Property Demands Dropping and Counting

Refresh back, I did posted about the property price in recent time. There have been lots of report saying that the price will be expected to drop in coming months. However, my own thinking is that it will not really drop but instead the demand will be a lot more slower as people tends to be more careful buying property by selecting a better located properties or saving more cash.

The picture attached showing the demands of property between Q3 07 to Q3 08. Noticed that the trend is sliding down. I bet the chart will even look likely to be a straight line down come end of 2009 or at least till middle of 2009.

Here are some other interesting facts that you might want to know:

- Exports in Malaysia fell 4.9% in Nov 2008 from a year earlier, the biggest drop in nearly 7 years

- During the month, manufacturing sales saw an annual contraction of 1.6%, first decline in 13 months !!! Causes? - reduced export and domestic demand, rising unemployment and companies downsize.

- Bank Negara Malaysia (BNM) slashed interest rates by 75 points to 2.5% last month. Statutory Reserve Requirement (SRR) reduced from 3.5% to 2% yesterday. This will frees up more capital for bank to lend.