Indirect impact of oil prices

DURING an interview, the Association of Valuers, Property Managers, Estate Agents and Property Consultants president Datuk Siders Sittampalam pointed out that should oil price continue to trend downwards, so should prices of properties due to lower cost of production and logistics. This was debunked by his contemporaries.

The relationship between oil and property price may be an indirect one, via interest rate because properties, being a big-ticked item, needs bank financing. When interest rates are low, there is no motivation to keep money in a bank.