What’s happening to the Malaysia property market? In 2020, total residential property transactions reached close to 200,000. Actual number was 193,354 units. Chart is from Raine & Horne. We need to also remember that in 2020, there were at least 2 months in total where it was under lockdown and more weeks where there were partial lockdowns too. Thus, this number of 193,354 units is a very promising number in my personal opinion. Now let’s look at one project which sold 90% according to its developer.
Article in themalaysianreserve.com Mah Sing Group Bhd’s affordable residential development in Sentul has achieved 90% take-up rate for the three phases that the developer has launched since 2019. The fourth phase is now open for sale.
In a statement today, Mah Sing said, “Complementing the HOC, M Arisa is also one of the projects under our “Come Home 2 Mah Sing” Campaign, which offers various benefits including payment-free up to four years and also provides an alternative financing solution, HouzKEY offered by Maybank Islamic to the home buyers who need assistance.”
M Arisa sits on 3.31 acres of land in Sentul and has an estimated gross development value (GDV) of RM652 million. Please do read the article in full here: Article in themalaysianreserve.com
Buying need to be supported by WHY and not where
Sentul (in this case, M Arisa) is 8.6km away from KLCC Park in the city centre but the reason of whether to buy or not to buy should not be how close a project is to the city centre. Do we work in the city centre? That may be good reason. Do our children study in schools in the city centre? That’s another reason. Do most of our customers’ offices are in city centre? That’s a splendid reason. Never buy just because of distance of project from city centre unless there are benefits to be derived from the property.
Do we need a home now or in the future?
M Arisa is expected to be completed only in 2024. If we need a place to stay like almost immediately, then this is not going to be the right project for us. If we need a place which we could still afford and it’s pretty close to the city centre, then this may be one consideration. Do note that it’s always that choice between smaller and closer to the city centre or bigger but further away. Are you buying for a growing family? Then, size matters tremendously. Are you buying for own stay and perhaps a partner in the near future, then a smaller size will make the price lower. It can thus be a buy versus renting. Happy deciding.
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Interesting to note that number and value of transactions in 2H of 2020 exceeds 2H of 2019 for both primary and secondary market. Irrational exuberance?
Faizal, the H1 was the time when there was that fear plus 2 months of lockdowns. So naturally, some of the transactions which could have happened in H1 was pushed to H2 instead. Just my thought based on on the ground observation.