Every time someone asked me if the market is still okay to buy, I tell them that it should be the product and the price and not the market. In a rising market, one may be lucky because rising tide lifts all boats. However, markets do not rise forever and when the tide recedes, we will then see who’s swimming naked… So, when we bought the wrong property at the wrong price, we need to be VERY LUCKY to sell at the right time. Else, focus on the right product and the right pricing and suddenly the market is no longer an issue.
In fact someone told me that we should not be buying condo because there are too many condos in the market. Seriously, most Malaysian professionals could only afford a high-rise. Even a condo can be a premium especially since most condos are already priced above RM500,000 these days.
Everyone knows landed is a premium and will continue to be a premium due to scarcity and not necessarily due to feature superiority alone. So, it’s not an easy decision of buying a high-rise closer to the city centre or a landed much further away. (similar pricing). As for right product and right pricing, here’s someone prominent from the developers sharing a similar idea to the world.
Article in NST here. Sarena Cheah, Sunway Bhd property development division managing director said, “If you look at the headlines, outlook on all the markets are uncertained and a bit more volatile. In every market, even though there is uncertainty and it is a bit volatile, there is a segment of opportunity where we can still launch. In the end it is about the right product and right pricing.”
She added, “Last year was not that hot as well, but majority of our launches garnered very successful take-up. In every market, there is always space to play and that is why we are very bullish on executive condominium. We are going into this. We are looking at executive condos, other then goodwill, which is also a very good site. In the end it is looking for the opportunities at the right price. So when we are buying land, we will look at it at the right price and when we launch, we will look at the right pricing.” Article in NST here.
When times are slow, land becomes an important target for the future. One very good example? Today, I have real estate agent friends telling me that the market is slow and at the same time, I have real estate agent friends telling me that they are closing 1-2 deals per month for factory / land. Yes, this is a tip. Many know that slow market does not last forever but good deals are not easy to find except during slow times.
By the way, this is what Sarena said in the article too, “I do feel that there are opportunities. We are looking at them. We are cautiously exploring because markets are correcting… A good time to look for landbank is when the market is correcting.”Article in NST here. One property expert I respect said that 2019 may well be the bottom. The only issue is whether catalyst(s) could be found to propel the market or not. Frankly, I agree. That’s why I write articles such as these as well: Uncertainty never good for any market or country. We need firm direction yeah. Happy following.
Please LIKE kopiandproperty.com FB page or Sign Up for free to get daily updates about the property market. Else, follow me on Twitter here.
written on 3 Feb 2019
Next suggested article: Everybody loves hotspots? I know lah. But affordability matters too.
