There are developers who wants to sell everything they have launched a few years ago by offering very attractive pricing and packages. Do remember that it’s worth understanding that we better understand what we need instead of being attracted by how much is the ‘discount’ or ‘savings’ being offered. Check out the prices for nearby properties to have some ideas too. This is one such site worth dropping by: brickz.my Then, there are also developers who continue to launch new projects and also to set some good sales targets too.
Article in edgeprop.my here. Paramount Corporation Bhd is planning to launch some RM1.2 billion worth of property projects in 2020 while maintaining its sales target at RM1 billion. Its CEO Jeffrey Chew said that the sales will be driven by demand from the formation of new households and owners who are looking to upgrade their home. He shared that between 2011 to 2020, the growth rate of households is estimated at 2.9% per year. He said, “The number of households in the country is still growing and we see people are starting to buy [property] now after holding back their purchase in the last three years.”
He shared that the pricing for new launches this year will fall between the range of RM450 to RM500 per sq ft or between the price range of RM300,000 to RM600,000 per unit. He says that these segments would enjoy better demand than the units priced between RM700,000 to RM800,000 currently. He said, “We will still keep on building as we’re in a good position where we have healthy cash flow to use for operation and land acquisition.” Please refer to full article here: Article in edgeprop.my here.
A few key things that we could learn from Chew’s sharing. The formation of households will mean demand continue to happen. ( I was ADVISED to get a home before I could get married by my father-in-law). The right pricing is essential and this must depend on what the people could afford. This is also something which developers are now paying a lot of attention too. Launching something above what people could afford is a no-no, not just today but also tomorrow.
Last but not least, developers are still able to continue building if they could sold a lot of their earlier launches. It does not mean that if the developers have unsold units, they will stop all new launches. Stopping new launches will happen if a developer is really in a cash-tight position. That’s not a good sign yeah. Happy reading and learning from all these developers when they share their findings with the public. Yes, I will write it down so that all of us get to know about it too.
Please LIKE kopiandproperty.com FB page or Sign Up for free to get daily updates about the property market. Else, follow me on Twitter here.
Next suggested article: Property market from property developers’results
