Why I'm sharing this topic? I believe lately a lot of news out related to property construction companies where they have announced about contracts sealed that worth a lot. Do not forget, while the property construction companies sealing a huge amount of contracts, those pure property companies also having own construction going on. And many are already on-going and some constructions shown slowdown in progress even some seeing construction putting on hold.
What does it implies? To my limited knowledge, I personally think that in from now on to 3 years down the road, there will be more and more property available in Malaysia. A lot of affordable houses will be in everywhere as well. The consequences will be "over production" of property.
If I'm correct, then it still not the worst situation. The situation will be worst if Malaysia economy is bad and jobless increases where many will be unable to pay for debt. Subsequently, bankruptcy may increase.
How could the bankruptcy happen? Because a lot of property buyers are holding a lot of property on hand for investment. Jobless will cause buyer unable to continue installment. Jobless will cause tenants moving out and unoccupied property will increase.
To manage this situation, many property buyers are trying to let go few of on hand property to reduce risk. New buyer will also valuate the acceptable risk before purchasing.
As such, I do not seeing good for those property counters including property construction counters. I would expect potential brightness of property after 2020.
I might be wrong but this is my personal view only.
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