whether the developer is big or small, all it takes is 1 bit of mismanagement, and you can say bye bye to your money. just 1 person who decides that because his other businesses have collapsed, he is going to grab whatever is left of the company and make a run for it.

The rise in price currently is due to increase in the cost of building materials and petrol rather than increased demand from buyers trying to save on petrol.


http://thestar.com.my/news/story.asp?file=...6048&sec=nation

Quote from my earlier reply:-

and

This post has been edited by aaronpang: Jun 17 2008, 05:51 PM

being vested, I could only................................


Also a bit regret that I didnt have enuff.................



So glad that I choose to invest in properties rather than other instruments

but i don't it's fair as 30% increase in raw material doesn't mean 30% increase in building cost, they r just using it as excuse to make more profit.

It's great you got in early...

There is still good bargains around if can afford... I wished I could but I've decided to keep money in the bank for rainy days this coming year or two.

I hope I won't have to use it

I agree they're using increasing materials cost as an excuse... who dunwan to make money

Developers also factored not only the materials cost . There is inflation and cost of living... like everyone else they also need to pay toll, petrol, eat out and go shopping

This post has been edited by aaronpang: Jun 17 2008, 10:55 PM

It's true material on average didn't increase as much as 30%.

But analyse further:
1) Cement - Ceiling price lifted, transport cost increased = now already RM14 per bag & still rising.

2) Iron - Sometimes got money also no stock = getting supply difficult, moreover CASH only, no credit.

3) Concrete - 1m³ increased ranging from RM20-30 depending on grade & distance, 1 lorry carry 6m³ = 1 lorry of concrete need to pay RM120-180 more.

4) Heavy machinery - rental per day went up by RM100-200 = Anybody have any idea how many heavy machineries in a construction site?

5) Brick - no surprise, price increased as well.

6) The electric generator, cement mixer, pump etc - they run on petrol/diesel.

7) Electrical - copper is now a valuable commodity worldwide.

8) Water - well, if it's all PVC, still ok. if the spec quoted was copper pipe, good luck!

Not to mention the very basic - sand, aggregate, crusher run etc etc etc..........

Basically, building & selling a property is not just erecting a building. What about the infrastructure? The earth work? The reservoir? The TNB sub-station?

Some contractors, i heard, are planning to abandon their current on-going project if the client refused to revise the tender price. And that means, gulung tikar, dump everything & MAYBE start over a new company.

If the client allow price revision, the selling price must be adjusted to maintain their profit margin. If the client don't allow, .......... (pls figure it out).

This post has been edited by scorgio: Jun 17 2008, 11:22 PM

so should buy under construction house now from well known developer as well?
afraid they find abandon their project too bcos lack of capital...

i think it is more like they have slow sales these few months, trying to scare people to buy immediately before price hike so they can sell more, later cost increase less people buy they product, they will be in trouble.

government tend to keep house price low? how true is it?
http://www.thesundaily.com/article.cfm?id=23258

looks like i have to increase my house price by 10 %

but bank loan will provide loan th new owner according to market price....
if u increase price to RM400k, but ur house market value is RM350k...
bank will provide the loan to new owner according to RM350k, means RM280k-315k loan will approve...
which means new owner have to bear RM85k-RM120k for downpayment... for that amount i think very less buyers will consider ur house...

The government is scrambling to show that it is doing something to reduce the effects of the oil hike.

RM0.8/L really greatly effect to malaysia economy...
how the dumb enough that government to decide increase huge amount....
if increase RM0.20 every 3-6months still wont effect the malaysia economy...
but RM0.80 really killing whole malaysia citizen... who going to spend their more money for their expenses...
caused a lot of businessman losing business if citizens reduced their expenses... if businessman no business, then gulung tikar... if gulung tikar, effected malaysia economy... also which MNC company that going to tend to do investment in malaysia have to postpone their project too bcos expenses increased... who loss at last?

assumed house price increase 30%... sure the sales will drop like hell...
no sales, no stamp duty, banks no business, bank negara headache...

This post has been edited by gkl83: Jun 18 2008, 10:27 AM

you got a good point there, i think probably not as mush as 10 %, but 5-10K increase shouldnt be a problem in my opinion

i read speculation here are

1) not to buy now
2) price will drop
3) bank tight

but for what i see, prices are still going up and KLCC area still going high even after so many ppl spculate drop!! so how???

There are different segments of the market - the high end, mid range and low end segments, each have their own factors affecting demand and supply and also price.

Those around KLCC still going up as there are also attractive to foreign investors.

Another possibility is that things are hiking up in price now because of the fuel and electricity hikes, and when nobody buys the service or goods later, the prices will drop back. This is a basic concept of trade - demand and supply.

When price is too high, demand drops, supply increases, finally price will drop again.

Wait for the prices to drop - hold-off your purchases now if you can, everybody,...................

only for used property right?
i think new property should no effect bah...

how sustainable is the current property market? most of the houseowners are currently servicing their mortgage, with the recent hike in prices on almost everything, how long do you think can houseowners continue to service these loans when their disposable income is shrinking wef this month. Things is going to get worse if interest rates rises. The current NPL of our existing bankd is heading upwards and as far as i know, a lot banks has already called back on unused facilities. people think that since new houses is going to cost 30% more, it doesn't mean that the house they are currently staying is going to appreciate by the same quantum. Therefore, in general demand is going to drop, people will hold back on buying property, those who cant service their loans will sell out and maybe purchase a smaller house. People may also want to nearer to their workplace. Our country economy is now in a mess. Goverment policy is flip flopping and and this is bad for the business environment. We are already seeing a acute slowdown in spending since the fuel hike, people can't even sustain their current lifestyle. Some of the property in good location areas like ttdi, damansara, subang jaya, hartamas, pj area is way overpriced for what it is worth. I would think that property prices will decline despite what property owners might want to believe otherwise. Market forces will correct itself if demand and supply is not balanced out. And please remember that there is a lot of short term investor in the property market and they will bailout sooner or later.

Maybe some people who can't afford house are just hoping that houses prices will drop? In cities like New York, Moscow and Mumbai, most of the residents can't afford property there, so they just rent. The same thing could happen to Klang Valley and Penang.

As for


what do you mean?