According to reports, the Malaysian real estate market is currently stagnant, with volumes falling and property values crashing here and there. It is thus best for home buyers, particularly first-timers, to consider second-hand homes.At least that’s what Dr. Rahah Ismail of the Ministry of Finance contended the recent Malaysian Property Summit. In a presentation, she mentioned that the secondary market is currently responsible for 82 percent of purchase transactions this year. Out of this percentage, about 69.6 percent refers to purchases of properties under RM300,000.
So there has never been a lack of interest in home-buying; it’s all a matter of pricing. In other words: “brand new” doesn’t seem appealing anymore, what with unchangingly high price tags. The strong evident in second-hand purchases should thus console new home buyers.
The lacklustre of Malaysia’s real estate also owes itself to the fact that many loan applications are rejected, no doubt due to an overall hike in pricing. According to Dr. Ismail, the approval rate had dropped from 50.3 percent to 41.8 percent between 2015 and 2016 alone.
Amidst all this information, what can potential home buyers do for themselves? First, they would have to actually know what their desires, expectations and budget are when choosing a home. Such surety dictates the type of property they would eventually get, which then narrows the choice of locations and available to them.
From here on, it’s apparent that having a good agent will definitely make a difference to the process. If reading this, you feel convinced to navigate through the secondary market, you can send in a request on Bumbung and take it from there!
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