‘Property prices to keep rising’
By SHAREN - 1 August 2014 @ 12:11 AM
http://www.nst.com.my/node/19012

Demand for homes to wane after onset of GST: UEM Sunrise
Posted on 29 July 2014 - 07:16pm
Last updated on 29 July 2014 - 07:30pm
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UEM Group Bhd chairman Tan Sri Ahmad Tajuddin Ali (left) and Izzaddin at a press conference recently.
KUALA LUMPUR: Property developer UEM Sunrise Bhd expects demand for homes to taper off after the implementation of the goods and services tax (GST) on April 1 next year, especially in the second quarter.

Its executive director, Datuk Izzaddin Idris, said this was based on trends in countries that have implemented GST as there was a pullback in demand within the quarter of implementation.

"We believe that in this challenging market environment, we are prepared to hold back launches if necessary. We are revisiting some of our development plans to cater to current market demand and trends," he told Bernama in an interview.

On an overall basis, Izzaddin said the company expected a slight decline in margins with rising cost pressures but there would be a transitional period as the markets would focus more on costs and margins.

He said UEM Sunrise, in anticipation of the coming GST, has made provisions to prepare for the impact as it believed that its financial impact would be reflected in the company's future financial results.

Izzaddin said as residential properties were exempted from GST, the increase in input tax cannot be claimed by property developers or passed on to the home buyers for residential projects already launched and sold.

He said most contractors or suppliers tendering for projects had already factored in potential cost increases pursuant to GST.

Izzaddin said it would pay to price new launches competitively and to offer the "right" products especially in a slower market to ensure good take-up rates.

Internally, he said, UEM Sunrise would strive to be more nimble and was developing a new consciousness in which all employees understood the essential to keep costs low and find ways to realise savings throughout the organisation.

UEM Sunrise, listed on the Main Market of Bursa Malaysia, is the flagship company for township and property development businesses of UEM Group Bhd and the government investment arm, Khazanah Nasional Bhd.

UEM Sunrise's core competencies are in macro township development, high-rise residential, commercial, retail and integrated developments, as well as property management and project and construction services. – Bernama

I agree that property prices will keep going up to to rising developement, construction costs, land prices etc, greedy developers, greedy property owners... But will the normal consumer be able to cope with the rising prices and continue to buy buy buy when their income are not increasing in tandem with the rising cost of living and property prices? 

Btw the article says Government and Authorities is actually increasing the costs for property developers not developers want to suka2 increase.

I agree compliance costs is SOOOO CRAZY now.

as long as there is a demand. there would be a supply. But I dont agree with recent hike in blr.

previous rate is moderate and current rate is slightly high which is not acceptable in a developed country.

Government doesn't care. It was mentioned that we need to increase Supply many more times!

BBB turn DDD 

If demand reduced, developer will not build because they cannot sell at prices which they can make money. So supply also reduced. Lesser new launch, hence buyers have to go for sub-sale. All about supply and demand curve and equilibrium shift. If at a certain point, demand < supply, then price will fall. If supply < demand, then price will increase

The Rehda chairman is just telling people the developer's margin is very thin now that if price decrease instead of increase, they will not build and the supply will decrease

True or not, depends on different individual lah 

spending is good for economy.
If you want to be developed. You may be active in the market.
Well, we have a vision 2020. just mere less than 6 years from now.

People who are willing to take up loans and spent the future money would strike more chance to be successful like American thinking compared to the traditional Chinese thinking of use whatever money you have in your pocket only and continuing saving for the seek of unintentionally depreciating the value of your money day by day...

Of course money must be well spent and good loan instead of bad debt like credit card! 

Market crash is always unexpected..

When everyone keep screaming for market crash.. Property price drop..

DO YOU THINK IT WILL HAPPEN??

When everyone keep saying oversupply, market price drip etc..
Market sentiments is already perceived and all developers, authorities, banks will move in to cool and stabilize the market..

Same thing in Singapore...

Govt implement 9 cooling measures to stablize the mkt...
With the worst of all measures.. TDSR...
Yet property price in general did not fall much...
Only those super high end luxury properties fell in price..

Simple economics,

When demand > stocks = High price
When demand < stocks = Low price,

No?

When I said demand, it means demand from people who could afford to buy. When you could not afford to buy, there is no demand from you. No? 

You got it right. 

Malaysian poperty reports all sugar coated, so unwary newbies kip BUYBUYBUY

always ask these questions, the whole world is full of popaganda nowadays