well... bnm says suck it boys and girls... prices rose 11% in 2012 vs 2011, speculation here is lower than elsewhere... consturction cost rise is minimal (meaning developers are sucking buyers?)... prices will keep rising... and pls stop saying foreigners are pushing up prices - they're only 2%.
rising home prices, faster rising debt, what's our economy getting into? dangerous times, be careful , be very careful...
Expect home prices to continue to climb, says BNM
Story by
Aidila Razak
aidila@kinibiz.com
Property market trends are spelling happy days for property investors, but less so for home buyers.
According to Bank Negara Malaysia (BNM), residential property prices surged by 11.2 percent last year compared to 2011– more than double the 10-year average–and are expected to continue to rise in the next few years.
This follows its steep climb starting from the third quarter of 2009.
“Over the next few years, the increase in new home buyers is likely to continue, exceeding average growth in housing stock.
“(This is) notwithstanding measures already announced by the government to add to new supply which are focused mainly on the low-to-medium priced segments,” the central bank said in its annual report launched yesterday.
BNM said prices in the secondary property markets, particularly in Kuala Lumpur, Selangor and Penang have been pushed up due to poor supply of affordable new developments.
A great bulk of new developments, it said, are priced above RM1 million, forcing 80 percent of property transactions to take place in the secondary market.
It said that these higher priced transactions were also responsible for pushing overall prices up.
“(The growth) was driven mainly by higher prices and transactions in the detached, semi-detached and luxury high-rise property segments,” the central bank said.
Construction costs not main driver
Putting to rest developers claim that property prices are driven by higher cost of construction, it said that cost of construction has grown at a much slower rate in 2012.
“Rising construction costs have only partly explained house price increase between the third quarter of 2009 to the third quarter of 2011, but the costs have been increasing at a slower rate in 2012,” it said.
On the investment side, returns on investment on residential properties averaged at about 4.6 percent over the fourth quarter of 2009 to the second quarter of 2012.
In 2012, capital gains grew by 11.2 compared to the year before, in line with rising property prices.
All the same, BNM said speculative activity in the Malaysian property market is “low…compared with property markets in other countries”.
Investment by foreigners account to a modest 2 percent of total number of property market transactions, it said.
It added that regulations and fiscal measures had drastically cut the owners with multiple housing loans (particularly for houses priced below RM250,000) but the figure is back on the rise mid-2012.
http://www.kinibiz.com/story/corporate/103...b-says-bnm.html
Mar 18 2013, 10:41 AM
the reality is that hasn't happened yet.
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Think long term...
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