The increase of 40% overhang unit shock many parties perhaps... If you refer to theedge summary... for segment 500-1mil... the overhang value increase from 344mil to 3435mil (first half only) from 2013 to 1half 2017.... 10 times more already..... if trend continue.. what's the figure would be like?


http://www.theedgemarkets.com/article/prop...not-looking-yet

Well, just look surrounding you... how many ppl that you know in-person had invested in property beside own stay unit? I can easily come out around 30+ in a minute. Many of them had justified the purchase with various reasons; i.e: ringgit shrink and inflation, treat as long investment for kid education fund, xxx friend / relative bought a house @ 300K in few years back and now 1mil, peer influence, rental passive income, prop price only goes up and limited land bank etc.

Sentiment is changed lately, lots of negative elements kick-in like higher lending rates, exceed supply, increased of government subsidized houses, harder to get tenant, expat is leaving, elite is leaving the country, foreign prop investor is lesser and list goes on.

I believed in endowment effect... where ppl that already invested likely try drag it thru by subsidize the tenant and continue paying interest for bank so long their day-job is secured; instead of selling at loss now. I feel the depress situation will be continue at least 2-3 years if we're lucky. It'll goes pretty bad if global recession really hit during this period.

Btw, the statement ""Leading up to 2020 effective lending rates will likely be closer to 6%""... it's a BNM indicative in their statement or purely a speculation?

It will goes up due to inflation in X years....and turned into long term player.... (don't want to sale at loss) < "strategy learned from pro stock investor"

That's just a common move for most investor who stuck regardless in stock or property...of course most of average ppl aware of the repayment and certainly had built up their own buffer...(discounted those high risk taker, flipper or pro investor). Again, exception happened right? Some "asset appreciation" might actually lower than loan interest.... is Sungei Wang still the same 10 years back.

One should see the negative side of holding these asset in long run too... eg: cost & time opportunity where you can gain from other investment vehicle, long term commitment will limit your opportunity (less appetite to start a new biz or job change, etc), tenancy problems or no tenanted, added stress, anxiety and self-doubt, degraded lifestyle, property run down etc.

If no more QE in coming years... god know when the next spike will come? Bear in mind factor like Malaysia become aging nation by 2035, city is be actually expanding (eg: greater KL to counter land limitation issue, we're not HK or SG), workforce pattern is changing for newer generation, flexi style and self-employed will affect property selection too (EFP SSP1M), middle income trap, etc

During market is hot, there's tone of good reasons lead you to BBB, once turn sour, many bad reason will sound worrying.

BNM is playing their role to ensure financial stability. Media will cook up anywhere based on NAPIC statistic.

Perhaps, the different is pea sized minister might react in different way... dont forget there're many property company owned by umno & kawan-kawan.