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The 18-Year Property Cycle – Malaysia Property Prices Will Hold Till 2016!

Based on the extract from The Star below recently: Weak market seen for the rest of the year- Saturday, 4 July 2015 By Thean Lee Cheng Prices remain: Even when the conditions are weak – as in the current market – the residential market is stable because of the large pool of owners, says Fernandez. But prices of residential likely to be resilient THE property market is expected to continue to be weak for the next six months, with some activities expected after the Hari Raya period, according to a real estate personnel.

Can the 18-year property cycle predict correctly the TIME in Malaysia as it has done for Australia?

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.

How property cycles moves the different assets classes and investors in an economy – Australia Case Study.

Phil Anderson says that if we understand the 18-year property cycle from various angles we will be able to see the structure of the economy repeating and will understand and see what is happening better/clearer. The events may vary but the underlining structure based on the speculation of rent remains. Your Playbook for the Australia Real Estate Cycle What does all this mean for asset prices? Here’s a road map for different asset classes and the economy for the next decade.

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.

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.