40% deposit may not be fully effective to curb hot speculation....many loopholes (ie SOHOs) to go around this ruling. Developers and bankers are working closely to bypass this for common commercial objectives.

The most effective is stopping DIBS scheme and introduce higher RPGT......but doubt govt will use this drastic measure as prices may drop like a rock!!

How different?

Totally agree with you there

Affordability index (HK props attracted international buyers due to its status as regional financial centre). Easy to subsale in HK (within 1 week) and not like Msia
Population growth (many rich mainland chinese sending children at HK schools and need accomodation),
Controlled supply (HK govt has a better planning to release land banks...unlike bolehland with poor prop supply vs demand)
Lower prop vacancy rate due to controlled supply as mentioned above
Low cost of fund (very low BLR) plus depreciation of HK dollar make prop investment a logical choice
Property transactions are fast/efficient and transacted prices are transparent in the govt website for reference

many many more.......so cannot compare la....

Malaysia property market are mainly supported by local people.

HK = regional financial centre = attracts foreigners. Agreed, if not Malaysian properties won't be cheap.

Population = KV now got 7 mil population; takes 4 persons per household; 1.75mil families (must be more); KV total properties about 1.7 mil units; Low cost flats and low cost houses are a lot; not many quality products there.

supply control? Supply and demand controlled by the free market. it will be corrected by the market itself.

Low vacancy rate = I think only for certain areas.

Low cost of fund = historical low interest rate also happens in Malaysia now.

Property transactions = Malaysia, yes, agreed that it is not transparent enough (Fake SPA also can be done) and not fast, not many buyers/sellers know the market well. LOL. But, still got lot of peoples make money from Malaysia property market.

Property above 1m is listed in the gov website. But prices are still not "Real" enough.

Higher inflation?
By JAGDEV SINGH SIDHU
jagdev@thestar.com.my


Economists cautious as producer prices keep rising

KUALA LUMPUR: Economists suspect inflation may have reached their peak levels in June but remain wary over the prospect of further rises stemming from higher producer prices.

A higher base effect from the second half of last year and the recent sideways movement in the basket of commodities, especially food prices, will help contain the rise in inflation but a 10.6% jump in producer prices in May is expected to work its way to consumer prices should companies decide to pass on the higher costs.

Producer prices have risen for the seventh straight month and May's number was the fastest pace of increase since September 2008.

“There are also the risks of pass-through and secondary effects on consumer prices from higher production and operating costs following the hikes in gas prices, electricity tariffs and the removal of super subsidy on diesel for commercial vehicles (mainly in the logistics industry) and deep-sea fishing vessels,” said Maybank Investment Bank Bhd in a report yesterday.


Feeling the pinch: Costlier chicken, among other food, has contributed to the 3.5% rise in June inflation

CIMB Research head of economics Lee Heng Guie in his report said increased cost and margin pressures were expected to force producers to pass through the cost to consumers gradually.

Inflation rose by 3.5% in June, which was the fastest pace of increase since March 2009.

Contributing to the big increase in inflation was food, with an increase of 4.7% from a year ago because of costlier chicken, fish and vegetable prices, and transportation, which was up 5.8%.

The subsidy rationalisation of the electricity tariff increase in June had a negligible effect on inflation in June but the reduction in sugar subsidies had caused a spike in sweets and other confectionary.

“The average 7.12% electricity tariff hike in June had a manageable knock-on impact on overall inflation as the housing, water, electricity, gas and other fuels' category rose 1.9% year-on-year and 0.1% month-on-month in June,” said Lee.

Since 75% of consumers would not fork out more for electricity as they consumed less than the threshold for a price increase, economists said the overall influence on inflation was muted. Furthermore, electricity accounts for 2.9% of the consumer price index.

Lee said inflation had probably peaked in June and expected it to ease in the second half of this year.

“First, the food inflation and transport price index, which accounted for 2.1% of the increase in the headline inflation in the first half of 2011, has come close to returning to its historical month-over-month trend growth rate,” he said.

“The second factor is the base effect inflation was much lower (average 1.5% year-on-year) in the first half of 2010 than in the second half of 2010 (average 1.9% year-on-year). As such, the combination of slower month-on-month price growth and a higher year-ago base will result in a slight drop in inflation to 3.2% to 3.4% year-on-year in the second half of 2011.”

He is maintaining his CPI growth forecast of 3.2% for this year.

How Bank Negara reacts to the June report for inflation in raising interest rates is also uncertain at this juncture. Some economists feel with inflation being more closely monitored than in the past, a 25 basis-point increase in the overnight policy rate remains a possibility for the September meeting.

Others think inflation at the current levels, and where the outlook for costs gets more benign towards the later part in the year, may not be enough to convince the central bank that a move toward the normalisation of interest rates will be the proper response in view that economic growth prospects are still shaky at the moment.

Sorry to say this, but I think you do not understand the concept of speculation. Speculation only occur when people are buying more than one property. Afterall, you can only live in one. So the government scheme is not effectively encouraging speculation as it targets and helps first time home buyers. Frankly speculation is more of a problem for lower valued properties as speculation will effectively push out lower income bracket purchasers.

Yup HK got plenty of land but mostly occupied by the hills or on the hill slop. Proportion of flat land is much lesser.

Again, we cannot compare KL with HK and Sg. People are regional financial centers. Bankers can afford to pay S$50,000 monthly rental. My? Centre of cheap labor and hub of cronies lah .. hehe

bros,
i am not saying kl is equal to hk or sgd.
the comparison is done to show how much lagging we are compared to them.
every country needs to have a starting point to tip over the scale. i'm just hoping our country can start the actual transformation sooner if not later. if indonesia, thailand and vietnam can do it, i hope we can do it too and better.
short term goal is of course to overtake thailand, indonesia and vietnam. then to narrow the gap to singapore.
overtaking Sg or HK would be crazy.

i wouldn't put my hope on those thickheads busy lining own pockets and arresting innocent people.

read a bit more, forget sg or hk. start comparing with other cambodia and kazakhstan, so says adb:

Stock to highest
Gold to highest
Commodities to highest
Propertied till now to highest
...
Are we in the end of the show? Any opinion...

This post has been edited by firee818: Jul 22 2011, 11:18 AM

tough time ahead very soon in MY.....just received latest insider info that 1 major foreign bank decided to cutback property loan to only 60%-70% financing regardless of commercial, residential, etc. This also applicable to 1st property owner unless falls under RM220k residential prop. Heard other local banks are likely to follow suit .....

Seems the bank has identified some big risk is coming very soon in the horizon......

those still gangho to BBB, better check with your banker first before making any commitment......

i think bacos of this cutback property loan to only 60%-70% , ppl think difficult to get loan in future.. so they borrow now!!!... create further BBB (Bubble Bubble Bubble).

I tthought many are already experiencing the "tough time" with all the prices of daily neccessities going up crazily since last year

but yes, i agree that tough time is ahead of MY. that's why am at a difficult stage thinking whether to buy or not to buy my first condo for own stay purpose (currently living with family) .

no offence, but how reliable is your insider info, has BNM issue any kind of guidance to banks on loans to individuals? Coz i heard that when people argue that Malaysians' debt are still not too high compared to savings, the ratio actually takes into account monies in EPF and we can't use (a large portion). This worries me.

recently i feel that the property market has cooled down abit, not as crazy as months back, anyone got the same feeling ah?

---

Added on July 22, 2011, 3:32 pmMaybe i am coming from the buying side (for own stay) and hope prices could be more reasonable, so i would think that the cutback of property loan to 60-70% will make speculators panic wanting to sell fast, coz not many buyers can afford to fork out 30-40% cash as downpayment.

---

Added on July 22, 2011, 3:39 pm haha, can't help but to laugh and feel sad at the same time. You are so right, we should compare apple to apple. Malaysia's financial industry is >10years behind S'pore, maybe more relevant to compare S'pore property prices 10 years back ?

This post has been edited by godutch: Jul 22 2011, 03:39 PM

godutch,
if you are buying for own stay, i would suggest you hunt for a place you are comfortable with and just buy it (subject to your affordability of course).

and my concern is not whether we are behind Sg or HK in terms of how many years. it's whether we are positively bridging the gap or drifting further. currently, we are not bridging the gap but drifting further. so in physics theory, we would not be able to chase them at all.

券商買進心頭好．政府謹慎不打房 馬星股價料回揚
股市 21/07/2011 23:46 Share 轉寄 列印 字体:
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目標價：3.30令吉
券商：聯昌證券研究

政府謹慎落實任何政策以免打擊房地產領域，此番立場料可穩定馬星集團（MAHSING，8583，主要板房產）股價走勢，馬星仍是我們的房產股首選。

　馬星集團管理層在電話會議指出，政府希望在為房產市場降溫之際，也非常謹慎落實任何政策，以免打擊房地產領域和140個相關行業。國內沒有真正的房產泡沫跡象，也是原因之一。

　這顯示當局只想克制投機，而不是打擊整體市場。

　此立場與我們的看法一致，即我國甚至吉隆坡沒有廣泛的房產泡沬，且（買家）整體負擔能力仍良好。

　假設馬星集團在今年得以收購價值50億至70億令吉的地庫，年內未來5個月料將有總發展值40億至60億令吉的地庫，這在短時間內是項很龐大的金額，料將有助重估該股。

　今年至今，該公司的銷售和訂單值達17億至18億令吉，換算成一年相等于29億至31億令吉，高于全年20億至25億令吉的目標。

　馬星集團近期的股價走勢如過山車般，電話會議內容料有助舒緩包括馬星集團在內的整體房產業者擔憂。

　我們維持財測和3.30令吉的目標價，“跑贏大市”評級不變。

　潛在重估催化劑，包括剛推介的Icon City良好銷售反應、持續強勁的銷量，以及預期下半年重返的地庫利好。

　閉市時，馬星集團報2.45令吉，跌6仙，成交量108萬7400股。

---

Added on July 22, 2011, 10:11 pmBy YIP YOKE TENG
teng@thestar.com.my | Jul 22, 2011
Be flexible with plot ratio

--------------------------------------------------------------------------------

Residents in Selangor have been urged to be more flexible with the plot ratio to enable the state’s continuous development.

State local government committee chairman Ronnie Liu said Selangor had recorded a 9% migration rate as compared to 6% in the past.

“That is a significant figure; it means that the state’s population will double every six to seven years. The state government is pressured to provide more jobs and houses,” he said after launching the Planning Guidelines Workshop organised by Petaling Jaya City Council (MBPJ) and Real Estate & Housing Developers’ Association (Rehda) recently at One World Hotel.

“Residents’ strong resistance to projects with high plot ratio will eventually turn investors away. Of course, we have to first ensure the infrastructure can cope with the development,” he said.

Liu added many had moved to Petaling Jaya, Ampang, Selayang, Subang and Klang, and most of them opted to stay long-term.

More than 200 representatives from developers and government agencies attended the workshop, which was aimed at reviewing and fine-tuning the policy drafted by MBPJ.

The workshop’s outcome will be discussed again within the council before it is forwarded to the state planning committee.

Among the issues discussed were development charges, infrastructure fees, green area, carpark allocation, maximum plot ratio, stop-work order and planting perimeters.

MBPJ One-Stop Centre director Lee Lih Shyan said it was a fruitful session as participants gave constructive input on the papers presented by the council’s planning, engineering, landscape and building control departments.

It was proposed that a Green Fund be set up as compensation by developers who could not strictly meet the council’s green requirements, but the move was heatedly debated.

Another proposal was that developers be allowed to have higher plot ratio for meeting specific green requirements.

Lee added that the formula used for the calculation of development charges and the mechanics of returning overpaid fees were also discussed.

Currently, developers are required to pay 30% of the appreciation in land value as development charges.


This post has been edited by kh8668: Jul 22 2011, 10:11 PM

US bubble prophecy in 2005.

http://globaleconomicanalysis.blogspot.com...w-paradigm.html



which stage are we right now? think prices peak already?

iProperty.com Malaysia Property Trends Survey 2011 (Malaysia)
Welcome to the iProperty.com Asia Property Trends Survey 2011!
20%
According to Deputy Finance Minister Datuk Donald Lim Siang Chai, in light of rising inflation and increase in demand for local properties from foreigners, the property prices in Malaysia are expected to increase at an average of between 10% - 20% this year.

Early this month, the Malaysian Government launched the 1Malaysia People's Housing Programme (PR1MA) to enable individuals who earn not more than RM6,000 to purchase a home valued at RM150,000 – RM300,000 which will be developed in several areas in and around the Klang Valley.

What do you think about the prediction in property price? Will the increase hinder you from purchasing a home, be it for residence or investment? Do you think that Malaysians who earn not more than RM6,000 a month will be able to afford a home valued between RM150,000 – RM300, 000?

We at iProperty.com Malaysia would like to know what you think about this. Answering this survey will only take a few minutes your time but its results can help shape the property industry.

These questions aren’t personally identifying. Your personal information is protected in accordance with our privacy policy and terms of use.

iProperty.com will publish the findings once the survey period has ended.


survey

another 10-20% increase this year?
wow!