How to Determine If Property Prices Are Overpriced

How to know if the property is overpriced? Look at the transacted prices

Two good websites for property news

My good friend, Ken is the founder for both penangpropertytalk.com and also klpropertytalk.com. Both of our websites are the Media Partner to PropertyGuru Asia Property Awards in partnership with iProperty. He just told me one exciting new feature which he has just enabled for everyone. In my personal opinion as a property investor, it is very important to know the market price before we buy. Let’s look at the transacted prices before we decide whether to buy or not. There’s really no need to pay way higher than what the market transactions are happening.

Prices depend on the reason to buy too

Just a reminder. If that property is right next to your in-laws and you like to stay near them but not inside the same home, probably you will be willing to pay a high premium too right? My brother was willing to pay a premium for a property which was merely a few units away from our mom’s home. There’s really no other choice and decision on the price (as long as it’s not crazy) was a no-brainer.

How to use?

If we are interested with Penang property transactions, go to penangpropertytalk.com Look at the header options and look for “Actual Property Prices” Click on it.

You will come to second page and this page allows you to type in the name of the place you like to know the transactions for:

I could enter the name partially and it would already auto-complete for you. For example, I searched for Regency Heights which was a condo I used to own but has sold during the height of the property cycle.

Click into the Desaria (Regency Heights) and you will see all the transacted prices. Quite a number of transactions actually. Take a look. Do try and quickly get to know what is the price of the place you are staying today. Here’s the URL: penangpropertytalk.com

Beyond just the total, we can also know the trend too:

What about KL properties then? Simple, click on klpropertytalk.com and you will see a similar page like below:

Repeat the same steps and you will know be able to confidently decide what is a good price benchmark.

Property Investment is all about buying at the right price so that there’s a potential for faster returns

I will never say buy low price and sell at higher price because no one would ever know what’s the lowest price. They will only know 20 years later. By then, it’s not just too late but maybe we will again say the same thing. I want to wait for the lowest price before I buy. Then we wait another 20 years. Haha. Just kidding. Please quickly check, decide and start to enjoy the fruits of your investment maybe in 20 or 30 years’ time. It’s slow but it’s steady and gives high returns too. This is based on my personal experience but not everyone could have the same experience. Some may have bought too high because they never know what is a good price to buy.

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