Last year was not good enough for property purchasers and aspiring house owners particularly because of the falling Ringgit. As we began the New Year, the foremost question at the forefront of everybody’s thoughts was, as to where the property market of Malaysia is heading. Well, 2016 shows up relatively promising for Malaysians hence, many would now be shaking off the ‘wait and see’ position adopted a year ago. In addition, the substantially weakened Ringgit will see numerous foreign investors using the chance of the higher exchange rate to get commercial and residential properties.
We expect that the sector of the property market will dominate 2016 as housing is an essential need that should be met. This year, the primary residential property market will be driven by affordable houses as laid out in Budget 2016. The residential property market of Kuala Lumpur will see challenges this year because of many factors that include; the fall in Ringgit, political instability, the oversupply problems, and the cooling measures of the property market.
The expatriate market is also decreasing as too many foreigners have moved to other ‘greener pastures’ in Asia.
Property dealers are encouraged to set reasonable asking prices and even be ready to sell at a loss. For purchasers, there is a variety of good deals in the market. Auction properties will see a rise and from an investment perspective, these are appealing for the following reasons;
- a) These are underestimated, translating to savings
- b) These units are completed and may just need a little renovation
- c) Should you choose to lease them out, high rental yields could be acquired
The commercial property marketing is going to be in an ideal situation this year. The popular investment choices will be retail units and hotel suites as they give a regular rental income. The biggest challenge will be securing mortgages from banks. Financing is just going to get harder, be it for first-time house purchasers or for property investors. This is because banks are right now confronting a high asset to deposit ratio on top of the declining Ringgit and higher banking costs. All these means less funding available as banks are going to tighten their reins much further to guarantee that they acquire the safest and best profits on investments.
Knowledge is a great blessing and if we use intelligence, anytime can be a good time to purchase properties. Property investment is not a short-term game and investing into long term markets ensures you a great repay.