It depends on when you came in. In a nutshell those that invested earlier say 2006-7 and rented them out would be ok. If one just entered recently at higher prices...then things look dicey.

The paradigm can shift almost overnight. Those that bought earlier can adjust their asking prices and still be 'sustainable'. But what about those that bought recently and dont have the advantage of a few years of appreciation? How low can they go without feeling pain?

Say i bought a 1300sq ft condo in 2006 at 400k, and today my asking price is 800k. During a glut i could lower it to 600k if desperate and still feel ok as i've covered my installments by rental all these years. If i just bought a 700sq ft condo recently for 500k then now expect a market price of 650k, during a bust how low can i go if i need to sell it? Considering that there are more value for money units at my asking price (larger units, established address etc)

Im not familiar with the area but i would question:

Is it a good buy for you at this price today? Then ask will it be a good buy later at, say 30% higher for your target buyers? If yes to both then you know the ultimate answer. Do you have a rough idea who will buy/rent it from you later at those prices? Will loans get easier to come by when youre ready to sell?

Double edged prophecy dude.

Bumi lot & bumi discounts can be two separate matters i think? If bumi discount but not bumi lot i think there are no restrictions. What you describe is referring to bumi lots. I may be wrong. What i mean is a unit given bumi discount is not necessarily a bumi lot.

This post has been edited by Wiredx: Feb 8 2014, 11:24 PM

Price increase based on developer launch prices? Or subsale data? If based on dev this year will also see an increase imo

Hmm it says thats for high end condos in KL. I dunno what was the sample pool.