From the day I started kopiandproperty.com which was in November 2013 until today, this question has never failed to continuously pop up every time someone (usually first timer) thinks about property investment and after waiting for some time, the bad news come and they will ask this question again. “When will property prices be falling?” “Will property prices be dropping since it’s now a buyers’ market?”
Guys ah, buyers’ market is what the buyers’ say or what the owners say? If it’s what the buyers say, then I can safely tell you the owners will look at the buyer and tell them to continue saying and waiting. If that’s what the owners say, then the next question is, what is the motivation for the owner to sell at a lower price… Are they moving to another country? (nope, they cannot travel currently).
Are they selling because they lost their jobs? Iif they lose their jobs, they may have savings and they may still be able to pay their mortgage for a while. Wait a minute, they do NOT need to pay till October 2020 due to the BNM moratorium… (Earlier article here: Moratorium on Loans for 6 months So, are we now saying that we just need to wait till October 2020 and we will get properties at lower prices then? I have no idea, just to wait together with all of you.
Well, perhaps another reason, they just want to sell. For now reason, somehow. Let’s just say they just want to get rid of the property today but they have no reasons and they even wanted to sell lower than the market price. FINE. If that’s their preference, then yes, property price for this last group of people who must sell and does not mind selling lower will be sold at a lower price, that’s for sure.
Question. How many people whom we know within our circle of friends who are within this last group? Many? (wow, you are lucky). None? Then, we are not going to have access to these properties. Their (the sellers) families would be the first to know. Their close friends would be the second to know. Their real estate agent would be the third to know. Assuming after all these three groups knew about the great deal and yet still chose to do nothing, then this property listing will now become a public listing.
Can we now assume when it goes to the public, surely no one would want it. So, we will get it? Sorry yeah, if the properties happened to be within some popular areas, you will face lots of competition from many to buy that particular property. There are many Malaysians who love properties and have you ever seen what happens when there’s any clearance sale of some popular brands WITH LIMITED UNITS which were too expensive and is now being sold at 40% off? Let’s be realistic, the queue will definitely be longer than the current supermarket queue during our Movement Control Order (MCO).
Hope this answers the curiosity why even after waiting for some time, that property in a popular area at a very good price below the market somehow never appear in front of me. I know, the question will appear again in the very near future. Well, I can answer again loh. Happy researching and find good deals. Do not just wait and do nothing. Nothing happens. We do our best and lady luck may just shine on us. Cheers.
Next suggested article: When the mind is not ready for property