Historically the market has been on the move since 2000. The graph below is indicative of that trend.
 |
| Skyhigh |
In a period of 10-years,house prices moved from RM 140K to almost RM 200K. That is about RM 60K or close to 43%.
Today in 2014, this is no longer true. As houses goes smaller in-built up and land area, prices have gone through the roof literary.
Go to any housing fair or exhibitions these days and you would not be able to find many units priced about RM 400K which is doubled of what you would pay in 2010.
Prices leap-frogged after 2012 due to speculation, market forces, low interest rate and the infamous DIBS or Developers Interest Bearing Scheme. As such, just put down 5% and buy more than one unit and sell one unit for quick profit after your receive the keys.
As I have mentioned earlier, today's house prices are sky-high. Landed properties go with the million ringgit label while condominiums in choice areas are fetching almost as much.
Though the government measures have kicked in rather well,prices are not coming down anytime soon both for the new developed units nor for the subsidiary sales market. As such first-time would be buyers are left hanging high and dry.
The cooling down is definitely affecting developers as they delayed launches and put in super marketing schemes. Certainly, it has yet to hit the pockets of big developers as some have billion dollar projects in the pipe-line.
Be that as it may, this is not helping would be first time buyers as salaries have not kept up with house prices.
So, it looks like the rental market is definitely Hobson's choice for many as house prices stay stable and loans are hard to get.
