guess now everyone will have to stay in rawang.

Bubble will burst for those who buy to sell later on as many are holding on to houses in the hope of max profits..better sell now. Later on bank will not approve loans unless you really can repay or have a term loan..like in 1998-2004.

For those who really have money, the super rich homes will continue to sell as many would want the security and prestige of living in an exclusive enclave away from the low-class developments that have shophouses and low-cost flats in the same area..

If ready to buy first home, better to wait as developers will slash prices when bubble burst, keep money to pay a higher down payment so that u will not be killed by high interest when bubble bursts..now interest low but in 2003, interest was nearly 8-10% and Islamic loan 12-15%! In a burst bubble economy, banks have to recoup losses and repay term loans, hence higher interest.

In noob terms, invest your money now in savings..dun go and play the property market, cos your stable job may be non-existence when economy collapses, so if you buy an expensive home now, will end up on the streets when jobless or if salary does not grow.

almost any junk properties including apartment, condo, landed in KV already appreciated > 50% within a year. this is not real demand.

mind to tell why there is no bubble?

A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline.

then i go to search google, and read some old news from the star, there is a bubble just that not reach its climax yet
source

relax. He was just being sarcastic..

anyway, nice link you give there. I wanna save it for my research..

In our case, property prices are high simply because of demand for properties. Everybody comes to KL to earn a better income. When everyone comes to KL to earn a better income, everybody wants to stay in KL. When that happens, isn't that increasing demand for properties? Demand goes up and up, while more and more people are moving into KL and Selangor. On top of it, old properties are being made way for newer high-rise properties.

If you say its a bubble, then you'll have to look at those rich people who own like huge numbers of low end and medium end properties. These people buy and sell therefore, inflating the prices of properties. Only then, I would say, its logical to call it a bubble. The problem with KL and Selangor is that, property prices are increasing more and more as more people are moving into KL and Selangor.

Just to prove the point, recently a corner lot near my house was sold for half a million. Its only 18 by 60 and its a double story. Heck, everytime I see a property for sale around my place, in just less than a week, the property would be sold. Interestingly, I don't see them as investors, but I see most of them are either newly weds or retired elders. Does this sound like a freaking bubble to you?

This post has been edited by Flaming_lion: Sep 6 2011, 02:12 PM

I think you do not understand what a property bubble means. Someone has already provided the definition at this page.

bodoh ape. increase in price = price appreciation.

no matter what the cause, bubble is a bubble. there's no "price increase because demand is good" and "price increase because speculation is bad" side.

if so, even if there is an economy slowdown next year, it hardly impact on the housing industry since everyone is buying them for own property rather than selling them except maybe for those investors?

Can you take a look at the graphs given? Our household debt is at it's peak and these household debt is the one fueling the:

Just to prove the point, recently a corner lot near my house was sold for half a million. Its only 18 by 60 and its a double story. Heck, everytime I see a property for sale around my place, in just less than a week, the property would be sold. Interestingly, I don't see them as investors, but I see most of them are either newly weds or retired elders. Does this sound like a freaking bubble to you?

The statement above was exactly the same situation before US had their property bubble burst..

I've seen this coming for quite some time now as i've been property hunting lately. The prices are insanely high with a huge amount of surplus that it looks like another bubble that's about to burst. Due to this i've hold back on purchasing any.

The property prices are sky rocketing at a pretty high rate, our GDP growth just couldn't catch up thus not that many can be sold as fast. So when there's a huge surplus with little demand, the prices are bound to drop.

I've had discussions with a few property agents and they too agree that it is now very hard to sell property, more so at prime areas as they are set at a very high price, too high for even the above average income earners. They admitted to using "we are selling below market price" phrases to potential customers because they know if they don't sell it now, it will drop even more. This gives me a very bad impression on the market as you do not sell it cheaper than what its supposed to be worth or valued by the bank.

Ughh..and just when i thought i was going be able to live in a new apartment by new year

from the statement, ppl buying houses in less than a week...means economy still fine and lots of ppl still rich...
that means the price is still can be cope up with, no? so, how exactly it bursts?

it could be ppl are scared that price will increase more and they pay > 40% of their salary just to own a house that they can't afford. when economy down, they will be forced to auction their house and if bank ask them to top up the difference, they might go bankcrupcy...

This post has been edited by myone1015: Sep 6 2011, 02:26 PM

its a freaking loan, not asset.

lot of people still rich? how much is the median income in malaysia until you said a LOT still rich.

once the price reach a point high enough where MOST of the people can't afford their rent, BOOM.

Nope.

LOL! Tell you what... You just wait, keep waiting for property prices to fall. Just sit and wait for it. Let's see how long before the "bubble" will burst.

By the looks of it, more and more people are buying properties in KL & Selangor because of the need to work in KL and Selangor. People are coming in from other states to look for better opportunities. Are you telling me that these people will live in huts as illegal squatters?

In Malaysia, what did the government do? They told the banks to offer 30 year loans instead of 25 year loans.

That's the worrying part.

Years ago, you only needed a 10 year loan. Then it became 15, followed by 20 and so on... Today, we're talking about 25 to 35 years loan. That's how exactly we're coping.

bubble only affects speculators... investors play with extra money, speculators play with their only money...

happy waiting for the bubble

not quite sure how's that work...mind to elaborate? means pay the remaining balance instead of following the schedule stated in the contract?

the rich are more concentrated in one area, if u saying buy a house, of coz it is still affordable, but it is impractical i buy a house in my hometown ipoh, worth around 100k then come to work in KL, right? while most rich and wealth including foreign investor keep on making the price in selangor goes higher and higher, it makes young ppl hard to buy house with just salary-man's earning

well, my area in pj, most ppl(family, students, fresh grad like me) just rent houses
while those ppl who came here 15 to 20 years ago, flourish with most of the properties in their hands coz of the cheap price years ago

This post has been edited by gundamsp01: Sep 6 2011, 02:43 PM

let say b4 bubble burst, house worth 500k, loan granted by bank is 500k

after burst, house worth 300k

then owner default payment, bank auction the property for 300k.

the difference of loan given and auction price is, 500k - 300k = 200k.

bank ask owner to top up the 200k or more to recover their loss.

optional:

owner no money but got another property worth 200k , fully paid up.

bank force owner to sell the property and take the 200k.

owner left with no money and no house.

This post has been edited by myone1015: Sep 6 2011, 03:01 PM

where are people going to stay then? they can't rent, they can't even buy...

they will build their own rumah papan