Thinking about property? We can read some conclusions and expert views from these forum panelists in the recently concluded PropertyGuru 2017 Property Outlook Report & Forum. They include The forum panelists are quite impressive. They include Dato’ Charon Mokhzani, Managing Director of Khazanah Research Institute (KRI), Datuk Seri FD Iskandar, President of the Real Estate and Housing Developers’ Association Malaysia (REHDA), Prem Kumar, Executive Director of Jones Lang Wootton, Gary Chua, CEO of SMART Financing and Chris Tan, Managing Partner of CHUR Associates. Some of the key findings, as per the press release include:
– Continued market turbulence amidst pricing unaffordability, rising living costs and lack of financing as main issues. Generation Y likely most impacted.”
– Transit Oriented Developments (TOD) will be key factor for property development moving forward.” (Yes, I have written about this a few times. One of it here: 31 new MrT stations; look out for more choices)
– The market continues to have its bright spots with the rental market expected to remain strong – fuelled by a growing pool of young, aspiring first-time homebuyers who in deferring their home purchase decision, will look to the rental market to provide a roof over their heads while continuing to save for their future home.” (My earlier article: Demographics is a great way to look at property investments.)
– Certain locations known for their higher-end rental properties may see rentals reduced due to external factors i.e. an exodus of expats due to the current slump in the oil and gas industry which, has led to more vacant units in the city centre. (Do note though that should rentals start reducing across the whole market, the prices would start its downward trend too. My earlier article: When rental falls, so too would property price)
– In developing homes that meet the budget of first-time homebuyers and Generation Y, developers are likely to continue building more SOHO / studio units in the city centre and other urban centres to keep prices below or within the RM300,000 – RM500,000 range. Unit sizes will range from 450sqft – 850sqft. (My personal views here: Property investment? Keep learning, even if opinions differ
– The first MRT line poised to operate by end-2016 and homes within a 1km radius of MRT stations are expected to benefit from price appreciation and improved rental yields. The 51km Sungai Buloh-Kajang MRT line will connect the North and South of Greater KL and is expected to ferry 400,000 passengers daily. (The MRT line will actually start on 16th, as reported earlier. Read here: MRT Sungai Buloh – Kajang starts on 16th Dec 2016. Fares from RM1.10
Feeling more confident or feeling less confident? Regardless of the media or the industry experts, keep reading and following. It’s however not enough to just keep listening without any appropriate actions yeah. If we believe prices would drop further, it’s about time we start a list of all the homes we may buy and the target prices. If we believe the prices at the current level is always lowest, then it’s time we view more units and start negotiating. Of course, if we think better not touch property investment, don’t just keep the money and do nothing. Any Tom,Dick and Harry would tell you about inflation which will take away most of our wealth if the returns from what we have is lower than our personal inflation rate. Happy following.
written on 2 Dec 2016
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