PETALING JAYA: While the volume of property transactions might go down, the average transacted prices have always been on a steady rise since 2001, a proof that the value of the property goes up over time regardless of the market, said Malaysian Institute of Estate Agents secretary-general Chan Ai Cheng.

Speaking at the StarProperty.my Post GE-14 Forum, Chan said the drop of the average transacted price during 2013, 2014 and 2015 is possibly due to the implementation of Goods and Services Tax, adding that the market sentiment and tightening of loan policy resulted in the dip of transaction volume in 2017.

However, she said the property market trend for the past 17 years from 2001 to 2018 had shown a steady rise in value, peaking in the year 2011 and 2012, and that the trend of over seventeen years cannot be wrong.

According to Chan, the volume of transactions for the year 2017 has dropped considerably when compared to the year 2016, but the value is still increasing. Based on her research using information from National Property Information Centre (Napic), she said industrial developments are the only one that suffered in 2017 with a drop in value by 4.2%.

“A seller’s market is a condition where there are more buyers than there are properties for sale,” said Chan, adding that the situation happened in 2011 and 2012.

The buyer’s market, on the other hand, is signified by the surplus of properties for sale, slower transaction rates and the buyers, picking and choosing among the available supply pool.

“During the slow down and slum time, we will see many agent sign boards being placed for a long time, cash flow of investors have reduced, the difficulty of obtaining finance and property prices maintaining, with properties taking a much longer time to sell.

“In the recovery phase, people will frequently talk about the market sustainability.

“The people are confident and positive towards the market outlook, and they are ready for the future,” said Chan, stating that most people reflected such an attitude.

The new government under Pakatan Rakyat are proposing changes in many areas that will affect the property factor, and change will always take time.

As a fundamental rule, Chan believed that property is a medium to long-term investment and property has no choice but to increase in value.

“Property is a hedge against inflation and a basic human need,” she said, adding that the property market is turning around.