May 6 2020, 02:51 PM
QUOTE(zack.gap @ May 6 2020, 02:39 PM)
LOL I call BS. I've seen your posts around here and its all half-assed to be quite frank from a macro/micro perspective, including your QE argument.
To everyone else reading this, property prices increased from 2011 till 2014 purely because of property speculation. BNM introduced DIBS/DIRS in 2009 which reduced buyer's progressive payment/downpayment for undercon project but increased overall price of unit which drove surrounding prices up (hence why KV properties were main beneficiaries).
In 2014 Budget, BNM disallowed this practice hence market cooled ever since. Nothing related to QE AT ALL!
As a matter of fact both of you are wrong. The QE impact didn't reach up to Malaysian shore as far as real estate is concerned. Yes DIBS did lifted buying interest and volume, but the volume couldn't happen if banks did not have the appetite for real estate in their balance sheet.To everyone else reading this, property prices increased from 2011 till 2014 purely because of property speculation. BNM introduced DIBS/DIRS in 2009 which reduced buyer's progressive payment/downpayment for undercon project but increased overall price of unit which drove surrounding prices up (hence why KV properties were main beneficiaries).
In 2014 Budget, BNM disallowed this practice hence market cooled ever since. Nothing related to QE AT ALL!
Property loan was only 36% of the banking system loan book back in 2008. Within five years after that, every ringgit that the bank lent out, almost 50 sen were for property loan. The total loan book is now almost 50% to property loan.
Without this liquidity, you don't get the boom.
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