most soho are too small, too expensive.. they only sell location

Statistically, overhang for a particular project could be between 10% to 50%.

From demand and supply perspective, for immediate consumption, current price needs to drop by 30% to 50%. Alternatively, if price remain stagnant, it will take 5 to 10 years to be consumed, for inflation to mask the real price.

This post has been edited by icemanfx: Jun 28 2018, 02:13 PM

is this situation rather similar to 2008 crisis? property price gets bloated, each time exchange hands value increases by tens/hundred thousands. bank lending more and more whilst citizens debt ratio increases. combined with current global uncertainties chances of ppl defaulting loans growing higher and lead to eventual banks bleeding cash.

i mean waste of land. should build proper sized units

This post has been edited by kurtkob78: Jun 28 2018, 04:11 PM

Using current population growth to forecast housing demand is deceptive at best. babies born in last few years won't be purchasing or forming household for next 20 years. new household i.e. those born 20 to 35 years ago; population growth (in absolute number) was much smaller.

re agents and those with vested interest couldn't explain why there is oversupply in a supposedly shortage situation.

This post has been edited by icemanfx: Jun 28 2018, 04:41 PM

2008 is due to bad debt n greedy bankers. It has nothing to do with oversupply. Don't misunderstand and associate anything about property to 2008

Given multiple number of property bought by flippers in 2011 to 2014, many of these likely ended up in foreclosure. How bad is remain to be seen.

Malaysia property bank loan is quite tight after 1998. It's not as bad as 2008 in the US where they basically throw home loan to unqualified people for the sake of boosting up numbers. Then sell those bad debt as triple A investment to investors. When the loan not able to be service by the borrower, the investments goes bad twice worst

US subprime crisis was exorbitance by mortgage backed securities.

many of borrowers who were considered subprime before 2011 i.e. low entry, dibs, etc were permitted in this country from 2011 to 2014. many took advantage and bought multiple units to flip. how many of these subprime among residential property borrowers is remain to be seen, suspect the number is substantial. the default many not cause catastrophic failure of local bank but will discourage bank lending to residential sector i.e further suppress property market.

Do the banks have to take the brunt of unsold lelong units...? I am talking about the ones that we have been posting here, ones that have made into the auction houses for the 4th/5th time before they are sold, usually way below market value... and if they were sold below the loan outstanding amount, who is responsible to repay the banks, or do the banks have to write these debts off? bad debts? What about the borrower? As they failed to return a substantial amount (was it above RM50k?) to the bank, would they be sued for bankruptcy? This is a little beyond me, as I am usually only at the forefront of the transaction.

This post has been edited by wild_card_my: Jun 29 2018, 11:08 AM

Banks will attempt to recover shortfall from borrowers and will write off if mean of recovery is exhausted e.g borrower is declared bankrupt.

These losses will be written off by the bank. It’ll eat into their profits.

Wat to expect with another round of opr hike 🙊🙊🙊

What are your basis on saying that? Want to hear your thoughts

US Fed is raising their interest rate.sooner or later we have to follow suit otherwise 1USD = RM5 + huge outflow of government bonds/FDI

Coincidentally I just passed by n wish to hear fr buddies here 😬😬😬

After fed normalized interest rate, expect 150 to 200 basis points higher than currently. Unless dt cause a premature economic recession in the u.s. traditionally, bnm track fed rate else myr/usd and mgs will take a hit.

The biggest threat to property market in next few years is not bank interest rate hike but liquidity tightening.

Local property market is likely will be compounded by npl, further reduce bank lending to property sector.

So.. things are not looking good? Oversupply of units and credit tightening means my business will be thoroughly affected. Hurmm...