Based on the extract from The Star below recently:
Weak market seen for the rest of the year- Saturday, 4 July 2015 By Thean Lee Cheng
Prices remain: Even when the conditions are weak – as in the current market – the residential market is stable because of the large pool of owners, says Fernandez.
But prices of residential likely to be resilient
THE property market is expected to continue to be weak for the next six months, with some activities expected after the Hari Raya period, according to a real estate personnel.
Despite the continuing weak market, prices of residentials are expected to remain resilient, says Elvin Fernandez, managing director of property consultancy Khong & Jaafar group of companies.
Over the last six months, one of the most frequently asked question centres around prices. Because of the slew of press reports about the sector experiencing a slowdown, the assumption was that there would be a noticeable drop in property prices. “The property market does not behave like the stock market,” he says.
Even when the conditions are weak – as in the current market – the residential market is resilient because of the large pool of owners. Rentals too are holding up well.
However, this does not mean prices in the various sub-segments will drop.
It will only drop if there is a “cataclysmic event, like the Asian financial crisis” of 1997/98 when prices dived 30% in some areas, says Fernandez.
“This means that prices are stable,” Reapfield Academy CEO Gerard Kho says
PPC International CEO (Agency) Siva Shanker says he expects interest to return in 2016 but pricing and transaction volume will be “flat” until the year end.
“There is some perception that prices are falling but this just a perception. What is falling is asking prices (as owners decide to drop prices when they see no interest),” he says.
This cycle has happened every time and in exactly the same way it’s an astounding repeat; I can’t understand why more people cannot see this” Phil J Anderson, Author: The Secret Life of Real Estate and Banking
Why worry about the “noises” in the market that will cloud your decisions on property investment when the 18-year property cycle has all the answers?
The 18-year property cycle will show you when the prices will rise and fall. History repeats!
Find out when you should be wary of investing before the market turns downwards.
Find the answer to when the property prices will fall and how long it will be before the next property cycle turns around. Click here to find out more.
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Danny KO @ RPC
If this article is useful to you, feel free to buy me a coffee ☕
