FYI, my search results with keywords "Setia Alam" on iproperty appear to have 97 pages or 968 properties listed on the market.

Please don't attack me wasting your valueble time, I DID NOT analyse the search results.


http://www.iproperty.com.my/property/searc...99&lo=&wp=&ns=1

It's ok, I wont attack you We are updated daily with transaction and Setia Alam is one area where I see that almost daily there will be subsale transacted. I don't think iproperty is a good indicator as compared to actual transactions

It's good to think positive, but it's even better to have a back-up plan if your "safe areas" are also affected.

Analysts expect the momentum of net interest income growth to slow amid a weakening global economy.


Kuala Lumpur: Malaysian banks had a good second quarter, with earnings coming in better than in the first, but analysts expect the growth momentum to slow amid a weakening global economy.

Each of the eight local banks turned in a net profit that was largely in line with expectations, with the exception of CIMB Group Holdings Bhd which came in slightly below.

Research house RHB Research Institute said it was maintaining its "neutral" call on the banking sector.

"Overall, despite another quarter of record profits, there is no change to our sector call. We see net interest income growth slowing ahead, amid loan growth that may have already peaked and net interest margin pressures due to intense competition to grow both sides of the balance sheet," its banking analyst David Chong wrote in a note to clients yesterday.




The banks' aggregate net profit in the second quarter was 5.1 per cent higher when compared with the previous quarter, and 13.4 per cent higher when compared with the same quarter a year ago, to hit a net high of RM4.4 billion.

The record earnings were boosted by stronger non-interest income and lower provisions for bad loans, which reached a new low.

"Both these, in our view, are sensitive to economic conditions and the situation could reverse if economic conditions deteriorate," Chong cautioned amid worries that debt problems in the US and Europe may lead to another global recession.

Banks tend to underperform the broader market in any economic downturn.

"At this stage, we are not calling for a 'double-dip' recession but think that the risk of a slower-than-expected economic recovery is rising. Thus, pending further economic data, we are 'neutral' on the sector," he said.

At home, the rollout of government projects under the Economic Transformation Plan (ETP) may help cushion banks' slowing growth, but much also depends on the execution of these projects, he noted.

Banks such as Malayan Banking Bhd, CIMB Group Holdings Bhd and Alliance Financial Group Bhd surprised the market by paying better-than-expected dividends in the second quarter.

Other positive trends noted in the quarter were resilient annualised loan growth of 17.4 per cent and slight NIM (net interest margin) expansion from the previous quarter as banks benefited from a 25 basis points hike in the Overnight Policy Rate in May.

Banks' asset quality improved further, with aggregate gross impaired loan ratio at 3.3 per cent compared with 3.5 per cent three months ago.

Read more: Banks' earnings growth to lose steam http://www.btimes.com.my/Current_News/BTIM...l#ixzz1WwwGXhgk




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what is the value of a 1500-1800 square feet condo, with sea view.

Bro, just look at the global event. Greece is gonna blow up soon, and some banks to follow... it would be unwise to ignore it and think that bolehsia is immune.

If you are not leveraged too much in the property market, and don't have to force sell during downturn to raise fund, why not sit tight and continue to collect rents? Who cares if the property prices drop 20-30%, if you are in the property market for long haul, if you are not flipping properties upon completion, and have positive cash flow during downturn to service your debt.

But I don't think buying an overpeiced property now with a big mortgage and expecting further capital gain in short/medium term is a wise move.

It is the selling very fast mania that worries me, people are trading houses like commodities these days, we have an artificial demand caused by historically low interest rate, easy loan and developers' goodies.

No matter how you look at it, throughout history, easy credit causes bubble after bubble, and it will not end well. We cannot have sustainable investment only based on borrowed money, we need to have savings = capital for investment.

and look at the household debt to disposable income level in bolehsia, it is sitting at 140% now! Even higher than the USA! How further leverage we can go?

Households simply cannot take on more/larger mortgages to further inflate the housing bubble... these are official statistics, please, please don't be in denial anymore, you will lose your shirt.

http://consumer.org.my/index.php/personal-...-it-sustainable


http://investmentwatchblog.com/it-is-getti...ult-for-greece/

“I expect a hard default definitely before March, maybe this year, and it could come with this program review,” said a senior IMF economist who is keeping close tabs on the situation. “The chances for a second program are slim.”

This post has been edited by debtismoney: Sep 4 2011, 01:42 PM

this rental thingy is more risky than most people think. while there are surely some that will hold very well, many won't give the rental desired. i have a condo rented at 1.6k for a couple of years. when prop prices go up since last year, i thought i could raise rent. no chance, now may have to drop to 1.5k since there are thousands available for rent everywhere. think again if buying now for rental. ok, sure some will say they know where to buy, recession proof, sifu methods... if bought long time ago, can take ups and downs easier. if paid a high price recently, nightmares may emerge.

household debt - i'm on same frequency with you. when bolehsia had good crude pumping and strong fdi inflows, the debt levels were lower. now with less crude, little fdi, high capital flight, a bankrupt gomen and millions of illegals looking for food and other items, the situation is quite dire, imo. maybe shielded in some ways due to certain controls but when a spark ignites a global recession, bolehsia will not be spared in any way. the huge households debts will force a couple of the weakest banks to go under and start a chain reaction for the shape of things to come. rm devaluation is a possibility.

i'm scared this time.

This post has been edited by AVFAN: Sep 4 2011, 02:49 PM

dun feel shock after GE over... hehe..

actually the bargain is started for prop now in the open market.... thing just getting worse to worse... from now till the next few years.

This post has been edited by sampool: Sep 4 2011, 09:01 PM

Cheras height in Cheras just going to raise another 10% I heard starting from tomorrow...The property market is slowing but still a lot of project is on going...Price seems to be stabilize vv soon.....but bubble may be not yet ...

Then you should buy more ma, increased 10% wor. so much wor

all is base on prediction on severity of bubble (u can just monitor banking stocks from now till next 6 months..)... human react slow to recession..

same question here, developer raise 10% ONLY... y not 15% or even 20%? human feel cheap thing not good... expensive is better... sometimes ago i have explained a movie about a shipping company going to bankrupt and the boss using the same method and able to attract more contract from their clients (kiasu attitude)... many boss is doing that... with condition the human feel economic is still in good shape...

This post has been edited by sampool: Sep 4 2011, 09:47 PM

averagely developer will raise the price of 5% each phase, but there is not any indicator for that. Price increase still depend on risks/profits.

simple and very common sense, costs to produce products + profits (as expected) = selling prices.

if no market, do not make the products lo... (passive method)

or

if no market, create the market demand lo...(enhanced value)

Bankers plot course as sovereign debt clouds loom
September 05, 2011

FRANKFURT, Sept 5 – Top European bankers gather in Frankfurt for a two-day conference today to share insights on whether the latest sovereign debt crisis squall could yet turn into a financial market storm.

Predictions of dark clouds over the German city’s annual Banks in Transition conference are a fitting backdrop for the gloom in the capital markets, where fears over sovereign defaults in euro area periphery countries have sent investors scurrying for shelter, halting the takeovers and stock market listings that are the lifeblood of the bloc’s investment banks.

Bank shares dropped sharply early today towards the two-year lows they reached in August, as if to confirm the gathering gloom in the sector. The STOXX Europe 600 Banks index was down 2.99 per cent at 0725 GMT, leading European shares lower.

Deutsche Bank chief executive Josef Ackermann will set the tone on day one of the conference with a review of the macroeconomic and regulatory changes that many bankers say are crimping banks’ ability to earn their way back to health.

Germany’s largest lender and global investment banking player has already warned that reaching its goal of €6.4 billion (RM27 billion) in pre-tax profit for this year was becoming more difficult and required a quick and sustained resolution of the European sovereign debt crisis.

The crisis has kept banks hostage to market concerns about their capital strength and access to funding, concerns that were stoked again last week when the International Monetary Fund said Europe’s lenders needed urgent recapitalisation.

A European source said that the IMF saw a capital shortfall of €200 billion among European lenders.

The chief executives of Commerzbank , Societe Generale and UniCredit will also set out their visions for the way forward in difficult terrain.

As the prospects recede for a near-term return of confidence, some major lenders, including Barclays , HSBC , Goldman Sachs , Credit Suisse and UBS , have begun to slash tens of thousands of high-paying financial sector jobs.

The chief executive of JP Morgan’s investment bank, Jes Staley, will give the view from the other side of the Atlantic.

Deutsche’s Ackermann may also face questions over a report that securities packaged by his bank are among half a dozen deals being examined by Britain’s Serious Fraud Office (SFO). – Reuters


is it happening...?

not yet

The Star Online > Business
Monday September 5, 2011

Property loans to keep lead

BY DALJIT DHESI
daljit@thestar.com.my

PETALING JAYA: Analysts expect property loans to maintain their position as a key growth driver of credit expansion with some estimating them to grow between 10% and 12% this year due to the low interest rate environment and ample liquidity in the banking system.

For the first seven months of this year, property loans remained the key growth driver, accounting for 40.6% of the banking system's overall credit expansion, followed by working capital loans at 23.6%. Residential property loans currently accounted for about 27% of the system's total loans.

RAM Ratings head of financial institution ratings Promod Dass told StarBiz that the credit environment to date had continued to be accommodative for borrowers with ample liquidity in the banking system and a stable economic environment. Coupled with attractive promotional packages offered by some developers, he said residential property loans had already shown a healthy 7.1% growth in the seven months to July (or 12.1% annualised), which was more or less at a similar pace compared with the overall total banking system's year to date loan growth of 7.5%.


“We believe that the full year loan growth for residential property loans will be in the 10%-12% range although we are closely observing the sovereign problems still brewing in Europe as well as concerns on the US economy and the consequent impact on Malaysia's economic growth stamina, which could affect consumer sentiment in property purchases,” he reckoned.

Dass said that while there was a slowdown in loan applications for residential mortgages in the few months after the implementation of the 70% loan-to-value cap on the third and subsequent house financing, the momentum had picked up again since March.

The move to curb the third and subsequent home financing was introduced by Bank Negara on Nov 2 last year to quell speculation on residential properties.

Alliance Bank Malaysia Bhd consumer banking head Ronnie Lim said he was bullish on property loans. He noted that in Malaysia, housing loans currently accounted for 50% (or RM255bil) of total household debt (RM510bil) and would continue to be one of the key growth drivers of retail credit expansion this year and in the near future.

“One of the main growth areas for properties is Klang Valley, which accounts for close to 60% to 65% of all property transactions. In addition, the population growth in Klang Valley is expected to reach 10 million by 2020 and the demand for residential property is expected to be fuelled by residents of Klang Valley whose average age is 34 years old.

“Coupled with the shortage of land in Klang Valley, demand will always out-strip supply. The economic growth and the low unemployment rate in the country is another catalyst for housing loan growth. The recent Economic Transformation Programme (ETP) announcement will further accelerate demand for residential properties as more affordable properties are being developed,'' he said.

Lim said prices of properties in Malaysia were still one of the lowest in the region when compared with countries like Thailand, Hong Kong and Singapore. The industry's total housing loan outstanding stood at RM255bil as of July 2011 compared with RM234bil in December 2010, he noted, adding that this represented a 14% annualised growth.

Given the positive environment and the above factors, Lim said the bank was confident the current growth rate could be maintained despite the recent global market unrest.

An MIDF Research banking analyst said property loans would hold up as a key growth driver of credit expansion this year as the persistent demand for property loans would be driven by low lending rates as well as the sustainable growth of the property market.

http://biz.thestar.com.my/services/printer...sp&sec=business

well, at least bnm knows huge borrowing to speculate or spend can't go on. up to bankrupt bn gomen to agree or let the debt go higher to win in ge13. see who dies in the end!

Bubble will burst soon! (hopefully, so dat i can buy cheap property with my cash.. LOL)

The Star, see how this main stream media is reporting, you won't see a single word that is negative or cautious about the property market/economy, they only tell you good news, as it is what the developer/financial elite want you to hear. I have picked up some highlights,

-Coupled with the shortage of land in Klang Valley, demand will always out-strip supply

-prices of properties in Malaysia were still one of the lowest in the region when compared with countries like Thailand, Hong Kong and Singapore

-current growth rate could be maintained despite the recent global market unrest

-property loans would hold up as a key growth driver of credit expansion this year as the persistent demand for property loans would be driven by low lending rates as well as the sustainable growth of the property market


Let's compare the above news article from the star with this malaysia insider's article,

http://www.themalaysianinsider.com/malaysi...uyers-says-rhb/

-property mortgages — to be based on net income rather than gross income — is currently on Bank Negara Malaysia’s table for consideration. A change in the way mortgages are calculated might slash the amounts that the public can borrow for property purchases by as much as 37 per cent. The change comes as the central bank attempts to reign in household debt that, as a percentage of gross domestic product, surged to a record high level in 2010 due to low interest rates and easy financing schemes.

-As a percentage of GDP, Malaysia’s household debt increased from 66.7 per cent in 2004 to 76 per cent in 2009, which is uncomfortably close to the levels seen in the US prior to the 2008 financial crisis.

-RHB estimated that the proposed measure could lower affordability by 14-37 per cent and the impact would be most severe in the high-end segment.

-It noted that in the 2008/2009 global economic slowdown, property sales stalled and fell 30-40 per cent year-on-year and prices dropped 10.6 per cent in Kuala Lumpur.

-“As we only expect a slower economic growth, property sales and prices may experience some minor corrections of 5-10 per cent,” said RHB.

-Putrajaya introduced a 70 per cent loan-to-value mortgage cap on third properties last year in response to complaints that property prices had spiralled out of control due to rampant speculation.

-A housing affordability chart carried in the The Edge Financial Daily on August 15 showed that property prices had risen from 5.9 times income in 1989 to 10.9 times income in 2010.


See the difference? As I said, when we read something over and over and over again on the newspaper/tv, an average person will believe they are all truth without any doubts.

This post has been edited by debtismoney: Sep 6 2011, 08:04 AM

i have to agree to what you've said. i think all official newspaper in the country doesnt carry any negative news.

but just have a look around you....properties that cost 300k shoot up to 500k in a matter of 1-2 years without any real price rising factor. even if you add in land price rise or even building materials price increase, i dont think it make sense for the steep 200k in 2 years.

so what does this say? if you think logically, this is a bubble and not sustainable. all it takes is sudden drop in economy and jobs loses, then the domino effect will start.

just becareful guys, now is the time to SELL, and not buy. i might be wrong but i think the time for correction should be soon.

sound like i should see haha
http://forum.lowyat.net/topic/2021112