People who are really rich usually take risks and they also diversify their investment so they're not afraid to invest for higher roi.

Only those midde class and upper middle class wannabe rich people so scared of risk and invest heavily in property because it's safe. These are people who have certain amount of money to invest but cannot risk losing the money. A lot are working professionals who are in their 40s onward. Not exactly rich people.

Big companies different game altogether, they can bribe govt to sell them cheap leasehold land and the develop the land and profit like 300% in like 5 years. Single unit investors will never get such high roi in such a short time from properties. Completely different playing field

also forgot to say, bro, HDB in Singapore is much bigger than many pigeon hole condos here.

granted there are different grades of HDB in Singapore, but i've been to Malaysia flats, sure they ain't big, 2 rooms and living room just enough for a tv, 1 set of sofas, but hey at least it doesn't feel cramp.

but when you walk into new "affordable condos", man, even though they are bigger, it feels so cramp. new condos are designed narrow but long, so you feel the cramp compare to square design.

Historically, residential property price rise at about inflation rate in the long term.

Number of units is limited by plot ratio. Comparing with other cities, kv still have plenty of land available for development. The misconception is by greedy developer and agents to push for higher profit i.e psf and keeping within loan amount.

According to a wealth report, only 4% of adults in the kangkong land have over us$100k net worth.

Only the herd, wannabe believe they could beat the system, the numbers, the odds, the rest of the herd members and the rich.

i don't know about your history but cost to keep a property goes up (lawyer fee/tax/maintenance/loan interst), it's more or less same for all owners, not just inflation, so owners will also set certain profit margin, so generally speaking property price doesn't just go up according to inflation, inflation is a really vague number which doesn't really reflect the real world.

and as new properties will only go up in price, due to inflation, higher wage, higher material cost, low currency value.

so if you compare an older property vs a new of equivalent, new will be much higher than old, but old will still be profitable compared to it's original price.

also developers not always make profit in their ventures, they sometimes need safety net to cover other risks, if no loss, then consider it bonus.

Real Estate always the biggest game in the world for the riches.

You can build as many cars as you want, but land is always limited. Earth is only that big.

Exactly my point, the whole assumption that rich people are holding the unoccupied properties are baseless. Many are just normal working adults who are usually in mid or senior management, earning 100k above per annum trying to make their riches through properties instead of the rich trying to get richer through properties.

Historically price could always check with property bought 10, 20, 30 and 40 years ago.

Most novice investors buy new launch.

Property is a big game for the rich if they are developers.

Wealth created without adding value i.e works to the aggregate economy is unsustainable.

Holding vacant property is negative cash flow. The rich won't waste their cash for nothing and could be better utilize in other investment. Hence, most vacant or unoccupied property are waiting to rent or sell.

This post has been edited by icemanfx: Jul 17 2017, 01:01 PM

You said it. Market has demand for it. If there is demand is going to be sustainable.

You do not see much 300 Sqft units in Malaysia. Those are the real pigeon holes. Singapore basic HDBs are so small. And they have to fit 3 generations in it. No kampung for the older folks to retire to. Maybe Johor if they somehow get past the perception (rightly or wrongly) of being robbed.

Klang Valley has a lot of land but not in location close to economic centres naturally. Plot ratios and density could be changed. Is all part of city planning. As we get more populated, increasing density or plot ratio is a good way to manage the housing stock and tackle ever inflating land prices.

Redevelopment e.g bbcc, KL Sentral, trx, bandar Malaysia, etc are always available. Hence, cities like New York, Tokyo, London, etc never run out of land for development even in prime location.

This post has been edited by icemanfx: Jul 17 2017, 01:07 PM

Yup. We have gone to the stage of redeveloping and repurposing older lands and buildings now. We are approaching the developed cities now in terms of our real estate market. Redeveloping is usually a really expensive exercise. So to average down the cost, increase density/plot ratio.

Another problem with Malaysia is our land law and the prevalence of strata units. Only with 100% agreement by all owners that a building could be redeveloped. Exceptions such as acquisition by government applies.

Redevelopment may be expensive but also mean older property is only worth the land it sit on.

Like you mentioned, law could change e.g need 75% agreement of all owners for sell of strata title units.

This post has been edited by icemanfx: Jul 17 2017, 01:18 PM

Yup. And it is usually priced on the land size only. Of course there are additional cost such as demolition, amalgamation of the titles, premium to change land use. All these contributes to the high cost. Again building upwards is the correct solution.

This post has been edited by Count Auction: Jul 17 2017, 01:28 PM

Then where is the price appreciation on older property? And all properties aged.

Do you guys think that affordable house is a part of the plan to make property bubble ? why ?

With developer selling at 4 years ago price, many flippers hoping for a quick profit are in for a fix.

If nominal price remain unchanged for 4 years mean the real price has dropped by over 20%.

This post has been edited by icemanfx: Jul 17 2017, 01:38 PM

We are not in the cyberjaya thread are we?

I am being asked if I would like to buy 2 properties in one of the serviced apartments there for the owners loan outstanding.. the property was bought more than 5 years ago, no more RPGT, and the owner still doesnt mind letting it go for nothing (he's getting nothing, after 5 years)

Wow! UUU shud BBB!

duh, super rich don't target developers, they buy valuable buildings, refurbish & rent & at the same time look for potential buyers. or they buy mansion, like those Hollywood stars.

even Naza going into real estate despite selling cars since day 1.

no need 100% la wei.