I was just having lunch with my banker a few days ago. The government is trying to "correct" market speculation by implementing taxes on private properties and additional taxes on top of the taxes for commercial properties.
My take on this? Based on what was happening in Hong Kong...govt implemented a 100% increase in stamp duty for properties bought by non permanent residents, has not subdued the hunger for buying properties here by non residents. All they do is increase the rent which has to be born by the renter. There was a slight correction of property prices though, but not significant enough as the difference is only 5%.
Back to KL...I think that there will be a slight slowdown or stabilisation of property prices as investors are being scrutinized more by banks before a loan is released. Bank Negara is putting a limit on repayment years on people who want to re-mortgage their properties.. So with all these in place, I will see a slight stabilisation, but still a strong need for properties in the KL/Klang valley areas. Many people are cash rich and as the famous Lee Ka Shing has quoted before, buying bricks are better than buying paper...
All of the above are my humble opinion only. As always, I stand corrected by anyone who has more updated or better information. Interested to hear what others has to say about the current trend.
DC