IMO Malaysian Property Mart is overvalued especially in around Klang valley. When you look at the median income vs property prices, many agree this is not sustainable. Further more, please have in mind that the high prices are only sustainable as long as financing is available for such high valued properties, and are dependent very much on buyers being able to service their loans. So, when you see an average property around Klang valley being priced around RM500,000 at least, and with an average median income of RM2,500, In my humble opinion, it is not sustainable. Even if you have to pay RM1,000 every month (RM12,000 a yr), 50 years of repayment is more like it if you take into account interests. Not surprised that banks are beginning to offer multi-generational loans that allow the son to take on payment after his parents pass on. Property prices have to come down at least half to make it even feasible for purchase. The question that you should ask is when will people start losing their jobs and not being able to service their loans? People spending the way they do today on cars, and houses, and even on entertainment, it is no surprise that they are living from paycheck to paycheck. Also not to forget, properties though many are freehold, if you dont keep up the payment to the bank, you're toasted.
Big companies are hiring lesser and lesser and if not for government spending into megabillion-ringgit projects, I highly doubt all these are sustainable. Bear in mind as well, that all these borrowing and spending on big projects would eventually come down upon the rakyat in terms of higher taxes in years to come.How long more can our natural resources sustain our spending binge?
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