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?

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

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

Understand from recent news landed property rises 15-20% within this 1 yr. My oh my, what's happening here?!?!?! Experts /sifus / gurus all wrong.

Pelangi Utama 360/sqft!!! My oh my, compare to Riana Green only around 280/sqft. What's happening? Looks like speculators are stirring the market. Recession / inflation / deflation / depression what else, more like halocination ...

Heard a number of oversea students there not too co-operative noisy at night.

Anyway, crying over spill milk, know it was good location, visited the showroom, $190k tat time, just need one signature and close deal. How cum my pen no ink leh #$%

I been to both and still dont understand why?

Mind to elaborate a bit. Thks.

Still reading thru 30+ pages trying to understand millionaires mind. Wow, better than any books. Doshi Milan, give be back my $$. Read thru 30% of ur book too common sense lah.

Some bought up very good point abt US market uncertainty and stuffs. Would say you are right IF you are in Spore. Check out SGX index and compare with DOW, almost identical. Spore market is very volatile, US sneeze the whole country having nightmare next day.

Malaysia market??? All too busy with politics at d moment. Hantam one another. Globalization, apa tu? Who cares? Which ministers ever mentioned abt globalisation? May be Najib slightly smarter start waking up the rest. Tat why we never really recovered since 1997.

There was a global boom before 2008 Olympic games, every where hot. Malaysian market both property and stock, never feel much. Then last yr, US morgage crunch, everyone here seem having plenty of cash waiting to dive ... betul tak... base on quite a number of feedback from friends. Recession, what's tat? You know as chinese saying, danger comes opportunities. Oh best opportunity, once a life time, dont waste ... tats the feedback i got. Believe people here generally are still quite thrifty or stingy, not sure the younger ones, cp to our neighbouring country Spore. Fresh grads in SG generally kiasu kiasi kiabor load upto max loans, reno homes, buy cars ... exactly like the Money Not Enough 1 show and work for the banks for the rest of their life. When recession comes, all in deep ...

Yup KV still got plenty of land. On condition if you dont mind to pay tolls of course. Good locations with schools, highways, shopping centres, public transports just around the corner getting harder to come by each day.

Still reading thru history trying to understand the sentiment and 'foresee' the future if possible.

One of the dream condo Bukit Utama less than a yr ago 630k+, tot crazy price. Original like 400k+. Woke up one morning and found out my my 750k+ already! What's happening actually?!

Pai Sifu, still waiting for your answer leh. Hiding some tricks under the sleeves

Ok, got ur point. But compare the residents, landscaping, parking spots ... 2 different world leh. Tat's the case, those dev that have to go thru the D'sara toll lagi worst lor.

What's ur view of this new glomec project near ttdi? Too near to cemetry? Location looks promising except the cemi.

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Added on May 7, 2010, 6:46 pmGood point

Those who read too much news about volatility around the world esp US / Europe should not forget you are living in Msia when debt to GDP as someone mentioned is 30%. Jap 225%. US 100% something like tat. Meaning Msians generally still not over exposed. Not forgetting, with flex plans offer now, property can be as liquid as you like for short to mid term usage to smoothern any spike. Unlike those funds / stocks, up or down manipulated by the fund managers or unscrupulous management team esp in the US. Bail outs still getting heafty bonus .

This post has been edited by Bobby C: May 7 2010, 06:51 PM

Yesterday, black Friday due to DOW overnight plunged. Blood path everywhere HK, Tokyo, SGX ... KLCI, up 1.02 point

KLCI in its own world, or put it this way. Investors here still not too sophisticated, knowing too much, reacting too fast and follow sentiment, emotion, nightmares.

Yes, we will suffer during global crisis. Question is how serious, how long we can withstand. Believe conservative middle class will ride thru the storms. Those over exposed are the ones need to calculate every moves, everyday. When those over-exposed got into trouble, conservative middle class will come in the wallup at bargain price. Learn from YTL and Spore gomen.

Property is for long term, foundation like civil gound work(piling) being built everyday/month when you pay your loan. Unlike equity, high PE ratio, over value, over rated, over speculated, shorting, no fundamental to support price ect. Tat's the cause of global crunch. In fact it is good, to get rid of bad apples.

Look at HK, before 1997 handover to China, everyone talks about doom and gloom esp the rich ones. Cabut migrating to Ca, Oz. Aft all go back to own mother land wat.

Spore, remember mid 80' when still kid, stayed there few wks. Everyone talks abt doom and gloom and migration to Oz etc. Condo in Orchard if memory right heard the adults said <S$200k or ~S$150. Now?

Pai is right, go for property with strong fundamental.

Unless 1937 happens again, we might not be as bad as some predicts. Check it out, those that predict doom and gloom are the one waiting for property to fall. What is tat saying? Even if doom and gloom, people are reinvesting to support the bottom wat ... same like Sg, HK, aft migrating come back to motherland one day, whether you or you sons & daughters. Unless this place turn into Somalia by the politicians or gomen one day, then thing might be different.

Waaa, ttdi single storey now $600k, madness. 5 yrs ago one new dev 2 sty link at tropicana $400k+. Too bad lah not enough bullets. Or not enough bull guts like future traders

pheww, finish reading 30+ pages. Tats wat my little understanding.

This post has been edited by Bobby C: May 8 2010, 10:41 AM

Friend of mine bought one property at ss2 last yr ~$800k, aft 5 mths people offered him $1.3M. Who says old properties no value.

Global crisis? Yes, but life still goes on.

Unless the whole nation goes into doom mode whereby everyone hiding in own cocoon, unemployment at >20%, may be then doom will happen. But with population growth, your assets/saving/investment growing, would properties free fall in the coming 1-2 yrs?

Emm, may 2012 will be dooms day, according some prophets of doom. That’s doesn't really matter anyway, whether you earn hefty on shares, properties all will be doomed anyway, so go enjoy while you can .

If can find shoplot with this price is ss2, may be 1998 when market crash to rock bottom, even tat dont think can find. If not mistaken ~900k.

Cant disclose much, since first I also dont know the actual location. 2nd people might say I stir market. But but I also miss the boat leh.

Anyway, to confirm ur own, do check yesterday Star, OPR might rise 25pt due to too much speculation. Check it out. It is not LY sentiment, it is not some forumers sentiment, it is market sentiment.



One thing abt characteristic of my old friend, very humble and down to earth type. Driving old local made car, makan at kopitiam, stay in single storey old house. No glamour flashing big car rolex etc. Hmmm, seem like a lot of multi millionaires oso like tat one. My kampung millionaires many riding bike or motobike only, what BM or MB for show? Who say need to look rich to be rich . Young generation way to learn. Am not too old though.


This post has been edited by Bobby C: May 12 2010, 02:07 PM

No thanks, Thai too on the rock, so investors 'spill over'.

That's cycle of life, either buyers win or sellers win. Sometimes, win sometimes lose but life goes on.

One party lose, other party will be benefitted from the lossers. Unless buyers refuse to sell, buyers refuse to buy? How can unless both are dead?

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Added on May 17, 2010, 10:19 amBelieve many having too much cash, like some forumers said, local not many choices, either stocks or properties. Many in view tat stocks too high and with volitility of global market, properties 'safest' option.

I ever see construction boom during 1998/1999 crisis in my hometown. Everyone built built built while market all red So time to enter stock

This post has been edited by Bobby C: May 17 2010, 10:19 AM

Has anyone seen how the bubble POP in Dubai?

Those mansions in man made island Palm Jumeirah change hand easily 3-4x and price inflated god knows how many times even before building completed and handed over. Plus the government 5yr projection of population growth by 2x to inflate the property bubble causing it to burst finally. We saw it coming just wonder when.

We can see similar scenario in China. When my china relative was here 4 yrs ago, he already said Shanghai property inflated double in a short span of 2 yrs! Wonder how many times has the market inflated by now?

Anyway, back to Malaysia, have we seen similar scenario here? I don't think so. May be in certain place inflated >2x like Desa Park. Other than that where else?

Yes, when China & US badly hit, everyone will feel it. Unless massive retrenchment follows by unemployment, don't expect property to nose dive. Yes, there will have some hick up, some bumps, don't foresee bubble if any.

Bubble in KLCC burst 2 yrs ago, even that understand worst sold 30% below market rate.

Question:- would the bubble burst twice esp in KLCC?

That will be good opportunity for many. But seem there are many like you waiting for the bubble to burst meaning you are in fact capable to sustain further drop.

So you are in fact answering your own question.

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Added on July 23, 2010, 11:16 amEither condo or landed both have their own advantages and disadvantages, all depend on how it suits your strategy and plan.

Nowadays for renting you have to be particular with the location. Condo easier to rent with higher return cp landed. 30-40 yrs down the road good location potential en-bloc sale, like in Spore.

Landed long term only the land valuable not the building cause building design probably outdated. Come to think abt it, why dont we buy empty land then if no plan to stay. That will be much better than many other unit trust, shares, bonds, investment plans or retirement funds can offer. Of course buy the right location if you can.

Understand Desa Park developer bought the land in early 90' for $10/sqft. Now??!!

This post has been edited by Bobby C: Jul 23 2010, 11:24 AM

Old news but think still relevant. This is what the experts got to say.

Property price increases to moderate as higher BLR kicks in
The Edge, Written by Lim Siew May
Tuesday, 01 June 2010

KUALA LUMPUR: In mid-May, Bank Negara Malaysia (BNM) revised its key Overnight Policy Rate (OPR) by another 25 basis points, following a rate hike by the same quantum earlier this year.
Shortly after that, most banks revised their Base Lending Rate (BLR) accordingly to 6.05%. After a total interest rate hike of 50 basis points since the start of 2010, has this had any impact on the country’s property market and mortgage lending activities?
Mortgage Broker Sdn Bhd sales director Adrian Un sees no immediate impact on mortgage lending activities. This is because the effective interest rate is still hovering around 4% to 4.2%, making the borrowing cost still relatively cheap, he said. “Purchasers are still flocking to developers’ sales officers, and are dealing with various real estate agents,” he said.
According to Liew Swee Lin, executive vice-president, head of consumer banking of Alliance Bank Bhd, the recent BLR increase of 0.25% is considered marginal. “This translates to a 2% to 3% increase in monthly loan commitments which we deem to be within the tolerance of the homeowner. Consequently, we would neither expect any significant impact on mortgage lending activities nor have we observed any since the revision,” she said.
Property consultant James Tan of Raine & Horne International Zaki + Partners shares a similar view. “The increase in the BLR and OPR has had no effect at all on the property market. In fact, there has been an increase in prices,” he noted. Tan foresees that rising interest rate will only have an impact on property market when banks increase the spread to more than 2% to 3%, or when the BLR hits more than 7% to 8%.
However, are the rapidly rising prices sustaintable?
Group chief economist of RAM Holdings Dr Yeah Kim Leng said the spillover of escalating prices in high-end, niche segments to the broader housing market, especially the terraced and mid-range condominiums in urban areas, is a concern.
“We note that it is hard to agree on what constitutes a bubble, but clearly, double-digit price increases are unsustainable, especially if the price escalation is fuelled by excessive price mark-ups, speculative purchases, over-leveraging and easy credit conditions,” he said.
Meanwhile, Liew said the latest House Price Index (HPI) statistics released by Napic (Department of Valuation & Property Services) indicated an increase of only 1.5% for 2009, and 4.7% in 2008, which suggests that the sector was not heading towards a bubble.
But property consultant Tan said it was essential to get back to the fundamentals. “Incomes have not kept up with property prices at all. Prices have shot up across the board of more than 20% to 30% over the past one year. Yields are dropping drastically. The net return on shophouses tended to fetch around 6% to 7%, but it is less than 5% now,” he noted.
That said, Yeah reckoned that the local housing market has not reached the “bubble-like” state seen in other Asian countries such as China, Singapore and Hong Kong. Yeah predicted the recent acceleration in property prices and mortgage lending to moderate as the effects of higher OPR and BLR kick in.
“Higher lending rates have the effect of dampening speculative buying as well as overall demand as borrowing costs edge up,” he said, while predicting that genuine home buyers will be less pressured to rush their purchase decisions with the gradual dampening of rising house price expectations.
According to him, potential oversupply in a number of property segments, including in hot areas such as Klang Valley, together with the gradual pace of credit tightening and declining affordability, should help to dampen price run-ups.
These should help prevent a full-blown bubble from developing and subsequently collapsing, as experienced recently in the US and European property markets, concluded Yeah.
Nonetheless, Yeah doesn’t expect home sales to fall off sharply as lending rates have not peaked. “There will be buyers, especially owner-occupied ones, who are looking to lock in the low interest rates before they are raised.”



Layman point of view, think there are still some ping pong ball size bubbles developing esp newly launch developments. Few 'Mini Mont Kiara' forming in some not so prime area but asking for Mont Kiara price. Yup, potential some small bubbles popping, not full blow bubble.

Why? Say an established >5yr old developments where most owners have easily paid >30-40% of the loan amount, you think they will be so desperate to sell? Yes, when they get retrenched. Even that just refinance and drag loan till retirement or cucu-cicit.

Whereas new development main speculators rushing in with less than 10% down payment. Not prime area but asking for prime price, yes, bubble will burst when developer asking for full payment during completion and you cannot get the expected rental return. But completion time of each development is different so you will hear mini popping sound over couple of months, not a sudden BIG POP which will affect entire market sentiment ... that considering worst case scenario when economy downturn in the coming future as many expected.

Well established area? Nope, wouldn't be as bad as you are hoping for.

If and only if you can trade properties like you trade stocks, then you can expect such volatility of 50% drop.

And if that ever happen, you can guarantee to see worse blood path in the history of KLCI, red hot chill pepper that you never seen in the Malaysia Book of Record!

This post has been edited by Bobby C: Jul 30 2010, 07:01 PM

You do have some points. Just for discussion sake, like to raise 2 questions trying to understand your thoughts.

1. Say double dip recession really hit us, total collapse in the properties and stocks market. Properties down by 50%. Blue chips will be easily down >70-80% or more. Would you acquire property or shares? In the late 90' recession, interest rate risen >10%. With piles of cash or rather gold bars in hand what would you do?

2. Many believe in real gold bar during recession. Question:- what can you do with real gold bar during recession? Migrate? Or stay put? Probably it will be helpful if planning for sudden exit from the country. But if like many Malaysians who have no where to go, what are you going to do with gold bars? With current gold price at historical high, no interest earn and you can't eat gold for a living, isn't better to acquire farm land? As you said, with farm land at least you can be self sustainable.

You do have a point on average salary vs property price. That applies to new properties where almost all developers asking for ridiculous price and many are rushing to snap up before even launch. That's what we call madness

This post has been edited by Bobby C: Aug 6 2010, 05:42 PM

Or should we say:-

Those who expect property drop = buyers
Those expect property increase = sellers

Anything in between = agents

When I recommended my family members to buy Mutiara Rini condo 5yrs ago, remember 2 wk after launched then only they went for viewing and bought an average one and there are many units available at the highrise. Highrise unit hanging there for many mths, asking 251psf.

Understand the recently launch of their 2nd condo snapped up within a day (non bumi ones), price like >600psf. Wow, mad world out here.

Don't be dismay. Don't rush and follow blindly. New ones many are over inflated. Check out some older ones. Point to look out:- maintenance, landscaping, guards(security), how active is the residence association, neighbor, even % who default maintenance fees ... still can find some reasonable ones where price hasn't inflated so much below 300k. Of course not landed.

End of the day, it is all about financial prudence.

Think a lot of people missing the point.

If you cannot afford it, don't buy it simple as that.

Unaffordable meaning if you loss your job next day you will lose you home. Or 1/3 of salary as a guide.

It is a trend that young graduates load themselves with loans aft few yrs of work and work for the banks for the rest of their life in Spore, Msia is catching fast. Many been con by the banks with easy loans.

Spending half million for own stay which you can barely afford is different from spending less for own stay and invest the rest either in property, stocks or business. Many prefer the formal than latter.

Similarly heard stories like driving bm or merz but can't find money to pump at the petrol kiosks. Or another extreme millionaires on bikes/old junks in small towns.

Short term gratification/showing off is better than long term plan. That's why never judge a man/woman from the car he drive, house he stay or shirt he wears.

What for being a millionaire but loaded with millions of debts? Worst, cant even to donate few cents to schools/society/charity.

Ok, stop preaching go back to property.