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TOPIC: Property Bubble

Property Bubble 9 months, 3 weeks ago #19626

What is a property bubble? How does it happen? Are we heading for one now in view of some of the ridiculous prices of properties now?

Re:Property Bubble 9 months, 2 weeks ago #19654

A real estate bubble or property bubble is a type of economic bubble that occurs periodically in local or global real estate markets.

Re:Property Bubble 9 months, 2 weeks ago #19657

Property bubble occurs when a development has more speculators than actual buyers.

eg. Condo A - 200 units
Speculators/Investors have invested 150 units.
Genuine buyers/homestayers have bought only 50 units.
In conclusion, there are more speculators/investors than genuine homestayers.
These are the people who pushed up property prices due to unreal or speculated market demand by the big guns, and the genuine home buyers are the ones who suffer from higher prices and limited units.

Here, property bubble comes into play. There are times when property bubbles will burst.

Re:Property Bubble 9 months, 2 weeks ago #19660

When the prices have gone sky rocket by these speculators, who will the next buyer to take over the property? When no one is able to take over, the bubble burst.

Re:Property Bubble 8 months, 1 week ago #19751

The bubble is in terms of deviations that are caused due to the relative worth of property and housing property in term of housing bubble.

Re:Property Bubble 8 months, 1 week ago #19761

Unfortunately, this property bubble happen so fast.. it has never happen that way before any other time in history... so the outcome of how this will end is hard to predict .... Does anyone know what factors contribute to the bursting of the bubble? Does anyone know the percentage of home loans that went into refinancing vs investing vs home use? Something like this statistic; (Australia percentage of home loans of refinancing vs investing vs home use) Or where can I find such data for Malaysia?
investinpropertyabroad.com/2011/09/11/re...to-an-18-month-high/
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