What phase is the property market in now?

Purchasing property can be a mischievous, but definitely rewarding, investment. The property market is influenced by supply and demand, approval rate of loan , and the health of the Malaysia economy, all of which are constantly fluctuating. Investor or home buyers, paying for a property , regardless of size or location, is a substantial investment, therefore it is important to understand the current trends affecting the market.

According from TheStar news, "The excess in supply of residential properties is expected to clear in three to four years, paving the way for a recovery in the property market, says housing industry experts.

The new National Information Property Centre (Napic) 2016 report shows that the incoming supply of residential properties has inflated to 94,124 units, compared to 82,837 units in 2015. 

Incoming supply refers to those properties undergoing construction work to be completed in three to four years. The incoming supply figure looks alarming at first glance. In actual fact, however, about half of the amount has been sold."

Read more at [Residential supply expected to recover in 3years.]

In the news, it is also mentioned that the number of unsold completed projects in Penang has doubled over the years adding on with the pressure of more new launched projects.
The residential supply has been overflowing and the demands are not that high due to the financial pressure for this few years ( especially the drop of Ringgit ). To the good news, the analysts did mention that if foreign funds does not move into the market, the pricing of the unsold houses will probably go into a correction in the next few years.

What would this mean?  

The supply of houses is too much compared to local demands, and the prices will reduce to ensure all the completed project units are being sold before launching more new projects. Definitely a good news for all of us, investors or not. The houses will become slightly more affordable and a good chance for you to step into the boat before it launches into the sky again.  

And what comes next after the price reduction? Appreciation! It is always a cycle, wait for the timing and invest with a good strategy!

The property market is now undeniably in a consolidation state where there are good opportunities there for people to invest. New projects with an advantageous location or connectivity and those delivered by reliable developers will continue to attract buyers as they tend to appreciate much in the long run.  

W.