I think it is more probable than not.. the staggering numbers of empty and vacant is the best proof.. u can gi on and drive your car to these area I mentioned and see.. please dun fool the youngster of the plan of investment by buying ftom you.. youngster very charm leh need vios credit card.. fancy food.. haizz

Even without the increase the market already like this.. now even increase their pay/business still d same. You are targeting working class the middle class right.. can they afford many units wont be vacant..

Unless Malaysia economy is unconventional and defying conventional economic theory or gravity, else where when home price to household income ratio exceed 8 or 9, property transaction and price decline is almost assured.

It is consensually agreed that most income raise slower than home price, most home price is beyond most people reach and amble supply under construction or approved. With these, number of transaction and price to reduce is almost certain.

Folks,

I have no idea whether the property bubble will bust in 2014.  But, given that the house price had gone up much much faster than the general income level of Malaysians, many houses are no longer affordable for Malaysians.  So, the questions come down to where and who can support the demand since it is not supported by local income.  Now, some people assume that returning Malaysians working oversea, Singaporean, unofficial income and so on can support the demand.  I do not know whether this is true or not.

So, this is THE QUESTION that anyone want to invest in Malaysian property market need to answer for themselves.

Dreamer

Property is for long term investment of above 5 years holding period. Obviously investors should be diligent in expecting a few up and down economy cycle. This is basics of investment.

For short term investments the obvious one is equities. For middle term one go for unit trust.

I consider myself DDD camp because I want to pick some dead chicken. I hope the flippers will suffer big time. But when the argument goes into high unsustainable property prices vs low growth in income, we have to zoom into our unique market development over the last 3-4 years. What is the cause of high property prices even without income growth ?

The demand which causes the soaring property prices is not in proportionate to our income growth. On the other hand, the demand is mainly due to the rise of a new category of buyers who previously cannot afford to buy properties but now become a buyer thanks to DIBS+ZERO ENTRY COST.

This new category of buyers typically are young FRESH GRADS and FLIPPERS who take advantage of the bank and property developers' innovation only seen for the last 3-4 years. We can see in the new launches more and more young people which previously we only see uncles and aunties. That is because previously when you want to buy property you need to prepare at least 15% of purchase price. But now, although this new category of buyers do not have the initial capital of 10% for deposit + 5% incidental costs, they now also become legitimate buyers and add fuel to the demand. This is not possible before the introduction of DIBS + ZERO ENTRY COST. Look at the 13th GE. There are additional 2.5 millions of young new voters. Of these 2.5m people, the are many who joined the bandwagon and cause the increase in demand in property market thanks solely to DIBS + ZERO ENTRY COST

To be fair, these FRESH GRADs are legitimate buyers. They can afford the installments as long as they have job. So these category of new buyers are financially sustainable. Whereas for the FLIPPERS, they are gamblers and will face trouble if the market turn south and they can't flip their properties.

With the policy curb on DIBS + ZERO ENTRY COST introduced in 2014, suddenly the demand from these FRESH GRADs and FLIPPERS vanished. So the market demand is expected to be back to normal from this year onwards.

I hope this argument can explain the disparity of house prices vs income growth we see in the last few years

THAT MY FREN ... MAKES ABSOLUTE SENSE!!!!
IF you are draining cash and the property increment does not compensate the negative cash flow over the years it's consider loss. Which makes it quite troublesome because you have to estimate when the property will pick up again and by how much.

Especially condo/apartmt that requires monthly installment. 

Bro, wat is COCR? 

Care to elaborate bro? Must you put in big cash deposit to reduce loan? Just guessing. 

Yes I think so too. The new launch will be very very few this year. Without DIBS + Zero Cost Entry, many people will think twice to invest >RM100k. As the demand is reduced, so will supply until it reach a new equilibrium. Good times are over 

Previous few years you just need RM8k-10k to buy a RM400k property. Upon VP, sell for RM600k. From RM10k cash you invest, you earn RM200k. COCR = 2000%. Better than drug dealer 

I add up all in your list. 3,000 units only. I think there is not enough supply! Every year, how many people come out to work in Klang Valley???

Some more, all those areas you listed a bit ulu one. Those prime ones in PJ/Kota Damansara/KL area serious shortage le.

Hello all just to share a "reality" of Gen Y today so that you can guesstimate our purchasing power and desire to buy.

I am a fresh graduate of local Uni (degree) with 1year++ working exp. Its already 2014 but I am still not able to secure a house. My friends are at the age of 24~27 years old. So far, their trend of lifestyle complied with Gen Y standards. I am lucky/unlucky to be born at KL, live here and landed a job near to my parent home. The unlucky part is that all the house surrounding me already at a bracket that require a 3k++ salary to own.

Back to our trend/thought of owning property, believe me when I said it is not even in our mind to own a property. Some of the "awakened" may start to look for investment properties but majority are aiming for:

1. Cars/Motors > The higher end the better.
2. Fashion sense > The coolest the better
3. Mobile phone
4. Getting married > Age of 25 is an age of desperation for love.
5. Fancy vacation
6. Social status > After achieving above points, we can claimed a somewhat "status" that we are brainwashed to believing it exist.

I am quite active checking FB, major of my news feed is about food, vacation photo, new car, getting married, but no one yet claim to own a house.

But if you think logically, there is no sentiment for our generation to own a house (yet) even after marriage. We are still looking for that "One" job, hence we might go to several places. If we are still singles, living with friends are the best thing that could happen. Do we need to worry about the increase of house price? I think we only cares about what phone will samsung produce to beat Apple. I know I cant generalize all my friends but most of my FB friends are also undergraduate, and sadly our education has not helped much in this matter.

If you want to wait for us, wait 2~3 years, when 1 of us started to own a house. When it become a trend, it will become a nice bubble. Until some of us with salary of 2k++ started to DP for a 300K property.

Just sharing my observation

Sure or not?

I don't think developers will be launching at all next year considering no dibs.....

Probably focusing on clearing old stock....

and risk not able to obtain the necessary sales if launch?

I think they would rather service their loans until they could make ah jib kor to reverse all his previous decisions last budget....

Thanks for your observation. The potential demand is HUGE in the coming years. Potential demand either in renting, or if they can afford, subsale purchase.

Huge shortage in housing supply. How can price come down?

I actually prefer Jibby reverse all his control on speculators,  let the market heat up then come PIGGS style property crash,  only in that manner we can expect dirt cheap dead chicken lying around.
Property market now r like Pyramid scheme, constantly need bigger fool at the bottom to catch the top shit,  once they can no longer find enough bottom fools they become the greatest fools & the Pyramid would end up as their graveyard.
Personally I read lyf comments similar to fairy tales at time, not only property talk, fast & furious as well, if you read fast & furious they would all said korean car is no.1 selling especially naza kia, no one buy Vios already,  but in reality Vios is No 1 seller for great many years till date, here in Property talk again u sell people still says BBB but did they actually buy ? I can always said I gasap 10 units Fennel but what's the prove ? ..lol
If really can afford multiple million property no need come here or no time come here to blow water already lah. .
Those who can afford already buy till their neck already in 2010-2012 now waiting for their VP in 2014-2015 some already VP in 2013, so very desperate to unload before all the  barang naik 2014 & gst 2015 take effect & water fish have less $$, so can see their drooling for naive fresh grads to be their potential victims. .rofl

Hope u all here can give ideas.  (exclude the political side as i'm not politician)

Ideas as to how to make KL properties more world class, more iconic, more higher standard of software like Green and Tenancy Approach and friendly to the international market as without good economy, we'll never achieve high income status.

Besides that, the Bumiputera community may have better participation in the real estate sector as more and more are now aware of property investments.