Time for Malaysians get back at property developers - force prices down!

Tan Sri Abdul Rahim Abdul Rahman, executive chairman of Rahim & Co, noted that the prices had fallen in a span of just a few years for high-end residences. ― Picture by Ahmad Zamzahuri
In KL, luxury property prices nosedive
BY IDA LIM
Monday February 12, 2018
06:04 PM GMT+8
KUALA LUMPUR, Feb 12 — Luxury residences in the prime property area surrounding KLCC are no longer selling at prices as high as RM2,500 per square foot, but are now being sold at prices below RM1,800, a property consultancy firm has said. Tan Sri Abdul Rahim Abdul Rahman, executive chairman of Rahim & Co, noted that the prices had fallen in a span of just a few years for high-end residences … for more, go to http://www.themalaymailonline.com/malaysia/article/in-kl-luxury-property-prices-nosedive

Time for Malaysians get back at property developers - force prices down!

It was revealed that only 1% of property sales in 2017 went to foreigners - and this is why there is a property glut in Malaysia.

High end properties that cost RM800,000 and above are the most affected.

“One of the reasons why property prices in Malaysia are beyond the reach of Malaysians, even so-called affordable houses, is due to the artificial demand created by foreigners,” Gerakan Deputy Speaker Syed Abdul Razak Alsagoff said.

“Developers’ greed for insane profits led them to raise property prices and to concentrate on the high end market.

“Property then became not affordable anymore to Malaysians. Now that the foreigners have turned the market cold, property developers are left in the lurch,” he added.

On the rise: Savills Malaysia’s latest Asian Cities report said there were 21,069 luxury residential units priced above RM800 per sq ft in Kuala Lumpur as of end-2014. This represents a 21 increase year-on-year.
Luxury condo market to remain subdued
BUSINESS NEWS
Saturday, 29 Aug 2015
by eugene mahalingam
AN oversupply situation, as well as cautious buyer sentiment will see the luxury condominium segment remain subdued for the rest of the year. According to Savills Malaysia’s latest Asian Cities report, there were 21,069 luxury residential units priced above RM800 per sq ft in Kuala Lumpur as of end-2014. This represents a 21% increase year-on-year … for more, go to https://www.thestar.com.my/business/business-news/2015/08/29/luxury-condo-market-to-remain-subdued/ 

Syed Razak, who is Gerakan’s nominee to contest N.37 Bukit Lanjan in the coming 14th General Election (GE14), said the “stressed out” domestic and global economies made worse by inflation had affected the buying power of Malaysians.

“But not all is lost. Malaysians must remain resilient and to force property price down to a more reasonable level before buying.

“Property developers will then have no choice but to lower their prices when supply outstrips demand. It’s now a buyers’ market,” he added.

Here’s what online news portal Free Malaysia Today (FMT) posted:

"March 29, 2018

Only 1% of property sales in 2017 went to foreigners

Robin Augustin

The RM100 billion Forest City development in Johor is a prime example of Chinese nationals pouring money into property projects in Malaysia.

PETALING JAYA: Only 1% of the total property transactions in 2017 involved sales to foreigners, refuting claims of a mass sale of Malaysian properties to Chinese buyers.

At a press conference today, Real Estate and Housing Developers Association Malaysia (Rehda) president FD Iskandar Mohamed Mansor said the 1% figure was based on National Property Information Centre (Napic) numbers.

Valuation and Property Services Department (JPPH) director-general Nordin Daharom had been reported as estimating some 300,000 property transactions for 2017.

Iskandar said a few years ago, a number of properties were sold to foreigners, particularly in Johor and Sabah.

“Since 2016, one of the biggest sources of foreign buyers has been Chinese nationals, but in 2017, Beijing initiated capital controls,” he said, adding that this had dampened purchases by Chinese homebuyers.

In recent times, Chinese nationals have poured money into property projects in Malaysia, most notably in Johor, in ambitious projects like the RM100 billion Forest City mixed development.

Former prime minister Dr Mahathir Mohamad had claimed foreigners who bought properties in Forest City could live there forever and that there was no ruling to prevent them from eventually becoming citizens.

On the issue of maintenance of strata properties, Iskandar said joint management bodies must be firm in collecting maintenance fees, even from unoccupied units.

Previously, the National House Buyers Association (HBA) warned that the maintenance of properties could be affected if owners of unoccupied units didn’t pay their maintenance fees diligently.

Iskandar said developers would assume the cost of maintenance for the first 18 to 24 months.

“After that, the joint management body (JMB) must take proactive action. Whether a home is occupied or not, the owners must pay maintenance.”

To this end, he said Rehda Institute’s newly launched Strata Management Handbook would be helpful to JMBs or Management Corporations (MC), as it provided a comprehensive guide on strata living, including measures to ensure owners complied with the relevant laws.

According to Napic data, in the third quarter of 2017, there were 1.58 million residential strata units housing 20% of the country’s population.

Iskandar also said the main issues affecting strata properties in Malaysia, particularly in lower and middle category properties, included low maintenance collection and maintenance of common property such as lifts."

N.37 LET BUKIT LANJAN SOAR WITH SYED ABDUL RAZAK ALSAGOFF