(Views) Malaysia Property Market Outlook 2017

by - Wednesday, December 28, 2016

(Source: Property Guru Malaysia)

The recent hoo-haa in Malaysia is on fresh graduates demanding for sky high monthly salary amounting approximately RM6,500.

It is not wrong to dream big but I think fresh graduates should be more realistic and be more adaptable to the real world.

The working environment and study environment are two different worlds. For most of the students, they have their fa-ma scholarship (Father-Mother). They do not have to worry about monies but to study and enjoy their lives.

Most of them will continue their studies till Masters level or even PhD level but what they do not know is the employers will not pay additional amount of a few thousands on monthly basis to get someone totally fresh with no working experiences but super high qualifications.

Be real, Freshies!
Even if your qualification is really high, how do you expect employers who are juggling between their businesses and the economy to hire freshies like you at a high price?

Malaysia Property Market Outlook 2017
Nonetheless, the Malaysia property market outlook in 2017 is rather slow in view of the unstable Ringgit Malaysia volatility and politics.

The buyers are adopting the wait-and-see method on the entire market rather than buying-away.
They are uncertain what will happen next but would rather keep their monies to themselves than investing in something.

Property buying is a long term investment.
As quoted by the Malaysian Property Summit Mid-Year Review 2016 committee member James Won, the property market is only expected to recover in year 2018.

There are still a lot of genuine buyers in the residential market looking for homes. Even if there are speculators in the market, there are not enough of them to overturn the market due to their small number as compared to genuine home buyers. (Source: HERE

As quoted by the Managing Director of Khong & Jaafar Sdn Bhd, Elvin Fernandez, there’s also the supply side, we have got a lot of supply at any one time coming in. Based on all of that, going forward, flattish is good, as long as it doesn’t drop; and an increase is not likely.

Developers are slowing down but there are still some projects going on.
The recent trend of development projects would fall more towards the mixed developments which comprises commercial, residential or even a school and/or hospital at the same area.

Convenience and Lifestyle at one go.
Of course, it does not come at a low price.
An example of this sort of project: Tropicana Metropark (Link: HERE)

 Youths like us, we want to own our properties but it is rather kind of impossible due to the increased property prices. 
Most of us are interested in matured areas, like Petaling Jaya, KL city area but can we afford it? No, we can't.

Our disposable income is on reducing trend. The adjustment in Base Lending Rate ("BLR") caused the Banks to be more cautious on their risk management. Hence, the more stringent in lending policies.

My advice? Prompt repayment!
Do you know even your PTPTN loan repayments do reflect on your CCRIS report?
You need to have some credit card bill repayment to show the Banks that you are a good paymaster.
If your record is totally zero, how are the Banks going to analyse your repayment capability?
 **In case you do not know what is CCRIS report - HERE**

However, there is still hope for youths like us to own a property.

Perbadanan PR1MA Malaysia was introduced under the PR1MA Act 2012 to plan, develop, construct and maintain high-quality housing with lifestyle concepts for middle-income households in key urban centres. 

PR1MA is a housing scheme which designed to allow people like us to own a property, as long as you don't own a property at the same area and is open to all Malaysians with a monthly household income between RM2,500 to RM10,000. The properties are usually priced between RM100,000 to RM400,000.

How to own a property via PR1MA?
  1. Register yourself via http://pr1ma.net/  
  2. Get the relevant documents ready, like salary statement and etc.
  3. Place ballot for the properties you are interested from the list on the website above
  4.  Wait for the news!

What is you view on the outlook in 2017?
Do share with me your views (if any).
 Thanks for reading! 

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