It is not easy to sell your property today, many say. I think they are wrong. We had over 75,000 residential property transactions within H1 2020 alone. Surely many are still selling and many are still buying and banks are still lending too. However, it is NOT easy to sell at the price we wanted. Perhaps during better times, that price target would have been fine. In today’s market, that price target may be unattainable. This is why the problem of selling the property at a good price is not easy. This applies even to multi-billionaires and not just us.
Article in nst.com.my. Hong Kong property tycoon Tang Shing-bor is known as the “Shop King” for his vast holdings of retail property amassed over six decades. With rental income evaporating, he’s put a quarter of his family’s real estate portfolio — valued at about HK$75 billion ($9.7 billion) — up for sale this year, according to listings, news reports and filings tracked by Bloomberg.
Tang’s son, Stan Tang said, “When we have the need for capital and see a good opportunity, we will sell according to the situation.” He added, “Even though market sentiment is bad, property valuations haven’t decreased drastically.”
Alex Leung, a senior director at CHFT Advisory said, “You can’t sell at a good price these days,” said and Appraisal Ltd., a real estate consultancy. If the owner’s financial ability allows, they would rather hold the properties because it’s likely for them to sell at a loss now.” Please do refer to the full article here: Article in nst.com.my
Holding power remains essential
If I own 10 properties and all of these properties could not be rented out, I do believe I will be very motivated to sell and will be willing to cut my asking prices too. Of course the first step is definitely to reduce rental first so that my losses are minimised while I wait for better times to return. Once this starts to drain too much of my reserves, the next step is to sell a few of the 10 which I have profits and use these to cover the repayments first.
This is why when the owner could hold, the property prices will not budge much. Just look at the areas which is popular and everyone wants a piece of it. The prices have hardly changed even if everyone of our friends kept shouting that the market is bad or that it is now the buyers’ market. Whether it’s the owner, the banks or even the government of the day, dealing with a downtrend in property price is not a positive experience at all.
Conclusion
If you have trouble to sell your property, then do note that it’s an issue faced by more than you alone yeah. Even the super-wealthy would also have issues too. How to sell your property faster? Engage a good real estate negotiator lah. Plus read this article too: Sell your property faster? Tips here. Till then, all the best.
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