Lately I suddenly feel like I don't know how to be a property agent. Many of my buyers asked my opinion whether the houses they like were a good buy, frankly speaking I don't know what to say. Truith is all I have in my listing are expensive goods.
Yes, house price keeps increasing although it is already expensive. The point is there are people buying, when the supply is demanded how can I conclude it is exorbitant ? I have millions of reasons why pricing should be declining or at least stabilizing. But it just goes wild.
Not long ago a double storey terrace house in Pulau Tikus was listed in the market for RM820K, where the max value I could get from licensed valuers were RM700K. Guess what, it was sold at RM810K after few weeks. Another case study was a heritage house on Stewart Lane, almost 6 months ago I had few buyers were interested in, the owner insisted RM570K nett. Then a buyer engaged a licensed valuer and reported the market value was only max RM500K, the house owner was offered 10% more than the valuation price at RM550K, we thought it was a couragous offer. But the owner declined, so the sales was off. Recently the property was sold, we got the valuation price at RM570K. Luckily my buyer caught the last train before the owner was itchy to increase the price again.
Therefore I sincerely feel sorry to those investors, I can't comment your catch is fruitful, at least for now. But I can assure you is that there has not been any of time in the Penang history that landed properties suffer from depeciation. Further more currently our market is flooded with cash, many with handsome amount of dollars looking for places to park. Hence Penang property market with steadily appreaciation charactor becomes one of the best choice to fight against inflation.
So, in the case that you have found any that you like and it is within your budget, go for it. Don't ask for opinions from others where you may not like what they would tell you, and dont't expect blessing from your bankers about the price. After few years you should be happy that you bought your property.
Thank you.
Regards,
Raymond Loo
6/Oct/2009
