30 May, 2022

Uncategorized

How Does Inflation Affect Housing Prices?

On the May 11th, 2022, Bank Negara Malaysia made a surprise decision to increase its overnight policy rate (OPR) by 25 basis points to 2% from 1.75%. This decision came as a result of rising inflation pressures—in fact, the consumer price index had increased 2.2% year-on-year earlier this year in March.

We are currently in an inflationary environment that’s at a multi-year, multi-decade high due to supply chain bottlenecks and years of negative to low-interest rates. Inevitably, building materials such as steel and cement are also increasing in price—this, in turn, affects the prices of houses.

Another reason contributing to the rising inflation is the global supply chain issues. The COVID-19 pandemic has disrupted people’s lives, inevitably leading to a decline in the workforce. With lockdowns and debilitating illness businesses, we’re continuing to see the effects of the disruption until today.

Will houses be more expensive now?

The short answer is yes. Due to the inflated costs of raw building materials and shipment, house prices won’t be seeing a decrease anytime soon.

Should I still purchase a house?

Houses are still an excellent asset during inflation. The value of your house rises with the inflation rate, which means that you’re protected even if the inflation continues going up. With the right knowledge, you can invest in strategically located properties that can see a price growth due to their desirability, leading to better return on investment (ROI) if you were to sell your house in the future.

Great, where do I start?

The first step is determining your budget, the type of home you prefer, and the location. Do you want a landed property in a more peaceful part of town that’s low density? Is a high-rise with the perfect view of the city skyline more up your alley? Factoring these into your decision will help you find the ideal home that you can not only live in but be a good investment against inflation.

Whatever your ideal type of home, Mah Sing will have the right property for you. Check out our website and be in the know of our existing properties and all the exciting upcoming launches.

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Admiral (R) Tan Sri Dato' Seri Abu Bakar Bin Abdul Jamal

Chairman/Independent Non-Executive Director

NATIONALITY: Malaysian

DATE OF APPOINTMENT: 1 August 2023

ACADEMIC / PROFESSIONAL QUALIFICATION(S)

Admiral (R) Tan Sri Dato’ Seri Abu Bakar Bin Abdul Jamal was the 10th Chief and the first four-star Admiral of the Royal Malaysian Navy. Admiral (R) Tan Sri Abu Bakar served the Royal Malaysian Navy for almost 40 years both at the staff and command levels culminating in the highest office of The Chief of Navy from 1998 to 2002.

Admiral (R) Tan Sri Abu Bakar was the former Chairman of Affin Fund Management Berhad and also the former Chairman of several companies covering diverse industries post his retirement including naval and marine, property development, construction and automative. He was also a former Board member of Lembaga Tabung Angkatan Tentera (Armed Forces Fund Board).

In recognition of his services not only to Malaysia but also towards promoting international and regional understanding and peace, Admiral (R) Tan Sri Abu Bakar was bestowed the Panglima Setia Mahkota award carrying the title Tan Sri. In addition, he also received international recognition in the form of the following awards:

  1. Bintang Jalasena Utama by Indonesian President Abdul Rahman Wahid on 28 August 2000
  2. Legion of Merit by United States President Bill Clinton on 6 October 2000
  3. Knight Grand Cross of the Most Noble Order of the Kingdom of Thailand by His Majesty King Bhumibol Adulyadej R on 24 February BE2544 (Gregorian 2001)
  4. Legion d’ Honneur by President of France, Jacques Chirac on 17 June 2001

There is no family relationship between him and any director and/or major shareholder of the Company.