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Thread: KL to limit bulk purchases of homes

  1. #1
    Junior

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    Default KL to limit bulk purchases of homes

    KUALA LUMPUR - The Malaysian government plans to implement a new ruling to restrict the bulk-buying of properties by investor clubs in an effort to curb speculation, especially in the Klang Valley.

    Minister of Urban Wellbeing, Housing and Local Government Abdul Rahman Dahlan said developers selling more than four units of their properties to a single buyer or group must now obtain prior approval from the Controller of Housing, The Star Online reported yesterday.

    The move is likely to affect the activities of these property investor clubs which normally enter into a tacit agreement with the developers to take up a large portion of their units before the launch of a project, said the newspaper.

    Because the clubs buy in bulk, they get a steep discount and pay a smaller down payment compared with individual house buyers. When the project nears completion, members divest their properties at much higher prices, said the paper.

    "Technically, these investors are not breaking any laws," Datuk Abdul Rahman told reporters at the unveiling of the Sime Darby Property (SDP) Housing Income Index Study in Kuala Lumpur yesterday.

    "I don't have a problem with anyone making profits, but the profits should not negatively affect other house buyers. By buying in bulk, it creates false demand which will result in price hikes."

    "In order to curb speculative activities by the property investor clubs, my ministry will establish a comprehensive database of house buyers so that we can identify the number of houses owned by an individual and take the necessary steps to curb unhealthy speculation," he said.

    He added that the ministry is currently in talks with the Real Estate and Housing Developers' Association of Malaysia and is expected to announce the measure in a month.

    The new ruling must also be published in every housing development advertisement and sale permit materials.

    The existence of property investor clubs came to light last year when developers announced huge take-ups in the first days of a project launch, causing an artificial demand, The Star said.

    This resulted in unsuspecting house buyers rushing to take up the remaining units, also causing a spike in property prices, the paper added.

    In a related development, Mr Abdul Rahman said the government may increase its RM300 million (S$115 million) allocation for the MyHome scheme which will be launched on April 1.

    The scheme will subsidise the purchase of low-cost houses by first-time buyers who earn less than RM3,000 a month.

  2. #2
    Property Investor

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    Cool

    Looks like tougher to get undervalued/group deals in kl n other my parts.


    Quote Originally Posted by dtrax View Post
    KUALA LUMPUR - The Malaysian government plans to implement a new ruling to restrict the bulk-buying of properties by investor clubs in an effort to curb speculation, especially in the Klang Valley.

    Minister of Urban Wellbeing, Housing and Local Government Abdul Rahman Dahlan said developers selling more than four units of their properties to a single buyer or group must now obtain prior approval from the Controller of Housing, The Star Online reported yesterday.

    The move is likely to affect the activities of these property investor clubs which normally enter into a tacit agreement with the developers to take up a large portion of their units before the launch of a project, said the newspaper.

    Because the clubs buy in bulk, they get a steep discount and pay a smaller down payment compared with individual house buyers. When the project nears completion, members divest their properties at much higher prices, said the paper.

    "Technically, these investors are not breaking any laws," Datuk Abdul Rahman told reporters at the unveiling of the Sime Darby Property (SDP) Housing Income Index Study in Kuala Lumpur yesterday.

    "I don't have a problem with anyone making profits, but the profits should not negatively affect other house buyers. By buying in bulk, it creates false demand which will result in price hikes."

    "In order to curb speculative activities by the property investor clubs, my ministry will establish a comprehensive database of house buyers so that we can identify the number of houses owned by an individual and take the necessary steps to curb unhealthy speculation," he said.

    He added that the ministry is currently in talks with the Real Estate and Housing Developers' Association of Malaysia and is expected to announce the measure in a month.

    The new ruling must also be published in every housing development advertisement and sale permit materials.

    The existence of property investor clubs came to light last year when developers announced huge take-ups in the first days of a project launch, causing an artificial demand, The Star said.

    This resulted in unsuspecting house buyers rushing to take up the remaining units, also causing a spike in property prices, the paper added.

    In a related development, Mr Abdul Rahman said the government may increase its RM300 million (S$115 million) allocation for the MyHome scheme which will be launched on April 1.

    The scheme will subsidise the purchase of low-cost houses by first-time buyers who earn less than RM3,000 a month.

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