6 points summary that property prices is not easy to fall.
If I were to sell my property, I will never sell because market is proven bad, I will rather keep it and tell the buyer go for another owner who willing to sell cheap. Once their unit sold, mean competition is lesser too.
#1 Property Owner
If without financial issue, do you want to sell cheaper after you bought? I will definitely hold and keep it or rent it out a little bit cheaper to cut lost further.
In other hand, seller with financial issue able to sell their home cheaper compared to current market actually had positive earning most of the time.
It's simple, because foreclosure sale usually appear with Bank Auction. If not seller still need to prepare a whole lump sum to cover the outstanding shortage to continue to sell the house.
When facing financial issue still need to pay money over selling the house? Without settle the outstanding loan amount, the transaction will stuck.
We sell what we wants, price below our expectation is limited, once it sold, competition lesser.
If I were to sell my property, I will never sell because market is proven bad, I will rather keep it and tell the buyer go for another owner who willing to sell cheap.
Once their unit sold, mean competition is lesser too.
When someone selling 10, 15 or even 20% below the typical price, it’s limited to some “one” and they bought much earlier which their selling price is still positive earning.
Which I mentioned early just now, how to proceed selling if negative earning?
And there was cases reported in news too where buyer couldn't claim back the booking deposit after their loan rejected.
Some cases were scammed and purchaser will never get back the deposit; but cases for seller who suffering financial issue, they need some time to refund the money simply because of "cash flow".
Then we see NPL (nonperforming loan) percentage & unemployment rate in Malaysia
What do you think after seeing Malaysia NPL & unemployment rate, do you agree that is it very limits for the price to drop? Feel free to leave comments
#4 Property Market Cycle
Not many people is crazy enough to buy something that depreciates… The cycle of property owner, I know you want to buy cheaper which same as me and I used to be the home buyer too. Then after I bought I will only want to sell higher instead, do you?
So, I believe every seller included myself wants to sell higher and never hope for lower, happy thinking.
#5 Developer (Property Business)
Do you want to build something and sell below your cost price? If price continue to fall, developers would have to find other business to venture into.
It is all about businesses, even majority of charity also need "business concept" to raise fund and payout for their workers where short of volunteer to help the needs.
Banks would not want to lend money for property purchase if proven property prices would continue to fall.
Banks would now move all their lending to other purposes and will just skip any home loan applications by rejecting them.
By the way, banks also a business and need to make profits too. Their shareholders and huge number of employees also.