Accepting pricing realities and 58% will buy within 6 months

Within January, we would have read many 2017 investment outlooks. I was personally involved in one. This one:
Property Outlook 2017 – BLT Perspective

From the forum, I learnt something powerful from fellow panelist, Ms. Prudence Wong. I shared it here:

Ask this first: Who is your target market?

If you have also been attending and reading all these different outlook projections, are there more positive ones or are there more negative ones? Let me share another one below.

PropertyGuru’s Consumer Sentiment Survey which was conducted at the end of 2016 revealed the following:

58 percent of those surveyed INTENDS to buy a property within the next 6 months either for own stay or for investments
(On top of my head, I think this is considered acceptable number. However the next result would tell us why they may fail to proceed)

Main issues stopping people from buying would be ineligibility to qualify for loans and inability to fork out downpayment and other fees.
(Sometimes we should also wonder. If we have a goal to buy a property, should we not start saving feverishly to have the downpayment? Or do we still spend whatever we earn like usual?)

38 percent would be buying from developers while 15 percent would opt for secondary.
(If we need a place to stay fast, I think secondary is a faster choice)

There has been a jump of 10 percent in consumer positivity. In other words, home buyers are accepting the property pricing realities and re-adjust strategies for 2017

59 percent thinks the current property prices remain too high

44 percent is looking at “TIMING” (hmm………………..)

Surveys aside, do remember that as long as continue to monitor the market, we would know if property bubble is building and about to burst. Three key signs here:
Spotting signs of a property bubble, 3 points (Updated)

It’s also good to note that buying an area without any
public transport is no longer a good
 option because there are many new stations today and more upcoming ones. Malls are secondary consideration because there are now so many of them. Not all would survive.. ok? If the survey is the same as what you believe, it’s time to spend less time watching Korean dramas and actually searching, viewing and negotiating for the best property deal. Are you ready? Happy investing.

written on 20 Jan 2017

Next suggested article:
Survey: Property investment still attractive but recovery takes time

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Property Prices – PRIMA should help, IF.

“If a PR1MA house only cost around RM250,000, who would want to buy a house from a private developer who fixes the price between 20% and 40% higher? This is the view of Rahim and Co Chartered Surveyors Sdn Bhd chairman, Tan Sri Abdul Rahim Rahman. Personally, I do not agree totally because I have not really see that many of these PRIMA homes at RM250,000 but I think if PR1MA homes really do flood the market in the near future, his assessment would be quite valid. In fact just like he said, PR1MA home prices acts as a stabilising effect. This is something like forcing the developers to be much more competitive for the similar ranges of properties.

It depends very much on where these properties are located too because if PRIMA is built only in matured areas, I seriously do not think the existing owners there would want to sell any lower than PR1MA’s prices. He also said that “With PR1MA, prices for affordable houses will not go up in a spiral manner in future,”.  Personally the spiral manner in which property prices went up should not repeat itself. I always feel the only reason why 2009 to 2013 was a different period was because that was when the Malaysian property market starts to become more mature. Before that, the prices has always been pretty ‘sleepy’. The current prices meanwhile is already pretty reasonable and if it should go into another spiral, I would choose to step out of the property market. Just look at the prices versus affordability of the typical man on the street. Do you seriously think prices can go up in a spiral again?

Many of my friends remain skeptical of PR1MA and I can understand why. They feel that PR1MA is merely a propaganda as they have yet to see that many units being offered to the market. I think they are partially right. Unless PR1MA units are becoming common, it will always be just a plan. If only the transparency of everything from number of units to number of applicants to numbers of upcoming units can be available every month, that would really help tremendously. Please take the HDB of Singapore as a benchmark. These days, online and technology can help a lot. Anyway, if you should need to refer, this is the PRIMA site.
http://www.pr1ma.my

To those who qualify, I personally think you should register. PR1MA homes are not aimed at flats or low cost, they are aimed at affordability instead.

written on 31 Jan 2015.

Next suggested article:
PR1MA – 90,461 housing units for middle-income Malaysians – HOW?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Primary property market Malaysia is DOWN in H1 2016

Okay, I think if I ask ten different people, they may be able to guess this as well. Market is really slow these days. I have always thought
primary market, especially the affordable ones
 should still be okay but I think I was wrong. Reported in Theedgeproperty, according to the Valuation and Property Services Department director-general Datuk Farzan Abdul Rahman, the primary market property sales is DOWN in H1 2016 versus the same period a year ago. Two major reasons cited were sluggish global economy and poor local market sentiments.

The first issue,
sluggish global economy
 may be here for quite some time yet. Every world body is expecting this lethargic GDP growth to continue. As for poor local market sentiments, I think we can feel it. Especially when we heard of so and so is now a Uber driver. The last conversation I had, someone told me his father-in-law earned over RM3,500 per month as a Uber driver. Quite a
good number for a retiree
 definitely. Some numbers were announced by Datuk Farzan as well. Sales of primary market homes in the RM500,001 to RM1 million range fell to 513 units in H1 2016. This is very far away from the 7,037 units sold in H1 2015. Of course, the number of units launched has also shrunk from 15,687 units in H1 2015 to just 2,597 units in H1 2016.

On an overall basis, total units launched in the property market fell to 10,655 units in H1 2016 compared to 49,280 units in H1 2015. Total units sold for H1 2015 was just 2,732 units compared with 23,909 units in 1H2015. Highest number of units sold, at 724 units was for homes that was priced from RM300,001 to RM400,000. In terms of launches, the highest number or 2,597 units were from the RM500,001 to RM1 million category.
House Price Index

is however still growing at 6.8 percent for Q1 2016 though slower than Q4 2015 at 7.2 percent.

I personally do think many more units are being launched but the price range is moving downwards and is no longer in the RM500,000 – RM1,000,000 category. In fact most developers could feel that if they launch anything too highly priced, it’s quite suicidal today. As for
prices, it’s important to note that these remain average numbers
. Get to know the type of property you like and start monitoring. It’s always a cycle and there’s no such thing as ‘always up’ or ‘always down’ for the property market. On a longer term, it remains positive. Happy holding back or jumping in.

written on 27 July 2016

Next suggested article:
Asia Property Market Sentiment Survey: 2018 peak again

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Unsold primary residential properties? RM8.27 billion worth……(HUGE)

It’s not good news when there are a lot of unsold properties in the market. If we placed a downpayment for a new condominium and found out 9 months later that only 20 percent of the whole project is sold, how would we feel? Worried, right? Well, on a larger scale, it’s not 80 percent unsold lah. However, the total overhang units in value is up by 80 percent. In Q3 2015,it was just RM4.6 billion. It is now RM8.27 billion as at Q3 2016.  Full article in
theedgeproperty
.  In terms of actual number of units of overhang properties, it is up from 9,747 units in Q3 2015 to 14,193 units in Q3 2016. This is up by 46 percent. When we look at the average price based on the total value versus the total number of units, it used to be RM472k on average in Q3 2015 and now, in Q3 2016 it is RM583k.  This meant that the more expensive units are the ones remaining unsold OR the units being launched are all the more expensive ones which does not make sense.

Other things
reported in the article
 include. The highest number of overhang units would be condos and apartments at 1,238 units. I think this is FOR SURE, right. Flats are 283 units, terraced homes at 218 units, cluster homes at 129 units, semi-detached homes at 118 units, detached homes at 68 units and townhouses at 15 units. (Either few townhouses or people love them?)  It was also shared that only properties in the price range of RM200,001 to RM250,000 saw an increase in sales by a huge margin which meant that the demand for these are strong. In fact, within the secondary market, homes below RM300,000 is about 69.6% of the total market. Secondary market properties make up about 82% of the total property market.
 (This is why when we think of buying a home, it need not be from new launches)

PEPS president Foo Gee Jen said that the Malaysian property market is currently stable, with a 5.3% annual price rise in the Malaysian Housing Price Index in 3Q2016 (preliminary figure). He said,  “People are always asking when the market will recover, but in actual fact the property market is actually stable. Of course, it is not like those times when there were double-digit growth but I feel that this is a more sustainable growth. Prices of homes are holding. The growth needs to be in tandem with the growth in salaries of the population as well. If it keeps growing at double digits, how can people afford to buy houses when their salaries do not increase at the same rate?”

Please do not simply buy anything which
 is unaffordable based on our pay
. Banks will not approve our loans anyway but what if they approved? Then, we will be suffering from paying like crazy every month for it. What’s my take for 2017? Same lah, don’t worry too much about buying high-rise. It’s true that the number of these being launched is huge but how many of us can afford landed properties unless we buy much further away. That’s another story altogether actually because it involves lifestyle too. Happy looking at the market. Just remember,
 waiting is a game best played when we own something.

written on 27 Feb 2017

next suggested article:
Think. Why first-time home buyers need HELP

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


When you need to sell, you will sell. Agree?

It’s so hard to ask someone who loves his home and is still staying in it to sell his home. It’s even harder to ask him to sell it for lower than the price he bought. He is happy there and he does NOT care what state of the property market it is today. Well, how about selling your home with a discount of RM2 million from your asking price then? The answer is not a surprising one. It depends on whether you want to sell and the reason you want to sell, right?

Assuming I am about to move overseas, of course I will sell it as soon as I could. I would hate to fly back and sign those documents yeah. Well, if I have a new place to stay, of course I would also sell because I may not want to rent it out and have all those issues an owner will face with some ‘amazing’ tenants. Let’s look at what happened to the house of UK Prime Minister Boris Johnson. He actually sold it for RM2.05 million lower than his original asking price.

Article in dailymail.co.uk
  The house was bought by Mr Johnson together with his then-second wife barrister Marina Wheeler for £2.3 million (RM11.78 million).  He put up the five-storey, Grade II-listed house for sale in May 2019 for £3.75 million (RM19.72 million) and it has been sold to a partner at management consultants McKinsey & Co for £3.35 million. (RM17.15 million).  This is £400,000 (RM2.05 million) below the asking price.  Please do read the article for more details yeah.
Article in dailymail.co.uk

I do not think he is going to be too sad over selling the home lower than his asking price because it is still much higher than the price he paid for. Currently, he stays at the Prime Minister’s residence and
according to this article in thesun.co.uk
, his annual salary as the Prime Minister is £158,000 (RM809,000).  He actually took a huge pay cut to become UK’s Prime Minister. From £750,000 (RM3.84 million) the year before to current £158,000. WOW.

What this tells us is that property investment works even for a Prime Minister, if he bought a good property. Secondly, the house price do not go up simply because it used to belong to the Prime Minister. Earlier
article here on the effects of a Prime Minister on the property market.
Third point which is very important is that if it’s the house is not being occupied and  your job may keep you too busy to handle tenants, the other option is also to sell okay. Assuming he splits the money with his ex-wife, it will still be a cool £1.675 million. If I have RM1 million from selling a home, I will go for a holiday, well, after COVID-19 is no longer a threat. Cheers.

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market. Else,
follow me on Twitter here.

Header image source:  dailymail.co.uk

Next suggested article:
Jobs, Jobs and Jobs. Foundation of property investment

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Prime piece of land (13 acres) sold by BAT to LGB

I love Kelana Jaya within Petaling Jaya. Thus, I love all areas nearby Kelana Jaya as well. It’s jammed, yes but it’s also close to everything a typical family would need. From malls to connectivity and schools, I think it has everything. Yes, it’s nowhere near the exclusivity of Desa Parkcity or Mont Kiara but it’s also much more
affordable in comparison to them.

More choices is always good and the current manufacturing plants within Petaling Jaya may have to slowly move out. It’s no longer a good location PLUS the land they are sitting on today are worth a fortune.

British American Tobacco (BAT) has sold its land (two parcels) and all the buildings in Petaling Jaya to LGB Properties. Total land size is 13 acres (570,000 sq ft) and it comes with a 4-storey office cum warehouses, a 4-storey office, a double storey warehouse with basement, a double office, a single storey factory and two single storey factories with mezzanine floors. Total selling price is RM218 million. The buyer is LGB properties. The land comes with a 99-year lease which will expire in 2060 and 2062, respectively. Meanwhile, part of the land was leased to Tenaga National Berhad (TNB) until 2032. For BAT, it will realise a net gain of RM148.78 million which is good news for the shareholders of the company.

For LGB, I think we would soon see more news about its plans for the development hopefully in the next few months. Nothing has been announced thus far online but based on the size of the land, the most likely development would have to be high-rise development which I am interested in. I do hope there would not be another mall within the development. Take a look at the many malls nearby, another competition would be just suicidal for all. Haha. Anyway, based on the typical land cost versus GDV of 10the potential gross development value should be around RM2 billion. Of course, I do hope it’s higher so that the prices for each unit can be even lower. Happy anticipating.

written on 12 June 2016

Next suggested article:
My MUST have list formally, both old and new

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Primrose @ Saujana KLIA: A home within a neighbourhood with everything you need. (including connectivity to the world… by flight)

[Sponsored Post] Kuala Lumpur International Airport 1 (KLIA1) Kuala Lumpur International Airport 2 (KLIA2) handled 62.3 million passengers in 2019. This meant that on an average basis, it handled 5.19 million passengers per month or 173,055 passengers EVERYDAY!

Image source: malaysiaairports.com.my

Of course, it may take some time to recover back to 2019 level but as someone who has not travelled beyond Malaysia’s borders for over 1 year, I will soon need to do ‘revenge travel’ as soon as the borders are open. In other words, many tens of millions of travellers are also thinking like me!

Malaysia has handled COVID-19 very well and would be one of the few earliest countries which visitors would love to visit post COVID-19 vaccinations. Now let us look at this latest new launch called Primrose and it’s inside an established development, Saujana KLIA.

The entrance arch into Saujana KLIA. (Photo by Glomac)

Primrose @ Saujana KLIA

This is also where Primrose @ Saujana KLIA is situated and enjoying the best of both worlds. It’s within 15 minutes away from KLIA. This means that Primrose is far enough not to be bothered by all the passenger arrivals (no one likes to stay right next to the airport) and yet close enough if one is staying there and needs to travel overseas or even working nearby the KLIA. It’s a short drive away.

Location and Connectivity of Saujana KLIA

Saujana KLIA is connected to an extensive network of highways including the Elite and MEX, PLUS and SKLIA. It is also near to Salak Tinggi Express Rail Link (ERL).

Residents of Saujana KLIA has access to ERL and LRT lines. (Photo by Glomac)

Educational Institutions

Beyond these expressways, it is also near to educational institutions such as Xiamen University (one of China’s top university), Multimedia University (MMU), Lim Kok Wing University of Creative Technology, Brainy Bunch, Tenby International School, elc International School, Tanarata International Private Schools as well as local primary and secondary schools too.

New Connectivity Hub

KLIA in Sepang is also becoming the latest multimodal transportation connectivity hub with a complete and sophisticated integrated air, road and rail network serving as a direct connection point to major regional economies. There is also the new e-fulfiment hub, Cainiao Aeropolis eWTP hub (formerly known as KLIA Aeropolis DFTZ Park) which is part of a joint effort in strengthening the economic recovery in Malaysia.

World Trade and Workforce

Cainiao Aeroplis eWTP will support the increase in trade flow by enabling 72-hour delivery to the rest of the world. With all these developments, the number of workforce will also be increasing in tandem and this is very positive for Saujana KLIA.

Recreational Activities

For some of us who loves to shop, dine and even just a casual stroll there are at least 6 shopping malls within easy driving reach from Saujana KLIA. We have the Mitsui Outlet Park and Alamanda Shopping Mall which are considered popular malls and they are nearby.

Image Source:
https://www.mitsuioutletparkklia.com.my/aboutus/introduction/

Great for nature lover and kids too

Nature lovers will also be spoilt for choice with a host of natural wonders such as Farm In The City, Taman Saujana Hijau, Paya Indah Wetlands and Taman Botani Putrajaya nearby.

Image Source:
https://www.farminthecity.my/an-eden-of-nature-and-animals/

Developer of Primrose @ Saujana KLIA

Saujana KLIA is developed by Glomac, an award-winning developer who has been housing the nation since 1988. Glomac has been building homes in Saujana KLIA since 2016 and is now ready to launch its latest double-storey terrace called Primrose in Saujana KLIA township.

Comfortable size and affordable starting price

These homes has a built up starting from 1,540 sq ft (considered huge when compared to the 1,000 sq ft high-rise which are priced higher nearer to the city centre) The starting price would be an attraction by itself as it starts from RM498,800 upwards. There are already many ready facilities for residents including a children’s playground, jogging track and even a football field too.

Sporting amenities within the Primrose Saujana KLIA township. (Photo by Glomac)

Conclusion

Kuala Lumpur is the capital city of Malaysia and KLIA is that airport connecting Malaysia and the world. Owning a home sweet home with affordability (currently), lots of space (versus any high-rise at the same price point within the city centre), nearby to amenities and conveniences as well being part of an ever growing KLIA (also sometimes known as Aeropolis) meant that the future is a certainty. Perhaps Primrose @ Saujana KLIA can also be your sanctuary too.

Do call them, drop by and get lots of your questions answered.

For more information, please visit
https://www.glomac.com.my/project/primrose/

Contact Details:

Call them at: 03-8705 9888

Email:
centralmarketing@glomac.com.my

Product page :
 https://www.glomac.com.my/project/primrose/

Facebook Page:
https://www.facebook.com/glomacberhad/

— end of post —

Love news like this and more?
Sign up for daily investment news updates.
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article:
Glomac’s High-Rise projects on track despite current challenges

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Must-Know. Top 8 tips to buying a home @ Putrajaya / Cyberjaya. Register to listen and get the slides plus lucky giveaways.

Did you know that KLIA welcomed over 62 million passengers in 2019 alone? In other words, nearly 5.2 million passenger pass through KLIA every month? That’s 172,000 passengers EVERYDAY. In order to serve these passengers, many people work within KLIA and all the areas nearby KLIA too. This is why the vibrancy of KLIA and its vicinity continues to increase. This 18th April, I will be speaking in Saujana KLIA. Topic is “Top 8 Tips to buying a home @ Putrajaya / Cyberjaya.”  Do ask me lots of questions too.

Event details, register and also LUCKY GIVEAWAYS

I will be speaking directly from the Saujana KLIA sales gallery at 18th April 2021. Time is 12 – 1pm.
This is the registration form by Glomac. Just click and register.
  If you like have a copy of the presentation after listening to the talk, please do register for the talk by sending a Whatsapp message with your name and this message:
Primrose Talk
. The mobile number is 011 – 1089 7687. Alternatively,
just click here to drop your email and register.
  By the way, there are also LUCKY GIVEAWAYS too. So, remember to register yeah.

Where will it be LIVE?

This FB Live from Glomac Berhad’s page will also be shared in
kopiandproperty’s FB page too.
Remember yeah, the slides which I share is available to all listeners who registered in advance. Please a Whatsapp message with your name and with this message:
Primrose Talk
. The mobile number is 011 – 1089 7687. Alternatively,
just click here and drop your email to register.
 By the way, there are also LUCKY GIVEAWAYS too. So, remember to register yeah.

Love news like this and more?
Sign up for daily investment news updates.
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article:
Primrose @ Saujana KLIA: A home within a neighbourhood with everything you need. (including connectivity to the world… by flight)

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Print media has high readership and ads, still

I wrote about newspapers just a week ago. Read here:
Newspapers need to embrace online, fast
 Today, an interesting article was published in The Star about the viability and sustainability of newspaper (print media) moving forward. It featured all the heavyweights from the media industry. Let me summarise the long article into a concise one below, with their personal views. My personal comments in brackets.

The title of the article: Print media still commands high readership and ads
(have to agree, right? One black and white page in newspaper is already RM40,000 or even higher. One property advertisement full listing even in the major property portals would cost substantially lesser and for a much longer period too. )

Media Specialists Association (MSA) vice-president Bala Pomaleh said, “Print media can be highly engaging and effective if the ad space is deployed in a more creative and non-traditional manner.”
(For property advertisements, the limitation is always how much more creative can one be with space limitation in the newsprint versus the information which needs to be presented.)

He further added that “We haven’t reached the critical point where all demographics have moved towards digital media as a source of all possible content. The young are using social media in a big way and news portals for things that usually print media give them because they were born in the digital wave. The older generation, in contrast, still prefer turning over the pages.”
(I think it’s even more important to recognise that having huge budgets for print but nearly nothing for online media is going to be a big mistake in the long run. Everyone knows that building a brand name should be done in advance and the online reach is by far much wider today. Imagine if all the biggest developer names of today advertised ONLY in the print, do we think they would be as successful as they are today and able to command a premium for their properties?)

GroupM Malaysia CEO Girish Menon said that print media is still relevant for marketers to target
older audiences
 or for specific interest groups. He said that print media is no longer relevant to run extended campaigns focussed on building reach.However, it remains one of the best ways to launch or provide detailed information of a new product or service.
(For launching, yeah but for detailed information of a new product or service would really depend on what are we talking about. Selling a new shampoo or new 3 in 1 coffee together with a sample of the product may be easier with print media but for expensive services or products, it could be done more comprehensively with online media instead.)

There were also comments about the closure of news portals like KiniBiz and The Nut Graph which Girish said was due to poor marketing and not enough aggressive sales effort from these portals.
(I personally think the niche that these portals and many similar ones operated in were the same and it’s tough when the target market is small and everyone trying to attract the same group of people.)

Girish then explained that these print media has online assets which are extremely valuable but these digital divisions are often overlooked and thus there were no opportunities to work together with their traditional media counterparts.
(This is extremely true. In fact when we look at how some of these print media are ‘selling’ their online as a free / cheap add-on meant that  they are going to suffer in the future as their online remain little or no value to the customers.)

Moving Walls executive director Srikanth Ramachandran says that “The solution is in the convergence of media and technology.”
(His example of  Amazon’s acquisition of Washington Post showed that these days print media companies are becoming smaller compared to many other companies and is often a target of acquisition.)

Well, the industry continues to consolidate. Some online media is becoming larger than their print counterparts and sooner or later, the smaller print media companies may become a subsidiary of their online counterparts. When that happens, I think the convergence or even working hand-in-hand that was mentioned by these media heavyweights may happen easily. Until then, I think it will still be a fight even for the same company between the online and the print departments.

written on 6 Feb 2016

Next suggested article:
Are buyers still browsing newspaper for new projects? My views

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Press Release: PropertyGuru: Youth, First-Time Home Seekers Priorities in Budget 2021

Budget 2021 should focus on job creation and economic drivers, particularly for youth and first-time home seekers, while addressing specific developer concerns such as compliance costs, according to PropertyGuru Malaysia, the nation’s largest property site as recognised by the Malaysia Book of Records.

These demographics have seen surges of home ownership interest following the COVID-19 outbreak. However, despite a bevy of property incentives and deeply favourable lending environment, employment and income loss are hampering them from purchasing a property.

As such, economic drivers to foster job creation and income growth, along with digitalisation and PropTech incentives to enhance awareness of available initiatives and opportunities, are key priorities for the property market as Malaysians recover and rebuild from a third wave of COVID-19 cases nationwide.

Photo by Belle Co on
Pexels.com

Priorities in place for fiscal policy

“Property transaction volumes and values in Malaysia showcased V-shaped recovery curves prior to the recent CMCO. Along with marginal growth in the Malaysia House Price Index and PropertyGuru Malaysia Property Market Index, this underscores the resilience of the property market post-pandemic,” says Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.

“In short, the current incentives for property, as well as historically low interest rates and a wide range of purchaser and seller incentives, have been sufficient to promote market recovery for property to date. As such, while there remain numerous developer and industry asks in terms of Budget provisions, the emphasis should be on economic recovery to ease the plight of the rakyat.”

Most prominent among industry wishlists is the expansion of Home Ownership Campaign (HOC) incentives, such as stamp duty and instrument of transfer exemptions, to the secondary market. There have also been calls to extend the HOC beyond its applicability period of up to 31 May 2021.

In terms of developer asks, property players have highlighted the possibility of extending maximum loan tenures and reviewing eligibility criteria for home loan applicants. The reduction of compliance costs surrounding development (ie related infrastructure costs) and revision of foreign ownership programmes and thresholds have been cited as desirable as well.

“When it comes to reviewing loan tenures and eligibility criteria, financial institutions naturally have their own priorities in terms of risk management and minimising non-performing loans. However, developer concerns regarding compliance costs, if addressed, would promote ease of doing business. Meanwhile, a review of foreign ownership guidelines may address overhang concerns to some extent, but is unlikely to be popular with Malaysian home seekers,” says Sheldon.

Focus on economic drivers and digital incentives

Financial aid initiatives to assist Malaysians during the COVID-19 outbreak have proven popular and timely, with 39% and 11% of PropertyGuru Malaysia Consumer Sentiment Study H2 2020 participants citing satisfaction with Bank Negara Malaysia’s financing moratorium and Bantuan Prihatin Nasional (BPN) respectively.

Moving forward, further emphasis should be placed on long-term job creation measures and economic drivers, particularly for younger demographics and the B40 income group. According to the same study, home seekers aged 22-29 years old and renters are most likely to buy property post-MCO, with 47% and 51% respectively sharing that the outbreak would not delay their potential purchases.

“Meanwhile, a continued focus on digital incentives, such as grant funds for pilot projects on digital applications, particularly for PropTech players, would help foster innovation and uptake in the industry. This is particularly important in enhancing awareness of current initiatives, both in terms of property and other areas as well, such as reskilling opportunities,” says Sheldon.

“As the region’s leading and largest property site, PropertyGuru has spearheaded numerous PropTech initiatives, including
PropertyGuru Loan Pre-Approval
,
PropertyGuru FastKey
,
PropertyGuru Lens
 and more, such as a one-stop hub consolidating over 100 HOC projects for convenient home seeker review.”

Set to be tabled on 6 November, Budget 2021 will outline the government’s estimated revenues and proposed spending for the coming year, while forecasting economic conditions and fiscal policy moving forward.

— End of Press Release —

Love to be updated of investment news?
Sign up for KopiWeekly. (once per week for property, finance, investment news and more)

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Next suggested article:
PropertyGuru launches one-stop hub for HOC projects

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


PRISM 2015: Malaysia’s Largest Property Investment Summit

PRISM
 is Malaysia’s largest property investment summit and expo, brought to you by Property Insight. This annual event has been the most exciting and anticipated event for the property industry since 2013. It’s a dynamic platform connecting property experts, developers, investors and homebuyers to network, learn and keep abreast of the latest property trends and deals. Always in November, its highly received by property enthusiasts and stakeholders to network and align strategies to the newly announced Budget in October annually.

Programme Highlights

01

KEYNOTE TOPICS BY STEVE MCKNIGHT

How I Got To Own 800 Properties

Identifying & Analysing A Property Deal

02

SPEAKERS’ TOPICS

Investing Post-Budget 2016

Amendments to the Housing Development Act, Regulations, Strata Titles Act & New Strata

Management Act

The Mindset of A Millionaire Property Investor

7 Pitfalls of Property Investment

Impact of GST on Property Investment

Crowdfunding in Property Investment

03

PANEL DISCUSSIONS

Budget 2016 : Impact On Property Sector

Getting The Banks To Say YES To Your Housing Loan

Identifying Property Hotspots

How To Be A Smart Landlord

Multi-Millionaire Roundtable

WHAT CAN YOU EXPECT ?

PRICELESS EXPERIENCES

REALISE YOUR DEVELOPMENTS’ HIDDEN POTENTIAL

IDENTIFY YOUR POTENTIAL MARKET

SEIZE SELLING OPPORTUNITIES

MARKET SMART, SELL WELL

2
DAYS SUMMIT

32
INDUSTRY EXPERTS

WITH
>1,600 PROPERTIES
ACQUIRED

ACCUMULATIVE OF
438 YEARS
OF
EXPERIENCES

3,500
SEMINAR PARTICIPANTS

…TO ALIGN PROPERTY INVESTMENT STRATEGIES TO BUDGET 2016

Go on,
register and attend
. Just go, learn and network with like minded individuals. When we really want to do well in property investment, it is always good to have different views from others who also wish to do well. It may not be the best to ask for advice from people who has never bought anything and kept telling you about the slow market currently and during boom times would tell you that the market is about to crash. More details, click here:
http://prism.my/v2/

See you there. I will be there as well as one of the speakers.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Demand so high? Private jet bookings full to the brim.

I have given up flying for the next 12 months. I do think I could drive between states within 2021 but flying, I think it will be tough. With the current situation, I think the only way people could travel is when it’s a real business need (to earn lots of money) or if these people could afford the price of renting a private jet. Well, demand for flights remain very strong.

Speaking of private jet rental business, it does seem that the pandemic has actually benefited them. This was the conclusion by one operator. “Summer is looking extremely busy for the fleet and we expect to operate at full capacity.” Read the article below to get the full idea of what is really happening in the world today with regards to the aviation industry.

Article in nst.com.my
  Due to the Covid-19 pandemic, the commercial aviation industry has grounded of thousands of airplanes worldwide since March 2020. This does not apply to private jets. VistaJet founder and chairman Thomas Flohr said, “The pandemic has demonstrated the clear demand for business aviation as a safer and more reliable alternative to commercial flying.”

VistaJet is the world’s first and only global aviation business company founded by Flohr in 2004. He said that based on the Future of Business Travel report, the two top priorities for business travel include visiting partners and vendors, attending industry events as well as managing current business relationships and building new ones.

Flohr said, “VistaJet owns all of its aircraft and operates on a floating fleet. So, the aircraft go to wherever the demand is. Summer is looking extremely busy for the fleet and we expect to operate at full capacity.”
Article in nst.com.my

This is why the economy is still having positive growth

Many times, we think every industry is facing headwinds. Truth is, with threats comes opportunities.  When businesses are able to pivot, they are able to survive. With most of their competitions closing down, after the pandemic they will enjoy extraordinary profits for a while when demand returns and supply is unable to restart.

Another example? We see some industries retrenching people. However, when we look at industries related to online, we need to realise that jobs are aplenty and continue to grow very strongly too. The only issue? The lack of talents with relevant experience and skills. Thus, the ones who could adapt and quickly move into new roles, they will have a bright future. This is the world we live in today.

Happy understanding and oh yeah, there’s no need to try and fly via private jets since it seems that the bookings are already full to the brim.

Love news like this and more?
Sign up for daily investment news updates.
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article:

Opportunities in property investment does not come only during crisis

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Undervalued when listed? Some cases.

One major reason why companies love to get listed is to have access to funds from the market. In fact, majority of all the recent billionaires were all due to their companies getting listed. Think Alibaba, think Facebook. The owners are now way richer than majority of all those who built their wealth over a much longer period of time. Agree? If so, why then do companies wanting to get themselves privatised; delisted? Especially these days, one major theme would be the privatisation of listed developers.

IJM Land would be delisted from Bursa and the deal is expected to be concluded in early April. Once it is privatised, it will no longer belong partially  to the public but would be fully owned by IJM Corporation Berhad. If you still wish to take part in IJM Land’s activities, just buy IJM Corporation Berhad’s share. Many analysts are positive with this deal and expects IJM Land to be much stronger because it would then have a much larger balance sheet and scale when it needed to undertake even larger projects.

One of Penang’s most well known developer, Hunza Properties would also be privatised soon if its major shareholders are successful in buying up the remaining shares from the public. Currently, the public owns about 41% of Hunza Properties. The offer is of course at a premium of nearly 30% to Hunza’s market price of RM1.93 over a six-month period. It’s share price is currently trading at RM2.10  It’s not amazingly attractive but truth is, when we look at how the share price has been moving, it is not really going anywhere.

The main reasons for these two delisting as we can see is very clear for the major shareholders. They do not need the cash anymore and without the company being listed, they can run the company in a manner they want instead of having to always be under public scrutiny. Besides, if they are cash rich and needs a place to invest, the best place might be a company they know best. In this case, it’s the developer company they partially own. For the public, I think they can just accept the slight premium being offered and use the money to buy other stocks. If they want, there are still many other property developer counters for them to choose from.

I do not own any units of Hunza or IJM Land but yes, recently I bought two developer stocks just for fun. Fun meant just 2,000 units. If the stock price goes up, I get a good dinner and a short break for my family (Cameron or Genting). If down, just hold for dividends then. Thus, do not be too surprised if developers who are doing quite well suddenly announce that their major shareholders are taking them private. This may even happen if the stock is totally undervalued and the major shareholder is unhappy with this.

written on 22 Mar 2015

Next suggested article:
IJM Land and recurring income strategy

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Probably the biggest LAKSA site in Malaysia? Orders.my

Do you know which is the biggest LAKSA site in Malaysia?I love laksa. It could be Penang’s Asam Laksa with that tangy soup, it could be Laksa Lemak from Kelantan, curry laksa which is common here in Klang valley or even Sarawak laksa which is not like our usual laksa but it’s so tasty!

Do you love laksa like me? Then, perhaps this is one site you should go and eat Laksa everyday for the next 30 days. Haha. I am not joking yeah. The site to order your Laksa is
orders.my
 Yes, there are other sites beyond just the two famous Gxxx and Fxxxxxxxx sites. 😛

Go to the site, search ‘laksa’ and voila… 37 vendors with their version of laksa. Like I said, you can eat laksa everyday for the next 37 days…

By the way, I do not receive a single sen from every order you make. These vendors will make every sen you pay because orders.my does not charge them a single sen for commission too. Perhaps this is why they now have 1,200 vendors on the site and according to the founder, James Tan they are aiming to hit 3,000 vendors by the end of 2020. A very bold target indeed but let’s just keep helping these small vendors who just need a stepping stone into something bigger in future; their business.

It’s NOT just laksa lah. You can type other food. You could buy petfood, you could buy fruits and vegetables and more yeah. Happy browsing and supporting and on behalf of all these people looking to earn a living during this tough situation, thank you!

Love to be updated on all investment news?
Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Next suggested article:
Record property transactions after lockdown?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Home improvements? Here’s one good contractor in Penang.

Home Improvements? Electrical stuffs? Piping stuffs?

Specifically for Penang, here’s my recommendation. I have personally used his services a couple of times and in brief, he’s direct, honest and professional. Direct is important because he will tell you all his charges well in advance and you make your decision before engaging him. Honest is super important because what needs to be done must be done and what could be done cheaper, he will tell you the options to do so. However, if the handyman is very direct and honest but not professional, it is still not okay to engage him because we want someone who could do a great job. Not someone who could charge us lower. Remember yeah, maintenance should be done properly for a long term peace of mind.

This is what he says: “Home Improvement from RM30 per job.  An easy task that you need a helping hand with. Labor and hand tools only, material(s) not included. Owners can buy their own items if they wish to. Additional RM1 per kilometre outside Paya Terubong based on google maps’s shortest route. So, for people inside Paya Terubong, it’s no extra mileage charge.”

Happy engaging him. Just WhatsApp him at 012-7772756.  If the job is beyond what he could do, he will connect you to more of his industry friends. No extra discounts even if you tell him you saw this in kopiandproperty.com  🙂

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Profit After Tax and Minority Interest is up 16.2% for Sunway Berhad

Press Release by Sunway Berhad:
SUNWAY BERHAD’S PATMI UP BY 16.2% OPERATIONALLY, DECLARES HIGHER INTERIM DIVIDEND OF 3.5 SEN

Higher revenue year-on-year due to higher contributions from the construction and trading and manufacturing segments

Strong construction outstanding order book of RM5.8 billion and property unbilled sales of RM1.5 billion as at 30 June 2018

Sunway Velocity TWO to be launched in 2H 2018; Property development segment on track to exceed sales target of RM1.3 billion

Declares first interim dividend of 3.5 sen per share

Sunway City, Aug 21 ~
Sunway Berhad today announced its second quarter financial results for the period ended 30 June 2018. The Group recorded revenue of RM1,287.1 million and profit after tax and minority interest (“PATMI”) of RM199.4 million for the current quarter ended 30 June 2018 compared to revenue of RM1,240.5 million and PATMI of RM196.1 million in the corresponding quarter of the previous financial year. The increase in revenue of 3.8% in the current quarter was primarily due to higher contributions from the construction and trading and manufacturing segments.

PATMI was marginally higher by 1.7%, despite the adoption of MFRS 15. With the adoption of MFRS 15, recognition of progressive profits of RM28.3 million from one of the Group’s Singapore property development projects, which could have been recognised in the current quarter under the progressive revenue recognition treatment, has to be deferred until its completion. Excluding the effects of the adoption of MFRS 15 in the current quarter, the Group’s PATMI would have been up by 16.2% from the previous year’s corresponding quarter.

Profit before tax of RM242.2 million for the current quarter ended 30 June 2018 was lower compared to profit before tax of RM270.2 million in the corresponding quarter of the previous financial year, mainly due to the adoption of MFRS 15, as mentioned above. The Group PATMI was higher, however, despite the lower profit before tax recorded, due to the lower share of minority interest profit for some local property development projects in the current quarter compared to the previous corresponding quarter.

Sunway declared a first interim cash dividend of 3.5 sen per share, which is higher than the first interim dividend of 3 sen declared last year.

“We look forward to continue the progress we have made in the first half of this year and further drive our performance for the subsequent quarters. Barring any unforeseen circumstances, we are confident of delivering satisfactory performance in the second half,” said Chong Chang Choong, Chief Financial Officer, Sunway Berhad.

GROUP TO LAUNCH SUNWAY VELOCITY TWO IN 2H 2018; ON TRACK TO EXCEED PROPERTY SALES TARGET OF RM1.3 BILLION

The property development segment reported revenue of RM88.7 million and profit before tax of RM46.4 million in the current quarter compared to revenue of RM270.7 million and profit before tax of RM74.9 million in the corresponding quarter of the previous financial year, representing a decrease in revenue of 67.2% and profit before tax of 38.0%.

Performance in the current quarter was lower due to lower progress billings from local development projects. The performance in the corresponding quarter of the previous financial year was also boosted by the completion and handover of a local development project during the quarter. The adoption of MFRS 15 on one of the Group’s Singapore property development projects also contributed to the lower performance.

Sarena Cheah, Managing Director of Sunway’s property development division remarked, “We are on track to exceed this year’s sales target of RM1.3 billion, as property sales have already hit the mark as at August 2018, with the exciting launch of Sunway Velocity TWO expected in 2H 2018.”

Located 3.8 km to KL City Centre, with direct links to 3 MRT and 2 LRT stations, Sunway Velocity TWO elevates city living to a whole new vibrant level. This latest project will ride on the success of the fully integrated development of Sunway Velocity, creating a harmonious blend between living, entertainment and working, all in one place.

The Group’s recent launches of Sunway GEOLake in Sunway City and Sunway Citrine Lakehomes Phase 2 in Sunway Iskandar have been met with positive responses, with encouraging booking rates of 60% and 70% respectively. On the international front, recent launches have also been very well-received, with Rivercove Residences in Singapore achieving a take-up rate of 99%, and Sunway Gardens Phase 2 in Tianjin achieving 60% bookings within a month since its launch in July 2018.

Property unbilled sales stands at RM1.5 billion as at 30 June 2018, providing earnings visibility for the segment.

PROPERTY INVESTMENT AND CONSTRUCTION SEGMENT RECORDED HIGHER REVENUE AND PROFIT BEFORE TAX IN Q2

The property investment segment reported revenue of RM216.7 million and profit before tax of RM102.5 million in the current quarter compared to revenue of RM207.4 million and profit before tax of RM93.4 million in the corresponding quarter of the previous financial year, representing an increase in revenue of 4.5% and profit before tax of 9.8%.

The higher revenue in the current quarter was mainly due to higher occupancy at the Group’s portfolio of investment properties, and additional contribution from new properties such as Sunway Velocity Hotel and Sunway Geo in Sunway South Quay. Profit before tax was higher mainly due to better performance registered by Sunway Velocity Mall compared to the initial period and share of higher fair value gains from revaluation of Sunway REIT properties in the current quarter.

The construction segment recorded revenue of RM449.7 million and profit before tax of RM49.6 million in the current quarter compared to revenue of RM310.9 million and profit before tax of RM46.2 million in the corresponding quarter of the previous financial year, representing an increase in revenue of 44.6% and profit before tax of 7.2%.

Revenue in the current quarter was higher mainly due to higher progress billings from local construction projects and lower intra-group eliminations. The construction outstanding order book stands at RM5.8 billion, with an order book replenishment of RM854 million achieved to-date.

— end of press release —

Next suggested article:
Sunway Geolake: 65% booking and 80% signing S&P

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Profit Up due to land sale, be reminded that it’s just for ONCE

These days, in some of the annual reports listed companies you read online, some claimed that they have huge profits increase. Some are even a few hundred percent increase compared to last financial year. Some said, they are unlocking value by selling the land that their factory is on. Some are plantation companies converting their lands into development projects. Most of the time, this will help their share prices to inch upwards. Let me remind everyone when they buy because of these announcements.

Profits Up.  If it is by land sale, do note that this is nothing more than once and once the land is sold, profits definitely will go up but do look for their announcement of what they would be doing with the profits. Most of the time, I have not seen much concrete plans being announced at the same time. Most likely, there are none yet. They are selling because they received a very good offer based on book value and by selling it, they would be able to shout to the world that their profits are up. Nothing bad or good but idle money does not help the company in its growth.

Non-Core Business.  Some would announce that they are going to go into property development as they have a piece of valuable land somewhere in a popular area. From the meetings with many developers in my previous company, I can safely tell you that even when they are developers, some of them have no idea about what they are talking about. Some said their prices are very attractive and refused to do much marketing and relied on their so called ‘networks’. Once the project passes 9 months and sales did not even hit 50%, they start to engage every agent they can find to sell for them. Fortunately, this is not majority but more of the newer developers who used to build smaller projects or has never built before but saw so many has done it, why not them?

Personally I always believe a company should concentrate on what it does best. The reason is because if every developer is really good, then they would not have read the market wrongly and having to cut their sales targets or even giving huge discounts or even engaging every agent under the sky to sell the projects for them. If those who are fully into property development may make mistakes, then the companies which were never property developers before would face even more higher potential for a mistake. Unless of course we come to stories like Eco World where a huge team of established people from SP Setia joined and suddenly Eco World is top 3 in terms of GDV in Malaysia currently.

written on 31 Aug 2014

Next suggested article:
GST within few months, commercial properties and why GST

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Up 153%, even with the slowdown. SP Setia.

Yes, all of us have heard about the slowdown nearly everyday. No one really understood the term slowdown meant here is still growth. Many thought it’s already recession in Malaysia. Well, one company has showed resilience thus far. SP Setia Bhd’s earnings surged 153% to RM267.78million for Q3 2015 versus a year ago due to its Australian venture. Revenue is up 81.2% to RM1.634 Billion from RM902.66 million. A simple calculation showed a net margin of 16 percent. Indeed still a very healthy number! SP Setia said that the achievement was due to increased revenue and profit recognition from its strong sales pipeline and the handover of second and final residential tower of Fulton Lane in Australia.

SP Setia has unfilled sales of RM9.9 billion which meant that it will continue to perform well in the remaining financial year. According to SP Setia acting president & CEO Datuk Khor Chap Jen, it’s venture into the Australian market has been good with the current challenging property market. It will continue to seek new ventures in Australia as it continues its overseas portfolios. The next project to be handed over is also overseas, in Singapore. The project is 18 Woodsville and it has obtained the temporary occupation permit (TOP) two months ahead of schedule. Main challenge for 2015 is similar to that echoed by many other developers thus far, the volatility of the market, cooling measures imposed by the government and the tougher loan approval measures from the banks.

Slowdown meant whatever was planned earlier would determine if a developer continues to prosper. SP Setia, despite losing many huge names still have many ongoing projects which should sustain it continuously. I seriously believe however that moving forward, a more ‘affordable’ stance would be necessary even if it continues to have overseas exposure which can help in the current slowdown with the domestic property market. Already some have reduced their yearly targets even if the total sales remain huge and still continuing. Read here:
Mah Sing scaling back, revising target downwards.

Let’s hope more good results are coming and continuous. Happy scouting for good deals.

written on 10 Sept 2015

Next suggested article:
SP Setia wins Malaysian developer of the year: SEAPA 2015

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Property 2015: Gloom, Boom and Doom

This article first appeared in the January 2015 edition of Property Hunter magazine.

Many are still buying. Even more are waiting by the side. Real estate agents are complaining that servicing a buying customer needs lots of patience these days. Even my lawyer friend said that the number of transactions have really slowed down for 2014 compared to previous years. She was still very busy but I think she wanted to say that she can be busier if need be. Yes, we are talking about the property market of Malaysia. On one hand, there are groups urging the government to help them buy their first property which the government is trying through incentives, PR1MA etc. However, in certain hotspots in KL / Selangor, the prices are very strong and there’s no sign of it declining even with the current slowdown. Of course for the newer property markets like Iskandar, it has shown a downtrend but my personal thinking is that if Singapore’s property market is on a downtrend, it’s hard for Iskandar to maintain its uptrend momentum. Country basis, Singapore is the largest investor within Iskandar today. Thus, not entirely due to just the demand and supply equation which is never applicable for newer areas. For new areas, it’s all about expectations. If the expectations are met, the prices and the demand go up as well as the other way around. The beginning was indeed tough for Iskandar and then it got easier and suddenly it got hotter with the entries of the China based developers and these days, it has the ‘oversupply’ cloud hanging above it.

Are gloomier days coming? Most of the time, the economic growth underpins the property market. Good growth means more income and this translates into higher property transactions. Well, Malaysian economy will still be growing but according to one latest analysis, this growth is on a downtrend. Projection is by UBS Investment Bank. It’s Senior ASEAN and India economist Edward Teather said that the causes include a slowing domestic and investment growth due to the current fiscal restraint, prudent monetary policy and a maturing credit cycle. For 2014, Malaysia would grow by 5.5 percent, dropping to just 5 percent in 2015 and a further drop to 4.7% in 2016. Not everything is negative though, fortunately, the fiscal deficit is expected to decline to just 3.5% of GDP in 2014 and by 2016, dropping to just 2.7%. This meant that the route towards a balanced budget is on track. Consumer Price Index would however grow to 4.2 per cent before dropping back to 2.5% in mid 2016. In fact the policy rates are expected to be maintained from now till 2016. With the current volatile economic environment, I think UBS may be right. Bank Negara may have to continue the current accommodative stance until the growth is quite certain.

Booming is not likely but I think consolidation has started. I hope you noticed the last few sentences above? Actually, the overall prediction by UBS points to a CONTINUOUS economic growth. For the property market to start moving again and the prices to be moderate instead of going down, the economic growth must be continuous. The economy must be resilient enough and the central bank must continue to play a very prominent role, especially as Malaysia is a small country. Any bad news around the world would affect us easily. I seriously think the days of sudden property prices growth of the past few years have stopped and I hope it will be maintained from now onwards. It has always been said that comparatively, Malaysian property prices are cheap versus neighbouring countries and I do agree but within our own country, I have not seen sufficient evidence that our overall incomes are growing in tandem. In other words, should the prices be growing indiscriminately due to a minority of greedy speculators, we are looking at a bursting property bubble soon. Affordability is on a severe loading test today. Fortunately, these days, many huge developer names are saying that their focus is now on affordability. Remember the days when over 500 units of high-rise project are considered high density? Today, over one thousand unit per project is not considered that abnormal anymore. With huge number of units being offered, prices should moderate moving forward and the rises should be capped.

Since the Malaysian property market is now focusing on affordability instead of luxury or for the greedy, would it be safe then? This depends on what would the effects be when the ‘Doom’ predictions come true from outside of Malaysia. IMD Business School’s Professor, Arturo Bris has predicted a crisis by April 2015. He gave many reasons for his predictions. The Jerome Levy Forecasting Center said that its half dozen analysts have attached a 65% possibility of a worldwide recession by end of 2015. David Cameron, Prime Minister of the 6th largest economy in the world tells the world that the next crisis will be coming soon. The ‘soon’ would be 2015. Meanwhile, using the stock market as a benchmark, Jeremy Grantham, chief investment strategist at Boston-based money-management firm GMO said that the stock bubble will burst when the S&P 500-stock index reaches 2250. Please google for the latest number. As of 15 Dec, it’s only slightly above 2,000 points. This meant that bubble is safe unless the index rises another 10% or more. All these predictions are from prominent personalities who have access to far more data than many of us would. Thus, their research and analysis would definitely carry much more weight than majority of what your friend is saying. Does it mean that ‘doom’ is indeed the flavour of the day in 2015?

Tell me, if these predictions all become true, what would happen to the property market? I cannot answer what you should do but this is what I am doing. Fixed deposits. I did not increase my fixed deposits. I think I have enough there already. Please do note that it is a must to have sufficient fixed deposits to last you 6 – 12 months. Properties? For 2014, I have decided that unless the new property is way too attractively priced, I would only be buying secondary properties and the focus is on easy to rent out type of properties. At least even if rentals fall, I should still be able to afford the mortgage for some time. I have also sold two of my properties which have given me gains and both have passed the RPGT periods. I am not a speculator you can see. Stock market? I have bought more units of a few defensive stocks. No idea if these would be affected but I prefer to be cautiously optimistic. Unit Trusts? No changes. I am still buying on a monthly basis. Bad times do not last forever and it is what you do during bad times that you determine if your good times are coming after the bad times. Whether it’s gloom, boom or doom, make the best of it. The worst action one can ever do would be, ‘oh dear, the bad times are coming, I think I better not do anything now’. Happy preparing!

written on 10th December 2014

Next suggested article:
Klang Valley – Retail Space Over Supply

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Investors coming back into the market, improving till 2020.

When we want to know the state of the property market, we could ask our friendly neighbourhood real estate negotiator (REN) friend. Seriously lah. The RENs are usually specialists in a certain area and they are usually friendly. 😛  We could also ask the Malaysian Institute of Estate Agents (MIEA) president Eric Lim Chin Heng.
Please refer full article in NST here.

Eric shared that the Malaysian property market is expected to improve and this will continue until 2020. This is because the property market may have already hit the bottom in 2017 when transaction volumes hit 311,824. His prediction is based on the market’s “confidence-gaining growth” as well as the fundamentals improving under the new government. Last week he said this in a statement, “Real estate investors, who have been playing an important part in the property market’s growth, have been on the sidelines for many years and are looking forward to coming back to the market.”

I think what he said may be true because these days, I am receiving more questions from my friends on some properties they were eyeing. This includes even Malaysians working overseas,in Singapore for example. For the longest of times, everyone were not thinking about property because of the many uncertainties. Remember that news about the state of the economy much earlier? That one which said that Malaysia will go bankrupt in the near future? I went into an argument with a Whatsapp group of my fellow scouts just to reiterate that Malaysia is NOT in trouble and if he thinks it is, it is best he liquidates all his assets and quickly buy into something much safer. Perhaps even in a neighbouring country or that advanced property market country favoured by many. Anyway, we remain friends and nowadays, that group is full of positive news about Malaysia. Yeah, times have changed. New Malaysia now.

Moving on with the article, Eric said that MIEA believes that the implementation of new policies by the government will boost the property market. Property consultancy firm Knight Frank Malaysia meanwhile shared in a statement last month the property market experienced a positive recovery during the first half of this year following the strong growth momentum after the 14th General Election. Here’s that article:
Slightly up. Recovery in property market Malaysia?

Briefly, Knight Frank shared that market sentiment improved during the first half and Kuala Lumpur remained one of the well-liked destinations for property buyers and investors. Knight Frank Malaysia associate director of residential sales and leasing, Kelvin Yip shared, “During the first half, potential buyers and investors switched from a ‘wait-and-see’ approach and are now genuinely seeking good bargains in the market. This trend reduced the chances of a sharp correction in the residential property market as we expect stronger demand to continue and the over supply situation to be less severe.”
Please refer full article in NST here.
  Happy believing.

written on 21 Aug 2018

Next suggested article:
Positive news for Malaysian economy. Share lah

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Buying a property? Needs and Opportunity considerations.

This article was first published in Property Queen magazine Issue 02 2018

Buying our first property is usually quite scary.

Not many people have bought a RM500,000 car before and assuming they bought a Toyota Vios, that is still just RM70,000. A home meanwhile, even the affordable ones would usually be 5 times the Vios; RM350,000 or higher. What if after we buy, the property market collapses and we lose everything we have? What if we lose out job and could no longer afford the mortgage payments? By the way, the ‘What Ifs’ have no end. It will just continue forever. However, for those who believe a property investment is a great investment, it is time to read on. I represent a working professional just like majority of Malaysians and I do not have any course / workshop to sell you. 😉

Buy first, upgrade later.

There is no need to wait for the perfect property. The lowest price and the best location, biggest size and top notch facilities. Chances are it will never happen. I bought my first property in Penang when I was 26 years old. It was from the secondary market as I needed a property as soon as possible. Without a property, my father-in-law was not too happy to let her daughter get married to me. It has a gym with some rusted equipments and a huge pool which is a plus. The size was just 730sq ft. It was nowhere near a prime area. Everyone I met would then ask me why not buy some other area instead? I stayed there, happily for 4 years and on my 3rd year staying there, I upgraded to a bigger place, a condo with full facilities. My first apartment was then rented out and my property investment journey started.

Risky to buy now?

Will property prices be falling 40 percent next year? In numbers, this would be a RM500,000 property falling down to RM300,000. Honestly, when we refer to all the more advanced property markets of the world, this kind of fall in property prices would mean that the country is in some sort of a crisis. Else, we can google for property price trends for all the typical countries and it is very clear that over a longer period of time, the prices continue to inch upwards. Assuming the country really spins into such a crisis, I think it is best we do our best to keep our job instead of thinking about a RM300,000 property since many Malaysians are going to lose their jobs during a crisis. So, if you ask me, I do not foresee a crisis happening anytime soon.

Waiting for prices to fall?

There are people who believe that the cooling measures are meant to reduce the house prices. Frankly, cooling measures are not to push down prices but to make sure prices do not keep going up too fast. Secondly, for those popular areas, the prices could not fall because the demand (people who want to buy) would forever be far higher than the supply (owners willing to sell). Ask ourselves this question. Do banks love it when the property prices fall? Do developers love property prices to fall? The buyers may love property prices to fall but as soon as they buy, they would become owners…. and owners do not like prices to fall.

Read more to gain a better understanding of the property market. View more to understand the opportunities available. Actually, the owners are more open to negotiations today, unlike a few years ago when the owners would refuse to budge when it comes to price negotiations. Discuss more with friends who own properties to know what are the advantages and disadvantages of their area. We do not need to only focus on those few areas. Opportunities usually exist only in areas which others have not seen, view and buy yet.

Last but not least, I believe we should take actions based on what we believe in. If we do nothing, then we would get nothing. If we want to believe the crisis would come soon, then make sure we work hard so that the company would keep us and fire others. At that time, we would be confident enough to buy that property at the price that we have been waiting for. Your actions determine your success. Just remember to guide your actions objectively.
Buying the wrong property, irregardless of good times or bad times is still a disaster.

written for Property Queen, Jan 2018.

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market.

Next suggested article:
Sometimes, secondary property is a better choice

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Properties in 2015? Tough times.

The Real Estate and Housing Developers Association (REHDA) has a few negative news for the market for 2015. It said that 2015 is going to be a tough time ahead for their members because of the rising costs of doing business, tight monetary policy and also the new GST. I think the rising costs of doing business encompasses everything including the compliance costs, the material costs, the labour costs etc. As we noted, there are still shortages of construction workers in the industry. The compliance costs most of the time would be the ones caused by the state governments. True enough, REHDA’s president Datuk Seri Iskandar Mansor said that depending on states, the premium charges are contributing tremendously to the overall cost of doing business. Thus, this now varies between three to eighteen percent. I seriously wonder which state is he talking about. 😛 GST is nothing more than a negative sentiment caused by uncertainty. As soon as everyone understands that the uncertainty they are thinking about is actually a certainty, this would no longer figure in their decision of whether to buy or not to buy. The question is when, right? Let’s assume this would take six months.

REHDA did suggest something beneficial for the first time property buyers. He said that GST should be exempted from properties which are priced below RM500,000, specifically for first-time buyers. This would help them to get a roof over their head. In fact I think this may be faster than all the PRIMA or even other states’ affordable housing plans. I know of a few states which has spoken about this affordable housing for the longest of times and yet until today, it is still just words that it would be ready in the near future. For these first-time home buyers, I think this request is valid and should be approved. Whether or not it can help a lot is another matter because if I am first-time home buyer, I should also consider the secondary properties too and not just the primary ones. After all, there are still attractive properties amidst the current market. Prices for the secondary market has not climbed a lot when compared to the primary ones.

Personally, I think demand is still strong, just that for now it is subdued. While pricing is one issue, I think the main issue is a combination of pricing as well as negative sentiment more than anything else. Just a few year ago, everyone was buying and queuing for new properties and then the prices just shot up through the roof. Suddenly, the cooling measures came because the prices were crazy and now, many of the buyers are hoping that the measures would push down prices. Seriously, I do not think the cooling measures would push down prices. Perhaps it has helped moderated the price increase. Perhaps it has help to pressure some developers to price their properties lower so that they can sell faster. However, price decrease is not going to be a by-product of the cooling measures. Prices would only come down a bit more if the sellers can hold on longer and the buyers continue to rent before they buy. Prices would move downwards more if there is a world financial crisis. Well, if there is another crisis, many of the current buyers who are waiting would continue waiting. During normal times, you dare not buy, do you think you would dare to buy during bad times? Haha.

written on 1 Jan 2015

Next suggested article:
Come on, give first time home buyers a break says REHDA Penang.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Properties: The ‘yesterday’, today and in future.

Many friends have remarked that it’s impossible
 to buy a landed property these days.
 I think I have to agree because they only want to buy at certain areas. So the advice for them? ‘Earn MORE.’ I still remember when my parents bought our Ipoh semi-detached home in the 90s, it was just RM85,000.  Today that same property is RM540,000 or higher. My brother just bought a unit just two units away. My parents are still staying there and I would most probably be staying there in the future as well or my brother’s unit. Haha. I will pay them rental lah.  However, when we really calculate over the period of years versus the actual price appreciation, the gain in percentage is really not that high. This is still Ipoh after all. Then again, when we retire and we have such a home and we sell it, the money is enough to last us for a very long time. RM540,000 / 12 months / 20 years = RM2,083 per month. Not too bad lah. Current situation?
Malaysia: 42 percent senior citizens have zero savings

Now, imagine if my parents did not buy that property over 20 years ago. Imagine if they were to save and wait for the best opportunity to buy. There’s little possibility that they would ever own that home. Remember, inflation is our main enemy. A good property should allow us to hedge against it well.  ‘Yesterday’ property purchased with the price then would enable you to be able to sell at today’s property price. Today’s property prices would also be much higher when you want to sell in the future.  Looking at just a secondary city like Ipoh would already tell you what the potential would be in bigger cities like Penang or Kuala Lumpur or even the one right next to
 Singapore, Johor Bahru
. The percentage growth in property price may be low and may even be slightly below inflation rate as what people say BUT that little percentage would be based on the TOTAL house price and soon enough you can see that the amount is significant by the time you have settled it.

‘Yesterday,’ not only is the
demand for property much smaller
 than today but even the supply is small. Number of developers are fewer and the project size is also nowhere near today’s grand scale. Choices in terms of design, types etc are also not many. Clearly, there was little to look for. Today, even if the size is the same, the design may be totally different and the prices too. Number of developers and the total demand is now much higher. In fact, unless
Malaysia stops growing economically,
 the demand would continue and the prices of properties can only continue going up after a few years of slowing down. No, I am not talking about investment as in buying more than one unit. I am talking only for everyone to have one unit they can call their own. In the future, this home may be a huge chunk of cash when you need it. Happy celebrating yesterday’s decisions today. Happy looking forward to future’s property price with your purchase today.

updated on 22 Dec 2016

Next suggested article:
Switching for better investment, always

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Stay focussed. 1MDB is not your concern.

A reader asked me a few days ago if he should proceed with his property purchase since 1MDB is such a huge issue. He asked if it would cause the collapse of the economy and bring with it the property market. Of course, if this is the case, it may be best to wait till the economy and the property market to collapse? He also said due to 1MDB, the property market may be stagnant for 2 years.

I think first things first. What’s the reason to buy today? For own stay? if it is for own stay and you seriously like the place and can afford, buy it, IF it is not overpriced. For investment? Look at the rental for that place. Is the rental healthy? Are there lots of empty units? Ask your friendly neighbourhood agent if that property is easy to rent out. If all the answers are negative, plus it is NOT overpriced, then buy it. In both cases, 1MDB does not appear at all.

Secondly, would 1MDB cause the economy to collapse? Well, even based on the worse that has been said thus far, it is said that 1MDB has debts of up to a few RM billions. Less than RM 5 billion. To be honest, I think this is a far fetched idea. It will give some negative implications including even rating downgrade possibility by Fitch Ratings in a few months time. However, for one company to cause the Malaysian economy to collapse? The Malaysian GDP in 2014 is US$312.4 Billion. (RM1,156 Billion). It is estimated to grow by 5% for 2015, thus it would be US$328 Billion (RM1,214 Billion). Tell me now, what’s the possibility of 1MDB causing the collapse of the Malaysian economy and subsequently the property market?

Of course, be very clear. If you expect the market to collapse, please do not trap yourself. Property takes a very long time to sell and get your money back.  If however you expect the market to be stagnant, then this is best time to ‘press’ the seller, especially the more motivated ones for a better price. Actually, there are still value in the market. Just need to be very clear about your goal for the next many years to come. Property investment? Stay focussed. 1MDB is not a main concern.

written on 31 Mar 2015

Next suggested article:
Same mortgage rates into 2016

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Property 2015 ‘slowing further’ – Moody’s.

Last year, REHDA Penang said 2015 would be a slower year where property transactions are concerned. Of course they were referring to their member’s predictions. In fact for primary properties, unless the developers are willing to re-plan and somehow roll out more affordable ones, the demand will continue to be weak. It has reached the ‘affordability’ borderline for many buyers. Even if they try, their loans would be rejected anyway. Recently, Moody’s Investors Service said that 2015 property demand will be slowing further. The major reasons continue to be the cooling measures in the property market as well as weak buyer sentiment. It’s assistant vice president and analyst Jacintha Poh said: “We expect the anticipation of higher mortgage rates in 2015 and the implementation of a 6% goods and service tax in April to dampen sales in 2015 as buyers take a wait-and-see approach.”

Actually, are we supposed to buy during slower times or vibrant times? Suddenly many would answer ‘during slower times’. Yet, how many can actually see through the negativity and actually set out to find the undervalued ones? Why is this so? One major reason is that there has been no fire-sale thus far. The current batch of owners are still able to hold on to their properties. One major reason? Well, majority of all mortgages are only for one property in Malaysia. Read here:
majority of home buyers have just one outstanding loan
   As for the buyers who bought much earlier on, the prices they paid were lower and if they have rented it out, the rental would be able to cover the mortgage payments easily. This is why despite a negative sentiment and everyone saying it’s a buyers’ market, prices has not really moved a lot. For it to move, we need a crisis.

As usual, the few prominent property markets would face greatest pressure. Moody’s expects a challenging time for developers focussed in Johor, Kuala Lumpur, Selangor and Penang. The major reason? Many of the properties in these markets have already surpassed the RM1 million mark and this can only target the very high income households or even foreign investors. It also said that the demand for more affordable homes which are bought for own stay would remain resilient. Happy searching for one.

written on 14 Feb 2015

Next suggested article:
Property market is slowing. Agree. However, there are today MORE interested people.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Property market 2018: Crisis or recovery?

A few friends have asked what I believe will happen to the Kuala Lumpur  property market in 2018. Seriously would anyone know? Haha. Okay, if we were to google, the predictions are on opposite ends. On one end, there are predictions that
 2018 will be a year of recovery.
 In other words, if you believe this prediction, it may be good to buy from now till 2017 when the owners are much more willing to negotiate and not in 2018 when it is highly unlikely that owners would even want to negotiate with you. If you don’t want, some other people would buy. Even when it comes to new launches, the prices are becoming ever more attractive. It seems that it’s getting cheaper by the day! Okay, the
developers are much more creative
 but hey, during good times, all these extras would disappear!

Before we open our cheque books to start buying, let’s look at a few predictions within Malaysia and around the world.
Malaysia may face recession in 2018.

This was one latest prediction by an economist. The US property market may face a collapse in 2018, according to
 Richard Barkham, Global Chief Economist at leading commercial agency, CBRE.
The reasons include more debt issues as well as excessive debt in the banks building up. Closer to home, Lindsay David, founder of LF Economics said this for the property market in Australia,
“It’s going to be a disaster. By the end of 2017 the housing market will crash, and at least one of the big four banks will either be bailed out, go bust or be nationalised.”
 London’s property market may collapse in 2017 according to Lancaster University’s UK Housing Market Observatory report. It said,
“If London house prices keep growing at the current pace of 2.75% every quarter year, there will be a full-blown bubble in early 2017”

Okay, which one should we believe? Anyway, if
property bubble were to burst

in countries outside Malaysia, would it affect us at all? Well, when the whole world is feeling negative, I am not sure how many of us could feel positive enough to buy, buy and buy property? Just look at BREXIT. Actual exit if it does happen is 2 years away. However Ringgit has already been hit by a surging US$. Read here:
Yes, it’s officially Brexit instead of Bremain

What’s my personal belief? Well, I am in the process of applying for a loan for a new property. So yes, I remain confident of my personal decision. Yes, if crisis do hit, I hope the recovery can be within 12 – 24 months. All the best to me and buyers who still think ‘can buy lah, just have to be a bit more careful.’

written on 25 June 2016

Next suggested article:
A crisis unfolding or an opportunity opening?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Property Affordability will always be key. It does not change.

In countries where the property market is more advanced than Malaysia, their suburb developments are popular.  Staying further is normal and not something uncommon. While there are reasons such as one could buy bigger, one could be more relaxed etc, the actual catalyst is definitely property price.

Else, the first preference is of course to stay closer to the action, closer to the working place and even closer to all the creature comforts such as malls, cafes, restaurants, banks etc.  These are usually not available in the further away areas in the beginning. So, price is usually the sweetener for people to consider moving further away from the city centre.

Article in nst.com.my
   PropertyGuru Malaysia’s latest biannual Consumer Sentiment Study for H1 2022 showed that home seekers prefer properties located on the city’s outskirts because they are quieter, have better pricing, more greenery, and larger-sized homes.

The same study showed that more than half (55 per cent) of Malaysians surveyed were looking for properties outside the city centre due to the Covid-19 pandemic.

Image sorurce:
Article in nst.com.my

According to Shylendra Nathan, country manager for Malaysia (PropertyGuru.com.my and iProperty.com.my), the growing preference for such properties directly reflects the pandemic-fueled remote working trend. One in every three Malaysians surveyed is currently working from home and intends to continue after the pandemic. Please do read here for the full report.
Article in nst.com.my

Migration will continue to happen from smaller places to bigger cities

There are neighbourhoods which will appeal to many local people. For example, my good friend from Air Itam, Penang said this in one of his speeches many years ago. Born in Air Itam, school is in Air Itam, university nearby Air Itam, working nearby Air Itam and of course one day will also say bye-bye to this world from Air Itam. He will always have the attachment to Air Itam.

The ones who moved to Penang to work does not have any emotional attachment to any particular area. The ones who moved to the Klang Valley to work does not have any emotional attachment to any particular area as well. This is the same even for those who migrated to Kota Kinabalu to work from smaller towns in Sabah. They too have no special emotional attachments to any specific areas.

They could buy anywhere where the price looks attractive for the space they could get. Period. This is why demand will always increase for bigger cities. Popular areas continue to attract more demand than supply while further away areas will attract those looking for more value for their money. Happy understanding.

Property News Malaysia?
Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER).
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Next suggested article:
How much do we need to pay to extend a leasehold property?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Property agent with a fake Datukship letter?

Many sportsmen and sportswomen who have contributed to the nation have been conferred Datukships. I salute them. I think it’s very important that Datukships are only conferred to people who have contributed immensely to the nation. It does not need to be confined to only those who donate a lot to charities yeah.Anyone here buying a property because the CEO of the developer is a Dato’? I would say there are MANY of such choices. Or perhaps buying a property from a developer whose founder has a Tan Sri title would be better or perhaps safer in terms of completion? I think it’s more important to look at the quality of the finishing as well as the product that we are buying instead. After all, the founder or the CEO of the developer may not be staying in the development that we are buying anyway. I think conclusion is, Datukship is not even within a top ten consideration whether or not to buy a property?

Instead of developers, we move on to a news about a real estate agent. Reported in TheStar was about a 64-year old real estate agent being detained by the police for his connection to a fake letter offering a Selangor Datukship. The fake letter claimed to offer the Darjah dan Bintang Kebesaran Negeri Selangor honorific title which carries the title “Datuk” and also falsely claimed to be from the Selangor Council of the Royal Court secretary.  It was reported that the Selangor Council of the Royal Court has never issued any offer letter for the Darjah dan Bintang Kebesaran Negeri Selangor honorific title to a person named Goh Boon Leong. Selangor Council of the Royal Court secretary, Hanafisah Jais said in a statement, “The fake letter also bears several false facts such as the wrong Selangor coat of arms as well as the false name and signature of the Selangor Council of the Royal Court secretary.”

One wonders why this real estate agent has that forged letter. Perhaps more would be revealed when the police completes their investigations. Last but not least, I also read an interesting
article in mole.my entitled, ‘Five easy steps to get a Datukship in Malaysia.’
  While the writer gave some ideas, he also gave many examples of Datos’ who became a criminal including one said to be a Dato’ but just 19 years old? He also said that it’s important that the quality of these persons conferred with such a title should be scrutinised closely. Last but not least, he also shared that it’s pretty hard to get state honours in Selangor. Out of 750 nominees, only 25 were selected to receive state honours. (Perhaps this was the reason why the fake letter was exposed? Happy following and waiting for the next announcement from the police on this ‘fake Datukship’ letter case. Cheers.

written on 14 March 2018

Next suggested article:

Developers love to build ‘affordable’ these days

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Property? Anticipating and waiting.

There are still people who believe that state governments would do their best to help them in their quest for their first property. This belief has truths because many state governments do have plans for more affordable homes. In fact the total number for the next few years exceed whatever number that the state governments has ever built on a yearly basis before this. So, ok, this is quite true. There are people who believe that the cooling measures are meant to reduce the house prices. Since this has not worked yet, it meant that they should wait a little longer. Surely the sellers cannot wait forever since they have to continue to pay their mortgages right? Let’s be very objective in this small disagreement. There are many first time home buyers, of course. Therefore they should be assisted. However, if house prices suddenly come down, it will affect everyone who has a property today. Every single home owners in Malaysia. Do you think the government, whether federal or state would want to affect every home owner in Malaysia? Think about it.

Developers continue to ask the government for more exemptions, lower compliance costs and many more things so that they can sell their properties, true? Yes, very true. However, their argument from then till now is to ‘maintain their pricing’. All these would help them NOT to increase the prices they sell. Frankly, have they said that with all these exemptions etc, they would REDUCE their prices? Every developer would want profits but every developer is also well aware that all their previous buyers are also looking at how they price their future projects. Come on, first project in the area might be RM500psf, second similar project has to be RM530psf and third project has to be very slightly higher during a slow market. However, do you expect their 4th project to be lower priced than their first project? Haha. think about it. If you are  the developer, what would you do?

Okay, now let’s be even more objective. If this current low transaction numbers continue, would the sellers not face pressure to sell? Yes, of course they would. They cannot hold forever. If selling is not possible, they would rent it out. Suddenly, the answer is clearer. What if they rent it out, can they hold on for a longer time? The answer is yes. The reason is because even though the current rental yield is no longer positive like previously but based on the lower prices that the owners bought a few years back, their current rental yield would still be positive. No wonder the fire-sale that everyone was waiting has yet to come. Wait a minute, what if Malaysia goes into a crisis? If Malaysia goes into crisis, it would not be just property prices which would go down, everything would also go down including our yearly increments, our yearly bonuses, the whole economy would slow down and by then, transaction numbers would drop further. At that time, even if the property prices are down, not many people would be confident enough to buy.

I believe we should take actions based on what we believe in. If we do nothing, then we would get nothing. If we want to believe the crisis would come soon, then make sure we work hard so that the company would keep us and fire others. At that time, we would be confident enough to buy that property at the price that we have been waiting for. Your actions determine your success. Just remember to guide your actions objectively.
Buying the wrong property, irregardless of good times or bad times is still a disaster.

written on 31 Dec 2014

Next suggested article:
Still buying property? There are lots of bad news, actually.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...