In the aftermath of the Asian property crisis in 1997 many unfinished buildings dotted the cities like Bangkok or Kuala Lumpur. Upon visiting Kuala Lumpur and Penang in Malaysia I found signs for a similar property boom in the making. Every high-raisers are being erected and eager buyers are snatching up condominiums. Everyone I talked to told me about the steady raise in property values and the friend they have who got rich with buying and selling properties. It is obviously a sure bet! What many do not realize is that the market prices are often set by property developers who also limit supply. That does not deter parents putting down the down-payment for condominiums for their children. For the longest time the required down-payment was only ten percent, recently having gone up to 20%. Apparently the government thinks things have gotten out of hand. It is enforcing new restrictions like minimum holding periods and minimum down-payments. But with lots of cheap cash at hand, buyers and banks are eager to drive the property market further up.
The Dubai property bubble has just burst an many have suffered its drastic consequences... so watch out for the next bubble.
Posted by: Home Staging Toronto | June 30, 2011 at 07:51 AM