Making a purchase on properties is one of the largest commitments a person makes in their lifetime. When it comes to buying your dream property in Malaysia, prospective buyers have two options to choose from – the primary market and secondary market. The main question that many first-time buyers ask is what do they need to know about the types of properties? It is important to know about these two markets as it affects your value buys of property between these markets.




 

Primary Market

Primary markets refer to new homes that are typically made available to buyers at the project launch, as part of continuous development by the real estate developer. Large cities with a significant population and well-established commercial construction make up primary markets. This would mean that the primary market often develops in a well-populated area as thedemand is higher and a guarantee of buyers is available.

A fault liability term provision sometimes referred to as a warranty period, is included. This is the time window that starts on the day that purchasers obtain ownership rights and the keys to their building, wherein the contractor is obligated to rectify any flaws. For private and strata-titled properties, the defect liability term is 24 months and 36 months, beginning from the moment of the lease agreement, respectively. Mortgage holders are to inspect the building throughout this time for any harm, flaws, or poor construction and notify the contractor so that they can be fixed at no cost.

Benefits of Primary Market

Purchasing homes on the primary market in Malaysia has a considerably smaller entry barrier than purchasing property on the secondary market. Numerous developers provide rebates and cover some expenses, including those related to legal, financing contracts, and stamp duty fees. Developers typically underprice these assets or price them at fair value.

As a result, you are likely to experience a good rate of capital growth, often even before the building is finished. There is less money needed for renovation because the properties are brand new on the primary market. Additionally, you can pick the apartments you want (if they’re available) and benefit from government subsidies or developer discounts.

However, it is definitely important to do your research on the developer’s economic situation, brand reputation, and credibility to ensure that you are investing with a proper developer or real estate agency, like iMazing!

Secondary Market

The term secondary market refers to formerly held buildings that are for sale in existing neighborhoods and developed regions. These homes are put out for rent or sub-sale, and succeeding owners would either lease them out or occupy them. The initial buyer and the second buyer are involved in the process, which might happen repeatedly.

This is the best option if you’re wanting to lease a property or would rather purchase an existing property.

Benefits of Secondary Market

Since you can see precisely what you are dealing with, it is a matter of “what you see is what you get” when purchasing properties on the secondary market. You’ll be aware of the precise location, surroundings, nearby residents, and amenities.

Additionally, you can look at the upkeep quality in the unit. If you buy houses on the secondary market, you won’t run into issues like setbacks or canceled projects because the property has already been developed and you can move in whenever the legal paperwork is finished.

With the secondary market, you would have to be swift when deciding the property of your choice due to high demand for rental properties. According to PropertyGuru Malaysia’s Property Market Report, there is an increase in rental demand, spiking up to 57.91% in 2021 compared to 2020 (Property Guru Malaysia, 2022).

Though you would have to be swift, you should also keep your attention to the details of the house of your choice to ensure that you find any defects and notify your agent before finalizing the rent.

All in all, neither is better than the other as it really depends on your personal goals and what kind of property you are looking for. Lucky for you, iMazing offers professional real estate services specializing in both primary and secondary markets and our negotiators are just one call away. Click here to view our iMazing projects and search for your dream property with us!