QUOTE(bearbearwong @ Nov 2 2014, 05:40 PM)
yaya, interest rates also going up soon..
Seminar raises more questions about the state of property sector“The current global economic conditions are important to the Malaysian economy, which, like other countries, has been impacted by ‘
cheap money’ and low cost of financing,” he says.
He says just as growth is uneven in different countries, so are the property markets in the developed and developing countries. Prices are rising in UK and Australia, stable in Germany, easing off in the US and falling at a slower pace in Spain and Greece.
In China, prices are falling while Singapore property prices are in a state of flux, rising and falling.The question today is: How long does it take for property markets (in the world) to recover)?
On the home front, Yeah says, the local property prices
are not sustainable. Prices are rising faster than income.
We are
over-leveraged and any increase in debt should be in relation with our income level,” he says. Financial institutions’ exposure to the property and construction industry in 2013 were massive.
Loans-to-deposit ratio hovered at 80% at the end of 2013, with
almost 45% going into propety sector, says Yeah. Banks are flush with cash, but our household debt is no longer sustainable (for us to borrow anymore). Our property loans suggest that we have reached a stage where we need to rebalance credit growth, says Yeah. flippers manyak
Property prices are also no longer sustainable. The questions to ask are: How fast are property prices cooling? How sustainable are price increases?
“The challenges for next year are how will we adjust to the new price environment, with the imposition of GST and the continuing subsidy rationalisation?”
“People want to buy but they are unable to get a loan,” says Fateh Iskandar.
About 80% of households earn less than RM6,900 monthly, and of this, 40% earn less than RM2,000, which explains why many are forced to walk way from a purchase, he says.
Assuming a RM500,000 loan for 30 years, with a 10% downpayment and 90% financing (base lending rate of 6.85% less 2.40%), the monthly repayment is about RM2,519, says Fateh Iskandar.
He says the loan rejection rate is 35%, 30% and 26% in Selangor, Kuala Lumpur and Penang the last two years compared to 20%, 20% and 13% respectively.source:
http://www.thestar.com.my/Business/Busines...ctor/?style=bizI told you many time mah ! house has become luxury goods now, like if you sell BMW, Maserati, Benz, LV bags, Panerai watch, why fo you care if 95% people in Malaysia can't afford ? why you care average income people forever cannot buy ? as them fly kite lah ! is not for them.
As I told you 95% properties buyer in KV, Png, JB is Chinese, so just concentrate on Chinese, ignore other race, is non of their business, they are Govt project buyer which you are not qualified, now our property separate in to 2 market, the Chinese & Non Chinese market, Private project don't really bother about non Chinese buyer as they just 5% or less.
80% household earn less than 6.9K good, as property is top 20% market, so how much ia Chinese household income. ... ? ? I am sure way above 6.9K infact 2012 survey show 20% Chinese household earn above 15.5K
So what cannot afford ? country like Hong Kong even top management staff cannot afford to buy own property, but do you see their market collapsed, didn't I told you now you also need to compete with Rich Middle eastern ?
Keep waiting & price would just keep going up, no way it will fall, just like our car is double thw price if Hong Kong, Taiwan, Triple of US, you see Car price bubble burst or not ? BMW, Benz still sell like hot cakr right ?
People will get used to high house price lah, just like people get used to high car price.
Nov 1 2014, 10:10 PM
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