Property in Economy Crisis, What will happen to property market?
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 Oct 11 2008, 10:06 AM, updated 18y ago
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#1
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Senior Member
643 posts Joined: Nov 2006 From: Johannesburg  
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Hi Guys,
I am a bit noob on this but hope someone could enlighten me. I am curious to know what would happen to Malaysia Property Market following global economy melt-down. (assuming Msia will suffer the effect following US market soon.) Would the property rise drop? Interest increase? Planning to buy a property soon, just think whether now is the right time. |
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Oct 11 2008, 11:31 AM
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#2
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8,377 posts Joined: Nov 2004
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if economy recessions hiked, everything will be less demand and material price increased... by common sense new property price wont drop... the common issues during recession is on the Bank Negara Malaysia side... the BNM's BLR will increase (current 6.75%) for sure, maybe 8%++ later? and for sure bank wont offer fixed interest rate even again for now... overall only the bank interest will killing you but bank still will reduce the little of interest rate for u during recession, if unlucky that ur company going to fire some staffs to cut cost, u will having big problem that jobless but need to pay house installment...
actually if u wanna to buy a new house, the best may early of this year before petrol hike... quite a lot of house price increased because of petrol, transportation and material... but if u dont mind for old houses, u can get it quite easily during economy recession bcos some investors may loss money that time and selling their house to cover their loss...  |
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Oct 11 2008, 11:44 AM
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#3
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Senior Member
1,523 posts Joined: Dec 2007 From: Puchong... 
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but now material cost already gone down,are we get discounted new housing price too?...dun think so.. |
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Oct 11 2008, 02:23 PM
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#4
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Staff
25,802 posts Joined: Jan 2003 From: Penang
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QUOTE(gkl83 @ Oct 11 2008, 11:31 AM) if economy recessions hiked, everything will be less demand and material price increased... by common sense new property price wont drop... the common issues during recession is on the Bank Negara Malaysia side... the BNM's BLR will increase (current 6.75%) for sure, maybe 8%++ later? and for sure bank wont offer fixed interest rate even again for now... overall only the bank interest will killing you but bank still will reduce the little of interest rate for u during recession, if unlucky that ur company going to fire some staffs to cut cost, u will having big problem that jobless but need to pay house installment... Above really a puzzling statement. actually if u wanna to buy a new house, the best may early of this year before petrol hike... quite a lot of house price increased because of petrol, transportation and material... but if u dont mind for old houses, u can get it quite easily during economy recession bcos some investors may loss money that time and selling their house to cover their loss...   If economy will go into recession, demand will less, with less demand how can materials price being increased? It doesn't make sense. When economy is heading into recession, the only way of interest rate is heading is down, BLR will be reduced as BNM or central banks will reduce the interest rate to spur the economy (that's what happening now globally especially in US). |
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Oct 11 2008, 02:31 PM
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#5
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Staff
25,802 posts Joined: Jan 2003 From: Penang
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QUOTE(hanif444 @ Oct 11 2008, 11:44 AM) but now material cost already gone down,are we get discounted new housing price too?...dun think so.. Unlikely in near term, you need to have significant lesser demand and higher supply that pressure the developer then probably you will get discount for the new house price. Do remember last time round of petrol hike did increase the overall inflation situation quite severely which impact the cost structure in all sector from labour cost, to foods cost which history show those kind of cost structure is non-elastic aka go up, won't come down one. The basic material cost might be coming down, but others cost might not. (even your TNB bill won't come down even though oil price has dropped significantly already). Demand of property won't suddenly died off, demand will match employment situation and economy condition which somehow is a bit lagging indicator. You won't see immediate impact. |
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Oct 11 2008, 03:51 PM
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#6
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9,137 posts Joined: Jun 2007 From: Wouldn't be around much, pls PM other mods.
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QUOTE(toto4d @ Oct 11 2008, 10:06 AM) Hi Guys, What is the purpose of the property you intended to buy?I am a bit noob on this but hope someone could enlighten me. I am curious to know what would happen to Malaysia Property Market following global economy melt-down. (assuming Msia will suffer the effect following US market soon.) Would the property rise drop? Interest increase? Planning to buy a property soon, just think whether now is the right time. A house to stay or investment. I've always mentioned that if it's a house, than the right time would always be when one can afford the house without heading into financial burden. However if it's for investment, than I would still think that the property market currently is still overpriced. When the supply is more than the demand; than you'll see the drop in property market. As currently the price of properties is still based on the surge in demand in the property market. But looking at this down turn, cash is king. So whoever can hold their property will continue holding it. But to those in dire need to dispose their property for cash liquidity, that's the time for property investor to do their huntings. |
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Oct 11 2008, 06:48 PM
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#7
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16 posts Joined: Oct 2008
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I've just booked a Penang island high rise for own stay, and I am now thinking of chicken out. Looking at the falling of world wide share index and Singapore's recession announcement, things really doesn't look good to buy any new property now. Worst thing is that Malaysia government is still confusing of our country's economy status now...
I believe the property price will fall by 10-20% by next year base on the below: 1. Oil price is falling 2. Steel price is dropping 3. Share market drop (people, especially foreign investor to start selling their property to cover losses) 4. Very high possibility of recession BNM is expecting to drop interest rate by 0.5 next year. If that is true, that could help sustaining the property price a bit but I doubt it will help much when people are making huge losses in the share market and lost their job. Unless you are very desperate, I will not advice anyone taking up loan while the property price have tendency to drop. If you're to sign up for any loan, please make sure you have at least 20-30% of cash of the loan amount you've just asked for. In case the property price drop, the finance institute may ask you to fill up the differences with cash. Do think twice, the long awaited property bubble burst may happening within next 6 months. Just my 2 cents... |
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Oct 11 2008, 06:50 PM
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#8
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Senior Member
3,318 posts Joined: Dec 2004 From: 1Malaysia
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QUOTE(toto4d @ Oct 11 2008, 10:06 AM) Planning to buy a property soon, just think whether now is the right time. IMO, now is a good time to buy mid-end segment properties due to :1. Currently its a buyers market, can choose and nego as u wish. 2. Panic selling does happen occasionally due to global stock downturn. I see more bargains in the market today compared to 6 months ago. 3. Financing rate is at its all time low and banks have still have appetite to lend. In US now even the price drop by 50℅, banks refuse to lend. 4. We now have an influx of expats from middle east to increase our expat tenant n buyer pool. 5. Min 70℅ of all future launch will be high end props and it will only make mid-end properties more desirable due to decrease in supply. Just remember to buy below market, and pick the RIGHT location. Myself last week just sealed another acquisition and looking to close another next week, hopefully Caveat : if u have tones of cash and can afford a property without financing help, then u should wait until mid-2009 then only buy. |
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Oct 11 2008, 08:23 PM
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#9
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1,637 posts Joined: Jan 2003 From: Munich , Bangkok, Barcelona , KualaLumpur
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QUOTE(hanif444 @ Oct 11 2008, 11:44 AM) but now material cost already gone down,are we get discounted new housing price too?...dun think so.. material cost alredi gone down but the living cost has gone up due to previous riseso it will stay or go higher |
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Oct 12 2008, 05:49 AM
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160 posts Joined: Jan 2003
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QUOTE(Interrupt @ Oct 11 2008, 06:48 PM) I've just booked a Penang island high rise for own stay, and I am now thinking of chicken out. Looking at the falling of world wide share index and Singapore's recession announcement, things really doesn't look good to buy any new property now. Worst thing is that Malaysia government is still confusing of our country's economy status now... it's too general a statement, last 97 crisis, I believe prices in popular places in Klang Valley stayed about the same, and then continued rising after a few years. Would expect prices in places like JB to drop though...I believe the property price will fall by 10-20% by next year base on the below: 1. Oil price is falling 2. Steel price is dropping 3. Share market drop (people, especially foreign investor to start selling their property to cover losses) 4. Very high possibility of recession BNM is expecting to drop interest rate by 0.5 next year. If that is true, that could help sustaining the property price a bit but I doubt it will help much when people are making huge losses in the share market and lost their job. Unless you are very desperate, I will not advice anyone taking up loan while the property price have tendency to drop. If you're to sign up for any loan, please make sure you have at least 20-30% of cash of the loan amount you've just asked for. In case the property price drop, the finance institute may ask you to fill up the differences with cash. Do think twice, the long awaited property bubble burst may happening within next 6 months. Just my 2 cents... i think oil price as a limited commodity would actually increase in price, this year's average cost is already much higher than last year's. |
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Oct 12 2008, 10:48 AM
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16 posts Joined: Oct 2008
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QUOTE(zeusu @ Oct 12 2008, 05:49 AM) it's too general a statement, last 97 crisis, I believe prices in popular places in Klang Valley stayed about the same, and then continued rising after a few years. Would expect prices in places like JB to drop though... Maybe should refer to 1987 economy crisis to be more appropriate? If I'm not mistaken the housing prices during that time fall below 200k from about 300k in KL prime area yet no one is buying. The similarity of both 1987 crisis and today's finance crisis is the collapse of Dow Jones index. Dow Jones index hits the greatest fall in 10 consecutive days since it created 131 years ago. That should tell us how serious it is. i think oil price as a limited commodity would actually increase in price, this year's average cost is already much higher than last year's. Regarding the oil price, it's already fall below 78 per barrel, hitting 1 year lowest. Well, I can't say much if the gov not tuning down the price though I hope they will But I agree with you, it's controlled commodity where they can still cut the output. But whether cutting of output can help increasing the crude oil price in the situation like this... I do not know. Perhaps is more likely to sustain the price? Not all oil producer are happy to see the oil price hike, as that will stimulate the invention and the need of technology that do not or use lesser fuel.This post has been edited by Interrupt: Oct 12 2008, 11:09 AM |
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Oct 12 2008, 08:28 PM
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Senior Member
643 posts Joined: Nov 2006 From: Johannesburg
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Hi,
Thanks for responses, it really help me to have some ideas, and sure i need to study further to learn the links and consequences. My objectives is for investment, probaly i wont look for a house for stay in next 3-4 years. Anyway the purpose of my investment in property is more on getting passive income or to secure the value of cash, cos i am not ready to put a lot of time into property to make income. From above responses, i think it would be better i hold my cash untill next year to see how's thing go. |
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Oct 12 2008, 08:51 PM
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Junior Member
316 posts Joined: Aug 2007 From: Kuala Lumpur, Malaysia
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(1) Prices in places with high underlying demand and in which the investors or house buyers are asset-rich, will not suffer asset drops, particularly if these investors or house buyers are taking up first-homes in these country.
Explanation: If you are a rich Arab investor, and you are investing in a KLCC area property for a family home in Malaysia, you are not likely to exit. If you are a foreign investor, with highly leveraged capital base, and you have extended into several high-end properties, you may dispose / clear some of your asset base. (2) Prices in other segments of the market i.e. those with less underlying demand will suffer a drop. Explanation: Some places always have a "popular" factor / "first-home" factor. Avoid places which are more likely to be crowded with speculative investors. Let me put this way, if you buy into an apartment complex and you find out that 80% of the units there are taken up by speculative middle-class people who borrowed money to buy 2-3 units each and they are all not first-home-buyers, then i'd say there's a pretty good chance that property will suffer a price drop. Ultimately, if you are buying a property for first-home purposes, you shouldn't worry too much. I saw a mention re: purchasing a property for long-term stay. Don't fret. Just look for a good reliable developer. RE: Commodity / material prices, Cherroy's statement is spot-on... the drop in buyer demand is probably going to outweigh the material price factor. This post has been edited by Playbook: Oct 12 2008, 08:52 PM |
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Oct 12 2008, 09:42 PM
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Junior Member
178 posts Joined: May 2006
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QUOTE(Pai @ Oct 11 2008, 06:50 PM) IMO, now is a good time to buy mid-end segment properties due to : Studio King Pai,Just remember to buy below market, and pick the RIGHT location. Myself last week just sealed another acquisition and looking to close another next week, hopefully Caveat : if u have tones of cash and can afford a property without financing help, then u should wait until mid-2009 then only buy. Out of curiosity, where are your latest two acquistions located? I doubt you bought a Casa Tiara unit though  |
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Oct 13 2008, 01:03 AM
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Senior Member
3,589 posts Joined: Mar 2005 From: Bolehland
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I'm thinking to purchase my 1st house too in this year as my own staying.
But this coming recession really make me think twice even though i could afford it. Scare company will lay off |
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Oct 13 2008, 10:50 AM
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Junior Member
105 posts Joined: Apr 2007
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QUOTE(hanif444 @ Oct 11 2008, 11:44 AM) but now material cost already gone down,are we get discounted new housing price too?...dun think so.. Cement price and steel price have not really gone down. Cement and steel are now open to the current market, no more controlled pricing. House price is primarily location. But there is already an average increase of 15-25% on overall property price in KL. However, if BNM revised the BLR upwards then you may see house price decrease cos demand will reduce. |
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Oct 13 2008, 02:27 PM
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Senior Member
3,318 posts Joined: Dec 2004 From: 1Malaysia
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QUOTE(Lng @ Oct 13 2008, 10:50 AM) However, if BNM revised the BLR upwards then you may see house price decrease cos demand will reduce. Totally agree. However, the key word here is "if". Should this happen, BNM will effectively kill off our domestic sentiment for good, and we wont recover until the next 2 years. I for one anticipate the opposite will happen by end of this year. Added on October 13, 2008, 2:28 pm QUOTE(Moneylust @ Oct 12 2008, 09:42 PM) Studio King Pai, boss, PMed you Out of curiosity, where are your latest two acquistions located? I doubt you bought a Casa Tiara unit though This post has been edited by Pai: Oct 13 2008, 02:28 PM |
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Oct 17 2008, 02:09 PM
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Senior Member
1,933 posts Joined: Mar 2006 From: ~Universe~
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i personally tink that the housing development is off cyclical in nature lo. When the economy isnt ideal and rising of interest rate will cause a decline in housing activity, this will further reduce the housing costs. And it wont have immediate effect...
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Oct 20 2008, 11:50 PM
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179 posts Joined: Jul 2008
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QUOTE(Pai @ Oct 13 2008, 02:27 PM) Totally agree. can PM me too ? However, the key word here is "if". Should this happen, BNM will effectively kill off our domestic sentiment for good, and we wont recover until the next 2 years. I for one anticipate the opposite will happen by end of this year. Added on October 13, 2008, 2:28 pm boss, PMed you Btw interest rates won't go up. that's my bet |
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Oct 21 2008, 12:32 AM
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Senior Member
2,525 posts Joined: Jan 2003 From: maranello>sentul
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hi guys,
im planning to get a landed property in Kota Warisan, near KLIA for RM250k..... so is it good to buy this year or better to wait for next year? my concern.... 1) the house value drop....(donno this is possible or not, but seing the current market crisis) 2) increase of BLR.....i think if increase from 6.5 to 8.something.....(normal bank loan BLR-1.5) 3) what would i expect in 10years time? please advice.  |
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Oct 21 2008, 12:41 PM
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37 posts Joined: Sep 2004
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BLR will increase meh... for wat? to scare away fdis ?
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Oct 21 2008, 12:48 PM
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Junior Member
468 posts Joined: Apr 2007 From: PJ
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QUOTE(kayone @ Oct 21 2008, 12:41 PM) BLR will increase meh... for wat? to scare away fdis ? But looking at the car loan interest, they have increased. There is likely BNM to increase the BLR too. Hope these will not happen. |
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Oct 21 2008, 12:55 PM
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Junior Member
37 posts Joined: Sep 2004
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QUOTE(agape_ian @ Oct 21 2008, 12:48 PM) But looking at the car loan interest, they have increased. There is likely BNM to increase the BLR too. Hope these will not happen. car loan is consumer loan.. not collateral with monetary context.. credit card loan interest decreased ady at the same time.. but that doesnt mean BLR will decrease becoz of that..just my 2 cents  |
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Oct 21 2008, 01:01 PM
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Junior Member
307 posts Joined: Jan 2003
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pilothans,
i bought 1 home there end of last year at rm252k (expensive by rm5k as opposing semi-d), now gaining to rm282k, which ~rm272k after 7% less for bumis. i dont c for house values drop as it will be my house. i wont be affected by blras using gov loan:) im expecting the area will be expanding as the area has erl, in between klia n putrajaya, and also its freehold |
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Oct 21 2008, 01:04 PM
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Senior Member
2,525 posts Joined: Jan 2003 From: maranello>sentul
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QUOTE(badutman @ Oct 21 2008, 01:01 PM) pilothans, thanks for the advice badutman i bought 1 home there end of last year at rm252k (expensive by rm5k as opposing semi-d), now gaining to rm282k, which ~rm272k after 7% less for bumis. i dont c for house values drop as it will be my house. i wont be affected by blras using gov loan:) im expecting the area will be expanding as the area has erl, in between klia n putrajaya, and also its freehold  .....im also looking into the single story semi-D there...price quite reasonable  |
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Oct 22 2008, 03:25 PM
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1,232 posts Joined: Sep 2005
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Property prices plunge
http://www.nst.com.my/Current_News/Streets/Wednesday/Stories/2381698/Article/index_html NST Wednesday, 22 October 2008 KUALA LUMPUR: Owners in the Klang Valley are having a hard time selling their houses as buyers are staying away, hoping that prices would drop further. This has been the scene in the past four months as buyers chose to "wait and see", anticipating further price drops next year. Even though experts say prices will not dip much, some real estate agents are in jitters over the prospects for the economy next year. Many real estate agents interviewed believe that the property market will only go downhill. "Business has been bad. It's hard for us to sell houses nowadays," said one real estate agent. He believes prices of condominium flats will drop heavily, after experiencing rise of RM1,000 to RM2,000 per square foot in the past two years, He said those most likely to be affected are middle-income property owners who have difficulty in servicing their housing loans. He said prices of middle range homes might be stagnant for a couple of years. Another real estate agent, who wanted to be known only as Lim, said properties on the outskirts of Kuala Lumpur, such as those in Puchong, will feel the impact more than upmarket areas like Mont Kiara and Sri Hartamas. Property developer Sunrise Bhd is to defer some of its projects while waiting for the market to readjust. The developer added that it will take measures to complete its Solaris Dutamas, 10 Mont'Kiara, 11 Mont Kiara and Mont Kiara Meridin projects. Boustead Properties executive director Datuk Ghazali Mohd Ali said prices of condominium apartments might remain stagnant. "However, a good piece of property in an excellent location and well managed will be able to ride a recession better than other forms of investment," he said. Real estate valuer Regroup Associates' executive chairman, Christopher Boyd, said the residential property market in Klang Valley will not drop as much as expected. "The first thing to remember is that Malaysian house prices are not based on speculative value. This will allow the prices to be well balanced," he said. He said the prices of houses would only be affected if people had no jobs or could not afford to keep up their mortgages. "The rest of the world is going through turmoil. It is likely to weaken the Malaysian economy in general but because we are not as speculative as many countries, the property prices will not drop much," he added. In the 1997 Asian financial crisis, property prices in Malaysia did not plunge as the government took measures to protect the market. He said interest rates are still low and most Malaysians still have jobs and are able to pay their bills. However the market was slow despite 20 to 30 per cent reduction in rents. |
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Oct 22 2008, 04:04 PM
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Senior Member
2,525 posts Joined: Jan 2003 From: maranello>sentul
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thanks muscaa for the good article.......
now im still thinking........buy or not |
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Oct 22 2008, 04:48 PM
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19 posts Joined: Jul 2008
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QUOTE(pilotHans @ Oct 22 2008, 04:04 PM) thanks muscaa for the good article....... if u buying the 2nd hand house ( subsale) is better..now im still thinking........buy or not rite now the valuer are giving mkt value price lower from the market price .. be advice to check the mkt value for the house b4 buying the house.. as not different bank will hv different mkt valuer & the value also different.. u cant use Bank A Mkt Valuer to take loan from Bank B & ect.. still not sure if the BNM will raise the BLR, but the bank will not continue their (-) interest spread for long now, myb BLR+0%... |
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Oct 22 2008, 05:03 PM
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Senior Member
795 posts Joined: Nov 2004
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Can somebody answer my question here Greenlane Heights Apartment? This is secondary property market im aiming at...I still doubt in my decision whether should buy house now or not....
This post has been edited by goolie: Oct 22 2008, 05:06 PM |
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Oct 22 2008, 05:04 PM
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Senior Member
2,068 posts Joined: Nov 2006
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buy only completed units.. i do know some property developers are now caught in the wrong side of their internal cost hedging strategy.... they tried to generate excess profit from the rising price..
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Oct 22 2008, 05:25 PM
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Senior Member
566 posts Joined: Sep 2005 From: Compulsive Disorder Land
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hopefully our BLR will decrease as in following the trend in the US
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Oct 22 2008, 06:21 PM
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Senior Member
2,525 posts Joined: Jan 2003 From: maranello>sentul
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QUOTE(rico_hard82 @ Oct 22 2008, 04:48 PM) if u buying the 2nd hand house ( subsale) is better.. im planning to buy a 2nd hand house rite now the valuer are giving mkt value price lower from the market price .. be advice to check the mkt value for the house b4 buying the house.. as not different bank will hv different mkt valuer & the value also different.. u cant use Bank A Mkt Valuer to take loan from Bank B & ect.. still not sure if the BNM will raise the BLR, but the bank will not continue their (-) interest spread for long now, myb BLR+0%... anyway, thanks a lot for the comment  BLR +%  hopefully still -ve  |
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Oct 22 2008, 07:28 PM
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Senior Member
3,318 posts Joined: Dec 2004 From: 1Malaysia
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QUOTE(rico_hard82 @ Oct 22 2008, 04:48 PM) rite now the valuer are giving mkt value price lower from the market price .. good advice.be advice to check the mkt value for the house b4 buying the house.. as not different bank will hv different mkt valuer & the value also different.. u cant use Bank A Mkt Valuer to take loan from Bank B & ect.. still not sure if the BNM will raise the BLR, but the bank will not continue their (-) interest spread for long now, myb BLR+0%... In general, before u sign anything, make sure you have checked with a FEW banks the average value of the property you intend to buy. That way you'll know 1st hand if you overpaid OR u r getting a bargain and how much loan can you get On the interest spread, doubt it will ever go back to BLR + spread, unless BNM interferes.........  Added on October 22, 2008, 7:28 pm QUOTE(Pai @ Oct 22 2008, 07:28 PM) good advice. This post has been edited by Pai: Oct 22 2008, 07:28 PMIn general, before u sign anything, make sure you have checked with a FEW banks the average value of the property you intend to buy. That way you'll know 1st hand if you overpaid OR u r getting a bargain and how much loan can you get On the interest spread, doubt it will ever go back to BLR + spread, unless BNM interferes......... |
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Oct 23 2008, 01:50 AM
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Senior Member
2,525 posts Joined: Jan 2003 From: maranello>sentul
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QUOTE(Pai @ Oct 22 2008, 07:28 PM) good advice. will keep in mind In general, before u sign anything, make sure you have checked with a FEW banks the average value of the property you intend to buy. That way you'll know 1st hand if you overpaid OR u r getting a bargain and how much loan can you get On the interest spread, doubt it will ever go back to BLR + spread, unless BNM interferes......... Added on October 22, 2008, 7:28 pm  |
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Oct 23 2008, 09:07 PM
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Senior Member
643 posts Joined: Nov 2006 From: Johannesburg
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Guy,
I am considering to purchase a unit at U1 Residence Suite in Shah Alam. The unit is 1100ft2, total price at 350k, will be completed at 2011. I got loan offer for 300k at BLR -2.2%. The purpose is for investment (gain rental mainly, hopefully there is appreciation), but i really doubt whether i should go on looking at current market. Any advice? |
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Oct 23 2008, 09:59 PM
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Senior Member
1,558 posts Joined: Jan 2003
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I'm actually curious as well. We have an oversupply of houses even before this economic downturn - yet prices are still high.
Part of me believes it a speculation theory that's keeping demand high, and invetibly property prices artifically high. People buy more houses than they need on their own, and own houses more than they can afford. People who have money dump them in property as it's considered a 'safe heaven'. The cycle has to stop somewhere, won't it? Meanwhile, the developers build more and more. Btw, it's just a theory But this was how US property bubble burst anyway. A catalyst needs to stop the cycle and restart again. |
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Oct 24 2008, 12:57 AM
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Senior Member
3,318 posts Joined: Dec 2004 From: 1Malaysia
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QUOTE(toto4d @ Oct 23 2008, 09:07 PM) Guy, for Shah Alam area, thats really expensive. I am considering to purchase a unit at U1 Residence Suite in Shah Alam. The unit is 1100ft2, total price at 350k, will be completed at 2011. I got loan offer for 300k at BLR -2.2%. The purpose is for investment (gain rental mainly, hopefully there is appreciation), but i really doubt whether i should go on looking at current market. Any advice?  Added on October 24, 2008, 1:04 am QUOTE(KeNNy @ Oct 23 2008, 09:59 PM) I'm actually curious as well. We have an oversupply of houses even before this economic downturn - yet prices are still high. Hi Kenny, we used to have oversupply of CRAP properties. Properties in good locations are always limited in suppply due to high demand and vice-versa.Part of me believes it a speculation theory that's keeping demand high, and invetibly property prices artifically high. Now, I feel that we have oversupply of "high-end" properties and correction will be due soon. This post has been edited by Pai: Oct 24 2008, 01:04 AM |
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Oct 24 2008, 10:15 AM
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Senior Member
795 posts Joined: Nov 2004
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i think if we buy property for investment or rented purpose, we should take into account of maintenances fees, indrawater fees(half yearly basis), fire & theft, infrastructure...
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Oct 24 2008, 08:33 PM
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Senior Member
8,377 posts Joined: Nov 2004
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QUOTE(toto4d @ Oct 23 2008, 09:07 PM) Guy, I am considering to purchase a unit at U1 Residence Suite in Shah Alam. The unit is 1100ft2, total price at 350k, will be completed at 2011. I got loan offer for 300k at BLR -2.2%. The purpose is for investment (gain rental mainly, hopefully there is appreciation), but i really doubt whether i should go on looking at current market. Any advice? if ur property for business... u will get good rental bcos the location... if ur property for staying... i think may difficult to fetch good price bcos of the heavy road traffic, the "music" will appear around 730am-930am and 600pm-800pm... |
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Oct 25 2008, 04:57 AM
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Senior Member
643 posts Joined: Nov 2006 From: Johannesburg
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QUOTE(gkl83 @ Oct 24 2008, 08:33 PM) if ur property for business... u will get good rental bcos the location... Oh, "music"? U mean from the highway around is jam? The property is for staying ....if ur property for staying... i think may difficult to fetch good price bcos of the heavy road traffic, the "music" will appear around 730am-930am and 600pm-800pm... |
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Oct 25 2008, 08:06 AM
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Senior Member
8,377 posts Joined: Nov 2004
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QUOTE(toto4d @ Oct 25 2008, 04:57 AM) Oh, "music"? U mean from the highway around is jam? The property is for staying .... i means the roads just right beside the building... between jalan subang, persiaran jubil perak & jalan batu tiga lama i working at glenmarie... i able to jam there around 30-45minit (after working hour) around that areas only for around 3km road trip only even sometime i cut Q illegally... no only me cut Q, a lot of cars cut Q as well, so u can imagine the traffic bcos of those inefficient traffic light... maybe u can drop by there around 6-7pm have a look but sometimes the road quite clear...http://maps.google.com/maps?f=q&hl=en&geoc...5,0.006909&z=17 but i thought this house below RM260k only? why u the price RM350k? RM90k differences... http://forum.lowyat.net/topic/674801 This post has been edited by gkl83: Oct 25 2008, 08:08 AM |
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Oct 26 2008, 03:57 PM
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Senior Member
643 posts Joined: Nov 2006 From: Johannesburg
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gkl83: Thx for the info, eh, should really consider this. I yet to visit the area yet.
Yup, i saw the price for phase I is RM260k, but now the price from developer is around RM300-350k... macam too expensive. Now i serious consider to cancel to booking...... |
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Oct 26 2008, 09:21 PM
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Senior Member
2,546 posts Joined: Jan 2003
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For one thing, when economy crisis kicks in, which property area will be first impacted???
For one thing, I doubt places in KL & PJ, Sunway, Damansara will be impacted during economy crisis... Here is the list of KL & Selangor Area » Click to show Spoiler - click again to hide... « |
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Oct 26 2008, 10:52 PM
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Elite
15,855 posts Joined: Jan 2003
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QUOTE(arthurlwf @ Oct 26 2008, 09:21 PM) For one thing, when economy crisis kicks in, which property area will be first impacted??? arthurlwf,For one thing, I doubt places in KL & PJ, Sunway, Damansara will be impacted during economy crisis... Here is the list of KL & Selangor Area » Click to show Spoiler - click again to hide... « 1) How many recession that you have actually went through?? 2) This one is even worse than the 97/98 crisis. Dreamer |
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Oct 27 2008, 12:19 AM
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Senior Member
1,232 posts Joined: Sep 2005
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QUOTE(dreamer101 @ Oct 26 2008, 10:52 PM) arthurlwf, yeah dreamer,1) How many recession that you have actually went through?? 2) This one is even worse than the 97/98 crisis. Dreamer the recession sounds very scary like no bottom for the share markets be careful for those property owners who still think they can earn good "passive income"... your nightmare is not far away |
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Oct 27 2008, 12:48 AM
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Senior Member
3,318 posts Joined: Dec 2004 From: 1Malaysia
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QUOTE(dreamer101 @ Oct 26 2008, 10:52 PM) 2) This one is even worse than the 97/98 crisis. Dreamer Or have you mistaken Malaysia for US? |
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Oct 27 2008, 02:07 AM
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Junior Member
173 posts Joined: Jun 2006
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Oct 27 2008, 02:54 AM
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Junior Member
16 posts Joined: Oct 2008
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QUOTE(noproblem @ Oct 27 2008, 02:07 AM) IMHO, the most scary thing in Malaysia is the lack of recognition of this impact. So far I think Malaysia is the only country in this region thinks that we can withstand this. I think we will only start feeling the real impact 3 months later. I read from Malaysiakini that we're likely going into technical recession Q2 next year and go into recession around Q3; but I expect that to be happening earlier given the fact that the world stock market tumble like nobody business... Worst is that it has not reach the bottom yet...Japan Nikki stock index dropped to 26 years low on last Friday, and now reading the sin chew link you've just posted about China economy may be at risk -- I doubt any South East Asia country can withstand this without huge amount of reserve. Btw, Singapore private home prices fall 2.4% This post has been edited by Interrupt: Oct 27 2008, 03:03 AM |
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Oct 27 2008, 03:14 AM
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Senior Member
2,546 posts Joined: Jan 2003
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QUOTE(dreamer101 @ Oct 26 2008, 10:52 PM) arthurlwf, Well, I would also expect this round would be worst than 97/98 because of the following reason:1) How many recession that you have actually went through?? 2) This one is even worse than the 97/98 crisis. Dreamer 1) Malaysia have a high export to other country as almost all country is affected with global economy problem 2) Malaysia still have plenty of $$$ to rescue Malaysia's economy problem during 97/98, and I doubt this round is possible as there is a balance and check in the parliament. Hope Malaysia government will not throw our old age money (EPF) to the sea... 3) There would be impact to most of the property in KL & Selangor, but hot area (KL & PJ, Sunway, Damansara) will have lesser impact compare to the other places because the place is a mature area... So Dreamer, from your post, we don't know whether you agree and disagree with the below statement: I doubt places in KL & PJ, Sunway, Damansara will be impacted during economy crisis... Dreamer, what you think what would happen to the property during economy crisis? Added on October 27, 2008, 3:31 am QUOTE(muscaa @ Oct 27 2008, 12:19 AM) yeah dreamer, Yeah, its really scary currently especially on the world's share market nowadays...Each new day, we keep hearing new economy problemthe recession sounds very scary like no bottom for the share markets be careful for those property owners who still think they can earn good "passive income"... your nightmare is not far away The scary part is Iceland goes bankrupt This post has been edited by arthurlwf: Oct 27 2008, 03:44 AM |
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Oct 27 2008, 05:24 AM
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Senior Member
2,354 posts Joined: Feb 2005 From: Subang Jaya 
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QUOTE(Pai @ Oct 27 2008, 12:48 AM) And can you care to elaborate why is that so? wait and see lor.....heheheheh...Or have you mistaken Malaysia for US? ....if company retrench we can get VSS right???can go clubbing liao... |
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Oct 27 2008, 09:59 AM
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Elite
15,855 posts Joined: Jan 2003
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QUOTE(arthurlwf @ Oct 27 2008, 03:14 AM) Well, I would also expect this round would be worst than 97/98 because of the following reason: arthurlwf,1) Malaysia have a high export to other country as almost all country is affected with global economy problem 2) Malaysia still have plenty of $$$ to rescue Malaysia's economy problem during 97/98, and I doubt this round is possible as there is a balance and check in the parliament. Hope Malaysia government will not throw our old age money (EPF) to the sea... 3) There would be impact to most of the property in KL & Selangor, but hot area (KL & PJ, Sunway, Damansara) will have lesser impact compare to the other places because the place is a mature area... So Dreamer, from your post, we don't know whether you agree and disagree with the below statement: I doubt places in KL & PJ, Sunway, Damansara will be impacted during economy crisis... Dreamer, what you think what would happen to the property during economy crisis? Added on October 27, 2008, 3:31 am Yeah, its really scary currently especially on the world's share market nowadays...Each new day, we keep hearing new economy problem The scary part is Iceland goes bankrupt 1) If you live through 97/98 recession, you would know that property in those market dropped too. Except, some did recover a few years later and some did not. So, you may not know it now. 2) Given that this recession will be worse than 97/98, so what makes you think they will not drop?? Given the past history, they will drop. Over the past few years, Malaysia's growth is ONLY based on the two OILS: Oil and Palm Oil. Now, they both will drop. Dreamer |
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Oct 27 2008, 10:32 AM
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Senior Member
2,546 posts Joined: Jan 2003
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QUOTE(dreamer101 @ Oct 27 2008, 09:59 AM) arthurlwf, Alright, I will rephrase my sentence:1) If you live through 97/98 recession, you would know that property in those market dropped too. Except, some did recover a few years later and some did not. So, you may not know it now. 2) Given that this recession will be worse than 97/98, so what makes you think they will not drop?? Given the past history, they will drop. Over the past few years, Malaysia's growth is ONLY based on the two OILS: Oil and Palm Oil. Now, they both will drop. Dreamer I doubt places in KL & PJ, Sunway, Damansara will be much impacted during economy crisis compare to other areas in Selangor... Is it due to the reason that both OILS price drop, therefore you conclude that the property price will drop to an unknown bottom? Apology for my lack of economics understanding, and how would property price link with both oil prices? |
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Oct 27 2008, 10:36 AM
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Senior Member
734 posts Joined: Jan 2003
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Till now I don't see heavy URGENT SALES / FORECLOSURE.
I guess it will impact when retrenchment happen. Many mid income earner got burn in share but still able to hold on on the property. |
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Oct 27 2008, 10:43 AM
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Senior Member
1,232 posts Joined: Sep 2005
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QUOTE(arthurlwf @ Oct 27 2008, 03:14 AM) Added on October 27, 2008, 3:31 am Yeah, its really scary currently especially on the world's share market nowadays...Each new day, we keep hearing new economy problem The scary part is Iceland goes bankrupt http://news.bbc.co.uk/2/hi/business/7692017.stm |
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Oct 27 2008, 11:28 AM
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Junior Member
462 posts Joined: Feb 2007
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we indeed is in recession now. not a good sign.
property market for now ? to me, i will not even get any closer to it. simplicity saying, get rid of it. i am selling a property off now. But, seems like, i wont be able to make it through. the price that i am selling, actually is a negative. HEADACHE. |
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Oct 27 2008, 03:29 PM
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Senior Member
2,354 posts Joined: Feb 2005 From: Subang Jaya
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QUOTE(dreamer101 @ Oct 27 2008, 09:59 AM) arthurlwf, manufacturing?1) If you live through 97/98 recession, you would know that property in those market dropped too. Except, some did recover a few years later and some did not. So, you may not know it now. 2) Given that this recession will be worse than 97/98, so what makes you think they will not drop?? Given the past history, they will drop. Over the past few years, Malaysia's growth is ONLY based on the two OILS: Oil and Palm Oil. Now, they both will drop. Dreamer |
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Oct 27 2008, 04:47 PM
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Senior Member
643 posts Joined: Nov 2006 From: Johannesburg
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QUOTE(arsenal @ Oct 27 2008, 03:29 PM) manufacturing? Manufacturing? U mean the manufacturing industry in Msia as a growing sector?I doubt on this, msia macam factory for others only. If those big companies having problem, msia operation sure affected. |
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Oct 27 2008, 10:51 PM
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Senior Member
1,232 posts Joined: Sep 2005
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Malaysia's key sectors show signs of slowdown
The Straits Times, October 27, 2008 At the numerous condominium projects around the Mont Kiara suburb of Malaysia's capital Kuala Lumpur, construction workers plod round the clock to complete multi-storey apartment blocks. Property developers in this popular neighbourhood are worried, though, that sales are starting to slow. "Units that were previously sold are now coming back onto the market," says a project manager of one unfinished condominium complex. Shockwaves from the global financial meltdown are starting to pound on Malaysian shores and signs of a wider slowdown are already emerging in key props of the Malaysian economy, private economists say. That's spreading caution across the board, from potential homeowners to buyers of new cars. Full articles: http://www.asianewsnet.net/news.php?id=2279&sec=2 |
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Oct 27 2008, 11:00 PM
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Senior Member
3,318 posts Joined: Dec 2004 From: 1Malaysia
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QUOTE(cody99 @ Oct 27 2008, 10:36 AM) Till now I don't see heavy URGENT SALES / FORECLOSURE. You are right. Despite KLCI and global market plunges, houses pricing are still holding up. U will find decrease in asking price for high end properties(klcc, MK, and bangsar) in the next 3 months onwards.I guess it will impact when retrenchment happen. Many mid income earner got burn in share but still able to hold on on the property. Actually, speaking of retrenchment, anyone heard any coys layong of their staffs? I know many MNC now freeze new hires, but have not any heard any massive scale firing going on. My frens in SG having sleepless nights now. Added on October 27, 2008, 11:04 pm QUOTE(arsenal @ Oct 27 2008, 05:24 AM) wait and see lor.....heheheheh... Hehehe,sound like a good plan to aleviate the pain ....if company retrench we can get VSS right???can go clubbing liao...Added on October 27, 2008, 11:23 pm QUOTE(a6meister @ Oct 27 2008, 11:28 AM) we indeed is in recession now. not a good sign. Boss, in terms of timing, you could not pick a worst time to sell.property market for now ? to me, i will not even get any closer to it. simplicity saying, get rid of it. i am selling a property off now. But, seems like, i wont be able to make it through. the price that i am selling, actually is a negative. HEADACHE. Btw,this property of yours, can give more info: 1. Development name 2. Your selling price 3. Rental p/m This post has been edited by Pai: Oct 27 2008, 11:23 PM |
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Oct 28 2008, 12:30 AM
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All Stars
14,990 posts Joined: Jan 2003
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So nice.. everything is cheap
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Oct 28 2008, 10:18 AM
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Junior Member
462 posts Joined: Feb 2007
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QUOTE(Pai @ Oct 27 2008, 11:00 PM) You are right. Despite KLCI and global market plunges, houses pricing are still holding up. U will find decrease in asking price for high end properties(klcc, MK, and bangsar) in the next 3 months onwards. Well, you are right, should not sell if the time is not right. You could say that i am actually selling at the wrong timing. But, to me this property does not worth to keep.Actually, speaking of retrenchment, anyone heard any coys layong of their staffs? I know many MNC now freeze new hires, but have not any heard any massive scale firing going on. My frens in SG having sleepless nights now. Added on October 27, 2008, 11:04 pm Hehehe,sound like a good plan to aleviate the pain Added on October 27, 2008, 11:23 pm Boss, in terms of timing, you could not pick a worst time to sell. Btw,this property of yours, can give more info: 1. Development name 2. Your selling price 3. Rental p/m Ok, this is a shophouse. Located in SITIAWAN, my hometown. It is the place which considered as the top producer of swifnests and swiftlet farming. Since i am staying in KL, I dont think i have the time and effort to take care of this property or even run a business there. ROI is terrible. 3 storeys shoplot only yield 1750 rental a month, and dont forget, about 1k alone out of 1750 is for bank interest only. purchased at 485k. |
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Oct 28 2008, 12:25 PM
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Senior Member
2,354 posts Joined: Feb 2005 From: Subang Jaya
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QUOTE(wodenus @ Oct 28 2008, 12:30 AM) So nice.. everything is cheap not really...food still expansive...car interest high.....cant buy civic also.... |
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Oct 29 2008, 01:22 AM
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Senior Member
3,318 posts Joined: Dec 2004 From: 1Malaysia
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QUOTE(a6meister @ Oct 28 2008, 10:18 AM) Well, you are right, should not sell if the time is not right. You could say that i am actually selling at the wrong timing. But, to me this property does not worth to keep. U r right, this is not worth investing in. To me, its not really a problem of timing, the real problem here lies in the location.Ok, this is a shophouse. Located in SITIAWAN, my hometown. It is the place which considered as the top producer of swifnests and swiftlet farming. Since i am staying in KL, I dont think i have the time and effort to take care of this property or even run a business there. ROI is terrible. 3 storeys shoplot only yield 1750 rental a month, and dont forget, about 1k alone out of 1750 is for bank interest only. purchased at 485k. Out of curiosity, why buy this shophouse in the 1st place knowing the ROI is terrible? |
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Nov 2 2008, 10:09 PM
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Junior Member
162 posts Joined: Nov 2006
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How is the property price of Bukit Jelutong? Will it be going down as u all expected? If yes, how much will it drop? Thanks
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Nov 10 2008, 12:19 PM
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Senior Member
1,139 posts Joined: Aug 2008
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QUOTE(toto4d @ Oct 23 2008, 09:07 PM) Guy, Bro, I suggest you walk in & talk to a person called John Ting.I am considering to purchase a unit at U1 Residence Suite in Shah Alam. The unit is 1100ft2, total price at 350k, will be completed at 2011. I got loan offer for 300k at BLR -2.2%. The purpose is for investment (gain rental mainly, hopefully there is appreciation), but i really doubt whether i should go on looking at current market. Any advice? Heard they have confirmed project at walking distance. MSU University & new Centralize Bus Terminal ? or the next phase LRT route might pass thru the bus terminal ? Anyone know ? |
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Nov 10 2008, 05:18 PM
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Senior Member
643 posts Joined: Nov 2006 From: Johannesburg
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QUOTE(blasto @ Nov 10 2008, 12:19 PM) Bro, I suggest you walk in & talk to a person called John Ting. Ya, i heard the MSU University oso.Heard they have confirmed project at walking distance. MSU University & new Centralize Bus Terminal ? or the next phase LRT route might pass thru the bus terminal ? Anyone know ? |
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Nov 10 2008, 09:49 PM
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Senior Member
1,139 posts Joined: Aug 2008
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QUOTE(toto4d @ Nov 10 2008, 05:18 PM) Ya, i heard the MSU University oso. yeah, looking at those previous students in UPM.One house, 3/4 rooms & 2 Toilet = 12 students share = Rent RM 1.5k  Imagine U1 = 3 Rooms + 2 Toilet @ 2011 = 12 students = Rent RM 2k  |
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Nov 13 2008, 11:30 AM
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Junior Member
303 posts Joined: Aug 2007
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Dec 5 2008, 04:07 AM
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Senior Member
2,108 posts Joined: Jun 2005 From: PJ
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QUOTE(Pai @ Oct 11 2008, 06:50 PM) IMO, now is a good time to buy mid-end segment properties due to : excellent analysis. 1. Currently its a buyers market, can choose and nego as u wish. 2. Panic selling does happen occasionally due to global stock downturn. I see more bargains in the market today compared to 6 months ago. 3. Financing rate is at its all time low and banks have still have appetite to lend. In US now even the price drop by 50℅, banks refuse to lend. 4. We now have an influx of expats from middle east to increase our expat tenant n buyer pool. 5. Min 70℅ of all future launch will be high end props and it will only make mid-end properties more desirable due to decrease in supply. Just remember to buy below market, and pick the RIGHT location. Myself last week just sealed another acquisition and looking to close another next week, hopefully Caveat : if u have tones of cash and can afford a property without financing help, then u should wait until mid-2009 then only buy. by the way how much cash is considered tons of cash? (is 1 million in FD enough) mid-range properties RM300~RM500k will be much cheaper by mid 2009? |
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Dec 5 2008, 10:39 AM
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Senior Member
3,318 posts Joined: Dec 2004 From: 1Malaysia
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QUOTE(vincentlee @ Dec 5 2008, 04:07 AM) by the way how much cash is considered tons of cash? (is 1 million in FD enough) mid-range properties RM300~RM500k will be much cheaper by mid 2009? A fren of mine bought a property 25% below market 3 months ago bcoz he bought it cash from a desparate seller. His rental yield for the said property today is 13.5%. |
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Dec 5 2008, 11:33 AM
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Senior Member
763 posts Joined: Oct 2008 From: The place of ORIgin
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QUOTE(Pai @ Dec 5 2008, 10:39 AM) tons of cash : min 30% of the property value u wanted to buy. Better still if you can pay 100% cash. wow, ur friend get a very good deal in his/her investment A fren of mine bought a property 25% below market 3 months ago bcoz he bought it cash from a desparate seller. His rental yield for the said property today is 13.5%. (13.5% return is very gd investment) |
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Dec 6 2008, 04:56 AM
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Senior Member
2,603 posts Joined: May 2006 From: USJ Taipan + PJ SS2 
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QUOTE(toto4d @ Oct 11 2008, 10:06 AM) Hi Guys, hmm i think now is good time to buy because the owner will not hold their selling price until so tight so you can nego more.I am a bit noob on this but hope someone could enlighten me. I am curious to know what would happen to Malaysia Property Market following global economy melt-down. (assuming Msia will suffer the effect following US market soon.) Would the property rise drop? Interest increase? Planning to buy a property soon, just think whether now is the right time. |
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May 31 2009, 12:07 AM
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Junior Member
30 posts Joined: Feb 2009
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eh? how come this thread is like dead?
Anyway, I noticed the new mind-range properties prices now are soaring with low bank lending rate, promotions (free legal fee, free mot, free this free that), and also the 5/95 package. Is the developer price for mid-range properties in shah alam places like Setia Alam and Kemuning Utama still reasonable? |
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May 31 2009, 05:14 PM
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Staff
25,802 posts Joined: Jan 2003 From: Penang
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General discussion about properties price, trend, situation is being discussed in a pinned thread. http://forum.lowyat.net/topic/741185/+360
That's why this thread is idle. So please proceed posting the above mentioned thread. Thanks. |
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