“Will Residential Property Prices Rise?” Part 2/2
"Is now the right time to buy property?"
Prolific property YouTuber Sean Tan was asked the question above by a Penang property developer during a live Q&A in Penang (see YouTube video below). His diplomatic reply was it's always a good time to buy property.
Now I happen to agree with that kind of sentiment, being an ex professional stock picker aka investment analyst in another life. I used to write a stock tip column for Ming Pao, a quality newspaper in HK.
Of course I didn't actually pick any stocks specifically for the Ming Pao stock tip column. Instead the stock tips were contributed by the investment analysts in my firm's research team from a list we had current "Buy" recommendations on. We made sure -of course- there was always a couple of days delay before our stock picks featured on our “MarketWatch” newsletter were sent over to the newspaper.
I track the KL high end auction property market. Prices in PSF for freehold KLCC condominiums going to the auction block have been trending down in recent weeks to around RM600-650 psf. But at one KLCC condo on 27 June, renewed buying interest pushed up the auction price of RM630,000 to a final hammer down RM765,000!. Perhaps prime KLCC condo prices have fallen low enough for property buyers to get interested again? What do YOU think?
I think there is an important caveat to Sean's advice. Of course, it's always a good time to buy properties and stocks. But property and stock investors need to consider also the price. Where can you find historic property transactions prices and rentals PSF for a property?
PropertyGuru's Pricing Insights gives transactions price and rental PSF for property projects, by no of bedrooms. See samples below for property transactions and rentals in PSF for two bedroom units at a luxury seafront condominium at Tanjung Tokong for the past 10 years from Pricing Insights by PropertyGuru.
Both line charts show the property transactions prices and rentals in PSF over ten years are trending lower. “Is now the right time to buy property or will prices go lower?” What do YOU think?
I wrote a comment on “Is it time to buy property stocks” in my High End KL property blog 360 KLCC.
