What will happen to the price of the properties in the Klang Valley if Malaysia has economic downturn caused by world recession??
1. To the upper medium to high-end property where people buy for speculation, investment , that will be hit. To the high-end condominium and shoplot where the supply is more than demand where all were sold out fast and snapped up like hot cakes but empty with "For Rent or Sale. Interested, please call...", banner, that will also be badly hit.
2. How about property below RM350,000.00 which has strong demand in the Klang Valley and the new terrace houses below RM220,000.00 each in Klang / Shah Alam vicinity, Klang / Kuala Langat vicinity? Areas around Banting, Kapar, Meru and Pulau Indah?
3. In this category of houses, where the demand is much more than the supply at this point of time and for few more years to come, the effect in the price will be minimum. The house buyers under this category are majority owner occupants. Their demand for the property are real.The real demand will sustain the price.
4. Even if Malaysia economy is hit, the property market is hit and when there is inflation - food and a shelter over the head in the form of a house are still basic human needs. You still have to pay for rental to stay in the house if you haven't already owned one. As long as the monthly instalment is not very much higher than the monthly house rental, demand for this category of house will be converted into " consumption " through purchase of the property if the loan procedure and initial deposit requirement isn't too deterring.
