Quite amusing to see property buyers getting excited about paper increases of their perceived property values. I guess this just goes to show how influential property developers have become that the average property investor is now more focused on paper increases rather than actual appreciation.

https://forum.lowyat.net/index.php?showtopi...&#entry65056947

Iskandar was built with the sole intention of luring Singaporean investors. But with the recent curbs implemented by the Gov, how do they expect this project to appreciate in future? If I were an investor, why would I pump in RM2 mil for a condo in JB when I can pump that same amount (or slightly more) and get one in the Golden Triangle in KL with much better prospects for capital appreciation?

The key difference is that KL doesn't need Singaporean investors while Iskandar is almost totally reliant on Singaporeans. 70% of the properties in Iskandar bought by non Malaysians were purchased by Singaporeans.

And yes if u were a Singaporean you would invest in Iskandar but would you invest in a RM2 mil (starting price) condo or would you invest in a landed property?

That's my point.

Then why is the take up rate only 50% 7 months after the initial launch?

Does anybody know anything about property valuation prices coming down in some areas in KV?

This is another good article share by someone else:
http://www.businessinsider.com/are-you-the...he-table-2011-6

So what loan interest rate did you use?

Many ppl don't realize that with every property slump comes many other problems. It doesn't just affect investments but also ppl's livelihood. That's why we should and must prevent property slumps because the recovery can stretch for years.

I guess nobody will know this soon. Maybe sometime mid 2014 or early 2015?

Which new development did not sell well in the past few years? Rarely have I heard of a new launch that didn't do well. Its not the initial launch sales which are gonna determine if a property development is gonna do well in future or otherwise.

I always use The Twins, Damansara Heights as a key example. Take up rate during launch was very good but see what happened after VP? Despite VP during the height of the boom (bout 3 years ago), today 70% of the units are unoccupied. Original buyers are stuck with the units without being able to sell or rent and many are now resorting to renovating their units in an effort to offload them.

If this can happen to a development in a prime area, what can happen to non prime areas? Yes, property is a vicious cycle for those who aren't smart enough to read the warning signs.

Many investors are just focusing on the sales of the new launches. Not many are looking at the subsale market where the reality of the property market can be seen.

I think alot will depend on the new rate framework that BNM will announce early next year to replace the current BLR system.

Guys, lets face it. We all know the BLR will go up next year but im quite sure we'll only be seeing a max 50 basis points increase which would put the BLR rate at 7.1%. But with the newly proposed BNM benchmark to replace the BLR system, i would think that a max uniform rate of about 4.6-4.7% would apply. This increase is not meant to slow down the property market but to weed out speculators and those who go into property investments with the herd mentality. The real investors would not be affected. With this move, i expect property prices to stabilise and become more realistic. Removal of the DIBS and other measures are meant to curb property developers from having a free reign in raising prices and raking in huge profits at the expense on unwary buyers.

So now i dont expect a property market crash. Probably a slump or stagnation of prices which is quite alright.

We will have an idea about a year from now. Dont really need to wait 3 years.

When you say price has gone up to 700K are you refering to word of mouth, asking prices, sale prices or valuation prices? Because all 4 are different.

I dont think there is gonna be any epic style property crash. But what might happen is a 2 stage property slump. First comes the stagnation and poor rental market. Many of the investors who bought new launches with the herd mentality dont have the financial sustainability to hold their investments if they cannot sell or rent out upon VP. These ppl will then be forced to let go at lower prices. If it is widespread enough, then ull get a slump. And judging by the number of new condo's now which are only experiencing about 40-50% occupancy rates, im sure the situation will get worse in 2015/2016.

Just a side track. ABS brakes don't stop your car faster or in a shorter distance. Its just a mechanism that allows u to manoeuvre without the wheels getting locked up.

Again i ask the question: How many ppl have actually surveyed the secondary property market in KL/Selangor? How many ppl actually know whats happening here? How many ppl are actually looking at completed condo's and gauging how easy/difficult it is to offload the units upon VP?

Many Malaysian investors are just buying based on whatever rubbish property developers feed them. They treat developers as Gods and hence every word they say should be believed. Lets see where these God's disappear to once the slump hits in 2015/2016.

Rubbish is still rubbish just that some rubbish is coated to hide the stench.

Read my earlier post. I used the word MANY which is quite different from ALL.