What is the Definition of Property Bubble

A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels relative to incomes and other economic elements, followed by a reduction in price levels. Source: Wikipedia

As we noticed, China property bubble, Hong Kong property bubble, Australian property bubble, and Singapore property bubble related news are reported frequently in all major newspapers.

Is there any property bubble in Malaysia too? Perhaps, I should ask, are you ready for the property bubble burst, if happen?

{ 2 comments… read them below or add one }

james

the sooner the better… can acquired more property @ prime area @ discounted price…:)

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Agent Diary

Every bubble end up with bursting, but unlikely we will have the kind of nationwide/all property wide price drop as in US/Europe. Simply because of the level of equity here is still over 60%. Many owners is able to hold.

Even if we have the kind of US/E.U crisis, do not expect many people have the capacity to buy then due to pay cut, job loss or business go burst. Remember, credit crisis often follow precedence by rate hike first. Even if you have able to keep you income as prior crisis level, the cost of borrowing will be sky rocket.

Thus, waiting for price drop to buy is closed to fallacy for most ordinary folks, unless he’s financially loaded (if so loaded, why not buying now?). Sorry to spoil the party, I am just telling the hard truth.

More realistic option: How to protect the wealth you posses now if crisis hit.

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