I remember that the first time my wife was able to drive out by herself to the supermarket, she bought many things. I meant, MANY things. Well, the Movement Control Order (MCO) has caused some changes in her. Fortunately, it’s just groceries. In some countries, it’s called revenge buying and it may not be groceries. Revenge Buying, what’s that really? (click to read) Yes, in brief, it’s the time when people bought luxury goods because they have not been able to buy luxury goods for a while, maybe a few weeks. Hey, what about property then? Any such situations? Actually I have seen many positive signs here in Malaysia but today let’s just look at the UK.
Article in reuters.com Property website Rightmove, which says it is used by 90% of British estate agents, reported the highest number of home sales agreed since it began tracking the data more than 10 years ago, with transactions more than 20% higher than the previous record. This was also inline with the recent figures from the Bank of England which covers June. It showed a sharp rebound for mortgages but fewer loans were approved than before the pandemic.
Rightmove director Miles Shipside said, “Rather than just a release of existing pent-up demand due to the suspension of the housing market during lockdown, there’s an added layer of additional demand due to people’s changed housing priorities after the experience of lockdown.” Do read the comprehensive article here if the UK property market is your next move. Article in reuters.com
Okay, so this happened in the UK and a private entity has claimed that the transaction numbers are highest ever since its tracking more than 10 years ago. Meanwhile the number of mortgage applications going up is definitely a good sign but then again, this may just be a pent-up demand. Few months where most people could not complete their property transactions and suddenly now all of these deals are in process. Just need to wait a few more months to see if this is really continuing.
Meanwhile, here in Malaysia, the numbers will take a little more time but if we really want, just visit 10 sales galleries during the weekend and we would already have a generally good idea about what’s really happening. By the way, this is how opportunities are found versus waiting until everything falls in place. By then, those best offers may have been replaced with okay offers. Wait a bit more and it may just be overpriced offers. Of course not so soon yeah. Sentiment remains muted at the moment. Cheers.
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