Dear homebuyers, it is time to seek out discounted properties

KUALA LUMPUR (Nov 25): With the current economic and property market slowdown, there are opportunities now for investors to find “discounted” properties.

TheEdgeProperty.com’s product and business development director Alvin Ong believes opportunities still abound for those looking to invest in the property market.

“We’re seeing the end of the ‘boom cycle’ where income growth will slow as [Malaysia’s] gross domestic product slows. We expect liquidity to remain tight due to the high household debt. In other words, the short-term outlook for the economy will not be good. However, I believe there’s always a silver lining,” he said.

For property investors, one can go for properties near or with easy access to upcoming infrastructures such as the light rail transit, mass rapid transit, East Coast Rail Link and Kuala Lumpur-Singapore High Speed Rail.

“Another way is to look at discounted properties,” he said during his presentation on the Malaysian property market at UBS Macro Day organised by UBS Securities Malaysia Sdn Bhd on Wednesday (Nov 23). Also present at the event was TheEdgeProperty.com managing director and editor-in-chief Au Foong Yee.

According to Ong, there are greater opportunities to buy at lower prices than before the slowdown and in KL a few high-rise residential properties have seen their prices in 2016 discounted.

Based on TheEdgeProperty.com’s analysis, among non-landed residential projects in KL which have shown the largest reductions from their peak transacted prices since 2012 are Suasana Sentral Condominium at KL Sentral, Seringin Residences at Kuchai Lama and St Mary Residences in the KL city centre.

Citing data from TheEdgeProperty.com and National Property Information Centre, Ong noted that based on transactions from 2012 until 2Q2016, the transacted price of Suasana Sentral Condominium has dropped from a high of RM1,287 psf to RM680 psf and below in 1H2016, while Seringin Residences has dropped from a high of RM692 psf to RM508 psf and below. The transacted price of St Mary Residences has also dropped from its peak of RM1,709 psf to RM1,205 psf and below over the last four years.

“These are a few examples but it shows that with proper research, it is possible to find good deals,” concluded Ong.

This story first appeared in TheEdgeProperty.com pullout on Nov 25, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.