In general, sales performance is still in under pressure, as absorption rate in Q4 2019 only reached 87.2%. Despite the different types of sales promotions done, transaction volume has yet to show improvement. Investor-type of buyers are much concerned about the oversupply situation, which might lead to the downward pressure in rental yield.
Potential buyers are generally expecting to see more fiscal stimuli from the government to accelerate the real estate sector, a reduced consumer loan interest rate or more significant discounts, and benefits from developers. We think now is the right time to enter the market as it is currently a buyer’s market. The wide plethora of options (unsold units) will lead to intensive promotions as developers focus to clear off their inventories.