Property Investment 101: Dropping median home prices… Sell or Buy?

Property Investment 101: Dropping median home prices… Sell or Buy?

As I browse through the latest summary of median house price in Malaysia from 2010 – Q1 2024, I remembered someone told me many years ago that property prices are dropping here in Malaysia. Thus, it’s best not to buy. I asked why he said so. He said that he was unable to sell his property and that the property price for his property was lower than even the price he bought!

When I told him that even the condo I bought in 2018 (which is considered not an amazing time) has also increased in price from RM338,000 to RM420,000. He mentioned that I was lucky. I just smiled and ended the conversation.

Dear all, if we refused to buy at the right price and simply buy at whatever price, never blame the market yeah. Blame ourselves. As for luck, well it happens most of the time to the ones who are well prepared and more often than not, knowledgeable.

What’s happening to the whole property market when it comes to transactions?

One sentence: The Median House Price for Q1 2024 is lower than 2023!

SUMMARY OF MEDIAN HOUSE PRICE IN MALAYSIA 2010 – Q1 2024

Before we start to think that the current property we own is now going to decrease in price, please do look further down the years too yeah. There has been many instances where the median property price is actually lower than the year before!

In 2017, the median property price went up to RM303,000 and this went continued to be below this peak from 2018 all the way to 2020.

Now, what is median price? Here is one such definition.

“The median sales price is the price where half of the listed prices are higher and the other half are lower than it. For example, if you have 15 home prices, the median price would be the price where seven prices are above it and seven are below it. Finding the median price is straightforward.” Source: indeed.com

This means that there are half transactions where the prices are LOWER and there is another half where the prices are HIGHER and this median price happened to be right in the middle. If there are a lot more lower priced transactions, for example more lower priced apartments, then the median price shifts lower. If there are a lot more transactions for higher priced condo or landed units, then the median price shifts upwards.

It is very obvious these days that the transactions for the lower priced properties are increasing versus just the typically higher priced ones yeah.

Stay knowledgeable of what’s really happening

Fundamentally, this median price does not determine the current home price. It gives an idea of where the market is moving towards. More lower priced transactions means a lower median price and more higher priced transactions meant a higher median price. individually, some home prices continue to inch upwards while some continue to be shunned by many people who has to decrease their asking price if they want to sell.

Simple fact and that’s all the knowledge for today!

Please share with people you care.

Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). 

Alternatively, Follow me on Telegram here.

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.

Else, follow me on Twitter here.