‘Property price plunge 2015 Malaysia.’ This was the term people entered in google to find kopiandproperty.com Yes, I am serious. Haha. Perhaps I should rename my blog into something to do with financial crisis prediction. The nearest I am to an economist with lots of experience is that I have taken many economics related modules during my degree and Master studies. However, based on my little knowledge and some rather complete reading of the many resources, I think the property price plunge 2015 in Malaysia is unlikely to happen.
Today, there are not that many speculators left in the market. Many do own more than a few properties but majority of these are still holding on. If they did not, it’s impossible for the market to still remain as it is today. Transactions has been going down, the desperate ones would have desperately letting o of their units. It has yet to happen. Oh yeah, a report in 2014 stated that 84% of all home loans are for borrowers with just one (1) property. Read here: 84% of homebuyers have only one (1) outstanding home loan. Yes, the property buyers’ clubs are still around but unless I got to know that there are hundreds of them, I do not really fear them so much that I stopped viewing potential properties.
So yes, I seriously think unless the financial crisis hit again from external countries, Malaysia is not likely to start one ourselves. This is even if all three international rating agencies downgrade us to just BBB rating instead of the current ‘Investment Grade’ rating from all the three major rating agencies. If GST was postponed, then yes I think the likelihood is slightly higher. Thus, for those who are waiting for the prices to plunge, it would only be happening to the luxury ones. I term luxury ones as those selling for RM800psf or higher or minimum of RM1 million. Yes, like many I would definitely be happy if those more affordable RM300,000 units are ‘plunging’ 50 percent? Haha. Happy waiting for prices to plunge.
written on 7 June 2015
next suggested article: Speculators, Interest rates and Over-Leveraging