Property News

[sgtsk]

Today, I could already hear the sloshing sound of early waves of funds hitting the shore of singapore. The ripples probably came in yesterday.

 

[sgcount]

Good news for property buyers as more and more companies move to Iskandar Puteri SiLC?

 

[eric3417]

It's certainly good news but not yet time count chickens for Nusajaya esp. This part of Iskandar is still at Infancy stage in terms of developments & economic performance. Not to mention demographics yet to be established. But the mid to long term looks decent/bright.

 

[FHBH12]

Demand for landed properties still good in Iskandar
BY ZAZALI MUSA

Wednesday, 22 June 2016

JOHOR BARU: Demand for landed residential properties is still good in Iskandar Malaysia as domestic and foreign property buyers still preferred landed properties over high-rise living.

SP Setia Bhd (Property South) divisional general manager Stanley Saw said the progress and development taking place in the country’s first economic growth corridor was the main attraction to buyers.

He said the property outlook in Iskandar Malaysia remained attractive and developers were still launching their projects despite the challenges and uncertainties in the global economy.

“The influx of domestic and foreign investors and new residents into Iskandar Malaysia will continue to drive demand for properties in south Johor,’’ said Saw.

He said this in a press conference during the SP Setia World Environment Day 2016 – themed “My Better World” held at SK Felda Bukit Permai in Sedenak about 90km from Johor Baru.

Saw said the company would be launching its landed residential properties in Bukit Indah II comprising about 400 units of houses on 16.18ha in the 607.02ha Bukit Indah township.

He said the gated and guarded project would be completed in two or three phases with a gross development value (GDV) of RM300mil.

“We will be launching 183 units of the double-storey terrace houses probably in August with an indicative pricing of between RM670,00 and RM900,000 each,’’ said Saw.

He said there were 110 units of the 20 ft by 70 ft and 73 units of the 22 ft by 75 ft double-storey houses with a floor area of between 1,900 sq ft and 2,000 sq ft.

Also to be launched this year were two commercial mixed development projects on 4.45ha and 8.09ha sites in the Bukit Indah business area.

“There will be a hotel, a retail not discounting a stand-alone shopping complex and both projects have a combined GDV of RM1bil,’’ he said.

Saw said the company would also be launching 352 units of landed residential properties under the Rumah Mampu Milik Johor (RMMJ) in Setia Eco Gardens Jalan Ulu Choh-Pontian priced RM139,000 each.

He said 380 units of the RMMJ at Setia Eco Gardens already handed over to the owners adding 490 units of RMMJ priced at RM150,000 would also be launched at the fringe of Setia Business Park II in Tebrau.

http://www.thestar.com.my/business/...for-landed-properties-still-good-in-iskandar/

 

[nitecrawllerr]

Saw said the company would also be launching 352 units of landed residential properties under the Rumah Mampu Milik Johor (RMMJ) in Setia Eco Gardens Jalan Ulu Choh-Pontian priced RM139,000 each.

He said 380 units of the RMMJ at Setia Eco Gardens already handed over to the owners adding 490 units of RMMJ priced at RM150,000 would also be launched at the fringe of Setia Business Park II in Tebrau.

http://www.thestar.com.my/business/...for-landed-properties-still-good-in-iskandar/

Wow. So affordable at M$139k and M$150K only.

My 22 x 75 should also be considered low cost unit. But selling at M$550K (Intl lot):(

 

[Manhattan]

Wow. So affordable at M$139k and M$150K only.

My 22 x 75 should also be considered low cost unit. But selling at M$550K (Intl lot):(

Cold front is coming.

http://www.businesstimes.com.sg/rea...mal-first-day-sales-of-about-20-units-amended

 

[FHBH12]

Cold front is coming.

http://www.businesstimes.com.sg/rea...mal-first-day-sales-of-about-20-units-amended

This EC location is particularly bad hence the demand is bad. These are the greedy developers buying up EC land from government at high psf without doing due diligence. It was obvious SG was going into EC over supply mode in 2013. The market could take another 2-3 years to digest the oversupply units.

The more worrying part is China, Europe and US slowdown will hit regional growth badly. MY may slowdown from 4% growth to 3% growth next year. SG may slowdown from 2% growth to 0% next year. Then we will see more retrenchments and property firesales.

Cash is king now.

 

[mpan12]

This EC location is particularly bad hence the demand is bad. These are the greedy developers buying up EC land from government at high psf without doing due diligence. It was obvious SG was going into EC over supply mode in 2013. The market could take another 2-3 years to digest the oversupply units.

The more worrying part is China, Europe and US slowdown will hit regional growth badly. MY may slowdown from 4% growth to 3% growth next year. SG may slowdown from 2% growth to 0% next year. Then we will see more retrenchments and property firesales.

Cash is king now.

The mess created by the PAP government under the rule of Lee Hsien Loong.

ECs are no longer as attractive as 10-15 years ago. Once you flood the market with too many of something, it no longer becomes special. This has happened to Iskandar residential properties. Now it's happening to Singapore. It makes people avoid them and they start questioning if things will be worse instead. It's like if char kway trow is your favourite food. You eat it every day, every meal, on the last day, you feel like puking at the sight of it!

You can't really blame the developers. In the first place, why is the government releasing so many land parcels for ECs? There are already so many private condos to choose from. Moreover, people have been waiting in line for BTO flats since 2007. Even till today, I've already heard recently of 3 cases where Singaporeans have failed their BTO flat bidding for at least 5 times! Something is wrong.

If these ECs had been sites for more BTO flats instead, this would not have happened. With ECs, obviously HDB has an easier job of not building flats, while tempting unsuspecting Singaporeans to chain themselves to higher housing loans after failing many times to bid for HDB flats. The crafty, greedy government can also earn much more money from land sales.

 

[FHBH12]

The mess created by the PAP government under the rule of Lee Hsien Loong.

ECs are no longer as attractive as 10-15 years ago. Once you flood the market with too many of something, it no longer becomes special. This has happened to Iskandar residential properties. Now it's happening to Singapore. It makes people avoid them and they start questioning if things will be worse instead. It's like if char kway trow is your favourite food. You eat it every day, every meal, on the last day, you feel like puking at the sight of it!

You can't really blame the developers. In the first place, why is the government releasing so many land parcels for ECs? There are already so many private condos to choose from. Moreover, people have been waiting in line for BTO flats since 2007. Even till today, I've already heard recently of 3 cases where Singaporeans have failed their BTO flat bidding for at least 5 times! Something is wrong.

If these ECs had been sites for more BTO flats instead, this would not have happened. With ECs, obviously HDB has an easier job of not building flats, while tempting unsuspecting Singaporeans to chain themselves to higher housing loans after failing many times to bid for HDB flats. The crafty, greedy government can also earn much more money from land sales.

The land price paid by an EC developer is determined by open tender. Money from land sales are locked into our reserve IIRC. BTOs are also getting oversupplied. Both EC and BTO oversupplies are a political decision if you follow the news closely.

 

[mpan12]

The land price paid by an EC developer is determined by open tender. Money from land sales are locked into our reserve IIRC. BTOs are also getting oversupplied. Both EC and BTO oversupplies are a political decision if you follow the news closely.

Precisely because it's an open tender that's how the government is making money. Once you have a tender, highest bidder wins. If the land is decidedly reserved for BTO flats, there won't be any tender.

The oversupply of BTO flats is not as bad as ECs. And it's a worse off condition to have more ECs than BTO flats. There is a higher target market for flats than ECs.

 

[FHBH12]

Precisely because it's an open tender that's how the government is making money. Once you have a tender, highest bidder wins. If the land is decidedly reserved for BTO flats, there won't be any tender.

The oversupply of BTO flats is not as bad as ECs. And it's a worse off condition to have more ECs than BTO flats. There is a higher target market for flats than ECs.

Most HDBs dwellers tend to want to upgrade to condos or landed to raise their social status (Department of Statistics had done some studies on this). ECs are meant to bridge the gap for the lower middle income group to fulfill the dream (refer to news release from 2012-2015). This oversupply is meant to keep prices in check and take care of unforeseen surge in demand. ECs costs are borne by developers so they have to absorb losses if they miscalculate.

When the government makes money from land sales, the revenue is kept as buffer for future generations. You need to good government to ensure that nobody else touches this money unless the President unlocks the reserve (it is being unlocked in recent years due to aging population and low GDP growth).

IMHO current housing policies are tweaked and are fine now.

 

[xebay11]

Demand for landed properties still good in Iskandar
BY ZAZALI MUSA

Wednesday, 22 June 2016

JOHOR BARU: Demand for landed residential properties is still good in Iskandar Malaysia as domestic and foreign property buyers still preferred landed properties over high-rise living.

SP Setia Bhd (Property South) divisional general manager Stanley Saw said the progress and development taking place in the country’s first economic growth corridor was the main attraction to buyers.

He said the property outlook in Iskandar Malaysia remained attractive and developers were still launching their projects despite the challenges and uncertainties in the global economy.

“The influx of domestic and foreign investors and new residents into Iskandar Malaysia will continue to drive demand for properties in south Johor,’’ said Saw.

He said this in a press conference during the SP Setia World Environment Day 2016 – themed “My Better World” held at SK Felda Bukit Permai in Sedenak about 90km from Johor Baru.

Saw said the company would be launching its landed residential properties in Bukit Indah II comprising about 400 units of houses on 16.18ha in the 607.02ha Bukit Indah township.

He said the gated and guarded project would be completed in two or three phases with a gross development value (GDV) of RM300mil.

“We will be launching 183 units of the double-storey terrace houses probably in August with an indicative pricing of between RM670,00 and RM900,000 each,’’ said Saw.

He said there were 110 units of the 20 ft by 70 ft and 73 units of the 22 ft by 75 ft double-storey houses with a floor area of between 1,900 sq ft and 2,000 sq ft.

Also to be launched this year were two commercial mixed development projects on 4.45ha and 8.09ha sites in the Bukit Indah business area.

“There will be a hotel, a retail not discounting a stand-alone shopping complex and both projects have a combined GDV of RM1bil,’’ he said.

Saw said the company would also be launching 352 units of landed residential properties under the Rumah Mampu Milik Johor (RMMJ) in Setia Eco Gardens Jalan Ulu Choh-Pontian priced RM139,000 each.

He said 380 units of the RMMJ at Setia Eco Gardens already handed over to the owners adding 490 units of RMMJ priced at RM150,000 would also be launched at the fringe of Setia Business Park II in Tebrau.

http://www.thestar.com.my/business/...for-landed-properties-still-good-in-iskandar/

Again to repeat, if want to buy in Johor, buy landed. Condos are too much of a maintenance nightmare and beyond owner's control.

 

[mpan12]

Most HDBs dwellers tend to want to upgrade to condos or landed to raise their social status (Department of Statistics had done some studies on this). ECs are meant to bridge the gap for the lower middle income group to fulfill the dream (refer to news release from 2012-2015). This oversupply is meant to keep prices in check and take care of unforeseen surge in demand. ECs costs are borne by developers so they have to absorb losses if they miscalculate.

When the government makes money from land sales, the revenue is kept as buffer for future generations. You need to good government to ensure that nobody else touches this money unless the President unlocks the reserve (it is being unlocked in recent years due to aging population and low GDP growth).

IMHO current housing policies are tweaked and are fine now.

There are private condos. If HDB flat dwellers want to upgrade, they can consider these condos.

ECs are fine if the numbers are kept in check. The problem is the huge oversupply that has come up. That is a strong example of greed by the government. It's the same with the DBSS scheme. It was only after citizens pleaded with the government for years to remove it that they listened. This is especially after they had lost the most votes in GE2011. Otherwise, the situation could have been worse. We would see a lot more HDB resale flats in the S$1million region.

Having an oversupply is not a good way to keep things in check. It offsets the balance of property prices. If not done correctly, a property bubble may happen. Just have another big financial crisis where many lose their jobs. I am sure many who bought their SG properties in 2013-2016 will be in trouble.

I beg to differ and feel the housing policies can be better improved. For eg, new EC projects should be scrapped. At least for the next few years.

 

[mpan12]

Again to repeat, if want to buy in Johor, buy landed. Condos are too much of a maintenance nightmare and beyond owner's control.

I thought condos are easier to maintain because they are smaller and owners pay maintenance fees?

Landed is so much bigger in size. You got to take care of the grass, roof, water leaking, etc. Easier for break-ins also.

 

[Frodo]

I thought condos are easier to maintain because they are smaller and owners pay maintenance fees?

Landed is so much bigger in size. You got to take care of the grass, roof, water leaking, etc. Easier for break-ins also.

I believe he was talking more about holding value of landed versus condo.

 

[Manhattan]

If the developer cannot finish selling all the units, are they obliged to pay the maintenance fees for the units they are holding? Say they have 100 unsold units, they will have to pay maintenance for all those units even after the 1 years free maintenance period right?

 

[eric3417]

Pioneer Gen Package, CPF Life, Major Infra expansion, Temasek losses etc all cost $.
So COE & Land sales = Cash Cow cannot stop. Anyway they planning for next stage of recruitments!
From 2017 onwards i believe more FT/PR/New Citizens will be coming in. By 2020 should Mop up the excess units.

 

[sgcount]

I happened to see this forum

http://www.iproperty.com.my/iexpert/Question.aspx?ID=1687

This was posted by someone:

"I'm a condo unit owner in KL. The JMB in my condo has increased the maintenance charges recently. The last 4 years, the old rate was imposed but some of the condo common facilities like gym and sauna are not functional for more than 4 years. Also, the increase is partly due to other owners not paying any maintenance therefore there's a shortfall in monthly expenses.On top of the increase, there's an additional sinking fund to cover the non-payers. My question is, since some of the common facilities (ie: gym,sauna) are not funtionable, do I have the right not to pay the increase of the maintenance?"

I do have some questions. Wonder if some can help here.

1. Is it really possible that for more than 4 years, things break down in a condo and yet the management can choose not to repair them?!

2. Are owners of condos not legally obliged to pay maintenance fees?

3. I didn't know there is a "sinking fund" to be paid that is separate from the maintenance fee. How much does the sinking fund usually cost?

Thanks.

 

[snowbird]

I happened to see this forum

http://www.iproperty.com.my/iexpert/Question.aspx?ID=1687

This was posted by someone:

"I'm a condo unit owner in KL. The JMB in my condo has increased the maintenance charges recently. The last 4 years, the old rate was imposed but some of the condo common facilities like gym and sauna are not functional for more than 4 years. Also, the increase is partly due to other owners not paying any maintenance therefore there's a shortfall in monthly expenses.On top of the increase, there's an additional sinking fund to cover the non-payers. My question is, since some of the common facilities (ie: gym,sauna) are not funtionable, do I have the right not to pay the increase of the maintenance?"

I do have some questions. Wonder if some can help here.

1. Is it really possible that for more than 4 years, things break down in a condo and yet the management can choose not to repair them?!

2. Are owners of condos not legally obliged to pay maintenance fees?

3. I didn't know there is a "sinking fund" to be paid that is separate from the maintenance fee. How much does the sinking fund usually cost?

Thanks.

First, you need to know another hard facts - building maintenance quality in JB is rather sub-standard.
As for condo maintenance, it is quite common that many tenants are not up-to-date on payment, resulting in even poorer maintenance condition due to lack of funds.
Sinking fund is always part of the maintenance fee, so if maintenance fee are not fully collectable, then expect rundown facilities to remain rundown for a long time.

 

[Manhattan]

Easier money caused the property stocks to rally.

http://www.thestar.com.my/business/...4/property-stocks-rally-on-interest-rate-cut/