Property market issues of today, explained

In an informative but long article by Thean Lee Cheng in The Star, the author talks about several issues affecting the property market today.

“Prices are unlikely to increase while there is an overhang of 40,000 unsold new houses.” Thean used the right word instead of using “oversupply” which doesn’t reflect the actual demand for affordable properties. The government wants to ensure more people have a roof over their heads at an affordable price but not by pushing down property prices that have been transacted.Banks have their exposure in the housing market and will be worried if all properties prices suddenly drop. This explains why property prices have not dropped despite a slowdown in transaction numbers since 2013.Homes in some wrong locations may be remedied with connectivity.

The rate of unemployment continues to be low and there are very little speculative activities pushing up property prices.As for speculative activities, try to buy an overpriced property today and see if the bank will approve the loan as it is.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

MIEA attributes property market slowdown to financing issue | Malay MailKUALA LUMPUR, March 15 — The slowdown in the property market is largely due to the problem of financing as demand remained intact, said the Malaysian Institute of Estate Agents (MIEA). Its President Eric Lim Chin Heng said the government and particularly, Bank Negara Malaysia, seriously need to...
Source: malaymail - 🏆 1. / 86 Read more »

Property market expected to recover in second half of the yearThe Malaysian Institute of Estate Agents suggests, however, that the government put more emphasis on the secondary or sub-sale segment of the market.
Source: fmtoday - 🏆 5. / 72 Read more »