Many boats to Holland.

Been about 9 months since your post. Did you check for your target area of Subang jaya whether transaction price drop?

In case you don’t know can use this to gauge
https://www.brickz.my/transactions/resident...ya/ss18/landed/

It is true that costs have gone up a lot.

In comparison, taking just steel into account - prices per RM1900/ton preCovid, and rose to RM3500/ton in mid2021 before hovering downwards. Today, prices are still around RM3000/ton. And that is just steel - cement, concrete, glass, aluminium have all rose way above preCovid prices.

Labour costs is also another issue. Since the lockdowns and border closures in 2020/21, many foreign workers have gone back and could not come back. Then when they were allowed to come back, the costs had shot up tremendously. An Indonesian coming into Malaysia with permit and visa would cost at least RM5,000 including levy and permits. A Bangladeshi coming in costs as much as RM18k back in 2021, and prices have come down to about RM12-14k now but it is still very expensive compared to before. A carpenter used to earn RM90-110/day preCovid - today averages at least 175-200 already.

Interest rates have gone up too, causing the cost of financing to go up.
That being said, it is undeniable that the cost of construction had gone up a lot. Most of the affordable housing that you see today selling at RM250k for a 1000sqft - those are considered a bargain steal if you can qualify and get the unit because the cost of construction for these type of housing is already RM140-150psf. Taking into account consultancy and professional fees another 10%, local authority fees plus IWK TNB Syabas etc etc another 8-10%, marketing costs of say 4-5%, the cost of development without counting the cost of land is already almost RM200psf. IF the land is in a slightly more prime area, going for RM200psf, based on a plot ratio 1:5, the gross cost per sqft is already RM40 - and with say an efficiency of 80%, the cost would be RM50 already psf for land - making it already RM250psf.

Today, land cost are very much above those figures in prime areas - some are as high as RM400-500psf for areas such as Klang, Seri Kembangan and Selayang, and exceeds RM800-1000psf for areas such as Petaling Jaya. A more middle-cost type of development would cost at least RM300-350psf, and taking similar percentages, cost of such projects would easily be RM480-500psf.
ANYWAYS, property around the world have always been known as the best hedge against inflation. If you have some spare cash, or want to invest, it would be ideal to go into real estate. Kuala Lumpur and Klang Valley has got a peculiar double-whammy dilemma - its highest and most luxury properties are going for RM1800psf averagely, which is USD400psf - making it still the cheapest in the region versus Jakarta, Bangkok and even Phnom Penh. Singapore's highest are way higher. So theres plenty of room to grow. The only thing keeping our properties from going much higher are due to Government initiatives to keep on pushing the affordable housing (especially those with subsidies). If KL's properties were to be more open, I believe our properties would be much high and the market value would be higher.

To most home owner/borrower, 0.25% interest rate rise is less than a family brunch on sunday, is none issue.

jrshow TS take note, wait 6-12 months will be better, hope you get your Subang Jaya house for the price you wanted

This one almost > 15 years case, haunted unit if not mistaken.

Indirectly, the loose monetary policies in the 2000 and 2010s have contributed to the state of property market now.

The government can take the easy way out of pushing OPR to be low , but we will end up like Turkiye with runaway inflation.

it never happen la...at least not in my area here - bukit mertajam, people still buy property like hot cake....where got default issue ?

come proof me otherwise.....

there is no evidence that default case is on the rise ! where is data ?

Don't create false alarm to community here......house price will never drop and it will keep on rising....

if you still wish for the property price to drop....then good luck. It will not happen in ur life time.

impossible la.....property price will not drop ....