correction,

In year 2012, a condo cost RM 612,500

Shortage of 2 million houses. Let's assume 4 people per house. So where are those 8 million people living now?

The property prise will not drop but maintain the same only worse come to worse. Propert prise is still low compare in worldwide. It still has room to increase just got to wait for the household income increase only.If other country increase we don increase we are obsolete.

wrong, now bangla can also own prop >500k

http://www.themalaysianinsider.com/malaysi...e-says-yen-yen/

But by increasing upper limit to 400k, bank also don't want to loan to 2k earners (30 years loan, 0% down payment, monthly repayment ~2k).    Wahai Jib Gor ah Jib Gor, must have paycut for your beloved elite advisors instead of giving 7-13% increment for such a fine work in giving laughing stock advice lor.

Simple, only 1 simple step from bank. Max loan tenure 50years. Bank happy, earn more interest, mid class happy, own the house. Ah jip gor happy, GDP increase. Developer happy, sell more house. Idris happy, his 2019 vision come earlier.

Totally agreed with you.
It's better to compare this way rather than talk about drop back to 500k of 20 years story...
Property price drop  (as an example) from 800k to 650k, that is the definition of this thread all about.
I will be very happy even the price drop to 700k which should be on par with bank valuer.
Some just don't want to agree that the current prop price is too high (means 30 or 70% higher than the bank valuer).
Thanks for your support..... 

Govt pump up the market with cheap financing,everyone feel good for coming election.

After GE,harga minyak naik lagi. Then how?

Wait until after GE, when GST implements, subsidies removed, lagi best!!Another round of super inflation, then property price also try to ride the wave and hike again, but this round, the demand will be even lesser as even less ppl can afford to buy anymore

am i meantion about malaysia... i only meantion "ASIA" in general... from 2009 - 2012... the prop boom is in ASIA (china, sg, my, thai, hk, tw, india, indo'sia.......) not just in malaysia...

when u eat something too long... will u get full... this is concept of "saturated"... the ppl will vomit if continue eating.. 

With inflation, the wealthy one may eager for hard asset to invest to protect against inflation, property is one of hard asset.

Yes, transaction may be quiet down, but it doesn't mean price will plunge significantly.
It may due to fire-sale in initial stage especially those speculators and high leverage one, but with inflation factor, there is a limit how far a property price can plunge especially for prime location.
You will see "nobody want property" instead of price plunge too far in this kind of scenario.

Only poor one, makan also tak cukup suffer, but when makan tak cukup, there is pressure for wages increment across, so inflation factor coming in again.
Unless the consequence is recession happening, but if recession happening, inflation will be tamed down by recession factor.
So there are 2 opposite force acting one another.

Money will become more, not less if one understands how financial market work or economy works.
That's why rich become richer.

There are many cash rich people around as well as cash rich company.
Those rich bought those property are not for home, but as investment or park their excess money instead put cash in banks which earn zero interest (most countries ).

Yes I do agree, oversupply condition can occur, which could lead to price stalling or falling afterwards due to fire-sale, but properties nowadays, no longer bought as home already, but as investment.
As long as there are money that willing to invest in property, after sometimes properties situation become normal back after correction.

yes, prop is jsut an investment. same as gold, silver etc. how many gold /silver is for industry use or for jewelry purposes? how to measure "saturated point" or undersupply/oversupply? when to stop mining gold??

mining.. ? i hope lynas will be one of it....  Pui...Tui....

save malaysia!

I know SME/SMI are facing difficult challenge ahead, but undeniable, many SMI/SME are more well prepared in their balance sheet in current situation.
Situation out there are not rosy, many run well below capacity across.
I never said situation is rosy, I just pointed out, situation is not as bad that property must crash across.

As you mentioned, many are preparing for cashflow problem, means that many company are well prepared.
Market crash generally occur when people are complacency and not well prepare for difficult time, classic eg. prior 2008 global crisis, prior 1997 crisis, many company hit hard due to debt cannot be refinanced, and run into trouble of cashflow.

For rich, properties not only for playing or for ROI, they do treat it as "another money parking option"

Quite passimistic when talk abt long term, esp when crude oil depleted, real challenge will start when we become net importer of crude oil. Thks to apapa Tun auto policies, having a car is a must. When crude oil depleted and they have to cut fuel subsidies, the real show begins. Probably after GE13 some real show will start. Not much option left.

But again, mid term if the MRT project really get kicked start this yr, imagine +40 billion ringgit flooded the market in the next 5 yrs. This will certainly boost and sustain the market in mid term. Probably many foreign experts too will be here and sustain the rental market.

Before any smart alec predict the oncoming doom or gloom by merely looking at US/China/Oz, do check out the oncoming economy stimulus package and projects.

it's happened the whole asia countries except japan, no point to blame any party like governmnet or BNM. i think without the implementation and policy by government and BNM, we'll still follow the trend to shoot up to higher price.

yes, wages are higher in singapore and hong kong compare to malaysia, but their property price are very very expensive till beyong the majority's wages too.

You gave me a business idea..... should get ready to start up a maid training institute over here in Malaysia in order to ship out crude work force to other countries in the future.  It is not funny, I know, but no harm in making a bit of fun with our Malaysia's already dim future.

It's clearly mentioned for 1st home buyer below age 35 with 6-7k income, it's good for those wanted to own a sweet home but can't pay the 10% downpayment

Everything is expensive nowadays, petrol, food etc are expensive, sometime need clubbing, kao lui
It may help for some buyers, but the interest rate may much higher as clearly mentioned

Rich people don't need to default because they don't borrow much $$$.