Sir, I have tell you that there's no property bubble in Malaysia. 

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? 

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..

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...

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.

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?