A few friends have asked what I believe will happen to the Kuala Lumpur property market in 2018. Seriously would anyone know? Haha. Okay, if we were to google, the predictions are on opposite ends. On one end, there are predictions that 2018 will be a year of recovery. In other words, if you believe this prediction, it may be good to buy from now till 2017 when the owners are much more willing to negotiate and not in 2018 when it is highly unlikely that owners would even want to negotiate with you. If you don’t want, some other people would buy. Even when it comes to new launches, the prices are becoming ever more attractive. It seems that it’s getting cheaper by the day! Okay, the developers are much more creative but hey, during good times, all these extras would disappear!
Before we open our cheque books to start buying, let’s look at a few predictions within Malaysia and around the world. Malaysia may face recession in 2018. This was one latest prediction by an economist. The US property market may face a collapse in 2018, according to Richard Barkham, Global Chief Economist at leading commercial agency, CBRE. The reasons include more debt issues as well as excessive debt in the banks building up. Closer to home, Lindsay David, founder of LF Economics said this for the property market in Australia, “It’s going to be a disaster. By the end of 2017 the housing market will crash, and at least one of the big four banks will either be bailed out, go bust or be nationalised.” London’s property market may collapse in 2017 according to Lancaster University’s UK Housing Market Observatory report. It said, “If London house prices keep growing at the current pace of 2.75% every quarter year, there will be a full-blown bubble in early 2017”
Okay, which one should we believe? Anyway, if property bubble were to burst in countries outside Malaysia, would it affect us at all? Well, when the whole world is feeling negative, I am not sure how many of us could feel positive enough to buy, buy and buy property? Just look at BREXIT. Actual exit if it does happen is 2 years away. However Ringgit has already been hit by a surging US$. Read here: Yes, it’s officially Brexit instead of Bremain What’s my personal belief? Well, I am in the process of applying for a loan for a new property. So yes, I remain confident of my personal decision. Yes, if crisis do hit, I hope the recovery can be within 12 – 24 months. All the best to me and buyers who still think ‘can buy lah, just have to be a bit more careful.’
written on 25 June 2016
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