New developments to share

[PuteriWorld]

IF RM 2million most Singaporeans will not move over to Johor. They rather stay in a S$400,000 pigeon hole next to children school and own workplace.

http://www.nst.com.my/nation/genera...?cache=03/7.196129/7.291149/7.320411/7.320411

JOHOR BARU: The state government has welcomed the address by the Sultan of Johor Sultan Ibrahim Sultan Iskandar proposing the ceiling price for foreign buyers for landed properties in the state to be set at RM2 million.
Johor housing and local government executive committee chairman Datuk Abd Latif Bandi said the proposed ceiling price would enable the state government to control the sale of landed properties to foreigners.
“This, in turn, will protect the interests of local buyers as they will not have to compete with foreigners. I also agree that the ceiling price should be higher in Johor because of its proximity with Singapore.”
He said the ceiling price should be based on the situation in the state.
“In Johor, we have to take into account that the price of land is higher and our proximity to Singapore means the demand for landed properties is also high. Local buyers also prefer to buy landed properties, so we must give priority to them.”
Yesterday, Sultan Ibrahim said the Federal Government’s proposal for the ceiling price of properties for foreign buyers to be set at RM1 million was unsuitable for Johor.

 

[PuteriWorld]

I for one welcome the move and I hope it will materialize fast as I am vested in Johor Condos.

http://www.nst.com.my/nation/genera...?cache=03/7.196129/7.291149/7.320411/7.320411

JOHOR BARU: The state government has welcomed the address by the Sultan of Johor Sultan Ibrahim Sultan Iskandar proposing the ceiling price for foreign buyers for landed properties in the state to be set at RM2 million.
Johor housing and local government executive committee chairman Datuk Abd Latif Bandi said the proposed ceiling price would enable the state government to control the sale of landed properties to foreigners.
“This, in turn, will protect the interests of local buyers as they will not have to compete with foreigners. I also agree that the ceiling price should be higher in Johor because of its proximity with Singapore.”
He said the ceiling price should be based on the situation in the state.
“In Johor, we have to take into account that the price of land is higher and our proximity to Singapore means the demand for landed properties is also high. Local buyers also prefer to buy landed properties, so we must give priority to them.”
Yesterday, Sultan Ibrahim said the Federal Government’s proposal for the ceiling price of properties for foreign buyers to be set at RM1 million was unsuitable for Johor.

 

[malpaso]

IF RM 2million most Singaporeans will not move over to Johor. They rather stay in a S$400,000 pigeon hole next to children school and own workplace.

I see more foreigners incl singaporeans renting in future.

 

[DCputeri]

Does it apply to new developer sale only? Otherwise, those existing smaller terrace houses less than RM2million and own by foreigners will be affected.

I for one welcome the move and I hope it will materialize fast as I am vested in Johor Condos.

 

[FHBH12]

http://www.nst.com.my/nation/genera...?cache=03/7.196129/7.291149/7.320411/7.320411

JOHOR BARU: The state government has welcomed the address by the Sultan of Johor Sultan Ibrahim Sultan Iskandar proposing the ceiling price for foreign buyers for landed properties in the state to be set at RM2 million.
Johor housing and local government executive committee chairman Datuk Abd Latif Bandi said the proposed ceiling price would enable the state government to control the sale of landed properties to foreigners.
“This, in turn, will protect the interests of local buyers as they will not have to compete with foreigners. I also agree that the ceiling price should be higher in Johor because of its proximity with Singapore.”
He said the ceiling price should be based on the situation in the state.
“In Johor, we have to take into account that the price of land is higher and our proximity to Singapore means the demand for landed properties is also high. Local buyers also prefer to buy landed properties, so we must give priority to them.”
Yesterday, Sultan Ibrahim said the Federal Government’s proposal for the ceiling price of properties for foreign buyers to be set at RM1 million was unsuitable for Johor.

Looks like the $2mil RM limit will be really implemented like Penang. Good for those who already bought their landed properties in JB.

 

[FHBH12]

Apparently the $1mil RM restriction didn't hold back the increase of landed property prices. I'm not sure why the JB government thinks the $2mil RM restriction can. Singapore PRs from Malaysia and Malaysians from other states are the main groups buying the landed properties in JB.

 

[RedsYNWA]

Went for the showhouse launching of Taman Gaya on Sunday. Some nice and reasonable priced houses on display. Only thing is the location is slightly off. My fav is the Eureka showhouse. V nice indeed for 1.7m upwards......

http://www.daiman.com.my/tmn_gaya_ongoing.html

 

[gooddebt]

Apparently the $1mil RM restriction didn't hold back the increase of landed property prices. I'm not sure why the JB government thinks the $2mil RM restriction can. Singapore PRs from Malaysia and Malaysians from other states are the main groups buying the landed properties in JB.

How abt foreign, esp Singaporean demand ? Does it form a large percentage of landed demand ?

 

[malpaso]

Apparently the $1mil RM restriction didn't hold back the increase of landed property prices. I'm not sure why the JB government thinks the $2mil RM restriction can. Singapore PRs from Malaysia and Malaysians from other states are the main groups buying the landed properties in JB.

my question now is will the proposed 2M mark apply to strata titled properties like SEC and Eco spring/summer?

 

[RedsYNWA]

my question now is will the proposed 2M mark apply to strata titled properties like SEC and Eco spring/summer?

Going by SG definition of landed, I would say 'Yes'. If not, all developers will be launching 'strata-titled landed' liao, which defeats the purpose of the 2m rule.

Then again, I am not sure if His Excellency has considered carefully the implications on investor confidence when he proposed this. It is far from given that Singaporeans will switch from landed to condo. Instead, it is likely that foreign investor confidence will take a steep hit overall, be it landed or condo.

 

[FHBH12]

How abt foreign, esp Singaporean demand ? Does it form a large percentage of landed demand ?

For landed properties, below are my estimates for launches in 2011-2014:

Tebrau region <10% foreigners
Nusajaya region <30% foreigners

 

[FHBH12]

The roll-out of low cost housing seems to be too slow and even 2-3 bedroom condos nowadays cost >$300k RM easily. On one hand the government is pushing for investments and raising cost of living via subsidy cuts and GST, on the other hand it is offering very little solution to the lower income group. The government is just buying time with this announcement that has very little impact on the rising cost of housing. Foreigners' appetite for JB properties will definitely be hit by this rule if implemented.

 

[malpaso]

For landed properties, below are my estimates for launches in 2011-2014:

Tebrau region <10% foreigners
Nusajaya region <30% foreigners

for most landed precinct from developers there is a 20% cap on foreign ownership.
johor locals, who have for the past 2 decades, saved a lot of money while benefitting from the strong sing dollar (whether by way of working in sgp, having some buziness link in sgp, or earning singpore day trippers business) . my theory is local johorean are as rich as their selangor counterparts, but they have had sub 200-300k properties to buy for the past 10 years. this liquidity is pushing prices up in the past few years. singaporean/ PR are of course helping by snapping up newer properties, but it is a bit unfair to suggest only singaporeans are the main cause behind pushing up prices. also one thing to note is thast there is value creation even though prices are fast catching up with KL. Before 5 years ago, one could buy a landed for 200k, this is true, but it is likely an old house in a typical taman. prices have crept up to 6xxK now but the quality of product (G&G, modern design, green landscaping, facilities) have also increased. so value is in fact being created.

be that as it may, however at 2M per landed, the number of singaporeans buying in JB will drop even more. many singaporeans want to experience living in landed, not all of these people will want to switch to condo. And those condo with unqiue / luxury features like PH condo don't come cheap either. I suspect that more will switch to renting a house instead. 2M house is very very expensive, and barring the wealthy top 10-20%, it is almost effectively a blanket ban on singaporean buying landed homes in johor.

 

[Frodo]

for most landed precinct from developers there is a 20% cap on foreign ownership.
johor locals, who have for the past 2 decades, saved a lot of money while benefitting from the strong sing dollar (whether by way of working in sgp, having some buziness link in sgp, or earning singpore day trippers business) . my theory is local johorean are as rich as their selangor counterparts, but they have had sub 200-300k properties to buy for the past 10 years. this liquidity is pushing prices up in the past few years. singaporean/ PR are of course helping by snapping up newer properties, but it is a bit unfair to suggest only singaporeans are the main cause behind pushing up prices. also one thing to note is thast there is value creation even though prices are fast catching up with KL. Before 5 years ago, one could buy a landed for 200k, this is true, but it is likely an old house in a typical taman. prices have crept up to 6xxK now but the quality of product (G&G, modern design, green landscaping, facilities) have also increased. so value is in fact being created.

be that as it may, however at 2M per landed, the number of singaporeans buying in JB will drop even more. many singaporeans want to experience living in landed, not all of these people will want to switch to condo. And those condo with unqiue / luxury features like PH condo don't come cheap either. I suspect that more will switch to renting a house instead. 2M house is very very expensive, and barring the wealthy top 10-20%, it is almost effectively a blanket ban on singaporean buying landed homes in johor.

I agree, a 2 million minimum priced property would have sabotaged any hope for me to purchase into JB.

 

[Aviator]

If not mistaken, the Sultan mentioned :

Landed... currently 1M, increase it to 2M
Condos... currently 1M, decrease it to 500k!

Why the news didn't include that 'decrease' part?
Equally much implications there too!

 

[gooddebt]

If not mistaken, the Sultan mentioned :

Landed... currently 1M, increase it to 2M
Condos... currently 1M, decrease it to 500k!

Why the news didn't include that 'decrease' part?
Equally much implications there too!

Hope they change the condo rule to 500K and leave landed as they are at 1m :P

 

[Frodo]

If not mistaken, the Sultan mentioned :

Landed... currently 1M, increase it to 2M
Condos... currently 1M, decrease it to 500k!

Why the news didn't include that 'decrease' part?
Equally much implications there too!

Maybe he wants the over-supply of condo units to be quickly taken up relative to the landed?

 

[FHBH12]

Never think through policies properly, as usual.

 

[Jetstream]

If not mistaken, the Sultan mentioned :

Landed... currently 1M, increase it to 2M
Condos... currently 1M, decrease it to 500k!

Why the news didn't include that 'decrease' part?
Equally much implications there too!

Makes sense. Locals aren't into condo living. Foreigners make up the bulk of condo buyers.

So the proposal is win-win: Locals will be happy their landed turf is protected from competition from foreigners. Developers who are heavily invested in recent mega land acquisitions for condo developments will be able to sell their thousands if units to be built in the next few years. The inflow of foreign funds from buyers in turn will have positive knock-on effects on the overall economy of iskandar.

 

[OracleMasia]

If not mistaken, the Sultan mentioned :Landed... currently 1M, increase it to 2MCondos... currently 1M, decrease it to 500k!Why the news didn't include that 'decrease' part?Equally much implications there too!

Agree. Actually, they can follow the same as Singapore i.e. Foreigners is not allowed to buy landed.All problems solved immediately.