Now Is Ideal Time To Invest In Residential Properties, Say Real Estate Experts

·3-min read

With property prices stabilising at a lower level, property experts believe now is an ideal time to invest in homes.

According to CCO & Associates (KL) Sdn Bhd Executive Director Chan Wai Seen, first-time home buyers and existing homeowners who are planning to upgrade can look forward to good deals since the market is currently in favour of buyers, reported The Malaysian Reserve (TMR).

Aside from competitive pricing, buyers can also benefit from the incentives offered under the Home Ownership Campaign (HOC) as well as the competitive interest rates.

“There’s a window of opportunity to buy properties for investment purposes. Many good properties, especially those located at prime locations may not be available for sale previously may be offered for sale during this tough time as some seek to liquidate,” he told TMR.

“So, it offers opportunities for cash-rich investors to acquire good properties for capital appreciation or recurring income when the market improves.”

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And while an improvement in transactional activity was registered during the first quarter of 2021, average home prices in Kuala Lumpur dropped 3.1% from the previous year likely due to weaker demand amid increasing inventory as potential investors and buyers take on a “wait and see” stance, said Knight Frank Malaysia Deputy Managing Director Keith Ooi.

Average home prices in Penang remained resilient, growing 0.2% on the back of initiatives under the national/state HOCs and the various stimulus packages.

Keith sees domestic investors shifting from the stock market to less volatile alternative investments such as houses albeit prices are generally expected to remain flattish.

Chan concurs and expects the country’s property sector to register mixed results this year.

He expects the performance of the industrial and residential sectors to be commendable, while that of the retail and office sectors are forecasted to improve once Malaysia moves into Phase 3 or 4 of its National Recovery Plan.

Chan said property developers will likely focus on launching reasonably priced properties as they target owner-occupiers.

“The low-interest rates, incentives offered under the HOC and aggressive marketing strategies by the developers will continue to fuel the demand for residential property launches,” he said.

“These benefits may also convince prospective buyers that had been indecisive previously to make the purchase.”

With the current economic uncertainty, buyers should only acquire properties when they are financially ready, said Chan.

Otherwise, buyers would not only lose their properties via bank auctions, but their financial record within the banking system could also be affected.

Centre for Market Education Chief Executive Officer Dr Carmelo Ferlito agrees with Chan’s views, saying that investors with financial means may find the present moment as a good one, given that property prices are very stable and are actually dropping, if purged of the inflation effect.

He explained that the climate of uncertainty is making every investment decision complicated.

Nonetheless, these investments will make sense in the long run.

“As the economy proceeds via business fluctuations, by investing in difficult moments, you are well-positioned to reap good profits when the cycle turns, as it takes time for investments to produce results,” he told TMR.

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