Eh.... I thought you have been the anti-Mahathir camp all the while, due to his racial divide policies?
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Property News
- Thread starter FHBH12
- Start date
There are many things you cannot control in life especially when you are not one of them.
You do what is presented in front of you and you swim with the tide.
Malaysian Chinese came with nothing from China. We are survivors and we know how to blend in any situations past, present or future.
Investing in properties are no different. You need to know who is in charge of the area or project you are going to invest in.
You also need to know who are the links behind a certain developer. You can bet lots of abandoned projects have many of fallen out influential backers. This is the reality of Malaysian property scene.
That's certainly a possibility. And hence, the risk of non-Malaysians investing there. Rules, laws and policies might change overnight for foreign investors, as has happened before.
Najib had all his points covered very well. Given so much controversy, I'm quite sure by now he would have been ousted out of his position. Even Mahathir has no power against him!
Generally, I think Iskandar property policies looked safe for the time being. But again as I said before, foreigners should start with baby steps in property investments. Do not over borrow and look for short term gain. Even if things turn sour, you can still manage your investments.
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Alamak! I was about to quote ur last para. But u so fast re-edited it. And i tink i know why.
Anyway tat last para which u had deleted also reminded me of another country. Thats why tat country very "well managed".
Not for me to post those details.
It is like when KLCC was built, it benefited KL people only. When MRT was built, it benefited everyone.
Not for me to post those details.
It is like when KLCC was built, it benefited KL people only. When MRT was built, it benefited everyone.
Ya i know lah. And i do agree with ur last deleted para. Teres alot of policiies which Msia garment should take a leaf from tat particular country.
Smart. Otherwise, next time you may kena tangkap and sent for a coffee break when leaving from KLIA.Not for me to post those details.
You can post anything as long as it is a published article. If it is reported in the newspapers, it is okie.
But never never insult any royals or race as this amounts to sedition.
It is just that I feel this is a property forum as such we refrain anything political.
While most here are eyeing JB, I think the bigger threat still Singapore's economy. It is in Chinese though....for those who could understand
新加坡买气大冻结
08/06/16
作者/来源：联合报 http://udn.com
由于国内经济疲弱与观光客花费下滑，新加坡「购物天堂」的美誉正受到冲击，购物乐园眼看就快成了失乐园。
路透报导，近五年来，投资人共注入一百亿星元（约台币两千三百五十亿元）到零售业开发桉，商用空间增加百分之十，但空置率由百分之五上升至百分之七点三，行业分析师预估空置率将持续上升。
新加坡最有名的购物街乌节路上，一间购物商场五楼的十六个店面，十三个没有房客。客流较少的零售店面几乎租不出去，例如西边郊区一座开业近两年的地下商场，超过三分之二店面仍閒置着。
新加坡服饰鞋类三月销售额较去年同期减少百分之三点五，二月跌幅更高达百分之十四点六。对新加坡来说这非同小可，批发和零售业创造最多的就业机会，而且与製造业在对国内生产毛额贡献上等量齐观。
过去星国经济快速扩张，拉动国内五百五十万人口的强劲消费需求，加上来自中国、印度和东南亚的中产阶级观光客大肆购物，都是造就新加坡零售业蓬勃发展的因素。
但如今全球经济不振，使得新加坡民众减少消费，尤其是深受冲击的出口产业劳工。在此同时，观光客在二○一五年头九个月的旅游花费，也较前年同期下降百分之七。
许多人对上周已开始的「新加坡大热卖」年度促销活动寄予厚望，今年活动将持续十周。不过降价促销在新加坡到处可见，例如Robinson百货公司过去两周已把折扣降至三折，希望刺激买气。
零售业的黯谈前景，让新加坡房地产业面临的挑战更严峻，多家房地产上市公司过去一年股价分别下跌一至两成。
---
分类题材: 行业_industries, 经济_economy
新加坡买气大冻结
08/06/16
作者/来源：联合报 http://udn.com
由于国内经济疲弱与观光客花费下滑，新加坡「购物天堂」的美誉正受到冲击，购物乐园眼看就快成了失乐园。
路透报导，近五年来，投资人共注入一百亿星元（约台币两千三百五十亿元）到零售业开发桉，商用空间增加百分之十，但空置率由百分之五上升至百分之七点三，行业分析师预估空置率将持续上升。
新加坡最有名的购物街乌节路上，一间购物商场五楼的十六个店面，十三个没有房客。客流较少的零售店面几乎租不出去，例如西边郊区一座开业近两年的地下商场，超过三分之二店面仍閒置着。
新加坡服饰鞋类三月销售额较去年同期减少百分之三点五，二月跌幅更高达百分之十四点六。对新加坡来说这非同小可，批发和零售业创造最多的就业机会，而且与製造业在对国内生产毛额贡献上等量齐观。
过去星国经济快速扩张，拉动国内五百五十万人口的强劲消费需求，加上来自中国、印度和东南亚的中产阶级观光客大肆购物，都是造就新加坡零售业蓬勃发展的因素。
但如今全球经济不振，使得新加坡民众减少消费，尤其是深受冲击的出口产业劳工。在此同时，观光客在二○一五年头九个月的旅游花费，也较前年同期下降百分之七。
许多人对上周已开始的「新加坡大热卖」年度促销活动寄予厚望，今年活动将持续十周。不过降价促销在新加坡到处可见，例如Robinson百货公司过去两周已把折扣降至三折，希望刺激买气。
零售业的黯谈前景，让新加坡房地产业面临的挑战更严峻，多家房地产上市公司过去一年股价分别下跌一至两成。
---
分类题材: 行业_industries, 经济_economy
Singapore?
Developers slash prime home prices by up to 30% to dodge extension charges
Discount schemes are working well, analysts say.
In a desperate bid to dodge hefty extension charges, developers are resorting to huge discounts and creative marketing schemes in order to sell units at a number of high-end residential projects, according to a report by UOB Kay Hian.
At Ardmore Three, for instance, Wheelock has rolled out an ABSD Assistance package which offers a further discount of 13% to 15%. The package comes on top of an existing 15% discount, which effectively translates to a 30% price cut.
The ABSD Assistance package effectively jump-started sales at Ardmore Three, which had only sold seven units in March 2016. At a recent site visit, UOB Kay Hian learned that the development has sold up to 40 units, with the cheapest units priced at $2,560 psf including the discounts.
Pricier units at higher floors of Ardmore Three are priced at above $3,000 psf. The average selling price of $2,800 psf is a far cry from the project's original price range of $3,000-$4,000 psf.
“We have been seeing nascent signs of life in the high-end market as developers relent on pricing at selected projects, dangling discounts to entice,” UOB Kay Hian said.
Over at the 174-unit project Gramercy Park, City Developments has been offering discounts of up to 18%, which comes on top of a 2% price reduction. The discounts resulted in the sale of about 6-7 units, but CDL has rebuffed attempts at further price cuts.
"The slower uptake compared with that for Ardmore Three implies that prices cuts could well be too shallow to appeal to prospective homebuyers, and an effective discount of about 30%, representing prices as low as $2,000 psf for selected units could possibly trigger the same surge of interest witnessed at Ardmore 3,” the report noted.
- See more at: http://sbr.com.sg/residential-prope...-dodge-extension-charges#sthash.zy8FgkWh.dpuf
Discount schemes are working well, analysts say.
In a desperate bid to dodge hefty extension charges, developers are resorting to huge discounts and creative marketing schemes in order to sell units at a number of high-end residential projects, according to a report by UOB Kay Hian.
At Ardmore Three, for instance, Wheelock has rolled out an ABSD Assistance package which offers a further discount of 13% to 15%. The package comes on top of an existing 15% discount, which effectively translates to a 30% price cut.
The ABSD Assistance package effectively jump-started sales at Ardmore Three, which had only sold seven units in March 2016. At a recent site visit, UOB Kay Hian learned that the development has sold up to 40 units, with the cheapest units priced at $2,560 psf including the discounts.
Pricier units at higher floors of Ardmore Three are priced at above $3,000 psf. The average selling price of $2,800 psf is a far cry from the project's original price range of $3,000-$4,000 psf.
“We have been seeing nascent signs of life in the high-end market as developers relent on pricing at selected projects, dangling discounts to entice,” UOB Kay Hian said.
Over at the 174-unit project Gramercy Park, City Developments has been offering discounts of up to 18%, which comes on top of a 2% price reduction. The discounts resulted in the sale of about 6-7 units, but CDL has rebuffed attempts at further price cuts.
"The slower uptake compared with that for Ardmore Three implies that prices cuts could well be too shallow to appeal to prospective homebuyers, and an effective discount of about 30%, representing prices as low as $2,000 psf for selected units could possibly trigger the same surge of interest witnessed at Ardmore 3,” the report noted.
- See more at: http://sbr.com.sg/residential-prope...-dodge-extension-charges#sthash.zy8FgkWh.dpuf
33 Singaporean investors cry foul over land buys in India
=======================================
They sank their savings into undeveloped land in India, drawn by visions of gleaming villas, upcoming infrastructure and returns of more than 100 per cent. That was between 2007 and 2011.
Now, the 33 Singaporean investors - who spent more than $780,000 - own land of questionable value, which is hard to sell.
They are crying foul at Singapore-registered KMGM International which sold them the land.
They claim it has not been developed and has hardly risen in value. They want to sell it back.
About 20 of them staged a walk-in on May 5 to confront KMGM director S. Gulam at the firm's Bukit Merah premises, demanding assurances that they could sell back their land.
He was not there, but assured them by telephone that he would meet them on May 16 .
But on May 13 they received letters saying that the matter would be handled through his lawyers at Advaitha Law Corporation.
Advaitha director G.B. Vasudeven told The Sunday Times that his client was ready to obtain valuations for each of the investors' land parcels, but declined to disclose any further course of action. He added that he has written to the 33 to say that if they try to enter KMGM's offices again, they will be reported to the police as trespassers.
Twenty investors have since gone on to make police reports against KMGM. The group of 33 had bought 45 plots of land, each a few thousand sq ft in size, in Chennai .
They are mostly in their 50s and 60s, and they said they trusted KMGM because it is a Singaporean firm and its directors, lawyer R. Kalamohan and Mr Gulam, a former journalist, are well-regarded members of the Indian community.
Retired navy officer Anandam Thomas, 62, bought two plots of land for about $41,470 in 2008.
"My father was from India, and I wanted a little piece of India for myself," he said.
After payment, he and the other buyers were flown to Chennai to see the land and receive their sale deeds.
Last year and in April this year, he went back on his own to check and found the land was still undeveloped and occupied by squatters.
He said that after his attempts to sell the land back to KMGM failed, he decided to gather fellow investors in the same situation.
Mr Gulam, 54, told The Sunday Times by telephone that he was not out to cheat anyone and meant to help the investors sell the land.
However, he said it was impossible to sell it at a profit right now because the Indian rupee had fallen drastically in the last few years and the property market was in a slump.
He said: "When you invest overseas, you must take a risk.
"If you buy a house now and the price goes down, can you tell the developer you want your money back?"
Mr Kalamohan, 68, who left KMGM in 2014, said: "There was nothing more to sell and I was of no use to the company, so I thought it was time to leave."
He added that there was nothing wrong with the investors' documents, which he had examined, and all the purchases were valid.
Of the 45 contracts among the group, 24 had a clause guaranteeing they could sell the land back to the company after three years "at the best prevailing market price". However 27 contracts lacked a "patta", an Indian land ownership document.
New Delhi-based lawyer Alok Tewari, a senior partner with Indian law firm Kochhar & Co, said: "Legally it may be possible to sell the property without a patta. He added, however, that sometimes the authorities may demand to see a patta to register a sale deed.
Property experts said overseas landbanking is fraught with risk.
Mr Alan Cheong, Singapore research head for real estate firm Savills, advised investors to check whether the country's legal framework is solid and can be enforced even by an overseas national, as well as the reputation of the property agency marketing the product.
Retired civil servant Manokaran Ramasamy, 64, and his late wife spent $129,510 on four plots of land in 2008.
His wife died from cancer in March. He said all he wanted was some form of closure from KMGM.
"Even in the pain of her last days, she would go back to them to ask about selling the land. I don't understand why they didn't entertain her," he said.
"I don't think they can honour the agreement. They owe it to us to fill in the blanks."
- See more at: http://news.asiaone.com/news/singapore/33-singaporean-investors-cry-foul-over-land-buys-india?
=======================================
They sank their savings into undeveloped land in India, drawn by visions of gleaming villas, upcoming infrastructure and returns of more than 100 per cent. That was between 2007 and 2011.
Now, the 33 Singaporean investors - who spent more than $780,000 - own land of questionable value, which is hard to sell.
They are crying foul at Singapore-registered KMGM International which sold them the land.
They claim it has not been developed and has hardly risen in value. They want to sell it back.
About 20 of them staged a walk-in on May 5 to confront KMGM director S. Gulam at the firm's Bukit Merah premises, demanding assurances that they could sell back their land.
He was not there, but assured them by telephone that he would meet them on May 16 .
But on May 13 they received letters saying that the matter would be handled through his lawyers at Advaitha Law Corporation.
Advaitha director G.B. Vasudeven told The Sunday Times that his client was ready to obtain valuations for each of the investors' land parcels, but declined to disclose any further course of action. He added that he has written to the 33 to say that if they try to enter KMGM's offices again, they will be reported to the police as trespassers.
Twenty investors have since gone on to make police reports against KMGM. The group of 33 had bought 45 plots of land, each a few thousand sq ft in size, in Chennai .
They are mostly in their 50s and 60s, and they said they trusted KMGM because it is a Singaporean firm and its directors, lawyer R. Kalamohan and Mr Gulam, a former journalist, are well-regarded members of the Indian community.
Retired navy officer Anandam Thomas, 62, bought two plots of land for about $41,470 in 2008.
"My father was from India, and I wanted a little piece of India for myself," he said.
After payment, he and the other buyers were flown to Chennai to see the land and receive their sale deeds.
Last year and in April this year, he went back on his own to check and found the land was still undeveloped and occupied by squatters.
He said that after his attempts to sell the land back to KMGM failed, he decided to gather fellow investors in the same situation.
Mr Gulam, 54, told The Sunday Times by telephone that he was not out to cheat anyone and meant to help the investors sell the land.
However, he said it was impossible to sell it at a profit right now because the Indian rupee had fallen drastically in the last few years and the property market was in a slump.
He said: "When you invest overseas, you must take a risk.
"If you buy a house now and the price goes down, can you tell the developer you want your money back?"
Mr Kalamohan, 68, who left KMGM in 2014, said: "There was nothing more to sell and I was of no use to the company, so I thought it was time to leave."
He added that there was nothing wrong with the investors' documents, which he had examined, and all the purchases were valid.
Of the 45 contracts among the group, 24 had a clause guaranteeing they could sell the land back to the company after three years "at the best prevailing market price". However 27 contracts lacked a "patta", an Indian land ownership document.
New Delhi-based lawyer Alok Tewari, a senior partner with Indian law firm Kochhar & Co, said: "Legally it may be possible to sell the property without a patta. He added, however, that sometimes the authorities may demand to see a patta to register a sale deed.
Property experts said overseas landbanking is fraught with risk.
Mr Alan Cheong, Singapore research head for real estate firm Savills, advised investors to check whether the country's legal framework is solid and can be enforced even by an overseas national, as well as the reputation of the property agency marketing the product.
Retired civil servant Manokaran Ramasamy, 64, and his late wife spent $129,510 on four plots of land in 2008.
His wife died from cancer in March. He said all he wanted was some form of closure from KMGM.
"Even in the pain of her last days, she would go back to them to ask about selling the land. I don't understand why they didn't entertain her," he said.
"I don't think they can honour the agreement. They owe it to us to fill in the blanks."
- See more at: http://news.asiaone.com/news/singapore/33-singaporean-investors-cry-foul-over-land-buys-india?
Classic kum gong Singaporean, but from here you can see that many Sinkies are not rich, lost $40k like $4 million.
Hall marks of kum gong Sinkie "property investor".
1. Everything also "cheap cheap"
2. Always hear the word "reputable" only, straight away believe, just like many here, "reputable developer", "Sultan's Project / Approved"....wah wah...sure cannot go wrong.
3. Expect every property investment to appreciate, even when they buy in some boondocks.
4. Love to cry foul when things go wrong. Never blame their own stupidity.
After reading this article, you can substitute the word "India" with "Malaysia". Same kum gong folks in here too.
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Tell u la..one thing u dun know wan..even lawyers also dun know wan, in india, once squatters occupied the land, it is belong to them already. So they can kiss their land good buy.
That's why scammers from China and Nigeria love to target Singaporeans here. People here are so scared of the PAP government. They are controlled heavily and listen to authority. So when scammers tell Singaporeans they have committed a crime, or must remit money first, they obediently follow instructions. Many SG citizens, even some educated ones, don't have the skills to think properly.
On being screwed by property investments, yes. I've heard some say Sultan is there, billionaire is there, so-and-so developer is there, even SG government is there, it's safe to invest in Iskandar. What these investors don't think further is, those are business people. They can afford to lose that money. They have made mistakes before. Common investors may not afford play such a big game. And those people can switch their plans easily. Even Peter Lim has changed from residential development to healthcare. It says something. Common investors can't change their investment choices. Just one wrong mistake and their money could be stuck in Malaysia for a long time. Or maybe gone forever.
I'm not discouraging completely. I'm saying open your eyes wide. Some are sinking into quicksand but still delusional.
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I tell you something more scary. In Indonesia once the squatters move in, all the building materials in that property disappear.
Happen to my customer whose factory in outskirts of Surabaya. This factory produce the DVD base plates for a Japanese factory.
When the riots started many years ago, all the workers run back to Malaysia. When riots over, they went back, only the steel column left standing. Even the roof beams also they dismantle.
The Perils of Medini’s Phantom Rental Market
By Ed Cheong - June 2, 2016
Since the beginning of the year, there were more completion and handover of condominiums in Medini and Puteri Harbour. I have received some emails from Medini owners anxious of what to do next. They bought these houses as “investments” and there are now no returns in their foreseeable future.
Yes, Medini condo owners are facing the worst tough market. The market is thin. The locals are not here and neither are the foreigners. Amenities such as shopping and food outlets are scarce too.
To make things even worse, there are many more units coming on-stream. With almost all being SOHO or small and two bedroom units, potential tenants in Iskandar Puteri can really choose. It’s a huge supply dominating over small demand. Not much hope of great returns in this regard.
The fact is, these buyers were never going to live in Medini. They are Singapore-based investors. They don’t want to live there and can’t rent them out. Double Whammy! (A footnote to developers is never to sell property with hype.)
My prognosis on the whole is that the tenancy market is alive. But it’s mostly restricted to the higher-end landed property type. The clients are senior executives and business owners with children in the Educity and universities. In fact, I see prices of East Ledang bungalows rising in value rapidly soon because of diminishing supply of high-end investors.
Job generation of multinational companies in Iskandar Puteri is growing but it’s nevertheless starting from small base compared to the Klang Valley and Penang.
When you buy a property for rental alone, it is best to buy in a location where there is already hefty demand. But Medini is new. Buyers would have done better facing up to reality of opportunities and costs, honestly. If we follow the herd, we are part of the herd. There are no two-ways about it.
Another factor is that there are many new serviced apartments in the Medini vicinity. They are your competitors.
My best suggestion is that these owners find a use for their condominiums instead of waiting. Most units are just so well built with great views! They can for example use them as holiday homes or just storage units. Of course there is the Airbnb market. But a supply situation this large will dilute the market anyway.
Personally, I don’t like short term stay model as it creates an unpredictable quality of environment for owners and long term residents.
The progress of Medini is assured. The relevant planning and economic entities such as Medini Iskandar are sparing no efforts and they are focused to make Medini a vibrant metropolis as planned. I’m optimistic they know the situation and how jobs must be created and talents retained. But economic development is a mid-term target.
So, the next best thing to do really is to enjoy the high quality of living in Medini and surrounding Iskandar Puteri. For Singapore-based investors, a weekly sojourn is sufficient to enjoy the huge space and recreational opportunities available here.
Stay tough and optimistic. The good times will come back for sure.
http://www.theiskandarian.com/web/the-perils-of-medinis-phantom-rental-market/
By Ed Cheong - June 2, 2016
Since the beginning of the year, there were more completion and handover of condominiums in Medini and Puteri Harbour. I have received some emails from Medini owners anxious of what to do next. They bought these houses as “investments” and there are now no returns in their foreseeable future.
Yes, Medini condo owners are facing the worst tough market. The market is thin. The locals are not here and neither are the foreigners. Amenities such as shopping and food outlets are scarce too.
To make things even worse, there are many more units coming on-stream. With almost all being SOHO or small and two bedroom units, potential tenants in Iskandar Puteri can really choose. It’s a huge supply dominating over small demand. Not much hope of great returns in this regard.
The fact is, these buyers were never going to live in Medini. They are Singapore-based investors. They don’t want to live there and can’t rent them out. Double Whammy! (A footnote to developers is never to sell property with hype.)
My prognosis on the whole is that the tenancy market is alive. But it’s mostly restricted to the higher-end landed property type. The clients are senior executives and business owners with children in the Educity and universities. In fact, I see prices of East Ledang bungalows rising in value rapidly soon because of diminishing supply of high-end investors.
Job generation of multinational companies in Iskandar Puteri is growing but it’s nevertheless starting from small base compared to the Klang Valley and Penang.
When you buy a property for rental alone, it is best to buy in a location where there is already hefty demand. But Medini is new. Buyers would have done better facing up to reality of opportunities and costs, honestly. If we follow the herd, we are part of the herd. There are no two-ways about it.
Another factor is that there are many new serviced apartments in the Medini vicinity. They are your competitors.
My best suggestion is that these owners find a use for their condominiums instead of waiting. Most units are just so well built with great views! They can for example use them as holiday homes or just storage units. Of course there is the Airbnb market. But a supply situation this large will dilute the market anyway.
Personally, I don’t like short term stay model as it creates an unpredictable quality of environment for owners and long term residents.
The progress of Medini is assured. The relevant planning and economic entities such as Medini Iskandar are sparing no efforts and they are focused to make Medini a vibrant metropolis as planned. I’m optimistic they know the situation and how jobs must be created and talents retained. But economic development is a mid-term target.
So, the next best thing to do really is to enjoy the high quality of living in Medini and surrounding Iskandar Puteri. For Singapore-based investors, a weekly sojourn is sufficient to enjoy the huge space and recreational opportunities available here.
Stay tough and optimistic. The good times will come back for sure.
http://www.theiskandarian.com/web/the-perils-of-medinis-phantom-rental-market/
Golden Rules for Profitable Property Investment
By Daniel Gambero - May 4, 2016
Property is the best and safest asset for medium long term investment. Real Estate is a kind of asset which will appreciate during boom times and safely maintain its value during the doom ones. Of course there are properties which are delivering capital gains above average, others are fulfilling a good ROI (return on investment), special ones that are granting both positive effects and of course some that are poorly performing. There are no secret rules or special tricks to apply in having good and profitable property investment; it’s mostly a matter of using a lot of “common sense” and few basic golden rules or, in other words, applying the fundamentals of Propernomy.
Rule 1 – Perception and Reality
We can surely say that buying a property is an important decision that a person will take in his life. One should do a complete due diligence on the proposed property and its surroundings before putting down any kind of money. In development projects, there must always be a good demand driver that will help the future appreciation of your investment. A university, public transportation nearby, good accessibility, wide choice of amenities, and future developments in the proximity will surely help raise the values above average. In other words always check facts and numbers!
Rule 2 – Fully Understand Current and Future Market Situation
Everybody is now shouting that we are on the verge of a property bubble with an overwhelming supply flooding the market. Facts and numbers, again, are actually telling us the exact opposite. There has been an oversupply of high-end properties which will be absorbed by the market in the medium term. However, the supply of affordable homes has been for years and still is far behind the actual demand. Recent studies and elaboration of the property 2014 Market Report, released earlier this year by NAPIC, is clearly showing how supply of new affordable homes is and will remain for a long time unable to catch up with the demand. Affordable homes have very different values throughout Malaysia and are nowadays a highly hunted product.
Considering that 60% of the Malaysian population or 18,000,000 Malaysians are the core of the middle class, controlling a good 55% of the Malaysian wealth, we can determine that properties priced between RM200 to RM700 psf will be a target by their purchasing appetites now and for the next several years.
Published few weeks ago, the table below indicates the average values of affordable homes all around Malaysia. Concentrating our attention on the more sustainable property market, Greater KL and Klang Valley, we can say that residential properties priced between RM250,000 and RM850,000 (according to different areas of course) will remain a very good product for investors and will guarantee a good capital appreciation. Going a bit deeper into this analysis we can also estimate values and percentage of supply for the three main categories of homes offered to the 60% middle income earners. Following the numbers below, an investor can be rest reassured that his property will always have a good demand in terms of both purchasing and rental.
Rule 3 – Look for Demand Drivers
I always recommend our developer clients to build according to demand as purchasers would always ask, (before confirming their purchase) what the demand factors are and where they come from. The rule no. 2 is already elaborating on this point, but to give some specific examples I would suggest to carefully study the future alignment of MRT Line 2, LRT Line 3 and all the proposed corridors of 12 BRT lines proposed by SPAD in 2014.
We also need to look at the incoming High Speed Rail which will have one stop over in Putrajaya Sentral before hitting its final destination in Bandar Malaysia. Putrajaya Sentral, located almost in the middle of the Southern Corridor of Klang Valley, is poised to become an intermodal monster transportation nod with MRT Line 2 terminal station, KLIA transit and HSR stop over without mentioning the bus station which will serve local and regional routes. Demand will be there for long and for sure property values will go sky high with a good peace of mind in terms of purchasers and tenants for all kind of property investors.
In the next issue we will go through the second set of golden rules for property investors. If you have any queries or would like to comment and ask for further information, kindly contact Dr. Daniele Gambero, at: [email protected]
http://www.theiskandarian.com/web/golden-rules-for-profitable-property-investment/
By Daniel Gambero - May 4, 2016
Property is the best and safest asset for medium long term investment. Real Estate is a kind of asset which will appreciate during boom times and safely maintain its value during the doom ones. Of course there are properties which are delivering capital gains above average, others are fulfilling a good ROI (return on investment), special ones that are granting both positive effects and of course some that are poorly performing. There are no secret rules or special tricks to apply in having good and profitable property investment; it’s mostly a matter of using a lot of “common sense” and few basic golden rules or, in other words, applying the fundamentals of Propernomy.
Rule 1 – Perception and Reality
We can surely say that buying a property is an important decision that a person will take in his life. One should do a complete due diligence on the proposed property and its surroundings before putting down any kind of money. In development projects, there must always be a good demand driver that will help the future appreciation of your investment. A university, public transportation nearby, good accessibility, wide choice of amenities, and future developments in the proximity will surely help raise the values above average. In other words always check facts and numbers!
Rule 2 – Fully Understand Current and Future Market Situation
Everybody is now shouting that we are on the verge of a property bubble with an overwhelming supply flooding the market. Facts and numbers, again, are actually telling us the exact opposite. There has been an oversupply of high-end properties which will be absorbed by the market in the medium term. However, the supply of affordable homes has been for years and still is far behind the actual demand. Recent studies and elaboration of the property 2014 Market Report, released earlier this year by NAPIC, is clearly showing how supply of new affordable homes is and will remain for a long time unable to catch up with the demand. Affordable homes have very different values throughout Malaysia and are nowadays a highly hunted product.
Considering that 60% of the Malaysian population or 18,000,000 Malaysians are the core of the middle class, controlling a good 55% of the Malaysian wealth, we can determine that properties priced between RM200 to RM700 psf will be a target by their purchasing appetites now and for the next several years.
Published few weeks ago, the table below indicates the average values of affordable homes all around Malaysia. Concentrating our attention on the more sustainable property market, Greater KL and Klang Valley, we can say that residential properties priced between RM250,000 and RM850,000 (according to different areas of course) will remain a very good product for investors and will guarantee a good capital appreciation. Going a bit deeper into this analysis we can also estimate values and percentage of supply for the three main categories of homes offered to the 60% middle income earners. Following the numbers below, an investor can be rest reassured that his property will always have a good demand in terms of both purchasing and rental.
Rule 3 – Look for Demand Drivers
I always recommend our developer clients to build according to demand as purchasers would always ask, (before confirming their purchase) what the demand factors are and where they come from. The rule no. 2 is already elaborating on this point, but to give some specific examples I would suggest to carefully study the future alignment of MRT Line 2, LRT Line 3 and all the proposed corridors of 12 BRT lines proposed by SPAD in 2014.
We also need to look at the incoming High Speed Rail which will have one stop over in Putrajaya Sentral before hitting its final destination in Bandar Malaysia. Putrajaya Sentral, located almost in the middle of the Southern Corridor of Klang Valley, is poised to become an intermodal monster transportation nod with MRT Line 2 terminal station, KLIA transit and HSR stop over without mentioning the bus station which will serve local and regional routes. Demand will be there for long and for sure property values will go sky high with a good peace of mind in terms of purchasers and tenants for all kind of property investors.
In the next issue we will go through the second set of golden rules for property investors. If you have any queries or would like to comment and ask for further information, kindly contact Dr. Daniele Gambero, at: [email protected]
http://www.theiskandarian.com/web/golden-rules-for-profitable-property-investment/
Why Invest in Johor Now?
By Ed Cheong - May 4, 2016
Lately, there are plenty of negative news from declining growth numbers in many countries (especially China and Singapore) to declining investments, impaired currency exchange rates, lower commodity prices and increasing job losses.
The Star newspaper recently reported that Petronas Chemicals Group Bhd scrapped a giant elastomers project worth US$1.3bil as part of the Refinery and Petrochemicals Integrated Development (RAPID) project in Johor.
Moreover, although the Ringgit has regained some strength in the market (trading at 2.90 to the SGD), an oversupplied oil market and slower demand for fuel continue to pose great pressure on the currency.
So why invest in Johor now?
As the only state linked to the third largest financial centre in Singapore, Johor has been catching up with synergies long overdue. The good bilateral relation between Malaysia and Singapore established by the Prime Ministers of both countries has given Johor tremendous advancement momentum.
While other states in Malaysia suffer from lower trade receipts, tourism spending in Johor has increased with the strong Singapore dollar.
The state will also see better transportation links to Singapore in particular via the Causeway and second link. Both countries are meeting in June for their yearly leaders’ retreat which is expected to progress transportation links further. The MoU for high speed rail links has been reported to be signed then.
One more exciting prospect is having direct air links to China. This will begin soon between Senai Airport and Guangzhou, China. The AirAsia route will be expected to bring in thousands of wallet-padded Chinese tourists to Johor.
Johor also has a relatively low population density. With large growth in business, Johor will see a greater influx of workers and talent from other states in the near future. This new migrant population will need housing and services. It means existing home owners will see greater demand for rental returns.
Across the causeway, Singapore economy continues to restructure. Many companies both large and small will look to move operations to lower cost destinations. Johor with its vast land and good links will be the single biggest beneficiary. Many individuals especially Malaysians working in Singapore will look at Johor as the secondary home base either for recreation or retirement.
There has been little academic research on this future trend. But I am certain that Johor will be the first port of call for both companies and individuals alike.
I believe many buyers do not study enough the future housing demand for rental. Most buyers just buy what they can afford without evaluating other risks. This is logical but inadequate. Mass buying causes developers to react in reciprocation. For example, many small or mini apartments were sold in the last few years to cater to affordability. Sadly, equally many were returned to developers when fear set in.
You need to buy a good property when you can afford it. Migrant workers and retiring Malaysians will not live in small cramped apartments. Many prefer better quality homes which mean securing places with facilities in a good neighbourhood.
As prices continue to increase, it is still much better to buy earlier than later.
http://www.theiskandarian.com/web/why-invest-in-johor-now/
By Ed Cheong - May 4, 2016
Lately, there are plenty of negative news from declining growth numbers in many countries (especially China and Singapore) to declining investments, impaired currency exchange rates, lower commodity prices and increasing job losses.
The Star newspaper recently reported that Petronas Chemicals Group Bhd scrapped a giant elastomers project worth US$1.3bil as part of the Refinery and Petrochemicals Integrated Development (RAPID) project in Johor.
Moreover, although the Ringgit has regained some strength in the market (trading at 2.90 to the SGD), an oversupplied oil market and slower demand for fuel continue to pose great pressure on the currency.
So why invest in Johor now?
As the only state linked to the third largest financial centre in Singapore, Johor has been catching up with synergies long overdue. The good bilateral relation between Malaysia and Singapore established by the Prime Ministers of both countries has given Johor tremendous advancement momentum.
While other states in Malaysia suffer from lower trade receipts, tourism spending in Johor has increased with the strong Singapore dollar.
The state will also see better transportation links to Singapore in particular via the Causeway and second link. Both countries are meeting in June for their yearly leaders’ retreat which is expected to progress transportation links further. The MoU for high speed rail links has been reported to be signed then.
One more exciting prospect is having direct air links to China. This will begin soon between Senai Airport and Guangzhou, China. The AirAsia route will be expected to bring in thousands of wallet-padded Chinese tourists to Johor.
Johor also has a relatively low population density. With large growth in business, Johor will see a greater influx of workers and talent from other states in the near future. This new migrant population will need housing and services. It means existing home owners will see greater demand for rental returns.
Across the causeway, Singapore economy continues to restructure. Many companies both large and small will look to move operations to lower cost destinations. Johor with its vast land and good links will be the single biggest beneficiary. Many individuals especially Malaysians working in Singapore will look at Johor as the secondary home base either for recreation or retirement.
There has been little academic research on this future trend. But I am certain that Johor will be the first port of call for both companies and individuals alike.
I believe many buyers do not study enough the future housing demand for rental. Most buyers just buy what they can afford without evaluating other risks. This is logical but inadequate. Mass buying causes developers to react in reciprocation. For example, many small or mini apartments were sold in the last few years to cater to affordability. Sadly, equally many were returned to developers when fear set in.
You need to buy a good property when you can afford it. Migrant workers and retiring Malaysians will not live in small cramped apartments. Many prefer better quality homes which mean securing places with facilities in a good neighbourhood.
As prices continue to increase, it is still much better to buy earlier than later.
http://www.theiskandarian.com/web/why-invest-in-johor-now/
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