Actually what do people mean when they say property market will recover faster? Do they mean the property transactions will be moving up? When they say moving up, do they say every month it gets higher and this is considered as a recovery even when the numbers this year is still lower than last year? Or must the transactions be higher month by month and also higher than the year before? Or perhaps it is not about transactions because actually higher or lower transactions do not benefit buyer or the seller. It’s just the market.
It’s about property price?
So if it is about property price, does it mean the average property prices are now increasing? Or average prices can stay the same but the median property prices are increasing? If it is increasing by 0.1%, is this recovery? What is the smallest percentage increase in order for it to be considered a recovery then? 3%? Based on what? higher than Fixed Deposit rate? 6%? So that it’s higher than typical dividend stock today? Perhaps they are not talking about price. Maybe it’s just the sentiment?
It’s about sentiment?
If it’s sentiment, how do we know? Based on a large scale sentiment survey? Well, for those surveys, it is usually positive when the survey was done with industry stakeholders. It is also usually positive when the survey is done among people who’s interested with property. However, it does not tell much because the ones who are not within the industry or is not reading about property will not be participating in such a survey.
It’s about survey results?
Maybe it’s not a survey? Maybe it’s just the time when your friends are positive about property market and everyone is telling you they have just placed a deposit for a property? Maybe it’s the time when you feel the time is right to jump into the property market because EVERYONE you know is so positive about it. Plus the fact that you feel positive about it meant the social media will feed you even more of those news making you even more positive! Haha.
Stay focused about the property you are about to buy
There seems to be no specific answer, right? I hope you understand my point. Whether property market will recover faster or it will take a long time more to recover is not our concern. Our concern is whether we are paying TOO HIGH for a property… or DID NOT do enough due diligence and preferred to believe the real estate agent who is aiming to get the RM20,000 commission once we become a buyer.
Yes, keep asking too. “The property market will recover faster?” to every property speaker you happened to listen to. See what they say as well. 🙂 Do not believe the answers totally. Do our own research and due diligence. A 30% discount may still mean that property price is higher than median transacted price per sf. That’s not a good sign no matter how much you love the property.
Till then, if you noticed, the prediction about property will recover faster also does not have time lines… And if they give you the time lines, it will be something like ‘next year’ or ‘within the next 12-18 months’ or something like that. Cheers.
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