Malaysia - Housing

[winston]

Property investors in Malaysia urged to take long-term market view by Cheyenne Hollis

Malaysia property market being plagued by investors ‘flipping’ property.

The Malaysia Real Estate and Housing Developers Association of Malaysia (REHDA) have urged property investors stop ‘flipping’ homes and start taking a long-term view of the market, The Malaysian Insider reported.

REHDA believe too much speculation is damaging the country’s property market. The comments come after widespread complaints that speculators or ‘flippers’ have been responsible for pushing up property prices in urban areas, crowding out genuine homeowners and investors.

“We, as developers, we also don’t want speculators to come and buy to flip,” Datuk Ng Seing Liong, REHDA’s former president, said. “Too much speculation is no good. We want a long-term and sustainable market.”

The Malaysian government has attempted to discourage the ‘flipping’ of property. Real property gains tax (PRGT) has been raised twice in the last two budgets after having been abolished in 2007.

This year, the RPGT was raised from ten to 15 percent for properties sold within two years and from five to ten percent for properties sold between two and five years from time of purchase.

There is no RPGT levied on properties that are sold after five years.

http://www.property-report.com/property ... view-25550

[kennynah]

increase capital gains tax ...they learn from the best...

of cos, it is not effective... this measure...

a better way would be to target at the borrowing measures... once speculators cannot leverage, the demand will drop off instantly and so the prices as well

but no lah...Malaysians Boleh one... no need a neighbour to tell it what to do hor

[winston]

400 conned into buying non-existent houses around M¿sian city

By News Desk in Shah Alam/The Star | Asia News Network

Shah Alam (The Star/ANN) - Five property agents have conned at least 400 people into buying non-existent houses priced between 150,000 ringgit (US$49,180) and 280,000 ringgit.

Some of the victims were eventually declared bankrupt by the banks for not settling any of their payment.

Apparently, they had paid about 10 per cent deposit to the property agents and signed the agreement without the presence of lawyers.

Selangor police chief Deputy Commissioner Tun Hisan Tun Hamzah, said the victims had booked the houses during a property fair in Kuala Lumpur in 2006.

After waiting for almost six years, he said 138 victims decided to file a report against the agents.

"A check showed that the supposed projects in Meru, Klang and Banting do not exist at the mentioned location," he said yesterday.

The victims had approached the Muslim Consumers Association of Malaysia (PPIM) before lodging reports at eight district police headquarters in Selangor on Sunday.

Police are also investigating the possibility of involvement of parties from local banks suspected of collaborating with the so-called agents.

Tun Hisan said they had identified six banks that had approved loans for the non-existent projects.

"We are investigating if there is any element of forgery," he said.

Police are expecting more victims to come forward to assist them in their investigations.

http://sg.news.yahoo.com/400-conned-buy ... 06043.html

[winston]

Foreigners snapping up Malaysian properties by SHAREN KAUR

THERE is an influx of investors from China, Hong Kong, Japan, Singapore and South Korea buying residential properties here, says PropertyGuru.com.my head of marketing Jason Thoe.

They are buying the properties for their own stay or as an investment, and their targets are Klang Valley, Penang, Johor and Sabah, he said.

There is concern now of rising property prices. In the last two to three years, property prices have risen by 10 per cent to 30 per cent, mainly in Kuala Lumpur and Penang.

The myth faced by the property sector is complaints of houses being overpriced because of higher foreign ownership and speculation.

But according to Rehda (Real Estate and Housing Developers’ Association of Malaysia), only less than two per cent of local residential properties are owned by foreigners, and the majority are located in the Kuala Lumpur city centre.

To prevent a property bubble, the government said it is raising the threshold price of residential properties for foreigners from RM500,000 to RM1 million.

“That is not going to change anything. Foreigners are still buying properties worth over RM1 million. They are buying because they have the money,” Thoe told Business Times yesterday at the launch of PropertyGuru’s property showcase.

On the outlook for 2013, he said there will be higher transactions for properties priced below RM700,000, especially apartments and condominiums.

“The new hot spots will be Seri Kembangan and Kajang because of the infrastructure development. Developers with reputable brands will have a good following.

“The secondary market in some areas in Klang Valley will also experience growth as first-time property buyers look for affordable terrace houses priced RM800,000 and below,” he said.

Thoe said Iskandar Malaysia, George Town and Kota Kinabalu are also experiencing higher property transactions.

“Property prices in Kota Kinabalu have been increasing steadily in the last 10 years.

Developers there are launching properties priced around RM1,300 per sq ft, almost on par with Petaling Jaya. The buyers are mainly Sabahans,” he said.

On the property showcase,Thoe expects the 13 participating developers to generate more than RM15 million in sales collectively. They include UEM Land, Country Heights, Andaman, Land & General and Naza TTDI whereby properties are priced between RM400,000 and above RM1 million.

http://www.btimes.com.my/Current_News/B ... z2AS0xG8Rd

[winston]

Malaysia home prices unlikely to see decline

Realtors say lenders and borrowers have adjusted to stricter lending rules

By Pauline Ng

MALAYSIA'S realtors expect prices for residential properties to either increase or remain stagnant next year, but a decline is unlikely because lenders and borrowers have adjusted to stricter lending rules.

In popular mature locations where housing stock is scarce, a price rise is almost inevitable, said the Malaysian Institute of Estate Agents (MIEA).

Indeed, there are concerns that there will not be enough listings next year (in the secondary market), Reapfied Properties chief executive Gerrard Kho said, noting that transactions have picked up in the last quarter and the momentum is expected to continue into the coming year.

"I think the property market is only starting to move now in 2012," he said

Source: Business Times

[winston]

More Malaysians now living in posh areas By EUGENE MAHALINGAM

PETALING JAYA: Many Malaysians are now occupying high-end condominiums and apartments in prime locations in the Klang Valley, including the KLCC and Mont Kiara areas, which were previously exclusive to mostly expatriates.

The Malaysian Institute of Estate Agents (MIEA), which said it has been seeing a demographic shift in the past 10 years, said gone were the days when areas such as the KLCC and Mont Kiara were home to mostly expatriates.

“Previously, condominiums in the Klang Valley were mostly purchased by investors and rented out to expatriates.

“But in the last 10 years, we have been seeing a shift in this,” said MIEA deputy president Siva Shankar during the MIEA's 2013 Property Outlook last week.

He said in the past, many Malaysian families preferred to live on landed property.

But that has changed and many Malaysians are now end-users of condominiums in prime locations including the KLCC and Mont Kiara areas.

MIEA president Nixon Paul also said it was a misconception that expatriates were mostly concentrated within the city centre, especially in locations such as KLCC and Mont Kiara.

“Many expatriates today are choosing to live near the international schools.

“Previously, many of these schools were concentrated in the city but now there are a few in the outskirts.

“So we are actually seeing a lot of expatriates moving away from the city centre,” he said.

On the apartment and condominium, residential terraced/detached market in Penang, Raine & Horne Malaysia director Michael Geh said new launches in prime locations are being snapped up at the developer sale price.

He added that strong banking support for developer direct sales made this segment the “strongest moving segment.”

“The secondary condominium and apartment market are facing challenges due to loans offer at lower margins of 70%,” he said in a note at the same event last week.

He said that the commercial and shophouse segment in Penang also experienced strong take-up and steep capital appreciation this year, adding that there was also strong take-up for industrial land and facilities in Penang.

Geh added that asking and transacted prices of development land reached record high levels this year.

“However, newly imposed regulations and guidelines on development have hampered the planning and development process.

“But we believe that this will stabilise in 2013,” he said.

http://biz.thestar.com.my/news/story.as ... c=business

[winston]

Over the years, I have been looking at some condos in KL.

My criteria:-
1. Next to a shopping mall. Connected would be better.
2. Close to a subway station
3. Close to an International School
4. Good view

The following are some notes for myself:-

1. Publika Mt Kiara, Boulevard Tower & Park Tower: Around MYR 800/sq ft. No Subway. Small units. Close to international school.

2. Condos at Mt Kiara are averaging around MYR 550/ sq ft

3. Tropicana: Around MYR 800 / sq ft. No subway. Small units.

4. Mid-Valley: Parking is a problem. Kommuter train station nearby. Subway in a few years.

5. Amcorp Mall: Taman Jaya LRT across the road. Around MYR 750 per sq ft. Mall a bit run-down.

[winston]

Residential property market to ‘soften in Q1′

KUALA LUMPUR: Asia’s number one network of property portals, iProperty Group, expects the residential property market to be soft in the first quarter of this year as investors stay on the sidelines.

The group said with the exorbitantly high selling prices, stringent banking rules and uncertainty from the upcoming general election, more property investors are being cautious in their approach, thus limiting property speculation activities.

CEO Shaun Di Gregorio said this, however, would present a good opportunity for home owners to enter the market as prices would likely remain stable and be less prone to rapid increases.

“The property market is expected to remain stable this year, subject to the election being done and out of the way,” he told a press conference on the group’s Asia Property Market Sentiment Survey (H1) 2013.

Di Gregorio said although property prices in Malaysia have accelerated in the past few years, they are still deemed good value due to the good infrastructure by regional standards, good hospitals and schools.

For the second half of this year, he said, assuming the election is held in the first half, the property market should be fairly good and stable.

On key findings in the survey, he said Malaysians have the highest annual household income compared with respondents in Indonesia, Hong Kong and Singapore.

“From over 8,000 respondents in Malaysia, with the majority aged 26-35 years old, 57% had an annual household income of RM30,001-RM80,000, while 41% of the local respondents owned significantly more than one property, compared with respondents in Indonesia (16%), Hong Kong (18%) and Singapore (22%),” he said.

The survey findings also indicated that 34% of the respondents’ budget was between RM350,001 and RM500,000, with landed properties the most popular choice.

“Half of the local respondents said property prices were too highly priced, while 16% answered that they could not find a suitable property and 69% of the respondents called for more affordable housing, as it is likely that many families are starting to feel the weight of soaring property prices,” he said.

Di Gregorio said respondents were largely split between wanting the government to do more and believing that the recent increase in income limit for the My First Home Scheme would be enough to assist people on their home-ownership journey.

- Bernama

[winston]

Rental rise seen for high-rise luxury residential properties By EUGENE MAHALINGAM

PRICES of luxury high-rise residential properties within the Klang Valley are set to see an increase in rentals this year, but are unlikely to reach levels that were achieved before the global financial crisis hit in 2008, say experts.

Malaysian Institute of Estate Agents (MIEA) president Nixon Paul says he is optimistic about the outlook for high-end residential condominiums this year.

“Rental values have dropped from its high (in 2008) but have since stabilised and are slowly on its way up. We see a slow and gradual move upwards but not a dramatic increase,” he tells StarBizWeek.

Nixon says after the financial crisis hit in 2008, rentals of high-end residential condominiums “took a beating.”

“The slowdown in Europe and the US caused by the financial crisis at the time caused many expatriates to pull out and there was also an oversupply of condominiums then.

“But things are more stable now in Europe and the US. Furthermore, various Government initiatives under the Economic Transformation Programme are helping to attract foreign investment. The oil and gas sector is also responsible for attracting a lot of expatriates,” he says.

MIEA deputy president Siva Shanker is also optimistic about the high-end residential sector this year.

“Barring any unforeseen circumstances in Europe, the US and China, we’re looking at fairly reasonable growth in both rents and occupancy rates of high-end condominiums in areas like KLCC, Mont’Kiara, Bangsar and Ampang.”

Siva recalls that after the global financial crisis hit in 2008, many companies in Europe and the US started having financial difficulties and either pulled back their employees or reduced the quantum of their employees’ housing loans – which had an adverse impact on the local high-end condominium market.

“Because many companies were restructuring around the world, there was a drop in high-end rental market. Rents came down by between 30% and 35%. It also did not help that we had a huge oversupply situation. Developers were building but the expatriates were returning back to their home countries.”

At this point, occupancy rates dropped while vacancies rose, says Siva.

He says that many expatriates that remained in the country moved to cheaper apartments.

“High-rise condominiums within the KLCC area suffered the most. There was a lot of supply that came in between 2007 and 2008. Many investors bought them and some developers promised expected rentals of RM20,000 a month!

“But in the last couple of years, we are seeing a recovery. Many expatriates are coming back. We haven’t recovered to the pre-financial crisis days but condominiums within the KLCC area is doing well. We believe these apartments have an occupancy rate of 80% or more, presently.

Nixon meanwhile says it was difficult to determine current rental rates of high-end condominiums as there were “too many variables.”

“Rental rates depend on a lot of factors. Are the units fully or partly finished? Is it on a higher or lower floor? Does it have a great view? There are a lot of variables,” he says.

According to C.H. Williams Talhar & Wong’s property report card for Klang valley in the first half of 2012, the overall luxury condominium market during the period faced a competitive market environment.

“These could be due to the tightening lending guidelines introduced by Bank Negara as well as the reinstatement of Real Property Gains Tax as of Jan 1, 2012. On the demand side, the sales rate was stable.”

As at the first half of 2012, it said the total supply of luxury condominium in Kuala Lumpur increased by 2.2% from 21,771 units (137 developments) in 2011 to 22,268 units (140 developments).

“Generally, the average occupancy rate for existing luxury condominium in KL has been on a downtrend since 2008 except for the Kenny Hills area. In the first half of 2012, the average occupancy rate further decreased by about 5% to 61.6%.

“Both condominiums and serviced residences experienced the downtrend registering occupancy rates at 63.2% and 59.5% respectively.”

It said prices of luxury condominiums in KL have remained stable as compared to 2011.

“In the first half of 2012, two new launches were announced. However, sales prices in KLCC area are estimated to range between RM800 per sq ft and RM1,600 per sq ft. The Pavilion Banyan Tree maintained sales prices at an average RM2,000 per sq ft.

“In terms of rental levels, the average asking rental levels of luxury condominiums have remained stable, ranging from RM5 per sq ft to RM6.50 per sq ft monthly in KLCC and Ampang Hilir / U-Thant.

Other areas such as Bangsar and Mont Kiara are asking about RM4 per sq ft to RM6 per sq ft per month.”

http://biz.thestar.com.my/news/story.as ... c=business

[winston]

The Pros and Cons of Buying Property in Malaysia By Ryan Ong

http://sg.finance.yahoo.com/news/pros-c ... 00190.html