Thanks for the article.

Am reading this, but this one is for Hong Kong only. http://www.theedgeproperty.com/global-mark...alyst-says.html

I want to note that HK prop now is definitely a bubble and it is a big one. Prices at prime areas has gone up to HKD30K psf. The cheapest one there is around HKD5K ~6K psf.!! (I am talking about the new launches price there). But whether HK bubble will burst or not is subjective becoz HK got China next door. Many many millionaires in China are willing to pay those inflated price in HK prop. Only that the residents will be hard-pressed to own one at current level of prices.

This post has been edited by lch78: Jun 23 2011, 03:06 PM

Thanks for sharing! It's valuable information and it addresses some of our discussion earlier.
__________________________________________________________________________________________________________________________________

No property bubble emerging

Recent increase in property prices has raised concerns of a potential property bubble
emerging. A property bubble is usually associated with rapid rise in property prices, driven
by excessive speculation. Property bubble will have a detrimental and long-lasting impact
on the sector—for both developers and home owners—due to the resulting sharp fall in
prices and negative sentiment for the sector.

However, we believe that the current rise in property prices is due to fundamental
reasons—strong demand and limited supply, especially for landed properties in Klang
Valley. Other than specific locations in the Klang Valley, we do not see evidence that there
is a widespread property bubble in Malaysia.

___________________________________________________________________________________________________________________________________

My conviction on the above statement is only 40%. The first q in mind would be whether the developers are providing the right mix according to the right demand. A lot of launching I notice is for the investment appetite of the buyer and not the actual need of buying house to stay(and therefore speculation).

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Rising material prices

A spike in material prices, such as the one seen in 2008, will negatively impact
construction margins and lead to lower development profits. Developers are usually able
to pass-through part of the increase in material prices, if the movement is more gradual.

_______________________________________________________________________________________________________________________________

Agree on the above.

_______________________________________________________________________________________________________________________________

Political risks

Land related issues in Malaysia are under the jurisdiction of various state governments.
The last general election saw the ruling coalition, Barisan Nasional, losing control of a
number of states for the first time since independence.
Any changes in state administration will be a challenge for property developers and could
potentially delay some of their future launches. The next general election is due only in
2013 but there are political analysts expressing strong views on their possibly being held
as early as late 2011 or 2012.

_________________________________________________________________________________________________________________________________

Need to pay attention

Agree on the near term robust outlook. However, if we were to buy new property now, it will most probably be completed after June 2013. By that time, lots of property currently launched would have been completed as well. The good thing is it might just drop the current purchase price(in that case, you lose on initial sunk in cost) and more if things turn out to be worst(you lose big time).

usa style:
1. borrow and spend
2. subprime?
3. qe1, qe2 next?




prices will rise further - can you afford anything?


This post has been edited by AVFAN: Jun 23 2011, 07:59 PM

Dear all,

Besides iproperty & thinkproperty. Any recommended website.

I am looking unit in Wangsa maju,melati or any place that can get good rental price.

Budget rm300k below. Any recommendation

Kinara Mas Condomium good for investment?
Pls PM me any recommendated unit to view.

Regards,
Eric

There is no more QE3 by the way... So no more hot money chasing assets... Slow down expected, but will a crash happen?

Am in Singapore and read the newspaper that new HDB flat launching is selling at 880k. Good thing is they give a hefty discount of 120k .

did anyone listen into One.fm yesterday? about what najib said about govt getting big names like Sime Darby to build affordable houses for us?

any truth to it?

This post has been edited by cleo87: Jun 24 2011, 10:10 AM

True that Najib intends to build more affordable homes, but I am not sure if Sime Darby is one of the "selected" developers.

he named Sime Darby

there will be thousands of 800sqft basic apts in kv and thousands of single storey houses in "rural" areas for this, supposed to be <220k as announced so far. only households <3k income will get 100% loan.

sime darby and other majors have built low cost apts in many places, nothing new...

Singapore flat's price can match KLCC condos price already...

fixed!

Problem is where are they gonna build these "low-cost" homes? There is practically no more places for them in PJ/KL... they would haf to build them much further like towards the airport and outskirts of the city

isn't that saying myisans are actually poor and few foreigners want them?!

---

Added on June 24, 2011, 10:55 amoh, you can forget kl-pj proper. the last news i read... bangi, nilai included. can expect dengkil, kuala selangor too...

This post has been edited by AVFAN: Jun 24 2011, 10:55 AM

This is where they are going to build:
http://www.thestar.com.my/news/story.asp?f...6792&sec=nation

Sungai Besi airport... This will drive the development of Klang Valley towards the South... Growth areas moving forward will be Sungai Besi + Puchong + Bukit Jalil + Seri Kembangan areas...

But where would the location of these properties be? Takkan the they build the house near the airport and expect we people working in KL to buy it...

Sungai Besi airport... The airforce will relocate to Negeri Sembilan...

gotlah build near KLCC somemore...Kampung Baru

Yes......but will be reserve to bumiputera ..... no chance for us....

Forget all these affordable housing projects. These are merely election gimmicks to try and show that we have a caring Gov. Same as all those MACC investigations into high profile corruption cases. All merely eyewash for the elections this year. Charged is one thing. Being convicted and put into jail is a different matter all together.