Malaysia Credit Bubble on The Horizon Part 2

Posted by Kris | Sunday, August 01, 2010 | , | 2 comments »

I like read financial blogs and occasionally stumbled into forums, as I searched more for stories/articles regarding potential risk of credit bubble in Malaysia especially in the property segment as a continuation to the earlier post.

Here are a few consecutive posts that i found in a certain forum. Since all of them uses 'anonymous' status to post, i am assuming/guessing who replied what. I have censored some of the names mentioned. You can easily google the posts below to find the source =D.

Nevertheless, the interesting part is that people in general know that property prices are overheating at certain cities in Malaysia but still insists to play the musical chair game and gets "emotional" when people are spoiling the market for house flippers. Either by undercutting or inducing the fear of downward prices movement for the development. Some people even start posting to sell just after a few months after the signing S&P and the construction have not even started at ALL!!

Its like, a company is not doing very well, stock prices are dropping like hell but yet the directors is asking the employees to start buying up the stock themselves with their life savings. And the employees peer pressuring each other to boost the stock prices by buying so that they don't lose their hard earn employee stock options and scolding those whom sold out. And yet later on the directors are the first one to cashed out immediately when the stock prices rises and the employee is left holding the useless paper. Read the below posts and you will get what i am trying to convey :P

These posts are of desperate people and surely have no holding power should anything happen. So anyone that thinks that a double dip recession will happen, hoard up cash and prepare for a fire-sale :P

Person A: Dxxx sale, 8 floor, pool view, corner unit, 2 carpark RM315000. Interested kindly email to xxxx

Person B:Waliler, you sell so cheap, spoil the market ler! When others start with 380k, u cut by 65k ar... Can explain why?

Person A:i realistic mah.. u guys dreaming mah wanna sell so high.. go check if any sale was done at 380K? i sell cheap my problem lar. u tink dxxx like bxxx wanna hold long long to appreciate ah? u hope la.

Person B: Be smart ma, if wanna sell cheap also can just ask for buyer email and then discuss offline mar! You desprate for money and wanna make quick money nobody can stop you, but please also be considerate about others needs.

Person C:I think ppl is free to sell whether online or offline. You may be the owner of other unit, you may choose to sell at whatever price you want, and in whatever way, ppl don't give a damn on you. Don't think it is right for you to stop or condemn ppl how to sell or even buy other unit.Believe ppl needs money or not, also none of yr business too.Don't be overzealous to the property u owned.Typical XX feudalistic mentality, only want ppl to say what you like to hear or favoring yr interest. Anything is detrimental to you, should be do it behind close door or censor it.Then, u should open yr own blogspot and make censorship to all the comments that u don't like.Can't tolerate this type of arrogant punk.

Person D: This is the problem with high density condo. Always have a couple of "rotten apples" trying to spoil the market of a great project like this. I cannot stop you from being cheap, just hope this cheap stuff once gone and be forever

Person E:I say good luck to her, I wish there are less money grabbing out there.May good fortune be with her at all times. One good deed deserved another

Person F:All investors seems to be over ambitious about the appreciation of their property. Well, it's within your rights to assume so.Most of the property owners including Dxxx try to take Bxxx as the benchmark. Agree, the value appreciation of Bayswater is extraordinary but I don't think other properties will have the same phenomena, including Dxxx.You may value Dxxxx at RM350k, RM500k, or even more. Whether the property is over price or have any demand is waiting to be seen. You may even wait until it touch RM500k only to sell it. The "rotten apples" action could end up be a wise movea. As ppls always said, "don't count the eggs yet before it hatch Hope the "day dream" owner can realize their imagination target to sell it at RM380k or higher price.


  1. kampunginvestor // 5:10 PM  

    The product or property is yours. You can sell at 100k also nobody can say anything right? It's your rights as it's yours!

    People just can't understand this simple logic.

  2. Kris // 9:35 PM  

    I totally agree with you, kampunginvestor. I guess some house flippers gets very agitated if there is a rumor or possibility that the property prices never increases or worst of all ; drops.

    In general, IMHO you need to net at least RM100K to make a decent profit, minus all lawyer fees, tax, maintenance fee while waiting for their property to be sold. Small expenditures surely can add up to be a lot!!