These days, in my talks, people no longer ask me about the potential of property bubble bursting. Maybe they have forgotten a viral Whatsapp just a few months back about an imminent property bubble bursting. Maybe they are ow very confident with the new government? Anyway, every time anyone asked, I would point out to them that they should know better by just looking at a few key signs. Here are those signs. In brief, it is not likely currently. Okay, situations can suddenly change if some financial crisis happens in any of the advanced countries yeah. This is one of that advanced country. As for the potential for property bubble bursting, let’s hear what FIABCI Malaysia has to say.
Article in TheStar here. FIABCI Malaysia secretary-general Dr Yu Kee Su believes that while the property market will remain slow going into 2019, he is, however, optimistic that the sector will not result in a property bubble burst. He said, “Demand for homes will always be there. Banks continue lending to qualified home buyers. Developers are also continuing to introduce creative packages in helping home buyers and we’re not hearing of additional cooling measures.” In fact he shared that even though the property market seem sluggish currently, it is not as bad as it seems. Yu is also confident of the new government. He said, “We’re hopeful that the new government can and will do better. They should introduce policy changes in line with its election mandate and manifesto promises, for economy expansion to benefit people at large. The government ought to manage national wealth carefully so as to minimise additional risks to economy.”Article in TheStar here.
Well, another prominent property expert has lent his weight on the notion of ‘no property bubble bursting soon.’ Remember yeah, if we are buying a home for our own stay and we absolutely loves it, property bubble may burst but we will still own our home as long as we keep our job. Even in the 2008 Subprime Mortgage crisis which was caused by all round GREED, many stakeholders took a huge ‘haircut’ and the market has recovered. Property bubble will burst when the affordability disappears from the market. Most developers today are already focusing on affordable units. Article about Latest launches here. The government is also focusing on ensuring the B40 is able to afford a home. All these are helping to keep the property bubble away. Happy understanding.
written on 27 Nov 2018
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