It’s tough to obtain data, especially with regards to the property market. It is usually released to only a select group of people (usually does not include me) and these groups of people may either be powerful media houses or perhaps those who are willing to pay money to get those thick copies of reports. Depending on the purpose of their organisation, they would then repackage those data into an easy to understand information and then release to the public or their readers or subscribers for example. So, we would get some information which says that the market is in trouble because of serious oversupply but many may omit that most of the oversupply are due to units above RM500,000.
We even have reports saying that some states have the highest number of unsold units in percentage but the truth is, some other state may have a higher number when it is broken down into affordable residential. There are even reports of unsold affordable units below RM400,000 in some state but when we really do a research, that place do not have that many people earning more than RM5,000 per month. In other words, there was NO RESEARCH done before the units were built! Anyway, there’s a recent article from EdgeProp.my which quoted the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) who said that the current oversupply problem was caused by the lack of data. So, the developers may not have the best idea on where to build. In the end, they built at wrong places. (No comment on why insufficient research was done before those units were built but I agree with the lack of data; the good ones)
PEPS further stated that in fact the data has to be timely and accurate but it is not at this moment. It said, “For the local authorities, poor coordination amongst them on data of the development approval within the same neighbourhood resulted in duplication of same developments within the same neighbourhood. On the buyers/investors, most of the purchases or investments were done blindly based on herd instinct.” (Buyers, please be aware that developers may not have the best idea about their developments. Please do our own research as well before buying that half a million ringgit home or for some, close to half a million ringgit homes) It further said that other issues include even ARTIFICIAL DEMAND. (This is a very serious matter my dear buyers. Please know what you are buying and not buy because someone said it is really worth buying..) That full article has more things, do read it here.
Hopefully after some important ministry reads this article, they would send me a copy of any data they have. I can share with my readers too. After all, reading news in kopiandproperty.my is free. 🙂 Alternatively, do invite kopiandproperty.my and I am very sure I can send someone over to take some notes too. Happy hunting for data and hopefully turning them into information for the benefit of buyers. Property is something way too expensive to be buying the wrong thing. Restarting is going to take like.. forever? Happy searching.
written on 28 Nov 2017
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