Property News

[Investor888]

Just had lunch at Puteri Harbour with a business associate whom I recommended to buy a semi d factory in I-Parc. He was on 100% loan for the first 2 years when the exchange rate was RM 2.70.. Can you imagine how lucky he was when he paid his factory in full after using Sing dollars to change back to Ringgit at RM 3.10. Now his factory ( about 20-30 cars can be parked outside ) is all his and he can focus on generating business on lower expenses ( he shipped his items to Singapore and earn Sing dollars by the way ) and he is Taiwanese.

Donno why.. so far the Singaporeans I know do not dare to venture out of Singapore much and every year after Budget announcement by the blood sucking PAP minister, they will all whine online. Some of course will keep putting down on Malaysia la, indoland and Pinoyland etc. Many I believe don't even have a passport.

 

[cow138]

Yes. Generally that's the case
It's just that the Singapore govt has made things too comfortable for people to dare to venture out.
Takes a lot to change the mindset

 

[snowbird]

Just had lunch at Puteri Harbour with a business associate whom I recommended to buy a semi d factory in I-Parc. He was on 100% loan for the first 2 years when the exchange rate was RM 2.70.. Can you imagine how lucky he was when he paid his factory in full after using Sing dollars to change back to Ringgit at RM 3.10. Now his factory ( about 20-30 cars can be parked outside ) is all his and he can focus on generating business on lower expenses ( he shipped his items to Singapore and earn Sing dollars by the way ) and he is Taiwanese.

Donno why.. so far the Singaporeans I know do not dare to venture out of Singapore much and every year after Budget announcement by the blood sucking PAP minister, they will all whine online. Some of course will keep putting down on Malaysia la, indoland and Pinoyland etc. Many I believe don't even have a passport.

For every success story, there will always another few failures to match otherwise the whole world will be full of Li ka Shings and Bill Gates, then who will drive the buses and who will teach the children in schools?
Success is not how many cars you drive, how many properties you own and when you think you've arrived with a few properties in some remote places, someone will up against you with more in better locations.
How you measure success?
Are you more successful than the next guy?

In every country, there will be always a large group of working class.
They can be civil servants, business owners, technicians, service providers, etc. who are happy doing their job day after day, providing for their families.
And they can be a happy lot.
And you have no right to suggest that they are stupid just because they did not venture out of the country and your joy to keep putting down on other Singaporeans is being denied here!
Go away!

 

[Investor888]

For every success story, there will always another few failures to match otherwise the whole world will be full of Li ka Shings and Bill Gates, then who will drive the buses and who will teach the children in schools?
Success is not how many cars you drive, how many properties you own and when you think you've arrived with a few properties in some remote places, someone will up against you with more in better locations.
How you measure success?
Are you more successful than the next guy?

In every country, there will be always a large group of working class.
They can be civil servants, business owners, technicians, service providers, etc. who are happy doing their job day after day, providing for their families.
And they can be a happy lot.
And you have no right to suggest that they are stupid just because they did not venture out of the country and your joy to keep putting down on other Singaporeans is being denied here!
Go away!

Don't worry. Most Sinkies businessmen will never fail in Malaysia because they have never started over there.

I went to Iskandar after selling off my overpriced industrial units at over-inflated prices ( with some profits though not a lot.. but when converted to ringgit it makes senses )

Of course I was ridiculed everywhere but I just shrugged it off. Now I had the last of all laughs, along with my industrial neighbours. Everything is so cheep cheep here compared to Singapore, who is increasing water bills by 30%. I am paying about S$100 water bills for my units monthly in Malaysia. In Singapore I rem my water bills was like $500 easily. Life is hard for me when I was slogging in Singapore but thanks to the PAP who drive me out, I never look back. With the RM 20 VEP and S$6+ RRP ( Revenge Road Pricing ), the jam is much lesser during working hours and that improves our logistics speed by a lot!

 

[Manhattan]

Can share what kind of businesses make sense to be operated from Johor? Any issue with hiring skilled workers?

 

[snowbird]

Don't worry. Most Sinkies businessmen will never fail in Malaysia because they have never started over there.

I went to Iskandar after selling off my overpriced industrial units at over-inflated prices ( with some profits though not a lot.. but when converted to ringgit it makes senses )

Of course I was ridiculed everywhere but I just shrugged it off. Now I had the last of all laughs, along with my industrial neighbours. Everything is so cheep cheep here compared to Singapore, who is increasing water bills by 30%. I am paying about S$100 water bills for my units monthly in Malaysia. In Singapore I rem my water bills was like $500 easily. Life is hard for me when I was slogging in Singapore but thanks to the PAP who drive me out, I never look back. With the RM 20 VEP and S$6+ RRP ( Revenge Road Pricing ), the jam is much lesser during working hours and that improves our logistics speed by a lot!

Successful Singaporeans make SG dollars in SG and lots of it.
However some unsuccessful Singaporeans who had failed in competitive SG came over to MY try their luck here.
You are probably just one of them, nothing to be proud of.
Really successful people don't go around bragging over and over again of their achievement and successful people also don't talk about petty things like water bills savings.

 

[winners]

Successful Singaporeans make SG dollars in SG and lots of it.
However some unsuccessful Singaporeans who had failed in competitive SG came over to MY try their luck here.
You are probably just one of them, nothing to be proud of.
Really successful people don't go around bragging over and over again of their achievement and successful people also don't talk about petty things like water bills savings.

Aiya, don't believe a word from him lah. He's most likely a Malaysian (and SPR), having milked enough from the SInkies. He only knows how to blah, blah, blah, buying from Malaysia and selling to Sinkies for 300% profit. Now, even his so-called friend from Taiwan is also doing the same. I've heard too much of this same kind of stories from him already, like a broken record.

 

[AHGS14]

KUALA LUMPUR: Six suspects held by the Malaysian Anti-Corruption Commission (MACC) over land scandal cases in Johor had allegedly also conspired with housing developers to convert houses allocated for bumiputra to non-bumiputra status fraudulently, depriving the latter from owning their own property.

Sources said the misdeeds were done as non-bumiputra houses fetched higher prices, enabling the developers and the suspects to rake in bigger profits.

MACC investigators learnt that the rogue developers had allegedly concealed the 30% quota of properties allocated for bumiputra by registering these houses under the names of its own staff who are bumiputra.

Potential bumiputra buyers, who are keen on acquiring these properties, are then told the units have been sold out.

Sources said at the end of the property sales period, on the excuse the bumiputra houses were unsold, the developer would make applications to the state government requesting for the status of such properties be open for sale to non-bumiputra.

As required by the law, the conversion of status entails a penalty of about 7% imposed by the state government where the fine is channelled to a fund meant for the upgrading of facilities at housing estates.

However, MACC investigators learnt that such fines were siphoned by the suspects and only a part of it was channelled to the fund.

Investigators discovered that the scam involved several developers in Johor and had been actively going on since 2013.

"The actions of these errant developers and suspects have affected those who genuinely intend to buy their own property. Not just those with bumiputra status, but the middle-income public is also affected by this fraud," sources said.

MACC deputy chief commissioner (operations) Datuk Azam Baki said they are carrying out a search for relevant documents that can shed more light into the case at the offices of the suspects.

He said it is likely more suspects will be picked up.

A 25-year-old man, who is the son of a state executive councillor and the latter's special officer, was among six people arrested in simultaneous raids in Johor Baru on Saturday.

Two developers, a lawyer and a sixth unidentified individual were the others held.

The suspects, aged between 25 and 50, are in custody under a remand order.

A tip-off led to the suspects, who are believed to have lowered the premium of land approved for housing and industrial projects.

The MACC seized 21 luxury cars, five high-powered motorcycles, about RM500,000 in cash, including foreign currencies, and also froze 45 bank accounts of the suspects involving deposits of about RM15.5 million.

- The Sun Daily

 

[cow138]

Good. Clamp down on such nonsense.

 

[RedsYNWA]

Good. Clamp down on such nonsense.

Actually there are more active Malaysians than Singaporeans in this forum.

1 group hopes to sell high to Singaporeans, while the other waits for years for durians to drop........hahaha

 

[FHBH12]

Ghost Towns Rising in Malacca
• March 1, 2017

Rapid development in Malacca has resulted in an oversupply of commercial properties, made evident by the stretches of vacant shophouses, reported the New Straits Time.

In fact, the news agency confirmed that rows of such properties remain unoccupied in Klebang, Jasin Bestari, Pulau Melaka, Kota Laksamana and Taman IKS Merdeka.

There was even a former resident who migrated to Kuala Lumpur who sold her shop lot in Pulau Melaka for a loss due to the difficulty of finding tenants.

“I bought the property sometime in the mid 1990’s and [it] has been vacant since. There were many attempts to get people to rent but they did not want to risk it as other nearby shop lots were also vacant,” said 80-year-old Yaw Sing Kiu.

Given the need to pay over RM2,000 in assessment fees twice per year for the property, she decided to dispose the unit about 10 years later for RM200,000 even though she bought it for RM300,000, and this was excluding agency fees.

According to a registered valuer who wants to remain anonymous, the delayed construction of some major projects in the state capital have negatively affected the rental market for such units.

“An example would be the development of a theatre, Impression Melaka. It is, however, not ready yet so the growth of the surrounding area will not be as fast as projected.”

Another factor that led to the glut of shophouses is Malaysia’s economic growth of less than six percent. “Generally, the demand for shop lots will be good when the growth of the gross domestic product (GDP) is six percent or more” he said.

In addition, the Real Estate and Housing Developers’ Association (REHDA) revealed that the oversupply of commercial units can also be attributed to the 40 percent Bumiputera quota required by the state government.

“We believe there is a demand from non-Bumiputeras if the shophouses could be released to them,” said Datuk Ngoh King Hua, Chairman of REHDA’s Malacca branch.

Meanwhile, there are big property developments at Kota Melaka in Malacca that have been abandoned for a long time, said the area’s Member of Parliament Sim Tong Him.

“The multiple-storey Bachang Mall in Kampung Lapan is abandoned and Plaza Melaka at the Gajah Berang junction has been abandoned since 1990s.”

Other large projects in the state that remain uncompleted include Pacific Inn in Tengkera, Hotel Merak Pantai Puteri, Explanade Condominium in Klebang and Melaka Village Paradise Resort in Ayer Keroh.

Regarding this, Chief Minister Datuk Seri Idris Haron stated last month that he would do something to revive these abandoned projects.

Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email [email protected]

http://www.propertyguru.com.my/property-news/2017/3/147509/ghost-towns-rising-in-malacca

 

[FHBH12]

Home Prices to Fall as Recession Hits in 2018
• March 2, 2017

In light of the recession set to hit Malaysia by 2018, economic affairs analyst Prof Hoo Ke Ping expects prices of medium and high-end residential properties to fall as it becomes harder for property speculators to secure bank loans, reported Free Malaysia Today.

Since 1960s, the country has witnessed a recession almost every decade, noted Hoo.

He revealed that the recession in the early 60’s was caused by global rubber prices, by the ringgit crash in 1967, and by global rubber prices in 1970. The recession in the 80s was caused by a property crash and outflow of funds, while that in the 1990s was due to a currency crash.

“In 2008, we experienced another recession but we managed to pull through very quickly. The 2018 recession is expected to hit almost all sectors,” added Hoo.

With this, the next two-and-half years may be the best time to acquire a medium to high-end home.

This is because the property market had begun to show signs of easing six months ago after speculators failed to secure tenants or buyers or bank loans for their properties.

In fact, a condominium unit priced at RM500,000 in 2012 is now going for RM420,000, while some homes are almost RM100,000 cheaper, said Hoo.

He attributed the hike in property prices to Bank Negara’s delay in curbing property speculators from acquiring and selling homes under the Developer Interest Bearing Scheme, in which the “willing buyer willing seller” concept is exercised.

In 2012, Bank Negara finally introduced stricter regulations on market speculators. The delay, however, had resulted to a property bubble with artificially inflated property prices.

As the fake demand spurred developers into building more homes, around 1,000 houses in Penang, 3,000 in Johor Bahru and 6,000 in the Klang Valley would be left vacant.

To overcome the fake demand, Hoo urge Bank Negara to tighten bank loans for property developers in order to force them to sell completed housing units at a cheaper price.

“Most of them built the properties in 2013, when the prices were still inflated. Even if they sell the remainder of their unsold units at a cheaper price, they will still make money.”

Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email [email protected]

http://www.propertyguru.com.my/prop...home-prices-to-fall-as-recession-hits-in-2018

 

[FHBH12]

Property Glut on the Rise in Pahang
• March 2, 2017

The vacant office buildings and the rows of unoccupied shoplots in Pahang underscore that many business owners there are unwilling to pay high rent amid lacklustre market conditions, reported the New Straits Times.

According to the Real Estate and Housing Developers Association (REHDA), many landlords are unable to lease their properties to budget-conscious tenants, with the monthly rental for ground floor units amounting to RM3,000, and RM5,000 for three-storey commercial blocks.

Chua Say Chai, Chairman of REHDA’s Pahang branch, said the weak rental property market in the state is a reflection of Malaysia’s sluggish economy.

“The situation started after the implementation of the Goods and Services Tax (GST) in April 2015,” which resulted in a significant increase in the prices of construction materials, and the cost was further pushed up by the softer ringgit. As a result, developers in the state adopted a more cautious stance in rolling out commercial developments.

To avoid an oversupply of commercial units, the state government advise developers to take into account the current market conditions before actually building their properties.

“Developers must be more careful and carry out detailed market studies before undertaking projects to prevent [property] glut and inability to sell,” urged Datuk Wan Rosdy Wan Ismail, Chairman of state Housing and Urbanisation Committee.

Nonetheless, “the property glut issue is not too bad here compared to Selangor such as in Bukit Rimau and Kota Kemuning, both in Shah Alam, where numerous properties are for sale or rent,” noted Chua.

The local real estate market is also expected to get better by end-2017, as many visitors and tourist are expected to arrive following the recent unveiling of this year’s Visit Pahang by the state authorities.

Another factor that would positively affect the property sector is the construction of the East Coast Rail Link (ECRL) that would link areas in Pahang with Klang Valley.

“People would be able to travel more easily to Kuantan, which in the long run would further develop the east coast,” Chua noted, adding that the major transport project is anticipated to revitalise the state’s real estate market.

Image sourced from New Straits Times

Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email [email protected]

http://www.propertyguru.com.my/property-news/2017/3/147597/property-glut-rising-in-pahang

 

[FHBH12]

Recent news but just to complete the picture that property glut is rampant in Malaysia now.

Expert sees spectre of ghost towns in Johor

Robin Augustin | January 24, 2017

Many of the buildings being constructed in the Iskandar region may be left unoccupied, says a veteran property consultant.

PETALING JAYA: A veteran property consultant has warned that many places in Johor will become ghosts towns because of the top-down nature of development there, particularly in the Iskandar region.

In an interview with FMT, chartered surveyor Ernest Cheong said he feared there wouldn’t be enough people to occupy the thousands of houses and commercial buildings being constructed.

“Just Forest City alone is estimated to be able to house some 700,000 people,” he said. “Who will take up these houses? Johoreans? That is unlikely. There are fewer than two million locals in Johor Bahru, and that’s a generous estimate. Many of them already own houses.”

He noted that some people expected Singapore and Chinese nationals to move in, but he said it was doubtful that enough of them would do so.

“Singaporeans who are rich wouldn’t want to move to Iskandar as they can live anywhere else around the world. Those who aren’t rich may not find it feasible to move to Iskandar and commute across the island every day. It is costly and time consuming.”

He also said it was doubtful that Singaporeans wishing to migrate would choose to move to Malaysia.

“People usually want to migrate to places where they believe the grass is greener. Why would Singaporeans, who enjoy a higher standard of living there, want to come here? It doesn’t make sense.”

As for Chinese nationals, Cheong said Iskandar would be just one of the many places they would have properties in.

He said many rich Chinese had a number of properties in cities around the world and would look at Iskandar as a place to invest in rather than to relocate to.

“So, even if all the units being developed by Chinese companies are sold, who will stay there?

“There is a demand for affordable housing from locals, but the Chinese developers aren’t building affordable housing. How many can afford to buy or rent these places?”

Cheong, who has worked at his trade for more than 40 years, said he was concerned that a low rate of occupancy in the Iskandar region would affect the value of surrounding properties “because no one wants to stay in an empty neighbourhood”.

“Sadly, this is the reality of development in Malaysia,” he said. “Developers think they can just build on a plot of land and people will come in. They don’t understand that demand is not just about people wanting homes; it’s about them wanting homes they can afford.”

Data from the National Property Information Centre show that developers in Johor plan to build more than 350,000 private homes in the state. Some of these are already under construction.

http://www.property-report.com/could-ghost-towns-be-a-reality-in-johor/

 

[enjoylife77]

Ghost Towns Rising in Malacca
• March 1, 2017

Rapid development in Malacca has resulted in an oversupply of commercial properties, made evident by the stretches of vacant shophouses, .....................................................................................................................................

Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email [email protected]

http://www.propertyguru.com.my/property-news/2017/3/147509/ghost-towns-rising-in-malacca

Now I know why Malacca property sold by developers usually comes with 3 years (3 x 7%) rental guarantee.

 

[snowbird]

Johor exco member arrested over land scandal

Several people were arrested over this scandal for : "betting to approve land premium reduction for housing and industrial projects as well as changing the status of Bumiputera premises in Johor."
I wonder whether those people who bought homes that were converted from bumi status "illegally" by those poeple will be affected and also will the owner be faulted too.
Surely, its not just a few bumi unit conversion were affected but thousands of units were affected.



Look at those expensive fancy cars that got seized by MACC, you can imagine how much money was involved!!




Plus so many designer bags - LV, Gucci, Dior.........but surprising don't have Birkins

Read more at http://www.thestar.com.my/news/nati...rested-over-land-scandal/#YJJKiYsGw38uXFhi.99

 

[Jetstream]

http://www.scmp.com/business/compan...spends-china-sales-flagship-malaysian-housing

Country Garden halts Malaysian housing sales amid capital flight crackdown

 

[snowbird]

Minister: China’s capital control matter of concern for Malaysia

Second Finance Minister Johari Abdul Ghani today said Malaysia is affected because the trend of investors leaving China due to the measures will impact on China’s domestic economy and thereby on trade with Malaysia.
He said this after it was reported that Country Garden Holdings is closing all sales centres in mainland China due to the capital control measures.
So, all the balance units in Country Garden, Greenland, Princess Cove will need a longer time to be sold.

But the next serious big question will be those Mainlanders who had bought and just paid the first initial payment....................with the capital control, how are they going to continue to pay from now on??
More lelong??

http://www.freemalaysiatoday.com/ca...pital-control-matter-of-concern-for-malaysia/

 

[FHBH12]

China’s capital control could cause abandoned projects here

Robin Augustin | March 13, 2017

Veteran economist says international, local buyers won't be able to fill void left by Chinese nationals in various development projects after China curbs capital flight.

PETALING JAYA: A veteran economist believes there will be a surge in abandoned property projects in Johor, Kuala Lumpur and Penang following China’s crackdown on capital flight.

Speaking to FMT, Hoo Ke Ping said China’s aggressive measures against capital flight would affect property developers – both local and international – who catered to house buyers from China.

“Chinese nationals who have purchased homes but haven’t finished paying for them may not be able to do so.”

He said China’s central bank may force those who purchased homes outside of China to finish paying their loans in China.

“Even if Chinese buyers account for only 20% of a project and they can’t continue paying their instalments and default, a developer is bound to run into cash flow problems.

“What is certain is that there won’t be any new sales. So there is a possibility that projects which cater to Chinese nationals could end up being abandoned.”

Hoo said even though Chinese developers like Country Garden – the developer of the massive Forest City project in Johor – were looking to other international buyers to fill the void left by the Chinese, it would be an uphill task.

“People from the Middle East are unlikely to fill the void given current oil prices while Europeans and Australians haven’t shown any interest in coming to Malaysia in a big way all this while.”
Hoo said locals too wouldn’t take up the homes.

“These homes were built for the Chinese market. They cost over a million ringgit. How many locals can afford them?

“So now the developers need to slash prices to salvage the situation.

“But even if they slash prices by 20%, it may still be out of reach for many.”

Hoo said he believed the situation would persist for at least three years as it was crucial for China to control its capital flight.

Earlier it was reported that the Forest City project in Johor may face difficulties with Country Garden closing all sales centres in mainland China.

Forest City is a futuristic smart city project to be built on four man-made islands spanning 1,385.6 hectares.

Costing RM100 billion, it is expected to be completed within 20 years and will have a range of facilities, including housing units, offices and shopping malls.

Alan Ho, a former sales agent at Country Garden’s Malaysian operations, said about 90% of Forest City buyers were from China.

http://www.freemalaysiatoday.com/ca...-control-could-cause-abandoned-projects-here/

 

[FHBH12]

The rise in China's foreign exchange reserves is bad news for global real estate

http://www.businessinsider.com/chinese-capital-controls-effect-on-real-estate-2017-3?IR=T&r=US&IR=T

Key Chinese Residential Property Developers in Iskandar

Country Garden - Danga Bay and Forest City
Greenland Group - Danga Bay and Tebrau Bay
Guangzhou R&F Properties - Princess Cove
Hao Yuan Investment Pte Ltd - Danga Bay
Macrolink Group (Macrolink International Land (Malaysia) Sdn Bhd) - Medini
Zhuoda Real Estate Group (Zhuoyuan Iskandar) - Paradiso Medini
and more...