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This post has been edited by geekystef: Nov 21 2020, 06:16 PM

Yes, but just try.

I have been looking at some condos in Bangsar (Sri Penaga, Casa Vista, Bangsar Puteri and Tivoli) and the agents tell me prices are now about 20% lower than what they were 18 months ago.

My wife also has 2 apartments in MK and they (i feel) also have come down about 20% (compared to before) looking at the prices sellers are asking in iproperty.

This post has been edited by Garysydney: Jul 20 2019, 03:37 PM

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This post has been edited by geekystef: Nov 21 2020, 06:16 PM

The market is indeed soft for secondary market real estate. Does not matter which condo it is but unless you are willing to sell it cheap then be prepared to hold on to it.

Am in the same boat. Have a unit at Desa Parkcity that's been on the market for 3 years. Had enquiries the first 2 months then no calls other than a bunch of useless agents. This year had 2 enquiries and 1 booking fee but it came to nothing.

The other condo I have on the market is a unit at Mont Kiara. Been on the market for 18 months. Get 2-3 enquiries each month but not had any booking fees on it.

Not that different when it comes to landed houses whether strata or individual titled.

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This post has been edited by geekystef: Nov 21 2020, 06:17 PM

You have to look at things from a bigger picture and from an economic point of view.

They have every interest to protect the property market as it affects the Malaysian economy as a whole. The property market can cause a huge ripple effect throughout the economy.

Just look at USA in 2008. Understand it, then you tell me that the government has no interest or obligation to protect the property market.

Edit: You may wish to read The Big Short by Michael Lewis for an in-depth account of the crisis.

A lot can be learned from the US subprime mortgage crisis.

Why do you think there are efforts to clear property overhang? Why bother with HOC?

An interesting thing to note is that in Malaysia, there no easy access to credit, and no shadow banking system. Say what you will about the previous government but they did a good job picking lessons from the crisis to prevent an economic fallout/disaster.

Funny you compare properties and cars.. I think the layperson can understand why they are not the same.

This post has been edited by vckc: Jul 20 2019, 04:15 PM

It is because of slowing and a negative economic outlook as a whole that the rate cut occurs.

A rate cut decreases the barrier to entry for a lot of buyers. It enables businesses to borrow more for less. And puts money in the hands of millions of Malaysians who are servicing loans. A 0.25% drop frees up on average of RM 60 for a mortgage loan of 400k.

Multiply this and you can see exactly how powerful a rate cut is, the extra money will either be spent or reinvested breathing new life in the economy.

The median age in Malaysia is 29 years old. This is an extremely healthy level.

I used to think that Malaysia properties are doomed. But by the time I understand and learn more about the economy. The more I think otherwise.

For a comprehensive education on the economic system, boom and busts and its intricacies. Read "Big Debt Crises" by Ray Dalio.

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This post has been edited by geekystef: Nov 21 2020, 06:17 PM

Increasing foreigner purchase from 500k to 1 million

Tightening of bank lending making it harder to get a loan.

LTV 70% for the 3rd property

DSR calculation switch from gross to nett income for the mortgage application.

Removal of DIBS

Strata title to be issued upon Vacant Possession

There are just some of the things I can recall at this moment.

EDIT:
These changes are still maintained by the current government.

Naturally, they are very concerned about the current property overhang issue and have even revised the plot ratio.

Developers can no longer get approval to build high-density condos.

This post has been edited by vckc: Jul 20 2019, 04:13 PM

I always look at macro economy. Construction industry constitutes about 10% gdp. Hoc is to assist developers as it contribute to aggregate economy. Subsale property doesn't add any value to aggregate economy. Price drop in subsale property only impact vendors.

In 2007 u.s subprime crisis, u.s gomen was helping and protecting banks, not subsale vendors.

Loan compression has been rampant. If loan compression is not subprime, what is?

If RM60 saving a month is critical mean borrower is overstretched. Similarly, if rate rise, borrower could end in foreclosure.

household debt at about 83% of gdp is a bubble.

When will property overhang be reduced substantially?

This post has been edited by icemanfx: Jul 20 2019, 04:55 PM

No - she paid off both units recently so has no borrowings now. She is getting slightly more than rm6k/mth (nett) from both apartments so she is quite happy.

I have been keeping an eye on Bangsar and MK condos lately and have been inspecting properties the last time i was back in KL (April/May) and will probably check a few more when i go back next month. I am particularly interested in Sri Penaga and Casa Vista (as well as Cascadium) but a lot of sellers are still holding onto the prices that are quite unrealistic in this market. I also had a look at a 2 storey terrace in Bangsar Baru (Jln Terasek) which was a basic unit - they wanted rm1.6m and the agent told me that a couple of years ago, this place would have sold around rm1.85mil. The house is still in pretty good condition but very basic.

This post has been edited by Garysydney: Jul 21 2019, 06:34 AM

The economy is more interlinked than you describe it to be. A fall in the secondary market will affect the primary market.

It's a well-known fact that developers price their inventory in future price.

Supply and demand, in general properties in the secondary market, are 10-20% lower than the primary market. Then buyers will prefer to purchase from the secondary market instead. Don't forget, purchasers can withdraw from their EPF account 2 to make a purchase if they want to.

There are plenty of people sitting on the fence for the past few years because of the negative sentiment. Trust me these people are waiting till times are good before jumping in. I reiterate, the median age in Malaysia is 29 years old. This is an extremely healthy level. The median age in the US is 38 years old. A growing population means that there will be more demand over the medium - long term.

A discount of RM 60 a month multiplied by the number of mortgages lead to an adrenaline shot in the Malaysian economic system.

More money flowing equates to higher growth. People have more to spend, and when people spend more. The economy churns more.

The government and the central bank's interest lies in the wellbeing of the citizens. If they don't manage it properly, good luck getting re-elected.

Loan compression cases are lower than you think they are. You are making it sound like a huge percentage of the loan cases are compression loans, however, the reality is different. This loophole is also getting closed. I would be concerned about this closure if we are at the peak of the property cycle as it would lead to a hard crash. But since we are not. I don't think an important factor, as compression cases constitute a low % of mortgage applications.

A household debt of 83% is still alright. The US household debt was at 128% in 2007 before the crash and normalised to 77% in 2012. The data shows that our household debt is on a decline.

There are many factors contributing to the occurrence of the subprime crisis. Extremely easy access to credit, (any Tom, Dick and Harry can get a mortgage loan) they are then sold and repacked to mortgage-backed securities which investors then purchase.

I won't go into it further because I will have to write a thesis. Just read the books that I have recommended to get a clearer picture.

You are entitled to your opinion, I am entitled to mine. There is no right or wrong, only facts and figures. No one can foretell the future.

Sit back, relax, enjoy the ride. The only difference is whether you are in it or not. Because I'm in it for the long haul and things have get worse before they get a lot better.

Hey Gary! How's the land down under? I hope you're looking forward to your retirement.

I have followed your posts in FIRE and find them very insightful. Thank you so much for sharing your experience!

Bad timing to sell... if wish too, sell below market value.

i ve got one friend, he wanna to sell off his condo at market rate recently. However, buyer only look look see see. Then the buyer got the another unit with better buy. So consequently he has to mark down at least 10% lower of market price to sell off.
Therefore, Condo really no resales value nowadays due to SS > DD.
For landed properties are soft as well, there is demand but no buyer

Am not sifu just like to 8kua here....

I just put my apartment for sale and less than 2 weeks it got sold for the price i asked.
Maybe it was just my lucky break, or maybe there is real demand where i bougjht....i dunno.

Few things here
1. Low density.....whatever you think its the selling point of your property your subsale market might not think its the selling point.

2. Sell on own later appointing agent.....can see yr relative is either not too keen to sell or too kiamsiap to pay commission. I this is a big no no especially now the property boom is truly over.
Also how many agents they appointing? 1 2 or 50???? You need to engage as many as possible even up to 50 bcos 95% of them will not be active enough to push yr unit.

3. Buying subsale doesnt have to pay 10% and etc wan...if you know how to bend the rules...i wouldnt want to elaborate further here.....so to say new property with all the freebies eat up subsale market is simply not true. People that are buying subsale is unlikely to consider brand new from developers.

Actually i have revealed too much of myself in that thread - i sometimes think whether i should have!!

This post has been edited by Garysydney: Jul 21 2019, 05:18 AM

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This post has been edited by New Klang: Jul 20 2019, 06:02 PM

What?