Despite
the worsening virus situation, bleak economic outlook, and the working
class worrying a retrenchment, you may be surprised to hear that the
interest in purchasing a new car or a new property in reaching a new
high.
From the chart created by iSquare Intelligence show
that the numbers of loan applied for the purpose of purchasing property
and for the purpose of purchasing a car is reaching a high that we had
not seen since the year 2013. Loan applied is an indicator to determine
public sentiment. A higher number of loan applied means that the public
is more confident in the future and is comfortable to take up a loan to
make such a purchase.
One of the reasons could be the “K-Shape recovery” that
we are facing. Another reason could be the wealth effect that leads to
public spending more due to the recent rhetoric rise in the local stock
market.
End of the day, with interest rate charting new low and Central banks
flushing out tonnes of money, buying a property by taking up a loan is
one of the easiest ways to hedge against inflation and to protect your
wealth from being eroded.
https://klse.i3investor.com/blogs/isquare/2020-10-06-story-h1514480097-Interest_in_property_purchase_are_back_to_2013_level.jsp
