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the significant increasing property also can be noted in KK, Sabah Property... 1 very old double storey cost rm450k and above..

Jul 11, 2011
Property trends – where are we heading to?

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There have been many speculation (and subsequent refuting by various parties) of a property bubble. Year 2009 marked an economic slowdown due to the global financial crisis, while year 2010’s economic recovery was largely boosted by the government’s economic stimulus package.

Some attributed the astronomical price increases in hot areas to the suppressed demand of year 2009. In that year, it was common for developers to offer 5% downpayment and 0% interest until upon completion of a development. Similarly, banks offered attractive rates, where the interest rates were at approximately the high 3% or low 4%.

Escalating prices
2011 came and property investors had to rethink their investment strategies. Prices of properties have surpassed the levels recorded before the crisis and in the first half of 2010 itself, prices of landed houses in some popular areas in the Klang Valley, Penang and Johor have appreciated by 10% to 30%. Bank Negara Malaysia (BNM), in its “Financial Stability and Payment Systems Report 2010”, stated that house prices in selected locations within and surrounding urban areas had increased to four times higher than the national house price index.

BNM has been staying on the pulse of the market’s movements and implemented a loan to value ratio of 70% for third mortgage borrowers. However, crafty property buyers have resorted to using their spouse or relatives’ names when applying for loans. Some have opted to take the commercial route, as the required downpayment is at an average of 80% (as opposed to 70% if the buyer has more than two residential properties currently). Plus, the capital gains and rental yield are relatively higher than residential properties. Hence, some buyers have changed their strategy by investing in commercial properties.

Proceed with caution
In early May 2011, BNM raised the overnight policy rate (OPR) by 25 basis points to 3% and increased the statutory reserve requirement (SRR) by one percentage point to 3%, and as such, banks have raised their base lending rates (BLR) and base financing rates (BFR) by 30 basis points to 6.60% respectively. Banks that offer BLR minus 2%, means that effective interest rates are still below 5%.

However, property investors should look at the slight rate hike with caution. It is imperative that property buyers make decisions based on repayment capability, and also factor in expected rental yields.

New developments continues to mushroom especially in the Klang Valley and Greater Kuala Lumpur and reports have indicated that investors are still very much active, with investors snapping up units during property launches, despite the price increase. Analysts have indicated that it is still too early to measure the impact of current regulations.

Property Investment Convention 2011 (PIC 2011)
If current property trends and regulations are at the top of your mind, join the Property Investment Convention where current topics of interest will be analysed and shared by various speakers.

The convention will mainly be about movement in the property market, the current and future trends based on the MRT, how to purchase as regulations change, how to tweak your strategies in view of the changing regulations, managing your portfolio, diversifying into REITS, and many more.

The speakers include:
- Best-selling author and property investment coach, Milan Doshi
- Location researcher and map maker, Ho Chin Soon
- The master of lead generator and co-author of the first ‘Lease Options’ book in the UK, Vincent Wong
- International property investment trainer and co-founder of Wealth Dragon in the UK, John Lee

The Property Investment Convention is scheduled to be held on 6 and 7 August 2011 at The Gardens Ballroom, Mid Valley City. Register now at www.wealthmasteryacademy.com/starpic.

http://www.starproperty.my/PropertyScene/T...htBox/13215/0/0

Just has a rough check on Ipoh property prices recently. Seems like the price there also has increase about 40%++ averagely compare to my last checking which is like 2 years ago. An average decent 22’x75’ double storey house is now selling for a range of RM250k to RM290k depending on location and amenities offer. On my last recount, the same would be selling for around RM170k to RM220k.

Then I dig further and realize that the price increase is mostly due to inflation and better construction material offer, rather than speculation coz the secondary house market has not increase much compare to new launches. Still generally on the current price level, houses are still selling there.

This post has been edited by lch78: Jul 11 2011, 09:55 PM

City&Country: The Edge/KGV-Lambert+Smith Hampton Johor Baru housing property monitor (1Q2011)


By E Jacqui Chan of The Edge Malaysia
Sunday, 19 June 2011 00:00

Malaysian property investors, whose focus had been mainly on the Klang Valley property market, are now looking at Johor Baru. “We are seeing an increasing number of people from outside the state buying properties in JB,” says Samuel Tan, director of KGV-Lambert Smith Hampton. Interest is at a level that has never been seen before, he adds.


Skyrocketing residential property prices in the Klang Valley in the past two years have caused investors to look for investment opportunities elsewhere, says Tan when presenting The Edge/KGV-Lambert Smith Hampton Johor Baru Housing Property Monitor for 1Q2011.


There may be limited upside in the Klang Valley compared with the Johor property market, which started moving a year or so ago after having remained flat for years, he adds.


“It’s not just the buyers. We are also starting to see more major developers such as Bina Puri Holdings Bhd, Bandar Raya Developments Bhd and WCT Bhd buying land in Iskandar. They can see the potential here,” says Tan.

Properties in JB are also attracting attention because of Iskandar Malaysia, where the first wave of catalytic projects and major infrastructure are expected to be completed by 2012.


The projects include Legoland Malaysia, Newcastle University Medical Malaysia, Marlborough College @ EduCity and Chelsea Premium Outlets while infrastructure includes the Eastern Dispersal Link and the Coastal Highway.

“I think the sight of all these projects nearing completion proves that this is no longer a dream but that things are actually coming to fruition after so many years,” says Tan.

He also credits the improving ties between Malaysia and Singapore for the positive market sentiment. A key development is the 202ha wellness township in Danga Bay, a joint venture between Khazanah Nasional Bhd and Temasek Holdings Ltd. Construction is expected to start this year.

“Things like these augur well for Iskandar and JB because if you can’t get your neighbour to invest, how can you attract others?” asks Tan.

Rising values
After a lacklustre decade, the total transaction value and volume of properties are marching upwards, particularly since 2H2010.

According to data from the National Property Information Centre, transaction volume jumped to 5,147 units in 4Q2010 from 2,105 units in the preceding quarter. Even more impressive is the total transaction value, which jumped to RM1.13 billion in 4Q2010 from RM397 million in the preceding quarter.


“The numbers show that not only more people are buying but also thatpeople are prepared to pay higher prices these days. Johor folks were waiting for property prices to drop but they didn’t, especially in the primary market. It has become a matter of now or never in buying property,” says Tan.


He believes this also reflects the changing lifestyle in JB. “Five years ago, a condo would never have gone beyond RM250 psf, but today buyers will not even think twice about buying a RM350 psf unit because they see that the development comes with facilities. It is a lifestyle that comes with prestige and security. It is the same for gated and guarded housing estates.”

Tan attributes the rising prices to inflation and better values. In the primary market, prices have been going up due partly to a shift in the developers’ strategies, he says.

“In the past, most developers here were family-owned businesses or estate owners with limited capital. Now, we have deep-pocketed developers and when they buy land, they don’t buy cheap. They need to have fast turnover and continue selling, so prices cannot afford to drop below a certain margin.”

Tan notes that developers these days do not buy hundreds or thousands of acres. They buy just the right size for their needs so the holding cost will not be too high and the risk is mitigated.

The situation in the secondary market, which depends very much on the location and infrastructure changes, is more muted. Areas that are close to new infrastructure such as highways, and the proposed mass rapid transit and light rail transit lines are likely to see geographical changes and an increase in demand and value.

In 1Q2011, prices in several sampled housing schemes increased by an average of RM10,000 per unit. These include 1-storey terraced houses in Taman Pelangi and Taman Perling and 2-storey terraced houses in Taman Daya and Bandar Baru Permas Jaya.

However, Tan notes that rents have not risen in tandem with property prices, thus lowering rental yields. He expects this situation to continue.


“Now, most people buy properties for two reasons — for occupation or for capital appreciation. Those in the latter category will hold the property for a few years and sell it to make money. At the end of the day, there is hardly a better hedge against inflation than property,” says Tan.


Prices of houses in the secondary market have appreciated by 31% to 106% over the years.
A 2-storey semi-detached house in Taman Casa Ambyra, which was sold for RM450,000 when it was launched in 2008, is now going for RM650,000 — an increase of over 45%.


Apartments in Danga Bay, sold for RM170,000 in 2000, can now fetch about RM350,000 — an appreciation of more than 106%.

“Confidence in the market now is stronger than it has been in a long time. That’s also because of wave after wave of development announcements unlike in the past when you got one announcement and things then quietened down. The people here can see that things are moving forward and the JB landscape is changing for the better,” says Tan.


This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 859, May 23-29, 2011

does anybody have actual transaction data on apartments being sold in Penang? what is the market there? is it going to slow anytime soon?

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Added on July 12, 2011, 1:28 pmwow i see the mode is still BBB but just take a look, 360 properties are posted for sale in Penang just in the past 2 hours! i think not BBB anymore....

This post has been edited by cleo87: Jul 12 2011, 01:28 PM

Penang island property always has support due to the scarcity of land there. Not too sure about mainland. The moment the property prices drop 5% in Penang island, the demand will surge 50%..

Now with inflation surging and property prices go beyond affordability level of mass population, expect prices to stagnant or moderate in the coming months until don't know when the disposable incomes and savings level goes up/catch up, then it will be BBB again.

There is some data in the following homepage although it might not be in your required format:-

http://www.jpph.gov.my/V1/index3service.ph...mat=3&no_item=4

thanks!! im talking about the properties on the island. a lot are put up for sale...

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Added on July 12, 2011, 2:46 pmthanks!

This post has been edited by cleo87: Jul 12 2011, 02:46 PM

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Added on July 13, 2011, 9:55 amThe Star Online > Business
Wednesday July 13, 2011

Banks offer home financing rates for as low as 0.2% to win market

SINGAPORE: At least two Singapore banks have been dangling some of the lowest ever home loan rates, currently pegged at about 0.2%, on selected properties.

Analysts say the moves by DBS Bank and United Overseas Bank (UOB) may reflect intensifying competition to maintain loan volumes in an uncertain market. These loans may be more attractive to short-term property investors.

The two banks confirmed to the Singapore Straits Times on Monday that they had offered mortgage rates pegged at two commonly used benchmark interest rates and not a whisker more in the initial period.

These are the Singapore interbank lending rate (Sibor) and swap offer rate (SOR). The three-month Sing-dollar Sibor has been at a record low of 0.438% since January; the three-month SOR has moved between 0.3% and 0.189% since April. It is now 0.21%.

The SOR tends to be more sensitive to exchange rate movements.

A view of the waterfront facing Singapore’s financial district.
Typically, when banks use the Sibor or SOR, they add their own profit margin.

These new rock bottom rates are usually for a promotional period such as the first year or even longer after that a higher rate, such as the usual benchmark plus a margin, is applied.

Vinod Nair, chief executive of website Smartloans.sg, which offers home loan comparisons, said the low rates were more suitable for short-term investors.

Compare a SOR plus zero package that rises to SOR plus 1% after three years, and a flat SOR plus 0.7% package, on a S$1mil, 30-year loan.

A person paid S$5,430 in total interest for the first three years under the first package, compared with S$25,557 over the same period for the second, he said. But over the 30-year loan tenure, he would actually pay less using the second package.

Bank of America-Merrill Lynch economist Dr Chua Hak Bin said the latest trend could be because mortgage applications had fallen, and there was “intensified competition among banks to maintain mortgage loan volumes”.

He said lenders might also be anticipating more cooling measures which could hit loan volumes, and the global slowdown might cause banks to focus more on mortgages and less on riskier corporate loans.

While home loans eased, total loans rose 24.2% in May from a year earlier, the “same highs seen in mid-2008 before the global financial crisis hit,” he added. - ANN/Singapore ST

For another perspective from The Straits Times, a partner of Asia News Network, click here.

Latest business news from AP-Wire



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© 1995-2011 Star Publications (Malaysia) Bhd (Co No 10894-D)

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Added on July 13, 2011, 4:04 pmBy ELAN PERUMAL and STUART MICHAEL at the Selangor State assembly | Jul 13, 2011
Six months grace for lease renewal

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Property owners are given six months to apply for renewal of leasing for their premises.

Mentri Besar Tan Sri Khalid Ibrahim said this was to give the owners ample time to renew the lease for their property.

If they fail to apply for renewal, he said the owners risked losing their properties.

However, Khalid said the state government offered options for those who were unable to pay the premiums on their renewal.

Under a special scheme, he said those who were unable to pay the full premium would be allowed to renew their lease for only RM1,000.

“These property owners can pay the full premium when their properties are sold,’’ he said.

Khalid said the state also offered a 30% discount for those who paid the full premium within the six-month timeframe.


This post has been edited by kh8668: Jul 13 2011, 04:04 PM


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inflation inflation inflation!!! Why dont' charge to the Independent power producers ?!!!!!

http://www.btimes.com.my/articles/REfund/Article/


Levy on heavy power users from January
By Ooi Tee ChingPublished: 2011/07/13Share PDF
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The levy money will be used to reward green energy producers through the feed-in tariffs.




Kuala Lumpur: The government will impose a levy on heavy electricity users starting January 2012 and use the money to remunerate green energy producers under the Renewable Energy Act's feed-in tariffs (FiT).

"Green energy producers will be rewarded via the feed-in tariffs. The funding is derived from polluters-to-pay concept," said Energy, Green Technology and Water Ministry's deputy secretary general for energy sector Badaruddin Mahyudin.

He said the Sustainable Energy Development Authority will set up the Renewable Energy Fund in September 2011 to collect the levy and oversee the implementation of the FiT.

"Those who consume more than 300KW (kilowatts) per hour will be considered heavy energy users and they will be taxed. We estimate Tenaga Nasional Bhd (TNB) to collect RM300 million per year on behalf of the government to fund the green power producers.




"Please note, household customers consuming 200 units of electricity or less will not be affected by the renewable energy levy," he said.

"Our ministry has, so far, received a RM189 million loan from the Finance Ministry to kick-start the Renewable Energy Fund," he added.

Badaruddin was speaking to reporters after launching the pre-show guide of POWER-GEN Asia 2011 here yesterday. The regional conference and exhibition on power generation, transmission and distribution will be held at the Kuala Lumpur Convention Centre from September 27 to 29.

It was highlighted that manufacturers, which make up 40 per cent of TNB's clientele, are the likely target group to be slapped with the renewable energy levy.

Badaruddin said the government is aware that the largest contributor to the levy will be from the industrial sector. He gave an assurance that the 1per cent levy on the bills of heavy energy users will only minimally impact the industry's manufacturing cost.

Moreover, the industrial sector may want to offset the incremental electricity cost by being more energy-efficient at their factories or even generating green power, thus benefit from the FiT.

To date, TNB's small renewable energy programme is only applicable to those generating up to 10MW. Come September 2011, the FiT will raise the bar to 30MW.

Power is generated from sustainable sources that include hydro, solar, biomass and biogas.

The FiT essentially guarantees green power producers a premium selling price over that generated from depleting and finite sources like oil, gas and coal.

The FiT could, on a cumulative basis until 2020, facilitate avoidance of about 46 million tonnes of carbon dioxide emitted from conventional power generation. This is achieved if and when Malaysia generates at least 3,000MW of green power.

"300kw per hour"... "200 units"
300kwh per month is not that much for many homes. 300kwh in one hour for a month is a lot.
so is it 300kwh, 200kwh per month as threshold?


This post has been edited by AVFAN: Jul 13 2011, 08:42 PM

There is one property in a popular gated & guarded development in USJ, a corner unit which the owner was asking for RM1.5million recently. He even wanted to put only RM900k in the S&P. Owner appeared to be very lansi and had an attitude of take it or leave it. Now a few weeks later I tot the unit must have sold already ... Imagine my surprise on learning that the price is down to RM1.1m. Owner must be in a hurry to sell now while he still can coz of the drastic reduction in price.

Dunno if this is the prelude for price drops ....

he play psychology only... if ppl dun know the market trend and value... will get tipu lah... RM1.1m huh..

us could be in hard landing...

This post has been edited by sampool: Jul 14 2011, 12:27 PM

nope. similar (slightly smaller corner unit) was sold for RM1.3m just 2-3 months ago. so its not a matter of not knowing the market value. Its a small taman, word gets around fast on who sold their house & who is selling.

20% Drop in Housing to Cause Recession in 2012, Says Gary Shilling
By Peter Gorenstein

Stocks rallied Wednesday after Federal Reserve Chairman Ben Bernanke suggested the central bank would go ahead with another round of stimulus -- aka quantitative easing -- if the economy continues to slump. In this scenario, the Federal Reserve would once again purchase assets to keep interest rates low in an attempt to support the economy and prop up asset prices.

So far, the Fed's actions have done more good for asset prices like stocks (see: S&P 500 chart since 2009) while doing less to help the economy (see: June jobs report). U.S. gross domestic product grew just 1.9% in the first quarter of the year. For 2011 as a whole, the Fed forecasts U.S. GDP growing at 2.7% to 2.9%, which is lower than the plus 3% forecast they made in April.

Today's guest, Gary Shilling, President of A. Gary Shilling & Co. and author of the Age of Deleveraging says another recession is brewing -- no matter what action the Fed takes. "Economic growth here and abroad is slipping, making a 2012 recession a distinct possibility," he writes in his July newsletter. And, "when you have slow growth it doesn't take much of a shock to throw you in negative territory."

Shilling says the shock to trigger the next recess is "another big leg-down in housing." (An asset class the Fed has not been able to reflate.) As those familiar with Shilling know, his forecasts are generally bearish. However, in his defense, Shilling was one of the few economists who correctly predicted the dangers of the subprime mortgage market and its impact on the broader economy.

The problem with the real estate market remains excess inventory. Based on Shilling's research, there are 2 million to 2.5 million excess homes in the country -- a supply that will take 4-5 years to work-off. The result: Housing prices will fall another 20% and underwater mortgages will balloon from 23% to 40%, he says.

With housing slumping again, Shilling says recession is coming to a town near you in 2012.

wat i mean the value base on social/economy performance and not the goreng value..

Guys, i bought a property in Subang in 2007, 20*60 USJ 13, i'm thinking if i shud hold on or sell right now, so caught in the middle, with LRT coming soon, the price could yet sore higher.

Seeking some pro's advice here.

How much u want to sell...bro?

Er... havent put up a price yet... becos havent decide to sell or not to sell.
But what i see from iproperty, extended, reno.. selling 450k.