On 17th October 2013, National Property Information Centre (NAPIC) reported that the average housing completion yearly was 100,000 units relative to the average annual household formation, which was 140,000.
On 25th October 2013, in The Star, according to Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan1.7 million households yet to own houses’. He also said that the government intends to build up to 1 million new homes within the next 5 years.
On 20th November, in The Sun, it was reported that Alliance Research Sdn Bhd said that the new Bank Negara Malaysia (BNM) ruling that requires banks to give out property loans based on net selling price, which excludes rebates and discounts, rather than gross selling price may affect loans growth for banks this year.
With these three pieces of important information, I personally do not think a property bubble is about to burst. Nevertheless, a price correction may happen next year as the property boom years started in 2010 onwards and by 2014 we may see the new supply coming online. Let’s see how resilient is the market then. 🙂 Note though that should the world market crashes, then Malaysia is not insulated.
