there are several factors cause the property market soft and slow
1. oversupply - there are tens of high rise projects per years in recent 5 years. as investor we assume the property can flip at least 10-20% upon VP. even if without this margin if the house can rent out it will somehow cover portion of installment. But in real many people receive house key without making any margin and yet the house remain empty as no tenant found.
2. mortgage loan - due to high debt ratio, banks setting higher standard for loan application as there were many bankruptcy cases cause huge loss to banks. without buyers those developers are giving away cash rebate, free all kinds of processing fees, zero downpayment, discount, fully furnishing etc to attract buyers. If new project is cheaper than old one, how the sub-sales market able to sell their property. Sub-sales the buyer need to pay 10% downpayment, stamping, lawyer fees etc.
3. economy - current economy is getting worse compare to 5 years ago regardless of politic, there are more and more retrenchment from big companies and people losing their jobs. without stable income people will have lower wish to buy property as it is huge commitment. Nowadays in KL Setapak area tenants are getting lesser and lesser. Look at iproperty PV sub-sales you can find many properties below RM500k for big unit (>1200sqf), while in year 2015 there were NONE of these properties less than 550k even for the smallest unit (<1000sqf).
In future the property is no more consider as good investment as currently there are too many units in sub-sales market. Unless we can bring
500k or 1 million foreigners to afford to buy sub-sales. Our current population will not able to cope with this oversupply situation in any time plus birth rate is low this will affect future market too.
foreigners see also run.