Is the property prices coming down anytime soon?

Is the Property

I think this will be the question of majority investors that are taking a wait and see approach. Recently, I have the opportunity to have a chat with my personal friend who is also the founder of a well known property portal in Penang. And one of the topics we discussed is Penang’s property prices.

In our conversation, we had come to a conclusion that the property prices is still on the uptrend even though the number of property transactions has slowed down. Also from our recent visits to a few Developers’s launching and open houses, we observed that developers are trying their very best to maintain prices at a level attractive and affordable to majority population, in addition to offering attractive packages and rebates.

How do Developers maintain the prices? Well it has become a trend of late, for developers to build smaller sized condos; either 2 bedrooms or 1 bedroom studio unit. This is true and happening now especially at sought after locations in the Klang Valley and hotspots area on Penang island. With the smaller units, Developers are able to market them at a competitive price and at the same time maintain or increase the price per square feet (PSF).

For example, a Developer recently launched its new property development near Queensbay Mall; a location which is considered a “hot area” in Penang. The launching price is at approximately RM700psf -800psf. What do you think, is it expensive? Well, it depends. Why? In this case, the condominiums have units in various sizes, with the smallest at approximately 700 sq ft. At RM700 psf, the unit price will be approximately RM500,000; which is within the affordability range of majority of people.

What is your opinion on this new trend? Can you accept this trend of owning a smaller unit in a good location? Let me hear from you.

Kaygarn Tan

Kaygarn Tan is the Founder of Freemind Works, a Property Investment Coach and Property Investor. He is also Author of the best-selling book The Master Key Method to Unlock the Secrets of Property Investment.

He is a Biomedical Scientist by training and holds a Masters in Pharmacy majoring in Toxicology. He is an organized and systematic person. Applying the same principle in doing scientific research to get a desired outcome, he has the property investment system down to a science. He calls it The Master Key Method.

After accumulating a portfolio of properties that gives him passive income, he decided to quit his 9-to-5 day job and started mentoring others to invest in properties. He has since adviced and personally mentored thousands of people to buy their first, second, third and more properties at 20% below market value with 6.5% rental return, using a time-tested system.

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