All,
Looking at the amount of units that are coming online in the next few years are staggering. The peak from the new milleneum does wonders for all investors. KLCC being rm450-600 to well above rm1200/psf now. In fact almost all properties enjoy good capital appreciation over the last decade. Puchong was the new Bangsar (in terms of appreciation). Old areas were revisited and boom (SS2's Ameera & Five Stones)! As words spread around good yield from property investment, more people are jumping into the bandwagon. This still does not deter the property growth here. Probably because the more people buying, the faster the appreciation of the property. It's therefore not unusual to see ah beng and ah lian at launch to sapu 5 or 6 units at one go.
Fast forward to the current decade, 2010, developers are getting more creative in their marketing. SP Setia started the ball rolling with 5/95, 10/90, 15/85, 20/80 scheme of things. A whole bunch of other developers gave similiar 'gimmick'. Property launches were even more in demand. Transactions were frenzied through break neck speed. As the previous decade was good to some, the new investor (especially youngsters), start jumping in as well. The banks and government jointly with the developer provided a much lower entry platform for new purchasers. BLR +ve became BLR -ve. Construction payment were waived. 1st 2 years of maintenance/installment were deferred. Those who only dreamt of owning a property rm300k and above previously suddenly finds it cheap buying it themselves.
With the current outlook, it seems almost everybody can afford their own property and more. But alas, how long can this dream last? If everybody is biting more than they can chew, who would continue providing the food? Come 2012/2013 will be a big hurdle to a lot of people. All who bought in the last 3-5 years will start servicing their full loan amount. BLR is surely going to reverse their lowest rates in decades. With prices spiralling up, how would the property sector fare then? What is going to happen to "Mr. Beng" who bought 5 units? Or to "Ms. Lian" who wallop 8 units? What was previously payment of RM1000 per month ballooned to RM1500 to the banks (per unit basis)?! What was positive cashflow of RM3500/month suddenly turning into negative RM7000/mth (from fully tenanted 7 units to becoming only 2 tenanted units with discount)! With even more choices and bargains galore come 2012/2013, people with holding power are able to drop rental rates to their comfortable levels. But to the Bengs and Lians again, how are they going to survive this?
The picture does not seem to be pretty. But it certainly seems like a painting that we are painting.
Please share your views with me on the above.
Cheers!

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