Is the hot favorite KLCC a better location than other places? For people who buy to stay, a certain location has already been decided, and these home seekers will not be pulled beyond that preferred neighborhood. Investors on the other hand, are different for they will search a wider area for better returns and consider other factors. So, location doesn’t necessarily mean KLCC, it can also mean Mid Valley, PJ, Klang, Nilai, Seremban, Ipoh Garden, the list goes on.
Is there then such a thing as a wrong location? This can be defined as a slow growing area. Sepang for example, had an oversupply of properties during the 1997 Asian Financial Crisis, because it was akin to Subang where the country’s old international airport used to be, developers flocked in but were left stranded when the Crisis hit.
Who do you blame for such bad luck? It can be caused by the developer, the environment or a sudden change in the government’s plans which are all hard to predict. Fortunately, there is consolation now that we are in the information age. Buyers today are well equipped with sufficient knowledge and aptitude to source for the relevant information which can make all the difference.
The pricing structure is often tied to attributes such as location, quality, size, security, exclusivity etc, but an easier and perhaps more popular methodology can be applied instead: when a condominium is compared with a terrace house, in essence the condo’s price cannot be higher than the terrace house. This sort of indication is what purchasers can rely on when choosing properties, stratified or landed. While not many would agree with this system, those in price wars or premium battles may succumb to such market forces.
In terms of developers, it is their reliability in delivering what is promised that matters. It all comes down to whether a developer can ground what’s been said. This is why the track record of a developer is important; instead of just being profit driven they should put their customer’s satisfaction first and be concerned about keeping a good name for themselves.
Keeping a tidy information is vital because you’d want to be among today’s savvy buyers where your research may better the salesman before coming to the showroom. Consider attributes like the developer’s long term vision, profit strategy and market reputation.
Quality, design, price, size, security and surroundings used to be the common considerations in terms of product. But in today’s market, eco-friendliness must also be taken into account, and it’s more than just green bushes; it is about the house, the architecture, the ventilation, the lighting, the landscape, provision of recycling bins, community driven green activities, just to name a few.
Seasoned investors have a keen interest in new launches as they know that property prices will only inch upwards over time. They know that 99.9% of the developers will always keep upgrading and keep increasing the price.
There are also those “hit and run” short term investors, who are only there for three to five years. An example would be investors who grab Malaysian properties right before the Ringgit rises, appreciating from both the Ringgit and property. So, it definitely pays to be attentive to the market movement. Another factor is timing, a simple factor that dictates what is in and out of trend.
The ability to map your investment to the buyer’s appetite will certainly help preserve value. But the best qualifying factor would perhaps be the developer itself, for established developers can easily instill confidence in their buyers. And your confidence as a buyer is what matters at the end of the day.