THE chatter of the week is that property prices will crash next year because of an impending interest rate hike and a growing supply of unsold houses. This encompasses completed and incomplete residential units that include landed property, serviced apartments, small office/home office (Sovo-Soho), high-rise condominiums and apartments. Closer scrutiny reveals that of the 130,690 unsold units, the number of residential units that are completed and not sold is 20,876 units. The number of completed residential units priced below RM500,000 but not sold is 13,605 valued at a total of RM3.75bil. Based on history, property prices tend to fall off the cliff when there is a shock to the system because liquidity dries up.

Source: The Star November 18, 2017 00:11 UTC