RM200,000 Flats - Reality or Fantasy

By 2014 or 2015 or so a 2 bedroom flat in certain area of Kuala Lumpur will cost RM200,000. Hey.. its not me who's saying it.. its in the news - http://www.bharian.com.my/bharian/articles/HargafletRM200_000/Article/

I almost cant believe what I am reading.. and while reading it I cant help but to count my so called new "durian runtuh". Bonus comes early this year.. or this life time.. hahaha.. that was what in my mind while I was reading the news clipping..

However, once reality sets in.. I come to my senses.. will it ever come true? What is the basis of this "prediction". As I was looking for an answer.. my thoughts travel way back in the early 80's where "life" is though tough but more simpler in Malaysia. A two bed room flat then would cost only about RM15K... during the 90's it grew to RM25K and in year 2000.. the government set it at RM35K - these are for the new development. The subsale of these 2 bedroom flats currently are about RM50K to RM90K..  6 times more than the original value depending on the location. YES.. again LOCATION.. LOCATION.. LOCATION is still "the" influence factor... But hey.. that's a decent growth of 5% per year.. so if my math is correct.. by year 2015 or so.. the value would be somewhere around RM115-120K... where does the RM200K came from then... is it achievable?

I am here not to challenge the report nor am I trying to discredit the analyst.. though skeptical.. I think it can only be achieved if the followings were observed;

1. Property loan is given up to 3 generations... yes.. 3 generations like what is currently being practiced in Hong Kong.. but of course minus the "margin call";
2. Full refurbishment, enhancement and "re-branding" of the 2 rooms flats need to be done

We all know that valuation is a creation of opinion..until it is realised it will still remain as OPINION!