Agreed. That s a 2 years old condo in Malaysia looks weired than 10 years old flat in Singapore

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Added on August 31, 2012, 10:39 pmTo be accurate, raise within a year.

This post has been edited by brianccg: Aug 31 2012, 10:39 PM

You have made an important point!

Building has depreciation cost. What make the value up is the rate of land price appreciation (scarce & limited naturally) outpacing the rate of building depreciation. Many 'modern people' forget this simple rule.

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Added on August 31, 2012, 10:59 pmHigher interests rate in Australia show the central bank there know what they're doing.
Higher required down-payment provides better home equity for the owner and safety net for the lenders. Speculative buying is minimized.

Australia central bank practice is much more conservative and prudence. Malaysia, honestly, is quite lax relatively. Even in Thailand, the down payment is 30% and China, coastal city as high as 50% (recent rule is 2nd home in 1st tie city is 80%!!!). In the event of recession, though property price can drop but the financial institution there has much bullet to cushion the sudden value drop. Besides, Australia & China has massive reserve and lesser debts.


This post has been edited by agentdiary: Aug 31 2012, 10:59 PM

Another similar thread .. but interesting!

Please tell us more specifically:

1. What precautionary measure that will kick-in in the event of market crash that will balance the market (if so unfortunate happens)?

2. Market correction. Please enlighten us how real estate market correction works.

3. What is inflation? And what inflation lead to?

I can only see your point valid if a large majority buy house CASH or lesser loan. Fact is: Most buy on leverage. That's my main concern.

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Added on August 31, 2012, 11:19 pmPlease explained.

This post has been edited by agentdiary: Aug 31 2012, 11:19 PM

My take:
- property investment market may cool down a little in the next 1-2 years due to challenging macro environment.
- however, property in good location will be sustainable
- Demands are reinforced by overall healthy household balance sheet of the middle and upper classes
- Plus, looking at the demographic of Malaysia, the sizable population btwn 20-39 will sustain the demand for housing especially for mid and entry level property
- Singapore investor will keep coming to hunt for good property esp those btwn 500k-1mil, due to stronger SGD
- also bcoz some of the property investment by wealthy investor are not really heavily leveraged. Many rich man buy with cash.
- therefore, market unlikely to crash.

This post has been edited by nanoe: Aug 31 2012, 11:51 PM

U sound and talk like those well prepared speeches by developers and media, with politically correct words such as " market may cool down a little, challenging macro environment" etc etc...no 20-39 year old will be able to afford those Rm600 k condos, not even those RM450k on their own

No one ever say everybody and anybody can afford property. A person just graduated and work less than 3 years is financially challenged to save for property for 500k property, no doubt.

But does not mean these group are not in the market and need for property. This sizable group is indeed reprsenting a huge demand in market. Thus, inherently the market demand is there, albeit the market is responding cunningly by having a higher asking price. This is how demand supply works.

people in late 20 and 30s stand a better chance finncially as saving and income progress. Also, In reality, many people Join income with spouse, or parents provide subsidy.

Bottom line, demand is till strong and reinforce the market overall, ESP good location.

huhuhu

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Added on September 1, 2012, 10:16 amYa lor, I am in my late 20s and I cant afford RM450k on my own, let alone those RM600k condos

This post has been edited by AMINT: Sep 1 2012, 10:16 AM

Nowadays the majority that take up units of property landed or condo even before they are launched are speculators or investors, not those who are looking to purchase a home for their own stay. Most of the investors would make money as once construction is completed, it is likely that potential buyers would commit to a purchase.

Nevertheless, it depends on price and demand. Especially condo units, there are many units available in Klang Valley. It is not easy to commit to condo unit that is priced above 600k especially the younger group of middle-income earners. If there are excess or abundant units that can't be sold or rented out by speculators who grabbed them at a very early stage, they might be forced to sell them at below market price as they can't be holding them for too long and servicing the bank loans themselves, especially if they have 5 to 10 units in their hand, if you get the gist of the issue.

Property prices are at their peak at the moment and has potential to go up further. However, there is also possibility that in some circumstances as mentioned above, low demand may force sales at below market price. On top of that, the government may impose or implement certain conditions to keep prices of property from spiralling even further. It will be interesting to see what the government can do for the property sector in the upcoming budget announcement. It may not be much, but there will certainly be some effort to at least stabilise the property market a bit.

That's why i said, go join income. Get married.

Ok, noted. thanks for the advice. I appreciate it. hehe

Yeah, many speculators out there. But many of them are rich speculators too. And this group of ppl don't mind hold on to their property for longer term if market is slowing down. Thus, it may not trigger fire sale.

Also, ppl reaching 50s are also withdrawing epf to buy house, either to invest, or for kids.

The loan limit is already there, it works or some but still, the richer investor are not really mpacted.

Demand still robust. Market may cool, but my not crash. ESP for good location.

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Added on September 1, 2012, 10:43 amYeah, two is better than one

Unless you got rich pama

This post has been edited by nanoe: Sep 1 2012, 10:43 AM

ok. good read.

Imo Unless you're some sort of guru, else better just keep your "view" or "prediction" to yourself. It will be very embarrass if things dont go your way few years later.

No disrespect to TS. Enjoy your opinion.

Not siding with anybody and certainly not to disrespect your comment.

Anyone can share their views and invite healthy debate. Even economist can get it wrong and stand to be corrected later on.

This post has been edited by nanoe: Sep 1 2012, 10:59 AM

Yeah healthy debate is the word. One can correct another one's mistake but not humiliate. Many here dun realise bout tat.

Foreigner influx will keep property market demand going up. Did not realize the increase of Iranian or African (generally) around your neighbourhood?

so IF your prediction is correct, then please expect more demand from them result from cheaper living cost.

And there are a lot rich country citizen looking to retire in country like Malaysia because of home country economic trouble. Did you consider this in your prediction?

Before joining this forum, I still not fully understand why so many people or the 'Majority' of people are bugging about can't afford to buy houses/property. Joining this forum makes me sees the vast difference between 'Majority' and 'Minority'.......
The 'Majority' > Discuss and chat about WORRIES and PROBLEMS!
The 'Minority' > Discuss and chat about SUCCESS and SOLUTIONS!

*I will reply to anybody, I'm not here to prove anybody anything.

Welcome to the club!

Majority on workers in Malaysia earned Rm3000, or below, if prices continue to rise, majority wont be able to afford on th eir own, and even when joint, really stretched their income limits...if landed 2x now Rm650-700k, do u seroiusly think most people will be able to afford, when sellers or agents started to ask for Rm800-900k?? Even most old condos in Damansara and Puchong area asking for Rm550k to Rm 600k, with newly launched from Rm600k..just two years ago, those same old condos only Rm400-450k...when new condo came up starting from Rm500k plus, the agents pushed the prices of old condos to match those new units..it happend in Damansara Perdana and surrounding areas...those greedy people will make many young people broke and bankrupt when market really crashed, can they seelp at night