A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline. The questions of whether real estate bubbles can be identified and prevented, and whether they have broader macroeconomic are answered differently by schools of economic thought, as detailed below. The financial crisis of 2007–2010 was related to the bursting of real estate bubbles around the world.
The 'Skim Rumah Pertamaku' that was introduced for 1st time home buyers to obtain 100% margin financing for their first homes below RM220,000 - seems to be the big thing to come by end of 2011 and for 2012. The Government is stressing on one thing - Affordable Homes. To add on to this, the Government is also allowing those earning less than RM6k per month to obtain 90% loan margins with 10% guaranteed deposits for apartments between RM220k-RM300k.
SO... back to the original question... is there going to be a property bubble in Malaysia happening soon? In my personal opinion, yes and no. Obviously no for the cheaper range properties, those RM200k will be very safe to invest in; those at RM500k still a fair bet, and the million dollar properties... invest at your own risk. =)
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