Property downgraded

UOB Kay Hian downgrade property market quoting the lower expected sales on second half of the year. This had lead to almost all property share price seeing red this few days, the aftermath of the said report.

No doubt property market have seen a bit of slowdown especially the new loan arrangment on third house onward and more barrier to reduce speculation among the investor. However, does this mean property market is seeing a death end? Seriously I never think so...

Investment is like a trend. This year people might like gold, next year people might like bonds.....That is reality.

But lets look at the property market as it is.

Property is always consider a stable investment. Share market will drop. Gold is expensive but imagine if price drop, you left with just an 'iron'. Land and property on other side never see depreciation on sudden mode. They are quite stable and appreciate over time. Few years back if you have a land in Klang you might think it worth nothing, but the price of land in Klang now soar like nobody business.

Property bubble going to burst? Not so fast.....Price in JB had increase steadily over the few years thanks to investment from Singapore. Klang valley continue to soar although there is lot of news that it was an oversupply status. If over supply, ask yourselves why property developer keep on building new residential, commerial offices? Why is people still buying.....and just because sales expected to drop, the market is to be downgraded.....erm.....well I am not a economics or reseacher, but I feel that big propery player like SP Setia, Mah Sing Group and Sunway are steadily recording a jump of sales over the first 2 quarter and they are expecting even a higher jump on the rest of the year.

Sime Darby investing in E&O and property developer increasing their landbank over the period hints that property developer are still very comfortable that the market will be expending. Government ETP and MRT project will give positive impact into property sector.

House is overprice....Well, I agree on this point. It was so high that most people cant buy any house. Well......looking at this point, it may look bad for the citizen but look at the sector itself, more people will end up renting house. That mean rental income will come into picture and more people are keen on property investment. True? Moreover even our house is overpriced, please look at the south (singapore) and north (HK and Japan).......you will feel so much relieve that we do not need to cramp into small house and still paying double or triple of the house price!!!!

Government plan to increase control on house loan.....erm, I have no comment on that. See it positively, if increase control mean reduce probability of bubble burst....Wasn't that something good....Anyway, that is just plan....Plan can always get scraped.

So no worries.......

Well, the reason I blog about this today is I saw SP Setia price reach as low as 3.09....I almost fainted when the price was traded at discount and most banks put an 'HOLD' on SP Setia share with a price of RM 4.00....but today it end up at 3.09....gosh, pengsan

Then i search on Mah Sing Group.....Fulamak....lowest until 1.80....I thought I just read on bank recomendation that 'HOLD" the share with predicted price of RM 2.60......

Pengsan pengsan...........why is property seeing red this week.....whats more I am working in property line now!!!