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M'sian govt to double minimum property price for foreigners to RM1million?

Sweeve

Alfrescian
Loyal
Time to stock up on your M'sian property purchases?

http://biz.thestar.com.my/news/story.asp?file=/2012/4/10/business/11075217&sec=business

KUALA LUMPUR: The Government is considering raising the minimum floor prices of houses foreigners are allowed to buy to RM1mil from the current RM500,000 in an effort to control the rise in property prices, sources said.

They said such a decision was “in the pipeline” and the implementation would be made by the economic planning unit (EPU) under the Prime Minister's Department currently headed by Minister Tan Sri Nor Mohamed Yakcop.

“From what I understand, these revised guidelines have been discussed at the ministerial level and should this be enforced, it will mean that foreigners will only be allowed to buy properties priced above RM1mil. For now, the base price is set at RM500,000 for foreigners. This base price is a bit low looking at present circumstances,” a government source who requested anonymity said.

“The current trend in the property market indicates that prices are still continuing to climb despite measures by Bank Negara to curb property prices from spiralling out of control. We need to act before it goes further out of hand,” the Putrajaya source added.

Another source said the revised guidelines would also consider a slightly lower base price threshold of RM800,000 for residential properties in selected economic corridors such as Johor's Iskandar Malaysia to ensure the development and success of these corridor hotspots.

“This base price will also be subject to reviews by the Government from time to time depending on the inflationary situation of the economy and to keep overall inflation in check,” the source said.

Deputy Finance Minister Datuk Donald Lim had recently told the press that the Government would take “strict measures” to avoid a US subprime mortgage financial crisis after average house prices jumped almost 7% in the fourth quarter of last year despite measures announced by Bank Negara to rein in property prices.

“The Government is worried about property prices causing a bubble and we don't want banks to overlend to the property sector,” Lim said.

Industry sources surveyed by StarBiz said foreigners that tend to buy properties in Malaysia were those from South Korea, Japan, China and Singapore.

“This move will give an advantage to locals, especially those in the middle-income category as locals will not need to compete with foreigners. I am not surprised by this move, but our agency has so far seen mostly people from China and Singapore buying properties above RM1mil anyway,” a KL-based licensed real estate negotiator who did not want to be named said.

“However, we may see fewer transactions from the Koreans and Japanese. Westerners such as those from the United States and Europe won't usually buy. They prefer to rent instead,” the real estate negotiator added.

Meanwhile, the implementation of the higher floor price is expected to have a minimal impact on the property market in Malaysia as official statistics show that only 2.4% (worth RM1.45bil) of transactions conducted in the residential sector last year were worth RM1mil and more.

The Finance Ministry's Valuation and Property Services Department Property Market Report 2011 released last week showed there were 269,789 residential property transactions worth RM61.83bil transacted last year, the highest recorded in the last five years.

“Both volume and value recorded double-digit growth of 18.9% and 22.1% respectively. The All House Price Index surged to 156.9 points in the fourth quarter (Q4) of 2011 against 147.2 points registered in Q4 2010,” the report said.

The report said that landed housing was on a “general upward trend” in Malaysia and also attributed the rise in property prices to the Sungai Buloh-Kajang My Rapid Transit project.

“Across the board, terraced houses in KL recorded increases of 8%-13%. Increased prices of landed houses on Penang island were apparent. The highest transacted price of two- and three-storey detached (houses) were at RM2.05mil and RM5.15mil respectively,” the report said.
 

Cestbon

Alfrescian (Inf)
Asset
I dont think so from RM500k revised to RM1million.
More likely revised to RM600K~RM750k.
 

Ash007

Alfrescian
Loyal
Wouldn't this raise the property prices instead? Why would developers build low, average cost housing if they can get the one million development property going?
 

whoami

Alfrescian (Inf)
Asset
I really hope that they don't do this, at least not for Singaporeans who need a place to stay. :(

Yes bro. Time is really ticking away of my end. Make a call to Setia Eco. Corner lot already closing to 600K after discount. Oh, yes. Sales staff also remineded me of the min threshold increase...

Sighh.....:o
 

DREAMorACTION

Alfrescian
Loyal
Bro. U have looked long enough leh ... Action time. Btw, your first is not setia Eco right?

Yes bro. Time is really ticking away of my end. Make a call to Setia Eco. Corner lot already closing to 600K after discount. Oh, yes. Sales staff also remineded me of the min threshold increase...

Sighh.....:o
 

wuqi256

Moderator - JB Section
Loyal
I think at most likely they will put to 800k but i hope they won't as still people who will be hard pressed to afford even that. :(
 

wuqi256

Moderator - JB Section
Loyal
Yes bro. Time is really ticking away of my end. Make a call to Setia Eco. Corner lot already closing to 600K after discount. Oh, yes. Sales staff also remineded me of the min threshold increase...

Sighh.....:o

Hope it goes well for you. There are really many other areas beside Setia. (IMHO)
 

DREAMorACTION

Alfrescian
Loyal
I read elsewhere that statistically, in Malaysia as a whole, the % of transactions below 1 mil by foreigners are only 5 to 6% (dunno how true the statistic is)... That's why the impact is minimal ...This is especially true for prices in KL and Penang. A super condo in Penang crosses the 1 mil mark easily ... Needless to say about landed ...



I think at most likely they will put to 800k but i hope they won't as still people who will be hard pressed to afford even that. :(
 
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DREAMorACTION

Alfrescian
Loyal
Actually, thinking about it. If u look at MM2H, the hint hint of 1 mil property was already stated inside. Lower FD if u invest more than 1 mil in a property. So, indirectly, they have already been pushing for it, way before this recent news .... Hmmmm ....

I read elsewhere that statistically, in Malaysia as a whole, the % of transactions below 1 mil by foreigners are only 5 to 6% (dunno how true the statistic is)... That's why the impact is minimal ...This is especially true for prices in KL and Penang. A super condo in Penang crosses the 1 mil mark easily ... Needless to say about landed ...
 

RedsYNWA

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Loyal
Yes bro. Time is really ticking away of my end. Make a call to Setia Eco. Corner lot already closing to 600K after discount. Oh, yes. Sales staff also remineded me of the min threshold increase...

Sighh.....:o

Bro, I am v familiar with Setia. Their own staff are buying Setia Tropika. If you must choose a Setia property, I think Setia Tropika is the best value for money esp with EDL opening. As Bro Wuqi said, there are many other choices besides Setia. You may want to look at others; and I feel location should be your primary consideration. Cheers.
 

wuqi256

Moderator - JB Section
Loyal
Bro, I am v familiar with Setia. Their own staff are buying Setia Tropika. If you must choose a Setia property, I think Setia Tropika is the best value for money esp with EDL opening. As Bro Wuqi said, there are many other choices besides Setia. You may want to look at others; and I feel location should be your primary consideration. Cheers.

Finally, i have someone who knows the inside story.
So many things i cannot say, a promise is a promise. :smile:
 

cathylmg

Alfrescian
Loyal
This is what I get from ST facebook. If it comes true then 'Huat Ahh!' for all those who place their bets here:-

https://www.facebook.com/?sk=lf#!/photo.php?fbid=10150687194318233&set=o.24380398950&type=1&theater


Bro, I am v familiar with Setia. Their own staff are buying Setia Tropika. If you must choose a Setia property, I think Setia Tropika is the best value for money esp with EDL opening. As Bro Wuqi said, there are many other choices besides Setia. You may want to look at others; and I feel location should be your primary consideration. Cheers.
 

whoami

Alfrescian (Inf)
Asset

Tks for sharing...

Sis, I can't seem to load the page. Mind sharing in greater details please? Thanks

It works for me. Try again...

Bro, I am v familiar with Setia. Their own staff are buying Setia Tropika. If you must choose a Setia property, I think Setia Tropika is the best value for money esp with EDL opening. As Bro Wuqi said, there are many other choices besides Setia. You may want to look at others; and I feel location should be your primary consideration. Cheers.

Agree. Teres other options too. Only the distance/location. Staffs buying their co unit...is a sign of confidence ya

Finally, i have someone who knows the inside story.
So many things i cannot say, a promise is a promise. :smile:

Maybe our bro RedsYNWA sits at the Directors board ya..:smile:
 
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westcoastbay

Alfrescian
Loyal
Bro, I am v familiar with Setia. Their own staff are buying Setia Tropika. If you must choose a Setia property, I think Setia Tropika is the best value for money esp with EDL opening. As Bro Wuqi said, there are many other choices besides Setia. You may want to look at others; and I feel location should be your primary consideration. Cheers.

Sky Gardens Residences. Setia serviced apartments good?
 
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