Realistic assessment. However for people with vested interest, will have their vision only on positive outcome even if unrealistic.

WCT Holdings Bhd is taking steps to prepare the construction and property development group for the anticipated softening of the property market.

Managing Director Taing Kim Hwa says: “WCT is mindful of and concerned about the potential softening of the property market, which may result in the slower take-up of properties.

“In order to mitigate this, the company will focus on seizing a strategic property land bank to support further expansion to its property portfolio in developed  and mature areas such as Klang Valley, Iskandar Malaysia, Penang and Kota Kinabalu.”

WCT has been involved in property development for close to two decades.  This is carried out mainly by wholly-owned subsidiary unit WCT Land Sdn Bhd, which is also involved in property investment and property management.

WCT has property projects in Petaling Jaya, Shah Alam and Klang in Selangor, as well as Iskandar Malaysia in Johor.  They include the Skyz Jelutong Residences at Bukit Jelutong, Shah Alam; Paradigm Residences in Petaling Jaya; the Medini Signature in Iskandar Malaysia; and The Landmark at Bukit Tinggi 2, Klang.

Taing tells FocusM that for next year, WCT’s property unit will focus on strengthening its market presence in the local property market.

“With a strong 17-year track record in property development, WCT will continue to strengthen its market presence in the local property market and expand on the quality land bank aimed at creating the opportunity for the provision of diversified, high-quality and reasonably-priced properties.

“Moving forward, the group will continue to leverage on its real estate development expertise and tract record in the developments of the Bandar Bukit Tinggi Klang township, d’Banyan luxury homes and 1Medini, to create more value for future development projects,” he adds.

In Budget 2014 unveiled in October, the government announced that the RPGT would be increased to 30% for properties disposed of within three years, and to 20% and 15% for properties disposed of within the fourth and fifth years, respectively.

Although the move is seen as part of measures to stablilise the property market, analysts expect demand for property to soften due to increased restrictions to curb speculation.  Other measures include imposing higher minimum prices for foreigners, ban on DIBS (developer interest-bearing scheme) and tighter bank lending.

“We have expected property demand to soften post-Budget 2014 as sentiments are affected …(Nevertheless), the demand for prime locations, affordable housing and landed properties should remain resilient,” says Hwang DBS Vickers in a mid-November research report.

The banking sector will find it a challenge to post higher earnings growth next year, given concerns that economic activities could be impacted by a pullback in fiscal spending and that loan growth could slow.

“The banking industry is very closely related to the macro economy and most people are forecasting slightly slower growth all around.  I think we will also have to manage through bouts of financial market volatility, basically because of the quantitative easing tapering (by the US Federal Reserve) and so on.  So, one must be agile there,” Datuk Seri Nazir Razak, CEO of CIMB Group Holdings Bhd, tells The Edge.

Asked where growth would come from, he says: “We can always grow by eating market share.  We can drive new products.  I mean this year, CIMB has done very well in consumer banking.  How?  We have cut down costs, we’ve grown in new segments like ASB (Amanah Saham Bumiputra unit trust), we have grown back in SME banking and in hire purchase, and wealth management.”

At least four banking analysts say they expect loan growth to come down in 2014 – probably for the first time in two years – as a result of Bank Negara Malaysia’s ongoing moves to tighten consume lending as well as the government’s recently announced measures to cool the property market that kick in next year.

These will drag down growth in consumer loans, especially residential mortgages, says CIMB Research’s Winson Ng.  He expects overall loan growth to slow to 9.5% to 10.5% in 2014 compared with an estimate growth of 10% to 11% this year.

Some analysts, including Ng, however, believe bank earnings will likely grow at a stronger pace of 11.6% next year compared with an estimated 9% this year.

“The improvement in earnings will come from an expected narrower margin contraction and smaller increase in overheads.  But ….. we remain “neutral” on the sector because the improvement is anticipated to be small and growth will merely recover to 2012 levels,” Ng says.

While most research houses have a “neutral” call on the banking sector, at least two – Alliance Research and RHB Research – are taking a contrarian view with an “overweight” call.

Malaysia’s economy is expected to stay flat or at best post marginally higher growth next year.  Nomura Equity Research, for instance, sees Malaysia’s GDP growing 4.5% next year compared with 4.3% this year.

Cheah Kim Yoong, banking analyst at Alliance Reseach, expects loan growth to slow to 9% next year from 10.5% this year.  Last year, loan growth was 10.4%.

“The rule of thumb is that loan growth is twice your GDP growth rate.  In the last two years, it was more than twice because of easy credit, but now it should go back to normal or just below (GDP), given the loan tightening measures.

Yep, with the ban on DIBS and RPGT increase, those who bought multiple units for investment purpose will be having a hard time ahead. But of course this does not apply to the super rich ppl
It'll be interesting to see if properties in Penang gets auctioned off...

I had a look at PropertyGuru web site last night and I think my mind is playing tricks on me, the prices appear to be slightly lower than 6 months ago. Ha. May be they are the same as 6 months ago but with the bubble burst forecast/hope in some people's mind, one will "see" what one hopes to see. Ha.

Your view on recent RE prices?

Cheerio.

However, there are some who actually increase their sell prices, despite their prop have been listing for sometimes.  Can't understand the rationales behind.  If it is not selling until now, how would increasing their sell prices help ?

I am tracking some prop from several months back.  Condo psf has been dropping! Landed is stagnating or dropping somewhat.  However, there are some who actually increase their sell prices, despite their prop have been listing for sometimes. Can't understand the rationales behind.  If it is not selling until now, how would increasing their sell prices help ?

Some ads too cheap to blif = bad agents (X)

Some ads too expensive = bad owners (X)

I am tracking some prop from several months back.  Condo psf has been dropping! Landed is stagnating or dropping somewhat.  However, there are some who actually increase their sell prices, despite their prop have been listing for sometimes.  Can't understand the rationales behind.  If it is not selling until now, how would increasing their sell prices help ?

I saw a few  iproperty unit price up, up, up later lelong ..wakakaka

Boss how to know the lelong unit is actually the one ads up up and up in price har???

Case 1 saw the photo look familiar call up agent to confirm address,  Happened to know the neighbour "my relatives" told the house no tenant for nearly 2 years, but alway wanna sell above market price, later went auction,.

Case 2 owner is my colleague friend neighbours.

Case 3 happened to know the agent confirm the unit went auction.

Case 1 saw the photo look familiar call up agent to confirm address,  Happened to know the neighbour "my relatives" told the house no tenant for nearly 2 years, but alway wanna sell above market price, later went auction,.

Case 2 owner is my colleague friend neighbours.

Case 3 happened to know the agent confirm the unit went auction.

if the property goes auction what actually will happen to the owner? declare bankrupt or just blacklisted (ctos)?

O mai, so many people here salivating to the prospect of a property firesale next year....

I wonder whether they would qualify for a loan when it does happen...

O mai, so many people here salivating to the prospect of a property firesale next year....

I wonder whether they would qualify for a loan when it does happen...

Just a few months back u were salivating too bro

The weakness in such shop-offices is the design that require customers to climb up and down the staircase.  The developer should design for a few common lifts at the spacious lobby and common corridors at each floor leading to individual units.  This ease access for customers and tenancy rate in the building.  The other very odd design is lack of rubbish chute for high-rise.