Nobody is sure whether the price will drop or not
Will be happy if the price drop as we will get a chance to buy better properties at a cheaper price

This post has been edited by muscaa: Jul 14 2008, 10:51 PM

yeah it depends on the location and developer as well
Developers like IOI, YTL charge you more for their houses/properties
Also noted that most of the properties advertised in newspaper are lousy one lah. Very far away from the city

A lot of people will advise you to buy a cheaper property eg. apartment/condo 1st if you cannot afford landed properties. I think it's still better than paying rental monthly.

But bad news for those investors/properties owner, be prepared for bad tenants who never pay you rental during recessions

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Added on July 30, 2008, 8:17 amI should say the condition in USA is different from malaysia. They way they released loan is questionable compared to the banks here. So they ended up with a lot of bad debts.

This post has been edited by muscaa: Jul 30 2008, 08:17 AM

yeah, i can sense the big bubble is going to burst especially those apartment/condo nearby KLCC. If recession starts, i wonder how many of those so called highly paid executives will stay&work in msia.

we are having recession ever since the fuel price increase to RM2.70. With the inflation rate of 7.7% (my God, didnt our govt always say we have a low inflation rate of <4%?) and probably political instability, the share market is going down very soon.

yeah investors will be shy away from msia market/properties
Time to pick up some cheap shares or properties

You are too optimistic dude, so do you think that the KLCI will go up to 2500-3000? Or the properties eg 2 storey terrace in KL will shoot up to RM1mil?

Not far away by definition (in fact there is no exact definition for recession)
check this:

A recession may involve simultaneous declines in coincident measures of overall economic activity such as employment, investment, and corporate profits. Recessions may be associated with falling prices (deflation), or, alternatively, sharply rising prices (inflation) in a process known as stagflation. A severe or long recession is referred to as an economic depression. Although the distinction between a recession and a depression is not clearly defined, it is often said that a decline in GDP of more than 10% constitutes a depression. A devastating breakdown of an economy (essentially, a severe depression, or hyperinflation, depending on the circumstances) is called economic collapse.

Sound familiar to our economic, except the so called GDP (frankly i cant trust the GDP, it is going up every year according to the Govt figures, but if you compare our GDP with Singapore or Korea, it makes me feel depressed again)

Big deal lah, my pocket money is shrinking badly everyday

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Added on August 2, 2008, 3:25 pmjohnsonm has the answer for you, how can you trust the govt official figures on employment, investment and corporate profit?

Anyway a lot of people are doubtful about the property price in malaysia, soon or later the properties problem in USA/UK will end up here, but i think the severity is probably not as severe as in USA

This post has been edited by muscaa: Aug 2 2008, 03:29 PM

so rich man got 2 cars & staying in flat??

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Added on August 4, 2008, 8:02 amCan tell us which bank give free car? We all wanna join that bank Better if can get free petrol too

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Added on August 4, 2008, 8:10 amPai,

good comment but you are really in your own world

Just read the latest news in the star today

Malacca Building Contractors' Association chairman Liw Chong Liong said the current crisis was even worse than the last recession.
“Previously, we had recession. Now it's stagflation."

Read another news about car sales in the star

"THE motor vehicle sector is bracing for tougher times as demand for cars and commercial vehicles may falter on concerns over high inflation and weak economic growth."

Motor vehicle sales trend are monitored closely as a gauge for consumer spending.

RHB Research Institute, in an update on the motor sector last week, said consumers would likely hold back big-ticket purchases, including new cars, amid increased inflationary pressure.

A car is probably the second most expensive purchase for most households in the country after home mortgage.

The consumer sentiment index tracked by Malaysian Institute of Economic Research (MIER) plunged to an all-time low in the second quarter after the Government in early June raised petrol and diesel prices by 41% and 63% respectively.

Rising grocery bills and steeper petrol prices, coupled with weak stock market and stagnant wages, had, for most people, translate into lower disposable income.

This post has been edited by muscaa: Aug 4 2008, 08:17 AM

yeah some people here still wasting their time arguing about the definition of recession lah slow down lah and all kind of bullsh*t, still think that he's the most qualified person to define those economic terms & presume others are idiots in economy. A lot of layman dont even bother what the hell is recession. They just want to know how well their income can survive the recent waves of inflation, if not, for them it is as bad as recession.

you can always 'high' or 'syiok' on your own o and you cant come out with any evidence to support your so called good prospect no recession future of the property price either

This post has been edited by muscaa: Aug 4 2008, 10:07 PM

It's ok, nobody will give a damn whether you reply or not

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Added on August 5, 2008, 3:16 pmThanks for your advice Lok

This post has been edited by muscaa: Aug 5 2008, 03:16 PM

People will be shouting on you for this word "recession", better dont use it

suddenly we have so many "uncles" "experts" "kids" here arguing about recession slowdown

Actually increase more than that figure(from 2006 till 2008)

Garden D
before: RM398k
after: RM498k

Garden E:
before: RM438k
after: RM520k

Hope it is not bubble

This post has been edited by muscaa: Aug 8 2008, 09:21 PM

haha...
the airasia nuts dont like people talk about the recession.. he is confident that the economic growth will be same as our inflation rate 8.5% (July CPI)

Damper for property

The Star
Tuesday September 2, 2008

By DAVID TAN

Possible BLR hike to negatively impact market

PENANG: The property market in the country may not be sustainable for long due to the possibility of an increase in the base lending interest rates.

KPMG partner Ooi Kok Seng said the low interest rates had been maintained for the past five years for housing loans, which were very attractive as they were 0% to 2% below the base lending rate, which was about 6%.

“Since the capital market has been sluggish and bank interest low, many people have invested in properties instead.
ooi Kok Seng

“Thus, any adjustment in the interest rates by Bank Negara to curb inflation may negatively impact the property market as there would be forced selling of properties,” he told StarBiz.

Ooi was giving his views at The Star Property and Home Fair Penang 2008 roundtable discussion in Penang recently. The three-day exhibition from Sept 5 will be held at the Penang International Sports Arena.

Another participant at the roundtable discussion, Dr Lim Mah Hui, said the factors preceding a banking and financial crisis usually involved too much money flowing into the system either from foreign investors or due to the central bank’s policy of being too loose.

“This invariably leads to two types of bubble. The first is the property bubble while the other concerns the stock. It has happened in the past and it’s happening today. The cost of cleaning up a banking crisis is enormous. Developers should not just build and build to make more money.

“Thus, it’s okay to take into account that we should not overdevelop. The current loan margin of 70% is fine. If one does not have money, then one shouldn’t be buying property,” he said.

Lim is a senior fellow attached to the Asian Public Intellectuals fellowship.

Meanwhile, Joint Business Council Malaysia chairman Datuk Faudzi Naim was more optimistic.

“I believe property prices in Penang will hit RM750 to RM1,000 per sq ft by 2010. This is because there are foreign investors who are interested in Penang due to its positioning as a hub for education and medical services.

“Last year I helped out in promoting Penang properties in Medan. Within a year, investors from northern Sumatra came over and bought properties worth RM30mil to RM40mil.

“These investors always compare Penang with Singapore as a choice destination for second homes,” he said.

However, Faudzi said developers must now also provide high quality professional management services for high-rise properties.

“Foreign house buyers want professional management services to look after their investments when they are away. The Government must also, of course, beef up the local security situation, and improve on the hygiene and traffic conditions,” he said.

Faudzi also said the state government should stop making developers build affordable housing.

“When developers fulfill their affordable housing obligation, they have to cross-subsidise from their other projects. This inevitably leads to the high selling prices of the properties in the non-affordable category.”

He sad the state government should look into redeveloping certain districts on the mainland as growth centres and as an area for affordable housing.

Another participant Tropical Resort Lifestyle Sdn Bhd managing director Ishihara Shotaro said Penang had to stop advertising and promoting itself as an island resort with nice beaches.

“The waters are dirty. This has started to have an impact on tourist arrivals from Japan and Korea.

“Singapore and Hong Kong don’t promote themselves as island with nice beaches, so tourists also do not have such expectation when they visit Singapore or Hong Kong,” he said.

“But Penang does and this leaves the tourists going home disappointed.”

Sounds like we are heading to recession??

Bailout bill defeat could cause painful recession

http://news.yahoo.com/s/ap/20080930/ap_on_bi_ge/no_deal_economy

By JEANNINE AVERSA, AP

Sept 30, 2008

WASHINGTON - The fallout from the vote against a bailout package for the U.S. financial system may well be lasting pain for the economy.

The House's stunning defeat of a $700 billion package urgently championed by President Bush, sent shock waves through Capitol Hill, the trading floors on Wall Street and the Oval Office on Monday.

"An economic 9/11," warned Terry Connelly, dean of Golden Gate University's Ageno School of Business, of the potential fallout. As the package went down, panicked investors caused the Dow Jones industrials to nosedive nearly 780 points in their largest one-day point drop ever. Markets across Asia fell sharply Tuesday in the wake of the Wall Street downdraft.

Lawmakers defeated the legislation by a 228-205 vote, although Democratic and Republicans leaders and Treasury Secretary Henry Paulson all pledged to keep working for a package acceptable to all sides.

In the meantime, the economic wreckage that the administration and Congress have warned about — rising unemployment, shrinking nest eggs and prolonged recession — might not happen immediately, but that doesn't mean it won't happen at all.

"This is like the advice you get from the doctor who says you should quit smoking," said Robert Brusca, chief economist at Fact and Opinion Economics in New York. "You know he's right. But if you don't, you're not going to die tomorrow and you're not going to die next week. But at some time, it's probably going to get you."

For now, Treasury was expected to work with other government agencies, including the Federal Reserve and the Federal Deposit Insurance Corp., to deal with problems on a case-by-case basis.

"Our tool kit is substantial but insufficient" without a bailout, Paulson warned.

There are some steps the Federal Reserve can take to cushion damage from the worst credit crisis since the Great Depression.

The Fed, which has been providing billions in short-term loans to help banks overcome credit stresses, could keep expanding those loans in an effort to spur financial institutions to lend more freely again. And, it could keep working with other central banks to inject billions into troubled financial markets overseas.

Also, the Fed could make it easier for banks and investment firms to draw emergency loans from the central bank by expanding the type of collateral they pledge to back those loans.

And, if the credit crisis were to turn even worse, the Fed also has the power in extreme circumstances to expand emergency lending to other types of companies and even to individuals if they are unable to secure adequate credit from other banking institutions.

The Fed also could do an about-face and start cutting its key interest rate again. The Fed in June halted an aggressive rate-cutting campaign and has kept its key rate since at 2 percent.

While some Fed officials doubt that another rate reduction would do much to boost confidence and persuade banks to begin lending again, Brian Bethune, economist at Global Insight, insists a deep cut would pack a powerful punch. It would lower the prime lending rate, now at 5 percent, that serves as a benchmark for credit card rates and many other types of loans.

Even if the bailout were enacted by Congress and actually worked, many predicted the economy will probably shrink in the final quarter of this year and in the first quarter of next year, meeting the classic definition of a recession. If Congress doesn't act, analysts, who were scrambling to downgrade their economic forecasts, believe those contractions will be deeper.

The unemployment rate — now at a five-year high of 6.1 percent — is expected to hit 7 or 7.5 percent by late 2009, which would be the highest since after the 1990-91 recession. Some economists say the jobless rate could rise even more.

"Undoubtedly, both businesses and consumers will run for cover. They will clam up," said economist Ken Mayland, president of ClearView Economics. "The snowball hitting the economy will pick up speed and gather mass."

More banks could fail, too. In the second quarter that ended in June, the Federal Deposit Insurance Corp. estimated 117 banks and thrifts were in trouble, the most since 2003. The threat of more banks failing in the U.S. and abroad forced the government to act swiftly.

The tanking stock market and falling home values — the single-biggest assets for most Americans — have taken big bites out of people's wealth and their retirement accounts even as high energy and food prices are shrinking paychecks. Consumers are major shapers of the U.S. economy. If they retrench, the country will go into a tailspin.

The bailout plan was intended to revive jittery and fragile banks on Wall Street and Main Street by buying billions upon billions of their worst mortgage-related assets so that lending, the oxygen of the American economy, would flow freely again.

"People are going to go home and look at their 401(k)'s and not be very happy, and these are not just people from New York, but Iowa and everywhere else. This bill is meant for everyone — not just Wall Street but Main Street," said longtime New York Stock Exchange floor trader Theodore Weisberg.