New developments to share

[ginfreely]

Re: The Epic

The correct measure should have been to copy SG and impose on foreign buyers: either (a) foreigner ABSD (b) higher state consent fees or (c) higher RPGT on foreigners.

It's also politically acceptable to all, since a no. of Asian cities are doing it, eg HK and SG. His proposed rule is really weird.

Singapore where got RPGT and state consent on foreigners? Singaporeans second house already subject to ABSD, not just foreigners. Anyway talk more also no use, foreigners in JB are sitting ducks waiting to be slaughtered.

 

[FHBH12]

Re: The Epic

Singapore where got RPGT and state consent on foreigners? Singaporeans second house already subject to ABSD, not just foreigners. Anyway talk more also no use, foreigners in JB are sitting ducks waiting to be slaughtered.

Foreigners pay a lot more to government to buy SG property. They immediately lose money upon purchase. MY only taxes ur profit upon successful sale.

 

[ginfreely]

Re: The Epic

Foreigners pay a lot more to government to buy SG property. They immediately lose money upon purchase. MY only taxes ur profit upon successful sale.

Is it? How much more?

 

[FHBH12]

Re: The Epic

Is it? How much more?

High enough to dampen foreigners' demand. Have u ever wondered y so many PRs r buying in Malaysia? It is e ABSD. Coupled with SSD, only e most determined foreigners r buying in SG for e long term. Btw, CCR property prices r falling, which is indicative of e slowing down of foreign investment in that area.

 

[RedsYNWA]

Re: The Epic

Singapore where got RPGT and state consent on foreigners? Singaporeans second house already subject to ABSD, not just foreigners. Anyway talk more also no use, foreigners in JB are sitting ducks waiting to be slaughtered.

What I mean is the MY govt should just copy SG to levy more taxes on foreigners, instead of restricting property sales by nationality. Anyway, yah, let's wait for the measures first since MY a lot of talk but little action 1.

 

[RedsYNWA]

Re: The Epic

Is it? How much more?

Foreigners 15%. 1st property for PR is 5%. Actually what FHBH12 say is true. SG measures are more punitive.

 

[malpaso]

Re: The Epic

High enough to dampen foreigners' demand. Have u ever wondered y so many PRs r buying in Malaysia? It is e ABSD. Coupled with SSD, only e most determined foreigners r buying in SG for e long term. Btw, CCR property prices r falling, which is indicative of e slowing down of foreign investment in that area.

i'm a PR i bought in jb because of ABSD. otherwise i'd be waiting for ripple bay to complete so your govt did their job well.

 

[rainbow]

Re: The Epic

i'm a PR i bought in jb because of ABSD. otherwise i'd be waiting for ripple bay to complete so your govt did their job well.

I think the difference is Singapore govt just wanted to pump up the economic growth rates for whatever reasons, and opened the door wide for all sorts of foreign workers (they call FTs)! They were then caught off-guard on many fronts: housing, public transportation, hospital & medical sectors etc. Because of the public frustration and pressure that translate into votes, they started engaging reverse gear.

M'sian govt ,particularly Iskandar M'sia, on the other hand, openly and strategically have been going out of their way to promote and invite foreigners to come and invest not just in industries and business, but also real estates, giving all kinds of incentives to attract and facilitate foreigners to reside in Iskandar. And surprisingly, despite earlier not so shining records on other projects, they have achieved pretty good initial success this time. Sure, take care of the lower income group in their housing needs in Johor. The State govt, I believe now has very substantial financial resources from the robust property market to finance/subsidise this area without resorting to curbing foreign investments in properties which they are directly promoting aggressively in the first place. The federal govt could be in deficit; I strong suspect Johor State is in substantial surplus (if leakages are not overwhelming) just on property/land related transactions alone. Why kill the golden goose; there are many other ways you can take care of the housing needs of your lower/middle income locals.

 

[Newbie11]

Re: The Epic

Is everyone aware of the new ruling that is coming out?

Pls read up and decide before jumping in..... those who already signed SPA will be stuck. Will post once I find out more info.....

for now read this link, and pay attention the the last 2 paragraph.

http://www.starproperty.my/index.ph...e-property-ceiling-price-from-rm500k-to-rm1m/

I learnt to take Malaysian media with pinch of salt. Iskandar need fdi. Period.

 

[FHBH12]

Re: The Epic

Malaysia has already spent billions in the infrastructure. The government's investments funds and political parties are also linked to property market. I'm not expecting big moves the TDSR that stop investments, but smaller ones like slightly higher levies and taxes for foreigners.

 

[malpaso]

Re: The Epic

Malaysia has already spent billions in the infrastructure. The government's investments funds and political parties are also linked to property market. I'm not expecting big moves the TDSR that stop investments, but smaller ones like slightly higher levies and taxes for foreigners.

actually i read some of the similar reports on the malay websites. the story is slightly different there. the report merely states that the MB is just confirming that the min purchase price of property for foreigner will not be raised to 1M. So MB is justifying this move. The report also states that the state is only considering different measures to stop the "overheated market". Furthermore, the measures are to try to "stop speculators" and not deter "genuine buyers". That 's all. No mention on any concrete restrictions. But Johor better think carefully. cos any shock will halt the market. all will be affected. No market just thrives on high end property with no local participation. Do you see many rich foreigners buying really expensive properties in Segamat or Pagoh or Bentong or Ulu Yam Baru? (the answer is no).

 

[FHBH12]

Re: The Epic

I think the difference is Singapore govt just wanted to pump up the economic growth rates for whatever reasons, and opened the door wide for all sorts of foreign workers (they call FTs)! They were then caught off-guard on many fronts: housing, public transportation, hospital & medical sectors etc. Because of the public frustration and pressure that translate into votes, they started engaging reverse gear.

M'sian govt ,particularly Iskandar M'sia, on the other hand, openly and strategically have been going out of their way to promote and invite foreigners to come and invest not just in industries and business, but also real estates, giving all kinds of incentives to attract and facilitate foreigners to reside in Iskandar. And surprisingly, despite earlier not so shining records on other projects, they have achieved pretty good initial success this time. Sure, take care of the lower income group in their housing needs in Johor. The State govt, I believe now has very substantial financial resources from the robust property market to finance/subsidise this area without resorting to curbing foreign investments in properties which they are directly promoting aggressively in the first place. The federal govt could be in deficit; I strong suspect Johor State is in substantial surplus (if leakages are not overwhelming) just on property/land related transactions alone. Why kill the golden goose; there are many other ways you can take care of the housing needs of your lower/middle income locals.

Singapore government has not reversed gear yet, it is just switching to lower gear (note we have grown to 5.4 mil this year from 5.3 last year) for infrastructure to catch up first. The demand and supply is quite balanced in Singapore now.

The problem in Johor is most people naturally prefer landed, and actually there is no such thing as low cost landed at southern part of Johor. The affordability is a big issue now. The only way out for Johor government is to build HDB-style units for these people, but it doesn't seem to get anywhere in Johor. For the next 5 years the children can continue to stay with parents in their old spacious 4-5 bedroom houses. But eventually they will shift out to condos that are cheaper. I project this acceptance of condos within the next 10 years and most developers will eventually offer condos instead of landed (starting to happen now).

In the next few years I expect the new Johor factories to demand more workers, and migration from other states and countries will impose a heavy strain on housing, transport, schools, hospitals and security. We might see a Singapore situation in 2005-2012 in Johor soon. Housing prices will go up.

 

[malpaso]

Re: The Epic

Singapore government has not reversed gear yet, it is just switching to lower gear (note we have grown to 5.4 mil this year from 5.3 last year) for infrastructure to catch up first. The demand and supply is quite balanced in Singapore now.

The problem in Johor is most people naturally prefer landed, and actually there is no such thing as low cost landed at southern part of Johor. The affordability is a big issue now. The only way out for Johor government is to build HDB-style units for these people, but it doesn't seem to get anywhere in Johor. For the next 5 years the children can continue to stay with parents in their old spacious 4-5 bedroom houses. But eventually they will shift out to condos that are cheaper. I project this acceptance of condos within the next 10 years and most developers will eventually offer condos instead of landed (starting to happen now).

In the next few years I expect the new Johor factories to demand more workers, and migration from other states and countries will impose a heavy strain on housing, transport, schools, hospitals and security. We might see a Singapore situation in 2005-2012 in Johor soon. Housing prices will go up.

there are still many cheap 2nd hand houses in JB. there are also lots of empty low cost apartments. you see them at setia indah (next to the petronas). eventually these will all be taken up. over time, especially in good/central locations, houses price should exceed condo prices. what is happening in JB is the same thing that happened in KL for the past 15-20 years.

 

[cow138]

Re: The Epic

Singapore government has not reversed gear yet, it is just switching to lower gear (note we have grown to 5.4 mil this year from 5.3 last year) for infrastructure to catch up first. The demand and supply is quite balanced in Singapore now.

The problem in Johor is most people naturally prefer landed, and actually there is no such thing as low cost landed at southern part of Johor. The affordability is a big issue now. The only way out for Johor government is to build HDB-style units for these people, but it doesn't seem to get anywhere in Johor. For the next 5 years the children can continue to stay with parents in their old spacious 4-5 bedroom houses. But eventually they will shift out to condos that are cheaper. I project this acceptance of condos within the next 10 years and most developers will eventually offer condos instead of landed (starting to happen now).

In the next few years I expect the new Johor factories to demand more workers, and migration from other states and countries will impose a heavy strain on housing, transport, schools, hospitals and security. We might see a Singapore situation in 2005-2012 in Johor soon. Housing prices will go up.

With the attraction of much higher wages in Singapore it will be very difficult for Johor to retain talent to work there. If the pay in effect cost of living don't go up, you can only attract low wage workers to come down to Johor. So how to generate the middle class demand.

If cost of living in Johor do go up then what's the point of Singaporean buying and retiring in Johor.
It's good for Johor now coming off from a low base but to sustain it something has to give. Both scenario is not to appealing. Cost of living go up or stuck in a low wage rut.

 

[FHBH12]

Re: The Epic

there are still many cheap 2nd hand houses in JB. there are also lots of empty low cost apartments. you see them at setia indah (next to the petronas). eventually these will all be taken up. over time, especially in good/central locations, houses price should exceed condo prices. what is happening in JB is the same thing that happened in KL for the past 15-20 years.

2nd hand houses have a lot of hidden costs e.g. legal fees and renovation to restore the condition. Easily add another $100k RM to the price for an equivalent landed. Unless the location is good.

I have seen quite a number of apartments along EDL, but surrounding is really bad and there are hardly amenities nearby. The government must have selected the worst land and built the apartments without amenities to cut costs. Let me find out the history of KL. Right now I find JB re-tracing the steps of Singapore in 1980s, which is the era when property prices started to escalate and jobs shifted from low-end to middle-tier manufacturing.

 

[FHBH12]

Re: The Epic

With the attraction of much higher wages in Singapore it will be very difficult for Johor to retain talent to work there. If the pay in effect cost of living don't go up, you can only attract low wage workers to come down to Johor. So how to generate the middle class demand.

If cost of living in Johor do go up then what's the point of Singaporean buying and retiring in Johor.
It's good for Johor now coming off from a low base but to sustain it something has to give. Both scenario is not to appealing. Cost of living go up or stuck in a low wage rut.

I find the killer in Singapore is actually the rent and short land lease. The only thing that is holding many people back is the jams at the links. If they are improved, all hell will break loose for Singapore's land lords.

 

[malpaso]

Re: The Epic

2nd hand houses have a lot of hidden costs e.g. legal fees and renovation to restore the condition. Easily add another $100k RM to the price for an equivalent landed. Unless the location is good.

I have seen quite a number of apartments along EDL, but surrounding is really bad and there are hardly amenities nearby. The government must have selected the worst land and built the apartments without amenities to cut costs. Let me find out the history of KL. Right now I find JB re-tracing the steps of Singapore in 1980s, which is the era when property prices started to escalate and jobs shifted from low-end to middle-tier manufacturing.

i think the history of any city is the same everywhere, a sort of natural progression. first good locations taken to build house, then spread outward from the centre of gravity. then high rise in the centre, then spread outward. JB being next to singapore will see demand, just that right now the rise is too sharp. risks like government meddling may shock the market into a long coma.

 

[cow138]

Re: The Epic

Govt meddling has to be tempered with some intelligence. Currently I find that somehow Malaysia doesn't seem to really have much planning in terms of zoning for residential properties. You can probably find slums amongst high end developments. For eg in KL City Centre. It's quite puzzling.

Is there even enbloc activities in Malaysia. Seems like Malaysia it's 100% agreement before it can happen compared to Singapore which can proceed with a majority agreement.

Such laws makes it difficult to transform a city. Which I think Iskandar probably in more mature township or even the city centre to modernise itself.

I might be wrong but that seems to be the general impression that I got.

 

[Jetstream]

Re: The Epic

M'sian gahmen is more sensitive to political backlash. There are very strong NGOs that champion all kinds of unique causes. The gahmen has been known to backtrack or belakang pusing on policies after hue and cry from the ground. Then there is also the issue of "Malay land" (eg Kg Bahru in KL) which are ultra sensitive politically, hence u can have a kampung just a stone's throw from KLCC. That's M'sian politics!

 

[malpaso]

Re: The Epic

M'sian gahmen is more sensitive to political backlash. There are very strong NGOs that champion all kinds of unique causes. The gahmen has been known to backtrack or belakang pusing on policies after hue and cry from the ground. Then there is also the issue of "Malay land" (eg Kg Bahru in KL) which are ultra sensitive politically, hence u can have a kampung just a stone's throw from KLCC. That's M'sian politics!

talking about kg baru, have you been to 'buka puasa' markets there. the food is shiok