An example today for reference.
Low cost flat at Klang. Reserve price starting 20k.
Subsale selling around 60k: https://www.brickz.my/transactions/resident...era/non-landed/



Attracted 25 bidders.
Sold at 80k.
Confirm this is overprice but what to do. This is the available method investors can continue to collect low cost unit.




Here the full story:

Low and low-medium cost actually is the same. Got restriction when want to resell back to others, the new buyer need to meet certain requirement.
- Refer to the POS. Will be stated inside.
- Refer to the size. Size 650 sqft and below. (got few places with 700 sqft unit but is still low or low medium cost flat). Any size above that is probably medium cost aparment.
- Refer to the unit balcony. Is without any balcony. Any property with balcony is probably medium cost apartment.
- For landed property, the land size is very small. Below 900 sqft.

Definitely is not under low cost category. Minimum rumahwip size also 800 sqft and above.
However, is under affordable housing scheme. Will have restriction in selling back to new buyer within the 10 years moratorium period. After that period, still unknown actually as government policy always changes.

Lelong reserve price at 272k. Market Value 340k.
Owner decided to let go at 260k via normal subsale market.
Unexplainable.

C-8-5, Pangsapuri Damai, Jalan Tokoh 25/28, Taman Sri Muda, Seksyen 25, 40400 Shah Alam
Reserve price 🔥🔥RM272,000🔥🔥
1041 sqft
Leasehold until 2107
Auction: 27-May-2019 (Mon)



Previous Auction(s) for this property
Auction Date Price
2019-04-30 RM275,400.00 - no bidder
2019-03-28 RM306,000.00 - no bidder
2019-03-04 RM340,000.00 - no bidder



Owner jual 260k shj. Dan dh ada buyer yg lock deal. Untung buyer ni! Lg murah dari harga reserve lelong.
Blh search iklan. Bnyk agent yg promote unit ni. Contoh:







This post has been edited by AskarPerang: May 25 2019, 04:32 AM

Normal subsale process:
Owner need to settle all outstanding including utilities bill up to the date of full disbursement of the buyer loan.

Lelong process:
Outstanding up until the date of auction only will be deducted from the purchase price. Utilities not covered.

Bid of the day at HSBC mega auction today.
Yes people willing to wait for cheapest ever price, and all rush to bid up the price. Usual scene today.
Here example of 2 cases:

-----------------------------------
Case 1:

This is the bid of the day!!!
Point #1: Facing cemetery view
Point #2: Owner still occupy unit

Let's see the history of this lelong unit first:

8th lelong - Rp 174,380 ---> Latest 27-May
7th lelong - Rp 193,760
6th lelong - Rp 203,960
5th lelong - Rp 214,690
4th lelong - Rp 225,990
3rd lelong - Rp 251,100
2nd lelong - Rp 279,000
1st lelong - RP 310,000


So reserve price down to 174,380 today. Guess sold how much.
Sold at 248k. What a surprise. So many months nobody interested suddenly today, ppl willing to bid up the price.
Dont understand.

--------------------------------------------
Case #2:

Total 3 same size active lelong units in the market. All below 700k. This unit first to lelong.
The other 2 units details here: https://forum.lowyat.net/index.php?showtopi...post&p=92795794

4 bidders just now.
Sold at 780k.

OMG!!! Buyer market is still very strong.
Not a good catch. Higher than last month reserve price. Why last month 740k nobody interested?

They bought at 850k the house 15 years ago. Sold at 1.44M in lelong. 1st auction at 2.4M.
Well at this property segment, it is completely normal. Yes, make sense this lelong transacted price + owner still staying unit.
After paying for 15 years, loan amount left 800k? Sold at 1.44M. Deduct all cost 100k maybe? They still got surplus money out of this auction. Take and find another house back at kampung to settle down.

Actually 9 out of 10 owner with house kena lelong will give the same reason that they did not know it. Bank did not inform. Salah rumah. Salah bank. Is the usual reason given.
Bank is not "along" unregistered company. Bank cannot simply lelong or komplot with the buyer. Got legal process bank need to follow, obtain court order, etc. Yes part of the process is informing via snail mail.
1st auction will be at bank valuation (or just slightly below), done by the bank appointed valuer. Every time no taker, the price will drop 10% and re-auction at next round. For this unit, of course already dropped price many rounds.

Okay found the house: https://www.lelongtips.com.my/property/5518...r-for-RM1440000

Previous Auction(s) for this property
Auction Date Price
9. 2018-08-13 RM1,440,000.00 - finally got ppl willing to buy! congrats!
8. 2018-05-02 RM1,440,000.00 - no bidder. price maintain. bank decided not to drop price.
7. 2017-12-18 RM1,600,000.00 - still no bidder.
6. 2017-11-13 RM1,600,000.00 - no bidder. bank decided not to drop price.
5. 2017-08-09 RM1,749,600.00
4. 2017-05-09 RM1,944,000.00
3.
2.
1st auction at 2.4M in 2016.

After 9 rounds of auction since 2016. Takkan still dont know or not aware of house kena lelong. Even the bank decided to maintain price at 1.6M for 2 rounds and 1.44M for 2 rounds.
Once they missed their payment. The effective interest rate wont remain the same anymore. From 4% can go up to 10+%.

This post has been edited by AskarPerang: May 29 2019, 10:27 PM

Okay I didnt realise.

If seksyen 4 shah alam then is this house: https://www.lelongtips.com.my/property/5729...r-for-RM1134000
Sold at 1.44M maybe. Doesn't really match the story actually as stated only single bidder?
And the bank valuation for the house only 1.8M.

Previous Auction(s) for this property
Auction Date Price
2018-11-16 RM1,260,000.00
2018-04-25 RM1,260,000.00
2018-02-08 RM1,400,000.00
2017-10-31 RM1,400,000.00
2015-06-23 RM1,800,000.00

No other lelong house from seksyen 4 shah alam.
Leasehold until 2079. 60 years left. They should count themselves lucky actually got ppl willing to bid up the price.

This post has been edited by AskarPerang: May 30 2019, 11:34 PM

Another case example of when price drop too low, attracted many bidders.
End up price jump up higher not only previous round reserve price, but previous 2 round reserve price.
Worth it?

Zero lot banglo unit at Rawang: https://www.lelongtips.com.my/property/5815...or-for-RM472390

Bank value 800k. Subsale market asking 700k+.
Lelong history (all no bidder previously):

Previous Auction(s) for this property
Auction Date Price
2018-12-05 RM524,880.00
2018-07-19 RM583,200.00
2018-03-13 RM648,000.00
2017-12-21 RM720,000.00
2017-08-23 RM800,000.00



From 472k.
Sold at 610k.
Why didnt bid at 524k?
Why didnt bid at 583k?

THE number of properties entering the auction market as a result of default payments is expected to increase in the second half of this year, a valuer said in early May.

A source from a bank confirmed in late May this may be the case.

Banks begin foreclosure proceedings if borrowers default for three consecutive months instead of six as was previously, the bank source says.



The other difference Leong has noticed between then and now is the rise in high-end units in today’s auctions. In previous years, most of the properties were below RM500,000. Many are RM500,000-RM1mil and above today.

It takes a longer time to sell. Before, a property can be sold after the second or third round. It takes three to four rounds to sell today, with a 10% drop in price for each round, Leong says.

Come come. Plenty to choose from. Small size, big size, etc.
Airbnb hotspot.

Old is gold?







24 bidders. High court auction. 1 bid increment 10k. Hahaha.
Expected already. When the price is too cheap, price also jack up beyond last round reserve price.
Why last round everyone still waiting for the price to drop further?

This post has been edited by AskarPerang: Jun 19 2019, 01:13 PM

No.
If that case happen (the winner unable to complete or forfeit the process), a new auction will be set and start back at reserve price of 1M. Everyone got another chance to bid again.

Buy lelong unit but keys collect from developer office.
Plus no need pay progressive interest.
Here's the story:

Opening of the unit:





By the way, this unit only come with 1 car park slot.

Another jackpot purchase from this Dr.
Cyber Heights Villa, Cyberjaya. Old place but still able to get fully furnish homestay/airbnb unit condition when break in.
Trully down to luck.

Source of article: https://www.orientaldaily.com.my/news/xilie...19/07/07/297185
Translation via google:

Want to buy an auction house?
After 6 auctions, the price of 900,000 new homes fell by as much as 46%.

The auction houses are old, broken, haunted, and even splashed with red paint at any time, not worth buying? Not necessarily, in recent years, many new homes have been auctioned. For example, in Kuala Lumpur, a newly built luxury apartment unit failed to auction at the market price of RM900,000 for the first time. After six auctions, the price has dropped to RM490,000, a drop of 46%.

As the housing market slows down, more and more newly built units have been auctioned, and no one has ever lived in the new housing units, and it is much cheaper than the market price.

One example of Wu Zhiqiang, one of the founders of Act Fast Real Estate Agency, was interviewed by Oriental Daily. The above auctioned example was a 911 square foot unit at Abang M City Apartment.

He said that another example of a new home auction was the Arte Plus apartment, which had its first auction price starting at RM800,000. After several rounds of auctions, it has now fallen to RM400,000. "The most serious decline is in Cyberjaya. The auction price can be said to have collapsed. If the developer sells a house of RM80 to RM900,000, it will only fall to around RM300,000."

He explained that this is because Saicheng's local population is sparse, and many homeowners are buying and renting instead of self-occupation, resulting in a sharp drop in local housing prices. Some 1400 square feet of unit prices have fallen to RM380,000.

“Some new apartments have been auctioned for a year to a year and a half, resulting in many people not buying the developer’s house and choosing to buy new ones in the auction market.”

I can't afford to auction

He said that the best-selling auction house in Kuala Lumpur today is an apartment unit with a price range between RM400 and RM500,000, and many of the units are new. “The trend of new homes being auctioned is becoming more and more obvious this year. It is estimated that almost 200 new homes will be auctioned this year in the area of ​​the Selangor.”

He said that there are similar conditions in Penang. For example, the market price of The Clovers is about RM700,000, but the auction price has dropped to RM500,000, while the price of Arte S has dropped from RM800,000 to RM500,000.

“There are about 30 new homes auctioned in Penang this year.”

He analyzed that these homeowners may not have to pay for the first time when they bought a house, and thought that after the house was built in three to four years, the salary would rise, and the salary would not rise too much, and they could not rent it. Mortgage has led to an increase in the number of auctions.

"If you buy yourself, it is a good time now, because the quantity is very large, it is very cheap, and the house price has almost fallen to the bottom."

Sun Zikai, former president of the Penang Auctioneers Association, said that there are many new homes in Penang that are being auctioned, such as Arte S serviced apartments near the University of Science. After the construction, several houses were auctioned, such as an area of ​​1,262 square feet. The unit of the ruler was sold on January 11 for RM607,500.

"This kind of house was auctioned after it was built and taken into the occupation paper. It has not been moved in and lived."

He added that the reason for fewer buyers of serviced apartments also includes commercial units, so local taxes, house tax or water and electricity are more expensive.

Second-hand housing slow-moving new home buyers more choice

The auctionGuru.Com.My auction information network founder Xie Lianyi believes that now is the buyer's market, because the buyers have too many choices, so the price of new homes being auctioned will fall.

He explained that buyers have many choices, in addition to auction houses, as well as new homes sold by developers, including slow-moving homes, and can also buy houses through the ordinary second-hand market.

“The new houses being auctioned are now on the rise, and the number is quite large. For example, M City and Arte Plus apartments, Wansuo and Sungai Buloh also have some landed properties, which are sold at prices below 30% to 40%. ""

He said that some units with a market price of RM900 to RM1,000 per square foot also fell to RM600 to RM700.

He analyzed that in the past, the houses that were generally auctioned were low-priced houses, but in recent years, high-priced houses were more common than ever.

He explained that the previous housing market was relatively stable, so in the economic storms of 1997 and 2008, the low-income groups were mainly affected by the auction.

“But after 2008, the general public changed the speed of industrial value-added. Many houses were sold very well at the time of promotion, and the price also rose very quickly. So many people bought houses, but as the economy was not good, some people got on it. 'The tail bus', the house price began to fall."

Sun Zikai said that some of the new housing units he auctioned were not sold for three times. He believes that this is because the auction house still needs to compete with the new property, the developer now offers many offers, and the house broker also strives to promote the developer's unit.

The number of high-end apartment auctions doubled in 3 years

According to AuctionGuru's "2018 Auction Market Annual Report", the number and value of high-end apartments that were auctioned in China in 2018 have more than doubled in 2015.

According to the report, the number of condominium units being auctioned increased from 1,142 in 2015 to 2,407 in 2018, and the market value increased from RM 659 million to RM 1.39 billion, both of which increased by 111%.

The high-end apartments that were auctioned in 2018 cost an average of RM580,000 per room.

The apartment is still the most expensive type of high-rise building. In 2018, a total of 6,863 apartments were auctioned, with an average price of RM200,000 per room.

However, the increase in serviced apartments or suites is the most amazing! In 2015, there were only 102 units with a total value of RM33 million, but in 2018 it has risen to 1797, with a total value of RM 826 million, with a 16-fold and 24-fold increase in quantity and value, respectively.

According to the report, the number of high-rise buildings being auctioned is large, or due to oversupply and low rental returns, more homeowners and investors are giving up their mortgages.

“High-rises are easier to sell in the auction market because of lower prices, higher facilities and rental returns than those in landed houses.”