I think bankers now is trying all their best to get very high bonus.. cus they know.. once bubble.. they will get 0 bonus..    and they might need to change job~

ya.. not need to work loh.. just buy properties and rent to ppl...

Bank lending rates affects property prices. Low rates stimulate demand. Those with money prefer to invest in properties as opposed to putting their money in FD. Low interest rates also mean its cheaper to borrow. This starts the demand cycle pushing prices up beginning of a upward spiral.
If it happens the other way a downward spiral will be initiated. but nobody want a downward spiral to start except for those who are cash rich and those in real need for properties.
Major developers and valuers help in raising prices of proerties. Higher property prices paradoxically increases demand and gives rise to speculation.
Real price increases are caused by increases in building material, labour and land costs. This is also the main reason for recent price increases.
Whether there are real demand or speculation is best determined by rentals. Poor rentals with respect to their values indicates an oversupply situation.
Location of the property also play a major role in wild fluctuations of prices.
When the bubble burst, and we are on this trend now, those highly speculative areas will suffer the biggest drop in prices.
An area that is highly speculative can be indicated by the number of units for resale when the units have just been completed.

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Added on June 20, 2011, 1:09 am
I have a friend who doesn't like to buy properties and would rather rent.  This is ok if he has got other investments that gives a better return than properties. One property that cost rm300k 7 years ago now costs rm900k. So if you can invest in a business that gives you better returns then rent. Also don't forget if you had paid rent for 7 years you would have paid rm126k!! You could have invested in a house already!!

prices of property will not drop much even if there is a property crash. The most it will go down would be 10 - 15%. With the prices of construction material keeps rising, how can anyone see that happening?

thanks to QE1 and QE2, inflation is one way up

my opinion is
crash only comes unexpectedly

i also work in MNC fortune 500 company
there are times we are expanding, hiring like cracy
then suddenly economics down
cut cost, freeze hiring any where..., voluntary resignation ...
not only my company
all the competitors experienced the same
meaning even big MNCs also cannot predict and sometimes over optimistic

well that is why we call crash...

Boleh juga, Thailand, Brunei, Vietnam, Philippines etc plenty of choices

u buy or not? buy to sell at 900k?