A comic to cheer up the impending doom in financial markets:

can expect no default, raise debt ceiling to buy some time, deep cuts in budget.
possibility remains credit rating downgraded, rates go up, consumption reduced, import less, global trade slows.
this flu will have some effect on all trading partners. not possible usa or mareasia or anybody can keep borrowing and consume forever.
let's just hope this flu will not develop into pneumonia too quickly to allow the prop party here to go on a bit longer, "soft landing".

This post has been edited by AVFAN: Aug 1 2011, 12:04 AM

debt ceiling will be raise... us gomen dun 1 to blame by others.... so no hard landing.. But, prepared for soft landing over years...

Note: soft landing in us.. maybe hard landing in asia..

This post has been edited by sampool: Aug 1 2011, 11:07 AM

may i know what is the current rate of commission % for seller to pay for property agents service? i know that on top of the commission rate, there's a 6% service tax.

appreciate some feedback.

3%, above 500% is 2%. + 6% (on professional fees).

ok thanks for the quick answer.

Died lor! Cement price increase by RM15/ton.

http://www.seehua.com/node/18620

Increase of RM15/ton is about 5% increase of cement cost. Assuming cement normally constitute about 20% of a building total cost;

20% X 1.05 = 21%. So, about 1% increase in a building total cost due to cement price hike. It depends on whether developers/contractors want to absorb or pass down the cost, or charge much higher like our coffee shop when petrol price hike??

Tuesday August 2, 2011
Malaysian consumer confidence at highest level since 2006
By M. HAFIDZ MAHPAR
hafidz@thestar.com.my

PETALING JAYA: Malaysian consumer confidence rebounded in the second quarter (Q2) to hit the highest level since 2006, according to the latest Nielsen Global Online Survey.

Market research company Nielsen said in a statement that this was despite a 9-percentage point drop in online consumer confidence across the Asia-Pacific region.

Online consumer confidence in Malaysia rose 5 points quarter-on-quarter to an index of 110 in Q2. It said this was the highest level since the index reached 114 in Q3 2006.

Malaysia ranked 4th (along with the United Arab Emirates) among the 56 countries surveyed by Nielsen, an improvement from 12th spot a quarter ago.

India (126), the Philippines (115) and Indonesia (112) headed the worldwide list.

The Nielsen Global Online Survey, conducted between May 20 and June 7, covered about 31,000 online consumers. In Malaysia, a sample of 500 consumers were polled.

Nielsen said that favourable labour market conditions prompted online consumers in Malaysia to be more confident on their job prospects.

Of the respondents, 77% described their job prospects as excellent or good over the next 12 months, up 5 percentage points quarter-on-quarter.

“As a result, Malaysia advanced to second place (fourth in Q1 2011) among the top 10 most optimistic countries (job prospects),” the company said.


more http://biz.thestar.com.my/news/story.asp?f...81&sec=business

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Added on August 2, 2011, 4:05 pmThe Star Online > Business
Tuesday August 2, 2011

Property bubble burst unlikely in near future, says AmInvestment Bank

KUALA LUMPUR: A property bubble burst is unlikely to happen in the Asia Pacific, including Malaysia, as there are no signs to indicate such a trend in the next two years, says AmInvestment Bank Group.

Director for Retail Funds Ng Chze How said real estate investment trusts (REITS) would also not experience a burst including those acquired by the group. "I don't see a burst or a crash in the property market.

"You have high wages, ample liquidity, small percentage of non-performing loans and these plus steps taken by the government to prevent the economy from overheating, augur well for the property market.

"I don't see a property burst (happening) in the next six months, one year or two years down the line," he told reporters at the launch of Malaysia's first Asia Pacific REITs fund, AmAsia Pacific REITs, here today.

He said with these factors in place coupled with an economic recovery, there would be more upside in the market.

AmAsia Pacific REITs invests in a diversified portfolio of REITs listed in the Asia Pacific region.

Ng was optimistic the REITS selected by the group would see high occupancy rate and increasing rental.

"Selected Asian properties have yet to reach their previous peak, as such, there is room for potential growth," he said, adding that properties were seen as a good hedge during the current inflationary period. - Bernama
--------------------------------------------------------------------------------
© 1995-2011 Star Publications (Malaysia) Bhd (Co No 10894-D)

This post has been edited by kh8668: Aug 2 2011, 04:05 PM

k

This post has been edited by sampool: Aug 2 2011, 05:46 PM

"You have high wages, ample liquidity, small percentage of non-performing loans and these plus steps taken by the government to prevent the economy from overheating, augur well for the property market."

This doesnt exactly describe Malaysia woh.....

could say this does not really decribe you and me, kekekekeke....

but others are there really R.....

I wouldn't just take one investment bank's forecast to convince myself that our property market is healthy!

This post has been edited by dlyw1103: Aug 2 2011, 07:38 PM

LOL... trust yourself, gut feeling.

I also trust my gut feeling... LOL

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Added on August 2, 2011, 4:05 pmThe Star Online > Business
Tuesday August 2, 2011

Property bubble burst unlikely in near future, says AmInvestment Bank

KUALA LUMPUR: A property bubble burst is unlikely to happen in the Asia Pacific, including Malaysia, as there are no signs to indicate such a trend in the next two years, says AmInvestment Bank Group.

Director for Retail Funds Ng Chze How said real estate investment trusts (REITS) would also not experience a burst including those acquired by the group. "I don't see a burst or a crash in the property market.

"You have high wages, ample liquidity, small percentage of non-performing loans and these plus steps taken by the government to prevent the economy from overheating, augur well for the property market.

"I don't see a property burst (happening) in the next six months, one year or two years down the line," he told reporters at the launch of Malaysia's first Asia Pacific REITs fund, AmAsia Pacific REITs, here today.

He said with these factors in place coupled with an economic recovery, there would be more upside in the market.

AmAsia Pacific REITs invests in a diversified portfolio of REITs listed in the Asia Pacific region.

Ng was optimistic the REITS selected by the group would see high occupancy rate and increasing rental.

"Selected Asian properties have yet to reach their previous peak, as such, there is room for potential growth," he said, adding that properties were seen as a good hedge during the current inflationary period. - Bernama
--------------------------------------------------------------------------------
© 1995-2011 Star Publications (Malaysia) Bhd (Co No 10894-D)

[/quote]

His strongest argument is highlighted in BOLD above.

First, high wages??? Hello??? High wages compared to which country??? I thought we are talking people already over-leveraging here?

Ample liquidity?? Bank or individual??? When there is a crash, don't tell me bank will still loan people money........ There will be credit crunch despite ample liquidity. How high liquidity in bank will help the property market anyway??

Small percentage of non-performing loan........people will start to default when the property price goes down too much or inflation is too serious. We have not really experiencing the downward price pressure yet. Ofcourse people will hold-on to their property no matter what.

Plus steps taken by government?? He needs to elaborate further........

The Malaysian Insider
Business
Buying Asian property risky but not in KL, says report
By Lee Wei Lian
Aug 02, 2011

The sharp rise in the equity market this year has also helped to support residential demand. — condo.com.my pic
KUALA LUMPUR, Aug 2 — Kuala Lumpur’s residential market has been rated as a regional standout as key Asian capital cities face challenges from government-imposed cooling measures, said property investment consultancy Pacific Star in its mid-year report.

The report said that governments in China, Hong Kong and Singapore have been bent on curbing inflation and cooling the residential market through a combination of tightening measures, higher interest rates and management of supply and demand but this was not always the case in Malaysia.

“Although fundamentals for Asian residential real estate remain intact, residential investment at this juncture carries a disproportionate amount of policy risk,” said Pacific Star. “We view that the Kuala Lumpur market will stand out given that policy risk is relatively low and economic conditions are generally healthy.”

The report noted that the sharp rise in the equity market in Malaysia this year has also helped to support residential demand.

“In particular, the pace of rate hikes in Malaysia has been more measured and will support residential purchases,” said Pacific Star.

While the report will be welcome news to property investors, aspiring homeowners are unlikely to be happy that the Malaysian government appears to be lagging behind its regional counterparts in tackling residential property prices which have largely outpaced income growth.

The price of residential properties in and around the Klang Valley had increased by up to 30 per cent last year thanks to a combination of low interest rates and ample liquidity.

While Malaysia does not have a housing affordability index, a rough calculation shows the average price of a KL residential property is now about RM485,000, or roughly nine times that of the average urban household annual income of RM54,000 and a possible sign that the market is experiencing a bubble.

The Demographia International Housing Affordability Survey rates markets whose property prices are 5.1 times median income or more, as “severely unaffordable”.

The National House Buyers Association (HBA) had warned in May that an entire generation of young adults risk being locked out of the property market due to runaway house prices.

Malaysia’s central bank, Bank Negara has raised its key overnight policy rate (OPR) four times since the start of 2010, to the current level of three per cent which is still below the pre-crisis level of 3.5 per cent and the statutory reserve requirement rate of three per cent is also below the pre-crisis level of four per cent.

“Although Bank Negara Malaysia has initiated monetary tightening, inflation is expected to stay above 3.0 per cent, which implies a negative real policy rate,” said Pacific Star.

haha ... gut feelings also cannot trust sometimes .... overiden by greed!

ngmm...LOL.....this have to very much depend on personal quality.

I don't know for certain if a bubble is coming, but I do think that it's time to be a little bit more careful. Just for fun, i'd like to share some anecdotal evidence on why a bubble MAY be happening

1. If u talk to some bankers around town, they will tell you that 7 out of 10 loans do not meet the valuation given. In order words, prospective buyers are forced to top up. In other words, transacted prices r consistently above valuation.

2. Yes, we all know about the escalating prices of 30% blah blah blah....enuf said.

3. There are more people in the property forum vs. the stock market forum, compared to 3 years ago (couldn't resist typing this)

4. Developments are coming up at a frenzied pace now. Almost frightening really.....with new psf barriers being breached.

5. Again, just based on anecdotal evidence from some bankers - Year 2013 will see the country's highest number of VP-ed units in history. Fu-yoh! That's when we'll really see if people can flip so easily, or perhaps even service their installments.....

Do u have an estimate how many VP unit in % increase compare to coming year or this year in Klang Valley?