When someone does not believe in property investment, please let them be okay. There’s really no need to debate and please just advise them to invest their money whether or not it’s property. if they spent it, then that’s really a road towards financial ruin.
As for those who still think that property investment is something they like to start their journey on, let’s just look at numbers today. Plus some explanations on what the charts are saying. Yes, it may be different from what your friends are saying. The property numbers for Q1 2021.
Property transactions are still happening.
In fact, it seems to have built up speed BUT… then the lockdown returned yeah. Q1 2021 showed that the total transactions are around 10% higher versus Q1 2020.
Residential units comprise 65% of all transactions. This is a total of 52,273 units. Yes, this number showed that people are buying and banks are lending. Majority of all these homes could not have been bought with cash.
Completion has slowed down but more developments are starting
Take a look at the completion and I think we could see that the total units completed in Q1 2021 has dropped to 15k from nearly 27k in Q4 2020. Just need to note that this Q1 2021 should be compared to a similar quarter which is Q1 2020 yeah.
The fact that more developments are starting also showed that people are buying but perhaps the type of projects they buy is now different. Perhaps more affordable ones too. Meanwhile, the future is less clear. Developers should think twice about launching more new projects if the current one is still unsold.
The three states with the most overhang are Penang, Selangor and Johor. However, if we look at the number of units versus the population, I think Selangor’s overhang issue is becoming less of an issue moving forward. Do note that Klang Valley will be that magnet to all the graduates who may now still be in their home state. Let’s see if I am right by end of 2021, when things are clearer.
It’s true. Property prices are falling if we look at quarter to quarter basis. Just remember yeah, that Index continue to say 218.9%, 196.4%, 176.4% and even 168.9% for terraced, high-rise, semi-detached and detached respectively. What this tells us is that property investment is for long term and on a long term basis, prices will rise. Period.
As for the rest of the charts, here is the file for your reference if you want to view the full document from NAPIC (JPPH)
Happy digesting and happy investing.
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