/// West Malaysia Property News
Malaysia’s Property Sector to
Remain Competitive
Slowdown in Property Launches
half and the market finding
its equilibrium, he said
more action was expected
in the second half of the
year.
Rain fails to dampen property buyers at a developers launching
Promising property hunters at a developer project sales
gallery
Malaysia’s property sector
is expected to remain
competitive and stable
this year as Malaysia had
only imposed a third
round of property cooling
measures.
“Compared to Singapore
which has so far imposed
eight round of cooling
measures, Hong Kong
(six) and China (five),
Malaysia definitely stands
in a better position,”
Malaysia Property
Incorporated general
manager Veena Loh Geok
Mooi said.
Earlier, during her
presentation, Loh said in
the first half of 2014, the
market would be softer
as buyers would adopt
a-wait-and-see attitude
due to the announcement
of the real property gains
tax (RPGT) which would
discourage investors who
were in for the short haul.
Investors are mainly
attracted the most to
properties in Greater
Kuala Lumpur, Johor
and Penang. She said
Kuala Lumpur offered
the highest gross
development profit (GDP),
given the employment
opportunities, per capita
income, population and
sufficient transportation
facilities such as the Mass
Rapid Transit system
which links suburban
78
areas within the capital
city.
Iskandar Malaysia in
Johor, with a 7% to 8%
annual GDP growth,
experienced an increase
in property purchasers
by Singaporeans and
expatriates as they were
cheaper when compared
with those across the
causeway.
Expatriates working
in Pinewood Studio,
Legoland, Hello Kitty
theme park, Medical
Healthpark, Southern
industrial and logistics
clusters and educity
were among the buyers
of properties in Iskandar
Malaysia, Loh said.
“Penang’s real estate,
on the other hand, has
made it to a US-based
publication’s list of
eight great places for
foreigners to retire in,
along with its connectivity
to international
destinations.
“However, Penang was
expected to face a glut
based on the assumption
that future property
projects, when they come
on stream by 2015 or
2016, would result in a
surplus supply of 44,844
units,” she added.
www.PropertyHunter.com.my
Property launches and
sales will soften this year,
as the market gravitates
towards the actual impact
of the 2014 budgetary
measures, property
consultants concur.
Managing director of
property consultancy VPC
Alliance Malaysia Sdn Bhd
James Wong said with
the cooling measures
in Budget 2014, sales
volumes would drop and
the property market would
soften, particularly the sales
of condominium prices
ranging from RM750,000
to RM1 million, which are
targeted at foreigners.
He said property launches
were expected to slow
down compared with 2013
and some launches might
even be delayed or scaled
down, if effective demand
was not there.
Wong expected more
affordable homes to be
introduced this year,
with properties near the
proposed mass rapid
transit and light rail transit
extension lines set to be
popular.
“Although the landed
residential sector is
expected to be resilient
with stable growth,
especially property within
gated and guarded
enclaves, sales of
residential properties to
foreigners would be slow
as a result of the budget
measures. Transactions in
condominiums would slow
down, with a possible price
correction.
“The abolition of the
developer interest-bearing
scheme (DIBS) and other
freebies is expected to
reduce the volume and
value of the transactions
in the primary market, and
new property launches
may be affected, as
without the DIBS, many
potential housebuyers
may not be qualified to
purchase houses. Overall,
the housing market would
moderate, with a reduction
in property transactions
and prices,” Wong said.
According to CB Richard
Ellis Malaysia executive
director Paul Khong, the
minimum RM1 million limit
for foreigners would affect
the mid-range residential
sector, and potential
buyers would tend to defer
their decision to buy. The
imposition of the full real
property gains tax will
have a blanket effect on
curbing speculation across
all sectors and impact the
take-up rate.
It has been a quiet start this
year and most developers
are deferring their launches
till the later part. With
the Chinese New Year
coming up end-January, it is
traditionally a quiet period
for the property sector.
More project launches are
expected to come through
in or after the second
quarter,” Khong observed.
After a relatively quiet first-
He pointed out that
developers would have to
work harder this year to
attract sales, and many
might consider marketing
their projects overseas and
incorporating innovative
and lifestyle concepts into
their projects.
“Good and innovative
packages plus value-formoney features in property
projects would go far in
2014,” Khong conceded.
He said one of the property
hotspots would be Medini@
Iskandar where new
projects like I Medini Walk
(by Singapore’s Tang Group
of Companies) and Avira
(Eastern & Oriental Bhd)
both near Legoland would
be entering the market
soon.
Many developers will be
looking at the Medini
area, as it is a special
international zone with
various taxes/benefits,
including an exemption of
the RM1 million minimum
price limit imposed on
foreigners.