RPC

TL;DR As of Sept 2023, the total approved loan value exceeds RM29B; The loan approval rate for 2023 (Q3) is 56% exceeding property peak in 2013; People are still buying properties with supply for unsold properties reducing; High rise properties with the price below RM600,000 is the most transacted. Since the pandemic outbreak, we still feel that the general market is not fully recovered yet. Many sectors are still feeling the pinch and consumers are feeling the pressure of rising cost of living.

Just as many think that Australia’s property boom cannot keep on going, controversial economist Phillip J Anderson reiterates that you’ve got 10 MORE YEARS of rising property prices to build a millionaire dollar real estate portfolio. Another 10 more years of rising prices in Australia might sound impossible. But Phillip J Anderson is no stranger to making outlandish forecasts. In 2006 he predicted the US housing market would bottom between 2008–2010 and begin recovering in 2011.

Real estate speculation drives this cycle of boom and bust. Economic growth leads to higher real estate prices as demand for property (from expanding businesses and flush households) grows. This increase in property prices is ultimately driven by land values: a house costs much the same to build, in terms of labour and materials; regardless of where you build it it’s the location that makes the difference to the value.

In the “Business and Real Estate Cycle: The Kuala Lumpur Office Market” by Siti Almafahaza, Stockholm, 2011 master thesis, the author described the development of Real Estate in Kuala Lumpur that has taken place since 1960’s and how it has changed into a modern city with the impact of industrialization of the economy. The study shows that real estate cycle and business cycle do move in recurring wave-like fluctuations that are in a circular motion.

For years it is interesting to note that property cycle comes and go and no one ever question it. It is so predictable and will happen automatically as in the pattern of day follows the night. Wikipedia described it as “A property cycle can be seen as a logical sequence of recurrent events reflected in demographic, economic and emotional factors that affect supply and demand for property subsequently influencing the property market.