The upward trend of housing industry in Malaysia lately, the probability of bubbling remain high. Government wanted to suppress inflation, its then leverage on low interest rate (revised on May 2011), however the on going of low interest created house price to escalating high, this could be beneficial to house owner for short term, but to public, the affordability issue arise especially in urban area.
Government may be considering, as long as the house price continue to rise, the economics will improved, the capital flow in market should be adequate, this could be politicised due to fish votes. Low interest can stimulate market; enable more dynamic and robust growth, but its also creating inflation. Government starts controlling over-whelming speculative activities, however the outcome remains uncertain.
(Photo : Bangkok Post)
The over-heated housing prices is not only an regional issue, the inequality of income vs. house price caused many incapable to own their dream house and situation is getting worst…
Full analysis – Download Housing Bubble Malaysia
The original article is written in Chinese, published on 20 May 2011 on blog