Bias view~~sinz u have already owned 2 properties~~

Anyway I am not an expert in property market, below are just my 2 cents based on the basic supply and demand theory~~

Typical Malaysian (in KL to be specific) may find it hard to cope with the current property prices, this is why it makes property below 500k is very attractive and were taken up at an insanely fast speed. Property over 500k is hot as well due to speculation/investment PLUS EXTERNAL DEMAND which is fuelling the higher end market. The demand SEEMS to be good (if not crazy)~~

But banks are slowly closing their tap, getting more stringent in the approval process, more reject loan cases happened, not a healthy sign for demand

At the fundamental level, actual citizens who are really moving into the new property is rather low and slow. If you look at the threads posted here, the occupancy rate for new condos, like scott garden, G-residence, Zest or even Setia Walk some what worries me, after one year still below 70%?

On the supply side, developer are taking advantage of the increasing property price, most of them were RUSHING for new projects, supply is plenty and sales is good, project financing is not a big problem. The downside is that, most of them were aiming for higher end market with prices above RM500k, again, foreigners (external demand) can buy these units upfront with basically no obstacles, sales seems to be no problem again and hence more high end construction, units are getting smaller in order to squeeze more revenue from the piece of land.

At the wider market, China is slowing down, USA is recovering slower than expected, Japan suffering due to strong yen, Europe in never ending deep shit, the macro outcome does not seems good. External demand may be limited in the near future.

My conclusion:-
With supply increasing and fundamental demand unable to catch up, if the external demand is, weaken / stopped / regulated then the effect on local market might be great. Local demand is strong for lower end property where working class is struggling to get one. Higher end ones, how many of you are actually buying for own use? Some say rental market in KL is growing, but the supply is even more.

Therefore, with all the above, I believe we are moving towards the property bubble… but of course no one can predict when it will happen, some mentioned it years ago and it never happen and prices continue to grow. But if all this unhealthy event continues, the dooms day wont be very far off.

As a new property owner, I do hope the prices will maintain and grow at a reasonable rate and not the current booming rate.

This post has been edited by terryble: May 23 2013, 02:38 PM

No worries, you are definitely not the minority, im quite sure a lot of "US" are following your steps~~ i've been working for 5 years+ and i am also quite frustrated with my pay~~

Salary just cant chase up with the property prices~~even the loan is extended to 40 years or until u are 70 years old~~

This post has been edited by terryble: May 24 2013, 12:16 PM