Let's see...

a. US stock just went sub 10,000 points;
b. Concerns on Commercial Mortgages, with number of bank closures in 2010 expected to be higher;
c. Unemployment in the US is HIGH, with the "true" rate higher (part timers has risen ALOT);
d. Concerns with the EU economy, specifically Portugal, Greece and Spain;
e. In the UK especially, personal bankruptcies are climbing and foreclosures are expected to increase!

In short, running out of options, and "stimulating" an already over-inflated economy is not solving the problem.

I see after a flood of comments for many weeks that now there is none!

This contributor is stating the obvious and big picture view which is rare on this forum!

Good for you!

More shoes to drop shortly!

EURO will go to $1.25 then to $1.28 by year end. POUND to Follow then all hell breaks loose on the USD.

What does that mean for export driven Malaysia???

from what i see the property market is still going uptrend and there is no signs that its heading south at the moment and our property market is still to small.. very unlikely that it would go bust

I wouldn't say the property in M'sia will go bust! I was just merely pointing out that the general economic strength isn't strong.

I personally believe the "noise" of towards economic recovery is not substantiated with raw data/ facts. My current concern is whether the upward trend in M'sia is spurred by buyers who are over-leveraging - due to LOW financing cost. If it is, there is real danger there!

From my perspective, the flurry of new launches with "crazy" prices are pricing out a lot of younger/ first time buyers.

Property's speculator hinting that there will be a hike of 20% housing price overhere in sabah... Now, an average paid sabahan will take another extra 5yrs++ to paid off the 30yrs++ loan for only a terraced housing.

properties in KK already overpriced IMHO considering the average income of the working people there, in outskirt inanam itself apartment wif 8++ sqt already reached RM140K++, few months ago my friend working in KK say the property prices there going crazy and ridiculous, people wif money datuk2/businessman/high post government servent took advantage by buying several units and rent it out, rental market there is very good especially around the city, my friend work as civil servant there got several units in beverly hill luyang and all let out and never have problem to find tenants

And im sure your fren will be a happy lad collecting rental PERSONALLY from Beverly

oh damn...the property at penang is also crazy... i don't know who's actually buying it but the average people over here is finding it hard to get a decent place to stay....

The star newspaper also mentioned property at penang inflated over 80% for the last 4~5 years, i guess average paid malaysian will need 30++ yrs to paid off their dream home. Rental is only so-so overhere, RM1500 for a terrace housing costing RM300k, not sure if it is better off renting and wait till the property cool off (but government got the scheme "Malaysia as 2nd home" so quite a lot of foreigner came to malaysia to buy asset so price gone up a lot recently)

Crisis? What crisis?

Properties in around Ikea/Kota D'sara seems like going up. Tropicana new condo launch >1.4M 40% sold!?

Singapore properties also hitting record, government flat selling at private price http://www.straitstimes.com/BreakingNews/S...ory_506807.html

Can someone tell us what d hell happening here?

My understanding...

During times of uncertainty, property investment is deemed to be the safety (protected from inflation etc) over unit trusts, shares etc. Same reason why Gold prices are sky rocketing!

For your information, the job reports in the US are a huge concern now, alongside with the health of UK + Spain's economy, and low interest rate strategy adopted by most countries to "combat" the "recent" recession. Overall, there has been no financial reform in the last 2 years!

Isn't Malaysian property prices pricing out many first time buyers or the younger population? If not, it is asking us to "leverage" even more to get onto the property ladder.

Remember 10 yrs ago when the country struggling to recover from currency crisis, when stock market was all red and all time low ... there were in fact many private constructions going on in the small towns.

For own observation and understanding, some folks whom have cashed out earlier or not severely beaten by the stock have plenty of cash and didn’t know what to do with it. Since market is so discouraging, the only why is to buy older properties and rebuilt. There was a construction boom in my place during down time!

Yup, many new properties are over value and beyond reach of first timers/old timers included. But do see quite number of good bargain at the older properties at well access, strategic and secure area with well maintained landscape. Guess it is all depends whether people are still so choosy and rigid must be landed, must be freehold, must be new, but overlook other more important basic needs.

End of the day, can you live for another 99 yrs and handover the properties to 3rd/4th generations. Or within this 99 yrs you can reap profit exceed what freehold can offer, and live confortably. Leaving enough to cover for the next generation. 3rd/4th generation are too far for planning. That’s some myth vs reality one should answer to break away from the social norms/old mindsets.

This post has been edited by Bobby C: Apr 2 2010, 10:39 AM

sabah and sarawak also price increase.
i thought klang valley and penang only.

The properties in prime area is way too expensive for most young generation nowaday..
What will be the secondary/upcoming area that is still affordable and has room of growth?
Any suggestion? My husband works in PJ and myself in KL...
We both prefer freehold landed not exceed 400k...

If the extended Putra LRT is coming, USJ and Puchong will be benefited.. But the big question mark here is .. coming?

Cheras Leisure Mall LRT was planned since the 1st/2nd phase which was when? in the 90s?....until now bayang pun tak nampak......slowly wait...

This post has been edited by mIssfROGY: Apr 6 2010, 10:02 PM

Only one word to describe article below:- SIAU

http://starproperty.my/PropertyScene/PropertyScene/3709/0/0


Guess many Mont Kiara / KLCC buyers hope the same happen here.

May your hope comes true....in Najibonomy

This post has been edited by Bobby C: Apr 7 2010, 06:07 PM

price for double story terrace house at bandar baru bangi/ kajang

property : freehold
size: 20x70
build up: 1800 sqf

2008 : RM 230k (first launch)
2009 : RM 280k ( under construction, 50% complete)
2010 : RM 325k (complete 100% with CF/CCC)

us mortgage rate going up 0.3%, government want investor move their $ into market share. estimate will increase to 6% by early next year.
any news that saying malaysia will increase brl in future, after the increase of 0.25%.

http://hosted.ap.org/dynamic/stories/U/US_...EMPLATE=DEFAULT

There is nothing that supports US RE is going anywhere but down.

55M Mortgages in US today
8M Mortgages 90 days behind (98% will foreclose)
12M Mortgages Underwater (85%+ will foreclose)

Values now to 2003 levels
Transactions same as 2000 level

RE investors are begining to buy only locational opps = good rental returns but bottom is about 10%-15% more down if you are looking to buy.

Major asset purchases have fallen off a cliff (ie. RE purchases)

Commercial RE over a TRILLION have been put on 3-5 terms that just wont be able to renew.

It doesnt matter how low RE goes, it’s the cost of servicing the debt that will make the difference. You cannot do so in high income and property tax destinations.

You cannot do so if you loose your job or take a pay cut moving forward. Your jobs are going offshore forever!

There is NO BOTTOM IN RE until unemployment hits 4-5%. There is NO BOTTOM IN RE until interest rates reach 5-7%.

Look to the US for further bad news and limited imports to hurt Malaysia along with the other western destinations. Look to a revisit or double dip OR longer muddle through where the pain is prolonged for 8-10 years.

Look for some correction in Malaysia also from pending RE bubble in CHINA.

This is not major but minor by global standards including depressed RE values with every point of interest rate rises.

Be grateful you live in Malaysia though where the cost of living is one of the lowest in the world, unemployment reasonable, lifestyle very good and a growing consumer along with all SE Asian destinations.

A double-story link house in Bangsar cost Rm300K 20 years ago.