THE Malaysian Institute of Estate Agents (MIEA) has taken the stance “to debunk” the notion over half-priced property value in Malaysia. The question arises after two developers advertised that they are selling properties with a 50% discount tag.
Its president Chan Ai Cheng said MIEA came to understand that one Kuala Lumpur-based developer made a big hue in their marketing campaign by putting up one shop lot for sale at that discounted price, “just one unit and no residential properties involved”.
“The other, a Johor developer, also reported to have placed units for sale at the same 50% discounted price citing reason that the units are undesirable. These are isolated cases and should not be used as a yardstick that it is happening all around the country,” Chan pointed out in a media statement.
While MIEA agrees that developers do adjust prices from time to time to keep up with the required sale and the need for cash flow, majority of them do not offer discounts as dramatic as reported.
“As much as we get excited with news flash here and there, it is always good to note that there will always be anomaly in the market but it is also very important to do your own research and let data guide your thoughts,” cautioned Chan.
“It is important to understand that ‘developers’ packages’ are what makes buying properties from the developers very attractive. This normally involves low or ‘0’ down payment, rebates, freebies and 100% loan financing etc.
“When stripped to the net prices, this may give an illusion that prices have fallen dramatically when in fact different prices are being quoted at different points of marketing, eg price before and after discounts to make it look that the price is low.”
In a survey conducted by MIEA among its members, 28% out of 502 respondents stated that the property prices in the secondary market have remained unchanged while 22% noted that the price went down by 10% while another 5% said prices increased more than 10%.
“As we all know there is no fire sale with the exception that those who were really affected by the lockdown had to sell and, in such situations, the price in most cases have reduced,” observed Chan.
She further reiterated that as an association, MIEA has the solemn duty to protect public interest amid isolated incidental and sensational reports that can disrupt the sentiments of buyers and sellers.
“The property market is stable though there are price movement based on demand and supply,” explained Chan. “We confidently foresee that as soon as the lockdown ends and sectors open up, there will be much interest generated in the property market.” – Aug 20, 2021
