/// East Malaysia Property News
Property Prices May See Mixed Outlook
Miri, Sarawak
Property prices are expected to
have a mixed outlook this year,
with some positive news for those
looking to purchase their first house.
Sarawak Housing and Real Estate
Developers’ Association (SHEDA)
secretary-general Sim Kiang
Chiok said the government is
implementing various measures
to slow down the pace of property
price increases.
He said the Real Properties Gain
Tax (RGPT) introduced this year
would deter speculators, while
the prohibition of projects that
have features of the Developer
Interest Bearing Scheme (DIBS)
would prevent developers from
incorporating interest rates on
loans in house prices during the
construction period.
Bank Negara also requires the
banking sector to lend based on
net income, which Sim said would
dampen demand and maintain
prices.
In addition, the government is also
helping first-time housebuyers by
giving 110% loans for those who
qualify under the Malaysia My First
Home loan scheme.
“For those who do not own houses,
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it is a good time to shop around.
With the Malaysia My First Home
loan scheme, they will be able to
buy houses of a reasonable size and
location,” Sim said.
He commented on his concern that
many young working adults here
were burdened by rising property
prices coupled with a significant
increase in the cost of living.
Sim pointed out that Prima Housing
is also being undertaken throughout
the country to build more affordable
housing in urban centres and cities.
He advised would-be home buyers
to register online with Prima
Housing so that they would know
the exact demand and location of
projects.
“The definite outlook that we can
foresee is that costs will rise and
again in 2015 when GST (Goods and
Services Tax) is implemented. Those
who can afford a property, those
with good credit ratings will benefit
from investing in property in good
locations (this year). They will enjoy
good returns.”
On property prospects here, Sim
advised potential buyers to look
at areas around Batu Kawah after
the bridge to Bau, Matang area
after Mile 6, Kuching-Serian road
after Mile 11 and Kota Samarahan.
He also suggested aspiring house
owners look at secondary markets.
“Other types of houses that we
usually overlook are second-hand
property, which are usually located
nearer to the city centre, which only
need renovation and repair work.
“These types of houses can be
bought easily, as land titles in the
state can be extended at any time
for up to 99 years, which will mean
that any titled second-hand house
can have a title lease extended
long enough for the bank loan over
several decades, thus reducing
the monthly repayment for the
housing loan,” he said. However, he
cautioned that prices are unlikely
to drop due to rising construction
costs.
“On the cost of building houses in
the country and state in particular,
it is understood that the cost will
rise due to reduced subsidies for
fuel and electricity in the peninsula
for this and last year, which will
affect the manufacturing and
transportation costs of building
materials.
“With the GST to be introduced in
April 2015, some of the building
materials are expected to ri se.
All these increases in cost of
construction will be translated
into house prices. How much the
increase would be will not only be
subject to building cost increases
but other factors such as demand,
location, house design, types of
houses and amenities and facilities
in the surrounding area. Do note
that some areas with low demand
might not even see any increase in
house prices,” he said.