IS IT TIME TO UPGRADE?
Much to consider when planning to move up the property ladder
YOU’RE not the only one planning to move up the property ladder. In the first half of 2018, upgrader buyers make up the second largest group in the primary market at 32%, compared with first-time buyers who account for 43%, according to Rehda Property Industry Survey 1H2018 and Market Outlook 2H2018/1H2019.
So, is now the right time for you to step up to a better property in terms of size, location and price?
Tech Real Estate Sdn Bhd negotiator Terence Tih said the current soft market with unsold and overhang residential units could be an opportunity for the buyer to own a quality property at a reasonable price.
“Previously, property prices in Malaysia moved like a mirage that you could never catch. Now the price growth is stagnant, and it is time for the buyer to go further into the property market,” he said.
Tih added that the high residential overhang rate in the market had suppressed prices, therefore developers have come out with various promotion packages to boost sales. Some units are even priced 10% lower compared to the peak period before 2014.
Total Realty Sdn Bhd real estate negotiator John Lee concurred that the price growth had slowed in the past three years. The majority of his client portfolio are upgraders and first-time buyers who will own and stay.
“Buyers have also noticed the current price situation. Therefore, those who are looking for a new home after marriage or planning to upsize because of the growing family are actively searching for houses,” said Lee.
On the other hand, Unity Realty Shd Bhd negotiator Peter Tan Swee Huat said the Malaysian housing market has always been in a rising trend, whereby if you don’t buy now the price will be higher in the future.
“Also, most developers started to shift their focus on township development. Based on past experience, the first few phases of the township are launched at a lower price.
“After five years of development, the vicinity will begin to mature. When all the amenities are in place, prices will soar.
“If you are an upgrader who prefers township products, it is the time for you to invest,” said Tan.