The gist of the article is prices will continue to go up, but at a slower pace. I've no problem with that, as 50-100% increase in prices over 2 years is not sustainable. But that doesn't mean the market will crash. Checked the prices of several properties just now ..... prices have continued to go up!

This post has been edited by Veda: Mar 23 2011, 02:35 PM

prices will continue to go up, as long as people are optimistic enough. But when we look at the actual value of a prop, things maybe different.

Looking at the commercial market in Melaka. There are lots of vacant shop houses in Melaka Raya the paint has long pilled off, They extended it and build Pulau Melaka, it turned out to be an abandon shop house project. Only the mosque is functional.

At the heart of Melaka raya there is a huge abandon building project, I'm not sure what it was meant for. If you stayed in Hotel Equatorial, you can see it, it's quite an eye sore.

Also within Melaka Raya, is plaza melaka raya. That place, is a ghost town. The fastfood outlet, and supermarket closed one after another, later it was taken over by pirated PC DVD sales. But now it has completely closed, now the ground floor is occupied by a mamak which opens towards the outside.

Meanwhile, they just opened Hatten Square next to Dataran Pahlawan. It's suppose to be a digital mall, but you can guess, with it's high rental, it can't compete with the current outlets Malaccan's get their hardware from. You guys should have a look the place is practically empty. Hatten Square is good for its parking though, because we are facing jams and parking shortages, right after the government directed all traffic there in the hopes of making that place into a vibrant commercial center. (Simply put, what they have done is to draw away business from other parts of town, like hang tuah, and bunga raya.)

Talking about digital malls, There was once a new digital mall at hang tuah, despite Fajar and hang tuah mall that was dying, and Great Wall, which had died long ago, there was a new little digital mall that open there. There was even a cinema, which was showing Spider Man 2 at that time. Guess what happen? It closed down before it picked up. The building is abandon now. Even Pizza hut had closed.

Mean while, Tesco Sentral, is facing trouble, because Jusco just open next door. Traffic was made in such a way that it made it inconvenient for people to go to tesco, I wonder who tesco offended. Even with all this troubles, Tesco opened a new branch in Cheng. Business is average, better than hatten square at least. Same can be said about Giant, which open at Sentral.

Oh and don't get me started with Melaka Mall, it changed it's name and management a handful of times. Right now it's main business is Parkson, and a cinema. People only go there for the movies. I heard that Parkson was forced to open there due to certain "reasons".

So... anyway, what I'm trying to say? This places are all build upon unrealistic optimism, a big waste of materials and land. Even though nobody wants to go there, do you think the unit there are cheap? nope.

This post has been edited by TheDoer: Mar 23 2011, 03:09 PM

the price is dependent on the seller
seller can jack up even higher price
they can say ok today i'll sell 350k.. next 2 month i'll sell 370k.. then 400k
the price they state oni ma..
important thing is.. did they really sold their house ? or they're just praying for luck ? waiting water fish to buy their props..
those that can tahan monthly installment.. ok la.. they can put whatever price they like..
wait till those kenot tahan.. boom ~ here comes the auction

This post has been edited by CKHong: Mar 23 2011, 03:11 PM

Yes, bro. You are right. Thank you for sharing your opinion. Much appreciated!

Bank Negara: Household debt at 12.5pct in 2010 on rebound in consumer sentiment
Written by Joseph Chin of theedgemalaysia.com
Wednesday, 23 March 2011 18:06 - Last Updated Wednesday, 23 March 2011 16:41
KUALA LUMPUR: Bank Negara Malaysia said the household debt level expanded at 12.5% in 2010 from 9.4% in 2009, due to financing for purchase of properties and for personal use.

However, this had been largely offset by a corresponding increase in personal disposable income at the aggregate level.

In its Financial Stability and Payment Systems Report issued on Wednesday, March 23, it said the ratio of household debt-to-GDP remained almost unchanged at 75.9%.

BNM said the financial assets of households expanded at a slower pace of 13.1% (2009: 14.9%) for the year. The growth in household financial assets was mainly attributed to the strong performance of the equity market, which bolstered market valuations and holdings of
equity by households.

“With one third of household financial assets in the form of equity, households are susceptible to volatile swings in equity prices as observed in 2008, when a 39.3% fall in the FBM KLCI precipitated a decline in household financial assets,” it said.

As at end-2010, the ratio of financial asset-to-debt remained relatively unchanged at 238.4%, with more than 60% of the financial assets held in the form of highly liquid assets.

“Liabilities of households expanded at a slower rate relative to financial assets in 2010. The growth was led mainly by financing for the purchase of properties and for personal use,” it said.

The pace of growth however, was higher than the previous year (12.5%; 2009: 9.4%), although this has largely been offset by a corresponding increase in personal disposable income at the aggregate level.

The signs are there it is just a lot of us are too blind to notice. Every company can become a developer, major projects everywhere, everyone talks about property investment, media telling how much further it will go up.

this is DANGER!!!

though, it doesnt mean the bubble will pop immediately. I believe the US property bubble took 6 or 7 years to burst?

Good debts or bad debts. The choice is yours.

If there are no buyers, how can property prices continue to go up? It's a matter of supply and demand.

Property prices in good areas are not dependent on people looking to buy their first homes. From my observation at property launches and from asking ppl in the RE industry, most of the buyers are - 1. older, cash rich folks 2. foreigners 3. Malaysians working overseas. Of course, this does not apply in places like Kajang or Klang.

So prices in good areas will continue to go up even if some ppl choice to "boycott" buying

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Added on March 24, 2011, 1:55 pmPpl have been saying that for many years

Other than Mont Kiara and KLCC area, there's hardly a glut in properties.


This post has been edited by Veda: Mar 24 2011, 01:55 PM

yep, a matter of supply and demand, but u forgot the big one - speculators or flippers buying and holding by the dozens. and we know there are plenty just here! if they can hold forever, then it is a non-issue.

dun be so sure about "hardly a glut". when you see it, it's too late to change yr mind.

Interesting piece on properties in China. Bit difficult to imagine 64 million empty apartments.

China's Ghost Cities

If they buy the "right" property, they can hold "forever". If cannot flip, just rent out lor. You'll be surprised at the demand for places to stay in the right areas.

Nah, other than those 2 places, there's no glut.

of course, when we get to the specifics, there will always be a distribution of sure winners and sure losers with the majority in the middle.
question is how many will keep winning. everyone likes to think he/she is the one!

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Added on March 24, 2011, 2:51 pmthanks... good info. just when everyone has the impression that china props are still hot-hot...
64 million empty apts. largest mall in the world opened for 6 yrs now is empty. many more like that.

like the part commentator said, "these apts don't improve people's lives but add to gdp growth. gdp quantity, not quality", "prices are from 70-100K USD, only investors who live elsewhere buy them. when prices come down to near zero, some may buy them to live"!!!

let's hope it doesn't happen to some projects here...

This post has been edited by AVFAN: Mar 24 2011, 02:52 PM

Do you think that implement new leading rules for banks in Q3 2011 will impact property market?

http://www.btimes.com.my/Current_News/BTIM...icle/index_html

If it is true, then nobody would to sell as price will go up foreover.

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Added on March 24, 2011, 3:26 pmLike Warren Buffet said, in time of optimic we should sell. Will it going to happen in property market?

This post has been edited by Nepo: Mar 24 2011, 03:26 PM

lol can't get ur meaning..
u're + my comment or - my comment ?

The demand is from the speculators themselves. It is not self sustaining, but it won't last.


1. Old cash rich folks. Instead of putting their money under the pillow they heard from people that props are a good hedge against inflation, and sure to go up. (Speculation)

2. Foreigners. They heard that prop market here very cheap, and seems like will keep going up (Speculation)

3. Malaysians working overseas. Donno what to do with money while working abroad. Unable to afford house overseas. Hope to use prop to stash their cash, which they hope they could use when they come back. (Speculation)

The real demand comes from genuine home buyers. but they are lacking.
How is the prop price going to increase without demand from genuine buyers?

This post has been edited by TheDoer: Mar 24 2011, 04:33 PM

i second that
at the end.. flipper, speculator , investor, they need genuine home buyers to buy those props from them..

i remember one of the forumers here keep stressing that there will be a lot of new grads coming out...

how about this, speculators buy from speculators, hoping to get in the game before it goes up? haha. they can keep each other in business. those 3 groups of ppl are very small group but they have cashflow to keep each other afloat. nobody took into account that they could be selling to each other

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Added on March 24, 2011, 5:16 pmfresh grad cannot afford whatever these people are offering. so there is no point to that unless they are willing to hold it for about 10 years for the graduates to reach that kind of earning capacity

This post has been edited by cleo87: Mar 24 2011, 05:16 PM