It's like buying shares. You never know when the bubble is going to burst. But to buy now after having risen phenomenally in the past few years? Major major risk!

Bubble don't burst if BNM detect early. Surely BNM will deflate it like what it is doing now.

isssh...i as about to invest one condo unit near setapak area as my 1st property...after read thru earlier post, really holds me by now...

will Malaysia sooner be like Hong Kong or Japan...? the house loaner actually need 3 generation to clear off the house loan?

If the property price continue to rise, eventually we will be like them. But I do not think it will be our generation, our next generation are sure to suffer from this.

Anyhow, Malaysia property is considered very affordable to overseas investors, that's why our property can soon become their target for investment, for example, KL property prices are so much lower than Jakarta giving the fact that our political stability is also much stronger than theirs.

Giving the fact that Malaysia property prices are increasing rapidly, when will our income level follow suit?

Properties expensive to Malaysians, says HomeGuru survey
Aug 4, 2011

More Malaysians now feel that property in the country is expensive, according to the results of a HomeGuru survey on property market sentiment.

HomeGuru’s Q2 Property Sentiment Survey, which polled 2,182 HomeGuru users across the country, showed that 73 percent of respondents feel that property in all categories in Malaysia is expensive. In fact, 86 percent of the respondents feel that property prices will continue to rise in the next six months, compared to 78 percent in the previous survey.

Although 35 percent of respondents said that prices for apartments or condominiums, townhouse and SOHOs (small office home office) are reasonable, 66 percent of respondents with a monthly income of between RM3,000 and RM10,000 said that apartments or condominiums are expensive.

“With more supply coming up and the government introducing new schemes for home buyers, more respondents are now interested in entering the market after a long ‘wait and see’ period with more people looking to upgrade their properties; up from 36 percent in Q1 to 47 percent in Q2,” said HomeGuru.

Steve Melhuish, CEO of PropertyGuru Group, said, “Considering the overall sentiment towards property prices at the moment, it’s no surprise that the most important factor affecting purchase decision is price.”

Around “38 percent of respondents would buy a property based on how deep they would reach into their pockets,” he said, adding that location is a critical deciding factor, above all other considerations.

Melhuish revealed that when it comes to the type of properties, apartments or condominiums turned out to be the most popular, followed by terraced or link houses. He also said that the top three attractions for property investment in Malaysia are “potential profit from capital appreciation” (20 percent), “solid and safe investment” (18 percent) and “generate passive rental income” (18 percent).

With regards to first-time buyers, 43 percent of respondents are not sure whether the My First Home scheme will help in their property purchase, while 24 percent believe that it will.

“There is a strong feeling amongst the 33 percent of respondents who were not interested in the scheme that they would not quality for the scheme or are unable to purchase the property in their preferred location,” he said.

HomeGuru’s Q2 Property Sentiment Survey aims to understand the insights of Malaysian property buyers into key property issues such as affordability, property prices, transaction volumes, impact of government interventions and purchase intentions.

“HomeGuru’s Malaysia Property Sentiment Survey Q2 2011 is part of an on-going quarterly property survey that is aimed at gaining insights into consumer sentiments, understanding buying intentions and the impact of government measures. As Malaysia’s Property Expert, HomeGuru also sees the quarterly survey as a way to capture trends and help property agents, developers and Malaysian Buyers make efficient and informed decisions regarding property purchases,” said Melhuish

Looking at the chart above it's better to buy in US.

Our Property is considered very affordable to overseas investors due to their high pay slips. The fact is we do not have many overseas investors. Malaysia property market is very much supported by locals reported by lots of survey.

As we do not have property affordability index, the 9 times affordability index calculated for Malaysia shows that we are over-leveraged to the point of bubble burst. This also shows that the price is not sustainable and in unstable condition. In fact we should be COMMONLY practising the few generation repayment scheme already to avoid default in future. Although it is uncommon in our financial system to have our next generation to pay for the loan does not mean that we are in a better off situation. The current over-leveraging is only showing that we are in a very fragile condition. And for the fact that we have little foreign investment, the property market will free fall when the local market loses its confidence. It is like the dams full of water waiting to break lose of the retaining structure.

When we compare price, we should compare it with our own salary. Jakarta price higher does not mean they are stable. Our political stability is better does not mean our property price should be higher. The essence is affordability.

Property and shares are different. Shares go up and down according to the emotions of the investors/speculators.

Properties in good locations in Malaysia only go up and up. There's been no property crash for decades.

---

Added on August 4, 2011, 8:11 pmMany of the Malaysian property investors that I know work overseas or used to work overseas. UK, Mideast, Singapore.

There one lady forumer ...... still in her 20s ... work in Singapore. Already bought 3 properties in Klang Valley.

This post has been edited by Veda: Aug 4 2011, 08:11 PM

am talking about the development pace,.... probably due to selangor have bigger land

Sorry to say that it is not correct.
I only see Indonesia professional come over to malaysia work especially Information technology.
I believe our salary is higher than them as compare to the living standard too.
First time heard that jakarta property is higher than kl.

keep an eye on the us and european stock markets.
the debt crises in usa, italy and spain has triggered a massive selloff in both continents.
if it becomes full blown, bolehsia will not be spared.
as the western countries go on austerity measures, local exports will decline.
biz will slow, jobs may be lost.
"our props cheaper than x or y" and "we're different" will not hold water anymore.

It's coming ....

NEW YORK (AP) -- Gripped by fear of a new recession, the stock market suffered its worst day Thursday since the financial crisis in the fall of 2008. The Dow Jones industrial average fell more than 500 points, its ninth-steepest decline.

lol. Jakarta is indeed higher. Income factor apart there's also population pressure la.
Manila median also higher than kv median, I stand corrected.

yesterday... i watch a movie in astro... the story is a big shipping company going to bankrupt, but the boss use the strategy by increasing the shipping rate in order to create the demand-over-supply issue... finally, their regular 3 big clients continue their contract because the clients scare of their products cannot be ship even they willing to pay higher service charge...

The senario is similar with the prop market in the world (except, US)...

Sooner or later... the prices range will reflect to the actual market condition... someone may said [B]this time is different[.

DJ drop 500 points, all the 'i told you so' coming out liao.

so, is V3 really the point property crash?
let's see what the bullish people have to say lor.

Published: Friday August 5, 2011 MYT 9:06:00 AM
Australian stock market plunges nearly 4% Friday

SYDNEY: The Australian stock market fell sharply Friday as concerns over the U.S. economy and Europe's debt woes battered stocks across the world.

Lol... How the us and euro share markets affect property market in Malaysia? Noob here.

Don worry...we r in bolehand...sure can tahan......

U c this morning -35pts ...now recover to -18pts........

KlSE mainly play by local fund manager...as long as they r not exit from the game......the party will still on.......it wouldn't drop badly

hopefully it can hold till GE to come..... hehe.

I don't hold many props but a bit scared liao, but the positivity is infectious here.. hope the economy holds..