House price hike likely
Penang properties said to increase 5%-10% due to more costly cement
GEORGE TOWN: The selling price of properties in Penang will soon surge by 5%-10% following the recent move by Lafarge Malayan Cement to raise cement prices by about 6%, according to housing developers here.
Following Lafarge’s announcement, a 50kg bag of cement is now priced at RM17.50, compared to RM16.50 before the hike.
Penang Master Builders & Building Materials Dealers Association president Lim Kai Seng said 60% to 80% of the materials used for a building comprised cement and cement-related materials.
“This is why an increase in cement price will have a significant impact on property prices.
“The other cement manufacturers in the country have sent signals that they will raise prices very soon,” Lim said.
There are six cement producers in Malaysia, namely YTL Cement Bhd,Tasek Corp Bhd, Cement Industries of Malaysia Bhd, Lafarge, CMS Cement Sdn Bhd, and Holcim (M) Sdn Bhd.
Only Sarawak-based CMS Cement has confirmed it would keep prices at the current level.
Lim said the price of other essential building materials such as sand and aggregate had also increased.
“The price of sand is now between RM40 and RM43 per cu yard, depending on the grade, compared to RM38-RM40 earlier this year.
“The price of aggregates is now at RM21 per tonne, compared to RM20 per tonne earlier this year,” he said.
House prices on the island are expected to rise by 10%, while in Seberang Prai, housing prices are expected rise by 5%, following the hike in cement price.
Kuala Lumpur-based developers such as Mah Sing Group Bhd and SP Setia Bhd with projects in Penang will continue to absorb the cost of the cement price increase.
Ideal Property Development Sdn Bhd managing director Datuk Alex Ooi said the company was now revising the selling prices of its new projects upwards, due to the hike in cement price.
“There will be at least a 10% hike in the selling price of properties on the island.
“A hike in cement price means the price of all cement-related products such as concrete and bricks will rise. Construction cost will go up by between 15% and 20%.
“We expect the rest of the cement manufacturers in the country to adjust the price of cement upwards in the next one to two months,” he said.
In addition to the rise in cement prices, the cost of labour and transportation charges have also increased this year.
Tambun Indah Land Bhd managing director K.S. Teh said the cost of labour had increased to RM45 per day this year, compared to RM35 a year ago.
Transportation charges for sand have increased to RM450 per truck load this year from RM400 a year ago.
“There is also a labour shortage, as many Indonesian workers have gone back to Indonesia, which is booming currently.
“The selling price of properties will be impacted by the hike in raw materials and labour costs.
“However, Tambun Indah will absorb the increase in the price of raw materials until year-end.
“We will revise our pricing next year,” he added.
Teh said the selling price of properties on the island would increase more because of the additional transportation charges to ferry the raw materials to the island.
“This is why the increase in property prices on the island will be around 10%, compared to about 5% in Seberang Prai,” he said.
Tambun Indah will be launching next month the Straits Garden@Jelutong on the island, the Pearl Residence@Pearl City and Pearl Indah@Pearl City projects in Simpang Ampat.
The Straits Garden is a high-rise project comprising 183 condominiums priced from RM688,000 onwards, while the Pearl Residence@Pearl City and Pearl Indah@Pearl City schemes comprise landed properties priced between RM353,000 and RM508,000.
Mah Sing managing director and chief executive Tan Sri Leong Hoy Kumsaid the cement price hike would have less than a 1% impact on construction cost.
“Most of our projects have been tendered out and the construction costs are already locked in,” he added.
SP Setia property (north) general manager Khoo Teck Chong said the group would absorb this impact for now to be competitive.
”If other raw material prices such as bricks, rebar and tiles were to increase drastically, we may then have to review and adjust our property selling price accordingly,” Khoo added.
Meanwhile, the Malaysian Competition Commission (MyCC) chief executive officer Shila Dorai Raj had said the price hike by cement manufacturers did not at this juncture warrant a formal investigation.
“Price increases are by themselves not anti-competitive in nature. However, if there is evidence of collusion among the competitors to increase prices, this would be of concern to MyCC and may merit an investigation,” she said.
Source: The Star
Even not affordable.
how many kilo’s of cement do you need to build a condo or a house ?
seems excessive to me, it cost 1rm more for 50KG so the price rises 5% to `10%, bull shit
lets say a condo costs 500,000 RM and a 5% increase is due, thats 25,000 ringit. Does a condo need 1,250,000 Kilos of cement to build it !!!!
Developers are taking advantage again…cements price hike 5% and they raise the housing price by 10%..like Mah Sing MD said, the actual impact of cement product cost is only 1%!
Macam gula 1kg naik 1 kupang, kopitiam coffee 1 cup oso naik 1 kupang.
Kurang manis same price one. Don’t know whether people will drink less kopi with the price hike.
this very interesting, very informative good news …. like it
thanks Ken ! good job ! keep it up …
Another gimmick from developer to market their house before price hikes again.
Wow, one more factor to keep Penang Island property price continue to be rampantly increase. Great to see this trend so that many invester can make some more money.
Only developers make more money…subsale market is terrible!! all paper gain.
@Paranormal
yeah, great to see your children being not capable to afford a house & have move to further away from you.
Following the continueuos price increase ….. I just don’t know how to describe our greedy developer….only can #¥*€x%* or tl knn
anything that goes up… will come down… newton law.
just an excuse for developer to raise the price!!!
@Ops
Yeah , I’m with u , just wait 4 another 1-2 yrs we will see ! The subsale market is really terrible now especially those projects from SP Sxxxx & Mah Sxxx G , mostly occupied by bangla after oc obtained .
Just do a flashback of about 20 years. When and where did you see properties drop the price? The only thing that drops is our Ringgit against all other regional currencies. If you continue to put your money in the bank, I wish the god will bless you.
that was exactly what the american banks & developers said just before the property burst in 2008 !!!
people never learn …
Was it so exactly? Or you interpreted it as exactly? We will see.
@Ops
Haha, Newton law didn’t apply on ‘finance’ or ‘economy’. The price for a double storey Semi-D in Lip Sin only RM50k in 1980th, after 30 years, now can sell at RM800k (very old house). So, you want to see the price drop till RM50k? I would say drop till RM500k also impossible.
@PG
yes, it happen in 1998 economic crisis in Malaysia, However the max price drop at certain area is only 20%.
@yeo
nope 2008 crisis happen in USA, housing price at Penang still rising. Most of the hosing price grown up by 20-30% in 2-3years after the crisis.
Let do a simple calculation, inflation rate, let put 3% a year (should be more than that), 10years is equal to 30%. Economic crisis cycle most likely happen in every 10years (may be i’m too optimistic to assume current economic pattern still same like the past). Count from 2008, the next one could be happen in 2018, still 6years to go but the housing price will grow up for another 18% at least. What is your rise if the economic crisis come to you. Also think about currency, RM will lose it value if crisis happen in Malaysia. Your money in bank now could be RM100, after 6years, you might left RM80 if you keep your money in bank. All the things are linking to each others. So house or money is more importance, just look on USD, due to the crisis, the money value drop more than 30% once.
@PG
yes, it happen in 1998 economic crisis in Malaysia, However the max price drop at certain area is only 20%. *Penang island
rise by 5% or 10% ,or 50%.do’ matter,because still not affordable.
@WTH
Ya, I saw it too. But, the 20% (max, but I didn’t see this much) deficiency covered within 3 years. I also took the opportunity to buy my 1st house.
The point is, you need now, you buy now or never. Labor, material, transport, petrol, land etc will never get cheaper as well.
Don’t support the blood sucking developer, go for sub-sales, I also do. Lots of bargains around.
What @Concern n @WTH said are exactly what I meant. You need a tool to fight inflation, property investment is one of the safest investment you can make if you compare to stock, trust, commodity, bonds, insurance plans etc.
In short, your property will not become zero value regardless of any event, unless there is war started in Malaysia. The rest of it, risk of losing everything is there.
My old man used to say, human can produce almost anything except land (of course you can argue there are reclaim lands, and it aim’t going to be cheaper too).
@PG
Another option, are you able to make more money faster than inflation with the 24hrs you got everyday? Concern is are you able to maintain your speed to generate the money before you leave the world.
Every property investor are leveraging the actual money they effort to push up the housing price. Just share a interesting link below, how US crisis started.
http://www.youtube.com/watch?v=bx_LWm6_6tA
Hope this is different in Malaysia, my advice is to start your investment if you really effort to lose it, leverage your investing to get extra income is dangerous.
@PG
@Concern
Like
@WTH
In fact, we were in deep shit economic crisis in 2008, and this year 2012 we are in another economic crisis as well, the cycle now is 5 years. Robert K predicted another big shit and economic crisis human ever have in ~2016. During these timeframe, penang property slow down the appreciation, but after these crisis, it will boom for another 20-30% appreciation each year.
@Economic Crisis
Hi, what is your final points? In short, crisis comes and goes, used to be 7-10 years every cycle, but now 4-5 years. The shorter the cycle, the least the impacts. But, if you pull a longer period data together against the $, it’s still a straight line to the north east.
Robert K did his good job to program you very well. His “theory” can be true but just a guide or idea, it not really tell us an actual number. 20-30% appreciation could be too much, unless suddenly your house place turned into a hot area. Back to my advice, invest based on what u are affordable. What down will go up again, your investment will never hurt you if you able to handle it. If you leverage your money, it is ok if you know when is low and when is high. High risk high return. Real investor can lose millions dollar if they made a wrong investment. Are you effort to lose a million dollar? I’m not now, but hope i can turn into a real investor one day.
the price can continue to up and it will create got seller no buyer market in penang soon
But in Penang, the supply is still not enough to meet high demand of population growth, but house price in Island hike will cause more shift to mianland, so, no wonder the population at mainland consist of more then 54% of total Penang State population. The hike in property price will make a clear gap between Island and mainland, those rich will live on island while average will live on mainland. Due to low burden on house repayment, i would say mainland penangites can enjoy better quality life compare to those on island, generally. Penang Mainland, is booming.
@Ah Dog
says who? so many empty units
How many ppl can afford or willing to take 600k loan just for a 1000sqf condo in not so popular location?
@Ah Dog
Penang Island mindset never same to Penang Mainland, mainly due to the convenience and low crimes compare to mainland. Also, a lot of outsider from other states still prefer to live in island and most of them still effort pay 300k-600k condo. I’m one of the example. After my retirement in old age, may be i will think about mainland or my home town. No matter how, the house price appreciation in island always ahead mainland. You still effort to buy house in mainland next 10yrs, 20yrs or 30yrs later after you sold your condo in island. But you sold your landed house in mainland, it will not guarantee you able to buy a unit of condo in island. Do you aware the house price in mainland dropped more than 50% in economic crisis in 1998, 800bil properties unsold, most from mainland. Then this is not booming now but become bombing. At mainland, shop lots and lands are prefer investment compare to house.
You cannot leverage the inflation if you buy house with bank loan. the BLR will rise accordingly and it can kill you. The blood sucking developers are creating false impression of hot market by the DIBS package. Too may speculators (especially by insider of developers). Let see how it go when all those DIBS projects finally completed in 2-3 years time and speculators start dumping for quick profit.
when affordability cannot catch up with the price, the hike would remain stagnant.
problem is, do we see a positive increment in the job market? If such fundamentals is not backing up realty hikes, we would be in deep shit very soon.
@Big Bro
Yeah & that 2-3 yrs really worthy to be wait : )
Car price will drop soon so as the property price. Buyers just hold ur cash and wait for the day to come
@Mankind
show me your analysis and the impact to the market
according to reliable sources, property prices going to drop sharply in 2014 ~ 2015, up to 40% drop !!!!!
all these false demands and daylight robbery prices created by greedy blood-sucking developers and its agents will come to an end ….
Which reliable sources you are referring to? According my reliable sources, you sendiri talk sendiri syiok
@Mankind
Car and house never correlate each other, car is negative asset, and house is positive. You want to talk about car, let me talk to you on PC, an Intel Pentium III 1GB cost me RM4,500 in year 2009, now Intel Ultrabook with i5 cost me less than RM3000, and yet, more than 100 times powerfull than Pentium III. In year 2009, N-Park only cost RM115k, now, RM300k, and yet, you get the same thing but a bit old in both exterior and interior of the house.
@Ishihara
Will this comment held responsible under Section 114A? If it is a false statement that create unwanted disturbance in property investment market.
property prices are expected to drop next few years due to oversupply ….especially condos & apartments too many already
Probably yes and no…
Yes, a tad too many highrise with monopoly by certian quarter maybe..
No, because i heard that in 2007, 2008, 2009, 2010, 2011 and now 2012… It’s either you go in or you hang… I opt for the latter…
there also too many greedy speculators … not genuine buyers .. bubble will burst .. prices drop drop …
It’s all option. It’s all human behavior to be greed. What if you are in the shoes of developer, you also want to max your investment. Same goes to all sub-sales. But poor people like me will suffer due to house price appreciated recently.
Not for speculator, if you are looking to setup a home is best to buy now or developer will used this reason for another hike next year. !! I bet they will do it!
In fact, it’s not necessary to focus on new project. We can start to look from the secondary market. For instance, properties with aged from 5 years onwards. Do not buy from the famous developer as most of their project is overpriced.
Second, why there are a lot of news stated that the property prices are expected increase due to cement, labour etc? In addition, some valuers are stated that the property prices are in healthy level and no bubble. There is only one reason–>developer wants all INVESTOR or BUYER continue to purchase or invest in property.
Let’s think the other way. Since developers think that the property price is expected increase. Why not they build the project first and sell it later. Will it be more profitable to them?
The developer is ONLY divert the risk to investor / buyer at the beginning. If the property market is down, what is the developer earn for? So, they will prefer you all continue into this cycle…….debt..debt…debt until subprime issue in US.
Normally smart developers won’t tell the world they will increase price for their future projects because they have not even launched those projects. Who the heck knows their original price or whether they have increased their prices or not.
SP Setia and Mahsing are smart. They chop you without you knowing. This is the current market value they will say.
You have been cheated by your sources, go whack them.
@Ishihara
Why 40%, how you calculated?
@jim8
Why oversupply, many of my frez still not own a house and plan to hv one
@CK
I hear that too. That why i drop a Boulevard unit at 2010, ~1000sqft, 300k after 7% discount, now selling price at around 450k.
@Buyer
if investors, you need know where, when and what before you decided. For a owner,it is fine as long as you are comfortable with price and which to hv better environment for your family.
@Unknown
if build and sell later, small developers will be eliminated from the market. Big developer will monopoly the market. They can put any selling prices they like since no empty house to sell in the market unless you buy from them.
@In laws
like
developers always hav the unfair advantage … while genuine buyers are always at their mercy , poor suffering souls .. when this situation going to change ???
what goes up will eventually come down … same for property prices but when is anybody guess !! just dont be the last one holding the hot potato when the bubble burst ..
I just hope nobody get burnt by the hot potato. Whoever it is, it’s still going to be an ugly affair. When such disaster hit us, nobody would be spared. Everyone suffers. It’s not just investors, flippers, developers or government. It’s the whole economy come toppling. And nobody is going to have that last laugh. We are all in this together as long as you’re a Msian!
The first thing to do to reduce the speculation and reflect real market demand is to ban the Developer Interest Bering Scheme (DIBS) to minimize flippers. Some how the loan interest (claimed to bear by developer) is already factor into the selling price. Since initial down payment is very low, greediness lures speculators to buy additional houses for “investment” creating false demand, which they may not afford to pay the future installment but just dreaming for quick turn profit. Eventually it will burst, that is when all those DIBS projects near completion. Now developers are trying to ride the last boat.
@heehee
Speculators/investors/developers are the one who suffered if price go down. No need to ban DIBS. Investment sure got win got lose one. Real estate investment is still more market driven compared to stock market. Look at how Sime Darby and E&O boss played out the minority shareholders…
@In laws
Only buyers suffered when bubble burst, the selling price already locked down once signed S&P. Developers are already laughing to the banks, and they got the cash in hand to “sapu” again when market down.. Real buyers for own stay should buy from subsale market (somehow also cheaper) and should let those blood sucking new projects only half-sell with insider buy. Let the developers ‘swallow’ the unsold units since they are so confident about the future property market.
@heehee
So you are specifically refer to new projects. How about those new projects with many unsold units? Don’t think developers still have the mood to laugh if general market price went down.
Btw, there is no such thing like “subsales market somehow also cheaper” in the property market. The price is always decided by supply and demand.
I think everybody must admit these 2 years there are too many new condos projects launched in Penang, many are DIBS type and too many people buy just hope to flip after 3 years. Bubble sure will burst, the only matter is when and how much it drops.
http://en.wikipedia.org/wiki/Economy_of_Malaysia
Understand what is the different of Malaysia compare to other Asia Countries first. What will really affected Malaysia economy when facing economy crisis? Population, Jobless, demands, inflation, politic and religion. All these link to property price directly.
“Sapu”, “blood sucker”, “price down”, all are not the indicators that you can refer to. Go back to basic, if the number calculated shown it still hv room to go up further, it will go up. Like casino, you play with your luck, they are “doing business” based on the calculation. Big corp effort to employ a consultant team by paying them millions of dollar. A conflict here is so called “big corp” are they really “BIG” enough!!!
Logic of Investment= Risk. Invest your time to work for people–> Risk=Jobless, building your business–> Risk=Capital, Invest share–> Risk=company bankrupt, property–> Risk=actual value(this is always the big “?”). So no risk no gain, high risk high gain.
When the property price drop 40%, the house owners might be unable to pay off the loan, you may see many units in auction, more suicide cases, then bank suffers losses.
Ultimately, your FD, cash in the bank and our dearest EPF will be affected.
It’s a chain effect, do you think government would like to see this?
@cindy85
When the property price goes up 20-30% again in the next 3 years, all pessimistors will regret. I am optimistor. You bet the price will go down 40%, I bet the price goes up 30% by 2015 for Penang island properties. Let’s see whether your sources or my gut feel is right.
In my humble opinion, gold is the safest investment. Property should be 2nd safest as there is slightly higher risk involved.
@cindy85
History shown that during economy crisis in 1997, government had depreciated RM from RM2.50 per USD to RM3.80 per USD. All our FD, cash, & dearest EPF all affected, and until today still not back to that level. Bank Negara had raised the BLR to >12% in 1998, and there were many abandoned construction projects.
@WTH
Go back to basic, the housing sale indicator shown slow down already. Also this detailed academic study on Malaysia has shown that such housing market is unsustainable if affordability is low and speculative activities is high. Long & detailed article, You can straight way refer to the conclusions in the article.
http://www.ukm.my/penerbit/akademika/ACROBATAKADEMIKA78/akademika78%5B03%5DA4.pdf
This shown the exact example of what is called ‘speculation’. Betting based on the DIBS package and created false signal of housing demand.
@heehee
You are damn right. heehee. This is the fun of investing. Somebody predict the share will go down, they short sell. I predict it will go up, I buy now when it is still relatively cheap.
@Docvirus25
You are talking about saving or investment? You loan the money or using cash to buy gold? How much of the gold you able to buy, 10k, 50k 1mil? How much is the return of 50k? Saving mean remain the value you got in the past, even inflation come the gold value went up(optimistic assumption). Eg. 100+5yrs inflation(3%/yr)= RM115, you made 15% return in 5yrs but this 15% is equal to inflation, zero return. Same if you buy properties. However is better than not do anything to flight inflation. Investment mean 100+5yrs inflation(3%/yr)+?%. ?%=Return of investment, are we guarantee will get ?% to invest in gold or properties. This is more importance. I would say both investment using different pattern and not comparable. gold–>asset if buy cash, liability if borrow loan to buy; property–> asset if loan pay off, liability if still pay installment. asset is +ve, liability is -ve in finance planning. We all deal with numbers everyday, how many of us really calculate it. If not a right number, have we think a way to change the figure? Or continue let the number go wrong.
http://en.wikipedia.org/wiki/Gold_as_an_investment
Look on the trend, price peak in 1980 and 2012 look like same cycle may occur due to over speculation. If you make a good number of ?% and legal, this is good investment to me no matter what you are investing.
@heehee
No one is prefect, good opinions always are welcome
However slow down is good sign, the overheating market need times to fill in the speculated gap right? Else heat and heat again it will explore like nuclear Bomb worst than a small bomb. At least some actions had been taken to balance it and minimize the impact when it came. Are you prepare for it already.
@In laws
Be humble, it will come soon. Check the KLSE activities, small volume and the index hit record high in history. Just my opinion.
@WTH
after 10 years, you can’t even sell your condo and buy the property at mainland. Old condo is not valuable at all . . only new condo, price is super good on the island. 15 years old, my friend bought a condo at RM175K about 1,000 sq ft (near Relau) and now worth only RM220K, somemore cannot sell — no buyer due to old condo .. rental return is quite good RM850 per month
@lost
some typo error — should be 15 years ago
@WTH
I bet Malaysian stock market will go down after election. I bet Penang island property price go up 30% by 2015. 400k now should be able to sell at 500k in 3 years time.
Of course at good location can go up more, at lousy location go up less.
If you’re investing in gold, of course you’re not supposed to take loan to buy gold. The profit margin may not be high but it’s always stable and many goldsmith / banks are willing to buy back gold even if the economy is not good. Image buying a new house, and it is due to be completed in 3 years time. By the time you got the key, and you’re good to sell of the house without bank penalty. But what if the economy drops, and the house you bought is located in area which your neighbours dont want to stay and rent out to factories for Banglas/ viets to stay. You can’t sell the property because the price did not appreciate much and the economy is not good for anyone to buy house. You’re in urgent need of cash but you can’t sell your house.
Gold on the other hand, you can buy whenever you have extra money and save if for sale during economic crisis or when you need cash. You’re not tied down with monthly commitment of having to pay the bank even if you don’t have money to eat. If you have to take loan to invest, that is not called investment, that is called burden. You don’t own the house until your bank loan is fully settled. Unless you’re some rich kid going around buying properties in cash. On the other hand, no one in their right mind is going to borrow money to buy gold in the millions except if your father owns a bank. Buying gold in cumulative is better than buying in large sum. Another good thing is gold price goes up during economic crisis.
So, don’t you see the risk here? That is why properties are not the BEST investment yet. I don’t see the point arguing with you coz winning an argument is like winning the paralympic. Even if you win, you’re still a retard. That’s my 2 cent opinion.
If you’re investing in gold, of course you’re not supposed to take loan to buy gold. The profit margin may not be high but it’s always stable and many goldsmith / banks are willing to buy back gold even if the economy is not good. Image buying a new house, and it is due to be completed in 3 years time. By the time you got the key, and you’re good to sell of the house without bank penalty. But what if the economy drops, and the house you bought is located in area which your neighbours dont want to stay and rent out to factories for Banglas/ viets to stay. You can’t sell the property because the price did not appreciate much and the economy is not good for anyone to buy house. You’re in urgent need of cash but you can’t sell your house.
Gold on the other hand, you can buy whenever you have extra money and save if for sale during economic crisis or when you need cash. You’re not tied down with monthly commitment of having to pay the bank even if you don’t have money to eat. If you have to take loan to invest, that is not called investment, that is called burden. You don’t own the house until your bank loan is fully settled. Unless you’re some rich kid going around buying properties in cash. On the other hand, no one in their right mind is going to borrow money to buy gold in the millions except if your father owns a bank. Buying gold in cumulative is better than buying in large sum. Another good thing is gold price goes up during economic crisis.
So, don’t you see the risk here? That is why properties are not the BEST investment yet. I don’t see the point arguing with you coz winning an argument is like winning the paralympic. Even if you win, you’re still a retard. That’s my 2 cent opinion.
@In laws
no need to bet lar, what peoples said could be just a opinion. Your own prediction and study are more important because this is will tell your own decision. 30% is very optimistic, i only predicting 20%
Market trend always same, when peoples gained money from stock market then will transfer the money to bond, real estates and gold to reduce the loss during crisis.
@lost
my frez bought a condo 270k and put in 30k for renovation on 2007, just sold at RM580k 2months. My colleague sister, bought Oasis at 330k original unit, just sold it last month for RM680k.
Many of peoples at Penang have no problem to buy a 200k-300k condos. But most of the young peoples prefer to have better location and willing to pay 400k++ condo. The huge demand is actual at 350k-600k++ condo category.
I will say don’t fall for prey to developers.. Like stock market, if everyone keep telling how good about the market without looking at the market indicators (a.k.a. betting!), then better beware and may be it is time to leave.
@WTH
If your frenz so optimistic about the property market, then should hold for another 3 years and get additional 20% – 30% profit. why let go now??? I don’t see Malaysia (or Pg) GDP can grow 30% in 3 years time, so what support the market???..hahaha..
Inflation alone already 15%, plus some capital gain should be easily more than 20% after 3 years.
@heehee
EPF contribute to our economy growth…. LOL
@In laws
1.) Official inflation rate from government is only 0.6% in 2009 and 1.7% in 2010, averaged at 2.7% yearly from 2005 to 2012. Please mind the accuracy of your statistic. LOL.
2.) There is no relationship between inflation & housing price if you compare the 2. LOL
@JK
Yes, EPF contribute to our economy growth, but the effect hardly reach the typical rakyat..mainly pushing up the KLSE.
@heehee
1. drink in kopitiam raise min 10cent a year, RM1.00–>RM1.10, 10% increased. Hokkien noodle RM2.50–>RM3.00, 20% increased. No matter how you still need to pay for it. Do you really think the inflation is so low? Average inflation calculated by BNM is 2.9%
http://www.bnm.gov.my/files/publication/ar/en/2010/cp01_003_whitebox.pdf
2. It link to housing price, why not? Inflation is directly link to currency dropped. The value of RM, mean you need to pay more RM to get your product due to material cost increase.
about EPF
KLSE dead–> EPF dead–> economy dead –> you dead, haha. So quickly use your EPF money to buy house and invest trust to support KLSE heehee
About my frez, the message to you is there are still have buyers from foreigner.
@In laws
Inflation is one thing, but need to think about the actual value impacted by the economy situation. The inflation of 15% no really tell us the actual price. This is so call the risk, no risk no gain. But you afford to take the risk, then you are ok to invest your money and property consider as long term investment. What down will go up, just matter of how much times needed to hit the bottom before recover.
@WTH You sure or not RM680K? which block and which level? I have a unit to let go also.
@heehee said house price no relation to inflation. Who else supports his statement?
@WTH
1. so you doubt about the official inflation number of 2.9% by goverment/BNM? beware of the new evidence act 114A. hahaha.
2. Inflation always there but housing price can drop. Malaysia inflation rate >5% in 1998 but house price dropped.
The question about your frenz is: if they are so optimistic about future property price, why not wait longer for higher profit? why want to sell now? are they so stupid?
KLSE may not have great impact to typical rakyat, now only the big shots are stirring there. But if too much speculation in property market -> bubble burst -> high bad debt rate in banking system -> financial system/economy collapse, just like the subprime problem in US. This will definitely affect all. So beware and be prepared.
@wahahaha
What i learned, the unit is seaview. Funny part is the developer bought it. Then no further details. Good luck to you, hope you make a good profit also.
@heehee
official document is from BNM website, 114A only target on rumors spread without proof.
No people is so stupid, is whether you got it or not. Good profit why not!!! If not grad it, you really stupid
Not scare 114A kah? heehee
“KLSE may not have great impact to typical rakyat, now only the big shots are stirring there. But if too much speculation in property market -> bubble burst -> high bad debt rate in banking system -> financial system/economy collapse, just like the subprime problem in US. This will definitely affect all. So beware and be prepared.”
So hope you success in your investment. not my business heehee
@WTH
Unit bought back with high price by developer to create a single transaction record. This is usual tactic to create false impression and boost the price. wahahaha…
Speculators can continue to support the blood sucking new projects which developers are rushing to launch now. Hope u success in your betting…wahahaha…
@heehee
bought back or not, not my business, but point is she made a good profit. Who care. Did you get the money???
I’m not betting for half of million. I bought my unit for my own stay, price up or down, it not really impact on me. May be you are hungry for something but could not get it, but again not my business. Lastly, Tq for accompanied for whole day long. heehee
@WTH
The point is the transaction is doubtful..RM680psf for leased hold condo, no one out there will buy at such price and developer may do so with some purpose behind..I think wahahaha is willing to give u very good commission if u introduce buyer for his unit even at RM580K only. wahahaha…
I am warning people here because I also don’t want to see oversupply and the market collapse and affect my properties. The current price only can be sustained if not oversupply. If not, free cash flow in the market may all sucked by developers and the effect is long term.
@Pen1
like
Whatever you buy now may dropped due to recession or over supply but years to come, the price will climb back up and even more. If gov declared salaries increase and etc… this is the starting of everything increase including properties.
@Elmo
Like
only fool will think property price will come down one day, all investor get burnt, and left him alone with cash on hand to buy cheap property…..if that day comes, it will be the great recession, not only property will come down. Stock market will collapse, unemployment on history high, company bankrupt….so that is what those ppl is hoping to happen, if they waiting the property price to come down….
hahaha, only fool will think housing price always uptrend. US, Dubai, and China has experienced that.. How does M’sia outgrow China & spare M’sia from downturn??? Last year China housing price dropped 30-50% and expected fall another 10% this year.
http://www.forbes.com/sites/gordonchang/2011/11/06/property-prices-collapse-in-china-is-this-a-crash/
Developers please keep building more new houses, flippers please support. & I am waiting…heeheehee..
Only greedy investors will hope to buy at lowest then sell at highest. Some even said the price will drop 40%, from 500k become 300k. Don’t think any bank will survive if really drop that much, buyers, developers and banks all bankrupt.
@heehee
Do you visited and doing business at Hong Kong and China before. At central city of hk, you need to pay RM25000-30000/sqft for condo. At China Donguan(“kampung” in China), a state beside to Shenzen, you need to pay RM800-1000/sqft for a unit of condo without facilities. Most landed house will cost you over RM40mil.
Rental at HK, rising 15-20% every year if crisis not hitting their country. The rental contract very simple, you take it your you leave it. So 30-50% drop is normal at HK or China but your attached link said asking for 32% price cut and see 50% price cut, how can it became 30-50% now
My Frez from China Shenzen bought a unit ~900sqft, leasehold. It cost him RM1mil++. How about Shanghai and Beijing, house price even more expensive. These 3 states are the main places to support GDP of China.
Most Engineer at China not actually afford to buy house today and i talked with them personally.
Malaysia Engineers are so lucky that still afford to own a house today. But may be not in tomorrow anymore
@WTH
I don’t think we can compare HK to Malaysia…
their income is much more higher than us…
and I agree with caller…. for the bubble to burst, unemployment comes first…. once people are unable to service the loans, they hv no choice but to sell off cheaply….
hehehe…you can continue to wait….
@newkid
My message is to tell this heehee that we can not compare to HK or China to Malaysia.
and i agreed with caller. Most of the family were gone through a difficult times at 1998 crisis in Malaysia. And the currency drop to USD1 to RM4.8 before BNM fixed it to RM3.8. Your money value just drop by almost 30% if the crisis come. This is why i mentioned before, peoples will convert the money to gold, real estates or bond to minimize the loss during crisis.
worse in Japan…need 2 generations to service housing loan
So, it is normal to pa back the money for more than 3 generation, we will see that very soon, may be at 2020 we will move to that direction, advance, developed, and rich country like Japan, Hong Kong, Shanghai, etc. Wawasan 2020.
Shanghai & Beijing have higher population density than Penang, and yet price also can significantly dropped…why not Penang? I cannot predict the economy & GDP next year (especially after the next general election), but I heard that MNCs already retrenching…heard WD going to cut > 1000 headcounts, Flextronics plan to cut 10% indirect staffs.
@In laws yes, a lot of bankruptcy during the US subprime crisis in 2007. Malaysia banks are smart & been protected, now already tightening loan margin & income requirement, and project screening. Some banks even don’t provide loan for Sierra Residence as informed in the thread. Developers usually less affected because selling price already locked down in S&P and progressive payment guaranteed by bank loan. Buyers usually trapped with great losses.
@WTH The fact is household income in China cities already higher than Pg, no need to mentioned HK. You need to compare the ratio of housing price to average household income. I think HK ratio about 11x. 30%-50% drop is normal in HK & China? Read the article below and get your fact straight. Don’t be joker here.
http://www.csmonitor.com/Business/Paper-Economy/2012/0213/Signs-of-a-Hong-Kong-real-estate-bubble
The last property bubble in HK, even retired singers like Sam Hui & Jacky Cheung also got burnt and came out for concert again.
http://www.reuters.com/article/2012/07/10/us-hongkong-economy-property-bubble-idUSBRE86908620120710
Only Malaysia developers are seeing bright future…hee hee hee..
@JJ
at HK now is upto 3generations. hk peoples normally will rent house if the house price too expensive and try to make the saving as much as possible from their investment. When the crisis hit them they will try to grab one before it grow up again. If they missed it, they need to wait for another round of crisis. Those bought house, they will try to marry and get 1-2kids before 30 yrs old. So that their kids able to continue the installment before they retired. Those not marry before 30yrs old, they afraid to buy one unless they got a good pay in someday. It is crazy if happen at Malaysia.
Malaysia boleh, RM1mil for 1000sf size apartment will sooner become normal, especially in Penang Island, anyway, it is still cheaper than the price of apartment at Hong Kong now at HKD2.5mil for 500sf size apartment, that still far from town. We should appreciate the cheap house we enjoy now, better than Hong Kong, Japan, Beijing that need few generations to pay back to bank loan.
@heehee
First you will try to compare with HK and now turned into Shanghai and Beijing. But also high density in HK and they are comparable. A joker hee hee
Pls understand what is Malaysia before go to oversea. I think you should read a lot of articles in last 2days and learned a lot. Why not go to apply for finance editor job, but take care the copyright of reuters.
hee hee hee, Malaysia boleh… keep building more houses & flip flip flip.. very bright future awaiting…
yes. totally agreed with WTH.
Country like HK,Shanghai, Singapore, the price of property so high that, the medium income , totally cannot afford. .think also no need. They can either rent or buy the low cost by goverment.
In Penang, or even Malaysia have we reach this kind of situation yet? No, we still far to go. Because now, most medium income still afford to own a house. Is just that, we just want to pay the cheap price for the prime area. You can buy 700sft, 200~300K, in many area if you are first time owner. You still can buy place which is further down, like mainland.
I believe, one day, only rich will own the property in Penang. And fresh graduate and middle income, just can rent it. It might takes 20, 30 years ahead from now when we see this kind of scenario in Penang. And of course, in the middle of the road, it can be bumpy, price might drop a little, and the went up again. But it is not the case, that price will drop 40%..stay there and let you enjoy the low price.
heehee,
Anything can happen with the current economy now. there is nothing which is too big to fail.including property. So, it is up to individual, either you want to grab it now, or you want to hope that things will go your way one day. Even things go your way, let say property drop 40%, maybe 10years later, that time, I already make 200%. But those who dream for that day, for them, the property is increase 60%, intead of 100%…..so they save 40% increment.
@caller
Yes, I encourage developers to build more and “investors” to keep support the new launch projects.. so that there can be more choices for home buyers later….hee hee hee… may not be a bad thing if market collapse, depends on where you stand lah
No need to argue, for those who believe the price of property will drop
please don’t buy now and wait for a 40% drop in price. Most probably
it will when the sun rises in the “WEST”.
@heehee
undead heehee
@J & J
Like
Good product, good location, good interest rate. Why not?
Nothing is good if market collapse, except for greedy investors hoping to buy at lowest then sell high high later. I am not greedy investor, not sure about you.
Wanna have better life is encouraging long term steadily economy growth, of course together with reasonable properties price increase come from continuous control and monitoring policies from Gov to protect both developers and buyers to make sure there is always the health demand and supply take place with reasonable price deal.
to then, our solutions to own the properties is to increase our income, to reduce the car loan by gov reducing the car tax, better public transport system, cheaper domestic product price and more affordable medical health care service. Sound like very ideal huh………
For property price to collapse are definitely crazy wish because it would not benefit anyone in this country, that is the reason why we wan poor manage gov to fall.
@In laws
a lot of real home seekers will clap their hands if property market collapse. Only blood sucking investors worry about market collapse because they have extra houses on hand for “goreng”. Real home seekers just want a decent house for own stay at reasonable price and not mean for sale. Let’s pray hard hard for market collapse.
@home seeker
What is the reasonable price in your mind? Real home seeker. 1000 sqf for how much? where is your preferred location?
Sometime greedy investor pretend to be real home seeker, that’s why i have to very careful.
@home seeker
hee hee hee, Like
The property price now is control by the investors,speculators and developers. Goverment need to step in to make sure the property price is determine by the real market value. If not, cost of living up = quality of life down.
No goverment can survive if they let the property price unchecked. I believe in the upcoming budjet, they will implement some cooling measures. implement minimum occupation period and higher property tax gain will discourage those who would like to flip the property market.
@NT
Already so many measures enforced by goverment already. 70% loan amount for 3rd house, using nett income to assess your loan eligibility, higher property gain tax for the first 5 years, first time house buyer program (this one @home seeker and @heehee should apply, hee hee hee).
@NT
nevermind, just let the developers & speculators keep building new houses and pushing up the price. When more & more those DIBS projects completed, and free cash flow in the market exhausted/tied onto new projects, there will be no more support for the price. The market will correct itself. The more projects launch the faster it will be. Too bad that developers are having advantage as purchase price locked down once SPA signed. hee hee hee….
First, the locals goreng with small value ringgit until run out of steam. Then the foreigners come in and goreng higher with big value USD, Sing Dollar, Brunei Dollar, etc. So the market continue to be supported by the foreigners while the locals watch and wait… That’s why property prices spiralling out of reach like no ending. Are we still dreaming of a market collapse?
@Dreamer
Foreigners only goreng high end property, usually along Gurney Drive & Tanjong Tokong, may be also IJM the Light & Mah Sing Southbay. for typical residential, foreigners not interested. Even IJM’s Pearl Regency got very bad response and has to scrapped 1 tower. Don’t simply blame foreigners, but you are right that it will be out of steam soon.
@heehee
You speculate down, I speculate up. Price locked down is good thing. For the time being, guess you will have to stay with parents or rent with frens. hee hee hee…
@heehee
got @home seeker kaki liao
Better show proof, remember 114A
@NT
Quality of Life=you need to change your attitude and mind set first. think how rich people think. Learn from your rich frez that gone through the path to be rich. Do not be shame to money.
Market collapse or not is no really gov false, is how you plan your own finances. Loss it then take it, do not blame to anyone.
@heehee
IJM’s Vertiq is selling like super hot cake, queue for 4 days 4 nights, now you want, RM700k++ for 1040sf also can’t get, completely sold out.
After read so many comments up there, i feel most people still think the property price should stay stagnant, and not moving, probably your still hope for RM100k for double storey house on Penang Island. If you compare aple to aple like HK, Beijing, Shanghai, our salary in RM is not really much lower than them, while when you see in HK, RM1.5mil only can buy 2 rooms 500sf apartment; one bowl of Wantan Noodle in HK cost RM20 while in Penang RM3.50 to RM7.00 (same normal coffee shops).
This is what u mean of no support??
KLSE index, no more support then 1600—->0000
RM—->Rupiah
Real estate drop from 500k—>000k (but at least i still have a place to sleep)
GDP ranking 37 of 182 countries drop to —->182 of 182
Give me a number since you are so good to predict the future…….Finances is always come with a number, no number no talk. Do you think you really can be a finances editor, you just know” hee hee hee…hee hee hee…” just a joker.
Anyway, Penangites (or typical Malaysian) already pampered till lazy, drive car also want to park infront of the destination, don’t want to ‘walk’; while HK ppl walk to public transport everyday. With a bit rise in property price, then start complaining like hell, still insist want to live in over 1000sf condo while prefer to pay RM100k? Complaining 2 rooms apartment not for human live, insist want 3 rooms and keep on complain expensive. Need to go out there to other country to see how ‘big City live’ is, like HK, Shanghai, even London and New York, then you will feel our 2 rooms 500sf LMC with RM50k in price is cheap like water….RM50k convert to HKD only HKD125k, talk to Hongkies they also can’t believe.
If want to live cheap house, then go back to Kampung, can build big big over 10,000sf rumah papan, with private garden and lots of tree.
RM500,000 for 1000sf in Penang Island, expensive? RM500,000 = HKD1.25mil, can buy a 300sf apartment that not so near to city center! RM500,000 = CNY1mil, can’t buy any house in Beijing or can get 200sf with single room flat? Waiter in Beijing got CNY2500 per month, in Penang, ~RM1000 (=CNY2000). Whoes live tougher?
@Ah Dog
Have a rest, release some stress, good to be a typical Malaysian
http://www.youtube.com/watch?v=JiosPxt_5kw&feature=related
if you read any property books…they will say location, location, location…
i just cant understand why everyone have to crowd in Penang Island and complained about the price of houses…
there are so many other places to stay…. BM, Sg Petani, Kulim…where house are much cheaper..and if you are staying in KL, 1 hour on the road travelling to work is very common…
Gov should increase minimum purchase price for foreigner investors. Minimum RM1 million because RM500k is nothing compared to their currencies. RM500k can’t even buy the cheapest HDB in Singapore. In Singapore 2nd properties onwards stamp duty is 10%. Malaysia should apply this rules to stop speculation. And also 2nd properties onwards loan ratio should only be 50%. Plus property tax gain should increase to 10% for the first 5 years. These measurements will cool down the price and will benefit locals.
@heha
Penang island has better location i guess. More specialist hospital, more eateries, more shopping malls, more MNC, more resorts hotels….
Butterworth quite ok. That’s why people buy big house there but travel everyday to island to work.
Sg Petani and Kulim abit too far.
@Elmo
Already increased to RM1M for condo, RM2M for landed. Since foreigners only invest in high-end seafront condo or landed on the island, so no impact i guess.
@Elmo
But house price still rising at Singapore now. Only the luxury house, over million sin dollars drop less than 1% after the new rules implemented. This rule sometime forcing Rakyat to pay more money because they need it for their family. Many couples plan to marry and need a house as well. At the end you are forcing to pay more money to own a house. Every new things, always there is a pro and con. But honestly this is Malaysia culture, always bargain for a little bit extra things.
@heha
mindset and culture in penang also take a part. Most peoples born and grow in penang island will come back to work in penang at the end. This island is just like a comfort zone, surrounding by sea.
@In laws
Propose only lah. Not yet executed
@Elmo
I thought effective since July 1 for Penang property. Can ask Lim Guan Eng.
Born on the island, grew up on the island, guess you’ll also say work on the island. Sure, all are true….but now happily staying on the mainland. There is no lack of shopping malls or eateries. I could even travel to Ipoh for the love of Ipoh chicken koay teow or Penang for sisters’ char koay teow. Work takes me everywhere….so often to China that I wish I could be grounded for some reason or other. The world is too big. So why squeeze your pocket and fight for that little prestigious corner on the island with every Lim, Tan or Lee? Why restrain your choices when Penang is much bigger than an island? I don’t dream of market collapse neither do I chase for that illusive condo. Just go where the property is comfortable to your pocket, enjoy yourself with the balance (change) and splash in the sea, sun and surf whenever in the mood!
@Dreamer
Good for you. Cheers.
wow..overwhelming responses. Everybody seems so exited..hee hee
My words (and also all your words) may not be convincing, let see what the expert said in the official research paper by Penang Institute on Supply & Demand in Penang Housing Market. Good & detailed study but pretty long. Allow me to summarize:
1. Housing supply is OVERSUPPLY by 21% compare to population. Every district in Island & mainland is OVERSUPPLY.
2. Housing price growth exponentially (Condo price +~80% in island) in 5 years, while middle income profession salary growth is stagnant last 5 years, facing increasing cost of living and thus reducing affordability.
Conclusions: A significant mismatch between supply & demand leads to an unsustainable housing market, Penang need to understand internal housing market in greater details, so that future policies and development approvals are evidence based and reflect the full range of demand factors.
Some interesting remarks:
– The median house price to median income ratio at Penang island has rise from 6.6 to 8.1 in 5 years. The US housing affordability index rose from 3 to 5.8 in six years from 2000 to 2006 resulting in a housing boom and bust and triggering the greatest financial crisis since the Great Depression of 1929.
– The prices of prime properties in Dubai for example have fallen by 50% or more since the debt crisis of 2009 where there was a significant oversupply, and so caution should be taken.
A really good reading with detailed fact-based analysis. If you want to condemn or discredit the research, please make sure you got fact/data to support. You know lah now we got the evident act 114A. Hee hee hee hee hee……enjoy the reading!
http://penanginstitute.org/v3/files/research_papers/Housing_market_trends_and_affordability.pdf
@heehee
Okay. Thanks.
@heehee
Just back to your summary, the income ratio rise from 8.1 to 9.6 in next 5years. Let see you still afford to buy a house. Buy and invest what you affordable, why not? Why are still waiting the income ratio go up, do something to change your income ratio since this already a fact. Work oversea, work harder, building a creative business….and so on.
There are still high demand on new projects in Penang island. Over supply by 21% is average or at Penang island?
My advice, do not let the papers work program you too much. It is a guideline and forecast. this is not a fact. Since everyone see forecast and no actions taken. Sure the market will burst. Tell me, have you US taken any actions on real estate market before the crisis? But we do in Malaysia and other Asia countries after learned from US. Down is for sure, but not the 40% unless 50%of the real estates are belonging to foreigner. They will sell off and run away.
All, this is great as now we can see more positive confrontation with data and prove. There is no denied that affordability have reduce, oversupply of the unit, world economy uncertain. So base on this;
Buyer for own stay – Look for more cheapest entry level to reduce installament burden.
Investor – Look for low entry to max the rental yield and capital appreciation.
So why huha all around, let’s the market to judge in next 2 to 3 years time. Those fliiper looking for quick money will get burn. All of you are sharing usefull information is to prevent we get trap and we shall thankful for those sharing this. Pls bear in mind, if the recension does happen and propertise will force to “revalue” by bank and the owner will need to paid the difference. Lets take 500k loan for example: 90% loan = 450k, if the market collapse and house value drop to 400k, base on 90% loan = 360k, so he will need to paid 90k of difference. There is no way buying for own stay will not get impact once market retreat.
@WTH
The answers are in the research paper. I already done the courtesy to summarize but please spend sometimes to read the details. No need keep asking here.
http://penanginstitute.org/v3/files/research_papers/Housing_market_trends_and_affordability.pdf
When you said “This is not a fact”, looks like you are doubting the official data collected by Penang Institute. Can you show your version of “fact” with data support??? Should I listen to your advices, or Mr Stuart Macdonald (Head of City, Urbanisation & Environment Penang Institue)?
@heehee
Your hyperlink is truncated. Nobody can judge.
@heehee
Good reading. It is better to trust an officially published article from a reputed organisation for a fact than to listen to ungrounded heresay no cost loose talk.
@heehee
The problem is you did not answer my questions. Also, i didn’t ask you to listen my advice, but i sharing my opinions on the not convincing information.
“Fact” is what had already happen
“Forecast” is a prediction based on data collection
Have the document dare to say sure or will. Or document dare to say which year? No. no one dare to say that even yourself. What peoples will say is let see next year, let see another 2-3years, bra bra bra…… Like what In laws said “no one can judge” Come on, everyone already have the precaution even yourself. The thing is you got it or you hope to get it.
My message here, data had collected and that’s it. No actions needed and wait for it happen??? Or should some actions should taken. The research data shared out is one of the weapons to cool down the market so that it able to reduce speculation. If you look deepen, you are the one of them programmed well by the document. The article is one of the positive action to protect all of us.
The article projected the prices for all property type in Penang will increase 20-30% by 2014. So my bet is quite chun after all. hee hee hee…
@In laws
Yalor, share an article actually himself not read properly. No sure hee hee hee still trust this article now. Hee Hee Hee……
See the hongkies said:- Penang Property is very cheap ar, just on the par like 1980th Singapore and Honk Kong, while we already said ‘expensive’, we still live in 1980th mind set. Pitty penangites.
Reports from Asia Homes (HK) Consultancy revealed that prices of freehold luxury condominiums on Penang Island are at only a tenth when compared to the prices on Hong Kong Island. The price on Penang Island ranges from RM598.433 psf (HK$1,500 psf), with three car parking spaces.
Malaysia’s foreign direct investment has increased by 12.3 percent, with Penang in the lead. The island contributed 28 percent to Malaysia’s FDI in 2010-2011, a notable rate considering only six percent of the country’s population resides in the state.
In addition, Penang became an increasingly popular investment destination due to its high standard of living, strong investment opportunities as well as diverse, tolerant, multilingual society.
Ranked in the top 10 Asian cities, Penang also became a good choice among Hong Kong people, who are attracted by state’s low property prices.
While investment in Hong Kong gets more expensive, more people are considering Penang properties as investments or a second home. Hong Kong investors can also enjoy high capital appreciation as well as benefit from exchange-rate appreciation of the Malaysian ringgit.
Gabriel Choi, Chief Executive of Asia Homes, said it is a golden time to acquire properties on Penang as it is currently on the similar stage as Singapore and Hong Kong during the 1980s.
32 years behind, shame on you!
Penang RM500k condo can’t even buy the smallest, cheapest HDB in Singapore. So in long run, Penang still have room for prices to go up. It may drop but prices will increase in the future.
guys,
http://www.mida.gov.my/env3/index.php?page=projects-approved-by-major-location
not a good news…. investment dropped from rm 9 million (from jan to may 2011) to 1.5 million (from jan to may 2012)
Thanks for good sharing! Like
Finally the oversupply is proven by data.
@WTF
Article says oversupply since 2006 wor… How come the price never drop one? Even project the price to go up another 20-30% by 2014.
@In laws
nope, over supply since Malaysia independent day. 800bil real estates unsold in 1998. Is just like economy bubble in Japan since 20yrs ago, their house still expensive, their spending power still very strong, they are still world top 5 countries.
@WTF
Have you finish reading the article posted?
no need to argue, just invest as long as you afford it. if someone want to wait for the bubble, let them….if bubble come, i will say, “lucky, i made some before the bubble”, those who wait will say “lucky i did not buy “…
bubble or no bubble the conclusion is still the same..why? It is because we (most of the ppl comment here) are not born with golden spoon….if bubble, rich ppl(really alot alot out there) will sapu more than what they sapu now…if no bubble, they still sapu, only slightly less number nia…see? in the end, we all still here predicting the bubble will come or not…if bubble, say price drop 40%, can you afford? will you really act this time? or wait for it to drop further???….if no bubble, no need to say, you only have one choice (comment here cursing the price to drop somehow)
Your wait long long and hope to buy a double storey landed house in Penang Island for RM200k, and condo 1000sf with RM80k, haha, our property price now is like 1980th’s singapore and hong kong, we still want to further back to 1950th? Really shame.
Why N-Park with 700sf size and those 700sf to 900sf size apartment price increase from RM200k in 2011 till today’s RM320k – RM350k? Because, there is not enough supply for those budget below RM400k youngster, undersupply, and thus, price goes up.
Those super condo and luxury condo still have demand, why? Because, those foreigners and invester still say they are very cheap.
just buy what you want…..worry about bubble is for those who put all eggs in basket!!
@Lucy
property “Pantun”
Like
Like
Support u all! Developers let’s build more & more houses in Penang island and flippers continue flip flip flip! Don’t let the song stop. The current price hike rate is too low, until 2020 also cannot match Hong Kong & Japan price. Why cool it down? hee hee hee hee hee…. That research paper is only for academic people. Old tricks always work. General public is governed by “Fear” & “Greed” rather than rational… academic term called ‘herd effect’….hee hee hee…
Really admire you all.. talking like “xien” (“fairy” in Hokkien”) and know better than professional academic, can deny the official number and predict the future price trend with your gut feeling…hee hee hee…hope u are correct…
Global economic will be super duper bad in Q4 2012 and Q1 2013, so, just see what will happen, but, the price of property on the Penang Island will not drop. There are not many new projects lauch also, especially those price below RM500k, as Island is facing scarce of land and limitation on hillside development. So, house price hike is absolutely will happen, just in slower pace during this economic downturn.
hee hee hee hee… why got “fairy”? The techinical paper you asked us to read says penang property will go up another 20-30% in the next two years one wor… hee hee hee…
@In laws
So please support all the new projects “kao kao”… I think you also don’t believe the news that “Actual sales of residential properties are declining”, may be you can support commercial properties more lor… hee hee hee..
@Pen1
Yes Sir. hee hee hee…