I’m planning to buy a house this year, but people said that I must wait as there might be recession and property price might drop. Is that true? Cause I wonder since everything’s price are going up. How is property going to drop?
All developers have increased their prices by 20 – 30% since their material cost (steel and cement) has increased. If they don’t increase their prices, they are building houses for free.
So if you’re buying 300k condo, most probably 200k goes to the location and the building material only cost 100k.
Even got increase also 100k X 30% instead of 300k X 30%. Somehow I may suspect that the developers are taking advantage of current situation to increase their profit as well.
Nobody can 100% guarantee price will go down soon, but I have bad feeling our economy will doom. If you have enough saving, it doesn’t matter property price will goes down or not. In the long run, property price should hike especially freehold landed. Even a leasehold property has value because period ended does not mean you will lose the house. It’s just you have to renew the title only.
Reason Why Property Price Will Drop:
In My Opinion:
1) Over supply vs demand – Overbuilt can cause a lot of apartment unit unable to rent or sell.
2) Increase of petrol, food, and necessity item… thus squeezing people’s expenditure to consider buying property
3) Political instability leading foreign people afraid to consider buy property.
4) Property price in good location will remain unchanged, as there are some demands for it. But non-popular area would be hit with low demand.
It is advisable to buy now for completed projects as the price is not affected by the increase of building materials. It is not advisable to buy on going projects as the price may be affected by the rising cost of materials.
Owning making money property is that income generated from rent can be quite considerable if a property is managed properly. If an investor doesn’t overpay for a property, keeps expenses down, the apartments rented, and the building well maintained, it could generally make money even while the investor sleeps.