Purchasing a first home may not be a walk in the park. As home prices keep on soaring, and at times declining, one may ask, “Should I buy now, or wait a little longer?”
Recently, EdgeProp.my asked property consultants and agents about market prospects and outlook. The outcome shows that “all agreed that housing prices are at the bottom now and house prices will only go up in future.”
Based on transaction data, the market value is on a downward trend in from 2017 to 2018 while transaction volume is on the rise. As demand grows, home prices usually will follow suit. Encouraged by current government policies and efforts in improving the economy, the property market is expected to recover.
Most market experts share the same optimistic outlook for the residential property market. According to Knight Frank Malaysia, Malaysia’s property market is showing signs of bottoming out and is poised to gather further momentum moving into the second half of 2019, as reported in Malay Mail.
The market value may go up as transaction volume keep on rising steadily, showing strong demand.
Axis REIT Managers Bhd head of investment Siva Shanker, shares positive views of the market as he expects the market to improve further by end-2019 and that we are probably at the bottom of the u-curve, he told EdgeProp.
Megaharta Real Estate Sdn Bhd real estate negotiator Joseph Teh also told the paper that based on the 10- to 12-year real estate cycle, a peak will appear after a slump. “This means that [the market] may rebound any time after a reconciliation period. We are looking forward to a bullish market in about three years,” he predicts.
Henry Butcher Malaysia COO Tang Chee Meng said he expects property prices to increase within a 5% to 10% range annually in future but for now, he adds, price movements will be “flattish”. He adds that a down market such as this is a good opportunity for investors to build their portfolio while for normal homebuyers, a good time to buy will be when there are signs of market recovery.
Home Ownership Campaign (HOC) 2019 extended till 31 December 2019
Another good reason to buy your first home this year is because of HOC 2019, where developers are offering minimum 10% discount with added rebates and incentives. Some are offering more to clear their stocks.
On top of that, stamp duty exemption on the Instrument of Transfer and Instrument of Loan Agreement. Full exemption is given for properties priced below RM1 million for the latter and full exemption for houses priced up to RM2.5 million for loan agreement.
HOC 2019 is expected to push residential transaction volume up in 2019 and bring down the average transaction price. As overhang is reduced and the market recovering, home prices may continue to rise in the future.
This gives buyers more reasons to take up their first home this year, as the HOC is already extended from its original due date in June 2019 and to avoid losses if buyers wait any longer.
Tang suggests that the important principle to follow is to choose the right location where prices are less affected in a downturn and a developer with good track record. Axis REIT’s Siva adds “People need to get used to living further away; city centre and suburbs are too expensive.”
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