if they further strict lendings, they might afraid that our economy might head into recession as the global economy outlook seems not promising. If they maintain low interest rates, inflation might shoot up especially the property price.

I would suggest on restricting the loans. Shoot up the interest rates before it crashes further in the future. Just my 2 cents..

the bigger the %, the higher the dilemma. US have similar issues and also most of the countries right now.

exactly that's the dilemma. The main point for cheap loans, is to further improve GDP. But somehow it failed. Our household debt vs GDP is not improving. So, what if the % reaches 100-110%? Commercial banks will soon have problems. That's bubble.

becos much of our cheap loans have been used on "good life", cars and prop speculation.

do you see many real product amd value creating projects like factories, farms and fisheries with new billions invested?

the below does seem right about mysians, incl this thread, just see how many posts made everyday for "buy"!

From a long-term growth perspective, they distort incentives to work, save and invest in value-creating activities in favor of rentier wealth or income from property “investments” (or speculation).

i think this cheap loans started to boom up back in 2008-2009. At that time we were in small recession because of FEAR. People spent less, investors took out money from stocks (hence, explains our stock went bearish). BNM had to increase money into the economy by providing cheap loans. The money didn't effect much of our inflation because most loans were home loans...

Credit bubble imminent as Malaysia’s household debt rises
http://www.themalaysianinsider.com/malaysi...old-debt-rises/

ya..we got lots of young foreign workers here. They contributed to Malaysia GDP too.

GDP in construction? How much the cost of the food and expense they really spent for GDP? or they just take the RM, convert to rupiah and boost their GDP in Indonesia?

Haha I think he is being sarcastic    Compare to Singapore who only take in filthy rich migrants 

Why didn't they hate Malaysian and Indian? These people took their high pay jobs.

Lol!!! I guess that for those who fear/ think that prices will continue to rise forever please go buy now... Lol... What better way to expedite the bubble bursting then to make it even bigger... Faster buy... Hehe...

Yeah...please buy more...faster buy to make the condition even worse. I had change my mind, by doing this. The next generation can be save. Flipper, please continue to flip.

Expect home prices to continue to climb, says BNM

Story by
Aidila Razak
aidila@kinibiz.com

Property market trends are spelling happy days for property investors, but less so for home buyers.

According to Bank Negara Malaysia (BNM), residential property prices surged by 11.2 percent last year compared to 2011– more than double the 10-year average–and are expected to continue to rise in the next few years.

This follows its steep climb starting from the third quarter of 2009.

“Over the next few years, the increase in new home buyers is likely to continue, exceeding average growth in housing stock.

“(This is) notwithstanding measures already announced by the government to add to new supply which are focused mainly on the low-to-medium priced segments,” the central bank said in its annual report launched yesterday.

BNM said prices in the secondary property markets, particularly in Kuala Lumpur, Selangor and Penang have been pushed up due to poor supply of affordable new developments.

A great bulk of new developments, it said, are priced above RM1 million, forcing 80 percent of property transactions to take place in the secondary market.

It said that these higher priced transactions were also responsible for pushing overall prices up.

“(The growth) was driven mainly by higher prices and transactions in the detached, semi-detached and luxury high-rise property segments,” the central bank said.

Construction costs not main driver

Putting to rest developers claim that property prices are driven by higher cost of construction, it said that cost of construction has grown at a much slower rate in 2012.

“Rising construction costs have only partly explained house price increase between the third quarter of 2009 to the third quarter of 2011, but the costs have been increasing at a slower rate in 2012,” it said.

On the investment side, returns on investment on residential properties averaged at about 4.6 percent over the fourth quarter of 2009 to the second quarter of 2012.

In 2012, capital gains grew by 11.2 compared to the year before, in line with rising property prices.

All the same, BNM said speculative activity in the Malaysian property market is “low…compared with property markets in other countries”.

Investment by foreigners account to a modest 2 percent of total number of property market transactions, it said.

It added that regulations and fiscal measures had drastically cut the owners with multiple housing loans (particularly for houses priced below RM250,000) but the figure is back on the rise mid-2012.
http://www.kinibiz.com/story/corporate/103...b-says-bnm.html

well... bnm says suck it boys and girls... prices rose 11% in 2012 vs 2011, speculation here is lower than elsewhere... consturction cost rise is minimal (meaning developers are sucking buyers?)... prices will keep rising... and pls stop saying foreigners are pushing up prices - they're only 2%.

rising home prices, faster rising debt, what's our economy getting into? dangerous times, be careful , be very careful...

Bro, u worried too much la. Just wanna know do you also worried your daily meals? What I always tell my frens are u eat also die, no eat also die, y not just eat? Haha.

well... bnm says suck it boys and girls... prices rose 11% in 2012 vs 2011, speculation here is lower than elsewhere... consturction cost rise is minimal (meaning developers are sucking buyers?)... prices will keep rising... and pls stop saying foreigners are pushing up prices - they're only 2%.

rising home prices, faster rising debt, what's our economy getting into? dangerous times, be careful , be very careful...

I stay in Puchong for 15 yrs and I dare not to claim to know Puchong well, and you talk like an expert, you are Good.

Why didn't they hate Malaysian and Indian? These people took their high pay jobs.