Property News

[xebay11]

What rules are different for Malaysian citizens vs foreigners for self-stay? Do you mean the huge sum of Rm20k?

What I mean is for Oz, as foreigner you can only buy new, or buy land and build you cannot buy established homes. Buying established homes usually mean better locations and better price. I am buying in Oz without FIRB rules.

 

[FHBH12]

2016 will be “the worst year for Malaysian property”, says expert
Dec 24, 2015

Investment guru Datuk Gavin Tee expects 2016 to be “the worst year for Malaysian property” on the back of weaker economic growth, loss of pricing power and subdued financing, reported The Malaysian Reserve.

“2015 was bad, and 2016 will be worse,” said Tee, founder and President of SwhengTee International Real Estate Investors Club, at a recent briefing in Kuala Lumpur.

“I’ve travelled all over the region, speaking to ministers, developers, investors and the media. The feedback (on Malaysia) is something you don’t want to hear.”

Notably, property prices within the secondary market fell 15 percent this year due to weaker demand and the absence of speculators.

As such, Tee expects prices to drop even further compared to the past few years as buyers do not foresee significant positive changes in the first half of 2016.

And while property prices may not go back to the levels seen in 2009 and 2010, they will be at their lowest for the next eight years, he noted.

Lower prices, however, will not translate to more sales for developers given the slowing demand for property.

“Demand is low in the sense that there is lower foreign investment and job creation, lower purchasing ability from Malaysians, as well as the poor economic and political situations,” shared Tee.

A bigger dilemma is the high loan rejection rates, which stands at over 50 percent for KL-based properties and 80 percent for Iskandar-based properties.

Tee said that the Malaysian government should relax the cooling measures and take more steps to make it easier for investors to acquire property.

He added that if financing policies do not change, the government would not be killing the Malaysian property sector but the “Malaysian pockets”.

“If you make it difficult for local investors, the wealth will transfer to foreign hands,” he said.

Mangalesri Chandrasekaran, Editor at PropertyGuru Malaysia, edited this story. To contact her about this or other stories email [email protected]

www.propertyguru.com.sg/property-ma...ill-be-the-worst-year-for-malaysian-property#

 

[cow138]

Only time can tell.
Think the problem is loan approval.
The approval rates by the banks are pretty bad.

 

[UsernameX]

all my loans no issues. likely most buyers income too low or too overleveraged

 

[mpan12]

Loans rejected may not only be because of pay too low or over leveraged. Certain regions, like Iskandar, are high risks for investments. I think many Malaysian banks simply loaned to investors who had rushed in to buy in 2013 based on "herd mentality".

It was Maybank Malaysia who raised the alarm this year about the huge oversupply of Iskandar properties that every bank suddenly woke up. So they are now extremely careful and strict who are qualified for the loans.

I would easily imagine in a few years time, many completed properties in Iskandar would be vacant due to no owner presence, no tenant and unsold units. As quickly as buyers rushed in to buy back in 2013, come 2017 or so, we could be seeing many owners dumping their properties after realising it's a lose-money investment. The Malaysian banks would be in trouble. Interesting to see what happens then....

2016 may not be the worst yet. 2018 could see a catastrophic drop in property prices in Iskandar.

 

[enjoylife77]

Anyone thinking of profiting from JB/Iskandar property, one must buy during crisis coupled with a sharp drop in RM$. As always when the crisis blow over, the profit will surfaced.

 

[LordElrond]

Choppy waters ahead indeed... hang on tight. Apart from the corrupt govt chalking up year after year of deficit, there are 2 other factors. 1) Secondary market sale to foreigners, who otherwise find it cheap, is very difficult as the approval process has gotten longer and harder 2) Singapore's govt deliberate control to slow down movement both ways rendering it impossible for daily commute "beggar thy neighbor policy"

 

[FHBH12]

The population in Johor is still quite young and increasing at about 2% per year. Hence the demand for housing is definitely there but the price has surged beyond the affordability of most young generation in their 20-30s. There is not a lot of property launches this year so market will find its equilibrium in 2016-2017.

If the custom traffic is as smooth as the past 1-2 days, property demand from Singapore will surge i.e. 1-2 hours extra of travelling for half the cost of living and bigger space are very attractive. But we know it is not possible from the next few days onward when the jam returns

 

[xebay11]

Anyone thinking of profiting from JB/Iskandar property, one must buy during crisis coupled with a sharp drop in RM$. As always when the crisis blow over, the profit will surfaced.

Not really, please do not take Singapore as an example and extrapolate, there are a few factors where JB/Iskandar is different, first is maintenance, Johor properties are more vulnerable to bad maintenance, especially condos, so while condo owners wait for prices to rise, the property condition deteriorates, worse than Singapore property second factor is land, Johor still has lots of land for making new Taman and new developments so when the property markets pickup, buyers would go for new developments, just ask yourself will you go for new development or old one, when you buy?

So in the end, even with price increases and factoring high interest rates and falling RM, there is very little returns if any, for Singaporeans when the market improves.

 

[RedsYNWA]

Choppy waters ahead indeed... hang on tight. Apart from the corrupt govt chalking up year after year of deficit, there are 2 other factors. 1) Secondary market sale to foreigners, who otherwise find it cheap, is very difficult as the approval process has gotten longer and harder 2) Singapore's govt deliberate control to slow down movement both ways rendering it impossible for daily commute "beggar thy neighbor policy"

I dont think the SG govt has deliberately slowed down the movement of people. As an example, Shanmugam's checkpoint visit has worked wonders, and the counters are really at least 90% opened now, compared to say 60% previously. Checks are also a lot faster now.

Credit should also go to Johor DAP too, for trying to blow this up as a cross-border ministerial issue.....

 

[cow138]

Sometimes the govt departments needs a kick in the ass..
Hopefully the coordinating ministers will be able to keep the govt officers in line.
Seems like LHL might not be able to do it on its own

 

[FHBH12]

I dont think the SG govt has deliberately slowed down the movement of people. As an example, Shanmugam's checkpoint visit has worked wonders, and the counters are really at least 90% opened now, compared to say 60% previously. Checks are also a lot faster now.

Credit should also go to Johor DAP too, for trying to blow this up as a cross-border ministerial issue.....

Festive season offer only. While stocks last.

 

[Frodo]

I dont think the SG govt has deliberately slowed down the movement of people. As an example, Shanmugam's checkpoint visit has worked wonders, and the counters are really at least 90% opened now, compared to say 60% previously. Checks are also a lot faster now.

Credit should also go to Johor DAP too, for trying to blow this up as a cross-border ministerial issue.....

This is not the new norm. Exception nia because minister come see see look look. Things will be pretty much back to the old normal of 2 hour long jams...oh wait...minister said jams won't exceed 3 hours...darn...cannot complain liao as he already covered this...He win liao...we whine liao...

 

[jasonjst]

Only time can tell.
Think the problem is loan approval.
The approval rates by the banks are pretty bad.

I think the problem is not low loan approval . It is more of "uncertainty in their policies , especially against foreigner investor and even foreigner home owner ". Just remember there are many people in this forum with million of dollar sitting in the bank and Singapore will be land of millionaire come 2030 .
Don't belief , get the PM and Sultan to lower the one million limit for foreigner purchase and assured investors no change of policy that will disadvantage foreigner for next 30years ~ 50years . Let see market hot or not . ( Must be in black and white , otherwise people wont belief them ).
Remember investor hate uncertainty , they are not afraid of cheap or expensive lah .

 

[xebay11]

I think the problem is not low loan approval . It is more of "uncertainty in their policies , especially against foreigner investor and even foreigner home owner ". Just remember there are many people in this forum with million of dollar sitting in the bank and Singapore will be land of millionaire come 2030 .
Don't belief , get the PM and Sultan to lower the one million limit for foreigner purchase and assured investors no change of policy that will disadvantage foreigner for next 30years ~ 50years . Let see market hot or not . ( Must be in black and white , otherwise people wont belief them ).
Remember investor hate uncertainty , they are not afraid of cheap or expensive lah .

You are absolutely correct.

 

[Frodo]

I think the problem is not low loan approval . It is more of "uncertainty in their policies , especially against foreigner investor and even foreigner home owner ". Just remember there are many people in this forum with million of dollar sitting in the bank and Singapore will be land of millionaire come 2030 .
Don't belief , get the PM and Sultan to lower the one million limit for foreigner purchase and assured investors no change of policy that will disadvantage foreigner for next 30years ~ 50years . Let see market hot or not . ( Must be in black and white , otherwise people wont belief them ).
Remember investor hate uncertainty , they are not afraid of cheap or expensive lah .

Lets say this happened, and many people flock in to buy. Will these buyers still be looked upon as herd mentality and foolish to throw money into JB because of crime rate and low condo maintenance etc etc aka the usual criticisms about JB properties?

 

[xebay11]

Lets say this happened, and many people flock in to buy. Will these buyers still be looked upon as herd mentality and foolish to throw money into JB because of crime rate and low condo maintenance etc etc aka the usual criticisms about JB properties?

It is all about stability. If there is stability going in to buy is not foolish. Simple as that. Stability in policies will lead to steady growth.

 

[jasonjst]

Lets say this happened, and many people flock in to buy. Will these buyers still be looked upon as herd mentality and foolish to throw money into JB because of crime rate and low condo maintenance etc etc aka the usual criticisms about JB properties?

The "smart money" will buy and sell to the "herd mentality" the 70% who belief the Shit Times news . By then Shit Times and CNA will flash news on how Ah Moh , Uncle and Aunty make it big in Iskandar . Just like what they did in one , two year ago .

Robbers or no robbers not important , all become Robert

 

[xebay11]

http://www.propertyguru.com.sg/property-management-news/2015/12/113634/2016-will-be-the-worst-year-for-malaysian-property?utm_content=bufferbca49&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer

Revenge is sweet for those that mocked me, at least 8 years or more for the long haul and don't look back to Bukit Indah days, the market very different then.

 

[eric3417]

So it's all abt Revenge..... Zzz