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New developments to share
- Thread starter wuqi256
- Start date
No more cheap landed housing for foreigner. Door closed.
The sleeping dragon has awakened...
Good thing I "jop" my cheap landed property before the year is up, otherwise must kiss goodbye to JB property liao.
When I was making balance payment at Tan & Lee in late August the boss there already said confirm state consent and minimum sum will go up, so good time that I bought property this year. So for those who have already begun the purchase process I wish you godspeed!
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No more cheap landed housing for foreigner. Door closed.
The sleeping dragon has awakened...
I thought the minimum Rm1m is regardless whether condo or landed? So like that also no more cheap condo for foreigners. Door closed.
I thought the minimum Rm1m is regardless whether condo or landed? So like that also no more cheap condo for foreigners. Door closed.
jie jie, i think hor they may revert for condo. so i just put "landed".
Good thing I "jop" my cheap landed property before the year is up, otherwise must kiss goodbye to JB property liao.
When I was making balance payment at Tan & Lee in late August the boss there already said confirm state consent and minimum sum will go up, so good time that I bought property this year. So for those who have already begun the purchase process I wish you godspeed!
haha..... noticed u fast leg fast hand. 快手快脚..
I was with Steven Tan of Skybridge and Ryan Khoo of Alpha Marketing just now. They briefly discussed their sentiments on how the 3 new measures (1. higher entry price, 2. no DIBS and 3. higher RGPT) could impact the market. If you think it's worth your time, I'm offering my views too.
1. Higher Entry Price
The higher entry price of RM1m is surely to impact those investors who bought at the lower end of RM500k to RM1m price range (i.e. RM500k to RM600k). They can't sell to foreigners in 2 months time, and with the intended stabilization of the lower-end market due to these new curbs and the announcement of 224,000 affordable housing being planned to be built starting 2014, this group will be in trouble, especially if they can't hold long time.
For those who bought towards the higher end of that bracket (e.g. RM800k to RM900k), there could be good news. Firstly, developers will raise their prices to RM1m (whether they give rebates thereafter to offset the price is another debate). Then, the secondary market will likely follow suit. With enough market force, there could bring about a price appreciation for the properties in this price bracket.
All these will bring good news for citizens. It will be a buyers' market for them.
Another group which may gain from this measure are the Medini property owners. Ryan, who is known to be very pro Iskandar, agreed that foreigners who cannot fork out RM1m will only have Medini left on their radar scope. And those smaller units which command smaller quantum will stand to benefit most. Too bad no Medini owners could sell yet.
What will happen to the remaining 2 groups - a. those who bought in the region of RM750k and b. those who bought in excess of RM1m? Well, for a., it's as good as anyone's guess. If the bullish momentum for the property market sustains, then potentially, they may reap at least a 33% profit when they sell at RM1m. But they could very well be stuck without a foreign buyer. So, I think the future may be a bit cloudy for this group, especially for those who bought outside the locals "catchment" area. For b, there shouldn't be much impact. They will still have to wait for that small pool of wealthy buyers.
Lastly, specific to this measure, I think we may see a trend for developers in Iskandar to start building bigger apartments, like in Penang. I substantiate this statement by doing a quick, hardly scientific check using PropertyGuru. A search of RM500k to RM1m housing in Penang yielded 21995 properties, of which only 3901 or 17.7% are smaller than 1000sqft in size. In Johor, the same search yielded a ratio of 26.4% for RM500k to RM1m housing sized 1000sqft or smaller. So if Penang is the indicator, we should find lesser smaller units being offered in the future. Would this mean more demand for smaller units in Iskandar? Yes. But remember that they can only be sold to locals.
2. No more DIBS
Well, judging from the creativity of Malaysian developers, this will just be a temporary setback. Both Steven and Ryan thought the developers will offer some form of rebates or offer a higher discount from the purchase price. In any case, DIBS had mostly been priced in in the first place.
My opinion is that this measure will hurt 2 groups - c. small-fry investors who don't have a fat enough pay check, and d. genuine first-time local buyers. For c., it's obvious they have to start paying the moment they sign the SPA or when piling starts (unless the developer's creative work-around entails monthly rebates). They also won't likely be able to flip immediate upon VP due to the raised RGPT. It's better for this group to work out their sums carefully. For d, this group are young local families struggling to pay their rent and car loan, and depended on DIBS to tide them through for 3 years until their salary is higher. Now, they may be better off saving for that 3 years and buying from the secondary market.
In the immediate term (now till 31 Dec 2013), the developers and law firms would start canceling their staffs' year-end leave so as to process the back-log of SPA. Those who recently bought with DIBS should chase the developer to sign your SPA within the next 65 days. Those who are thinking of buying with DIBS will have to reconsider with the near certainty of not getting DIBS SPA process in time.
3. Higher RGPT
For foreigners who bought 4 - 5 years ago, there should be minimal impact. The 5% RGPT from the 6th year onwards is considered negligible after factoring all the deductibles. But for those who bought 3 years ago, they should consider to hold on for another 2 years, unless they can sell tomorrow and process the SPA by year's end, which I think is impossible. For those who bought more recently and are banking on flipping come VP, they have to reconsider and make sure that they have sufficient holding power for another 2 years. I won't know by then (2018) will there be another round of RGPT increase, but as of now, this should be the best strategy. Besides, 2018 will be when all the promised infrastructure are delivered or at least closer to fruition, so it should help in the appreciation of captial.
Well, these are our preliminary thoughts. Like I always qualify, what I wrote cannot be taken as expert advice; it's only worth 2 cents. I'm sure there will be disagreement from my quick analysis, but such is the beauty of a forum like this where everyone offers their view.
All the best to those who have invested! Till Budget 2015!
1. Higher Entry Price
The higher entry price of RM1m is surely to impact those investors who bought at the lower end of RM500k to RM1m price range (i.e. RM500k to RM600k). They can't sell to foreigners in 2 months time, and with the intended stabilization of the lower-end market due to these new curbs and the announcement of 224,000 affordable housing being planned to be built starting 2014, this group will be in trouble, especially if they can't hold long time.
For those who bought towards the higher end of that bracket (e.g. RM800k to RM900k), there could be good news. Firstly, developers will raise their prices to RM1m (whether they give rebates thereafter to offset the price is another debate). Then, the secondary market will likely follow suit. With enough market force, there could bring about a price appreciation for the properties in this price bracket.
All these will bring good news for citizens. It will be a buyers' market for them.
Another group which may gain from this measure are the Medini property owners. Ryan, who is known to be very pro Iskandar, agreed that foreigners who cannot fork out RM1m will only have Medini left on their radar scope. And those smaller units which command smaller quantum will stand to benefit most. Too bad no Medini owners could sell yet.
What will happen to the remaining 2 groups - a. those who bought in the region of RM750k and b. those who bought in excess of RM1m? Well, for a., it's as good as anyone's guess. If the bullish momentum for the property market sustains, then potentially, they may reap at least a 33% profit when they sell at RM1m. But they could very well be stuck without a foreign buyer. So, I think the future may be a bit cloudy for this group, especially for those who bought outside the locals "catchment" area. For b, there shouldn't be much impact. They will still have to wait for that small pool of wealthy buyers.
Lastly, specific to this measure, I think we may see a trend for developers in Iskandar to start building bigger apartments, like in Penang. I substantiate this statement by doing a quick, hardly scientific check using PropertyGuru. A search of RM500k to RM1m housing in Penang yielded 21995 properties, of which only 3901 or 17.7% are smaller than 1000sqft in size. In Johor, the same search yielded a ratio of 26.4% for RM500k to RM1m housing sized 1000sqft or smaller. So if Penang is the indicator, we should find lesser smaller units being offered in the future. Would this mean more demand for smaller units in Iskandar? Yes. But remember that they can only be sold to locals.
2. No more DIBS
Well, judging from the creativity of Malaysian developers, this will just be a temporary setback. Both Steven and Ryan thought the developers will offer some form of rebates or offer a higher discount from the purchase price. In any case, DIBS had mostly been priced in in the first place.
My opinion is that this measure will hurt 2 groups - c. small-fry investors who don't have a fat enough pay check, and d. genuine first-time local buyers. For c., it's obvious they have to start paying the moment they sign the SPA or when piling starts (unless the developer's creative work-around entails monthly rebates). They also won't likely be able to flip immediate upon VP due to the raised RGPT. It's better for this group to work out their sums carefully. For d, this group are young local families struggling to pay their rent and car loan, and depended on DIBS to tide them through for 3 years until their salary is higher. Now, they may be better off saving for that 3 years and buying from the secondary market.
In the immediate term (now till 31 Dec 2013), the developers and law firms would start canceling their staffs' year-end leave so as to process the back-log of SPA. Those who recently bought with DIBS should chase the developer to sign your SPA within the next 65 days. Those who are thinking of buying with DIBS will have to reconsider with the near certainty of not getting DIBS SPA process in time.
3. Higher RGPT
For foreigners who bought 4 - 5 years ago, there should be minimal impact. The 5% RGPT from the 6th year onwards is considered negligible after factoring all the deductibles. But for those who bought 3 years ago, they should consider to hold on for another 2 years, unless they can sell tomorrow and process the SPA by year's end, which I think is impossible. For those who bought more recently and are banking on flipping come VP, they have to reconsider and make sure that they have sufficient holding power for another 2 years. I won't know by then (2018) will there be another round of RGPT increase, but as of now, this should be the best strategy. Besides, 2018 will be when all the promised infrastructure are delivered or at least closer to fruition, so it should help in the appreciation of captial.
Well, these are our preliminary thoughts. Like I always qualify, what I wrote cannot be taken as expert advice; it's only worth 2 cents.
I'm sure there will be disagreement from my quick analysis, but such is the beauty of a forum like this where everyone offers their view. All the best to those who have invested! Till Budget 2015!
Hannor, looking back at the purchase process we are thankful that it took about less than 3 months after we have found the house we liked, and we have already moved over much of our stuff even as renovation is going on. You may not believe this but the decision to buy into JB was only made in June! All thanks to expensive HDB jumbo flats.
No more cheap landed housing for foreigner. Door closed.
The sleeping dragon has awakened...
neh'mine. singapore high rise better. ackcherly ... really not miss much. relax. cannot buy cannot buy la! no big deal.
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haha.. must think hard a abit, then know my implication lor. go limkopi liao..tata
Good analysis of the new measures. Property prices will certainly move up since construction cost will increase due to 6% GST from April 2015. Things will not be cheap in Malaysia anymore.
I was with Steven Tan of Skybridge and Ryan Khoo of Alpha Marketing just now. They briefly discussed their sentiments on how the 3 new measures (1. higher entry price, 2. no DIBS and 3. higher RGPT) could impact the market. If you think it's worth your time, I'm offering my views too.
1. Higher Entry Price
The higher entry price of RM1m is surely to impact those investors who bought at the lower end of RM500k to RM1m price range (i.e. RM500k to RM600k). They can't sell to foreigners in 2 months time, and with the intended stabilization of the lower-end market due to these new curbs and the announcement of 224,000 affordable housing being planned to be built starting 2014, this group will be in trouble, especially if they can't hold long time.
For those who bought towards the higher end of that bracket (e.g. RM800k to RM900k), there could be good news. Firstly, developers will raise their prices to RM1m (whether they give rebates thereafter to offset the price is another debate). Then, the secondary market will likely follow suit. With enough market force, there could bring about a price appreciation for the properties in this price bracket.
All these will bring good news for citizens. It will be a buyers' market for them.
Another group which may gain from this measure are the Medini property owners. Ryan, who is known to be very pro Iskandar, agreed that foreigners who cannot fork out RM1m will only have Medini left on their radar scope. And those smaller units which command smaller quantum will stand to benefit most. Too bad no Medini owners could sell yet.
What will happen to the remaining 2 groups - a. those who bought in the region of RM750k and b. those who bought in excess of RM1m? Well, for a., it's as good as anyone's guess. If the bullish momentum for the property market sustains, then potentially, they may reap at least a 33% profit when they sell at RM1m. But they could very well be stuck without a foreign buyer. So, I think the future may be a bit cloudy for this group, especially for those who bought outside the locals "catchment" area. For b, there shouldn't be much impact. They will still have to wait for that small pool of wealthy buyers.
Lastly, specific to this measure, I think we may see a trend for developers in Iskandar to start building bigger apartments, like in Penang. I substantiate this statement by doing a quick, hardly scientific check using PropertyGuru. A search of RM500k to RM1m housing in Penang yielded 21995 properties, of which only 3901 or 17.7% are smaller than 1000sqft in size. In Johor, the same search yielded a ratio of 26.4% for RM500k to RM1m housing sized 1000sqft or smaller. So if Penang is the indicator, we should find lesser smaller units being offered in the future. Would this mean more demand for smaller units in Iskandar? Yes. But remember that they can only be sold to locals.
2. No more DIBS
Well, judging from the creativity of Malaysian developers, this will just be a temporary setback. Both Steven and Ryan thought the developers will offer some form of rebates or offer a higher discount from the purchase price. In any case, DIBS had mostly been priced in in the first place.
My opinion is that this measure will hurt 2 groups - c. small-fry investors who don't have a fat enough pay check, and d. genuine first-time local buyers. For c., it's obvious they have to start paying the moment they sign the SPA or when piling starts (unless the developer's creative work-around entails monthly rebates). They also won't likely be able to flip immediate upon VP due to the raised RGPT. It's better for this group to work out their sums carefully. For d, this group are young local families struggling to pay their rent and car loan, and depended on DIBS to tide them through for 3 years until their salary is higher. Now, they may be better off saving for that 3 years and buying from the secondary market.
In the immediate term (now till 31 Dec 2013), the developers and law firms would start canceling their staffs' year-end leave so as to process the back-log of SPA. Those who recently bought with DIBS should chase the developer to sign your SPA within the next 65 days. Those who are thinking of buying with DIBS will have to reconsider with the near certainty of not getting DIBS SPA process in time.
3. Higher RGPT
For foreigners who bought 4 - 5 years ago, there should be minimal impact. The 5% RGPT from the 6th year onwards is considered negligible after factoring all the deductibles. But for those who bought 3 years ago, they should consider to hold on for another 2 years, unless they can sell tomorrow and process the SPA by year's end, which I think is impossible. For those who bought more recently and are banking on flipping come VP, they have to reconsider and make sure that they have sufficient holding power for another 2 years. I won't know by then (2018) will there be another round of RGPT increase, but as of now, this should be the best strategy. Besides, 2018 will be when all the promised infrastructure are delivered or at least closer to fruition, so it should help in the appreciation of captial.
Well, these are our preliminary thoughts. Like I always qualify, what I wrote cannot be taken as expert advice; it's only worth 2 cents.
All the best to those who have invested! Till Budget 2015!
Back in the good old day at "skyscraper city.com"
I always mentioned "kopi index". It refer to price of a cup of coffee will move together with the price of property in that country.
http://www.thestar.com.my/News/Nation/2013/10/25/Budget-2014-reax-GST-sugar.aspx
Malaysia Govt is removing the sugar subsidy; "kopi index" in Malaysia will sky rocket.
The raise in GST will make cost of construction to shoot up; it will force the construction companies and property developers to adjust their price up.
http://www.thestar.com.my/Business/...en-in-the-nearterm-with-anticipated-hike.aspx
RPGT will affect flippers, whom are toxic to property market.
Like I always say; Govt cannot stop a bull run. They can only crash it.
All the measures do not look like it will crash the property market; so let's party.
I always mentioned "kopi index". It refer to price of a cup of coffee will move together with the price of property in that country.
http://www.thestar.com.my/News/Nation/2013/10/25/Budget-2014-reax-GST-sugar.aspx
Malaysia Govt is removing the sugar subsidy; "kopi index" in Malaysia will sky rocket.
The raise in GST will make cost of construction to shoot up; it will force the construction companies and property developers to adjust their price up.
http://www.thestar.com.my/Business/...en-in-the-nearterm-with-anticipated-hike.aspx
RPGT will affect flippers, whom are toxic to property market.
Like I always say; Govt cannot stop a bull run. They can only crash it.
All the measures do not look like it will crash the property market; so let's party.
I have just reviewed the current supply and demand situation, and crunched some numbers, for terraces and clusters $7xx-9xxk RM price range and above. My conclusion is the measures are overall actually quite positive. Expect a price increase between 10-20% by 1 Apr 2015.
I can imagine the construction materials (e.g. bricks, cement) suppliers pay 6% tax on their raw materials (round one increase), then developers pay 6% tax on the construction materials (round two increase). The more middle-men there are, the more expensive the property will get. It is definitely way above 6% increase due to knock-on effects down the supply chain.
It a positive thing. Less obesity and diabetic. Sugar is bad for you.
In the singapore context, companies can claim back the GST they paid, so their costs actually stay the same. GST has no effect on the ppties prices since residential ppties are exempt from GST ?
But you cant flip your houses to foreigners any more. Even if they are willing to pay RM 1m, the state valuation may be less. So no-go. I will just market my property in MY instead to target local buyers. Forget abt SG agents, unless they can get PRs buyers who work in SG. I don't want a case of a foreigner willing to pay RM1m, only for the deal to be scuppered 3-5 months later, due to state valuation < RM 1m.
I expect to see more (28 x 90) 3-storey terraces to be launched in MY as a counter-measure soon.....
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