Bubble property
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Keep hearing people saying don't buy property now, property bubble will burst soon for many years now and it's still not happening. Some say no such thing, it will either be stagnant or increase. Not sure if it's the right timing to invest in a property now. Any advice?

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Everyone buy and sell during times are good or bad, it's all about the holding power of the investor. For property prices, our pricing has brought forward the price for 10 years later. So, in another words, the next price hike will be 10 years later, the investors need to have holding power of 10 years? just my personal opinion, may not be right.

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Hmm, I don't think property bubble happen so easily. But somehow it's quite frustrated that we saw the property price are keep going up all the times. Many youngster nowaday can't really afford to buy a house now. Besides, I think if buying property that a bit further from the city still able to get reasonable price.

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In my opinion, when the time of property bubble burst (if any), the higher end market will effect the most. Low to mid end market will not effect significantly =, either the prices will be stagnant or slight increase, as current housing needs is in demand.

Having said that, during the burst, i believe buyer's sentiment is low so does the property transactions.

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May be will burst soon but dont know when as nobody knows. Even then property price will stagnant might not increase. A lot of people waiting for the property price to drop but dont forget our malaysia ringgit depreciate at the same time.

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Yea, that's true. I've also seen quite a number of people rushing through trying to get a place now before April when the GST kicks in.

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according to many property expert and property consultant after their deep research, the result is that bubble won't happen in Malaysia. their perspective and professionalism points of view, due to overall aspects in our country economic, the GDP, but ... many people buyers or investor has certainly will have 'wait and see' in this moment as most people think GST will bring an impact on the property market. basically GST for sure will impact for commercial type property as the 6% of the commercial property is a BIG amount to pay.

well, we can get more info and GURU points of view by consult our famous Mr 'Know it all', Mr GOOGLE !!!

anyway peeps, all the best is good property investment :)

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I totally agree with Johnson! Exactly my thoughts :)

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Hi Mag, good day. The market will cool down in terms of lesser transaction but we actually looking at commercial property will be HOT a bit many commercial investor are come into the market for grab their commercial property investment before 1st of April. Is gonna be like when we know petrol price gonna increase this mid night then all people quickly 'the current not yet increase deal'. And bear in mind that bank need to disburse the money to seller before 1st April as well. Coz, even SPA sign before 1st April But money disburse after that date is consider kena 6% as well.

This info yet to be confirm due to I heard about this last night. Need to clarify with the right channel.

So, guys... If u been looking at commercial property then better act fast. All the best.

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Nowadays it was limited land in KL Area, we are staying in prime location area, MRT coming soon, a lot of new shopping mall coming to KL, new generation more coming working in KL, if you're invest or buy property in strategic location won't be effect so much even economic down, unless the investor didn't manage the property as well, new generation prefer new life style condo compare with old property, you can seen now many project is Condominium even 3 storey Terreace house or Semi-D. Foreigner also can buy smart phone, we must follow the trend to go & raise the standard of our country same like Singapore, Hong Kong, Korea. Don't forget our country got oil & gas, few natural disasters, I can say we were born in the blessed land compare with Japan, China even Vietnam.

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Actually i am still very possitive to klang valley properties market as there are still a lot of properties within the affordable price range and the healthy growth of the property price. To be honest, i heard of so called ' property bubble' from others since year 2004 but UNFORTUNATELY the properties price keep climbing up. Those who have strong holding power definately wont be affected unless you buying property like gambling:) . We should study or understand more about the factors that will boost up the price of properties. Please bear in mind that any kind of investment need TIME to get harvest and appreciate.

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Actually... even if the property bubble hits, it really depends on the location. It will always hit the most outskirts of the city first, before it moves inwards. And places like KL city will never be affected. Because it's basically a matter of demand and supply. Properties within the city will always be in demand, as are houses in highly populated places like Bangsar and TTDI. So it's safe to say that these locations are like the peak of the mountain which will always have water. And that locations such as Semenyih maybe? Or even Rawang where the property boom is hitting? These places might be affected if the property bubble bursts.. mainly because of it's location. A good example is Bukit Beruntung. It was a ghost town for many years and property there is still extremely affordable.

The key in investing in properties I believe, is looking for the next satellite city. For example, places like Kota Damansara which was no man's land less than 15 years ago which is still host to many low cost apartments, or Ara Damansara which had abandoned buildings (like The Maisson) until Sime Darby moved in.

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Just had this same conversation a week ago with a couple of property experts who has been in this industry for more than 10 years, mostly said no such thing. Property prices will only be stagnant or increase, it will never drop drastically. Even if prices decrease, it will be a very slight difference that will not make a strong impact. Of course, exception to those minority owners who are desperate to sell-off quickly for $$$.

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Hayden you are so true, we cannot just judge the properties price are dropping because of minority of house owner selling their properties with under market value. There are numerous of properties selling with cheaper price as well when market is good ...

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I had a talk with the MIEA President recently. According to their statistic, the property had burst in 2013 and 2014. Now the property transactions volume and prices is picking up slowly

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@yap_rony Yea, actually I've read somewhere before that property bubbles "form" all the time, and it's only a matter of how drastic it is that the market actually takes notice. And it also depends on the area as well, that it's not an overall blanket bubble across the nation on all properties.

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transaction is running slow and the house owners are willing to negotiate but i dont think the properties market will burst as there are still many affordable properties in the market.

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I think the property bubble is just a malaysian dream. ;p

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Whichever, those who prepare will still win.

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this is the best time to find property below market value. Buy on fundamentals ...

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There ARE "property price adjustment" Now till next year..
What is that?
1)Type of property will hit the most - those with many units and new development and of course the profit margin - FLIPPER or SLIPPER

2) Type of property and Choice those FLIPPER or SLIPPER will sacrifice first (hand slaughter?) - they Most likely decisions will be based on : -
Most income-generated?
Most Money Making?
Most Saleable?
Most Convenient?
Most Potential?

Crucial Decision :- how long can i hold?

3) Our Malaysian income affordability bracket - income vs instalment. How many people can afford houses more than RM3000 to RM4000 instalment? First, look around your friends, you should notice it and secondly why those properties especially condo selling at "that price" and still got people buying, who are actually the purchasers?. Gen Y? Gen D? Developer mimic tactics? SOLD OUT but ...

4) After GST implementation, we see a drop 15%++ in retail market and also 35% drop in housing loan approval, we are in a shrinking property market and our household debt ratio is actually and mathematically should be burst but our "confused" government published data for household debt ratio is always not "BURST". 99.99%

5) Holding power - who can hold is the KING...and who can hold and buy is the .....

Welcome on broad, Now tighten your seat belt...sit calm and be patient ... you are LANDING and is till LANDING... see you next year..

Gen D = Generation Dinosaur :)

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@HJ, if you are expecting a property bubble to burst to buy your property for own stay, you might be disappointed depending on the type of property you are targeting.

Property bubble might burst but the properties impacted most are super luxurious units. For example a luxurious of condo near KLCC that costs RM2.5 mil during a crash might came down 50% to RM1.5 mil. Is this the kind of property you are targeting? If yes, then you should wait.

On the other hand, if you are targeting property that cost Rm400k (where the mass population are interested in), it is very unlikely it will crash down 50% to RM200k. First of all I doubt this category of property will crash at all. Second, even if the price come down, there will be a buyer immediately snap it at RM380k.

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Just read this too. Kinda agree.

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Lol, damn funny, theoretically, if high end property burst, it will bring down the value of other properties as well.. for a good example, when a new apartment is sold for 100k, the surrounding old houses prices will appreciate as well, meaning people would say my old house would be worth 50k now instead of 20k. Expect the same on reverse as well. LOL. if i can buy a better quality unit at rm 500k, might as well i wait for 700k unit to drop to 500k. and if i can buty a 300k unit, i will wait for a 500k unit to drop to 300k... that is the mindset of people nowdays, and people would not easilly buy into developers or flippers "sales tactic" anymore. If a KLCC, unit can drop in value, the perception that location holds value will drop. because that reason was used to sell the unit at the first place. All the developers/agents sales tactic which was pitched to the mass buyers just backfired on them. The excuse that because it is a luxury property, it is in a good location, expats will buy and stay, ect ect will not hold justification anymore. Singapore and Saudi in a pinch now, industrial activity is dropping, Saudi having to sell overseas holding to buck up their reserves..expect these two main buyers to sell off properties now.

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Well, I've been hearing this 'property bubble bursting' thing for a very long time now since a couple of years ago and until today when property market is slow, property bubble still hasn't burst, property prices are still pretty much the same.

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I think property wont burst until the economy and banks start to burst first. Its quite resilant, but it will burst sooner or later, when the economies in a pinch. High oil prices for the past 4 years, when the boom start.. no problem.. it would not burst. With so much layoffs now, and banks getting lesser margins, and business is recording low profits.. what do you think?