Jun 25 2011, 07:21 PM
QUOTE(TheDoer @ Mar 24 2011, 04:32 PM)
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?
Demands come from the tenants who can not buy a place to stay or to operate their business. Since BNM control the credit facility and the property is way beyond common aforbility, more and more people will need to rent....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?
Moreover, more and more young man pouring to KL or PJ to get a better paid jobs, where are their staying? They need to rent before they can affold years after... It is said that renting is cheaper than buying.
Quote
0.0651sec
0.87
7 queries
GZIP Disabled