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How the real estate cycle drives economies and investors. Is Malaysia property cycle still in an expansionary period?

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.

Posted by Hong Thang on Wednesday, June 10, 2015

Will Malaysia property prices continue to rise in 2015 & 2016?

Where is Malaysia now in the property cycle? Is Malaysia in the final years of the upswing of the property cycle? How long more will the cycle remain robust? Malaysia property prices have been rising since 2010 fueled by easy credit, low interest rates and high demand on the back of strong economic fundamentals. The projected super cycle that will bust in 2012 did not happen. Prices continue to rise.

Posted by Hong Thang on Friday, May 22, 2015

Boom & Bust Cycle: What Causes It?

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.

Posted by Hong Thang on Friday, April 17, 2015

Malaysia Property Cycles – Boom or Slump Now?

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.

Posted by Hong Thang on Monday, March 23, 2015