Will the property price rise significantly in 2021?
There is this prediction that property price rise significantly in 2021.
So, do you have a property for sale? Or are you waiting to buy?
What if the prediction comes true?
Let’s see the other side of property price rise first. “Property bubble”
I don’t believe property bubble burst.
Honestly, I personally don’t believe that the prediction of property bubble burst.
I would rather look at the underlying signs myself.
Even though I may not be right all the time, I also don’t value the prediction by these property professionals and even academicians in the market.
There are many reasons why property bubble may start to form and then burst.
I keep it simple with “7” reasons as it is my lucky numbers:
1. Sharp and continues rise
- Actually there is continues sharp rise for the property price during 2010 – 2014
- 2015 – 2017 already slightly price drop.
- 2018 & 2019 slightly recovered. See this numbers in NAPIC (National Property Information Centre)
2. Got no affordable choices
- Come to point of affordable choices, don’t just look at the affordable housing please. Look for something really affordable which is RM 200,000 below?
- There is still choices for properties below RM 200,000 even you want it in Penang island.
3. Non performing loan numbers
- Banks in Malaysia are listed in Bursa Malaysia. They publish their quarterly result without fail.
- If they fail to publish the reports, then problems started.
- Please take a look at their NPL (Non-Performing Loan) numbers, if we see a spike in the number, which is mean there is “high bad debts” and properties to be auctioned off.
- Below image is Malaysia Non Performing Loans Ratio for 10 years. – See loan numbers in Malaysia by CEICData.com
4. Unemployment rate
- Would you sell your property lower than the price you bought if you still with your job secured… The answer is straight “NO”
- In 2018, the unemployment rate in Malaysia was at approximately 3.36 percent. Malaysia’s unemployment is relatively low and stable at around three percent which means the population is experiencing close to full employment. (by Malaysia – unemployment rate 1998-2018 | Statista)
5. Car Sales numbers
- Property bubble burst first or car sales drop first? Think about it.
- Malaysia’s Motor Vehicles Sales recorded 52,584 units in Nov 2019, compared with 53,870 units in the previous month. Malaysia’s Motor Vehicles Sales is updated monthly, available from Jul 1994 to Nov 2019, with an averaged number of 42,202 units. The data reached an all-time high of 69,371 units in Dec 2015 and a record low of 6,872 units in Feb 1998. Malaysian Automotive Association provides monthly Motor Vehicles Sales. (See this from ceida too… )
6. Visitors to the popular malls
- Recently I don’t go to Queensbay Mall during weekend and public holiday because I need to stuck in traffic for “few minutes” before entering the mall.
- Where people still comfortable with their job secured and spending out there, will property price drop? Which come in first?
7. Business Networking Numbers
- Meet up more people with different mindset, especially those entrepreneurs work for “free” (without secured pay)
- One of these is Cheston Choo 😊can get your free session within this site.
Well there is a long storey alone just for some signs before property bubble burst…
No Property bubble burst meaning Property Price Rise significantly in 2021?
This refer to article in nst.com.my 3 minutes read:
A survey of 386 Malaysian real estate agents showed that they believe that property price will rise significantly in 2021.
This survey was conducted in November 2019 by Juwai IQI, one of the largest real estate group in SEA (South East Asia) with more than 7,000 agents.
Juwai IQI group executive director Kashif Ansari said:
“We share the positive outlook reported in the survey, within rational bounds. Agents have a very strong, positive outlook on the future of the residential real estate sector over the next 12 and 24 months,”
What if this prediction comes true?
It’s always good to compare and getting deal when the market is soft, we got the bargain power and usually get better deal.
Or else, back to 2010 – 2014, we got the phone call “off-lined” if asking for discount…
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