Data Showed Renter’s Market In The Future
“The showcase is solidifying and being transcendently flattish over the final couple of year, the volume of buyers declined altogether as described by the National Property Data Middle (Napic) data.
“Developers were conceding or lessening the scale of development with respects to new launches so new units dropped hence the supply of the renter declined too,” he says. However, others claim that the fact of the supply diminished, it did not have an effect on the rental market, only affected the high-end segment.
He says the request for lodging would depend on cost and loans financing. “Loan approved were only in 40-50% from 2012 until the primary quarter of this year after Bank Negara introduced the responsible lending guidelines in 2012” he says.
In spite of the fact that it been said it could be a great time to purchase since the property market has cooled down, the data show otherwise. “Although the volume of sales decreased, price did not drop,” he says, including Klang Valley, Seremban, Johor and Penang. Data for final year show drop in values for high-end market, which means we have to prepare for it when decided to purchase that range of property.
“Houses underneath RM500,000 or RM600,000 did not see much of a drop-in value,” he says. However, there were slight decreases in price with the high-end market seeing a decay in capital values. He says it isn’t a buyer’s market “simply since of the strict lending requirements”. There is high demand but smaller amount of population qualifies for a loan.
“And the market has not seen any ‘fire-sale’ where you see frantic offering since the dealer is in frantic require of cash and so on. “All these show that the market is still holding up well,” he says.
The market will not see an upsurge in price as happened within the past years. “This will not be the case within the close future since what we are going see will be a more natural development in values upheld by basics and so on.”
However, he does see a renter market within the future. “If rentals don’t grow with prices, in the long run it will become a renter’s market.