property prices dont seems to correct..
infact it is going higher.

the 70% LTV financing, not much deterrent.

Property market doesn't react so fast.

Malaysia will only be marginally effected by government controls if any.  The bubble is in, plain and simple, and is driven not by domestic momentum but the global markets.  Valuations in the stock market in Malaysia are only moving up based on the value of the MYR.

The RE market in KL and KV prime areas will correct based on the next downturn which is unavoidable.  Think Global, be proactive Local.

what do you think of the current prices of average new launch now? @ RM500~RM600psf range. Is it peak or near peak already?

I believe the top is in.  There is always more fish to fry for the developers and ways to encourage the last rounds of buyers to part with thier money.  Watch the listings for your area, look for the first sign which has already occurred and that being a 30-50% rise in listings and a 20-30% drop in sales and you know things only have one way to go!

Yeah, if you are looking to buy it's good to monitor the prices in your target area now and compare to the price development over the past few years.

I just happened to see one new listing drop from the established pricing over the last few months.

Where will our children live?
Will they be able to afford to live where you live?

Six years ago, a fresh graduate with good results could earn a starting monthly salary of around RM1600 in a respectable firm.

Back then, a modest 2-story link house in a good area (eg. Damansara Heights) cost around RM500,000.

Today the same fresh graduate could earn up to RM2600, but the cost of link houses almost everywhere else ( Bandar Utama, Desa Park City, etc) has shot up to over a million ringgit.

In very simple mathematical terms, what would have taken an industrious fresh graduate 30-35 years to own a modest home, would now take at least twice as long to own.

Unbelievable. But true.

The cost of home ownership in all areas, particularly in the well-established ones, has far outgrown the increase in real income levels.

Which leads us to the inevitable question - where will our children stay?

Or to put it more precisely, albeit crudely, where will our children be able to afford to stay?

Discounting any inheritance, lottery strike or other windfall, the truth of the matter is, at least for one family who grew up in Damansara Heights, that it took both the husband and wife to work extremely hard, which lead them to be promoted to the highest levels in their respective organization, and still just barely be able to afford a small little bangalow in the same area 20 years after they graduated!

And this is a family that eats and shops very moderately, buy their groceries from hypermarkets, do not club, drink or even hang out over RM10 coffee lattes.

If they had achieved any less success, got stuck in "upper management", or spent more extravagantly, they are convinced there is no way they would have been able to afford to stay in the area!

Does this sound exaggerated?

Not at all.

If today, you can only get an old link-house for the same price as what you would have paid 20 years ago, dare we imagine what we can buy 20 years from now?

Actually, we can - if we are brave enough!

In 20 years, your RM1 million which could buy you a nice bangalow 20 years ago, and an old link house today, will likely only buy you an old, 1200-1600 sf condominium in the same, well-established area.

Will this really happen even with so many condominiums being built?

The answer is yes. For the simple reason that even the number of units of condominiums in a particular area is limited. It will take much longer, but eventually, it will happen.

So what can we do if we would like our children to even have a chance of buying a house in the area they grew up?

Well, the answer is pretty obvious isn't it?

You have to buy the house now, and hold it until they come of age, otherwise, short of a windfall, it will be most unlikely that they will be afford to do so.

Some parents have already realized this, which has accounted for the recent upsurge in transactions, and prices, of old link, semi-detached and bungalow properties in all the well-established areas.

We are no longer in the age of "psf reasonableness", "capital appreciation", "ROI" or "rental yields".

We are really in the age most aptly described by Elvis Presley's 1960 number one hit in the UK and USA...

"It's now or never!"

Issue 22 of Property Buyer. (unsure who is the author but most probably one working for the vested parties)

Which?

It's in one of the area I monitor.

The one property that I viewed few weeks ago also seem not too hot already
before 70% LTV, agent told me better make decision quick, he has a lot of potential buyers eyeing the house, waiting to view the house...
but this week i receieve few calls from him pushing me for buying decision...

The one property that I viewed few weeks ago also seem not too hot already
before 70% LTV, agent told me better make decision quick, he has a lot of potential buyers eyeing the house, waiting to view the house...
but this week i receieve few calls from him pushing me for buying decision...

Any new launch around Damansara Perdana lately?
Im interested to invest a studio for rental

The one property that I viewed few weeks ago also seem not too hot already
before 70% LTV, agent told me better make decision quick, he has a lot of potential buyers eyeing the house, waiting to view the house...
but this week i receieve few calls from him pushing me for buying decision...

i am looking at mont kiara condos and referring alot to www.propwall.com since they do simple price benchmarking. It seems for most of the condos, there is a sudden price surge recently, which is really holding me back in buying any units..is this a good symptom the price may go down further?? i'm really unsure..