My view:

China, Australia and Asian country will increase the interest rates in this month or next quarter in order to curb the ever increase pressure of inflation. The increase in the interest rates will directly increase the cost of borrowings. Buyer who do not have the capability to serve the ever increase housing installment will forced to sell off their unit at discount. Hopefully by the end of the year, we will be able to see the bubble softened (but not break completely).

Hints :
1. CIMB increase interest rates but subsequently reversed. (In other words: interest rates will increase in this or next quarter, it won't be prolonged)

2. Companies that have high gearing actively proposing right issues. (Prevent the increasing borrowing cost impact the company's financial position and cash flows)

Feel free to comment!

Haha, broker and loan agent find most money in these two years

I've seen many of them changing cars and so on.

Have you save any money for rainy days?

I see government is under pressure to increase interest rates and curb the high household debts to prevent the party from game over.

Mind to share your view?

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Added on April 6, 2011, 11:50 amIt doesn't happen over night. It takes at least 6 month to a year in order to come down. Most people still have the holding power. But not until they lost their capacity to serve the installment.

It will come down end of this year. But bear in mind, my view is on general property market.

There still maybe some speculations on the property around the proposed MRT areas. Prices around these areas maybe still stubborn by the end of this year.

This post has been edited by keith_hjinhoh: Apr 6 2011, 11:50 AM

Not for those home buyer that has been saving for all these years to own these unit. I'm preety sure there many cash rich buyer out there.

Exactly, none of them were house buyer

But these maybe true for proposed MRT area.

This post has been edited by keith_hjinhoh: Apr 7 2011, 01:58 PM

A drop 50% is almost impossible, period. Unless our economy is hampered by great depression.

I'd say a gradual drop of 10%-20% from now till end of the year is more realistic.

Those who are hoping for 50% drop, you can continue to dream on. Or Bukit Beruntung perhaps?

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Added on April 7, 2011, 8:04 pmYou don't need to buy. You can always rent it

When property is booming, it's always cheaper to rent instead of buy

This post has been edited by keith_hjinhoh: Apr 7 2011, 08:04 PM

Haha... No wonder the price of the property is up, up and up...

I wonder what would happened when the game is over..

Property broker and banker has been taking a lot of advantage from the bubble currently..

This statement is flaw. They maybe able hold their price (capital guaranteed) but not capital appreciate

Is this absolute factor?

We have seen 60% drops of housing prices in the states, but neither these were true..

Why?

Well most of the inflated property price nowadays have rental yield <5%.

This is utmost unreasonable return, with large capital outlay required, low liquidity and high maintenance.

Bear in mind, the +-5% rental yield doesn't even take in the maintenance cost of condo / maintenance cost of the property.

I'm not familiar with property in Sg or Penang, therefore, I would not want to comment on that.

But having said that, rent is better than buy outright atm IMHO.

LOL! What if shits happened? We will see foreclosure sooner or later...