business optimism of Malaysian firms has rebounded into the expansionary zone in Q1 2016. This is a rebound from a negative feedback Q4 of 2015. In fact, all six indicators including volume of sales, net profits, selling price, inventory level, employees and new orders are all in the positive territory. One major reason may be due to the festive season where firms are expecting good sales and greater profit margins. Of course, despite this piece of good news, D & B Malaysia said that the current weakness would continue in 2016.
I think I am considered among those who buy conservatively for Chinese New Year. This year, I have already completed my shopping for new clothes for myself. Two Padini branded polo shirts for RM59. Yes, TWO for RM59 as well as another Dapper branded polo shirt for RM29.90. The original total price for these three pieces? Close to RM160. The Dapper one, left just one colour and one size. Somehow, my body matched both. Haha. Well, if a conservative person like me is still buying new shirts, I think the expectations of a better quarter holds water. For my family, I usually spend much more and I do not set any crazy budgets like how I set for me. If I am doing this, I think many fathers are doing the same too.
When businesses are good, does it have to translate into better property transactions or prices? Actually, housing is a huge purchase and it’s a sticky one. If I have a business, even if I earn more profits but the whole world is singing a sad song continuously, I would definitely be keeping my profits in the bank instead. Demand from all those who is renting, who just got married or even looking for an upgrade is by far higher than the transaction numbers of today. They do not act in concert and under current circumstances, majority may choose not to act at all. Come on, I would not die just because I am renting a home after getting married or choosing to delay my upgrade until later. Thus, this optimism should be looked at objectively. As usual, if we found any undervalued properties, anytime is a good time to buy. Overvalued and in hotspots? Better beware bro. (BBB).
written on 5 Jan 2016
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