Increase for sure....because all building materials price will increase as well.
However there is a limit to the increase, as when ppl start not to able to afford the properties price anymore, the demand will subside, and that is when property price will come down so that supply and demand will sync again.

For me, middle price properties in Malaysia is not going to drop anytime soon, we still have surplus of demands, look at the frens around you, aren't all of them planning to buy a house? We also will not face US kind of property credit crisis because our banks here are relatively much more stricter in approving house loan, so properties in Malaysia is still going on very strong for me, regardless what happens.

Malaysia properties are not in a bubble at all. Only the extra high end areas (e.g. around KLCC), those might be bubbles. But for 300-400K houses, they are not bubbles. The price is there to stand for me....at least for next 3-5 years.