Thursday, 29 August 2013

What factors drive the housing prices?

What factors drive the housing prices?

Among the factors are:
1.  A dropping interest rate
2.  Increasing liquidity in the banking system
3.  A growing economy

All the above factors drive the demand for residential and other real estate.  This causes the prices of these real estate properties to rise.

Property prices in Malaysia have been rising since 2005. At present, the real estate prices have not softened in the Klang Valley, though property transactions have dropped compared to the previous years.

Will property prices in the Klang Valley soften?  Will interest rates rise and adversely affect the demand from the end-users or end-buyers?   Is there a rise in the inventory of unsold property in the real estate sector?  Are builders able to meet their loan repayment liability as well as complete their already started projects?  Are builders turning prudent through cutting prices to sell their units and to generate cash?

1 comment:

Anonymous said...

Everything is reversing now or will reverse soon.

Either the bubble burst now or there will be alot of millionairs in Malaysia like Indonesia.