Property market update? Just numbers for decisions.
Okay, what’s up and what’s down with the property market?
Many people say the property market is now looking ‘bad.’ I usually asked why they say so. The answer is usually that they heard about people unable to sell their place or that the selling price is down. When asked further if they are buying any property since the price is down, the usual answer is No. Haha.
At the same time, a few of my friends posted in the Facebook about their success as a real estate negotiator; winning awards three years in a row etc. Let me understand this. The only way they can get some award(s) is because they have sold many properties. Does this also tell us that they have sold many properties which is below market price then? I have no answer. 😛 However, we look at some numbers from official stats from National Property Information Centre (NAPIC) which is Ministry of Finance’s valuation and property services department
Increase in overnight policy rate (OPR) has affected the propery market.
Overall property transactions ONLY totalled 89,000. (Yea, something like 89,000 buyers buying a property within 3 months…)
89,000 transactions in 1Q2023 is a fall of 5.7% year-on-year. In other words, it was close to 84,000 transactions previously. (Yes, 84,000 buyers and sellers exchanging property and money…)
The 1Q 2023 numbers were HIGHER than pre-pandemic years. (Yes, higher than even before Covid arrived…)
Concurrently, total transaction value in the period rose 0.8% y-o-y to RM42.31 billion.
Do read more here: Article in theedgeprop.my
These are what the numbers tell us
Number of transactions, if we assume it’s just the same number every quarter would be 89,000 x 4 = 356,000 transactions… This is definitely not a small number yeah.
Falling is just a comparison. Total transactions today versus pre-pandemic is also a comparison. Any comparison would mean we need to understand what’s really happening versus just listening to the ‘falling’ word or worst still, the ‘increasing’ word and then rushed to buy and bought the wrong one.
The total transaction numbers declining and the total transactions value increasing means that the total prices on average is moving upwards too. This is also one reason some people may have earned some profits from their property investments too.
Bad or good, just ask more questions and learn
By the way, if someone is saying property investment is great, ask them many more questions yeah. Why they say so. Where they buy. What they buy. What price they buy. What price they sold. etc etc etc. Please ensure they are not saying property investment is great because they want your money! 🙂
At the same time, if someone is saying property investment is bad, ask them many more questions. Why they say so. Where they buy. What they buy. What price they buy. What price they sold etc etc etc. All these questions help you to determine if they really know or they just simply buy. If there are ‘simply buy’ and can earn profits, there are no poor people today. Stay realistic okay.
Happy deciding.
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Next suggested article: When rates rise, property transactions drop, right?
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