I noted from your posts that you are hunting for a property for your own stay.

If you are confident property price will drop and investors/speculators will kena kaw kaw, then you should be renting and waiting for the day of reckoning. Of course, you could be in for a very very long wait

Re: highlighted. That's why people invest. If prices remain stagnant at RM100-200k since 97/98, how can investors using cap appreciation strategy make money?

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Added on November 1, 2010, 12:39 amNoted. But this shows property slumps are very rare and those waiting for a property market crash could end up waiting for years.

This post has been edited by Veda: Nov 1 2010, 12:39 AM

apartment in USJ 11. Ar---ia.. rental unfurnish is around 900 -1.1k. Furnished around 1.4k.

property bubble is going to burst soon... high activities in property speculation

Better to wait for years for a overheated property market to cool than be caught holding a bad investment choice when the market crashes. In a slump, you are staring at a capital wipe out, or maybe a large capital deficiency, and it may feel like the end of the road for you. Then, it will take many years for property prices to recover and in the meantime, you feel like a helpless prisoner jailed for owing too much money to the banks. Don't forget, a slump in properties means weak economic conditions as well as it takes time for excesses in the system to work itself out. Some of my over leveraged acquaintances in California, USA are in that kind of situation. One lost his beautiful home plus 3 investment properties. All foreclosed by lenders.

I dont think it will burst soon since it just started. Bubbles need time to develop and more time to actually burst. The property industry in Singapore and Hong Kong are still booming and show no signs of bursting any time soon.

some people keep on saying property bubble burst, i think they're not really understand what's property bubble.

Property slumps are rare because at least in Malaysia, we don't have crazy bubble before, because Malaysia or banking sector adopt conservative loaning practice in general.

What we should be expecting is property sector correction, not big burst/slump, as we are not in the stage of great bubble (or yet, who know).

There are pocket of bubble here and there, no doubt, but not across.

Big bubble generally is the result of cheap money, bad loan practice, too lax, overloan etc.

Once there is bubble burst, and properties slump could take years and decade to recover, just what happened on Japan, US.

You don't expect house price to collapse to the bottom, like a 300k apartment drop to 100k, a correction is imminent, but we cannot say it will total collapse.
As once property price drop to bottom or to the cost of building, there is no more new supply coming out. No property developer want to build property if they cannot make profit.

As long as there is money in the economy to support the property price appreciation, it will continue for sometimes.
Do remember, the main reason of why properties price surge is because too much money, too low FD rate, too little investment opportunity, rich become richer etc.

yup..agree...they will just keep waiting and let the chance slips....

those who think property going to drop, continue to wait on the side... those who think property going to continue escalating, buy buy buy...

personally, i have been waiting for property to drop for a long time... never went down. last year i whack 2 biji condos... both have gone up in value by quite a lot... even if slup, i think won't go below what i put in... so to each, his own.

so wait or buy or bye bye? Any announcement from BNM this week?

Its not that anybody is saying dont buy property now. You can buy now but ensure that the property is in a mature area where the prices are stable and even if there are any property bubbles, the price will still hold. If u wanna buy in other areas u can still buy but do not hold the property for long.

A property bubble is defined as an unsustainable rapid increase in valuations of property relative to incomes and other economic elements, followed by a sharp reduction in price levels.

The key word here is 'unsustainable'. This refers to a property price which escalates to a level which is outside the normal median and then crashes. Not all price increases are defined as 'unsustainable'. Price increases in mature areas are mostly sustainable as seen in the past. So buying in those areas will still be possible. But the risk comes from purchasing properties in other areas. You may end up making a profit now but if you are still holding the property when the bubble bursts in a few years, then ure in for a very tough time.

i think that...in the event that the bubble burst..
landed can hold the value more.....
condo...dun think so....
first thing to hit is luxury condo

If there is correction or some may call bubble burst, then high end market is the one will be hit first and the most. It is always like that, because generally high end market is the one appreciate the most and rapidly during boom time.

YEs but again it depends on location. Condo's in high density areas like KLCC, Mont Kiara and Mutiara Damansara will be hardest hit. But stable areas like Bangsar & TTDI wont feel such effects as much.

Older condos in prime areas will hold. Its the new launches at inflated prices which will be hard hit. For instance, Kiara Park condo in TTDI was priced around RM 220K during its launch in 1993. But the same units are going for about 580K - 650K now. Thats an increase of around 270%. It was a gradual increase over the years due to the rise in stature of TTDI. Condo's like this will have far greater holding power compared to those in Mont Kiara and KLCC.

This post has been edited by cybermaster98: Nov 2 2010, 10:55 AM

I agreed with that.. i have planned to buy a house early this year and the agents keep manipulating the prices for the house. Even last month i want to buy a house, but put on hold as my company retrenching 70 people..

Tak tahu bila akan kena.

Economy good mah.. thats why my employer retrencing people.. some more in oil and gas industry.

economy good fire pple
economy bad hire pple or fire more pple?

Mmmm................. I tot O&G is super bull now?

now, in 2010 still got freehold condo less than rm200k just 20km for KL.
now, in 2010 still got freehold small dsl around rm200-300k just 20km from KL.

the subjective part is, environment nice or not?
some ppl are choosy, some ppl are not.

Hey, there are also freehold condo's worth 150K in Brickfields also la. But terrible surroundings. Almost like slums.