People who wish prop price to drop = People who don't own a property
People who wish prop price to rise = People who have a property

My general perception is that in Msia, I never heard of people (any class) with no place to stay or cannot afford to rent (unlike Tokyo, Shanghai, HK....). Msia still has plenty of land/living space (at least high land and population ratio) and Msia has the most varieties of places to be sheltered. For those lower income group, one can rent a room or share a room (RM200/m up) either in low/medium cost apts, condos, terrace, etc. One even can stay in relatives/friends houses (temporary) for free, of coz sleep mattress in the living room lah, don’t challenge this coz I used to do that. In HK/Japan for e.g. u can’t even do that (a family of 5 stays in a 500sf flat) unless u really thick-faced.

In addition, given Msia economy is not as hot a other regions, less FDI, moderate GDP growth, less hot money, less speculators, and the fact that Msia gov has been having a relax land reserve and property market policy, I think prop price is at its peak now. Of coz price should have been lower if there were less luxury (reluctantly) developments recently.

Honestly, if you have the cash for down payment now no matter for your 1st or 2nd prop, will u hurry? There are heaps of options, right?

Yeah, why is there always good-buy props (old) but no one take up and over-priced props (new launch) selling like hot cakes?

If you invested in stock markets before, you should know why, property is full of speculations in the capital market, at least in Asia. Smelt some speculations in Msia recently but doubt it will be sustainable.

Normal lah, bukit utama for 750K, i still don't think it's expensive.. It's post-crisis now, too much monies printed, of coz bounced back lah. We in Msia has little options for investment - only property and stocks. EPF can only do withdrawal to buy prop, not gold, not biz venture, not warrants, not oversea prop... all bump into properties mah...sure hike lah..

When property prices soar, everyone buys expectiing prices to soar further...
When property prices drop, everyone waits expecting prices to drop further...
Herd behaviour...

We may be stuck in the middle now dunno economy going up or down...

However property is proven to be a good asset for inflation hedge.

My view is...don't regard property can make you rich overnight....treat it as an asset which preserves your monies....

wankongyew, one of the reasons I can think of - bad maintenance of properties by developer/management causing low trustworthiness to old properties (no use even you have a luxury-renovated unit but the whole project looks like shit). Hence, people tend to bet more on new projects then flip. Unlike properties in Hong Kong, 30-year old flats looks like only 10+ years.

Terrace, old houses, etc (not gated/managed) in Msia have no value at all except the land. Nowadays younger generations (>70s) with upgraded living expectations don't even want to stay there - Bad security, stinky when rubbish trucks pass by, no pedestrian, no facilities, no place for kids to play, gates and doors always locked no different staying in prison, higher maintenance cost, risk of flooding, etc...

1) Don't be influenced by surroundings. No need to compare your portfolios with others.
2) Buy RE when you can afford and don't try to flip with big profits or levergare too much.
3) Buy RE with normal heart. Treat it as a preservation to your monies, think long-term.
4)Work hard but live comfortably, dream a bit but if you are not destined to be rich in your life, invest (educate) in your kids so that they will thrive.

post #620
http://forum.lowyat.net/topic/741185/+600#