An interesting article written in 2010 by Azizi Ali, the property investment expert, linked below:

http://findarticles.com/p/articles/mi_qn62...1/ai_n53096451/

He is saying the property is bursting... But it has not burst until today... It seems he is wrong so far, but he could be right too, as it may happen tomorrow... It is not often that you see someone who teaches people how to make money with real estate saying that the real estate is bursting.

But, this is the counter argument today, by TA Securities, citing scarcity of land and increasing cost...

http://www.theborneopost.com/2011/06/22/de...onary-pressure/

I have still not made up my mind...

This is another interesting article:

http://biz.thestar.com.my/news/story.asp?f...1&if_height=642

According to the article, house price should be 3 - 4 times of one's annual income. In Klang Valley, average household income is RM6k. In a year, the household income is RM72k.

In other words, the average property price should be RM288k. Average transacted price in KL last year was RM488k, which is RM200k more. Who is pushing up the price? Speculators? Or perhaps, on average we earn more than RM6k? Hmmm...

I have been looking at Kota Kemuning. Some of the properties were listed as RM500k++ about 1 month ago (Indah Residences to be exact), and just for the past 2 days, it is going for RM600k++. RM100k within 1 month? Is that reasonable? Who is pushing up the prices? Do we really have such big demand for housing? Then the next question is, will it ever drop? If it is not dropping, I really hope our salaries will increase faster than the increase in property price. Otherwise, we will never be able to afford buying our own houses anymore. But that is already the case in Shanghai and in Singapore.

We are going to have our own scheme soon too... Announced by Najib recently, to cater to those who are starting out and cannot buy properties which are beyond reach now.

This is another interesting article dismissing the bubble. Interesting read, especially the chart which shows that for the past 10 years, the housing price in Malaysia has been growing, but never at all dip below zero into declining stage. Note however that this is based on average.

http://doc.research-and-analytics.csfb.com...AVcU7aWprtM8%3D

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

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

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...

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

It's the Malaysian version of HDB flat?

If the bubble is bursting, it will only burst after election... That's assuming there is a bubble to begin with...