To me, a Property Bubble will not happen if KLCC Properties drop to RM500 psf or below

A Property Bubble will happen if:

Kota Damansara DSL drop to RM400K
Bandar Puteri Puchong drop to RM300K
Mutiara Damandara drop to say RM500K
Kajamg drop to RM300K

then you know the Bubble has finally burst

Those who bought many properties on leverage for investment / flipping will suffer.

Banks will record huge rights off due to FRS139 Req to mark to market

Mass Auctions will take place and those with Cash Reserves will sweep the Properties and the UUU cycle will start again.
That's just my view...

Another things i want to comment here. You think people rent 1.8k people will rent? If people got this money why they do not want to buy themselve? Are they stupid or what?

Very fair comment 

I am category 3 buyers. Returns was like 6-7% previously. Now good property 4% also difficult to find. Investors has reduced their expected return. Now 4% is even before tax. After tax, it could be just low 3.x%. Same as FDs.

Why people still want to buy properties when they can put their money in FD goyang kaki, don't need to attend to tenant's problem ? I think that is because investor feel that money is losing its value fast. Put in property also same as FD, but the property will appreciate in value. FD won't appreciate in value, but instead lose out to inflation.

So the mindset of investors has changed. The high price of property now to them is in fact fair value

even if earn same as FD, property capital can appreciate...
your money if you put 100k is forever 100k and only earn interest...

Good graph there my fren. 
To me as long as QE exist, the effective lending rate will be lower than BLR or LIBOR.
Bcoz QE is just printing of money, without any backing of real asset or value. It's diluting the value of the currency.
Whether it's QE @ 80bill a month or taper to 30billion a month is still supply of money to the economy.
Interest rate will back to its normal nature (effective > BLR or LIBOR) when QE is stop completely.

Good graph there my fren. 
To me as long as QE exist, the effective lending rate will be lower than BLR or LIBOR.
Bcoz QE is just printing of money, without any backing of real asset or value. It's diluting the value of the currency.
Whether it's QE @ 80bill a month or taper to 30billion a month is still supply of money to the economy.
Interest rate will back to its normal nature (effective > BLR or LIBOR) when QE is stop completely.

When you spend your $1 in other countries, you spend or you invest ? If you spend, like buying a china made product, the money is in china's pocket. You can't bring it back because you have exchange it with china's goods

If you invest, then you can bring it back. I think since QE tapering last year, only RM4b (If I'm not wrong) worth of money flow out of KLSE

i think for local market, the price is always at all time high. No? Seldom heard of people burnt their hand due to investment in property. Don't give me those lelong ad ok....everyday also can see regardless of market good or bad.

Friend, let's be objective. Not be a DDD just for the sake of DDD, ok ? 

Think objectively and openly

Last time buy house got 2 hurdle :

1. 15% deposit
2. Monthly installment

For youngster, #1 needs >5 years to accumulate. For #2 needs to work at least 5 years only qualify.
Now, situation has changed :

1. DIBS and Zero Entry - developer give. So youngster now qualify to buy properties
2. Monthly installment - now the joint together to buy - income double to qualify for bank loans
Now, how is that similar to sub-prime ?

We have been going over and over again on bank's giving out property loan indiscriminately or not. DDD thought any T,D an H can manipulate the documents and con the bank easily. Bank are so stupid they can easily fooled by 30% of these people. Banks are greedy people who only want to give out loan and they don't check the validity of 30% of customers' documents.

Whereas I think the integrity for malaysian banks are still in tact. Zeti is A+ banker. BNM is strict and clean organisation which is very fearful by the banks. My experience with many banks are that they do their jobs by the books. It is extremely hard to fool the banks

Take away the "30% subprime loan" which is a big assumption, your model of a perfect storm will fall apart

 

I actually didn't read the link. Just wanted to give encouragement to you so you don't go away 

Good to see you still hanging around. You are 1 of the better DDD who have something substantive to back up your points 

I read your link. And on top of this news, do you know that LKS's company did not manage to bid and win any new land in HK ? His HK property development companies will be low profile for the next few years

Yes, 1 of the interpretation is LKS view property market in China negatively. But for a company so substantial involved in China, if he wants to leave china, he has to sell his whole company instead of individual property. Cheung Kong alone has developed and still owned not less than 30 properties in 14 Chinese cities. If he wants to leave china, selling properties 1 by 1 is not a viable option at all

The other possibilities for his sale of properties in the recent 1-2 years is his intention to divide his estate between his 2 sons. He has announced he will let his elder son to own and manage the existing businesses. Whereas his younger son will get to buy any new business he is interested in. In other words, any business his younger son is interested to acquire, LKS will provide him with the cash. So, we saw a few big transactions to cash out his assets in the past 1-2 years. And your link could be just another of such transaction so he can be a good daddy to his younger son

If such news can be construed as lack of confidence in china property market, what about other big tycoon developers in HK and China ? They even have more substantial holdings in china property than LKS alone. Is everybody else stupid and fail to see what LKS saw ?

Only if many other property tycoons decide to do what LKS is doing, then yes, the end for china property is near.

These theory very deep...cannot understand.

Bro...your first para macam contradict with last para le...soli ya...i not familiar with china...never like china. Haha...
Btw...the story i read on why they sell is because of gov now actively catch the corrupt officer? No?

But now they come here to invest le...i thought you said interest high now....they don invest? The corruption story i read  is gov officer with many properties sell down so that they can run away to overseas with cash. Sekalinlks is one of these people...haha....Few days ago, an officer's house is like the type you see in old movie...四合院(old time china mansion)

"0%/24 month ezy home package" is not dissimilar to dibs, interest payment during construction is amortized and buyer/home owners will be paying a higher loan installment.

the trend is

500k (upon vp landed, 2 years)= 750k, now GST come 800K.. perfect example setia alam DSL.. and my prediction SEH 750k AT LEAST upon VP.. sure many yellow tags...

this means now is 50% 2 years.. yearly 25%

the trend is

500k (upon vp landed, 2 years)= 750k, now GST come 800K.. perfect example setia alam DSL.. and my prediction SEH 750k AT LEAST upon VP.. sure many yellow tags...

this means now is 50% 2 years.. yearly 25%