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properties for sale are pervasive and offers are sweetened with rebates and
Expect a surge in housing prices when the economic growth starts to improve .
This is the time to purchase a home . incentives . It ’ s a basic indication that the housing market has
In an already weak market , when positive excessive inventories . news starts to surface reporting of encouraging growth rates , business This reflects a sluggish market and that expansion , and forecast of some sellers are trying to clear existing stock . buoyant economy , employment and Recall that in the first part of this series earnings will rise . With the improvement it was reported that developers will hold in the economy and the job market , back or slow down on new projects increase in demand for housing and a when profit margins are not workable . corresponding housing price hike will In addition , constrained by rising costs , certainly follow . So , when the media there is a limit in lowering prices . reports about how rosy the economy is During an economic downturn , weak getting , it is a good time for real estate and smaller developers would likely be investment . When the economy climbs forced out of the market and thus easing back in full steam , the housing market market competition . Therefore , when the may have entered the next cycle . backlog is cleared , prices of new home supply are not expected to be cheap . Reports from sellers indicate that the Supply squeeze may cause prices to go market is now basically being supported up instead . by first-time home buyers while the government is taking an increasingly active role to help this segment of buyers with various financial plans . In addition , there is the recent report of the rising number of abandoned projects and mounting housing inventories in the country . These are signals that the local housing market has lost its vibrancy as well as any speculative fever and government incentive is needed to help maintain market resilience .
Recently there appeared some bright spots for the Malaysian economy . Firstly , oil prices have picked up , trading well above $ 50 USD per barrel . Secondly , there is the report of China ’ s significant increase in investment and participation in Malaysia , specifically in the East Coast Rail Link , Melaka Gateway Project and Bandar Malaysia as well as their keen interest in the KL- Singapore High-Speed Rail .
When the effect of these development projects on the economy kicks in , excluding the changes in the local political scene , the market is expected to start improving by the first quarter of 2018 . But as it stands , the current market scenario seems to suggest a ‘ buy ’ signal . www . PropertyHunter . com . my 39