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What Is Happening in Today’s Malaysia Property Market 2017

What Is Happening in Today’s Malaysian Market?

  • Today we can see a lot of very well inform individuals have been actively asking a lot of questions. Some key factors include the etiquettes people of Singapore with multiple opportunities in Malaysia. This also gives developers some key locations in Malaysia such as Kuala Lumpur. International investors in other parts of the world are making decisions about what to do with their money and it is important that they have facts to make an informed decision and overcome problems when eyeing Malaysia Properties.
  • I hope this article will benefit in terms of making clear investment analysis quality and diversity. The state of the latest property news in Malaysia market now is always a discussion that takes place all the time and it is so common. So how do we answer that?

latest property news in malaysia

  • If you really look at where we are today, it is really a situation of uncertainty in as far as the property market bubble is concerned. This uncertainty is obviously coming out of certain circumstances, certain scenarios, certain issues which are fairly prevalent in the market now. Obviously one of the examples that I would use for example is “office rights” and “take-up of office space”. Landlords are complaining that prospective tenants are not coming around as much as they used to and even first prospective tenants. Today an inquiry for 10,000 square feet of office space is considered as a blessing so you’d find that one of the sectors for example like the office market is definitely facing a situation.
  • Another example would be one specific building in the KLCC have dropped the orions like about thirty percent and therefore what options do they have but to bring down the rent? Does that really mean that we are in a state of the market where things are looking so bad that it is all going to collapse now?
  • If you look historically at the Malaysia property market bubble now we go back even let’s say 30 years and this is history. I’m sure a number of you would have been in the market since, and you find that we have had the two major downturns in the market. One was in the year 1984 and the next one obviously quite a number of you would know that was the asian financial crisis in year 1997.

property market malaysia

  • After 1997, the market consolidated it took off from year 2000 we have been very fortunate that we have not really seen downturn but we have had some swarm of a slowdown back in year 2009 to 2010. The downturn became more of a consolidation now, that was again due to external factors for example what is happening in the USA in year 2008? The subprime crisis it had some impact on us our GDP came down to like below two percent and if we look at 1997, a similar situation occurred whereby the downturn was not so much really caused by internal factors but fueled by what is happening outside of the country so the situation with Malaysia is that we have fairly good fundamentals internally.
  • The external factors those which have contributed to our major downtown’s and this has happened historically over the last 30 years. Therefore whatever that is happening now we have to obviously assess whether these are governed by external factors more than internal factors. I think that’s where the keys in terms of the state of the market now. I will come to this later but in the minds of buyers, the simplest thing asked is what is going to happen? How long this is going to happen? When will Malaysia property price drop? When can I buy my property now at thirty percent discount? Can I do it?
  • Let’s put some thoughts in the markets in Malaysia on how things have evolved over time. I’m sure all of you here would be very conscious and aware that the key markets being the greatest impact is either an uptrend or downturn. The focus is basically on Klang Valley. Now if we look at the offices in Kuala Lumpur, it’s going through a period of consolidation.
  • Landlords have been holding at levels that they have been for the last one-and-a-half to almost two years. We have not had any price increases obviously, but landlords are not being compelled to bring down the price. Now retail is a very interesting sector because I’m sure most of you aren’t from Klang Valley but will know that there are numerous retail centers, retail complexes that are being built by the ones which already in place and you just wonder whether they’re going to get enough footprint at the end of the day, because there is obviously a certain kind of formula very very hypothetical, theoretical formula in terms of how much space we require relative to population and those numbers obviously are running beyond what it should be for Malaysia and especially for Klang Valley.
  • malaysia property market bubbleResearch shows that the more established ones such as KLCC, Pavilion, and Mid Valley are probably the ones which may not necessarily have much issues. Developers have been very prudent not to overbill shop offices now. As a result, the residential sector is obviously a very interesting sector everybody wants to know what’s happening. The main issue here really governs the midrange and high-end condominiums which appear to be under pressure. The industrial has been fairly stable. We have not had any issues in fact industrial land prices have gone up quite substantially especially in a more established locations not necessary just Klang Valley. This is more for the whole of Malaysia. It has been doing very well.
  • One of the plus points about residential development land is, it is going through a pretty phase of consolidation so you want to find that incase the sectors which are fairly vulnerable at this point in time or that this cycle are basically the offices, the hotel’s, the midrange to high-end condominiums apartments, the midrange houses and development.
  • The midrange to high-end condos are probably seen as having a bit of a tough time but surprisingly the high-end houses are doing fairly well. There seems to be a good market for that but supported by the fact that not many developers have gone berserk in terms of launches so supply has been fairly constricted. High-end houses are doing fairly well so the concern is really the midrange to high-end condominiums. If you look at Klang Valley, it has got a population base of close to 10 million people supporting developments industry locations and that’s about one-third of Nation’s Population!
  • So if we question the fact that our market in these three locations could be saturated or it could be all built, we have to bear in mind that the inward migration into Klang Valley is all has been on a positive growth rate all this while and there are more and more people who are converging to the Klang Valley. This is what leading to the decay of small towns in Malaysia which is actually not so constructive and not so conducive because people have got properties in other locations which are losing well in the sense that there’s no capital appreciation and if they were to actually look for tenants, it’s going to be a big issue because most people are moving out of those places.
  • They’re all in the impact on purchasing power and affordability has tremendous implications on the property market especially industry locations now if we looked at the trend as it does say the market is consolidating.