Property market Malaysia resilient? Fundamentally, why?

If we ask some of our friends who are in the real estate industry, they may just tell you that times are hard. Buyers are taking their own sweet time in deciding. Developers are meanwhile trying to do a lot of different events to attract more crowd and thus increasing the probability of someone buying their properties. (By the way, if you are a developer and you are seeing this, you can also engage kopiandproperty.my for a guaranteed exposure too. It starts from just a few cents per impression)

Article in nst.com.my Naza TTDI Sdn Bhd deputy executive chairman and group managing director SM Faliq SM Nasimuddin opined that while the government has taken a few initiatives to boost the market, buyers continue to adopt a wait-and-see attitude when it comes to property buying decisions. He said, “They will do this to ensure that they secure the best deal for their property.”

Knight Frank Malaysia managing director Sarkunan Subramaniam said that despite market uncertainty, transit-oriented developments (TOD) will continue to do well. He said, “Wrong location and overly priced properties are the products which are currently hanging.” For 2020, Subramaniam have this advice for the developers. “They should do more market study to ensure the products are priced right so they can have better sales. As far as land is concerned, the cost has gone up which is why house prices are going up” Please do read the full Article in nst.com.my

My 2 cents opinion yeah. One major reason why the property market can remain resilient will be due to the job market yeah. If people have jobs, they could continue paying their mortgages. This will help to stabilise the property price instead of having it weakening when the owners face financial difficulties. This is why it’s very important to look at the job numbers. When the unemployment rate starts to rise, that’s when we should be worried.

Secondly, another reason why property market is still doing just fine was because many years ago, many flippers / speculators were forced to exit the market when lending requirements were enforced strictly as well as the clamping down of Developer Interest Bearing Schemes (DIBS) which was extremely popular then. These two are already very good reasons why our property market has largely remain stable despite transactions number having slowed down from 2013 till 2017. Transactions for 2018 2019? (Read here) Happy understanding.

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