Property News

[enjoylife77]

Do you agree with this property hunter?

 

[kslresidence]

Malaysia's central bank warns of property glut

Bank Negara Malaysia (BNM) warned on Friday (Nov 17) that :

* Unsold residential properties are at their highest level in a decade, with the largest oversupply found in southern Johor state.

* there were 130,690 unsold units at the end of March this year, 61% were high rise units.

* projected that one-in three offices will be vacant by 2021

* Johor is poised to have the largest property market imbalances (highest number of unsold residential properties and potentially the largest excess supply of retail space).

* Developers to build condominiums at ever-increasing prices even though salaries have failed to catch up.

As of March this year, there are 130,690 unsold units from the developers as reported.
However, this is not including those units purchased by investors / flippers, waiting to resell their units during the boom.
So all together, don't be surprise that there are more than half a million vacant units available in the market now.
A bit of advice for those wanting to invest in JB, be careful, be very careful.

http://www.straitstimes.com/asia/se-asia/malaysias-central-bank-warns-of-property-glut

I still find if you belong to those who are looking for quick bucks in flipping property in Malaysia, you will be in for a rude shock. The political scene, the street security and country culture are still far from Singapore. Having said that, for those who are like me, love the slower pace, friendly neighborhood, food and vast land to explore on weekend, buying 1 house you can call home here is a sweet deal. Currently my only concern is renovation as I heard too many scary stories.

 

[snowbird]

Look out for the fire sales, which should be happening anytime now!

As reported by Bank Negara Malaysia, there are 130,690 unsold units in the market with 27% coming from Johor, which is almost 40,000 units.
And these are just the unsold units from developers, not including perhaps twice as much the number of units in the secondary resale market.
So we are looking at around 100,000 units available for one to pick and choose and bargain for the best deal.

Now, the State government has to look for ways to solve this mega problem they created.
"After sultan's call, Johor gov't looks to solve unsold luxury homes glut"
Not
Read more at https://www.malaysiakini.com/news/403322#cKoIUriqJUzFAxlb.99

Seems like the State government is getting into panic mode on this issue.
Not sure what new rules or regulations etc. they will introduce or implement, but trying to dispose so many unsold units, which are not affordable by the locals, within a short period of time is not going to be easy.
For those who are still holding on their units hoping the market will improve may not see that day coming soon.
If they ever got a reasonable offer which don't lose much money, better sell it off unless they have deep pockets and good holding power.

 

[Jetstream]

See article below: If this is becoming a problem in Australia, could this become a problem in Iskandar too if there is a significant number of foreign Asian buyers?

http://www.freemalaysiatoday.com/ca...an-who-became-a-monk-auctioned-off-in-sydney/
“... It’s a big problem all across Australia at the moment of having foreign buyers, usually from Asia, who buy an apartment and then never live in it, and no one knows where they are. They might owe hundreds of thousands of dollars in unpaid levies or there might be maintenance issues in their apartment that affects the others around and below them. But often these people are impossible to track down, so no one can serve the legal papers on them that are necessary for any proceedings to get access to their property, or to sell the unit from under them. ...”

 

[snowbird]

The capital control enforcement by the Chinese government a year ago is taking its toll particularly on the JB property market
The last BMN report that there are still 40,000 unsold units in JB alone is the result.
Big groups of Chinese buyers are not coming in any more.
Developers are not honest enough to report on their actual unsold units and instead always giving the "almost sold-out" impression to attract more kiasu buyers.
40,000 units is not a small amount but coming from which development?
So, its is not just mere pockets of unsold units scattered all over, it will not add up to 40,000 units but rather a high percentage of unsold units in several larger projects!
The massive Country Garden's 8,000 units even with 20% unsold is only about 1,600.
One possibility is many Chinese buyers, who are unable to remit money to service the loans, are cancelling their purchases and the same property is put back into the market.
How the developers are going to move their unsold stock in 2018 is going to be an uphill task.

 

[snowbird]

Ideas: Malaysia needs to be ready for the property bubble to burst

KUALA LUMPUR (July 24): The Malaysian government needs to be ready for the nation's property bubble to burst and the risk that this could lead to an economic crisis, following spectacular growth in the high-end property segment, according to the Institute for Democracy and Economic Affairs (Ideas).
In a statement today, Ideas said a policy paper authored by Ideas senior fellow Dr Carmelo Ferlito indicated the spectacular growth in the high-end property segment was ignited by rising profit expectations, growing demand and at a later stage, a supportive credit market.
Ideas said in the statement: "That bubble should now be expected to burst."

Ferlito said in the statement: “The focus on the high-end segment was justified by high demand and it is therefore natural that investment expanded in that sector. However, now that it appears clear that unexploited profit opportunities are disappearing, a capital allocation restructuring appears necessary.”
“The high involvement of government agencies in the affordable housing market, risks crowding out private initiative and preventing the necessary restructuring from taking place. It is important to let the bubble to burst; too much credit will only delay the bursting, keeping prices artificially high and putting at risk, the financial solvency of buyers. Without credit support, the crisis will happen faster and force both capital restructuring and prices to move downwards”, Ferlito said.
According to Ideas' statement, Ferlito recommended the government to respond with market-oriented solutions and pay special attention to the household financial exposure.

It also highlights the need for the government to downplay its role in the property market by reducing the number of government agencies and encouraging the private sector to get involved in the affordable housing market.
"Third, the government must enhance Malaysian financial literacy, with an orientation toward the value of saving and the possibilities offered by the rental market. Finally, the government may open and ease up the regulation in the property market to foreigners who are in possession of a regular working visa and paying taxes to help the industry in a crucial moment of difficulty," Ferlito said.

https://www.edgeprop.my/content/1408390/ideas-malaysia-needs-be-ready-property-bubble-burst

 

[ginfreely]

It also highlights the need for the government to downplay its role in the property market by reducing the number of government agencies and encouraging the private sector to get involved in the affordable housing market.

Apparently this IDEAS do not even know that the private sector is already involved in the affordable housing market. One developer told me few years ago that they couldn’t build any more new precincts until they build the required low cost houses in the estate. The old mudland government did a good job on this.

 

[Linsanitee]

I think we can still invest in landed property.

 

[Robert Half]

Hopefully the RTS will also raise the private property price in Woodlands area.

 

[snowbird]

I wonder how many here bought a unit at Greenland in Danga Bay?
For the past one year, there seems to be very little work progress on the site.
I drive by regularly and observed that at there aren't much building activities going on.