Kuala Lumpur, 15 March – Homes in the secondary market and the Southern Corridor of Klang Valley are what buyers should look out for when property hunting in 2017, according to experts at a recently concluded talk held at Bukit Puchong Sales Gallery.
“A good time to buy a property will be the second half of the year. For the first half, the market is still very volatile. The second half will be more stable and you will see more available stocks in the market. The secondary market will be very good. The primary market is a bit slow this year. However, for next year, the primary market will be good,” said Prof. Joe Choo, president of Malaysian Institute of Geomancy Science (MINGS).
“When looking at timing, this means knowing when to enter and exit the market. In fact, now is a good time for you to start your property hunt as there is so much supply of homes in the market. This has made it a buyers’ market. However, you must also be discerning by looking at where the demand is as this will enhance your future property values. There is currently strong demand for affordable homes. Therefore, you should have an investor’s mindset by looking for the most affordable home but with the greatest room for capital appreciation,” said Dr. Daniele Gambero, CEO of REI Group.
Dr. Gambero further explained that buyers should look to the Southern Corridor of Klang Valley as this is the next growth centre.
“When looking at transformation, this means looking at growth strategies via new economic drivers and the strengthening of infrastructure developments. One example is the economic growth corridor of Southern Kuala Lumpur where the Malaysia Vision Valley will be developed between 2015 to 2035. Covering high tech, logistics, education, health, tourism and sports, this new economic corridor is expected to create some 1.35 million jobs by 2035,” he said.
TAHPS Group CEO Eugene Khoo echoed a similar sentiment.
“I am of the view that the property market will continue to remain flat this year. We are seeing many developers offering attractive packages and/or rebates to entice purchasers to clear existing stock. I see more developers launching smaller sized properties, especially in the high rise category to increase affordability. Don’t be surprised to see 400 sq ft properties being launched,” said Khoo.
While Khoo notes that it will be difficult for purchasers to get end-financing as banks will continue to be very selective, he remains optimistic.
“If you are in the market for a property, now is the perfect time to buy — buy when no one else is buying. Today, the supply outstrips demand so there is an oversupply of property and developers need to clear stocks to generate cashflow,” said Khoo.
Under the Eleventh Malaysia Plan 2016 to 2020, the federal government had allocated a budget to strengthen infrastructure developments to support the economic expansion in Southern KL. This includes the RM10 billion Ampang LRT Extension Line that connects Sri Petaling to Puchong before ending at Putra Heights.
“The prospect of Bukit Puchong is just the beginning of a vibrant era. This is very similar to Ipoh. Both Ipoh and Bukit Puchong, and by extension Puchong, were mining areas before. In the case of Ipoh, it slowly started to gain popularity and its property market has picked up since 2014. Therefore, Bukit Puchong will carry the same weight or even more,” concluded Prof. Choo.
Both Prof. Choo and Dr. Gambero were invited speakers at TAHPS Group Property and Feng Shui Talk held on 4 March 2017 at Bukit Puchong Sales Gallery which attracted around 150 attendees.