Property News

[xixxix]

Johor is too busy running around changing town names.

No matter how bad the situation is in JB or Malaysia, there will be those who think that it is a million times better than Singapore or sinkie land.

 

[cow138]

There's a definite slow down.
But long term trend still looks valid.
It's not to say that projects won't get shelved.
But that's always being the way it is in Malaysia. Grand ideas have a way of petering out.
That's why the price differential between singapore and malaysia.

So investments in Malaysia is something definitely not for the faint hearted.

 

[enjoylife77]

Few months ago, there was a ST article about a Sg family who bought a house in JB for RM250,000 some 20 years ago. Today the house is worth RM600,000. If they were to sell it, do you think they will see decent profit?

 

[cow138]

If buy so long ago and if it's a good location should be able to make some nice profit

 

[sgcount]

Few months ago, there was a ST article about a Sg family who bought a house in JB for RM250,000 some 20 years ago. Today the house is worth RM600,000. If they were to sell it, do you think they will see decent profit?

If the family sells the house, I don't think they will have decent profit. Maybe it could even be a loss, depending on what they do with it.

I don't have the data for the exchange rate 20 years ago. But assuming what malpaso says is correct, S$1 = RM1.6.

So in 1995, the house cost S$156,250. In 2015, the house cost S$200,000. Difference in price is +S$43,750.

But if the family took a bank loan to buy the house, the mortgage interest will reduce the amount "earned" drastically. Could be negative returns. Rental I assume is not fantastic either in JB. Even if it is positive, to earn say S$10-30k after 20 years is really too little.

Moreover, for investments, 20 years is a long time. It's high risk to wait that long hoping that things will change for the better.

Anyway, the example given above is a long time ago. For the present new property areas in JB (including Iskandar), most prices are already too high by Malaysia's standard (I only realize it this year). I reasoned previously it's possible the developers priced it that way was likely due to the cooling measures in Singapore and many Singaporeans flocked over to dump money there, thinking it's an alternative form of property investment away from home.

So the property price appreciation in the next 1 or 2 decades may not be significant. Don't forget the huge oversupply also. Of course, we can't predict the future. But it's very high risk to assume much. For eg, some think more people from Singapore will eventually go over to live in JB/Iskandar. But even with lack of detailed data, the numbers crossing over from Singapore to live in Iskandar (if ever they do) are just not huge enough to support the residential oversupply.

 

[FHBH12]

If the family sells the house, I don't think they will have decent profit. Maybe it could even be a loss, depending on what they do with it.

I don't have the data for the exchange rate 20 years ago. But assuming what malpaso says is correct, S$1 = RM1.6.

So in 1995, the house cost S$156,250. In 2015, the house cost S$200,000. Difference in price is +S$43,750.

But if the family took a bank loan to buy the house, the mortgage interest will reduce the amount "earned" drastically. Could be negative returns. Rental I assume is not fantastic either in JB. Even if it is positive, to earn say S$10-30k after 20 years is really too little.

Moreover, for investments, 20 years is a long time. It's high risk to wait that long hoping that things will change for the better.

Anyway, the example given above is a long time ago. For the present new property areas in JB (including Iskandar), most prices are already too high by Malaysia's standard (I only realize it this year). I reasoned previously it's possible the developers priced it that way was likely due to the cooling measures in Singapore and many Singaporeans flocked over to dump money there, thinking it's an alternative form of property investment away from home.

So the property price appreciation in the next 1 or 2 decades may not be significant. Don't forget the huge oversupply also. Of course, we can't predict the future. But it's very high risk to assume much. For eg, some think more people from Singapore will eventually go over to live in JB/Iskandar. But even with lack of detailed data, the numbers crossing over from Singapore to live in Iskandar (if ever they do) are just not huge enough to support the residential oversupply.

Given that developers are seeing their margins squeezed with some going into losses, current pricing is about the subsistence threshold. Landed properties are still very expensive by local standard but many other things are expensive as well. Many condos outside the international zones are still quite affordable for the locals. Houses are only cheap with government subsidies e.g. PR1MA and HDB.

 

[potter]

Few months ago, there was a ST article about a Sg family who bought a house in JB for RM250,000 some 20 years ago. Today the house is worth RM600,000. If they were to sell it, do you think they will see decent profit?

RM250k is super overpaid 20 yrs ago in mly!!
Another 100k for state consent if i not wrong.

 

[whoami]

Few months ago, there was a ST article about a Sg family who bought a house in JB for RM250,000 some 20 years ago. Today the house is worth RM600,000. If they were to sell it, do you think they will see decent profit?

If were to convert to $inkie currency, then wont make much difference be it M$600k or M$250k

 

[dumb1]

Few months ago, there was a ST article about a Sg family who bought a house in JB for RM250,000 some 20 years ago. Today the house is worth RM600,000. If they were to sell it, do you think they will see decent profit?

As a Malaysian, surely the buyer is very happy.

But if the buyer is a Singaporean, there is no real joy when he re-convert his investment back to $ today. He would have been much better off had he invested in Singapore 20 years back.

 

[Matahari]

If Najib can break his promise to Mahathir on the crooked bridge, i am sure he can do anything and everything else.

I guess even Mahathir himself didnt see that coming..

 

[enjoylife77]

Just to share a clip about retiring in Malaysia aired 1+ year ago.

Youtube.com >>>>>>>>> Get Real. The Johor Bahru Retirement Plan.

Very interesting.

 

[Relaxman]

Welcome our new AEON Jusco at BDO! Expected to complete around end 2016. Congrats to BDO house owners.

 

[FHBH12]

AEON is expanding rather aggressively in this area. At 5 storey, it seems to be bigger than Bukit Indah's Aeon that is only 3 storey. This could be more convenient for cars from Singapore to reach compared to Tebrau's Aeon via EDL. Add a cinema and build more shoplots selling specialty food or services, this area will bloom very well.

 

[FHBH12]

New landed launch but very small built up/floor area and at a very far location from 1st link

Developed by Yukong Development Pte Ltd, a subsidiary of I&P Group, the 174 units of 2-storey terraced house has built-ups ranging from 1,710 sq ft to 2,006 sq ft. The freehold development is located in Ulu Tiram, Johor, 19km away from Joho Baru. The nearby amenities of this gated and guarded development include Mydin Hypermarket, shopping malls and a hospital.

Start Date:
Saturday, September 5, 2015
End Date:
Saturday, September 5, 2015
Venue:
Pelangi Indah Sales Gallery, Taman Pelangi Indah, Johor Baru
Opening Times:
10am-5pm
Organizer:
Yukong Development Pte Ltd

 

[Relaxman]

AEON is expanding rather aggressively in this area. At 5 storey, it seems to be bigger than Bukit Indah's Aeon that is only 3 storey. This could be more convenient for cars from Singapore to reach compared to Tebrau's Aeon via EDL. Add a cinema and build more shoplots selling specialty food or services, this area will bloom very well.

Out of the 5 storeys, 2 are for car parks. It may become the next Desa Tebrau in future. Good for property value there.

 

[Relaxman]

New landed launch but very small built up/floor area and at a very far location from 1st link

Developed by Yukong Development Pte Ltd, a subsidiary of I&P Group, the 174 units of 2-storey terraced house has built-ups ranging from 1,710 sq ft to 2,006 sq ft. The freehold development is located in Ulu Tiram, Johor, 19km away from Joho Baru. The nearby amenities of this gated and guarded development include Mydin Hypermarket, shopping malls and a hospital.

Start Date:
Saturday, September 5, 2015
End Date:
Saturday, September 5, 2015
Venue:
Pelangi Indah Sales Gallery, Taman Pelangi Indah, Johor Baru
Opening Times:
10am-5pm
Organizer:
Yukong Development Pte Ltd

How much is it? Around RM650K? I think Austin Duta will be a better choice.

 

[dumb1]

http://www.propertyguru.com.sg/prop...pore-ranks-3rd-for-residential-property-inves


Singapore has emerged as the world’s third-best market to invest in residential property, according to a new report by Savills.


“When a growing population, growing affluence and limited housing or land supply converge, we would anticipate real house price growth. The absence of one or more of these variables can stall a housing market and the absence of two or more can send property values downward.”

Sg definitely got limited land supply. Sg pop going to 6.9m. With more and more investing overseas, you decide whether Sg got growing affluence.

 

[kawan2sgmy]

20 odd years ago, 5-rm AMK HDB was selling at around S$170K, now it's selling abt 650-680K. Big capital appreciation!
20 yrs ago, assuming M'sia house was bought for RM250K (exchange rate S$1 to RM1.70 = S$147K)
Now sold at RM600K (exchange rate S$1 to RM3 = S$200K). Not much profit made.
If exchange rate had remain the same, the profit would be slightly better, but still lose out to S'pore property.
But if leave the proceeds of RM600K to earn M'sian FD interest at 3.45%, is it a good decision?
Is FD interest earned in M'sia free from tax?
But will the ringgit go down further? then it will wipe out all the interest earned!

But if the buyer is a Singaporean, there is no real joy when he re-convert his investment back to $ today. He would have been much better off had he invested in Singapore 20 years back.

 

[xebay11]

20 odd years ago, 5-rm AMK HDB was selling at around S$170K, now it's selling abt 650-680K. Big capital appreciation!
20 yrs ago, assuming M'sia house was bought for RM250K (exchange rate S$1 to RM1.70 = S$147K)
Now sold at RM600K (exchange rate S$1 to RM3 = S$200K). Not much profit made.
If exchange rate had remain the same, the profit would be slightly better, but still lose out to S'pore property.

Don't dwell on the past, going forward you think new hdb flats can make these sort of capital appreciation? Also where would the family of the AMK HDB go and stay after selling off their flat?

 

[cow138]

The exchange rate conundrum is making investments in Malaysia a dicey affair.
Everyday there's news of political unrest, demonstrations and economic slowdown.
Indecision from govt officials on new policies is creating a lot of uncertainties which businesses just don't like.

No clear sign of progress of govt led projects. No unified direction.
Guess investors might have to wait till 2018 elections to guess what's the outcome for the country.
Wonder what will be up Najib sleeve then.