We have seen perhaps the worst performance in property market in 2015 – 2016 with property investors and property owners everywhere gritting their teeth through this gloomy period as they bore the brunt of the impact from the poorly performing market. However, despite this rough prediction, a few recent studies stated that more opportunities will be discovered in the future as infrastructure and various transportation facilities are undergoing serious development, mainly in more developed areas as newer properties are often located further from the city center.
As a result, experts are predicting that the property market would start to stabilize from 2017 onward, which could eventually lead to the next property boom. I bet this would bring a breath of relief to many property players, who can now expect things to turn out for the better in 2018 – 2020.
So what exactly will happen in 2017, which is just less than 30 days away? We’ll keep you in suspense. Read on to find out!
From 2018 – 2020
During the earlier years of 2009 – 2011, residential property values have seen a sudden increase. Based on this observation, it has been deduced by many that the slump in property prices in 2015 – 2016 was rather expected, as the property market begin the process of correcting itself in response to the previous price spike.
Once the market has stabilised and prices continue to rise again after the correction period, it is predicted that people would start showing interest again for new buildings with competitive pricing in the 2018 – 2020 period. This would pressure owners of old buildings to either renovate or refurbish their properties in order to meet the expectations of the changing market.
Another important factor that would play a role in determining the next boom for the property market in Malaysia is the fact that many people have started purchasing directly from the property developers to save cost while enabling easier financing. As this makes property slightly cheaper, developers are expected to be able to attract more buyers for their properties, which would result in investors being more willing to invest into their projects.
Presently, Malaysia is already known as a great place to settle after retirement. Many retirees from overseas are starting to put Malaysia up in their list of a perfect place for retirement, which will definitely trigger a raise in land values in the foreseeable future.
The improvement and introduction of new rail facilities will contribute towards the development of many areas like Cyberjaya, Puchong, KL City and Mont Kiara as they are made more accessible to more developed and urban locations and their many job and economic opportunities. This rail revolution will influence buyers in their purchasing decisions because it will open them to many new opportunities and make people more mobile as distance becomes a less important factor in deciding geographical preferences. This would definitely become a game changing factor in the management of real estate.
Other than that, Malaysia will be experiencing what people call “The ASEAN Effect.” Many rich citizens from prospering ASEAN countries have been observed to begin buying properties overseas, especially in global hotspots such as Japan and Australia.
Well, well, well, it’s just less than 30 days away, isn’t it? Many are eyeing on this important year. According to studies and the input by many experienced property gurus, we can expect to see the property market in Malaysia continue to stabilise in year 2017. It’s believed that the worst scenario in the property market is over, and that the market is now preparing for a boom, or at least a major kick-start in 2018, based on the many positive developments as discussed above.
So what should we all do in 2017?
Till then, it is advised for prospective property owners and investors to start planning ahead and take advantage of future prospects rather than just passively waiting for the revolution to happen. The first half of 2017 can be the period for active learning; it’s recommended to get to know the market more, do more studies and research, and eventually take the big leap. Buy properties while their prices are low, and enjoy the fruits of your labours later!
Remember, success and luck come to those who are well prepared.