then i buy 2 properties for each kid. Sure can afford this time. 

http://www.todayonline.com/Business/Proper...downturn--Daiwa

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Housing market set for prolonged downturn: Daiwa

SINGAPORE - The housing market in Singapore is heading for a prolonged downturn and overall private home prices are forecast to fall between 22 and 26 per cent in the next three years, Daiwa Research said. "We believe the residential property market could remain depressed for several years, triggered initially by a likely forthcoming gross domestic product slowdown (in 2012) and lingering global economic uncertainty," it said.

From late next year, Daiwa said, structural issues such as the rapid build-up in unsold inventory in the primary market and vacant rental units will take centre stage and keep home prices and rents in check for several years.

The mass-market segment will hold up slightly better than high-end properties, supported by better affordability and the resilience in the resale prices of Housing and Development Board flats, Daiwa said.

The house has downgraded its view of Singapore's property sector to "Negative" from "Neutral", adding that "it is hard for us to see the developer shares outperforming the Straits Times Index over the next six months" despite their underperformance in the year to date. DOW JONES

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But hey, what do they know? Properties in Malaysia will NEVER ever drop! Doesn't matter the global economic situation, properties in Malaysia will never drop!

If you analyze deeper instead of just looking on the surface, you will see that property in KL & KV can be divided into 2 catagory based on price appreciation over the past 3 years:

Catagory 1 - Places where property prices have been dipping/stagnant/up a little bit:
1. KLCC
2. Mont Kiara Luxury segmant

Catagory 2 - Places where properties have really shot up:
1. PJ - BU/MD/KD
2. Puchong
3. Subang Jaya/USJ/Putera Heights
4. Kepong & Desapark 
.... basically almost any landed property

If you notice from above, the majority of properties that have shot up over the past 3 years are the properties where locals buy for own stay. On the other hand, the majority of the properties that have been underperforming are those which are bought by investors and foreigners.

My deeper analysis of the situation is that eventhough luxury (foreign investor class) property prices in Singapore, HK and China shot up, our own luxury real-estate in KLCC and Mont Kiara (Catagory 1) has been relatively underperforming. So this segment hasn't really benefited from the "Global Factors".

On the other hand, when prices of terrace houses in the suburbs (Catagory 2) go up, I believe its mostly driven by local demand buying houses for own stay. I dont see how "Global Factors" are driving up prices in Kota Damansara and Puchong. Maybe I'm not as smart as you, perhaps you can explain in more details how these "Global Factors" have caused landed property all over Klang Valley to go up? One thing for sure is they are certainly not being bought by foreigners, its the locals who are snapping them up.

Back to my original comment on how the latest measures by Singapore. I do believe that since many Singaporeans and foreign investors (especially China) are cash rich, rather than invest in Singapore which is already quite expensive and with the new laws designed to discourage foreign investors, they may decide to divert some funds to Malaysia instead.

I dont really see them investing in suburban terrace houses, so you shouldnt worry about them pushing house prices up. Most likely they'll go into KLCC and Mont Kiara which they are familiar with and hopefully help support prices there.

Only sub-urban neighbourhood with notable foreign ownership of landed property is Desapark City, other areas only have negligible numbers.

Foreigners still prefer condos in KLCC, Mont Kiara and Bangsar, if landed also Mont Kiara, Bangsar and Damansara Heights.

Kota Damansara landed property prices are among those with the highest appreciation over the past 5 years, is it also because foreigners are pushing the prices up?

i think majority will be DROP
because flipper, investor is only 10~20% in the whole population of malaysia
we have more poor ppl than rich.. so of course majority will be praying it to drop hehe

not wise to ignore possibility of worsening floods in near future.
changes in weather patterns are not going away anytime soon.
some gomens will spend big money and do all it can to mitigate future flooding.
some will just call it act of god or bad luck, wait for next flood.

if buying new home esp in new area, should pay special attention to any news of flooding in and around that area.
we know some developers are not very responsible.
once some houses in an area are flooded, the stigma doesn't go away easily.

of course, double jeopardy when the new home area turns out to be flood prone, with a recession in the economy.
that would be a real disaster.

Actually they also overbuilt. 1 investor hold few units. I saw unit for rental in a project more than for own stay.
I believe so too. They see investor buy sell earn so much. They also buy themselves.

They are individuals from china. Normally rich company boss and their wife AKA si lai.
IF you follow closely, there are many development projects that are launch in china.
it is sold out even before it is open to malaysian public. and also projects launch in malaysia
and si lai flying over to buy with cash. When they launch their project overseas, it is even sold higher
than what is launch here. To them 600-1k psf is really peanuts, furthermore its freehold in malaysia

they jump at the word "FREEHOLD"

would you able to hold your 4 storey shophouse?
touch wood if you can't; please give the 1st priority to let me know, i buy from you with cheap cheap price 

Here is the reason 2012 recession definitely happened and most people holding condo will bankrupt:
a) property is overpriced and many people saving and salary is sucked into banking system. So less money people have, less spending.
b) with less spending, retail business collapsed. And there's job loss due to bankruptcy of company because less people spending
c) overseas market collapse due to recession. And also this make job loss even more.
d) no one renting expensive house creating glut and bankruptcy of condo holders
e) and more....

2012 is not end of the world. Its just the end of greed. Welcome to US housing market where price drop of 40% is norm.

But I welcome recession because this will make kiasu and greed go away. Inflation also go down because less demand, price go down.

Example of unnecessary thing is gold ornament like rings. There's a factory here called Oeding Erdel. For past 2 years, they stop having sale because good business. Yesterday, they start selling things for clearance. They said overseas market cancel all the stocks.  Now we can get cheaper stuff.

Recession please come... 

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Added on December 16, 2011, 11:13 am
Now is starting downturn. Predict next year will see many business failed.

2008 is not a problem because there's no inflation. Property is still cheap.

Now is 2011. Property expensive. Inflation all time high. People don't have money to fight recession because all money sucked into banking system.

Welcome to 2012, the year of bankruptcy. 

oh really? how many of them? kakakaka....

In 2012, after property crash, those people that rent from investor can buy their own home. Investor or flipper will unable to rent out their
house further making their financial in trouble. I'm sure you know the ending of this scenario. 

Hong Kong got no land. Malaysia still got many land. I think you cannot compare Malaysia with Hong Kong or Singapore.

Very valid question.. Firstly I love community living since I am from Penang originally and living in apt/condo is common cos the houses in Penang is way to expensive during the 80's and 90's. I've also been looking and surveying props around the Sentul area for more than a year as well.

Secondly I NEEDED to find a place in Sentul due to family convenience which was to be able to reach my family member's house in less than 10mins even in rush hour and out of which Maple was the best since also both me and my wife love nature environment as compared to Saffron, Tamarind, Viva and Rivercity which are my other options due to family convenience once again. Also Maple is the best maintained of the lot. I was not looking at Titiwangsa Sentral or any other condos 1km after Maple cos that would no longer be convenient.

Thirdly, I TRIED to look for landed in the area (only around Sentul East and West vicinity) within my budget and let me say.. the choices are either undesirable house condition, hated the surrounding or waaay too expensive. Again I was looking at proximity of the location so Gombak, Jln Genting Klang, Setapak, Mount Kiara, Segambut Dalam or even northern Jln Ipoh was out of my target.

So yeah my purchase was firstly based on NEEDS and then once that was identified... we pick the best for our budget based on our WANTS.

Hence when the right deal came along.. we decided to grab it or else we would have continued to wait till end of 2012 as we initially planned to.
I have.. but the bulk that contributes to the debt levels are unfortunately from the low income group for whatever reasons it may be (unable to earn enough for necessities spending or spending beyond their means). Is this situation alarming?  Heck of course it is.. cos the disparity between income groups will widen even further. The more pressing matter if you guys are talking about a recession or downturn next year or so.. trust me when I say that when the economy does picks up again.. the disparity will be even larger. This is an issue our Gov should have looked into years ago but also a price to pay for progress I guess.

then all properties developers with undeveloped land should not develop it into properties. make into memorial centre for the dead ppl. coz dying cost more money upfront than the property you are buying now.

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Added on December 17, 2011, 12:06 am

yap ah loi story. LOL

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Added on December 17, 2011, 12:08 am

taiwan property is not cheap. and they only afford to live in pigeon holes

Price surge and expensive mainly at prime area, there are still plenty of property that are affordable, from low cost house to house at outskirt of town or non-prime area.

Property market supply is always like that, no profit no build, market no good, no build, the supply and demand side of story is already skewed from the start, the game is always like that since long long time ago.

Home is a basic need, but owning/buying property is not.
It is not a must to buy a property to be a home.
Nobody pointing gun on anyone to buy.

In fact, with such low rental yield, (property price surge but rental rate is not), rent can be good alternative.

Myself live in a house that rent for more than 20 years since I was kid, and it was called HOME for more than 20+ years.
In fact, rent can beneficial and free up cashflow and liabilities issue as well.

Yes, I can agree and understand excessive speculation can cause bubble, which can be worrysome, but nobody knows those buyers are buying for flipping or actually genuine buyers, or just for the sake of invest, keep (there are many fall in this group, but you can call them speculators, but they do have holding power)

Unless you want to control the property market as well aka like controlled item, which by then kill the economy as well in the process, because property is one of biggest sector that contributing to the economy, as it involved hundred of small sub sector across.

Some control need to be in place, no doubt, I also strongly support, like RPGT, (you profit you pay) to discourage people from speculate too much, and should abolish no downpayment or little downpayment, aka a law insist at less 10% or more down payment is a must for any S&P etc.
But you cannot control it like controlled item goods.

No matter how, the market is still about buyer-seller willingness all the while.

Im a Buddhist and sure believe in Karma, actually i had thought about this too, it is ok to buy now and sell later for profit, directly or indirectly driving up the market price, making itmore difficult for future buyers like me who just enterd the housing market looking for a nice decent home to stay, but prices gone up by RM200k-rm300k, so instead of paying RM300-400k, we end up with no choice but rm500-RM700k prices and have to pay most of our salary for the much higher monthly installments...but if the speculators and investors are guilty, so dothe agents and developers....i guess they all in the same boat...but its hard to blame the investors too...they are actually using their money to take a risk, eg risk of econonmy slowdown, interest hike, unable to sell or find tenant in the future, abandoned projects etc....they are taking a risk now, and like all investments, posibility of profit and loss, buy at the wrong time and place, and either loss, small profits or big profits...they r undertaking the risk for future buyers that
Cant afford to buy now....so in the end, theres no black and white, just dont be overly greedy, thats my two cents...

I also think investors are not cheating anybody, if the market prices rose after completion or in the future, surely u dont expect them to sell below market prices?? If he bought at RM600k, and upon completion some agents tell can sell for RM800k, why not??

Im not an investor, just a first time house buyer who entered the market at maybe the wrong high price time, I also just bought another condo for investment, sometimes it is good to try to view from another persons persepctive insteas of blaming them as greedy bad people.

As for DIBS it has its pros and cons...it helps people who cant afford to pay the 10% downpayment or start paying monthly installments to invest or buy a home now, actually if we abolish DIBS, the rich will get richer, becoz only they able to afford pay the downpayment, people who cant afford now will be forced to buy at a higher price when the property completed snd they able to afford in the future...and dont say willing buyer seller, most buyers dont have a choice, either they buy, or others will buy....its the sellers market now

Finally material prices and cost also in the equation, in the end there r many many factors...

I believe Penang Island properies price will much better compare to KV
If me not mistaken, Penang have the most millionaires in malaysia

When property market develops move up momentum, it is not stoppable by itself. Neither the sellers nor the buyers can stop it. As a responsible government, it has duty over the poorer people, it cannot let the property market monopolized by a small group of buyers.

The art of the game is to give the right dose of the medication. If the dose is too heavy, it will kill the patient too. I think China is doing the right thing. It's painful, it crashes a few companies but it's necessary. Good medicine is bitter.

The Malaysian property market is not going to be affected by the general election.

Our government has many developer friends.