Banks only take actions after 3 months of unpaid loan. So 2021Q1 only surge. It also takes time for the auction properties to drop about 10% each round. So post 2021Q1 (starting 2021Q2) only best buy

Vacancy tax is coming, finally we get to slowly deflate the bubble

Too many supplies (M city, the elements, reizz, astoria), super trash lift that needs very long waiting time.

A good way to be sent to Holland

Here in lowyat.

MOST IMPORTANTLY, avoid all the FB property gurus. They only have interest for themselves
https://forum.lowyat.net/topic/4759778/all

https://tradingeconomics.com/malaysia/housing-index

Nominal housing index is now -ve for the 1st time in 20 years. For those who failed to realize this earlier. I wish yall the best.

recovery and market boom theme next year no? Yes, but not for property.
Too many supplies

Happy new year

Agreed, because oversupply has turned flippers into landlords, which then increases the rental competition due to increase in rental supply.

When rental rate drops, property prices will follow. Rental price indirectly is the leading indicator of the property prices, because when investors cannot flip, the only thing that dictates whether properties are good buys is the rental. With such a low rental yield, no savvy investors would buy at this price unless if one could find properties that can give them 5-6% net rental yield after taking into account all the furnishing, wear and tear, and miscellaneous fees (stamp duty, lawyer, maintenance fee, MOT, agent fees, quit rent tax, rental income tax etc)

At current yield, there are only 2 type of buyers
- Amateurs (possibly tricked by properrty 'gurus')
- Own stay buyers (possibly starting a family or a second holiday home)

Exactly, all the previous buyers jialat, cause these new auction players spoil the rental market.

Rental price war, all previous property investors who are on loan are now burning cash even if they manage to rent.

When there are stock counters out there are offering STABLE 5-6% dividend yield, there's really no need to catch this falling knife, especially when the rental yields are still low. I am seeing quite a lot of the 'cheaper' auction units transacted at gross rental yield are 4-5% (not inclusive the miscellaneous fees), but to me it is still illogical because the net rental yield would only be 3-4%, which is still far far away from what the stable high dividend counters can offer. Cant imagine those those that are transacted more 'expensively'.

My father unit in ara damansara depreciated 6 digits , luckily his loan amount was not big, yield wise still +ve, but it is a joke investment.

IMO, not yet. Can still wait longer, according to my rough calculations, compressed cash out buyers can still hold until 2022 Q4 if they dont spend the cash backs on luxuries, so expecting this auction sales spike to remain until 2023 Q1. Prolly auction units will surge 1Q or 2Qs after the targeted moratorium. I am expecting the market to at least correct until the price-to-rent ratio is sensible for entry.

*Loan compression ended in June 2019.

. They did benefit from the property bull run la. Just the last 2 units that they bought were fck ups. Greed knows no bound; so in the end, big win becomes insignificant win.

Yes with LRT connected to the apartment, still fcked up.

My dad wasnt wise enough. Too gullible back then and bought into a GRR unit..

It is deflating. Price has been dropping since 2013. Expecting it to continue to deflate for few years until property developers stop developing. There are really too many units and too little demand

Define hot demand.

Normal demand and supply - plenty, but maybe your area is really hot demand until you cant see any

Maybe you are right with landed. Because the overhand issues are all high rises. High rises prices have been deflating since 2013.

Not sure about landed, because I do not keep track of landed prices

More high end units are coming into auctions. More to come next few months

Rooting for you to initiate

Definitely will drop further until net rental yield can cover installment (price point at which renters will think that why would they want to pay the rent when they themselves can own it with loan, price point at which property investment starts becoming sensible without capital appreciation). Unless the rental rate starts going up, which is extremely unlikely unless developers stop building, so that the existing supply pressure can be absorbed

https://www.thestar.com.my/business/busines...g-term-overhang

57k units overhang, 181k total unsold units.

Chances are the rent transacted today will be a lot lower than it was during the pre-pandemic period while the sheer number of newly completed and handover units in the market has shifted the bargaining power in the property market to renters.

As capital values are tied towards property income generated, capital values too have been on a downtrend.

When the interest rate is raised, a lot of properties will turn into negative gearing investments. Those who are breaking even now might start throwing after realizing that their investment decisions were unwise.

Whoever looking to buy, better start taking this into account and calculate based on the interest rate of 2.5% instead of 1.75%

I agree, I dont think it will burst, cause there will always be someone willing to buy even it is negatively geared.

But deflating the bubble is always possible with supply >> demand as most investors are smart and wont follow gurus BBB blindly. There are so many better investment vehicles out there that can make them money instead of burning their cash.