PETALING JAYA: The property market will take a terrible hit next year, with developers and house owners facing one of the toughest times to find buyers, says a real estate veteran.

Ernest Cheong said it could lead to a market crash as consumers do not have the financial capacity to own homes with some failing to even pay their monthly instalments.

“The panic (within developers and house owners) might start after Chinese New Year in February or later if the government decides to pump in money to strengthen the market,” he told FMT.

He was responding to a reply given in the Dewan Rakyat by Deputy Finance Minister Lee Chee Leong who said unsold completed residential units rose by 40% to 20,807 units in the first half of 2017 compared with the same period last year.

Lee had said the units were worth RM12.26 billion with condominiums and apartments costing over RM500,000 dominating the unsold homes in Malaysia.

However, Cheong pointed out that the RM12.26 billion is only from the primary market, which includes launches by developers. It does not include the secondary market, which is house owners seeking to sell their homes.

“Previously, house buyers needed to pay 10% as deposit. Today, the situation is different. Developers are in a desperate situation.

“That is why they are allowing buyers to pay 1% of the property price and pay the remainder upon completion,” he said.

Cheong said this “generous payment mode” exists because developers are finding it hard to sell off their new properties.

He said they are in danger of losing their bridging finance from banks if they fail to sell at least 40% of the total units. The bridging finance is used by developers to support their construction.

“This is where the danger starts. I predict if this continues, markets will crash within 24 to 30 months because consumers do not have the financial capacity to buy properties any more.

“Furthermore, developers who started building two years ago are expected to flood the market further with their units.”

He estimated the value of homes waiting to be sold in the secondary market to be around RM4 billion and expected more foreclosures by banks.

“So about RM16 billion of properties are waiting for buyers. But there is no demand. The reason is that people don’t have the money,” he said.

When the property crash comes early next year, Cheong expects the prices of houses to fall from RM500,000 to RM300,000.

He advised Malaysian consumers not to commit to buying a home unless they could save up to RM1,000 a month for at least a year.

“This is to cover for rainy days if they lose their jobs.”

Cheong said findings by the Employees Provident Fund show that 89% of Malaysians earn RM5,000 and below a month.

He said those who bought their homes five years ago are facing hardship as prices of homes were at their peak then.

On average, for every RM100,000 housing loan, a buyer pays the bank RM500 instalment a month, based on a 30-year payment period.

Cheong advised Malaysians to spend cautiously and invest wisely instead of buying any property at the moment.

“There should not be any urgency to buy a property at the moment. Try renting first.”

beli 9 hartanah dan hari ini menderita nak beli susu + pampers anak pun tak mampu

No point reading FMT. Differentiate Opinion vs Fact. Base on what they say 500k drop to 300k?

Yes, Developer has been launching a lot more smaller units, high density, 400-500k units. But that doesn’t mean property price dropped.

Yes, it’s much easier to lose money than make in the prop market now. Making money pre 2011/12 era doesn’t make one a good investor. 95% of the property in the market are not investment grade property. Chances of Buying into the wrong one and lose is very common. Buying wrong product at wrong price —> lose money
Buying wrong product at right price —> 50:50 u make or lose
Buying right product at wrong price —> lose money
Buying right product at right price —> make money

FMT always report of property glut. This attracts readership.



This post has been edited by propertybuddy: Nov 14 2017, 07:00 PM

This is why Gameplan is so important. Understanding the risk of doing so, what to buy, How to buy, when to buy, Buying without proper gameplan can be deadly. If he hv the right plan, he probably only need 4 good ones instead of 9 bad ones. 4 would be sufficient to generate him a healthy 20k/mth passive income for retirement. Buying 9 bad one doesn’t make him better investor than someone who plan properly and buy 4 that suits his plan

This post has been edited by propertybuddy: Nov 14 2017, 06:51 PM

People see things differently, that is why someone sell the bitcoins at $1, $100, $1000 while someone buying them at those price.

My take is MY economy is recovering from the oil price and therefore will spill over to rest of industry. On paper, barring any major crisis, MY economy will do well and housing will be ok.

But there are some fundamental issues on oversupply on poor location and certain segment. Just be very cautious and hope everyone make money.

Very informative.

Another similar updated index by BNM up to Q1 2017 at http://www.housingwatch.my/02_market_01_mhpi.html -> Q2/Q3 will be updated soon.

I liked the statement "95% of the property in the market are not investment grade property". Does it mean only 5% of property investors are making $$$?

In the scale of 10 how bad would it be???

Some property guru i know 5 6 years ago.. now dun want to be known as property guru already..
Haha

now it's bad with 40% unsold completed units ...almost 20k units....

for good properties, when the unlikely guy defaults or sells cheap, surely got investor waiting to catch in today's market. for bad props good luck in the auctions. 40% unsold by dev is unsurprising which we see in the desperate race to larger and larger discounts. yet if the developers do not go bust and investors are still ready to catch the falling apples the market should find equilibrium instead of free falling like this article suggests. as said above FMT is always 3rd rate sensational news, take with pinch of salt.

its the data...cant lie...times are bad...pockets are tight...sentiments are low...

Everyone is waiting for crash. Price is finally dropping, next year is the best time to buy. Why are u guys worried? Your wish is coming true, rejoice!

still got many upcoming interesting launches ...

Game Over.

NYsayers like tus guy and me were laughed at and ridiculed when we sounded warning..now where r these smart ah beng hiding

Then the people who already locked in their money for a unit this year gg liao loh?

Yea those not ready, pls rent first, don't buy until you r ready to buy. Renting can be cheaper than buying a house. Taking grabcar is cheaper than buying a car, though car depreciate and house might appreciate.

I hv one question, y developer unit can't sell will cause market crash? Anyone can enlighten me?

This Ernest Cheong has always been a doomsday predictor. If you listen to him from 2008, then you are still waiting to buy.... people already earn double to triple money...now paper gain give back a bit lah... lol... but those late comers from 2013 ...sorry lah... simply buy from developers sky high price..adui

U see whether he ask u to buy or not in the next 10 years...

Scary tale ??

http://happytifywin.com/docL3lZUE04WW0wWkE9/2658

Star Business – 18th July 2009

Stories by SHANNEN WONG

IT can be extremely frustrating to be at the mercy of property developers who have abandoned their property projects, not least because most of them do not offer any explanation to their house buyers.

When asked, this is the usual excuse provided by developers: “We are temporarily having some minor problems but will revive the project as soon as possible.”

“Soon” unfortunately, more often than not, turns to years of waiting for the victims.

Cashflow problems, demand shortage and budget over run, owing to poor planning by the developer are mainly the causes that lead to projects being abandoned.

But while some abandoned projects are caused by unanticipated market conditions and economic uncertainty, including rise in building materials and labour costs, there are many cases where developers have only themselves to blame.

Industry observers say there are cases where developers have channelled purchasers’ deposit money for personal use while some others deliberately hold back their projects for better resale prices.

There are also instances where developers inflate progress payment claims to draw more money from purchasers and the banks. Observers say this can be done with the help of architects, who are responsible for issuing certificates on the construction progress of the purchased houses, which are then used for progress payment claims.

“As progress payments are disbursed to developers through these certificates, end finance banks can be misled into making excessive payments,” Ernest Cheong PTL Chartered Surveyors property consultant Dr Ernest Cheong tells StarBizWeek.

“Some of these developers end up not using these inflated payments to develop the housing projects,” he says, adding that perhaps they would channel it for some personal investments.

But when these investments sour, the consequences are dire; the developer will not be able to pay the contractors and suppliers and the brakes are then slammed on the construction activities.

“This is what contributes to the problem of rising abandoned housing projects,” he says. But in most cases, the culprit is poor planning and research. Developers that rush into a development without comprehensive market study will most likely find themselves stuck in a project due to poor cashflow.

“They end up facing poor sales due to the mismatch of supply and demand patterns in the project location,” says PPC International Sdn Bhd executive director Thiruselvam Arumugam.

Chan Ai Cheng, the general manager of S.K. Brothers Realty (M) Sdn Bhd, says developers shouldn’t be over ambitious and ought to be realistic.




I extract the article from 2009. This is a negative guy all the while......

张仰荣预测大马或重演金融危机 短期内勿投资房产
全国
2012-10-12 08:31 南洋商報


张仰荣：屋价有如金价及股价，会涨也会跌。

何振顺： 研究基础建设趋势可发现许多商机。

全国房产投资讲座吸引许多有兴趣者参与。


[url=][/url]
1 of 3
[url=][/url]


（八打灵再也11日讯）正当人们纷纷看好房产领域前景，认为目前是投资房产的最佳时机，赞美主公司特许调查及调解人张仰荣博士提出警告，指大马最近一两年将重演1997年亚洲金融危机，建议人们在3至5年内最好不要投资房产。
他预测，我国将在2012年至2013年重演1997年亚洲金融危机，这次灾情将比1997年严重。
“1997年，欧美经济并不受影响，我们仍然可以出口，但现在欧美经济也放缓，因此这次将比当年更严重。”
他说，目前房地产领域就如“仅剩一格油的火箭”，需求已逐渐放缓。
年轻人没能力负担
“现在的年轻人不会想买屋，因为根本没有能力负担。
“即使有能力购买屋子，也没法每个月定期偿还房贷，反之，选择还一个月，停两个月，因为若连续3个月没还，将被列入不良贷款（NPL），唯有用这种方式偿还房贷。”
张仰荣今天在全国房产投资峰会上说，除非有多余的钱，否则绝对不应向银行贷款投资房产。
“购买房产可分为3项目的；自己住、投资、投机。若是自己住，又有能力负担便可购买，若为了投资或投机，我奉劝你不要购买。”
他也劝发展商在未来12个月重新规划业务，把重心放在租借，勿再进行新项目。
可考虑加叻大道邻近房产
张仰荣指出，若有余钱想投资房产，可以考虑加叻大道附近地区，文冬、劳勿都是不错的选择。
“不要再妄想购买城市房产，上述地点在未来都有发展潜能。”
他说，无可否认，房产仍然是个前景看俏的领域，但不能期望一夜致富。
5年内房产将跌价
“就长期而言，房产仍然是一项好投资，无论如何，未来3至5年房产价格将下跌。”张仰荣也不认为赛城及依斯干达特区是值得投资的地点。
“一个值得投资的地点必须拥有就业机会，赛城的人口并不足够支撑屋价。
“依斯干达特区主要买家是新加坡人，那里是他们的‘周末家’，星期日很多房子都空置。”
银行提高房贷顶限 致房屋需求量激增
屋价高涨，银行、父母、发展商、房产代理及卖家都必须负责！
张仰荣说，银行不断提高房贷顶限，从1960年代的60%提高至目前的90%。
“贷款额越高，偿还期限也更长，若发生意外，下一代必须背负这笔贷款。”
他说，银行调高贷款额也导致房屋需求量激增，当供不应求时，发展商就会开提高屋价。
他说，发展商为了赚取更高利润，将工程分阶段推出，而每个阶段的价格也跟着调涨。
“事实上，每个阶段推出的工程成本都相同，发展商只为了赚取更高的利润。”
此外，他说一些代理向卖家保证可以以更高价格出售房产，而贪心的卖家往往也倾向更高的回筹，这些都是造成屋价攀升的原因。
他说，就目前的屋价而言，即使父母有能力为孩子支付屋子头期，孩子也未必有能力供。
“家长们必须用脑思考，而非用心思考，如果你的孩子没有能力偿还每个月的房贷，请不要帮他们支付头期。”
80%人民没能力购屋
屋价居高不下，目前大马80%人民没能力购买屋子。
张仰荣赞美主公司特许调查及调解人张仰荣博士说，这是大马房产领域目前面对的困境。

Go to google search for this guy, negative guy that all.

I think he burnt his hands in property and earned his bro science.

Property guru such as Faizul uses napic statistics a lot. It still shows growth which surprises me. Do u observe that is it the case?

500k to 300k? dream on la he thinks hes fortune teller? is he filthy rich then? if hes not ill take this with plenty of salt. economics is not science even experts do not know what they are talkinf about.

my meaning is 95% of the available projects. Probably even lesser. Of 100 proejct only 5 investment grade.

From your POV, it depends how u intepret it.
1. If all investor buy that 5%, chances of making money is higher.
2. If all investor, buy the rest of it, lower likeliness of making money
3. If some bought the 5%, some bought the rest, then, those who bought the investment grade ones hv a higher likelihood of making money / making more money lo

Bagus Propertybuddy

Even got 5% investable properties....how many of 5% can we afford to buy to invest?

Statistic will remain statistic. Same like accounting, you can do a lot of magic.

Do you believe inflation is actually 3-4%? What about the chiefs still say that it is a perception that MY crime rate is high and it is safe to walk on the street at night?

Of course, if the data comes from a trust-able source.

This post has been edited by Sand Dust: Nov 14 2017, 11:31 PM

Ya lo.

Amint la. Kochi la. Malugibbs la. Showtime la etc etc. Saying all tume is good time to buy n property price uuu.

Now all missing in action.

Most likely some jobless now.

Just simply quote one statement to verify....

Wonder how does this Dr arrive to say property price from 500k to 300k?
Is there is statistical prediction model to derive until 300k? If the formula is a secret, then can share what the recipes are (jpph data? etc) and a graph to show a down trend pattern to 300k.... ?

This is just one of my many questions...

parking

government needs to do something to improve situation

Sin Ka lan guy ...

Yes, by introducing more rumahwip, rumah selangorku, pr1ma, ppa1m, etc.

Wonder where are those migrants, new birth, school leavers, divorcees, etc that are supposed to take up all these unsold units?

Keeping vacant unit be it developer or flipper incur cost e.g. bank interest rate, opportunity cost, service change, cukai pintu, etc. those who have cash flow to sustain may try to add extra cost to asking price. those who doesn't, pressure could be unbearable.

This post has been edited by icemanfx: Nov 15 2017, 01:38 AM

In 2013 he said we are "heading to a property bubble":



3 years later in 2016, he said:


http://property360online.com/scary-truth-affordability/

So if the market was "HEADING" in 2013....

and the market has "BURST" in 2016...

how come real estate prices only going to drop drastically 2 years later in 2018?

Shouldn't the market have gone thru a drastic price correction in 2016 - 2017?

By the way, Bangsar Terrace houses are now 1.6m-2m depending on location and condition. So anyone who sold their bangsar house in 2013 would have missed out on about 25% capital appreciation over the past 5 years.

Another view.

PETALING JAYA: Real estate players say its unlikely that the property market will take a “terrible hit” in 2018 as predicted by property expert Ernest Cheong.

They said that the “facts and figures” pointed to a less negative outlook.

Yesterday, Cheong, a real estate veteran, said 2018 looked to be a tough year as developers and homeowners would find it hard to find buyers, and this could lead to a crash as consumers did not have the financial power to own homes.

Cheong had said this in the wake of Deputy Finance Minister Lee Chee Leong’s revelation that unsold completed residential units rose by 40% to 20,807 units in the first half of 2017 compared with the same period last year.

Henry Butcher Malaysia chief operating officer Tang Chee Meng told FMT that although the market was sluggish and that the stock of unsold houses could possibly increase in 2018, some projects priced under RM500,000, as well as those above that price range in popular locations, were still enjoying good take-up rates.

“So for anyone to say that the market will crash next year is a bit too pessimistic,” said Tang, adding it was important to note that the numbers didn’t paint such a bleak scenario.

For one, he said Malaysia’s economy was projected to grow between 5.0% and 5.5% next year. He also said there had not been any major retrenchment exercises, compared with a couple of years ago, when thousands in the aviation, oil and gas and finance industries lost their jobs.

Tang also pointed out that there had not been a significant rise in nonperforming loans (NPLs) or a substantial rise in foreclosed properties put up for auction.

“NPLs will go up only if borrowers are facing financial difficulties in servicing their loans and this will only happen if their businesses go bust or if they lose their jobs.”

But based on the latest economic data available, Tang said the employment situation, as well as the outlook for the business sector, did not appear to be so negative. This, he said, should provide overall confidence to investors and should support a stable property market.

He added that a number of developers had refocused their attention on the affordable homes segment, which should continue to enjoy stable growth in 2018, and that this would help developers overcome the sluggish market.

Tang also said some investors could also be holding back their purchases pending the outcome of the next general election (GE14).

Prices unlikely to drop

Meanwhile, the Penang Real Estate and Housing Developers’ Association’s immediate chairman, Jerry Chan, said it was unlikely that developers would drop their prices unless they were in financial trouble.

“But, most developers have been around for some time, had a good run and would’ve anticipated the current market slowdown. So I don’t think they have their backs against the wall.”

Chan told FMT the reality was that developers couldn’t afford to bring prices down because their margins were low, and would be more likely to change their products to meet the market’s requirements rather than just drop prices.

“You will see developers maybe making smaller units or putting less finishings. We can only lower prices if the authorities lower compliance costs such as levies, taxes and affordable housing requirements.”

In the past, some property experts had pointed out that forcing private developers to build affordable housing units, which were sold below market rate, would only force them to increase the prices of their other projects to cover the losses.

Chan said that the demand for housing would continue to persist and that consumers would always find ways to buy a home, whether through finding additional income sources or lowering their expectations of a home.

“I don’t see prices dropping more than they already have. When the market was at its peak, some developers set ridiculous prices and when the market slowed down, they dropped their prices a bit.

“But does this really mean that they dropped their real prices or merely slashed their inflated prices?”

He also dismissed the likelihood of a crash in 2018, citing strong exports, returning investor confidence, and the lack of mass retrenchments.

http://www.freemalaysiatoday.com/category/...h.v3VbVaSw.gbpl

I smell these smart ah beng hiding in the wharf

🤕

where everyone bought bcuz of the hype of the mall and other skl factors... now bcum negro nest.... hiding behind undetectable...

looking at the oil price and exchange rate.... it seems now towards next year will be a recovering period for malaysia economy itself barring unforeseen circumstances.... oversupply is true.... but it doesnt make the bubble burst.... buyers just need more confident from the recovering economy condition to buy a property only...

A statement friom a relative unknown guru can spark so much debate....

Proven that buying property is based in rumour, but sell on fact.

the only way to overwin this

allows expat to buy with no condition string attached but the loser will still be us and the only winner will be developer...

Sound like shooting someone in heaven.....

well... i like to shoot some joker who talked like he is guru who can predict everything... padahal... kena burnt the worst.... same applies to those konon nya property gurus as well...

Busy reporting ppl who mentioned anything about the wharf

😂😂😂

If there is a crash, bank loans will even be more difficult to obtain not to mention other factors like job insecurities when market crashes. Unless you have a stash of cash forget about waiting for the crash. It is the property ecosystem, one factors affects the other, domino effect, nothing happens in singularity, there will always be side effects.

Just wonder, only 3.6k house transacted in primary market for house price between 0.5 - 1 million

this probably less than the number of unit Eco has launched in 1h2017, how are the developer going to clear the overhang unit......

This post has been edited by Nikmon: Nov 15 2017, 11:15 AM


Attached thumbnail(s)

Yeah, so that is good chance to buy .. all given good package

Can advise the URL accessing this graph, article or data? Thx

Believe no one could deny there is over supply of property in kv and over supply will get worst in the next few years. until over supply is consumed, it is unrealistic to hope price to rise.

This post has been edited by icemanfx: Nov 15 2017, 11:37 AM

The statistics only show the increase of unsold unit, but not the absolute number of sold unit. There are more new launch this year, compare to last year. Where is percentage of unsold/total launch?

Developers need to go into default first, before it affect home-owner.

When developer fail to deliver, home-owner will end up with an incomplete house that cannot move-in, cannot sell, cannot rent, with loan to serve, interest to pay.

agree, every year also say next year will drop, will boom... but every new year also more project coming up, now more & more high dense & "easy-to-own" house, next will have "free-to-own" house...

Property price dropped in sg a few years ago didn't adversely effect the aggregate economy. only those stretched flippers will be in financial trouble. life of the rest of working population remain as normal.

Property is illiquid, price takes years to bottom.

vacant property incur cost e.g. bank interest, service charges, assessment, etc. property price stagnant mean cost increased or incurring loss.

most bought property with bank loan, incurring loss may be a small matter, ability to make loan repayment/sustain negative cash flow could be a burden to many.

This post has been edited by icemanfx: Nov 15 2017, 11:51 AM

Actually Ernest's prediction for crash is around 2020, below is from the article, still got time for BBB

“This is where the danger starts. I predict if this continues, markets will crash within 24 to 30 months because consumers do not have the financial capacity to buy properties any more.

This post has been edited by A.B.D.: Nov 15 2017, 12:09 PM

this is a good sign if many property are not sold...consumer can give pressure to the developers and developers can give pressure to gov...

http://www.freemalaysiatoday.com/category/...-other-experts/

parkinggg

Malaysia should have few house market indicators for transparent economies, such as,

Monthly new home sales
Monthly Pending home sales
Monthy homeownership rate
Monthly Existing home sales
Monthly Building permit

The government already have all these DATA on hand, they can compile it anytime and make it public. This would guide for better understanding of Malaysia property direction, either for locals and foreigners.

This post has been edited by Clement1001: Nov 15 2017, 12:42 PM

Most people buy on sentiment/peers pressure/herd behaviour/blinded by greed, numbers is meaningless to them.

This post has been edited by icemanfx: Nov 15 2017, 12:55 PM

I think our economy is recovering instead of going downhill. Oil price is going up and retail spending is getting better. China is pumping more money here. Many mega infra projects such as hsr and rts will start pretty soon.

I guess just guessing the impact of rumahwip or prima is taking effect in this segment . Most of the rumahwip or prima are selling well and the supply is enormous. Those who think of buying condo to flip or rent out will suffer .

Play contrarian mindset mah. Market down lelong buy cheap2, hold for few yrs market up cycle then disposed/keep for yields.

But i believe affluent market like ttdi bangsar kenny tunku d.heights mk still holding well.

Current oil price is unlikely to rise further. most china funded projects flow back to china, local benefit little. mrt2 construction add little cash to the general public.

This is from BBB and UUU camp

sure boh?

this one...opportunist

padan muka tamak people.

Yup and this type of discussion, argue until cows come home also no end.

Repeat enough BBB, one day will come true.

Repeat enough DDD, one day will come true.

But hor, if he manages to hold, in 7-10 years down the road, he will be laughing to the bank?

Time will tell.

If he could afford to hold, his kids milk powder won't be an issue. IF

The trick is to buy and sell before the herd.

This post has been edited by icemanfx: Nov 15 2017, 02:58 PM

maybe true. but at the expense of him and his child's health and well being. He got freaking 12 prop, let go 3-4 i think should be enough to support his family and hold the others and still be able to laugh to the bank later

Provided if he can let goes 3-4 at profit and still have $ left after paying banks.

How many of these over stretched investors are around?


This post has been edited by icemanfx: Nov 15 2017, 02:50 PM

You will be save as long as you can hold your investment but sorry to those who can't hold to the investment as market become tougher and it is just reality as situation far from getting better as you can notice company are getting VSS and mass cost cutting measure to company restructuring.

China is not a fool to keep investing without profit as the money invested plus profit will one day flow back to China.

if drop 15% in 5 years than up 18% in another 5 years, after 10 years bank laugh but you cry...

This post has been edited by Nikmon: Nov 15 2017, 07:12 PM

Why not? Although so far the popoti price is upwards trend (even if it’s just due to inflation only, as someone keeps repeating).

Now, if he bought 🍋, then lain cerita lor.

how many depends on everyone affordability, investment goal, gameplan. Don’t nid to all in for the 5%. Pick those that suits your plan. No need to follow what ppl buy. What they get may not suit u or me too

This post has been edited by propertybuddy: Nov 15 2017, 08:29 PM

Don't know how long already said properties market down down..

I don't see real bloodbath yet

Price dropped 30%.. Then we talk..

yaloh, it wont drop drastically like Spore properties like share market

Some already dropped 30% or more from peak.....

But no enough to create a bloodbath on the street.

Property is illiquid, price takes years to bottom. You may get more than what you wish after bank interest rate rise.

This post has been edited by icemanfx: Nov 15 2017, 09:40 PM

I can tell whos ur sifu from your writing hehe

I think there is no secret formula. Even many experts in USA could not forecast the coming of subprime morgage crisis in 2007. There is a tipping point and we don’t know where is the Point. Also many believe in Black Swan event by Nassim Taleb.

Many still can’t afford 300k properties even prices really drop to that level. The is a worldwide problem and many ppl also can’t afford to buy their own shelters.

What type of prop drop 30% so serious? Buy from developer is it? Generally, drop is 10% or less only. Some landed are constantly up. Talking about Klang Valley secondary market and only on transacted price, not peak asking to current asking lah.

if got nice development dropped 30% subsale transacted price excluding auction, pls let me know. I would like to buy.

A say: There are plenty stocks in primary market still, slow & bad market…
B say: There are plenty developers building affordable house, especially along MRT…
C say: is RM300k-RM500k affordable? How to buy, house too expensive, malaysian cannot afford.
D say: let the price drop, then sapu, do not buy now. (*Means there are plenty reserve power is waiting to buy the estimated under cut subsale)
E say: Now all material cost increased, hardly the end product price reduced.
F say: When market crash, all price go below actual value.
Wah… challenging market… bet or no bet?

This post has been edited by kinnasai: Nov 15 2017, 10:21 PM

Learn how to get 5% profit making properties. You won't repeat above statement again and again.

Some property up more than 30% between 1Q16 and 3Q17. BTW, the buyer is paying cash.

Small kid talks a lot. Char See....

What about majority of property between 1q16 and 3q17?



This post has been edited by icemanfx: Nov 15 2017, 11:57 PM

Actually I am more interested in how can he borrow 9 mortgage loan?

don't think so. market is active with affordable house recently, especially these 2 years rumawip and Pr1ma, once it is done ready for moving in should be in year 2021. Flipper will suffer in year 2021, now should be able to hold with rental income.

Dropped 30% ?!
Sure bo?
I still can’t found any subsale allow me marked up 30% (exclude those poor management like Scott garden).

Why not down to 100-200k if 300k is still not an affordable price? Why spelling 500k?
A Dr or chartered personal like him is assumed to have some way of deriving those numbers. If he really simply plucked some numbers to make up story and there's no different than chui sui talk.
Anyway, since his article has attracted attention, let's if he will present any data to defend his statement. Will see ...

Auction market plenty to choose from.
But still good located property no need to wait drop until 30%, people will take at 10-20% off asking subsale price.
And bad located property beyond 30% also nobody gonna go for it.


Here an example:




By the way, another unit available. Slightly higher price. Can wait for another round.