KUALA LUMPUR: The current economic landscape presents an opportunity for investors to get good bargains and discounted properties prices under current situation exacerbated by the sellers.
MyProperty Data Sdn Bhd (MPD) chief executive officer Thor Joe Hock said it was now biased to buyers' market as they can put their prices instead of the sellers.
"The market changes rapidly when there is a lot of supply in the market. However, it is important for buyers to determine the right price and it should be backed by data," he said.
MPD manages PropertyAdvisor.my, a platform for home buyers, investors or agents on latest property transactions, market information and analytic tool.
He expected the property market was likely to remain flat in the next 12 months to 18 months owing to the stagnant growth in prices.
"We anticipate the high-end segment to remain stagnant during a downturn. Properties under RM500,000 will first to recover for the residential. For commercial, companies may need to reassess their needs for office space.
"They may be consolidation over the next 12 to 18 months, but we do not see much rental growth," he said.
Nevertheless, he said there was an uptake in the transaction for industrial space (logistics purposes).
"Currently, this is the buyer's market as supply exceeds demand, giving buyers an advantage over sellers in price negotiation. Price has been stagnant and falling in the past few years, particularly in the residential segment across the board.
"However, in prime locations, we do not see price growth and often price fall in the outskirt," he said.
He emphasised that there was no right time to buy a house as it would be dependent on the buyers' financial ability.
Based on PropertyAdvisor data analysis, Klang (Bandar Bukit Raja) and Kajang-Semenyih were the top two most transacted areas in the Klang Valley with landed property prices ranging from RM550,000 to RM737,888 between 2018 and 2019.
The top two transacted areas were dominated by terrace houses in Bandar Bukit Raja with 737,888 units and 648,944 units sold in 2018 and 2019, respectively.
Kajang-Semenyih has a median transaction price of RM579,000 and RM550,000 between 2018 and 2019.
It also revealed that Malaysia recorded an average of 180,000 to 220,000 properties transaction per year with 80 per cent were sub-sale (second hand) and the remaining 20 per cent for the new landed property transaction.
