Should I Get A New Property During or After Launch?
The real estate scene in Malaysia has been going through a cooling-off period for some time now. That doesn’t necessarily mean people are putting off their property purchases. These days, buyers are spoilt for choice with a plethora of value-added furnishings and fittings as bonuses and are even enticed with buffet spreads and carnival-like festivities when it comes to a new property launch.
So how do you decide if you should get a new property during the launch or wait it out to see if the take-up rate is high?
Questions to ask yourself
Before making a move, it may be worth backing-up a few notches in your thought process and consider these reasons for your property purchase:
- Do you intend to reside in the property or is it for investing purposes?
- Have you taken into account if the location suits your needs?
- If staying, what is your daily commute going to be like?
- If you intend to rent it out, do you know what the current rental prices in that area are?
- What is the level of occupancy of surrounding units in the area?
- Would you be able to afford the monthly instalments and maintenance costs?
- Is getting a larger or smaller unit more ideal?
- Who will manage the property once it’s completed/rented out?
Public perception of new property launches in Malaysia
If you’re hesitating because you’ve heard that there is a property glut or oversupply, and you’re afraid that a project may run the risk of non-completion and project abandonment, the first thing to check is the developer’s reputation and history of delivery.
You may be more assured if you choose a reputable developer with a clean record of delivering quality units in a timely manner.
Home-ownership in Malaysia is still popular and this is evident in the numbers released by the National Property Information Centre (NAPIC). The Malaysia House Pricing Index (MHPI) still rose (albeit at a slower rate) from 193.1 in Q2 2018 to 194.8 in Q2 2019 with average price (all house categories) rising from RM417k to RM420k. Hence, if you’re waiting for prices to come down, especially if it is for terrace or high-rise residential units, you may be disappointed.
Anytime is the best time to buy a property as long as you understand what you want and what you are getting yourself into!