Kuala Lumpur & Malaysia Property (MY#1)

[drbubb]

CASA RESIDENCY, "An Iconic Urban retreat" - Kuala Lumpur CBD

 

 

(this is being marketed this weekend in HK, for 2nd or 3rd time)

 

+ Close proximity to Bintang Walk, Times Square, KL Pavilion

+ 27-storey with swimming pool, sauna, gymnasium etc

+ KLCC View

+ Freehold, Full-furnished apartments

+ Guaranteed 8% return, for 2 years

+ 3 minutes walk to KL monorail & Star LRT station

+ Proximity to:

+ Up to 80% bank financing

 

 

2 BR Apartments - from HK$1,469,699 / $2.43 = RM605K (535 sf = RM1130 psf)

3 BR Apartments - from HK$2,295,650 / $2.43 = RM945K (?? sf)

 

Developer: Glory Bounty, a sub, of: Mutiara Iohan Bhd

 

RM Charts ...

Old ...... : 7.80 / 3.80 = RM1.00 = HK$2.05

Updated : (Nov.7.765/3.40 = HK$2.28) Apr.7.765/3.20 = HK$2.43 -6.4%

 

More photos : http://www.skyscrapercity.com/showthread.php?t=810326

 

Attempted auction at RM555,000 / 535 = RM1000 psf ??

/see: http://www.lelong.com.my/Auc/List/2007-01D...ntre-KLCC-K.htm

 

COMPARE:

 

COMPLEX MUTIARA CONDOMINIUM FOR SALES AT RM119,999

(LOCATION AT BATU 3 ,JALAN IPOH.)

TYPE : MUTIARA KOMPLEX APARTMENT

SQUARE FEETS : 645 Sq feets

ROOMS : 3 Rooms

BATHROOMS : 2 Baths

1 CARPARK LOT

Swimming pool + 24 hours security

Maintenance Fees = RM90 per month

Full apartment facilities like lifts, swimming pool, multi-purpose hall, Launtry,

pantry shop ,clinic ,kfc,pizza hut ,SHOPPING and etc

/see: http://www.lelong.com.my/Auc/List/2010-04D...-JALAN-IPOH.htm

[drbubb]

How things change, eh?

 

Kuala Lumpur City Center (KLCC) - 1895

 

 

...more than 115 years ago this area is known as the Selangor Turf Club till 1992 when it was finally shut down to make way for the tallest buildings in the world

 

KLCC as construction was underway

 

 

KLCC today - at night

 

[drbubb]

Pricing indications:

3. K Residence..... ( RM1000 ) ???.2008 : RM1600 , #180

4. The Meritz........ ( RM1000 ) Apr.2008 : RM1300 , #110

5. Marc Residence ( RM 750 ) Aug.2007 : RM1200 , #607

 

Is Marc Residence too expensive? 1 Year, 8 Months ago Karma: 2

===

someone i know moved out recently saying he found his unit too small - i think it was 1k sq.ft

 

he also told me that some of the units were very difficult to sleep in due to noise from disco. he said it was really bad.

before u buy make sure u see the unit late at night, i guess.

+++

 

2/

Re:Is Marc Residence too expensive? - 1 Year, 5 Months ago Karma: 11

===

The occupancy rate is still very low. Maybe the tenants don't choose Marc Res due to the upcoming high-rise project next door. The next door project will take 3-4 years to complete.

 

Next year, there will be more than 5 projects (Idaman Res, One KL, Oval, Avare, Hampshire Res) completed in the vicinity of KLCC. This will be additional pressure on the rental market.

+++

 

3/

Is Marc Residence too expensive? 1 Year, 5 Months ago Karma: 0

===

Wayne Hor wrote:

But the occupancy rate of Duo residency, Stonor Park, Binjai Residency are higher than Marc Res.

Marc's main competitor at this moment is Park View, soon will be Idmaman Residence.

 

 

4/

What is the occupancy rates of the above devts and do you know what their rental/sq. ft. is? And when you use the term "occupancy rate", does it mean only rentals or both rentals & owner occupied? Just want to make sure that we're comparing apples with apples here

 

 

5/

Re:Is Marc Residence too expensive? 1 Year, 5 Months ago Karma: 11

===

CKN,

 

Occupancy rate refer the no of units occupied by owners and tenants.

 

The 3 i mentioned have achieved more than 30% so far. the rental rate is RM4.50-RM7 psf.

 

As u know, not ALL, but mostly, the local affluent owner-occupiers pefer to stay at bangsar, d'sara hgts, tmn duta, ampang/ u thant, kenny hill/bkt tunku. Only few would stay at the city. that's why u can see the property at those area always stable.

 

So who are staying at KLCC area? must be expats who work in the city.

 

So if you client ask u whether should invest small unit of Marc or bigger size of Duo Res, That means he is comparing Marc & Duo. an investor is only interested to know which type of property can offer better return. they may even compare resort project with city condo!

 

So we can't answer them "resort is resort, city condo is condo, can't compare!

 

so as an invetor, they will look at the higher occupancy rate of a condo, because the market will tell the truth! not agent! why the occupancy rate of Duo is higher, there must be a reason. If a condo still at lower occupancy rate after 2 years of completion, there also must be a reason.

 

Let the market reveal the truth soon!

 

/more: http://thinkproperty.com.my/realestate/For...-expensive.html

[drbubb]

...we saw this property today...

 

great location. decent standard of finish, etc. prices down, but still not cheap.

 

Condominium for Sale in K Residence @ KLCC, KLCC, Kuala Lumpur, Malaysia /

for RM 1,000

K Residence is a stunning 50 storey tower block, comprising of 188 luxurious condominiums. K Residence has its own access lobby and elevators for the exclusive use of its residents. It is part of a landmark development and Kuala Lumpur’s only 50 storey luxury residential property built directly opposite the magnificent Petronas Twin Towers and sprawling KLCC Park.

 

The expertly designed layout of each apartment provides a vast open living area and presents the buyer with breathtaking views.Each apartment comes with a fitted kitchen, wardrobe in the master bedroom, air conditioning & CCTV.

 

Residents facilities includes 24 hours concierge service as well.

 

Few various unit sizes available for sale : 1406, 2417, 2452, 2766, 2739 sf. Selling Price from RM950psf.

 

Kindly contact Mei 012-3952386 012-3952386 or email meichong98@hotmail.com

 

/see: http://condo.com.my/condominium-for-sale-i...ia-for-rm-1000/

== == ==

 

Floor 7-23 : BU 1406 – BU 2766 ft2 ( Type A, B1, B2, C1, C2). Floor 25-29 : BU 1485 – BU3510 ft2 (Type D, E, F, G, H). SALE RM1200-RM1500 psf up & RENT RM7,500-RM20,000.

 

 

NOTES

K-Residence : RM 950 &up

The Oval .... : RM 880 &up

[drbubb]

K- Residence - by the same developer

. B/

...well, i finally managed to let mine out - it took almost 12 months to secure a tenant. apparently only 40% of the total number of units are occupied. management presented us with a very nice new year gift by increasing the service fee from RM0.35 to RM0.50 psf. my unit, i think is directly below brian wong's as i am on level 43A.

. . .

I purchased mine for RM1472500. Another RM70000 of furnishings.Am currently letting it out for RM7560/month. For a built up size of 1931 sq ft, I am getting a miserable gross return of 6%

 

Update: I spoke with someone working at the building today,

and he confirmed it is now 50% occupied, with about 17% of the owners living there.

 

I liked the standard of finish, and loved the location

 

[drbubb]

... as first posted elsewhere, relevant for KL too ...

 

QUOTE from GEI by / littledavesab, Apr 28 2010 / ===

 

Requiem for Detroit? :

http://www2.lse.ac.uk/publicEvents/events/...7t1700vSZT.aspx

 

In Requiem for Detroit (Dir. Julien Temple, 2010) we come face to face with a dystopic post-industrial city, in which 40% of the land in the centre is returning to prairie. This polemic documentary spans the course of the 20th century conveying the city's transition from Motor City to beacon for the burgeoning urban agricultural movement.

QUOTE == == ==

 

The Black Heart must be pulled out - A walkable heart lies at the Core of great cities

 

Every great city - London, New York, Paris, Tokyo, Hong Kong - has a walkable core at its heart. In fact, usually the entire city is walkable, and linked by public transport, giving pedestrians access to the full riches of the city, without requiring them to use or park cars.

 

Many failing cities pushed the pedestrian aside, to make room for cars. And the cars now rule, pumping toxic fumes into the air, and slowly but surely spoiling the view with greying smog, while clogging the lungs of its citizens with pollution.

 

It is time, before the cities have died, to pull out that black heart, and replace it with a new one. Pedestrians need to be respected and catered for, if a great city is to be rebuilt. They need to be able to get around, to have access, without being threatened by cars, and without multiple barriers being imposed to their motion. Living arrangements, which do not necessitate car transport need to be provided. And a true rebirth, would provide rich attractions at the street level: shopping, views, restaurants, cafes, parks, and the fabuluous fabrick of street life, which makes great cities great.

 

The road to a rennaissance will not be traveled in a car, it will be traversed by foot.

[drbubb]

I just found another source of information on Malaysian property prices:

 

==== -Q1- --Q2- -Q3- -Q4-

2009. 0.16 -0.53,

2008. 1.85 -0.13, 2.33 -1.51

2007 -0.20 -0.04, 1,55, 0.89

2006. 0.37, 0.35, 0.58, 3.65

2005. 0.56, 1.47 -0.34, 0.99

% change over a quarter

 

source: Bank Negara Malaysia

= = = = = = = =

charts

 

It looks as if the fall was arrested before it became too severe,

and the perhaps the "last rally" in the 18 year cycle was launched

from a Q2.2009 low. I expect that rally may finish in 2010.

 

Normally, we would see at least a 2-3 year drop, but it could be

more than that.

 

Data source: http://www.globalpropertyguide.com/real-es...-house-prices/M

[drbubb]

THE BINJAI on the Park - KLCC / Exhibition in HK: 5-6 JUne

 

Two Towers of 44 & 45 stories, 171 units

 

Time: 11am - 6pm at East Room, 23/Fl., Mandarin Oriental

 

/source: http://www.malaysiacondo.com/2010/03/binjai-8.html

[melmartinez01]

Kuala Lumpur is not yet the same as Singapore or Hong Kong. Firstly, there’s no serious issue with scarcity of land. Secondly, unlike these high-growth economic hubs which attract top-level executives as MNCs set up regional head offices, KL sees more mid-level expatriates coming in to work in factories or on construction and infrastructural projects. These mid-level executives are unlikely to pay the high monthly rentals for luxury properties.

[drbubb]

Kuala Lumpur is not yet the same as Singapore or Hong Kong. Firstly, there’s no serious issue with scarcity of land. Secondly, unlike these high-growth economic hubs which attract top-level executives as MNCs set up regional head offices, KL sees more mid-level expatriates coming in to work in factories or on construction and infrastructural projects. These mid-level executives are unlikely to pay the high monthly rentals for luxury properties.

 

Right.

And they are building, building, building in KL in such a way as to overwhelm demand, as we head into Global recession/depression

 

[drbubb]

PROPERTY AUCTIONS in Malaysia

 

EXCERPT

I’m still very much into property auctions. There are two reasons for this. The first one is that the number of properties being auctioned has increased tremendously from five years ago. Today, there are literally hundreds of properties being auctioned each and every week day. While most of them are no good (due to the poor location and high price), I can still find two or three interesting ones every day, which equal to 15 a week and 60 a month! And that is a lot of properties! What’s even more interesting is that the number of properties being auctioned can only increase as more people defaults on their mortgages. (The people using the old formula of buying five properties in one go by taking on monster mortgages are prime candidates to see their properties being repossessed.)

 

The second and more exciting point is because the quality of the properties being auctioned has also improved. While many of the properties are still located in the not-so-interesting areas, today I see properties in Damansara Heights, Kenny Hills, Mont Kiara, Taman Tun Dr Ismail and even the condos around KLCC being auctioned. The prices of these properties may be too high for most people at this point, but I believe that in the coming days, prices will drop to a more reasonable level, and then things will get really interesting then

 

MORE: http://www.starproperty.my/PropertyGuide/Finance/10600/0/0

[drbubb]

NOT EVERYONE expects the Boom to continue...

 

"price come down" mean different things to different people. to me it means this:

 

the reality today for new similar homes:

2008 280k, speculators asking 400k today

2009 330k, speculators asking 425k today

2010 380k, speculators asking 450k today, still under construction

2011 450k, speculators asking 500k 1 month after signing SPA (there are several cases witnessed in the other threads)

 

the scenario in 2013 may become:

2012-13 new launches 450-500k, few buyers, less launches, slow down

subsale prices :

2008-09 units 350-380k

2010-2011 units 400-450k

 

subsellers may soon face the scenario of 'high price-no market', forced to lower asking prices.

there will be a chain reaction, people see better value in completed houses.

speculators take a break, developers find something else to build (i hope factories and farms that produce tangible goods)

the no. of new builds for houses, condos, apts, serv apt, sohos, sovos, malls - you name it - in the last 24m is appalling.

it just doesn't make sense to think all that will enjoy full occupancy rate, price upupup when there is little happening in the rest of the economy.

 

/source: http://forum.lowyat.net/topic/1763572/+600

[drbubb]

Here was my "best guess" on how the 18 year cycle might be applied in Penang, Malaysia.

 

In KL, it looks like the cycle peaked about 3 years earlier, in 2008. Normally, the cycle requires at least 3-4 years off the top, to make a low. So we could see a bottom as early as 2011-12.

Instead, it looks like it rode up to a new high

[drbubb]

(I reckon that prices have continued to slow down...):

 

Updated: Jul 23, 2011

House price rises continue, albeit slower

 

 

Property price increases continue in Malaysia, albeit at a lower rate, amidst slower exports and economic growth in the first quarter of 2011.

 

The national house price index rose 6.5% y-o-y to Q1 2011, after annual increases of 7.9% y-o-y in 2010, according to the Valuation and Property Services Department (JPPH). When adjusted for inflation, house prices rose by 3.4% over the same period.

 

In Kuala Lumpur, the house price index surged by 11.4% y-o-y to Q1 2011, with a rise of 7.1% during the latest quarter. House prices also increased in Selangor (9.6%), Perak (8%), and Negeri Sembilan (5%) over the same period. On the other hand, in the year to end-Q1 2011, Pulau Pinang and Johor experienced price falls of 1.2% and 1%, respectively.

 

/more: http://www.globalpropertyguide.com/Asia/Malaysia

[drbubb]

UPMARKET LANDED PROPERTIES - near KL

 

 

Jade Hills, Kajang - by Gamuda Land

zearcher / Joined: 25 May 2008

Posts: 27

Posted: Sun May 25, 2008 9:16 pm

====

Unfortunately Jade Hills website (.://..jadehills.com.my) gives little information about this upmarket housing project. Practically, you need visit their development site to appreciate and get more information.

 

Personally, I believe Jade Hills is yet another master piece by Gamuda Land. It is located in Kajang, about 2km away from Kajang town. Undoubtedly, Jade Hills is the first high-end housing project in Kajang (if we exclude Country Height is the equation). If you are looking for a high-end property south of Kuala Lumpur, Jade Hills is one of those you must visit.

 

 

I have visited Jade Hills several times. More than 85% of its 260 acres of land were dedicated for Bungalow... and the remaining 10-15% will be used for for Link Bungalow (called Evergreen) and Garden Terrace (called Calligraphy Maze).

 

There are three designs for Garden Terrance... Type A (3 storey - built-up between 3400-3800 sq ft) and Type B and C (2 storey - built-up between 2900-3100 sq ft). The selling price begins with RM672K (for intermediate) and over RM1 million for corner units.

 

The built-up for Link Bungalow homes (total of less than 40 units) around 3800 sq ft with starting price of slightly above RM1 million.

 

Phase 1A Bungalow Homes (called White Bark) has larger built-up... approximately 4100 sq ft (minimum) and selling price begins with RM1.5+ million.

 

For some reasons, the developer does not provide any show house for Link-Bungalow and Garden Terrace. In this regard, you will not be able to fully appreciate its actual design... you need to visualize based on your own imagination from brochures (which is already highly influenced by Artist impression) and model house.

 

Well... at the moment, many may think the price is a bit hefty for property in Kajang, but it could be well justified in near future. Recently, it's reported in StarBiz that Metro Kajang Holdings Berhad will soon be developing a huge upmarket housing project covering 270 acres of land. In other word, these developers will slowly transform Kajang into their high-end property market. And Jade Hills will be the pioneer of all high-end projects.

 

If you are interested in upmarket housing development near Kajang, please check out and visit the following:-

 

Jade Hills @ Kajang (by Gamuda Land)

Twin Palms @ Sungai Long (by Lum Chang)

The Nest @ Saujana Impian (by Guocoland)

Laman Granview @ Bandar Bukit Puchong (by IJM Property)

 

/source: http://www.realestate.net.my/forum/viewtopic.php?t=19956

[drbubb]

Sweet spots for savvy investors

 

 

Hong Kong Standard-May 29, 2013

As the most developed and modern city in Malaysia, Kuala Lumpur ... Against this background, Seri Riana is a new development by IJM Land.

 

: Whole Development

 

: The T3 flats, at 1712+ sf

 

The contemporary condominiums - overlooking the Petronas Twin Towers and surrounded by verdant hills - come with a thoughtful suite of family- oriented amenities including a children's play zone, infinity pool and sauna among others.

The property, which is located within the five-kilometer radius of the city center, is easily accessible by major highways. Commuting to KLCC and Mont Kiara takes just 15 minutes.

 

Website :: http://www.asiahomes.com.hk

[drbubb]

 

Above SeaLevel

KLCC, nr. Traders Hotel : 40.2m / 132ft

Riana, at Wangsa Malu : 122.m / 400ft

===

 

Discussion Threads, etc

 

/1 : New flat discussion : https://forum.lowyat...pic/2368517/all

/2 : For Sale, 2nd hand : http://www.propwall....ast/classifieds

 

 

IJM Land website stated the minimum price of RM600k for this project and it had 2 blocks of condo with 38 floors each and 1 block of low rise condo. If you are coming from KL by Kelana Jaya LRT, you can see the land clearing just before the Sri Rampai LRT station. Is it a worthwhile investment? I am sure you would like to visit the project site and show gallery before paying your booking fee……with it excellent location near to amenities and the Sri Rampai LRT station, it would be a good choice for those that can afford the asking price. For investment purpose, it had a good chance of appreciation after completion but rental yield would not be high. The current rental for a similar size of condo i.e. 1300 plus sq ft in Desa Putra is asking for RM2,000 to RM2,500 depending on the furnishing. For own stay, one should also consider similar high end condo in Wangsa Maju/Melawati area e.g. 20 trees in Taman Melawati, 3 Residence along the MRR2 in Taman Melawati/Taman Melati.

 

http://wksiew.wordpr...in-wangsa-maju/

 

nearby

Riana Green East

Mar : 502 psf x

Apr : 515 psf

May : 537 psf

Jun 2013 : 540 psf

=======

 

[drbubb]

Wangsa Walk Mall

 

 

Located in Wangsa Maju, Wangsa Walk Mall offers a rich shopping experience for

the young and old alike. Designed as an outdoor walking mall with a total of 173 tenants, which include

Celebrity Fitness, Cold Storage, TGIF, TGV, FOS, Wangsa Bowl and Popular, Wangsa Walk Mall has

everything you need - fashion, food and scores of fun! With so many great attractions, you can be sure

there’s always something exciting going on at Wangsa Walk Mall.

===

/tenants: http://www.wangsawal..._directory.html

/more: http://www.wangsawal...y/about_us.html

[drbubb]

Layout (with changes) : Seri Riana

 

A /

 

B /

 

Room dividers

 

Calculations:

3A-t1b : R- 1073k / 1967 = R-545 per sf

25-t.2- : R- 1060k / 1759 = R-603 per sf

 

Yield at R-2 psf: 1967 X2 : R-3934 x12: R-47,208 / 1073k = 4.40 %

[drbubb]

Big plans for IJM (Malaysia)

.

IJM Land will launch new residential projects worth a combined RM 3 billion (US$ 980 bn) in Malaysia this year, says the Sun Daily. As well, the company will embark on its maiden London project worth GBP 300 million, near Tower Bridge.

== ==

..

Mixed Use along LRT

.

Syarikat Prasarana Negara, the state-owned public transport owners and operators will announce two mised use developments along the LRT by the middle of 2013. They are estimated to be worth more than RM 1.1 billion. Besides the two locations, there are 11 more parcels of land along future and existing LRT lines.

[drbubb]

Much Cheaper, but 6-stops from KLCC : 100m, 330feet ASL

 

Riana Green East, Wangsa Maju

RM 1,050,000

Wangsa Maju, Kuala Lumpur53000, Kuala Lumpur

Gallery: 16 out of 16

 

Property Type:Condominium - Leasehold :Strata

Built-Up:1,909 sq. ft. / Asking Price: RM 1,050,000

Bedrooms:4+1 / Bathrooms:3

Maintenance Fee:RM 0.26 per s.f.

Facing Direction:SouthWest

Occupancy:Vacant

Furnishing:Partly Furnished

Posted Date:17/08/2013

Facilities

===

Covered Parking, 24hr Security

Gymnasium, Jacuzzi, Sauna, Squash Court, Swimming Pool, Tennis Court

Nursery, Playground, Barbecue Area

=====

Details

All brand new unit with KLCC & Genting view, fully renovated with 6a/c, all bedroom wardrobes, plaster ceiling and kitchen cabinets.

Riana Green East (also known as Riana Green east.KL) is a high and low rise condominiums development located in Wangsa Maju. It is a green development where it is blended with the surrounding lush vegetation.

 

Riana Green East sits on a 13.96-acre of leasehold parcel of land. It is to be completed in 3 phases, which the first phase is the largest phase and has been completed in October 2009. Each phase will have its own facilities and management corporation.

 

The Phase 1, which is named Sagaris, only utilizes 5.85 acres that comprises a 36-storey tower, 2 low-medium rise blocks and 1 plaza block. There are a total of 391 units with 16 different layouts and built-up sizes range from 790 sf for a 1+1 bedroom to 4,625 sf duplex to choose from.

 

Nestled in a suburban vicinity, Riana Green East is well-served by plenty of amenities. It is just within 10 and 15 minutes of walking distance to Carrefour Wangsa Maju and Wangsa Walk respectively. Besides that, the neighbourhood is family-friendly too as there are numerous schools nearby such as SK Wangsa Maju Zon R10, SMK Taman Sri Rampai and SK Taman Sri Rampai. In addition, it is within close proximity from Sri Rampai RapidKL LRT station.

===

 

/source: http://www.iproperty...ominium-forsale

/daftlogic: http://www.daftlogic...nd-altitude.htm

[drbubb]

Cooling trend in Malaysia

Tightening measures imposed after years of explosive growth, writes Peta Tomlinson

 

" The minimum purchase price for foreigners has also been doubled - from 500,000 ringgit (HK$1.2 million) to 1 million "

19 February, 2014, / Peta Tomlinson

• 

Kuala Lumpur became a hot property market due to itswell-developed foreign business environment and comparatively low housing prices. Photo: Thinkstock

Property owners in Malaysia's hot spots, especially around Kuala Lumpur, enjoyed double-digit growth during a three-year bull run up to 2012. But, as the market comes down from a heady high, most expect a correction this year, and the next up cycle could be some time away.

For cashed-up investors in the post-crisis recovery years, it was easy to see the attraction. Malaysia's economy remains strong, expanding at a rate of 4.5 to 5 per cent last year, with 5 to 5.5 per cent growth forecast for this year.

 

Like Hong Kong, the city's business environment is well-developed, drawing thousands of foreign companies from around the world to establish operations there. And with that influx comes demand for housing. As IP Global's CEO Tim Murphy told potential investors last year: "In the next 15 years, Kuala Lumpur's population will grow by 40 per cent and, by the end of 2030, it will be bigger than the size of London."

 

And yet, it's one of the cheaper property markets in Asia. Direct foreign ownership is allowed, so unlike some other countries in the region, there are no entry barriers. If you're into real estate, what's not to like?

 

What has changed is not so much the fundamentals, nor even the demand. As Knight Frank points out, citing two recent developments, the market for high-end condominiums remains strong. "Both ViPod Residences and Quadro Residences have reportedly achieved 100 per cent and 96 per cent sales rates, respectively, indicating sustained demand for well-positioned high-end residences," the property consultancy says.

 

But last month saw the introduction of the latest round of cooling measures. Even though these are not as severe as in Hong Kong or Singapore, their weight "largely surprised" analysts, who were expecting a lighter touch, according to Empower Advisory.

 

The crux of these is the Real Property Gains Tax (RPGT), which imposes a 30 per cent levy on net gains of property disposed of within three years, for Malaysian nationals and foreigners alike. The minimum purchase price for foreigners has also been doubled - from 500,000 ringgit (HK$1.2 million) to 1 million - and the Developer Interest Bearing Scheme (DIBS), where developers used to incorporate interest rates on housing loans during the construction period, has been outlawed.

 

The aim, Empower Advisory says, is to encourage foreigners towards long-term investment in higher-value property, rather than speculation.

Nicholas Holt, Knight Frank's Asia-Pacific head of research, agrees that the RPGT "will dampen demand to some extent". But he also points to other factors - a number of obstacles to the Malaysian economy, and headwinds in the property market - which could lead to some correction this year. Inflation, for example, stands at 2.2 per cent - up from 1.8 per cent - adding rising cost pressures. An interest rate hike is expected this year, which may further dampen sentiment.

 

Siva Shanker, president of the Malaysian Institute of Estate Agents, says it's happening already. The market had come off the boil last year even before October's budget announcement, when sales "went into a tailspin" in response to the cooling measures. From 2010 to 2012, he says, prices in some areas went up by 20 to 35 per cent - a level of unprecedented growth which he says is "no good for anybody".

This was spurred by easy pickings: "all sorts of innovative schemes" by developers who would bundle 100 per cent of a property's purchase price, plus costs and interest-free periods, into an offer, enabling speculators to buy without putting any money upfront. "Literally without taking your wallet out, you bought a property, paid nothing until completion and - because the market was rising so fast - as soon as it was completed, you could flip it for a 20 to 30 per cent deal and walk away with money you made out of thin air."

 

This was neither sustainable nor healthy, Shanker says. "The fundamentals cannot hold that sort of growth. If we'd carried on at that level, the market was going to crash - inevitably, the proverbial bubble would burst."

 

Shanker "fully supports" the latest tightening measures following the stringent Responsible Lending Guidelines introduced in 2012, which he believes will result in a quiet period for sales for at least the first two quarters of this year, followed by a "small hump" when the GST is introduced in April next year. Beyond that, his view is that the market will consolidate in 2015, "and my opinion is that we will hit a high in 2016".

 

He also expects that 2014/15 will see a shift away from new properties to the secondary market. "There are plenty of properties with much lower prices, just looking for an owner," he says.

 

Developers face a tougher sell this year, but if he was a buyer, Shanker would "certainly" look at the secondary market. "The days of being able to buy a property without putting any money down and, in two years, selling it for a 30 per cent profit - those days are absolutely over. As the market continues to mature in Malaysia, I think we will see less of these sporadic spurts of growth, and more steady, quiet growth."

Tongue in cheek, Shanker calls this "organic growth versus orgasmic growth". "We won't have any more orgasmic growth, where everything shoots up in a couple of years, but nice, steady growth of between 5 and 10 per cent per year, which is beautiful - a healthy way of making money in property, and it's sustainable in the longer term."

 

Knight Frank agrees that while the outlook remains "challenging" for now, opportunities still hold for the longer term. "[Malaysia] remains as an attractive investment destination in the region due to its stable property market and relative lower housing prices that continue to offer reasonable returns," says Judy Ong Mei-chen, executive director. While transaction volume may well decrease, growth can still be expected in selected "hot spots" due to limited supply, scarcity of land, and sustained localised demand from owner-occupiers and upgraders.

==

> http://www.scmp.com/property/international/article/1430401/cooling-trend-malaysia