28/11/2025
“Have you ever wondered who controls the property market?!”
Why would anyone invest in the housing market? (1) For own use. (2) It starts making money. So only in a stable and growing economy, the property market can grow. If property prices within that country often collapse, nobody would be owning homes.
Then when the market is stable and growing, government will start monitoring capital movements. Especially for developing countries, the property market is a direct contribution to the GDP and it involves about 300-400 different industries. That’s why a vibrant property market is always the goal, but the fear is when it gets too hot.
How to differentiate between a fast growing property market versus a bubble? Personally I refer back to the past transactions and current rental rates. A RM1mil property might sound expensive, then I think it’s reasonable when the rental market is around RM6000 a month. Plus governments are always monitoring using tools such as interest rates, loan margins and ownership policies.
Again, we all want a stable growing property market but not a speculative bubbly one.
