Hence, interested individuals should purchase them based on needs and financial ability, industry stakeholders say

by S BIRRUNTHA / pic by TMR FILE

PROPERTY buyers and investors are advised to purchase property based on their personal needs and financial ability, as property prices are not expected to go down any time soon.

CCO & Associates (KL) Sdn Bhd ED Chan Wai Seen said it is the right time to buy properties for “own occupation” largely due to the affordable pricing and incentives offered by the developers.

“Notwithstanding this, buyers should be financially ready to pay the instalment now and be ready for the instalment amount to increase by up to 20%.

“If not, it is not advisable to purchase properties right now,” he told The Malaysian Reserve recently.

Chan added that amid the market uncertainty, potential purchasers and investors will continue to adopt a “wait and see” approach moving forward.

Echoing similar views, the Malaysia Institute of Estate Agents (MIEA) has recently noted that the fundamental rule in investing in property is that one should never purchase a property based on other people’s opinion, the purchase should always be made based on their needs and financial capability.

President Chan Ai Cheng said potential purchasers should consider renting if they are not sure of their job and financial stability.

She added that property prices have adjusted due to the pandemic and barring any unforeseen circumstances, MIEA doesn’t envisage the prices going down further.

She also said that building materials cost index has gone up by 0.3% to 3.1%, pushing up the cost of construction and coupled with the shortage of labour, would pressure the increase of prices.

“Our members are already experiencing this in the landed residential homes sector. It is a known fact that property prices go up and fluctuate over periods of time, and it is now at one of its lowest points.

“It is our view that it’s an opportune moment to purchase if you have the need and ability to do so. The longer you wait the higher the price will be, then it will be out of reach for many,” she noted in a statement.

Ai Cheng further explained that the economic condition is yet another critical factor.

She emphasised that the Malaysian economy is expected to strengthen between 5.5% and 6.5% as per the Economic Report 2022, and the Finance Ministry have said this expansion will be supported by significant improvement in global trade, stabilised commodity prices, containment of the pandemic issue, and gradual improvement in consumer and business sentiments.

“This gives confidence to the market and we foresee that many new purchasers will enter the market as they have waited for two years now, many have saved money for this purpose and most importantly they have a need for a roof over their head.

“It is said there is never a good or bad time to purchase a property, all it takes is having sufficient funds to lay the initial capital, secure a loan and have the heart and commitment to see through the payments,” she said.

Additionally, Ai Cheng also highlighted that with data so readily available, buyers and investors are advised to get the specifics and details on their dream home.

She said when it comes to purchasing a property, it is no longer generic data or general knowledge, but purchasers must get down to the specific data by property type, or by the location that they plan to purchase to determine the right price to enter the market.

“The reason being while some locations are experiencing price adjustments, others are steadily rising in value and that goes to the type of property as well.

“Always let data guide your decisions,” she noted.

Meanwhile, IBN Corp Ltd recently stated that international buyers are still attracted to buying property in Malaysia, especially in Kuala Lumpur (KL), Genting Highlands and Sabah.

Director Megat Khalil Izzuddin Shah said Malaysia remains one of the most ideal countries for retirement due to its excellent weather and living environment, adding that international investors’ interest in property are mainly concentrated in the centre of KL and in tourism-related projects.

In addition, he said investors like the freehold options and the price in exchange for the quality of lifestyle compared to what they can get back in their home country such as China, Hong Kong, Singapore and Japan.

He added that some customers from Singapore are starting to come back to Malaysia to shop for properties, and eventually those from East Asia, as well as Europe and America will possibly return in the second half of this year.