One of the most frequent use phrase in property talk is Market Price.

I personally think it is very vague especially under current circumstances.

Lets take cyberjaya properties for example. Since there are a lots of auction properties coming out from cyber would you say its fair that market price for cyber properties would have to take these into considerations?

Anyway, how would you derive a market price for a property? From bank valuation or professional valuer? From past transactions of similar properties? Would you include the macro and micro economics factors such as interest rate trend, government policies, trade wars, etc etc

Perhaps lowyat sifus and agents could share their insights into how they calculate market price. It would be interesting to see and perhaps would be of some use for agents, property owners and prospective buyers if a general consensus can be formed.

Property Agent determine the price because that's their rice bowl. Mark up from past transaction and negotiate with both buyer and seller.

Bank and valuer are just accomplices.

Bank valuation = the max valuation bank willing to grade the house

Market price = base on willing buyer willing seller concept. Seller or owner can price whatever price they want, but if too high, then will be just a waste of time.

Of course is a war out there if need to compete with many other units to sell / flip. Especially pigeon hole studio unit in Cyberjaya. Plenty of choices. Price dropping. Used to be 300k for a 450 sf unit. But now most subsale asking price around 260k-280k. Lelong can get at 200k.

For me, unit's price should correlate with rental. Rental should be able to pay instalment. If cannot, then its imbalance. However, price would also be effected by the buyers. Like askarperang said, willing buyer wiling seller. I don't think subsale should follow lelong because lelong is uniques case. Some buyers are reluctant to buy lelong unit because of whatever reasons, so they buy subsale.

if u can find one then talk. every RM100k loan is RM600 for 30years. unless its low cost. forget it.

So many rental strategies nowadays. Although you must first buy the right property la. And even to pay some part of the instalment is ok if your property price appreciate.

I was lucky here. Bought Publika residential unit pre-launch, when market is good, rental covers the mortgage. Now market is a bit slow so need to top up extra, but the location makes all the difference.

I agree, rental return is a strong (but not only) indicator of the property value.

I use 200k/RM1100 personally tho. We calculate very similar haha.

After deduct maintenance it becomes negative again.. , that's why I prefer landed. Better capital gain.
Dont tell me you want to pay 30yrs for the loan..

I mean for my loan repayment. Maintenance, furnishing all that another cost.

Most important cover repayments, then slowly profit by capital gain lo.

you not prefer landed, is land office ban you from purchase second low cost flat actually then only you switch different plan slowly