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? 

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?

the bubble burst when the demand stops and the supply is too much..

dude... how can you force someone to sell something he already owns? his loan is fully repaid...

force sale can only happen if you declare bankrupt... i.e. cannot repay the loan

What if we take islamic banking loan?

the interest are fixed, so for sure the borrower could pay it every month until the loan settle. no?