Tuesday, October 05, 2010

In KL, a property bubble's waiting to burst

Bubble and Bubbles. Here is a picture of Michael Jackson's pet chimpanzee BUBBLES, a word  synonymous with our property market, with residential loans now accounting for 27 per cent of all loans for banks.

BUBBLES has a new home at a Florida primate sanctuary. Malaysians, though, are finding it hard to buy a home.

The Malay Mail's Marhalim Abbas writes there is an artificial property bubble in the making, with bankers and developers working hand in glove . Rear his piece H E R E.

The government's own National Property Information Center (NAPCI)'s data show average prices for homes rose 19 per cent in the first half of this year from a year ago while in Kuala Lumpur prices have soared by more than 35 per cent. The NAPCI's Property Overhang reports disturbingly show unsold properties rose to 22.6 per cent of new launches in the second quarter of this year.

Unsold homes, and rising prices!!!

Are banks and developers making BUBBLES out of us? 

Who is going to bear the brunt of the burn when the music stops playing at the property party?

88 comments:

Anonymous said...

The largest property overhang in Malaysia remained in Johor, accounted for 24% of total value. Bravo MB Johor!

jonathan said...

Ive been thinking of this for a very long time. Sometimes the gov has never think of stopping by allowing the greedy developers and property investors play speculative property market. Im not sure with all the expensive and super millions houses, who are the buyers. Whereas, the mid incomers have to bear the loan of RM 400k above just to get a intermediate double storey type 20 x 65 that is outside from klang valley. Now even the condo price have reached to RM 400 k in KL. Something im so upset with the govt when they allow speculation happen and oppress the middle income by not controlling the foreigners, property agents, and property investors play with property market. Soon the later generation have to bear more cost just to get a low cost house. Our space is not limited yet but the impact has escalated to other cities even in Kangar and Miri.
What the hell, Najib still want to protect developer and BNM will not impose the policy 80% financing very soon.

George Choo said...

Rocky, I do not think the unsold propertie is 26%.If you look at all the launches especially for landed properties,SEMUA HABIS DIJUAL. I have a friend who sold all 1000 units of studio unit apartment at RM 350,000 each without launching but through properties agents. His selling point is where the purchaser paid only RM 5000 DEPOSIT. On signing of the S&P,the purchaser is given a 10% rebate and thus the purchaser does not pay anything on signing and the balance 90% is by bank housing loan.Legal fees ,stamp duty and other expenses are paid by the developer and the buyer will only service the loan on receiving the CF.This is the easy payment scheme which encourage a lot of speculators to enter the property market now.My advice to genuine buyer is to careful and it is time the authorities like bank negara to use the monetary policy in its disposal to cool the market. I expect this market to CRASH in JUNE 2011.

eddy said...

If the price of a semi detached in Ampang can cost up to RM1.5 million with Bungalows fetching RM4million or more,I am no property expert but I think it should burst and let prices comes down to reasonable levels.

Anonymous said...

Ape Bank Negara duk buat? Makan pisang kot ! ! !

Anonymous said...

Of course the market is going to burst. Just drive around KLCC or Mont Kiara at night and see how many apartments are actually occupied. A friend has two apartments in Kiara which haven't been tenanted for a whole year.

Developers are offering all sorts of gimmicks to raise sales. One more year of completed properties being unable to find tenants, and then we will see the shit hit the fan.

Worrier

Anonymous said...

This bubble is due to Najib's eco policy. Help the very poor and the very rich. The middle class dianaktirikan. Dato Najib, dengau tak, we the middle class have the broadest electorial base. You main main with our purse strings, we will not P A N G K A H dacing. Sat lagi BN akan jadi C A C I N G.

Grandpa said...

Datuk, apart from blogging I do real estate too. Anyone wanting to sell or buy BEFORE the bubble can contact me via my blog:

http://www.fruitofmylabour.blogspot.com

Thanks for the warning Datuk, otherwise we may lose all our hard-earned savings

Anonymous said...

Dont worry abt over supply in, becoz we can house foreign labour there. First they rob us of our job, next our intended homes.

Anonymous said...

Ask, Perkasa to take up the unsold lots lah.

Anonymous said...

Lets make BUBBLES the PM. Plus points are, we dont need to deal with BUBBLES wife. We can styme corruption. Not so many overseas trips and we only have to pay BUBBLES with peaunuts and banana. Also, the guy currently assuming the position isnt doing a better job then a primate. All reason more for BUBBLES to be given the job.

Anonymous said...

Apo tu bubble ? Buih kot, mcm si lembooo muntah BAT. Aah, tu le angkara Buih, lambat laun keluar jugak.

Anonymous said...

Stock market - got bubble. Property market - also got bubble. Najib's economic plans - SRIs, NEM blah blah blah - filled with bubble dreams. When the party is over, Rocky, the people of Malaysia will be left out of the streets and our national assets will be sold to China

Anonymous said...

Hidop Bubbles. Rakyat didahului, pencapaian diutamakan dan keuntungan makisma buat CIMB Bhd. Patotlah, Nazir Razak tak perlu DEB, depa dan bank bank lain dah diberi lesen penoh manipulasi pasaran hartanah, agar rakyat bayar lebih untuk hartanah yg sememangnya bukan mahal. Bangkitlah, Tan Sri Muhyidin, PERKASA melayu, wira bangsa, dan selamatkan rakyat Malaya dari perbuatan keji CIMB dan kuncu kunconya. Hidup Tan Sri Muhyidin Yasin.

Anonymous said...

Consequence by abuser whom is greed is good

Johnny Ong said...

both the banks and developers won't care abt the bubble. the govt must act fast by implementing stricter rules on the issuance of hsg loans.

once buyers are restricted in funds, the hype will die down and developers will have lesser buyers

Anonymous said...

Property prices have been keeping up with our GDP, inflation and income growth between 1986 to 1996, but now prices of almost everything has increased by more than 100 per cent from year 2001 onwards - just a few years time.

Anonymous said...

Dear Rocky, you ask us to click HERE to read Marhalim Abbas piece. But when I click HERE, this is what I get : The webpage cannot be found.
Are you playing an OCTOBER fool joke with us?

Anonymous said...

Prices of houses will invariably increase in time due to demand and supply. But the recent prices are ridiculously high because of an artificial hike by cunning developers and builders, and their ill-conceived collaborations with groups with vested interest, including financial institutions and banks, Marhalim Abbas wrote, citing House Buyers Association (HBA) honorary secretary-general Chang Kim Loong.

Marhalim Abbas should explore more on how this SCAM is taking place. Perhaps, he should get in touch with Chang Kim Loong, for an explanation.

Malaysia needs to know, if this is idle coffeea shop talk, or something really serious that can have an impact on our lives.

Marhalim Abbas, you have opened up the hornest nest, so make the required revelations lah.

Anonymous said...

Do I think there is a bubble in Malaysian property, oh yes. How do you know there is a bubble? When everyone cites only the positives: low interest rates, comparative valuations.
The whole thing reside on the recent financial crisis which saw truckloads of stimulus left, right and center, but Asian banks and corporates were really not that badly affected. Properties in Asia DID NOT go to the extremes like in the US subprime party or CDOs driven gains in most of Europe, in particular the UK and smaller European nations. Now with the stimulus, we have too much liquidity swishing in the system. Most Asian central banks are still keeping rates low to keep in step with US and EU rates as exports and real economy are still recovering. I see liquidity being diverted into property in Malaysia and Asia-Pacific.

Anonymous said...

In Malaysia there are two markets, its the new developments that are getting the bulk of the funding and cheap financing. Seriously, look at our affordability ratios, how can families keep up with RM500,000-RM800,000 loans??? Unless I am mistaken, most middle class families don't make more than RM10,000 a month.

Have a look at just completed properties over RM1.5-2.0m, even after 6 months, more than half are empty. Those below RM1m still mainly owner occupied. Many of the higher priced ones are people's second or third investment homes or owned by foreigners. We all know what kind of yields these properties can get locally don't we.... lucky to get 3% yield. However, the party is still on because the foreigners are mainly Asians and they are riding on a good property wave in their own turf, hence no need to sell. See if there are buyers for properties above RM2m in the secondary market... very very few

Anonymous said...

No property developers would be caught dead saying its bubbling over. So, how will the whole thing unwind, we need one major market to correct and then you see the domino effect. Property markets are different to stock markets, their bull run is more sustained and the unwinding takes a lot longer. When you are in the property markets, its hypnotic and crowd driven. Every profitable sale gets whispered louder and louder, do you want to miss that. I have a friend who bought a Desa Park City link house and it has risen by RM400,000 in 6 months, how to argue that that is wrong.

Safe to say that a lot of new developments are still being built, even the super luxury condos in KL and Bangsar are mostly still under construction. It takes time to see a correction but its coming. You just cannot make a timeline prediction. Unless you can see a normal executive in their 30s being able to buy at RM1m, without any help from their parents, then you can say its affordable.

Anonymous said...

This happens when greeds overtaking prudent and reality. Who to be blamed ? The big industry players should blame themselves when the bubbles burst. But sadly, the average players and common citizens will feel the pitch most.

GLC's also to be blamed by jumping on the bandwagon, linking Performance to Profit only.

Government is also a partly to it by praising and promoting GLC's management by measure of profits instead of other factors into consideration.

The people at large is going to suffer, governement should step in and prevent this from happening like they did with the IMF issues during Dr. Mahathir era.

Anonymous said...

The worse defense is that Malaysia is still cheap compared to Singapore or HK .... so what???!!! When is there an average for Asian property prices??? That argument is the same as saying my salary in Malaysia will soon double because its so far from Singapore's salary - yes, quite bullshitty. So, make your money while the SON shines, and then hope that it is sufficient to cover the losses when they correct.

Anonymous said...

If you say Malaysian property bubble, it does not look so plausible ... but if you replace it with KL or Penang property bubble, you have more nodding heads.
the property prices in KL and Penang are frothy, well, not just frothy but very frothy. The ones still bullish are usually those who still have one or two properties in their hands, looking to offload.
So dont get SUCKERED

Anonymous said...

The basis for housing - live in ownership or rental. For live in ownership, its affordability ratio. For rental, its effective yield relative to prevailing interest rates.
On both accounts, affordability is out of reach and rental yields are falling rapidly in Kl and Penang.

Anonymous said...

Foreign buyers are mostly leaving finished units and houses empty. Don't believe me, go check out houses and apartments costing more than RM2m and RM1m respectively. If you can get 50% occupancy, call me and tell me where!!!

Anonymous said...

Property bubbles do not get pricked so easily. When low interest rates is prevailing and other sectors of the economy are so weak, central banks cannot just raise rates to dampen property speculation as the broader economy will get hurt.

Anonymous said...

It's the local banks with their easy loan schemes for new properties built by developers that are helping fuel this speculative bubble. They have ample liquidity and few sectors to lend to. They have forgotten about property bubbles. When the property crash comes, watch out for troubled and failing banks too.

Anonymous said...

The developers and bankers are no doubt conniving to fire up the property prices. When the neighbouring propery has value of RM500k, the developer will launch the first phase at RM600k, and the second phase at RM650k, and the 3rd phase at RM700k. The bankers will dance along with the developers with easy mortgage loan as it is perceived to be low risk. Such a pricing tactic not only enable the developers to reap extraodinary profits, it also stir up the prices of older properties as buyers are left chasing the prices set by developers.

It is the greed on the part of the developers and bankers that have caused house prices to move beyond the affordability of most Malaysian families.

Pity the younger generation. With house prices like these and our salary scale, even with 95% financing made available to them, the vast majority will still not be able to afford a decent house without their parents' financial support. Something must be done to stop the situation spiralling out of hand!

Anonymous said...

Some day, when nobody expects, a bank her is going to go under because the property market has gone bust, and we shall reflect on this blog post then. But for now, YAM SENG!!!!!

Anonymous said...

It amazes me that property prices have appreciated so much and fast in the last 1 - 2 years. Some hot locations have gone up between 30 - 50% within such a short period of time despite uncertainties with the world economy. I have not seen such phenomenon during the past few recessions. If I am not mistaken, this is the first time property prices escalated very fast during a recession.

The current worldwide recession was triggered by the bursting of the property bubble in the USA. There seem to be parallels between the escalating property prices in Malaysia with that of the USA.

Will the escalatiing properting prices bring the Malaysian economy to its knees when the bubble burst? Personally, I see grave danger of this happening within the next 1 - 2 years.

Anonymous said...

Malaysia will experience a "high inflation" period soon, with regards to increase in property prices and all other goods.

Anonymous said...

Buy land, they're not making it anymore.
Mark Twain

Anonymous said...

The base that forms a subprime is a property mortgage loan. What fueled the subprime crisis was the escalating property prices in the US. Many investors were speculating and making money from real estate until it became unsustainable. Also to blame was the low interest rate at the height of the property boom. The regulators also fail to do their job to curtail the massive speculation.

Anonymous said...

Are you bracing us for a huge spike in interest rates over the next nine months, on the pretex of rising property market? Com'on lah rocky, a single swallow doesnt make a summer.


hhehehe, hehheehhe

NUHSI

Anonymous said...

mengandungkah sektor hartanah kito??? bile nake beranak????

Anonymous said...

A property bubble is formed when there is excessive bank-lending and low borrowing cost (for a type of property or an area of property), leading to investment frenzy as well as plenty of speculations. Property prices will increase until they reach unsustainable levels relative to incomes and other economic elements, followed by a reduction in the price levels. Banks will be short on capital, while cases of non-performing loans start to show up. When banks start cutting back credit, it will in turn affect the economy, as the move will affect the price of property as well.

Anonymous said...

I know KL prices have gone up a lot recently and economy booming, but feel that this is maybe just another property bubble waiting to burst.

Anonymous said...

Frauds among speculators in Malaysia are becoming more prevalent nowadays. Many people actually fake "pay slip / income tax returns" just to get loans to speculate in property. I think bankers just *close one eye*. Many of these speculators are flippers who sell upon completion of the project

Anonymous said...

Hear many people are flipping projects like Jelutong Heights, Kota Kemuning, etc. gaining more than 30% - 50% within a year! Tis is crazy man.

Anonymous said...

Napic does not have a housing affordability index a rough calculation shows that the average price of RM212 815 is about 4 4 times that of an average annual household income of RM48 000 The average price of a KL home is now a steep 9 times that of the average urban household income of RM54 000 and a possible sign that the market is headed for a bubble.

Anonymous said...

A friend told me a syndicate from China is currently driving up the property prices in Selangor and KL to dazzling height. I hope our authority will do something drastically to curb unhealthy speculations. Singapore seems to be reading the sign well ahead of Malaysia and has implemented several measures end of last year and recently to prevent overheating.

Anonymous said...

Property market is the biggest speculative market in Malaysia, But with poor regulation speculators will be killed off. That leaves only football betting as the only game to be trusted for diehard gamblers. What an irony!!

Anonymous said...

A task force should be formed by the Government to look into mechanisms to curb the rising prices of homes, said National House Buyers Association.

Its honorary secretary-general Chang Kim Loong said the current prices of homes were ridiculously high.

“These are beyond the reach of upcoming young professionals, who cannot even afford their first home,” said Chang, adding that property prices in the Klang Valley had risen by 25% to 30% over the past five years.

“For example, one area that should be looked into is the hidden costs incurred by utility contractors, which are then transferred to developers, causing property prices to be jacked up.

“Ultimately, the task force’s role is to find ways to make property more affordable,” said Chang, urging the public not to listen to arguments from groups with vested interest in the housing market.

Anonymous said...

all banks will never say there is property bubble bcos they want to make money. the banks in USA never say got property bubble until the bubble burst two years ago in USA, and now there is a recession.

Never trust bank loan officers, lawyers, real estate agents and crooks.

Anonymous said...

This reminds me of the hey-day before the 2008 crash in Britain. Just before the crash, British banks were lending up to 110% of the value of a property. Any form of affordability test was circumvented by mortgage advisors who encouraged buyers to “self-certify” their income levels to declare an inflated income.

Anonymous said...

for those who choose 2 stay in areas where property prices have gone "nuts", it's ur decision, so y complain. i still believe there are many areas selling DSL at affordable prices, suitable for fresh grads provided u don complain. Lestari Perdana & Puncak Jalil which is so close 2 "sky hi" BK r some of the options. Subang Bestari a.k.a. Subang 2 homes are still affordable and if u r daring enuf 2 bet that the MRT Line & RRIM Project development will turn in 2 reality, then y not take the "plunge". This place is also located quite close the "sky hi" Kota Damansara.

Further away, there is always mahkota cheras which u can get a fairly new & nice terrace home for RM300K or so. Good infra & facilities here...so wat d heck is BNM trying 2 generalize dat "the bubble is forming" and they need 2 implement measures 2 cool it down. Don just take USJ Heights, BK, KR, DPC n other "sky hi" locations which r launching new homes at prices close or more than RM 1 Mil as d yard stick.

Anonymous said...

Rocky, you're link to the Malay mail article seems not to be working

Anonymous said...

Malaysia's property sector is set to see its biggest residential boom in a decade, led mainly by medium- to high-end landed properties, says a research firm. The sector may peak sometime in 2012/13 before going into a potential slump, OSK Research Sdn Bhd said

Anonymous said...

Malaysia’s capital is experiencing its first property boom since the 1997 financial crisis, but the warnings signs are there.

Anonymous said...

There is a huge oversupply of condo units already built and for sale in KLCC area. Most of the units are sitting empty waiting for renters or buyers.

A number of agents I have speken to have confidentially told me that they expect a major correction in prices within 18 month window.

A lack of any significant end-user/renter demand for these empty units, in addition to the number of newly completed units coming to KLCC area market over the next year, will create an excellent buyers market over the next 6-18 months.

Rental prices are already under significant downward pressure due to oversupply. This is normally the first indication of an impending correction in valuations.

Anonymous said...

Factual evidence of the oversupply can easily be found in in the sale/rental listings in The Star or Iproperty. You will be astonished at the amount of supply available.

Its economics 101....market forces dictate that prices will restart/continue to fall significantly until there is more of an equilibrium in demand/supply.

Anonymous said...

Property boom or scam is being allowed because of Datuk Desmond Lim Siew Choon and his wife Datin Cindy Tan Kewi Yong, the new china kingpins in Putrajaya.
Well who is this Desmond Lim? Well he started out with Khuan Choo Group and then moved in with the Domain Group which had a lot of projects from Bank Negara Malaysia.
Desmond Lim is a known financer of DAP, and has basically taken over Equine's property business in Penang.
Ya, Desmond Lim has a boring property company listed on Bursa Malaysia called Malton Bhd. Actually, Malton is not that boring, if you remember its former name GADEK CAPITAL BHD.
Yes Gadek Capital, the Anwar Ibrahim machai. However with the fall of Anwar, Gadek was eventually taken over by Daim Zainuddin's boys and eventually became Malton.
You see, Desmond Lim is a Khun Choo of Daim, and they have their hands all over Putrajaya.

Anonymous said...

Woi cina x erti eja kuncu kah. Bangsat betul. Kuncu lah bukan Kuan Choo atau Khun Choo .

Anonymous said...

Grandpa, u are an irritating person. Dont try to promote your business here.

Anonymous said...

Rising prices only help keep the chiness happy, while the kampong folks and the rubber tappers are slapped with rising prices of esential goods and inflation that seems to be heading towards the hyper realm.

Anonymous said...

Behind every cina, there is a Malay, and behind every cina, there is an Umnoputra

komeng said...

before 1997 we do to be the punter on stock market, now beware the property punter .... greed is good

Anonymous said...

Rocky what are you trying to say? that we Malaysians are kera??? that the government, banks and developers have duped us into buy properties at inflated price, so as to portay a booming economy? Your double speak, and the pic of Bubbles is confusing me. Please talk straight and tell us directly.

Anonymous said...

whats wrong with the Chinese. First Jho Low (JOLOK) and now Khuan Choo (KUNCU). Sengaja nak memperolokkan org melayu iye. Bedek dan sindir. Cis !!!!!!

Anonymous said...

When the music stops at the Property party, they shall sing bye bye miss Chee Bai, took the chevy to the levy, but our FLY are dry dry dry.

Des Lim Lan Ciao.

Anonymous said...

Blame the chinese developers la!!!!

Why u cainis never make reference to ur race when its clear u cainis crooked developers are making tina of money?

But when a Malay teacher said sumthing wrong, its the Malay govt's fault!

That teacher did not swindle any of ur hard earned money into buying overpriced homes!

The crooked cainis property developers must be booked for this travesty

hitman said...

then, i think, speculators or genuine buyers should wait until the bubble burst before buying any properties... it will be cheaper then...

Anonymous said...

Aiya, abang kuncu, we finally have a thread that talk about issue every Malaysian care, and without all the maki hamun, and seem like many keen to participate and put forward their view, don’t spoil it la.

I am puzzle why many new launch with a price tag of half a million can be sold out within days, while the older house at the housing estate next to it with similar land area and perhaps slightly smaller build up can’t find a buyer with a asking prices of less than 250k?

Rhan

Paddy said...

Its a well known fact around the world that developers build according to market demand, that being said, they will be on a building frenzy until that happens. Eventually starting again once the market picks up, pure economics.

LoL @ Grandpa

If its true that a bubble burst imminent, why would anyone in their right mind buy into they market. Shouldn't we be figuring out the best time to sell before hand?

Anonymous said...

United Malayan Land at RM1.56 is trading at 37% of RNAV of RM4.21. CIMB is calling a Buy on this CapitaLand associate trading at a P/E of 6.8x. Excellent landbank in KL and Iskandar.

Anonymous said...

Ya tu Rhan,
Across our shops hardly 300mtrs away, launched last yr at RM860, next yr baru siap..

now asking price RM1.2m..and we are kilometres away fm the nearest town!

Crazy.. either they got loans from AhLong to buy those units upon launching or, Mr Developer is doing the "ALL UNITS SOLD OUT" magic tricks.

PERWIRA

Anonymous said...

Comelnya Bubbles.

Anonymous said...

When price go down, u complain, now go up also u complain. What is it you want? Want us to live like in a communist state????

Anonymous said...

Property market going UP.
And Gold going UP.
And long term treasuries is soaring!
And world markets are going UP!
But USD is falling
And Japan is now on ZERO percent rates!
Stock mutual fund is UP too!
Insiders selling is also UP too!
Bura Malaysia is also UP too.
Humpty dumpty is going to come crashing on the floor too

Anonymous said...

Hitman :
"then, i think, speculators or genuine buyers should wait until the bubble burst before buying any properties... it will be cheaper then.."

NO SH1T SHERL0CK!

Absar @ Go Go Scooters said...

Yeah the banks are fully supporting the economic bubble thats just about to burst because they don't have to worry.. they are TOO BIG TO FAIL!

They'll get bailed out and earn their bonuses while the rest of the population gets kicked out of their homes!

Welcome to capitalism!

Anonymous said...

Price of petrol going up by 80 sen, I bet that means price of property will shoot up by 80 per cent. Barang Naik, memang PADAT dgn Barisan Nasional.

Anonymous said...

Malaysia got so many rich people, that is why high end property prices are going up.
Too bad, Malaysia has much more poor people than rich. To take advantage of the booming property prices, the government under the ETP plans to spend billions to build more high end property, among them the Naza Matrade project, the Jalan Kuchai development and the many many towers to be build as written by the blogger -outsyedthebox.
The government tells us that by building all these towers, Malaysia will become a modern country. That is the dumbest thing I have heard, since Liverpool appointed Roy Hodgson as manager.
It is akin to telling a taxi driver, I'll buy you a plane, and thus you shall become a airline pilot.
A modern country is not measured by how many towers you have, rather it is measured by brain power and per capita income.
Seems to me, Malaysia is now following the Dubai model, build skyscrapers everywhere, create a construction based job sector, attract some highend tourist here and there, do some financial deals and shoot some hollywood movies here.
Too bad, they havent learnt much from the Dubai experience, on how it went almost bankrupct.
You are too big to fail if you are a caucasian giant, but if you are brown skinned, the thinner your planning, the harder you fall.

Its me Boss.

Anonymous said...

High-end properties, especially condomimiums costing RM1mil and above, are still enjoying good sales backed by favourable financing, although some buyers are turning cautious in anticipation of upcoming budget measures to cool the property market.

Anonymous said...

It is a cycle thing and good for the economy. The price has to adjust from time to time. I hope it will really crash, a big crash this time so that only genuine business men can survive. Those who make quick money have to go and replaced by new greedy ones. This is just a process.

Awang Junior

Anonymous said...

The Rakyat will suffer when the buddle burst. Income and expenses doews not match.

There must be better ways to control the sudden price hike and protect the Rakyat. The foreigners can afford all this hike but please protect the Rakyat.

Suggest that the Government impose 10% to 20% transfer fee to the foreigner and use the fund to create more affordable homes for the Rakyat.

Malaysia Property said...

The property agent that I bought my unit from told me she had a client who's a HK-based company from China, and they bought 61 units in the same condo (YTL Saffron) for speculation - go figure!

Anonymous said...

I support Anonymous suggestion to impose levi 10% to 20% to foreigners on any puchase or sale transaction of houses and putting the fund for Better Public Housing and amenities.

This will reduce Speculation and foreigners will buy truly for investment purposes only.

Anonymous said...

http://www.nakedcapitalism.com/2010/10/jim-quinn-consumer-deleveraging-commercial-real-estate-collapse.html

For kaki real estet sama yg gila nak ekspot ke Amerika ....

Keturunan Jebat

Anonymous said...

... frankly, in my area there are still vacant apartment -- speculation lah ... :D ...

Anonymous said...

It depends on the money supply curve, bond curve, interest rate curve and the growth in GDP.

I'm currently out of MY, but am waiting for the property sector to burst / deflate before making a few purchases.

RedCloudbuster said...

As long as the property is a landed one, no matter what magnitude of property burst there could be in the near future, there should be no qualms of buying one right now if it is for a long term investment.

We live in a capitalist society where everything goes by the rule of supply and demand with speculations aplenty in the market since the beginning of the formation of the country.

I bet you that even in a scenario where there is a property burst in the klang valley, most of the very same people who are complaining about the current high prices will still not be able to purchase the said properties even when they have fallen to lower prices.

Land is getting scarce in KL. We cannot expect the next generation to be able to still afford buying landed property in their 20s or 30s.

Anonymous said...

Brother in law bought kemuning utama house for RM305k in 2007,price went up to RM350k,RM420k and now RM520k with each new launch which is closer and closer to the high tension wires. Furthermore it is opposite Sri Muda area which was massively flooded some 10-15 years back. Makes any sense? Developers and property agents are to blame for the nonsensical rise in house prices.The bubble is going to burst very soon and good luck to those with massive housing loans.

Anonymous said...

Apart from the political views, if Dr M ever made a financial related crash, such as awarning on possibly property bubble, you know it wasn't merely a joke.

My wife and I own another landed house, just sold it. How could you earn hundred thousands in such a short time? Only crazy time like this.

The economic gurus always said, Bubble only occurs when / after there's a huge spike, so there might be some room to 'grow' before it blasts.

But we also believe, bubble only happens as humans were conquered by non-satisfied greed.

So we took the money, off the train.

Selena Mcbride said...

Property values are kept on growing nowadays as well as the tax for the property. I would also agree that sometimes the government has never think of stopping by allowing the greedy developers and property investors play speculative property market. This is one thing to consider on this matter.

It Contractor Mortgage

mortgage lead said...

If you can recognize the patterns of the formation and bursting of these bubbles, you will be able to ride the flow and take advantage of it by planning your real estate purchases accordingly. You can even earn from flipping properties when you get good at this.