The best time to invest in property is now when the cycle is ending instead of when the cycle is beginning, says property investment consultant, Dato Sri Gavin Tee in a recent virtual property forum. Citing the many changes caused by the pandemic, Tee said prices of many types of property have fallen now to their lowest level, as such “now is the best time to invest”.
This is especially so as prices are expected to rise within the next two years when recovery takes place, he predicted. “Due to rising prices of materials and labour, prices will trend higher.”
The next five years will also witness the revival of the secondary market because prices will be lower than new developments. Demand will also shift to suburban areas where rentals might even be higher than in city centres.
“Hotspots will shift too – university towns have lost its lustre due to the closure of educational institutions during the pandemic while ecotourism and wellness centres as well as green or nature environments especially those accompanied by food cultivation will see a strong pickup in demand. ASEAN has the best advantage in this regard as this region has all the best wellness and green destinations.”
Tee also cited other factors that would cause prices to trend higher in the coming months – they include lower interest rates, financial markets moving funds to the property market, and the short supply of good land.