What is property market recovery?
How do you define property market recovery? I personally define property market recovery as the time when property transactions show a rising trend every quarter and should be driven by first-time home owners versus most transactions by those who already own many properties. When the latter happens, let’s be savvy to the fact that landlords will soon become powerful again and rental would soon be controlled. This has happened in many property markets.
Hopefully, this dire situation does not happen in Malaysia and everyone who needs a home really do get a chance to buy a home they could afford. As for our very own property market, there is now a prediction that the outlook of the property market in the second half of 2021 is rosier versus the first half of 2021. Let’s read on about the comments from the Real Estate and Housing Developers’ Association (REHDA).
Article in thestar.com.my In a survey of 134 respondents by the Real Estate and Housing Developers’ Association (Rehda), it was revealed that 20% are optimistic about the property market and sales performance in the second half of 2021, compared with just 8% in the first half. The survey also showed that 26% are optimistic about residential sales growth in the second half of 2021, compared with just 8% in the first half.
Rehda president Datuk Soam Heng Choon said, “With more countries recovering from Covid, our trade will improve and this will boost our economy. When the broader economy recovers, the property market will, as well.” The survey also showed that developers in Kedah, Perlis, Negeri Sembilan, Pahang and Selangor planned to launch residential units within the RM250,001 to RM500,000 price range, whereas Johor, Penang and Wilayah Persekutuan aimed to offer units priced between RM500,001 and RM700,000. Please do read the comprehensive article here: Article in thestar.com.my
It’s worth nothing that this is a survey by REHDA
Property market recovery depends on many factors and not just a survey of 134 respondents. However, I do agree with Rehda president Datuk Soam that if the economy recovers, then this will help boost the sales of properties. This is because people would feel more confident with the outlook of their job and will be more willing to plan a big purchase and a home is usually the most expensive item one would ever buy in their lifetime.
COVID-19 crisis is not a financial crisis unless badly managed
We just need to remember that COVID-19 is a crisis of sentiment and not a financial crisis. Of course, if not managed well, then the crisis may turn into a financial one as well. As of now, based on the latest unemployment figures, it does point to the recovery of the economy in 2021 if compared to 2020. This is a good sign. So, if you also believe the property market will recover in second half of 2021, perhaps it’s a good time to start updating ourselves on what’s available in the property market and deciding on whether to buy or not to buy.
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