Section 5: Understanding New Supply Impact
📈 Capital gain and future property price growth are heavily influenced by supply and demand dynamics. When demand exceeds supply, prices tend to increase. When supply floods the market, prices may stagnate or drop.
That’s why PropertyLab provides visibility into new upcoming supply in your chosen area. The table shows the number of units from nearby projects, their distance, average PSF, and unit configurations (2BR, 3BR, 4BR etc.). This helps investors anticipate competition and plan accordingly.
📊 Real Insight: Past Oversupply Case Study
In 2023, PropertyLab observed an oversupply of 3-bedroom units in Maluri (Cheras, KL), mainly from M Vertica. As predicted, the 3-bedroom rental market weakened over time, followed by competitive room rental prices and slower appreciation. This reinforced our data-driven strategy.
❓ So, What Should You Look For?
- Understand Upcoming Supply: Check how many similar units (e.g. 3BR) are launching soon. High incoming supply = more competition.
- Check Specific Layout Saturation: For example, Cyberjaya saw oversupply in studio units — which drove rental rates down.
- Assess Demand Drivers: Ideally, buy in areas that have strong current demand and even more incoming demand like future MRT stations, malls, commercial hubs, or job growth zones.
- Don't Just Buy Below Market Price: Ask whether the price could fall further due to future oversupply. A property that’s “cheap” today might drop further tomorrow if no one wants to rent or buy it later.
Example Analysis: From the chart, Aster Hill has 1,010 units, most of which are 3 bedrooms. If you're planning to buy a 3BR nearby, you may face rental competition. Skyline Kuchai adds 1,800 units, including 800 units of 2BR and 600 units of 3BR. This insight can help you decide which layouts are likely to stay competitive.
🧠 Recap: Smart Investor Questions
- Are many units like mine launching soon?
- Is this area already oversupplied?
- Are future developments (MRT, malls, offices) coming that could boost demand?
- Will my layout (e.g. 2BR) stay desirable, or face stiff competition?
📘 Continue to Section 6: Proximity to Amenities