value drop 50%? highly unlikely....unless those super luxury condo which are speculated deeply...then no commen

interesting theory about the Global Reset. But I always thought that, houses are still considerably affordable in KV area.

See, if you earn 2k/month, then you stay apartment first lar...who told you to stay landed?

And if you earn 5k, then stay condominium la or buy leasehold...sub-sale lar...nobody want u to stay new development also...

and if you earn 10k, finally 500k sounds reasonable isn't it?

The point is, there's always choice out there in KV. We have land, but in prime area the land is very very scarce, that is where the "premium" price come from...

Those new development where developer set sky-high price...that one I really think got speculated a bit...

just my worthless 2 cents...

you are talking about prime area aren't you.

Cheras Mahkota, 22x75 double storey = 300k

Urbanization process is like that, when the city developing, prime area will go up to make space for middle to upper class.

new comer? stay in condo, or real estate further away...
That's reality

That's right. But one thing I discover by researching properties is that, nowadays standard size single storey (22x70 above) cost more than double storey 18x65....
not sure why...maybe 18x65 really look sempit?

And also single storey in prime area isn't cheap either, Taman Tun 500k for intermediate, Bangsar 700-800k for intermeddiate....
I guess nowadays ppl tend to compare single storey to new condo development, when the condo price is high, single storey follows....
of cz I meant those FREEHOLD magic word one

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Added on August 13, 2010, 11:12 pmwell said buddy, but in your opinion, is this correction going to affect matured area landed property as well? not taman tun and bangsar those sky high price, I am talking about places like Taman Desa, OUG which the price escalate quite steadily...

This post has been edited by surf-it: Aug 13 2010, 11:12 PM

Most of the rental of landed properties already cannot cover the mortgage, is that normal?

Hi bro kelvin, do you mind sharing the link which stated this Government intention?

I agree 80% is a double edge sword, at the same time of curbing investor (well, the cash rich one is still unaffected), it will heavily impact own stay buyer, especially fresh graduates, how can they fork out that much of cash? So asking/borrowing from parents will be the only way...

Last time not many "graduates", now Every youngster in the midvalley are "graduate"...so Graduate = Citizen...

There are plentiful of houses below 300k (Sub-sale). with the 40 years loan accessibility, one month still lesser than RM1k? Why is houses not affordable in Klang valley? Of cz, the only thing u have to sacrifice is...."The Distance + Jam"

In most of the prime areas, the house price is supported by the strong demand.....not all areas though I agree, some area of cz got fry a bit....

You haven't mentioned about Penang? And how do you benchmark against 13 times income? using what salary? which property? What about an apartment unit rather other landed?

I would say the market for property is still considered not worst yet. Although there are speculation around, but hey what you earn is what you get.

3k earner - get a 200k apartment
combined 2 x 3k earner - now you are eligible for 300-400k landed

Isn't that bad right? Of cz 300-400k you can't stay in prime area, we are talking about sub-sales in suburban.

with the extended loan period 40 years, 500k loan is now RM1.8k per month. Let say young couple working together, one person 2.5k. Two person got 5k, then can afford it. Abit tight, but it is possible...

Klang Valley is not running out of land, but is running out of PRIME land. open up google map, tell me how many more terraces/things you build around bangsar/ttdi/ss2/oug ?

Of course, I have to agree that in some satellite areas of KL, such as kajang, kampung subang...etc now selling 500k for a d/s intermeddiate terrace is abit unacceptable.

btw, comparing seremban and kl is obviously not a fair comparison. we are talking about why other areas surrounding the New York City is much cheaper than New York city....

Because it is a City, and KL is a capital of the country where majority of the economic activities happen.
Hope that make sense, and no offence!

160k for sst is considered as SUPERB cheap in KL..haha..

Good & valid point. Instead of complaining about the price, look for the best financing option with the balance of affordable monthly commitment.

Come on, if KL price is expensive, go to Kajang, Cheras Batu 9, Klang, Far-east Puchong. You still can get DSL at 250-300k.
Nobody can stop the process of urbanisation....

worth only 0.02$

If you don't mind single storey, I believe you still can get decent one below 500k.

[quote=chabalang,Jan 9 2011, 10:31 AM]
[/quote]
Basically, inflation factor is the one driving properties price currently.

Cash rich person fear cash losing value, find hard asset to invest to protect their wealth.

People see inflation, automatically expect everything price goes up, including properties, so speculate, buy.

Developers see inflation, time to jack up price.

A house loan of 100K become lesser than 100K in an inflaton situation <-- get what I mean.

It is all because money become smaller.

[/quote]
Well said, cherroy. Two key drivers of current property prices: (i) low interest rate (a friend commented that it's a sin not to take house mortgage with such cheap REAL interest rate) and expectations that the interest rate situation will remain benign (no doubt, Asia is having strong growth and some countries are likely to increase interest rates to deal with inflationary pressures, particularly from FOOD/commodities. But the interest rate increase will be relatively mild (a few %), use of currency appreciation is more likely to fend inflation as a huge spike in interest will undermine growth and remember US/Europe are stuck in doldrums ; and (ii) inflationary pressure. In Malaysia, construction and renovation costs have been going UP. With removal of subsidies and large infrastructure projects in the pipeline, you can imagine the inflationary pressure on building materials. Just to give an example, during my house renovation (in 2010) - the prices of cement, sand, paint and steel were increased not once but several times.

Not withstanding the above, I have to admit that some properties are "bubblish" - don't wish to name and identify location (I may be wrong to name - I laughed at my friend who bought a link house for RM1 mln in 2009 at a "not prime location" - to me, prime location is Damansara Heights and Bangsar, now this friend is laughing at me because the last transacted price in that area is RM1.5 mln). IMHO, some of the new launches are priced at ridiculous levels - close to a million for a link house in location more than 15 kilometres from KL!

After reading/following this thread for a few days, more of the forumers are hoping for the price to drop (probably the forumers are younger and more likely to buy their first house). YES, landed properties prices in good areas are becoming prohibitive for the younger generation. To me, it's simple demand and supply. Land supply in good areas will remain SAME but the demand is getting stronger with population growth and top 10%-20% population earning higher Real income. In contrast, high-rise properties price appreciation has not been as steep or even stagnated in certain locations - but in M'sia, high-rise are normally poorly maintained - a lot of them are in quite sad conditions after 10 years.

Anyway, asset inflation (house price increase) in a growing country is a normal thing but it must be in tandem with income level, employment level, mortgage affordability/accessibility and etc. This round of increase is mainly driven by (i) cheap interest rate - mortgage affordability and (ii) inflationary expectations. No doubt, we did see landed properties prices in better locations rocketed away since 2H2009 and it is fast becoming out of reach of the mass population. There are still a lot of properties (albeit high-rise) in the 250,000 to 500,000 band but there may not be in your preferred location. If you look at JPPH report in 1H2010, only 2.1% and 6.9% of the residential properties sold in Malaysia are above RM1 mln and RM500,000 respectively - likely to be concentrated in KV and Penang.

As for those wishing for a price crash so that you can buy your dream house, please bear in mind - if properties price do crash, what caused it? Likely to be economic depression, etc. -> means your JOB is at stake, your income is uncertain and Banks will be recalling loans rather lending. Unless you are sitting on a pile of cash, can you still afford the house after 50% discount? (this is what is currently happening in some parts of US). Yes, I get flamed for making the above comment but I just want fellow forumers to be realistic.

To end, I wish to state I am not a property speculator hoping for house prices to increase. In fact, a drop in property prices will be good for me - I get to buy properties cheap. BUT I have to be pragmatic on the whole situation - IMHO, unless the whole world goes into another deep recession, interest rate increases significantly or political/social upheaval in M'sia (anything is possible), properties prices in KV will continue its uptrend in 2011 (at lower rate than 2H2009 and 2010 because of a higher base). I am NOT asking people to jump into properties and I do believe the prices are definitely NOT cheap or even "bubblish" in certain areas/projects. But we need to be more aware and realistic of how the markets work and do not get suckered...

[/quote]

+1 well said.

haha, like +1. This is something I have observed as well, ppl bidding like no tomorrow to a point that auction property is not really "below market price" anymore...aiyoo aunty uncle....

Example.

BK5:
2006 - 350k
2011 - 500k

I didn't know our income level/inflation raised by 50k a year....
Sad...