I have been looking at some houses (2nd hand) since last year November and have held back my purchase since there was news of a property going down this year. But until now still no reduction. I am very curious. Must the economy be worst?

You do not expect property price to drop drastically over the night.
When price goes up, you wouldn't see it dropping sharply.

It is however a time to spot seller who is desperate for liquidity i.e. tight on cash and willing to let go at lower than market price.

For instances, if I have a property and also the cash to maintain it; why should I let it go for the price I'm not comfortable with? Get my point?

This post has been edited by b00n: Jan 20 2009, 09:38 AM

Unlike share, property is not a liquid investment and property transaction is very low compare to share transaction. Meaning what other ppl can get at the price, doesn't mean u can get it too. As the effect of the world recession just begin to hit Malaysia, sooner or later it will as the recession reach its climax, more and more desperate property owner will definitely appear. The bargains will come, u just need to be patient as the current recession may be a long one.

It might not even come down. Whats your plan then?

stay with the parents / in-laws

The price of property might not have come down, but the cost to loan has...so in a way, the price has come down.

even 1% change in BLR would save you thousands if u are buying a 400K+ property

which area you're referring?

and how about rental? I'm looking at some houses at the moment but I wonder if the rental rate is going to drop (e.g. owner being desperate to get tenant) - then there's also the thought of demand sustaining the rental rate.

what do you guys think?

goldfries,

My feel is that in general, rentals has been on the rise since 2006, epecially for budget properties (rentals of 2.5k and below) located nearby LRTs, with decent ammenities available.

go to penang, a lot of properties are suffering especially shop houses... eventually next year housing will follow suit.

it is not that the prices in other places are not dropping. jsut that u ugys wont notice it because instaed of direct house price drop, the currency value drops so everything else drops with it.

Rental at high end properties especially Mont' Kiara started to drop as more and more expatriates return to their respective country without complete or renew their tenancy contract. Some owner start looking for new tenant now with lower rental.

thanks. cos I'm looking at DPC rentals and was wondering by any chance it would drop. (yes. reading the DPC thread too)

i asked around about the Sri Hartamas area, that Jalan Beringin new houses, Semi-Ds. rental is astronomical IMO, like towards 5 digits or more.

I dont get it. If you r looking for rental income, why target DPC props and Sri Hartamas Semi-Ds?

Perhaps, the price descent is not in the area you are looking at.

Property prices e.g. luxury condominiums are down about 30-40% from their peak in certain parts of the Golden Triangle and other premium areas. There's about 40% occupancy rate in some of the luxury condominiums that have received their CFs within the last year. Note: This is not a recommendation to buy those devalued units. This is probably just a natural correction as some of those earlier prices were overhyped. I understand that it's just a simple matter of overseas buyers not being present like before. A number of overseas buyers have chosen to forfeit their deposits, for example.

I think someone said it wisely - Don't try to time it perfectly.

think the prices will hold or even increase in the wake of the recent massive BLR cut

*not applicable for speculative areas (KLCC, MK, Bukit Bintang) though

Exactly! That's why in my previous post I also highlighted that the transaction prices have come down 30-40% in some cases, falling below developer prices.

I was surprised TS mentioned that prices hadn't dropped, and I surmise it's because TS was looking at certain areas which (in a previous posting, I can't remember where) I had highlighted that areas that are resilient to price drops will be those with a strong local component with mainly buyers-buying-to-stay.

You are going to see price drops & price volatility where:
(1) Rentals by an expatriate community engaged in certain vulnerable economic sectors (e.g. electronics)
(2) Properties that have been purchased by a large percentage of speculative buyers (e.g. where you find a high % of instances where more than 3 units in a development purchased by a single buyer)

If TS is looking at properties situated in demand-resilient areas, e.g. where tenants may appear to be invulnerable to the downturn, or few speculative buyers, you are not going to see the volatility in the transaction prices.

Agreed. Actually, that's what the real estate market has been feeding back too. Those areas above are where the 30-40% cited price drops are occurring. It still may not have fallen far enough to hit fair value, cos we did have quite a run-up previously.

huh? no la. i'm not looking for rental income. just scouting around where's a good place to shift to, posting some details i found here and there.

so happen talking thread about property price still high, so was wondering of the possibility of future economic downturn resulting in depreciation of land value, thus lowering rental. or in some cases, desperate people who just want tenant and forced to reduce rental.

stuff like that.

there will be desperate ppl trying to sell of their property at time like these, but even more ppl taking the oppertunity to purchase a property with the new OPR adjustment... so keep your eyes open.

I'm on the hunt currently xD



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eyeing in property in bdr putra permai/equine park.....a bit dissapointed the alam santuary 315k + leasehold tak turun2 harga also eyeing property in kota warisan....hope the 200k pricetag for the semi-D will drop