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Thread: No surprises in Malaysia property report

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    No surprises in Malaysia property report
    The Star/Asia News Network
    Saturday, Apr 26, 2014

    Property experts say the findings of the Property Market Report 2013, released last week by the National Property Information Centre, came as no surprise, with the various cooling measures having their intended effect of curbing speculation and excessive price growth.

    Less certain is whether demand will recover in earnest during the second half of this year, in what some expect to be a "pre-GST boom".

    CEO-Agency of property consultancy PPC International Sdn Bhd Siva Shanker tells StarBizWeek that he sees buyers making a beeline to snap up property in the two quarters prior to April 2015, when the GST takes effect at an initial rate of 6%.

    Shanker, who is also president of the Malaysian Institute of Estate Agents, does not believe Malaysia will follow the example of Australia, where prices soared and then tumbled pre- and post-GST back in 2000.

    "In Malaysia, what goes up does not come down. I think our property prices will rise ahead of GST and find their level there," he says.

    According to the Property Market Report 2013, volumes shrank 10.9% to 381,130 transactions but their value rose a marginal 6.7% to RM152.37bil (S$58.6bil) from RM142.84bil in 2012, indicating that prices gained strength despite a raft of measures designed to rein in speculation, including a ban on interest-bearing schemes and a higher real property gains tax.

    "Most people say 2014 and 2015 will be tough years for the property market. A slowdown usually lasts for two years.

    "But looking at the report, my view is that 2013 and 2014 are the slowdown years. I expect the market to normalise in 2015 and make a full recovery in 2016 and 2017," Shanker remarks.

    "This year's volumes will probably be flat, but prices are not likely to go down."

    As in the past, the report showed that the residential market dominated close to two-thirds of all transactions.

    Approvals for housing loans, however, fell sharply compared with an expansion the year before. Total loans disbursed for the purchase of residential properties rose to RM74.4bil from RM64.1bil.

    The report says construction activity stayed solid, backed by high-rise and high-end properties in the Klang Valley, Penang and Johor. The shop and industrial segments also saw higher starts and building plan approvals in 2013.

    The occupancy rate for retail and office space remained firm, buoyed by a moderate increase in new supply, as well as fewer starts and new planned supply.

    But the market showed evidence of softening across the board. All sectors posted reductions in transaction activity, led by commercial and industrial properties.

    Most states fared worse save for Johor and Perlis, which recorded high single-digit improvements.

    Five states experienced double-digit contraction in activity, with Putrajaya, KL and Kelantan topping the list.

    According to the report, residential properties saw improved sales of new launches and more housing starts and completions, which helped pare down the number of "overhang" properties.

    The all house price index jumped to 192.9 points against 172.8 points the year before. Average prices rose 10% to RM266,304 from RM241,591.

    In terms of volume, most states posted a downturn except for Johor, which expanded 16.6%.

    In value terms, all major states saw growth except for Kuala Lumpur, which declined by 9.7%. Johor was most improved with 63.2% growth, while Selangor recorded 2.8% growth and Pulau Pinang, zero growth.

    Houses priced between RM250,000 and RM500,000 were the most popular, capturing 27.3% of all transactions, while demand for those in the low-cost RM100,000-RM200,000 category weakened.

    Terraced houses made up the largest share of residential transactions, with Selangor, Johor and Perak contributing to more than half of the market share, followed by condominium and apartment units, most of them being transactions in Selangor and Kuala Lumpur.

    The number of new launches fell last year after three straight years of growth to 48,290 units from 57,162 units in 2012, even as their take-up receded to 45.1% against 47.7%.

    Kuala Lumpur, Selangor and Perak topped the list of new launches, commanding 57.4% of the national total.

    From a price standpoint, the Kuala Lumpur market continued to be resilient. The report reveals that single-storey terraced homes at Bukit Bandaraya and Lucky Garden, both in Bangsar, saw 25.3% and 11.4% growth, respectively, pushing the value of a unit to upwards of RM1mil.

    Spurred by the MRT factor, homes in Taman Bukit Anggerik and Salak South Garden posted 17.2% and 17.8% growth, while double-storey terraced units in Kepong's Desa Park City ranged between RM1.31mil and RM2.48mil.

    The report highlights that select condominiums in Kuala Lumpur, such as Bangsar Puteri, OBD Garden Tower and Casa Vista experienced growth of over 20%.

    A downtrend was seen in Mont'Kiara Damai and Tijani 2, however, as prices tumbled by 5.7% and 12.4%, respectively.

    Home prices also stayed firm in Selangor, but Johor's landed residential segment jumped by double-digits in certain areas, particularly Johor Baru.

    Condominium pricing in Johor Baru remained competitive, with the highest transacted price being RM500,000 per unit in Taman Pelangi. On average, units were priced between RM150,000 and RM350,000.

    Up north in Pulau Pinang, residential properties were stable as the limited number of terraced houses on the island boosted demand for the Timur Laut and Barat Daya districts.

    While Iskandar Malaysia was clearly a boon for Johor, CH Williams, Talhar & Wong managing director Foo Gee Jen says he is concerned if that performance is sustainable.

    The veteran property consultant also expects a pre-GST rush for property.

    "Buyers are concerned that prices will go up. If you are looking at a piece of property, now is the time to lock in your purchase," he quips.

    In Foo's estimation, residential property could experience an 8%-10% jump in price after GST, and the landed segment a stronger 10%-15%.

    "There is no oversupply in landed homes, but I can't say the same for condominiums, especially the Soho (small office home office) or Sovo (small office versatile office) types."

    Kim Realty CEO Vincent Ng tells StarBizWeek that demand in the primary market remains firm and will likely continue apace unless interest rates go up.

    "The primary market may gain traction in the second half as developers have been holding back on launches. Those with unsold stock will want to unload them before GST," he points out.

    "I don't think prices will be cut drastically, but developers will make it attractive for buyers."

    Nonetheless, Ng acknowledges that the banks have tightened the screws on mortgages, leading to a mass of loan rejections.

    "From what I understand, 30%-50% of the people who have put in deposits have had their loan applications denied for various reasons," says Ng.

    "The damage has already been done. More cooling measures will kill the market," says another property agent.

    - See more at: http://business.asiaone.com/news/no-....W6KJMIpa.dpuf

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    How is your 100 trees? Price is tumbling.

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    Quote Originally Posted by Thermofisher View Post
    How is your 100 trees? Price is tumbling.
    Thanks for asking. It doesn't matter. It is never for sale in the first place and I bought it cheap.

    I think subsale prices have stagnated but it reached roughly what I estimated 2-3 years ago (~$1,400 psf upon TOP for 2-bedder). Rental is quite good, as I'm still receiving requests to view from agents, mostly from expatriates.

    West Coast is a growth area. Over the next 5-10 years, the price direction is up.

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    As long as there are new companies setting up, most will definitely employ a fraction of foreigners. So the overall demand for rental should not fall too much.

    With US economy recovering (as seen from our manufacturing exports), it is a matter of time in next 1-2 years before the new condo supply are taken up. Locals are just facing a bigger barrier from upgrading. Foreigners will be happy picking cherries.

    So I don't expect a major correction except for this year. Northwest might face some challenges for residential sector though. However I think commercial sector (e.g. coffeeshops, malls and childcare centers) will do well there.

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    May have Sharper decline in msia property mkt after 1mil cap from may 14.

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    Quote Originally Posted by Royston8H View Post
    May have Sharper decline in msia property mkt after 1mil cap from may 14.
    More likely panic buying before GST in 2015.

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    So buy properties will also attract GST? Or maybe only for commercial like singapore?

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    Officially residential is GST exempted but e materials n services to construct are not. The 6% GST might cause prices to go up by at least 6% as developers will not absorb e GST. This is like ABSD in Singapore, only worse as suppliers wont raise prices only by 6% n buyers are at e end of e GST chain.

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    Quote Originally Posted by hyenergix View Post
    Officially residential is GST exempted but e materials n services to construct are not. The 6% GST might cause prices to go up by at least 6% as developers will not absorb e GST. This is like ABSD in Singapore, only worse as suppliers wont raise prices only by 6% n buyers are at e end of e GST chain.
    I see, is the overall cost of living that will increase. So will inevitably push up property price too. Thanks!

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    新山瘋狂搶買屋 日薪350請人排隊6天
    即時新聞 2014-04-26 17:39

    (新山訊)新山熱門雙層排屋開賣,由於發展商只推出區區71個單位,有民眾因志在必得,竟不惜以350令吉日薪的酬勞,僱用跑腿到預購處日夜排隊6天,以便搶在房屋開售時,第一時間購得位置合宜的房屋,真可謂購屋也瘋狂。

    雖然發展商一早就把排隊號碼發給這些提早排隊的購屋者或跑腿,但為了公平起見,發展商每天都會安排員工到場點名多次,連半夜也會突擊點名,而凡在員工點名時不在場者,他們之前所領得的號碼都會被作廢。因此,購屋者只好提供躺椅給跑腿,讓跑腿可以每天24小時待在現場排隊,就連晚上也留在現場睡覺。

    隨著我國屋業蓬勃發展,新山屋價也水漲船高,儘管如此,建在熱門地段的房屋仍廣受歡迎,超高的屋價完全未打擊消費者的買氣,而訂於週六開售的新山開屏山莊的雙層排屋正是民眾搶購的熱門房屋之一。

    據瞭解,新山開屏山莊的雙層排屋僅有71個單位,款式分為3種,即兩種面積皆為24呎x75呎的雙層排屋,以及面積為24呎x80呎的屋款,屋價最低從50萬令吉起跳。

    儘管屋價不低,但一群志在必得的民眾卻於週一即安排跑腿到場排隊,有者則安排家人或朋友代勞。排隊搶拿號碼以購得房屋的情況雖非新鮮事,但在屋子開售前6天,就有購屋者到場持續排隊6天的情況卻屬罕見。 (光明日報)

    http://www.guangming.com.my/node/203451?tid=84

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