Malaysia Property Roundup: A 2014 Wishlist

klcc-sky

2013 was quite eventful for the Malaysia property sector even though the bull market seems to be already at its death throes with the cooling measures announced in the recent budget. Financing is still relatively cheap, and with supply growth at a measly 1% (as measured in the second quarter), property prices have been on a steady upward trajectory.

Will the curbing measures finally halt the escalating property prices?  How will the sector cope with upcoming challenges (possible revision in interest rates, impact of GST come April 2015)? Will the supply-demand gap continue to widen?

We here at GoodPlace.my HQ spent some time talking to people in the industry (developers, agents, analysts) as well as consumers on the outlook for 2014. Coming out from the discussions is a “Wish List” of sorts for the coming year. Like it? Hate it? Let us know in the comments below.

GoodPlace.my Resident Model

GoodPlace.my’s Wish List For 2014

  1. More laissez-faire. Simply put, the government has no business being in business; more regulation is not the solution. True, developers and banks are profit maximizing entities, but prices are high because there’s enough demand to sustain the premium. In this case, we have to heartily disagree with Chang Kim Loong of the HBA. To rein in the prices, supply must be ramped up. In short, if there’s anything the government should do, it’s the elimination of red tape, streamlining of processes and development of infrastructure instead of adopting band-aid approaches like slapping higher taxes and stamp duties. You can’t apply short-term solutions to long-term problems.
  2. More projects in “fringe” areas. Developers like Mah Sing are already moving out from the city to focus on the (potentially more lucrative volume-wise) middle income segment with projects in Rawang, Cyberjaya and Bangi. To address the demand-supply imbalance, fringe areas in the Klang Valley are good opportunity areas although much can be done infrastructure-wise to “unlock” the value of these areas.
  3. Learn from Singapore. Residential property prices in Singapore are on a decline, and there are many who are quick to attribute this to the “cooling measures” that the Singaporean government took. Many overlook the fact that the city-state’s planning is top notch, and the supply can be easily throttled by the authorities. The real lesson here is to have a broad-based plan which primarily regulates supply coupled with secondary (short term) curbing measures (managing interest rates, etc).
  4. Push for BTS. The “Sell Then Build” concept which is practiced now is somewhat an anomaly which has got to be phased out for the benefit of BOTH the house buyer and the developer. We fully agree with the 10:90 concept (10% payable upon signing of SPA and the other 90% upon successful completion of the project) as being pushed by the HBA now.
  5. Stop scapegoating the developers. Developers are profit oriented, and that is a good thing. The role that developers play is just one piece of the puzzle; to single it out as the main culprit behind the boom is unfair. Developers can’t just raise prices beyond what buyers can afford – that would not make sense economically. Responsible fiscal policies, proper infrastructure planning and reduced regulation is the key.

New Developments & Launches

almas-puteri-harbourWe have covered the somewhat lackluster launch of UEM Sunrise’s Almas project in Nusajaya, Iskandar in last week’s Malaysia Property Roundup; the take up rate has reportedly risen to 40% this week. There are a total of 569 units (1 bedroom, 1+1 bedroom, 3+1 bedrooms) measuring from 520 to 2,221 sq ft. Almas is to be completed in 2018. To find out more, call 03-27276000.

Reflection Residences, Mutiara Damansara (near the Curve) is a tower housing some 299 units on 39 floors with sizes from 1,092 to 1,705 sq ft. A Glomac project, Reflection Residences is probably one of the last few with DIBS – call 1800889000 for more information.

Elevia Residences, Puchong

Source: SymphonyLife.my

Elevia Residences is a Symphony Life project in Taman Tasik Prima, Puchong, overlooking a man-made lake. Spacious (for a condominium) at nearly three acres, there are a total 162 units priced from RM478,000 upwards. Call Symphony at 03-78446833 to find out more.

Events

Hatten Group is having an end-of-the-year showcase, featuring Capital 21 (integrated development in Iskandar), Imperio Mall (inside Melaka’s Hatten City) and Silverscape Luxury Residences (also in Melaka). There will be gifts and special promotional packages for the aforementioned properties. The showcase will be held from today up until February 17th at Hatten Hotel in Melaka (map here). For more information, call 012-7191818.

Got an event coming up? Want some free publicity? Talk to us – use this form and we will feature your event in an installment of the Malaysia Property Roundup, typically out very Friday.

Get our low volume, once-a-week GoodPlace Digest (GPD) over email. Click here for an archive containing our past issues, or receive your first issue this Saturday at 8am in your inbox by entering your name and email address using the signup form on the right.

About Khai Yin

When I am not writing for GoodPlace.my and helping my readers find properties though the DealMatcher service, I spend time doting on my three kids: Wenyi, Qinyi and Eian. My personal stuff, some published essays and contact details can be found at khaiyin.com

Comments

  1. Good list

    I think apart from developers, “speculators” are also made the scapegoat.

  2. Melissa Wong says

    Asking the Malaysian government to “learn from Singapore”? Are you trolling? LOL

  3. You know what, HBA is right in placing the blame on developers. You know and I know that the game is rigged. Housing is a constientious (spelling?) issue and is not best being dictated by “free market forces”. Central planning is essential for any infrastructure, and even the most hardcore capitalists will agree with me.

    • I’m nowhere near “hardcore”, but I respectfully disagree with you.

      Big government is not the answer. Contrary to the commonly adapted view, it’s not the role of the government to “boost economic conditions”. In short, it’s not the role of the government to make sure that you have enough money to spend or to have a roof on top of your head.

      Capitalism is far from ideal, and yet it somehow propels humanity forward. Scott Adams (yes, of the Dilbert fame) calls capitalism a “paradox” – it’s a bunch of bad sounding ideas working together to create something that is far good than bad.

      On the other hand, central planning of resources allocation (a key tenet of socialism) is a bunch of noble sounding ideas that create more harm than good. I shudder at the notion of developers getting nationalized in order to live up to the “cheap homes for all” pretense.

  4. For 2014, I wish the prices of property to fall. I’m a fresh grad but I harbour the hopes of owning my own home for the longest time. With a paltry salary of $1,500 this dream is so distant…

    What can I do?

    YL

    • Upgrade your skills and look for opportunities to increase your income. Don’t expect property prices to come to you..you should look for ways to go up to their level..

  5. Cyberjaya is no longer fringe. Prices are now as high as $800 psf… comparable to inner city properties.

    Suge

  6. Personally, my view is that property market is not solely played by respective developer but from all including government, financial institutions, developers and off course property purchasers and investors.

    Implementation of certain taxes by government bodies, etc will surely impact on the house price whereby all these will surely be transferred from developer to purchaser.
    Implementation of Built then Sell will also result in escalation of house prices because 1) property developer will decrease due to financial constraint, 2) property supply will hence substantially decreased.

    With the going to be implemented 6% gst by apr 2015 also will make the house prices increase substantially.

    In conclusion, house price would not fall

  7. Country Gardens paid about RM370 psf for the land in Danga Bay last year, and many thought that it was overpriced. Given the relatively poor response (apparently there’s some 40% units not taken up) that should be sounding alarm bells alkready..

    Hao Yuan’s RM1000 psf price paid to IWH is incredulous (3x the price Country Gardens paid!!).

    What’s up with the Chinese? Do they know something we don’t?

  8. Mohammedpayurbills@hotmail.com says

    Mm2h recently stamped we’re told clearly and doc given To us that new rulings reducedmmm2h participants from 1million to 500000rm and non participant have same 1 million but no lawyer builder doesn’t make any sense what we r suppose to do now
    Reply ASAP forums to make any decision

Speak Your Mind

*