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 Will you think the property market will fall soon?, will the landed property fall in 2024?

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bill11
post Apr 28 2023, 04:26 PM

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QUOTE(A.B.D. @ Apr 28 2023, 02:06 PM)
I just listened to this BFM podcast, around 6:30min the MD of Crest Builder talk about construction cost going up and house buyers need to pay more.

https://www.bfm.my/podcast/morning-run/the-...fixed-contracts

Subsale will automatically adjust pricing up too. This is another reason house prices cannot fall, especially in the high demand area. And thread title specify landed house, worse still, in high demand area it has become limited edition already.
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Got demand ? Many youngster is going to sg
Interest rate is high now , harder to get loan too, harder to get ROI breakeven for investment.
Wasnt in the podcast the MD also mention one of the KL project they have to reduce the RM psf from 1200 to 800/900 psf. Targetting local.
bill11
post Apr 29 2023, 10:23 AM

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QUOTE(A.B.D. @ Apr 28 2023, 05:07 PM)
At 17min+ he talk about a future project where planned selling psf price was 1.2-1.3k, drop to 900-1k after redesign and reducing offerings. Not a real drop for the same product.
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Then you can agree with me the future is no longer as rosy as it seems. If you doesnt see that at least this developer sees that.
Now with more condo in lower pricing range it will make it congested and it is difficult to have all of these similar price range group of condo to get the price increase easily.
bill11
post Apr 29 2023, 02:29 PM

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QUOTE(A.B.D. @ Apr 29 2023, 11:54 AM)
Ok let me clarify, I shared the podcast for the point about cost of construction which is relevant to what TS is asking, if landed in prime area like Subang Jaya will fall or not. He must have his reason for being specific about landed.

And for high rise, although things “not so rosy” as you can hear from the interview, but you can ask around. During pre-2010 before developer interest bearing scheme psf price was around RM200-300 then by mid 2010s around RM500-600. So the experience of those who could already buy since 10 years ago is that the longer you wait, the more expensive for the same area.

This brings me to another point. To a buyer, a Property is a physical house, its design, locality, street address, unit number and so on. It’s not practical at all for a buyer to just think about the Property market in general if looking for a home.
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So far landed still good.

For high rise, yes 2010->2020 we can see the bull run(?). Now the question is 2020---->2030, will history repeat itself ? Is the politcial situation, local and oversea economy still the same as previous? Also i believe govt also doesnt encourage the house/condo price to rise that fast, hence last time bull we doesn't have that 30% downpayment. Also last time it is easier to push as the house price relative cheap vs income, but now ?

Anyway not here to prove you are wrong and i'm right. If you think the property work for you just go ahead and buy as long your DD is done.
bill11
post May 2 2023, 02:31 PM

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QUOTE(A.B.D. @ May 1 2023, 02:35 PM)
100% increase in some of those areas since 2011. Great investment for those who bought instead of buying a 2011 Porsche Cayenne laugh.gif
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i take AAPL 2011-2013, the highest price to now, you are getting 570% return.

So there are other investment can generate better return. Dont die die property only.
bill11
post May 2 2023, 03:44 PM

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QUOTE(A.B.D. @ May 2 2023, 03:12 PM)
No doubt more people choose shares as investment for ease of entry and cashing out. But it’s a completely different product from real estate that is physical and tangible and can generate rental income.
Therefore very few people buy shares from young at the value that can buy a house and at one time to lock in the price. If only dare to buy in small amounts what is the point of 570% return?
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Until one went through the process of rental business, all the hassle, time needed, income tax computation, ROI, property/assets get damaged and replacement for each time the tenant moved out.

After that they will know which investment tools will be better for them.

 

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