Property market expected to rebound, supported by demand for affordable housing.
Opportunities continue to exist in the property market
I believe opportunities continue to exist in the property market. I think many people agree with me because the total transactions for H1 2021 is pretty “huge” yeah. Please do take a look below. Some would point out that property transactions for H1 2021 was the second lowest when compared to years from H1 2017. I am sure they are right, statistically. However, close to 140,000 transactions is still big and does not show the market is in a deep sleep… right?
Article in nst.com.my Mah Sing founder and group managing director Tan Sri Leong Hoy Kum says that Malaysia’s property market is expected to rebound in 2022 but demand for property would be skewed towards affordable housing. Mah Sing is cautiously optimistic of the property market because of demand from the young demographic.
Mah Sing also said that it expected the pace of recovery will depend on global and domestic economic growth. It said that positive business environment could be sighted in the coming months because of the recovery of the employment for sectors including hospitality, airlines, tourism and corporate. In fact what will happen with opening of travel borders is that demand for rental market will be increasing in 2022. Please do read here for the full views of Mah Sing. Article in nst.com.my
Affordable property will always be true
Before everyone thinks affordable property means a property below RM300,000 then I need to tell everyone that my affordable property and your affordable property will be different from someone else’s affordable property. The reason is a simple one. Everyone may have a different monthly income or even have a different level of support from their loved ones or most of the time, parents.
If majority of people could afford RM400,000 property, then this is considered affordable property and if property developers build based on this demand, property transactions will continue to happen. We also need to be savvy to the fact that new properties account for just 20% of all transactions yeah. If affordable properties continue to be available in the secondary market, then the transactions will also continue to happen too.
There are still those affordable ones too
Just a quick check in any property listing site would reveal to us that choices remain aplenty for options below RM500,000. Perhaps the location and the type is just not to everyone’s liking. That’s why transactions can still happen because just because we do not like does not mean everyone else in Malaysia also dislikes them too. Happy knowing and happy choosing.
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