Yes, well.
I have a photo taken from just a few years ago.
170 double-storey terrace houses in Rawang, build cost RM17 million.

So that means, each house cost RM100,000 to build.

Do you think the houses will be sold for RM100,000? No, right?

Going by market value, it's at least RM500,000 per house. So that's a 5x increase in price.

That means, they only need to sell 20% of their houses to break even.

What makes you think any property launch ... only sells 20% throughout the lifetime of the property?

They're still making lots of money, and are just trying to bamboozle people by saying they're not.

And the other factors cost 4x the cost to build a house, are you serious?
(Opinion, I'm allowed to have one right?)I'm actually thinking the real cost of building a house is bribing the land department or alienating the title ...
Come on it's very hard to believe, since you know more, provide a breakdown of costs, ok?

One must not forget, everyone is leveraged (loaned) to the max, with a MAJORITY from 25 years to 35 years.

70% of income is into repaying loans, and all sort of debts.

It will take a very long time for these group of people to have excess cash to invest in property again.

It is a long wait.   These same people won't have the same amount of spare cash lying around like those from the 1920s to 1970s to pass it on to their kids.

Double whammy.

Here is something new and it is about the automotive industry.  And it is a trend evident here.

TIV hits circa 600k p.a.  However, if you look at the product mix, sadly, the value of vehicles are of the 'economic type'.  Look at the product mix a few years back and it more higher end type.

TIV value of the yester-years have gone down and down for 10 years straight.

Disposable income of the downhill countrywide.

My buddy has just been laid off.

His developer boss wanted to build 84 houses worth rm900k each.

Only managed to sell  2 after 1 year of marketing efforts.

Project stopped wef until further notice.

https://www.thestar.com.my/business/busines...e-unaffordable/

KUALA LUMPUR: The number of unsold housing units increased in 2017 while houses also remained unaffordable especially in key employment centres, according to Bank Negara Malaysia.

In its Financial Stability and Payments report for 2017, it said there was an uptick in housing market activities, despite the high number of unsold residential properties priced at RM250,000 and above.

Unsold housing units increased on an annual basis by 22.7% in 2017 (2016: 41%) to 129,052 units as at end-September 2017.

More than 80% of the unsold units were priced at RM250,000 and above.

Many of these units were high-rise residential properties and were mainly in areas located far from major economic centres and with limited public transport facilities.

“The high number of unsold housing units also reflects the persistent mismatch between the selling price of houses being built and what most households can afford,” according to the report.

Between 2013 and October 2017, Bank Negara said 123,103 units of affordable homes have been built by the government, with over one million units at various stages of construction or planning.

The Government has also announced a freeze on the development of new luxury residential properties to rebalance the supply in the residential property market.

“Nonetheless, incoming supply of affordable housing remains insufficient to meet the rising demand from households.

“From January 2016 until September 2017, only 24% of new launches (25,124 units including those built by private developers) were priced below RM250,000,” it said.

This is inadequate to meet the demand of about one-third of Malaysian households that can only afford houses priced below this level.

The mismatch was exacerbated by the slower increase in median household income (CAGR 2012-2016: 9.6%) relative to median house prices (15.6%), rendering houses being seriously unaffordable4 in certain parts of the country

Bank Negara says despite growing Imbalances in the property market, there are no Imminent risks to financial stability.

In 2017, total exposures of Malaysian financial institutions to the domestic property market expanded by 7.1% (2014-2016 average: 12.5%) to RM850.3bil. The expansion was largely attributed to end-financing for the purchase of residential properties (5.3 percentage points).

Bank Negara also points out that total exposures of Malaysian financial institutions to the domestic property market accounted for 27.4% (2016: 26.7%) of their total assets as at end-2017.

Banks remained the largest lenders to the domestic property market. Out of the RM817.3bil of banks’ exposures to the property market, about 90% was related to end-financing for the purchase of residential and non-residential properties.

For the residential property market, in the first nine months of 2017, the total value of housing transactions registered an annual growth of 2.6% (2016: -10.7%), with the volume of housing transactions recording a smaller decline of 6.1% (2016: -13.9%).

This reflected the higher share of transactions for the purchase of houses priced above RM500,000 in both the primary and secondary markets.

The average house price as measured by the Malaysian House Price Index (MHPI) continued to increase at a moderate pace of about 7% in the first half of 2017 (3Q 2017 preliminary: 5.1%; 2016: 7.1%; 2010-2014 average: 9.6%; 1990-2009 average: 5.5%).

Bank Negara said as for speculative activities in the housing market, they remained subdued with the bulk of loans directed to first-time house buyers.

Outstanding financing extended to first-time buyers for the purchase of houses priced below RM500,000 accounted for about 71% of total housing loan borrowers.

“The risk of significant price correction for such exposures remained limited due to sustained strong demand,” it said.

In 2017, the number of borrowers with three and more outstanding housing loan accounts, a proxy for speculative purchases, grew by 0.9% (2016: 1.2%; 2010: 15.8%), accounting for less than 3% of total housing loan borrowers.

The share of housing loans settled within three years, another gauge of speculative purchases, reduced further to 9.7% (2016: 11.8%) of total housing loans settled.