Yes property prices will come down heavy mb max 20 %.and sales at the high prices will be very slow. One the economy cannot sustain that high income and secondly all the indicators are already there. Thats wat happen in in usa dubai europe. People know on the problem 3 years before but more people and banks come to grip
At later stage wen its too late. In malaydia people have been talking about the high prices and sustainability over the last 2 years but now do you notice that more people are taliking about it now. So it will happen

History lesson way back 1999 everyone was into share market. Crazy time where people just buy shares unit trust and bonds . Even bond also price more than par rm1.40 per unit. Not suported by fundamentals and advice thrown out of the window. Then suddenly price drop like stone and all speculators who came in late or hold were dead meat.
2012 A repeat but now its property. Just like the share market good location can make a comeback but not to t price it was. But those which are way off market or not so good location will be dead. U can hold forever like the dead share stock. Trust wat the fundamental is indicating. Good luck.

2012 too many uncertainty. Too many dibs program offered by smart developer just to make sales where these will come on board in 2012. Will t buyers able to hold or just waitiing to offload And to sell to new buyers. Im taking a risk that it will come down. Its a calculated risk. As if it doesnt price is not going to go up too high also

Its what you call reality check. The easy flipping days are gone am afraid. I also wish it can continue but those were the good old days. Now different strategy is needed

He should have bot rafflesia at mk land value for money

He should have bot rafflesia at mk land value for money

Interesting articles on property slowdown in 2012 on www.starproperty.my
Consensus outlook is slowdown n impact on dibs buyer schemes. So wats ur decisions. Hold if u can. But as more property gets completed by 2013 u may be just too late. This is hard. So wat to do. The smart developers have our money. They know money is king now.

If interested in property buy reits or property share so that u dont lose out

Obviously sales of new units have been very slow. Reality is more and more people are playingwait and see. Developers try all means to woo them. But its easier for new buyers to pick and choose now as thers less crowd chasing and booking units. Used to be within 2 hours gone, now 2 months so many stil availble. So those who can afford can shop now till end of year to collect good properties. Forget those areas wch are so far off kv.

No touching condos

A friend found that his sales at nearly double the price to a buyer didnt go tru. Buyer paid 10 pcnt then cancel. Is this the start of 2012 reality check.

Never know with Desperate times

Notice that a number of good developers have to review their strategy and focussing lower price units to develop. But not so good ones trying luck to still develop the higher end and giving all kind of goodies.

I am inclined to believe that good location there be demand and would increase vis vis the econom.. If economy not so good chances are u can hold as prices will be sticky to come down w demand equal supply. But having said there are some proprty or condo where its just ridiculous. Where the location is not good but demand is just being artificially created then buyer must be aware. So in summary all comments are correct but as tge master always say u get the right location and "affordable" to u. Chances u be well off. But choose the bad location at your peril. Happy cny.

Theres not much land availble in klang valley. The developers not going ti develop or sell below current prices. It maynotgo up but no way coming down. As for the second hand market its demand n supply. For sure theres some xcess supply in some areas where location is not so good. Outside kv thats concern as prices are off i believe n need good economy to sustain. My 3 cents.

Prices highly corelated w interest rates. Current low interes rates push demand n banks fuel demand due to need to increase profit n their bonus. Q1 will interest rate go up? Inflation will push interest rate up. Q2. Will inflation go up? If u think interest will go up then price is coming down. But then japan had been suffering low interest rate for decades n prices just stabilise. Will that happen here. No one knows. Is usa and europe interest rate will stay low for some time? May be.. May be not. But prices have come down in usa. This is wat u called analysis paralysis. At the end u buy wat u think is the value to you and wat u can afford. If u like to speculate then be prepared as it is risk n return. U call the dice on the roll.

U can look at profit made by the listed dvelopers. Not really high but easy money as they sell during construction to buyers n speculators so as not to take the sales risk. If they were to hold probably they can make more but they dont have the holding cash power. Also they need to buy more land to construct more n lately a bit more inovative n classy residential area w good security n convenience. Guess they go for volume previously but now upmarkete. Cost is going up n compare prices like bangkok n sing we are cheap rlativeky. U have to compare kl w other cities. Kl need to atract investment w good infra n clas acomodation owise we lose to our neighbouring cities. We can be cheap n go for nepal type of housing scheme but will that attract higher value type of inv. Mb outside kl lah.

I never said developer is honest. Have u ever seen developer whos is honest. But reality is they are just constucting to make a living. N taking risk of no sales higher cost pay bribes u name it they do it. But thats not wat im alluding

Why need bad economy. Just dont buy. Actually its cheaper currently to rent than buy. But people keep queing n borrow n buying. Stop buying.

There have been good questions on sustainability of property prices. Even foreignrs are saying prices are too high relatively to general income level of the mid to high income earners. But prices have been sticky to downward movements. Why? 1. Because interest rates are low and people can still afford to service
2. Dibs. No need to pay until completion in 2013 14 15.
3. Economy is still ok with high employment rate
4. High consumption with higher debt by consumer
5. Confidence that we wont suffer like dubai europe usa etc

So any one or two above can translate into an avalanche that can advesrsely affect the price of properties.

So eventually in 2012 2013 high debt speculators will die. The vultures will pick up the pieces. Thats wat happen in iceland. The debt holders got huge haircut but the people who didnt bot all the cheap properties at affordable prices depebding on their income. Now all is well in iceland w prices in line with income level.

This post has been edited by mellomm: Feb 14 2012, 10:23 PM