House price would never decline, even if it declined it would be for a very short period.. because the power of willing buyer willing seller is so high and the nature of human's greed .... As population increases and the joy of the present youngsters who have a great desire to have their own house to laze around, to have their own comfort and cozy home, thus they will grab any available opportunity to own a home on their own... thus the willing buyer and willing seller phenomena... where prices of house escalated not based on its fair or fundamental values but merely the power of greed and desire to have own home and lots of money....
Chat with my brother-in-law about this topic recently.... and he has suggested a logical mechanism to control the unreasonable price of houses in the country, especially in Penang, KL and Johor Baru.... His basic mechanism of the system is for the government or power that be to impose a 10% price reduction for every successful house transaction.... a system similar to the dealing of used car price. Therefore price of houses would not be pushed higher or speculated by the rich speculators or employees of housing developers.... No reason 90% of the units of a housing project can be so easily sold out within few hours on the first day of the launching of a project... must be a hanky-panky behind this.. and most of us know about it... but what to do.... herd mentality and greed.....everybody wants to own a house!!!!!
Why not implement my brother-in-law's suggestion;
10 % price reduction for every successful transaction
Example : If you bought a house at a price at RM500,000
then, if you want to sell it, the maximum price the same house could be sold out at RM 450,000.
Isn't that interesting?
In the long run the price of houses could be controlled and be capped at a minimum price and would not be pushed up without any solid reason.