Living in JB 3 (Johore)

[IskandarRocks]

Johor looking to raise foreign house ownership ceiling to RM1mil

Read here ....

http://thestar.com.my/news/story.asp?file=/2013/1/10/nation/20130110180947&sec=nation

 

[FHBH12]

So the safer way to buy now is to buy those $800k RM or higher?

 

[IskandarRocks]

So the safer way to buy now is to buy those $800k RM or higher?

Does not matter for own stay. For investment, I would stay closer to the RM 1M mark. Anything significantly below, your potential resale market size will be smaller. Unless it is an exempted zone, like Medini - 99 years though.

 

[Walker]

Does not matter for own stay. For investment, I would stay closer to the RM 1M mark. Anything significantly below, your potential resale market size will be smaller. Unless it is an exempted zone, like Medini - 99 years though.

I think if foreign ownership is raised to RM1 million, the developers will find ways and means to raise the selling price of their projects to hit the million mark...
and all the lower end properties will be pushed up as well so at the end of the day, it may end up increasing prices not controlling them.

 

[Whathefish]

I think if foreign ownership is raised to RM1 million, the developers will find ways and means to raise the selling price of their projects to hit the million mark...
and all the lower end properties will be pushed up as well so at the end of the day, it may end up increasing prices not controlling them.

You can't raise prices overnight. And if they do, it only means more of the locals priced out, means less demand.
In short term it'll taper demand, as even investors will be worry they can't offload to locals above 1mil price range. It'll also price out common singaporeans who'll find investing 1mil RM housing out of range.

By doing so they'll also aggrevate the sectorised "atas/rich districts effect". Where only the rich and foreigners are clustered in certain projects.

 

[Walker]

You can't raise prices overnight. And if they do, it only means more of the locals priced out, means less demand.
In short term it'll taper demand, as even investors will be worry they can't offload to locals above 1mil price range. It'll also price out common singaporeans who'll find investing 1mil RM housing out of range.

By doing so they'll also aggrevate the sectorised "atas/rich districts effect". Where only the rich and foreigners are clustered in certain projects.

I agree it can't be raised overnight and yes demand will be tapered...
Of course I would prefer they not do raise the min price for foreigners.

But developers will always try to find ways and means to overcome it.
Like in Singapore when PSF got high, they started to build smaller units... shoeboxes.

If it is raised to 1 million maybe they will build bigger units for the foreigners... maybe units that can be split into 2 units (Dual Key)
Rent out to 2 tenants

 

[shctaw]

So the safer way to buy now is to buy those $800k RM or higher?

Correct. But must buy soon, otherwise a lot of Singaporean will be price out too....

RM1 million is SGD$400,000. Not many Singaporean can stomach it.

It will build a strong base at RM1,000,000 before price advance upward again. Just like Penang.

 

[FHBH12]

Correct. But must buy soon, otherwise a lot of Singaporean will be price out too....

RM1 million is SGD$400,000. Not many Singaporean can stomach it.

It will build a strong base at RM1,000,000 before price advance upward again. Just like Penang.

I will be putting a deposit for a house this weekend. However the developer has not launched it yet.

Will it affect the application pending state approval if it is implemented?

 

[shctaw]

I will be putting a deposit for a house this weekend. However the developer has not launched it yet.

Will it affect the application pending state approval if it is implemented?

If RM1m capped implemented today.

If thru developer, they may offer you a more expensive unit to replace your current purchase.

If thru agent or agency; you may need to call off the deal.

 

[FHBH12]

If RM1m capped implemented today.

If thru developer, they may offer you a more expensive unit to replace your current purchase.

If thru agent or agency; you may need to call off the deal.

Problem is I will be very stretched and it is more difficult to re-sell next time if the unit is too expensive. I think I will check with the developer this weekend and request them to launch asap.

Thanks.

 

[ahhock24]

Problem is I will be very stretched and it is more difficult to re-sell next time if the unit is too expensive. I think I will check with the developer this weekend and request them to launch asap.

Thanks.

New wave of hot money heading your way, watch out.

 

[wuqi256]

Yes repeated news of UOB Kayhian, etc. Lots of well connected/well heeled folks are coming out here so it will be interesting times especially after the elections.

 

[wuqi256]

Quick updates:

There is a large length of damaged road barrier if one goes from the Perling connector towards the Coastal highway. Cars especially on the right most lane, please watch out as it still protrudes out.

Fixed a car bumper issue after driving to a petrol station in Tampoi area, there was a hidden depression in the road and in the end, skirting and front bumper got pretty damaged and cracked. Had to get it fixed and in the end, total cost? 200 RM and i gave the nice chap another 20 RM as he washed and vacuumed my car for free.

New launch of terraces near Mutiara Emas, been launched a while and there are double storey units available there, prices are below 500k for now though.

Folks should explore the shops near to the spraypainting/mudguard shops around, a few shops specializing in windows, etc are there as well.

There are some promos going on recently for chains such as Moonlight cafe and Secret Recipes, especially on the weekdays

 

[FHBH12]

New wave of hot money heading your way, watch out.

Yup. I just booked a unit at Tebrau and going to ride on this wave. I project another 10% price increase in JB this year. Actually I was in JB yesterday afternoon to select a unit so I only knew about Singapore's (crazy) new cooling measures at night. The JB chinese are now very scare of being priced out in future and are grabbing units fast also. Almost all G&G landed are bought by local chinese.

From the list of owners, I realise I'm one of the rare few beyond JB city center at zone A. Most owners (including myself) bought zone B. Having travelled both to zone A and B, I would say zone B is more beautiful but zone A beyond the city center is still much cheaper and is mostly locally invested.

 

[OracleMasia]

Yup. I just booked a unit at Tebrau and going to ride on this wave. I project another 10% price increase in JB this year. Actually I was in JB yesterday afternoon to select a unit so I only knew about Singapore's (crazy) new cooling measures at night. The JB chinese are now very scare of being priced out in future and are grabbing units fast also. Almost all G&G landed are bought by local chinese.

From the list of owners, I realise I'm one of the rare few beyond JB city center at zone A. Most owners (including myself) bought zone B. Having travelled both to zone A and B, I would say zone B is more beautiful but zone A beyond the city center is still much cheaper and is mostly locally invested.

Can I ask which project did you buy into?

 

[FHBH12]

Plenitude at Tebrau.

 

[curiouscat]

I agree it can't be raised overnight and yes demand will be tapered...
Of course I would prefer they not do raise the min price for foreigners.

But developers will always try to find ways and means to overcome it.
Like in Singapore when PSF got high, they started to build smaller units... shoeboxes.

If it is raised to 1 million maybe they will build bigger units for the foreigners... maybe units that can be split into 2 units (Dual Key) Rent out to 2 tenants

Very true, markets adjust to the constraints imposed. If you require foreigners to pay more, then units will become larger and fancier etc.

One of the skills needed to effectively design policy is to make sure the policy doesn't have large negative affects you don't want compared to the affect you do want. Singapore has succeeded partially because they have been better at this than almost any country. People is Singapore often get upset at some of the negative consequences, which can be understood, but when you look at how poorly other countries do I believe Singapore does very well. Singapore reaction to property bubble has not been perfect (it was too slow for one thing) but it is much better than the vast majority of countries.

I think policies that increase required down payments, increase taxes on speculative gains (short term flipping), increase taxes on foreign purchases are best. Raising minimum prices foreigners must pay to levels so high above the market is not the best policy decision in my opinion: it has market distorting effects (encourages oversupply of luxury units that are more likely to induce a bubble and then crash) that are more undesirable than alternatives.

 

[crystal_tiong]

Plenitude at Tebrau.

i was there this afternoon and saw plentiude site. hmm , i still think bukit indah environment is better ..

 

[FHBH12]

i was there this afternoon and saw plentiude site. hmm , i still think bukit indah environment is better ..

I agree. For e price n convenience, I take Tebrau. Anyway I have Bestari Heights tt is v near Bt Indah.

 

[crystal_tiong]

I agree. For e price n convenience, I take Tebrau. Anyway I have Bestari Heights tt is v near Bt Indah.

ok. how much u paid for it ? e eateries nearby not so exciting . not very vibrant there.