but don't forget... even if property prices come down... it doesn't mean banks are gonna be more lenient with loans... at the moment, interest rates are low... if you wait too long, the rates might increase... so what if the property price cam down...

it's not so straightforward, i guess.

i think, instead of focusing mainly on property prices alone... you must not forget to consider other things like rental returns, maintenance cost and locality. buying cheap does not mean you've bought something good. even at a time like this.

Found that developers are give "indirect" discount now eg. free stamp duty, 0% interest during construction, BLR-x%, free S&P legal fees etc.

errr..this discounts are always there no?!....

one may noticed even big time developers also coming out with those offers...eg.pay 5% only, interest free during construction, free spa/loan fee package...etc

i personally find that the developers are coping hard with the quiet market..

as for subsale market, i think ppl tend to wait and see if price dropping..and i think price for subsale market may be reduced to woo buyers. Before the fuel price increased last year july, the subsale market prices are pretty high where owner tend to follow "wiling seller willing buyer" concept, putting up price that they think "acceptable" for themselves NOT the market.

kinda funny if you read through this thread, some earlier quotes sounds very optimistic

"仙家"Singalingam

This post has been edited by muscaa: Feb 26 2009, 11:37 AM

Yes, indeed developers are coping hard. And it's about time they are put in this situation. They have been complacent for far too long. Some hotshot like SPSetia introduces a 5/95 concept - and our mouth is drooling. It should have been an industry norm and practice in the first place! If they don't have the proper capital strength - too bad - out they go - bankcrupt for all I care. The industry should be more darwinian and competitive.

Well, I see your point on sub-sales.....however, I actually expect sub-sales price to be flattish or slightly increasing in landed residential areas......prime areas - i think the price will actually trend upwards. In general, banks would tend to shy away from the "new to bank" market or under con market. We expect the sub-sale market to actually be more competitive as banks would want to compete in this area. Why? The quality of the collateral is good, customers in this segment may be of better credit quality, and the customers themselves may be motivated to refinance.

cheers.

Read today's news paper, you will surprise to see how many developer advertising there project,
i think they all gone mad, In this time building more and more regardless market condition,

sheaku, think all those were existig projects. Think most new projects were launched in Puchong, surprisingly. Looking at the freebies given + lowest interest rate levels, imo there's never been a better time to shop for undercon properties

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Added on February 27, 2009, 4:58 pmsheaku, think all those were existig projects. Think most new projects were launched in Puchong, surprisingly. Looking at the freebies given + lowest interest rate levels, imo there's never been a better time to shop for undercon properties

This post has been edited by Pai: Feb 27 2009, 04:58 PM

well, although it's a good time to get under construction properties now, it's unlikely to get very good loan packages, even with the developer's panel of banks.

personally i think the BLR is somewhat too low currently for banks to offer any good deals, by the time the developments are completed (probably in a few years time), the current loan packages won't look so appealing if the BLR increases within the next few years.

good suggestion, and I may add to this ---> Go for reputable developers with string cash reserves. U never know.....

i didn't go through all the packages available for all new developments, but so far i've seen BLR-2.15% whole tenure. well, perhaps i'm a bit too greedy myself.

but personally for me, if the packages are signed up now the monthly installment is a kinda deceiving, although BLR will soon be going further down in the coming week. when the BLR goes back up in the near future, some will be crying foul when they find out that they need to pay higher than what they initially assumed.

packages with average interest rates around 3.8-4% now looks very tempting though.

If BLR goes up they still pay the installment as per letter offer.

Its only the tenure that needs to be adjusted, depending on the percentile of changes.

I did some study on the Mortgage Loans in Malaysia. Based on Letter Offers dated back to year 2004, seems like the average interest rate for residence property is at 6-7%.

Bank determined (or at least they tried to) the Spread Rate / Prescribe Rate according to BLR, and i have an average spread of 6-7% for the pass 5 years based on the old cases i have on hand for reference.

Anyone has details of Bank's spread rate dated back to the millennium? I would love to study them if i could.

No la...if BLR goes up, your monthly installment goes up except for fixed loans.

On 2nd thoughts, you are a loan officer huh, guess you shd know better then. So..OCBC got offer somekind of loan where BLR goes up and your monthly installment still fixed and only change the tenure?

This post has been edited by mIssfROGY: Mar 1 2009, 04:56 PM

It depends what kind of loan you are taking. Nowadays, every financial product become more creative already.
Banks generally have both type.
One is monthly payment change due to interest rate. One is tenure is lengthened or shorten depended on interest rate different. Banks generally like second one because it is more profitable to them.

dear all, just to share


http://biz.thestar.com.my/news/story.asp?f...47&sec=business


as highlighted earlier, i believe these are the effect of "willing seller willing buyer" concept practiced by the market during prime time, sellers pushed their property price higher and higher to stir the market...now thats the time to bite the bullet...

too bad the 30% drop only applies for KLCC props.............else would have gone in bare to snap good assets at 30% off.

yes, i always believe in landed property even though it may not be first choice for property investor...

i am of the view that the prices for landed property in coming months may be stagnant rather then slight increase due to the fear of commitment by the ppl in purchasing property. In fact, sub sale cases are reducing in Banks since Jan ..

I am currently have an offer to purchase a leasehold double storey terrace house at a slight below market price but undetermine if i shud proceed for the purchase and same time keep my existing freehold single storey ....

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Added on March 4, 2009, 12:27 pmhi sir, for those with cash on hand, it may be good time to grab KLCC property and keep it for few years...i believe the market will bounce back by then just like 1997.

I had frens who got dirt cheap KLCC area property back in 1997 and the return was tremendous after 2000.

if only i have d $...

This post has been edited by bearbearhong: Mar 4 2009, 12:27 PM

Property price would never drop drastically at least in the Klang Valley for the time being. There are simply too much of a demand previously and bad economy would reduce the demand (affecting the value) a little but not to a massive extent where it'll hurt badly.

That's a difference between 1997 and 2008. 1997, Malaysia is directly hit with financial crisis, even banking industry survival is in doubt back then while company were racking high debt due to high economy growth prior before 1997.
So in generally people and company has less cash. So less cash, less demand, while sellers needed cash, so plenty of supply.

But now situation is a bit different, since 1997, Malaysia never had a red hot growing economy again. Banks and company are more conservative throughout, in fact, Banking industry itself is flooded with amper liquidity and well managed company has tons of cash sitting in company coffer.

In order for property price to go down drastically, you need one criteria, sellers are desperate for money which by then only we will have fire-sale. If sellers are sitting with tons of cash, then sellers won't be so desperate to sell.

Properties price will be soften, there is no doubt about it, as new demand will shrink due to lesser job around, lesser businesses, lesser home loan will be granted. But to say property price will collapse like 1997, it is still far from conclusive as you need one criteria as mentioned, sellers are desperate for money.

imho, prop. at m'sia is still doing respectively well even during this crisis period
proof of selling trend can justify this
1. 530k new launch at Putra Height, 30 units being booked/bought within the 1st 3 weeks of its launch
2. as goes with Bdr Puteri Puchong with price tag > 500k as well. 1st week and u can see at least 10 units being booked/bought

well, i would say this...
- if the price of the prop. were reduced. mostly likely it's from those small developers whom are desperate for $
- this kind of prop is not worth as the future development will be unknown
- as of those big players (Setia, IOI, Gamuda, YTL, Mah Seng and etc), they will only offer u attractive package (5/95). but they will not reduce the price