In addition, started from year 2008, the house loan interest rate drop a few percentages and banks further compete with negative BLR. Repayment is up till 70 years old and this increase the loan duration while in effect reduce the monthly installment. Some developers were innovative to work together with banks to offer attractive financing, DIBs plus all other cost absorbed.

Property prices will still rise at a faster rate than other investment.

Yes, you are right

In the news report it mentioned price of around RM1Mil as a criterion.
I wish to add that there are equally important criteria such as land size, built up size, quality of workmanship/materials, convenient access to public transportation etc.

The main point I want to make is that the survey is questionable and vague. This should not happen when conducted by a leading property website and reported by a senior columnist of a leading English newspaper.

Interest rate coming down soon?

copy from Btimes.com.my

SP Setia confident of hitting sales target

SP Setia Bhd is still confident of achieving its sales target of RM4 billion in its financial year ending Oct 31, 2012 despite Bank Negara Malaysia's new guidelines for loan borrowers.

President and chief executive officer Tan Sri Liew Kee Sin who welcomed the ruling, said the move would ensure only genuine buyers who had no financial problems own a property.

"The whole idea of the central bank is to dampen property bubble or credit bubble which is going on.
"Though the ruling will definitely affect the property sector, but we in SP Setia is confident that we can still achieve RM4 billion sales, driven by both local and foreign property sales," he told a media conference after the company's annual general meeting in Shah Alam, Selangor today.

Under Bank Negara's new guidelines that took effect from Jan 1, a prospective loan borrower will be assessed based on net income basis (instead of gross income) after deducting statutory deductions for tax and EPF and all other debt obligations (eg. car loan, other housing loan, credit cards).

Liew said SP Setia had already locked in sales of RM933 million for the first quarter of its current financial year ended Jan 31, 2012.

This represented a 27 per cent increase over the sales achieved in the corresponding period of previous year of RM737 million.

Liew said sustained demand for properties in the group's existing projects in the Klang Valley, Johor Baru and Penang would continue to underpin the group's sales performance in the 2012 financial year.

"We have many exciting new projects to help us capture new markets and further diversify our product mix.

"Our strong balance sheet also gives us ample room to continue to aggressively pursue opportunities to acquire good landbank thereby locking in future growth," he said.

Meanwhile, Liew said the SP Setia group also was keen on the London and Vietnam markets and was looking at opportunities there.

"We are looking at acquiring land in downtown Hanoi and Ho Chi Min for our property projects which will be more customer-based.

"SP Setia is also looking at acquiring land for property projects in London city as we want to make London an important market for SP Setia," he said.

Elsewhere, he said the group was targeting at least 30 to 50 per cent sales of its projects in Singapore would be from Malaysian buyers despite the 10 per cent increase in stamp duty for foreign buyers in the republic.

In Singapore, he said, the group would launch its maiden project namely a high-rise condominium development called Woodsville. -- BERNAMA

Agree regarding KLCC and MK area. Still has room to come down. Landed properties at Damansara and some parts of Klang valley price will stay.

These messages tell you one thing in common, vote the right party for stability and continue economic growth.

Malaysia is a blessed country, free from major natural disasters.

I agree with most of your comment. I welcome negative comments too as it maybe right because everyone has a blindspot or blinded by the herd mentality. But I do think that unsubstantiated comments are harmful. Do you believe Orchard Road in Singapore is a high risk area because it has flooded twice?

There is no easy way to predict the market cycle in order to time the highs and lows. Instead we need to have a longer term projection and ignore the minor cyclic noise and interference. With that, if we are confident, then we should maximise bank loans o(ther people's money) to leverage against inflation and do the longest term repayment possible because future value of money diminishes e.g. RM 1K in 30 years time may be only worth RM 50.

Will implementation of mega projects result in tight supply and higher prices?
http://biz.thestar.com.my/news/story.asp?f...5&if_height=668