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 PROPERTY MARKET TO BE BADLY HIT IN 2018, Tekan the greedy sellers to the max!

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kyo2020
post Nov 14 2017, 09:26 PM

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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?
kyo2020
post Nov 16 2017, 06:32 PM

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QUOTE(icemanfx @ Nov 16 2017, 12:39 PM)
Price rise during bull run showed property price is not inelastic. Hence, it is natural for price to drop with demand.

In practice, holding unsold property incur cost and loan repayment is a burden. It would be a relief to off load early at lower price.
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The key is whether the investors hv enough holding power. I don't see it's a problem, as those who qualified for bank loan also means that they can afford to pay the loan.

Once the property price inflated up, demand will accept the fact to buy with the price.

Pls don't look down the holding power of our current investors in MY, think back who are the majority of the investors out there in MY.
kyo2020
post Nov 17 2017, 12:59 AM

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QUOTE(TOMEI-R @ Nov 16 2017, 06:48 PM)
Its not about looking down on the holding power of the current investors. The market would tell no lies. Just ask any property agent and you will get the reply of "eager seller" or "enthuasistic seller" and you will know whats happening.
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No, me and my friends always experiencing agents trying very hard to persuade seller to sell lower, this even happen to prop that hv very stable transactions with stable price. Subsales demand is lower, especially compare to new launch due to low entry etc. Agents need to persuade seller to sell lower in order to close sales easier. If hv many eager seller like u mentioned, agents won't need trying so hard to persuade seller to sell lower.

Wat happening now is subsales and even new launch demand has become lesser, but seller not willing to sell low just to attract buyer and dats y overall transactions hv become lesser.
kyo2020
post Nov 18 2017, 10:26 AM

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QUOTE(icemanfx @ Nov 18 2017, 07:53 AM)
In market economy, the only feasible and practical solution to reduce property over supply is to lower the price. When the price is low enough, supply and demand will be in equilibrium.

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How practical to lower the price since the seller hv no issue to pay thier loan and not willing to let go with low price? Base on current situation, buyer will still need to buy with the inflated price and this could happen in more obvious on later time where demand is absorbing the supply. Afterall, our property price is still not that expensive, compare to wat we earned. Buyer still afford to buy and pay for a decent highrise.
kyo2020
post Nov 18 2017, 09:56 PM

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QUOTE(icemanfx @ Nov 18 2017, 02:20 PM)
Keeping vacant unit incur cost e.g bank interest and negative cash flow. Developer is more likely to respond with bigger discount, rebate or cash back; effectively lower the price.

Those subsale vendor with gold and silver mountain backing could hold until inflation catch up. However those stretched vendor may buckle under bank loan repayment.

With only 4% of adults in the kangkong land have over us$100k net worth. Not that many investors have the capacity to hold vacant unit for extended period.
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Actually invest in prop don't need silver or gold mountain...if u hv vested then may be understand.


 

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