Im doing the same.. affordable one I sure grab.. cancel fixed deposit oso buy if aafgordable

80% "households" as of the whole malaysia? I highly doubt 80% "household" income in Penang and Klang valley are less than 5k, and mind you these r the only places with 500k property as a norm.

base on your rational, if average household income in kuala lumpur is 8.5k, then 500k property is acceptable?
although I still take the report as a pinch of salt


http://www.theborneopost.com/2013/03/28/av.../#ixzz2P1frbKDj

Nor Mohamed said all states also recordeda better average monthly household incomes with Kuala Lumpur leading with the highest growth of 14.9 per cent from RM5,488 to RM8,586.

He said this was followed by Labuan with 12 per cent from RM4,407 to RM6,317, Perlis with 10.1 per cent from RM2,617 to RM3,538, Terengganu 9.1 per cent from RM3,017 to RM3,967, and Negeri Sembilan and Sabah from RM3,540 to RM4,576 and from RM3,102 to RM4,013 respectively.

This post has been edited by goodchong: Jan 27 2014, 01:52 PM

Good oh.. I see u mean launcing time grab di.. cheap cheap.. still sustainable.. even repayment.. just if vacant for quite sumtime even with new launcheas price my calculations will crystalize into real.. u going ti be making loss.. lower margin..

u see u dun hold it forever if not sure loss and no investors want to make a loss.. at certain time u will let go just waiting perfect storm or waterwish.. 750k or 650k amanya 2 room.. for d next 5 years.. really no go..and couple with yearly prop increase it easily shoot up to 700k. Right..

In d mean time.. u will bleed if vacant... those who intend to buy at this flipped price.. ur marginal losses will be greater.. there is no way u can rent out a 2 room studio for 3.5 k.... in maluri area.. even 2 k ( assuming dude buying at 450k ) also difficult..

dude I tink plan to loss the money he earn just to prove us wrong.. in future many more location are nearby train station.. amanya still need a walking distance thou.. passing by old shops jusco.. pizza hut ( sumtime can drop by buy MCD) ...

I be honour to do the slaughtering/ stripping of property and belongings.. can smell them.. agents surefirst to go..

Dude i dont need to prove u anything laa. I know what im doing. U can just do nothing. It is safer. And during launch time DDD say it is overprice and bubble too.

there won't be any fire sale la. property prices would come to even understanding eventually.

If property owner insist one property value at 500k.. then he will wait until he can sell 3 year.. 4 years. maybe 5 years later.. eventually it will catch up.

Current situation, prices are inflated. In Malaysia, less ppl do flipping, many are actually able to hold the units they bought. However, malaysia buying power isn't there. Take home pay of RM 6000 which is around RM 8000 basic is required for a RM 600,000 home loan repayment. Average household wont be able to pay RM3000 a month on house loan. Well that the average. Eventually due to interest and inflation, everyone would catch up to that level.

So it would be a cooling off period where ppl who actually wants to buy can buy. And those you finally willing to sell can sell without suffering much losses. it will slow drop for few years.

Our property started to go up 2008.

Normal (10%) Inflated rate. (26%)
2008 330000 2008 378000
2009 363000 2009 476280
2010 399300 2010 600112
2011 439230 2011 756142
2012 483153 2012 756142
2013 531468 2013
2014 584615 2014
2015 643076
2016 707384
2017 778122

2012 it stop going up.. 2013 stagnant.. now .. 600k is a the figure now to buy. 2015. a more realistic figure where by price might drop to normal growth. Now the gap between buyer and seller is still far.

See china.. they have millions of property empty and ppl still buying. The rich ones. but for what ? if ppl can't afford to buy means they can't. Demands is there, growing and desperate but affordability .. they can't.. so they can keep their empty houses.

Market is not entirely fluid, unfortunately. It will take some time before any correction would take place. The grapevine has it that the interest rate is going to be kicked upwards as another measure to rein in the prices, and hopefully this will close the widening gap between the primary and the secondary market.

This post has been edited by khaiyin: Jan 27 2014, 02:41 PM

Just curious..

Will the bubble burst be limited to high end condos or properties which is outskirts and has more supply than demand...

What abt Petaling Jaya properties? Such as the condos? Do you think the price might be affected?

China is different. The country is running on high debts that caused property boom and managed kept the economy going so far; while the rich are suppressing the poor legally.

On the other hand, we have yet to need IMF (which for how long we won't know since what we always heard is Malaysia debts rising bla bla bla) and learning from China the government is trying to do the same to us - and it is successful actually lol.

Oh ! I like this 1

Btw bro , "affordable house" means those house which under bank evaluation ?

Based on my guesstimation, I would think the following criteria would bust first:-
High end condo (Limited buyers that can afford), probably wont bust if those holding high end condo has enough cash buffer to hold without worry
Condo far away from central location which has high sale or rental price
Properties above 600-700k? (Not many people, individual or household can tahan high instalment if the economy is not doing well and if prices of things continues to go up. Daily survival, bread and butter is more important than owning a property)

For Petaling Jaya, most probably only limited to high end condos. Or more specifically newly launch high end properties within the last 2 years. Most of the landed prop in PJ does not go up that much compared to the newly launch property.

Just my thoughts. Might not come true. If come true, I think above would be the main one to bust first lar. For properties below 500k, I dont feel there is any problem lor. 500k might still be affordable to mid class although they have to eat maggi and kangkung goreng lar.


For me, affordable is based on your nett income. Also for me, my affordable is about 40% of my nett income lar. If my nett income is RM 10k p/m. Then my affordability would be:-

10000-1100(EPF)-1,262.50(TAX)-14.75(SOCSO)=7622.75

7622.75 x 40% = 3049.10 for instalment which comes to about 635,933.17 loan amount. Damn, if I earn 10k, I can only buy a value of RM 706,592 property.

I'm so poor compared to a lot of people buying 800k to > 1++ million property.

Why 40%? Cause I don't want give up my lifestyle of enjoying finer things in life. Very depressing to pay instalment every month for the next 35 years lar...

To the main topic. I doubt it will burst...probably go into double bubble mode. Given the rise in cost of living/inflation, prices of property in prime areas will continue to reach for the skies due to its location (look at HK, Japan & SG). Those not so centrally located would potentially follow suit with average increase. If one is to think prices will drop, you may want to continue dreaming. In the end, you may watch your dream of owning a home come to past.

This post has been edited by Brad11: Jan 27 2014, 04:11 PM

Price will not fall. Properties price never fall. Only thing is that all seller is greedy, their asking price is sky high right now cause thinking to make big bucks easy way.

If you buy a property for 500k and upon completion in 3 years, then you asking for 750k. Then no buyers, so have to reduce price to 700k, and also no buyer. Now if you reduce it to 650k, then there is buyer.

So if you buy at 500k and sell at 650k, then still gross profit 150k. Therefore property prices didnt drop. What drop is only the asking price, as the asking price right now is not realistic.

But for newly launch property last two years, I don't think is applicable lar. Developer is pricing their property higher than the highest asking price in the market. Perhaps this group of properties will be hardest hit.

Again, just my opinion.

With holding power, the ball is always in the seller's court. This apply to most affluent/prime/mature residential locations. It's a take it or leave it scenario as there are always people who are willing to pay compared to those who can't afford. My two cents.

This post has been edited by Brad11: Jan 27 2014, 04:36 PM

Agree 50%, if. 650K has taker, the next transacted done at 630K, followed by 600K deal done., then this is a significant drop, we call this situation a 10% correction for that particular period, at that particular sector, location and type of property. Asking price can be any figure, but kenot be taken into consideration of mkt movement.
Btw, I 100% agree that new launch price really crazy.

This post has been edited by UFO-ET: Jan 27 2014, 04:37 PM

+1, developer pushed their profit to maximum possible.

Without the bank's support, developer can't do anything, thus I always say banks are the main culprit to goreng the property.
Whenever bank's report claims on mkt overheated, who shd be blamed? Those bank's analyst shd slap their own face

This post has been edited by UFO-ET: Jan 27 2014, 04:41 PM

Should blame Real Property Agent also for spreading false information to distort real market senario thru forum..lol

Ya I always spread false information, but I think I manage to fool you only