Of bubbles and hotspots
THERE are mini hotspots appearing all over the country, especially in places surrounding the Klang Valley such as Cyberjaya, Seri Kembangan, Kajang, Bangi, Semenyih, Nilai, Sepang, Hartamas and Bangsar Southcity.
If you analyse this carefully, you will notice that these places are oriented towards the south, towards Iskandar, which is a mere 300km away.
This is in line with what experts in the property field have been saying all along, that Iskandar Malaysia will dictate property prices and the hotspots that will crop up for the next few years.
However, investors should be cautious about jumping onto these mini hotspots because they could be contributing to the building of property bubbles.
The thing is, these hotspots are very fragile and the bursting of a bubble in one of these areas will cause a domino effect and result in a giant explosion.
There are two main reasons for these and they have very little to do with recent policies implemented by the Government to cool the property market.
Oversupply of properties
The many new developments that were launched three years ago have been completed or are nearing completion.
While there will be demand in the secondary market, investors have to bear in mind that the majority of buyers will buy to live in and not to re-sell or let the properties out.
This means once these properties are occupied, there will not likely be any more demand after that, unless there are new economic developments near the area such as new job opportunities.
Investors have to keep in mind that the spate of new property launches has been ongoing with many new launches still in the works.
In the next five years, an oversupply of properties, both residential and commercial in these areas, are expected.
New generation, new lifestyle
People are putting off marriage and starting a family. Some don’t even plan on starting a family.
This means they will not want or need new houses to live in for a few more years or at all.
So, in all probability, until the next generation comes of age and is able to buy or need property to live in, experts expect property prices to level from now on as opposed to the steep climb it has been experiencing for the past 10 years.
As such, what can property investors do to make sure they continue to make money from their investments? Sell as soon as possible? Hold and wait for prices to go up? This dilemma and many others are what the Property Outlook Conference 2014 will address.
The line-up of speakers for the Property Outlook Conference 2014 includes property gurus as well as the heads of organisations that have spearheaded the growth of the property market today.
The key to making profitable investments is being able to get the right information at the earliest opportunity and taking action on that information, changing and adapting the investment strategy to suit the situation.
The conference hopes to give property investors the latest and most authentic information on the property market today in face of the many changes to the rules of the game.
Highlights of Property Outlook Conference 2014
* Budget 2014 strikes. What is the big impact on the property market?
* Overview of the Malaysia economy and property market * Sub-sale market performance and outlook * Commercial market performance and outlook * Malaysia property outlook for each region * Are there any mini property bubbles forming in hotspot like Cyberjaya, Iskandar Johor and other areas? * How to become a millionaire landlord? * Changing trends in the retail market
Investors who are serious about being successful in property investment should attend the conference so they can prepare themselves and create long-term investment strategies.
The two-day conference will be held on Jan 11 and 12, 2014, at Hotel Istana, Kuala Lumpur.
For The Star readers, you are entitled to a very special promotion.
The Property Outlook Conference 2014 organised by Wealth Mastery Academy provides a better perspective on the property market.