Nothing much until 2018/ 2019 and peaking in 2020 / 2021

I wrote about this before. Assuming recovery of property transactions by 2018, what should be our actions today? Wait? View? Or better start identifying some potential buys? It’s individual decision. It’s definitely nowhere near the buy, buy, buy state of course. In fact most of my friends still believe property investment is a must but when pressed for an answer of when to buy, most answered not anytime soon. The fear of prices falling continuously remains high. Negative sentiment is still prevailing.
Another prediction about the state of the property market here in Malaysia was reported by The Sun Daily. These are the two comments by AXIS REIT Managers Bhd head investments Siva Shanker. “In 2018/2019 we will see the market beginning to level out and start its upward trend again while in 2020/2021 we will see the market peaking again.” He also said something which I shared with a property developer GM just hours ago. Current sentiment is negative even if there are still buyers who can buy. Siva shared, “Although things are looking bad now, it won’t be like that forever. Everything is a cycle. 2017 will see the market finding its level and the kneejerk reaction will subside.” He was speaking at the Rahim & Co Research’s seminar entitled “The Malaysian Property Market: Opportunities amidst Uncertainties.”
Everyone should note that the prediction icon the recovery of number of transactions and not on the actual property prices. Based on what we can see from the ever increasing number of affordable homes being offered, I believe the average property prices would continue to stabilise at current levels or even fall slightly. Let’s see if I am right. However with falling prices, it also meant the size of the homes would fall too.  A friend who’s a GM of a listed developer company said, ‘with some of the sizes being offered today, it is mostly suitable for bachelors / singles. It’s definitely not built for families.’ I think he is right especially for the SOHOs but from 2002 till 2006, I was staying in an apartment of 700 sq ft with my wife, my sister and my brother-in-law. Yes, total of 4 pax with occasional visits by my brother. Somehow, when it’s necessary the willingness to accept will be higher. Just look at more advanced property markets to understand what’s happening in future. Happy following.
written on 3 Nov 2016
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