Built on commercial land. Careful of utility bill...
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M'sian govt to double minimum property price for foreigners to RM1million?
- Thread starter Sweeve
- Start date
Built on commercial land. Careful of utility bill...
Hi Cathy, I bought a unit in SGR.
The S&P did not specify anything about it's on commercial land. The sales people did not say anything about it being on commercial land.
If it's developed as a residential project, I can suppose the land is meant for residential and not commercial, agriculture, or industrial.
Where did you get the info ?
If it's really true, any one knows what is the impact on the owners?
If its commercial land, they might as well develop commercial project which get's higher margin.
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It is a commercial title. Check with setia and u will get your answer
Major impacts would be your tax and utility rate
Major impacts would be your tax and utility rate
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Yes, it is on commercial title.
Did some internet search, learnt that those so called "serviced apartment"s are all on commercial title.
Finding out more details from Setia now...
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On the utility rate, there is a possibility that u might be able to convince the power company to open a residential account for u instead. There are some examples in KL that have managed to do that. Not sure about JB yet, as most of these serviced residences are yet to be completed.
Based on what i know, on the tax part, it's higher but not significantly higher in an enormous way. It's done deal for u now so please don't be too alarm. Cheers
Based on what i know, on the tax part, it's higher but not significantly higher in an enormous way. It's done deal for u now so please don't be too alarm. Cheers
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Election Propaganda.
May or may not lead to actual implementation. Even if it does, it can always be removed or adjusted if it impacts the market too badly. Such is the policy execution in Malaysia which i personally feel is good, compared to some govt who refuse to admit any faults in their policy.
I think anything that stabilises the market is good. I want my property to appreciate in value but i would rather it appreciates at a gradual and sustainable pace. Putting a brake on properties between 500k-1m is really good wake-up call for the fxxking developers who have got really arrogant with Singaporean buyers. Now let them go beg the local buyers then they can appreciate Singaporean buyers.
May or may not lead to actual implementation. Even if it does, it can always be removed or adjusted if it impacts the market too badly. Such is the policy execution in Malaysia which i personally feel is good, compared to some govt who refuse to admit any faults in their policy.
I think anything that stabilises the market is good. I want my property to appreciate in value but i would rather it appreciates at a gradual and sustainable pace. Putting a brake on properties between 500k-1m is really good wake-up call for the fxxking developers who have got really arrogant with Singaporean buyers. Now let them go beg the local buyers then they can appreciate Singaporean buyers.
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Interesting statistics, for your reading pleasure
Protecting local house buyers
By DANIEL KHOO
[email protected] | Apr 14, 2012
INCREASING the floor price of residential property for foreign buyers from RM500,000 to RM1mil will be a positive development for the housing market, according to analysts and consultants.
Many quarters are in favour of the move to raise the floor price as it would protect the housing market for the masses.
They say the move is timely due to the continued uptrend in home prices which are forcing financiers to start providing “second-generation” type of home loans which extend the servicing of the debt to the purchasers’ children.
Property consultancy Knight Frank’s executive director Sarkunan Subramaniam says the increase in floor price for foreigners would be positive as it would benefit the local buyers as the foreigners have been pushing up house prices.
“I think overall, this is a proactive policy measure by the Government to reduce competition for houses valued at below RM1mil. However, there could be some slight impact on foreign purchasers in Johor who choose to stay in Johor Baru but work in Singapore,” Sarkunan tells StarBizWeek.
Hong Leong Research’s property analyst Sean Lim says that the move is “positive for the domestic buyers who have been frustrated by the rise property prices over the last two to three years”.
Lim says in a report that the impact on the overall property market will be minimal as “less than 5% of all transactions is by foreign buyers”.
Lim also states that the RM1mil floor price could be irrelevant as most foreign buyers are buying in the KL City Centre area and the Golden Triangle in Kuala Lumpur with valuations in excess of RM1,200 per sq ft.
“In the greater Klang Valley area, channel checks indicate that majority of foreigners are renting instead of buying houses,” Lim says.
Lim maintains his overweight rating on the property sector.
DTZ Debenham Tie Lung executive director Brian Koh says that the latest measure that is being considered by the Government will help protect the mass segment of residential properties from foreign speculation.
“A limit on foreigners which allow them to buy only houses that are priced above RM1mil would protect the mass market segment of residential properties and see less competition,” Koh says.
“There may be some impact on the foreign buyers of houses that are priced RM800,000 and above.
“But most foreigners normally buy properties above RM1mil so there will be limited impact on the property sector. These foreigners are from Hong Kong and Singapore,” Koh says.
CB Richard Ellis Malaysia’s managing director Allan Soo says that the measure will have limited impact on the property sector as most foreign buyers are already buying properties that are priced above RM1mil.
CIMB Research says in a research note that it is “not entirely surprised by the proposed ruling as house prices have appreciated considerably over the past few years and it is becoming increasingly difficult to find residential properties priced below RM500,000 in Kuala Lumpur or Penang”.
“We believe the impact on developers with significant foreign buyers such as Eastern & Oriental Bhd would be minimal. Only 2.4% of residential properties transacted in 2011 were priced above RM1mil and foreigners typically chose higher-end properties,” it adds.
Should this higher floor price be approved, it would also mean protection for the mass market segment of property purchasers.
The Government intervention into the property market with the objective of eventually cooling down house prices to more realistic levels is also in line with the current trend by governments in Singapore, Indonesia and China.
Analysts say that the move shows how much property prices have spiralled locally and that the move is proactive amid growing fears of a property bubble.
An economist with RHB Research Institute says that sustained high property prices and news about financiers starting to offer second generation loans show the seriousness of the non-affordability issue.
“These financiers need to stretch the loans to the second generation which only indicate that houses are becoming unaffordable for a normal salaried person,” RHB Research said.
“From an economic point of view, if affordability issue continues to deteriorate – it would not be a good feeling for the people. Moreover, these second generation loans may have legal implications as the financiers don’t know the credit rating of the children of the current buyers,” the RHB spokesperson added.
A senior analyst with a foreign research house observes that property prices have sky-rocketed and reckons that the current prices are unrealistic.
“I think the Government should implement the measure immediately.
“There is no doubt that looking back, prices were more realistic in the past without people having to extend the loans to their children.
“The trend is for developers to offer small-sized units nowadays as the prices keep going up. The houses are becoming smaller and smaller because of the rising cost factor,” he adds.
According to statistics of the Valuation and Property Services Department, the number transactions for properties priced up to RM150,000 decreased year-on-year by an cumulative average of 30.6%.
Protecting local house buyers
By DANIEL KHOO
[email protected] | Apr 14, 2012
INCREASING the floor price of residential property for foreign buyers from RM500,000 to RM1mil will be a positive development for the housing market, according to analysts and consultants.
Many quarters are in favour of the move to raise the floor price as it would protect the housing market for the masses.
They say the move is timely due to the continued uptrend in home prices which are forcing financiers to start providing “second-generation” type of home loans which extend the servicing of the debt to the purchasers’ children.
Property consultancy Knight Frank’s executive director Sarkunan Subramaniam says the increase in floor price for foreigners would be positive as it would benefit the local buyers as the foreigners have been pushing up house prices.
“I think overall, this is a proactive policy measure by the Government to reduce competition for houses valued at below RM1mil. However, there could be some slight impact on foreign purchasers in Johor who choose to stay in Johor Baru but work in Singapore,” Sarkunan tells StarBizWeek.
Hong Leong Research’s property analyst Sean Lim says that the move is “positive for the domestic buyers who have been frustrated by the rise property prices over the last two to three years”.
Lim says in a report that the impact on the overall property market will be minimal as “less than 5% of all transactions is by foreign buyers”.
Lim also states that the RM1mil floor price could be irrelevant as most foreign buyers are buying in the KL City Centre area and the Golden Triangle in Kuala Lumpur with valuations in excess of RM1,200 per sq ft.
“In the greater Klang Valley area, channel checks indicate that majority of foreigners are renting instead of buying houses,” Lim says.
Lim maintains his overweight rating on the property sector.
DTZ Debenham Tie Lung executive director Brian Koh says that the latest measure that is being considered by the Government will help protect the mass segment of residential properties from foreign speculation.
“A limit on foreigners which allow them to buy only houses that are priced above RM1mil would protect the mass market segment of residential properties and see less competition,” Koh says.
“There may be some impact on the foreign buyers of houses that are priced RM800,000 and above.
“But most foreigners normally buy properties above RM1mil so there will be limited impact on the property sector. These foreigners are from Hong Kong and Singapore,” Koh says.
CB Richard Ellis Malaysia’s managing director Allan Soo says that the measure will have limited impact on the property sector as most foreign buyers are already buying properties that are priced above RM1mil.
CIMB Research says in a research note that it is “not entirely surprised by the proposed ruling as house prices have appreciated considerably over the past few years and it is becoming increasingly difficult to find residential properties priced below RM500,000 in Kuala Lumpur or Penang”.
“We believe the impact on developers with significant foreign buyers such as Eastern & Oriental Bhd would be minimal. Only 2.4% of residential properties transacted in 2011 were priced above RM1mil and foreigners typically chose higher-end properties,” it adds.
Should this higher floor price be approved, it would also mean protection for the mass market segment of property purchasers.
The Government intervention into the property market with the objective of eventually cooling down house prices to more realistic levels is also in line with the current trend by governments in Singapore, Indonesia and China.
Analysts say that the move shows how much property prices have spiralled locally and that the move is proactive amid growing fears of a property bubble.
An economist with RHB Research Institute says that sustained high property prices and news about financiers starting to offer second generation loans show the seriousness of the non-affordability issue.
“These financiers need to stretch the loans to the second generation which only indicate that houses are becoming unaffordable for a normal salaried person,” RHB Research said.
“From an economic point of view, if affordability issue continues to deteriorate – it would not be a good feeling for the people. Moreover, these second generation loans may have legal implications as the financiers don’t know the credit rating of the children of the current buyers,” the RHB spokesperson added.
A senior analyst with a foreign research house observes that property prices have sky-rocketed and reckons that the current prices are unrealistic.
“I think the Government should implement the measure immediately.
“There is no doubt that looking back, prices were more realistic in the past without people having to extend the loans to their children.
“The trend is for developers to offer small-sized units nowadays as the prices keep going up. The houses are becoming smaller and smaller because of the rising cost factor,” he adds.
According to statistics of the Valuation and Property Services Department, the number transactions for properties priced up to RM150,000 decreased year-on-year by an cumulative average of 30.6%.
As it's commercial title, quit rent and assessment charges would be base on commercial rates.
Quit rent is very small amount only....like RM2-3/m2.
For assessment charges, the rates are 0.13%(residential) vs 0.26%(commercial) of market value of property. So total difference maybe RM600-800/yr for a 1000sqf unit of RM500k.
As for utilities, Setia would apply as residential rate subject to approval.
In KL, many serviced apartments are charged based on residential rates.
http://www.colliers.com.my/statutory/assessment.htm
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Well if your purpose of buying the service apartment is for rent collection then utility bill won't affect you. It only affect you when you live there.
The good thing about commercial land(IMHO) is that there are many commercial developments around it so that you could potential fetch a higher rent.
But DDODD har!
The good thing about commercial land(IMHO) is that there are many commercial developments around it so that you could potential fetch a higher rent.
But DDODD har!
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Fret not brother.
There is East Timor, Phillippines, Thailand, Cambodia, Burma, Vietnam and Indonesia to look forward to.
Nice places and cheap too.
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So there are more cons then pros when buying serviced apartment?
In that case then better take profit on the investment house first. No one ones to wait slowly for their ship to comes in. Life is short, fast money is preferred! LOL!
Bro, got to agree with u. Especially those fm Adda Heights and Bt Indah. Went to their office. Bo chap attitude. Tiu!
To increase the min. property prices for foreigners to RM1 million will just kill all the developers instead.
They had built many units around RM500K mainly for the foreigner (especially Singaporeans) and once this limit is upped, they would be left with hundreds and hundreds of unsolded units.
However, because Malaysia is a big country and in RM1 million maybe is not too high in KL or even Penang but not outside this 2 cities.
Perhaps they should restrict the RM1 million to, say only KL area and a lower number for other states.
They had built many units around RM500K mainly for the foreigner (especially Singaporeans) and once this limit is upped, they would be left with hundreds and hundreds of unsolded units.
However, because Malaysia is a big country and in RM1 million maybe is not too high in KL or even Penang but not outside this 2 cities.
Perhaps they should restrict the RM1 million to, say only KL area and a lower number for other states.
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Thanks man, yes luckily still got choices. I think amongst the countries listed, probably:
Thailand/Vietnam are still ok. Not sure about Myanmar and probably not Indonesia or Philippines for now.
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Agree, most of these houses in KL, Penang are already above this anyway. Likely for Iskandar, 800k and rest is about RM 1m.
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No plan to control property prices in Malaysia: Government
Get Daily Property News in Malaysia, News Powered by HomeGuru Malaysia
Apr 27, 2012 - HomeGuru.com.my
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The Malaysian government revealed that it has no plan to implement specific laws that will control residential and property prices in the country, according to a report by Bernama.
Datuk Seri Lajim Ukin, Deputy Minister of the Housing and Local Government, noted that home prices were determined by market forces.
"Although there is no specific act to control the rise in house prices, the government can still implement various control mechanisms to ensure that the increase is reasonable and will not affect the people as a whole," the minister stated.
Meanwhile, the government would continue monitoring the condition and, if necessary, implement further fiscal measures to ensure that the people were not burdened by the increase of home prices.
Among the mechanisms imposed to control property prices include raising real property gains tax from five percent to 10 percent for properties disposed of in less than two years and keeping a five percent rate for properties disposed of within a period of between three and five years.
"This tax increase is a move by the government to control the rise in house prices through pressure from speculation," he said.
For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit http://www.homeguru.com.my today.
Get Daily Property News in Malaysia, News Powered by HomeGuru Malaysia
Apr 27, 2012 - HomeGuru.com.my
Share | | Comment | E-mail to friend | Bookmark & Share
The Malaysian government revealed that it has no plan to implement specific laws that will control residential and property prices in the country, according to a report by Bernama.
Datuk Seri Lajim Ukin, Deputy Minister of the Housing and Local Government, noted that home prices were determined by market forces.
"Although there is no specific act to control the rise in house prices, the government can still implement various control mechanisms to ensure that the increase is reasonable and will not affect the people as a whole," the minister stated.
Meanwhile, the government would continue monitoring the condition and, if necessary, implement further fiscal measures to ensure that the people were not burdened by the increase of home prices.
Among the mechanisms imposed to control property prices include raising real property gains tax from five percent to 10 percent for properties disposed of in less than two years and keeping a five percent rate for properties disposed of within a period of between three and five years.
"This tax increase is a move by the government to control the rise in house prices through pressure from speculation," he said.
For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit http://www.homeguru.com.my today.
oh when did this happen..… Malaysia is a lovely country to reside after retirement… chilled out … I’m not from the country but every time i think of overseas property investments... I think of Malaysia..buy now and later on enjoy my life post retirement over there… I hope I can afford till my savings are done.
I share your thoughts too, bro. I love Spore. But not the......! Thats why i am buying a house in JB for my retirement.
So bro, dont think too long. Or else by then the minumum purchase price may be raised to 800k or even 1 million.
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I make the plan 3 years ago and my relative says siao. But today I am staying here and travel to work in Sg till I officially retire and chilled out in big open spaces. The little red dot is so small and somemore now packed in 6.5 million.
And the best part is you make the money and someone comes along and just take as much to pay their sky high salary. Like this how to have money to retire.
Hey Bro, better start acting now to find your landed house, grow plants and drive cheaper car and explore more places than just shopping malls after shopping malls.
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