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

Happy new year

never a big fan of property guru on FB. gut feelings tells me that they're all part of a big circle jerk responsible keeping the property prices as they are now.

glove? if they were smart they got in bitcoin, today take profit. Still better than Gloves.

Oversupply have cause the rental market to not only stagnant but start to go downward. Look like market correction to me. What u think

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)

May I know which area?

Ya, the gurus now in lelong market.... The units come out from there also starts to rent cheap... Holding powers come to test

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'.

Net rental may be even negative.

The 10% down concept still manage to bring in unassuming investors willing to play at 3-4% promises

Will be negative for very long time

True, because many bought at heavily inflated price. But now demand and rental go down and broaden gap of yield down to negative zones. Only owners knows this.

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.

so now is best time to buy property for own stay? a young lad here which knows nothing about the property market. 😅

Talk to a few uncles.... Biting tongues now but i guess many still holding on

This post has been edited by ahkit123: Jan 3 2021, 10:09 PM

Wow, drop 100k

Yes, 2021 will be corrected pricing

If compare to partial loan maybe opportunity losses not big but assuming those maximizing financing on asset purchased vs yield this group loss the most.

Probably the best yield is to keep cash and invest else for higher net growth.

paper loss is not realized loss

Ya, as said before, for own stay is ok. If want to buy for investment, better buy unit trust