sales of property in primary and secondary market decreasing in double digits

while sales of auction properties increase in double digits.

soon. sales of auction properties is more than all

Property game is so illiquid... Im sure plenty ex-owners of the properties that got auctioned off actually wanted to let them go at cheaper prices, but couldn't due to the slow nature of getting a buyer, the mortgage approvals, and the process of transfer.

Eventhough im in the industry I would not recommend buying properties just for the sake of it.

Auctioned unit mostly sold at reserve price!

http://auctions.com.my/pah/info-recentlysold.asp

Thanks, that's very useful site.

As for the residential sector, the Klang Valley has an overhang in condominiums priced from RM500,000 onwards and this figure is rising.

Referring to the Malaysian House Price Index which includes all types of residentials, Napic director Khuzaimah Abdullah says double-digit growth – seen in 2011 right until 2013 – are not sustainable. From 2013 onwards until the third quarter of 2016, annual growth rate was between 7% and 9.6%, which is still high. It was only in the last quarter of 2016 that saw growth at 5.5%.

Government’s role

Despite the high overhang rate, the government will be increasing the stamp duty rate from 3% to 4% for properties costing RM1mil and above effective Jan 1, 2018.

The rate rise may actually see more sales in this segment, Zailan says. Investors may say this is not the right time to raise stamp duty but this move may spur the well heeled to bring out their cheque book to order to avoid higher taxes next year, she says.

Although there were issues about the office, retail and residential sector, the day’s focus was the short supply of affordable housing and the difficulties getting on the house ownership ladder.

While the government is doing all it can by way of subsidies, there is another view that the government can resolve the issue by taking another trajectory.

Khazanah Research Institute research director Dr Suraya Ismail is of the view that if just one government-linked company (GLC) were to price units reasonably, prices will come down considering that both federal and state governments are large land owners.

“If one developer, hopefully a GLC, were to built units with built-up of between 1,200 and 1,500 sq ft in places like Shah Alam and price them at about RM250,000 each, prices will go down,” Suraya says.

“Most of the GLCs have gone into the property market. If one or two were to do this, prices will come down. The move has to begin with the GLCs,” she says.

Suraya says there has to be a strong resolve on the part of the government to do this. Healthy profit margins are still possible, she says. The public and private sectors must have the political will to modernise construction methods that cut labour and construction time.

http://www.krinstitute.org/Read-@-Too_Much...h.pEM2zy6e.dpuf

The ratio of new and repeated auction cases was about 50% in 1Q2017.

http://dbv47yu57n5vf.cloudfront.net/s3fs-p...tep_pullout.pdf

mean many 1st auction has no bidder and reserve price is likely to drop.

This post has been edited by icemanfx: Jun 19 2017, 05:55 PM

A survey by the Real Estate and Housing Developers’ Association Malaysia (REHDA), on the other hand, showed that 72 percent of commercial and residential units remained unsold in 2H 2016 from 71 percent in 1H 2016.

https://www.propertyhunter.com.my/news/2017...inancing-issues

please bubble, i want to see all BBB and UUU unite.

Wow! BBB much?

Well BBB will continue to BBB 😂😂😂

what's BBB and UUU?

Analysts expect long hard recovery for property sector

Tuesday, June 13th, 2017 at , Corporate Malaysia | Property

By IZZAT RATNA

Analysts do not see a fast turnaround in the multibillion ringgit property sector, despite house prices inching slightly higher in some parts of the country.

PropertyGuru Market Index, in its latest report, showed a marginal 0.2% rise in property prices during the January-March 2017 period compared to the final three months of 2016.

According to the portal’s data, property in Kuala Lumpur, Selangor and Johor rose 0.3%, 0.3% and 3.4% respectively, indicating the sector could have turned the corners.

But economists and industry experts said it is too early to predict the end of the property doldrum as uncertainties and headwinds remain despite a strong first-quarter (1Q) economic growth.

SERC Sdn Bhd ED Lee Heng Guie said the upcoming general election, policy changes and uncertain economic indicators are weighing on the country, and dictating the direction of many sectors including property.

He said in such instances, property buyers are reluctant to make “big ticket investments” as the micro backdrop and other economic indicators have always been the catalyst for such purchases.

“Individuals will take into consideration income stability and encouraging signs in the job market before making major purchasing decisions.

https://themalaysianreserve.com/2017/06/13/...roperty-sector/

Property ain't selling that well here in Miri. Lots of empty shop lots, and even housing area some still not occupants for years. I think some of those developers have lost their mind because they keep making new commercial buildings.

There was this new property sale last year, all house fully booked during launch. Few weeks later, start to see flippers start selling the new house even before it completes.

Few months later, that same developer had to 'relaunch' its property sale again because the first round got many buyer not able to get bank approval.

Visit the property developer office, I see got few units unsold because buyers fail to get loan.

Heh, nowadays you can even rent a new corner lot unit for RM500.

Yes, more auction please.

House prices will never go down” is probably what we hear whenever we are told to invest in a residential property. And property developers have enforced that time and again, citing the rising cost of construction and strong demand from a growing population.

However, the latest data from the Valuation and Property Services Department’s Property Market Report 2016 showed that the Malaysian House Price Index (HPI) had in the fourth quarter of 2016 (4Q2016) stood at 243.3 points, down by 1.8 points, or 0.7%, against 3Q2016.

This is the first quarterly decline since 4Q2008, when the HPI contracted by 2.4 points, or 1.83%, to 129 points from 131.4 points in 3Q2008. Since then, the index has been reflecting an escalation in prices, until now.

....

Residential property market yet to bottom
Going forward, Tang says the residential market in all states will remain soft in 2017. He thinks the market has yet to bottom and the soft market conditions will persist for the rest of this year and possibly the first half of next year. He says the decline in the volume and value of residential property transactions only just started in 2013 and 2015, respectively.

https://dbv47yu57n5vf.cloudfront.net/s3fs-p...wres_locked.pdf

At current market sentiment, kv property is expected to be on 10th consecutive quarter of down trend. with more dibs units vp, downtrend is likely to accelerate.


This post has been edited by icemanfx: Jun 23 2017, 04:21 PM

Wow even the index is decreasing now.. where are all the UUU? Still BBB is it?

Thats old news. Napic should publish 1q 2017 data already. From the latest stats, the value sales drop further in double digit

According to BIS, while rising household debt boosts short-term consumption, an increase of just 1 percentage point in the debt-to-GDP ratio “is associated with growth that is 0.1 percentage point lower in the long run.”

https://www.bloomberg.com/news/articles/201...nd-sickly-wages

With elevated household debt in the kangkong land, future GDP growth is suppressed.

sales didnt go down; partially true

however, new pricing scheme for landed house range at 400k from developer.... teeheee

buyer win; say goodbye to fllippers range between 500k - 1M; 1M above shouldnt be much affected as those buyer are at comfortable range