Price of houses and shophouses have been sky-rocketing and there is no indication that it is caused by high demand of residential and commercial building.
Some blamed it on the increase in material cost while other suggested that money-laundering may be the cause of price-hike.
The land value and material cost could never justify present terrace house price of RM380,000 or more and shop house price of RM950,000 or more. While other said the Association of developers agreed on such prices. If it is true, under the newly implemented Competition Act, such agreement on price is now illegal and punishable under the ACT.
Real estate prices have been increasing at such rate that it is no longer worth buying in Sibu if it is for investment purpose. With such price one can easily get a better deal in Kuala Lumpur, Johor bahru and Kuching as the population there is much bigger than Sibu therefore giving you better potential in term of investment.
Will such ‘high-price real estate’ bubble burst in 6 month time; especially when those buyers find it hard to make good each month installment or when base lending rate increment later on making it impossible to pay new installment? Will it affect banking industry subsequently? Bank Negara Malaysia ready for such possible undesirable outcome?
