Now's the time to look for properties

KUALA LUMPUR: The best time to look for properties is now, as the property market picks up from a low base last year, and with a feel-good factor in the air as the industry anticipates new policies from the new government, said Reapfield Properties Sdn Bhd group COO Jonathan Lee (pix).
"Everybody's looking for bargains. This is the best time to look. We've had the lowest transaction volume since 2012 last year. When you come to that point, what's going to happen is probably up. Based on new policies, systems and restructuring (by the new government), we'll have a good reset of the entire systemic approach. This is the right time to be investing," Lee told SunBiz in an interview.
"There will be some adjustment period and in the midst of uncertainties, there are lots of opportunities to explore now."
He said although the current scenario is a curveball, it still brings value because the government's kitchen sinking exercise will positively impact the property market from a systemic point of view.
"Property is an inelastic product. You cannot build or cut down a lot of things in a short time. Because of the inelasticity, you will see some effect in certain places but it will not be a major impact to the ecosystem. It will change the way developers plan but we don't see that as a major impact in the short run," opined Lee.
He said the sector is anticipating how policymakers will shape the new housing policy (to be announced this month) to dictate the direction of the property market.
"There is a feel-good factor in the market now where people are more willing to look at the market for their own stay or for investment. We've seen some incremental movements due to this."
Lee pointed out that one of the challenges in the market is "noises", where many investors or home buyers are confused about what is good value.
"A decade ago, Cheras was A price, KLCC was B price and Mont Kiara was C price. There was a fixation of value in certain locations but, today, that has ran a lot, so a property in Cheras, Mont Kiara or Bangsar South could be selling at RM800 psf also. Where is the true value?"
He said in today's data-driven world, real-time data is important for the property market, as valuation is based on transactions.
"If there is more streamlined approach to valuation, where transaction data is real time, then you will see better trends, supply and demand."
He said the data in Malaysia is delayed but in markets like Singapore and Hong Kong, there is real-time transaction data that can be retrieved from the local agencies.
"With data based on transaction volume, price movement, indexes, this will help home buyers, developers, owners, investors to be aligned so you will have more relevant and accurate development and we know what is a good value. A lot of perception is running in the market now. If there's a systemic way to have cleaner, real-time data, it will be more helpful," Lee explained.
He said home ownership in Malaysia is safe, attributed to a solid system, and that the laws that govern the system are well prescribed and codified. "In Malaysia, all ownership of property is undertaken through a registration process. The minute you transfer a title, you have a record of the transaction."