Last year, during the The Star property fair in Penang there were around 39 developers / exhibitors participating. Actually, in terms of numbers this has gone down. I remembered the last one that I went, there were easily 50 over booths including my former company which had a prominent one too. Perhaps this reflects the current slowdown status for the property market. It may also be because there has been a property fair, be it small or big by the many organisers and even other newspapers. Many developers also love to pay the few hundred Ringgit for a desk and two chairs in Tesco / Giant and have staffs there for the whole day distributing leaflets.
OR, is this also caused by the many Online sites? For example, propertyguru.com.my, property.com.my or even Penang specialised sites such as penangpropertytalk.com and apartment-penang.com? If you were to refer to some stats available, these sites have a huge following and it is already extremely updated. There were even listings for property developments which has not been launched yet! 🙂 Yes, I am serious. Amidst all these, there are also the many property buyers’ clubs mushrooming as well as the many seminars / workshops which are also attracting participants in the hundreds?
The market is really alive. Look at the above examples. It has yet to include the many property blogs, be they independent ones or with lots of advertisements in the blogs. These days, everyone I know talks about property but do not worry, majority of those talking to me either owns one or owns none. Very few owns more than one. I think the major reason for this is due to the current bearish sentiment. Everyone is a little worried about the sustainability of the property market, some even believe that the market is due for a big correction. I think there are really some overpriced properties, so just be careful and not buy because everyone of your friends are buying.
In actual transaction numbers, the property market is slowing down. In terms of share market, it is getting a little pricey when compared to the region. In terms of your Fixed Deposit Rate, it has adjusted a little higher. In terms of unemployment rate, it is at 2.8%. Sorry, I can’t make the decision for you. First thing to do? Since The Star property fair is happening in Penang this weekend, do visit and take a look. Happy investing.
written on 26 July 2014
Next suggested article: Why you should visit property fairs
Property market is slowing. Agree. However, there are today MORE interested people.
Comments
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Interest also no use because unaffordable to Penang market. So everyone just doing information gathering and will buy when the price crash.
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Hi Racistmalaysian,
Initially, I had the same opinion as you, the market is likely to crash, after a while of consideration, my conclusion is.. the crash won’t happen easily unless it is really a major speculation like 2008 happened in US, another one was in Dubai. the only situation would cause the property market to crash is… another around of global crisis.
As we noticed, there are series of cooling measure in place, I certainly think that it is the lesson learned from 2008 crisis in US, as many countries encountered the same in past history, in order to mitigate the debt is going to higher and higher, countries like SGP, MYS and so on had started putting on some prevention. therefore, major crash in property market is unlikely to happen unless the major global crisis arises which may led to high unemployment.
As the current situation with cooling measure provided with no major global crisis, the property is likely to stagnant or minor increase due to GST and inflation. Or there may be 5%-10% reduction due to oversupply of property. I don’t see there would be any major as of now, my 2cents.-
I agree with Ang’s views. 10% is possible for a prolonged slowdown. Anything lower, I think it’s a crisis already.
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