am thinking the next few years safe strategy is on prop sector with strong fundamental, undervalued/under market pricing and with rental being breakeven/positive? this may minimize price reduction impact as you can brace the downturn for longer time as cashflow not really affected. fundamental prop imho will pick up again over time after the downturn cycle.

Is there anything we could learn from our neighbour's HDB township planning concept?? Even today, a four-room HDB unit could be still available at S$350k for eligible household that could be finance partially through CPF.

if our polly can learn, our cow also can climb tree lioa.......

not that they are stupid...but they are too smart to help themselves, and only themselves.

Finance Minister II Johari Abdul Ghani said there was no "U-turn" in cabinet's decision to freeze new high-end property development in Kuala Lumpur.

"All projects that have received approvals can proceed. This freeze is only for new shopping malls, offices and high-rise residential units priced above RM1 million.

"There is no U-turn," Johari told Malaysiakini.

He was responding to several news reports which quoted Works Minister Fadillah Yusof claiming that despite the freeze, there will be some leeway for some high-end projects on a case-by-case basis.

Both the NST and The Edge Markets quoted Fadillah saying that "this is not a blanket stop order"...

Read more at https://www.malaysiakini.com/news/402728#FCVP1dl81TyQI5rp.99

U-turn or no U-turn, fake news or not, over supply and poor demand remain unchanged, what difference does it make?

This post has been edited by icemanfx: Nov 21 2017, 03:13 PM

learn? we have incompatible values. a country where meritocracy and equality are bad words, cannot possibly learn from developed countries.

If indeed there is a freeze on approval of >rm1m condos, will it auger well for this segment especially in KL in the next one or two years? In KL there are only 349 overhang units under the >RM1m category.

There would be no smoke if there is no fire. Bank Negara seems to agree with Earnest Chong's warning of a possible meltdown in the property sector.

BANK NEGARA 6 POLICY OPTIONS TO REDUCE PROPERTY MARKET IMBALANCE

KUALA LUMPUR: Bank Negara Malaysia (BNM) has issued six policy options to reduce supply-demand imbalances in the property market, warning that the oversupply of office space and shopping complexes in major states may worsen with incoming supply.

It said on Friday the oversupply will be exacerbated by incoming supply, potentially becoming more severe than what was seen during the Asian Financial Crisis of 1997-98.

“Supply-demand imbalances in the property market have increased since 2015. Unsold residential properties are at a decade high, with the majority of unsold units being in the above RM250,000 price category,” it said.

BNM said a multi-faceted approach should be considered to address the imbalances in the property market as the effect of regulatory constraints on lending is limited. This is because developers also fund their projects using internal funds and proceeds from capital market issuances.

"There is a need for all parties, from the Federal and state governments, to property developers, to act in a concerted manner to manage the imbalances in the property market. Policy considerations need to go beyond financial regulatory measures," it said.

BNM said over the past decade, property-related investments have risen significantly (2016: 25% share of total investments; 2005: 18%).

Currently, the property market is characterised by an oversupply of non-affordable housing and idle commercial space, and conversely, an undersupply of affordable homes.

“This situation could worsen if the current supply-demand conditions persist. Within the country, Johor is poised to have the largest property market imbalances (highest number of unsold residential properties and potentially the largest excess supply of retail space). As such, it is timely for all parties to act now to mitigate any potential risks to macroeconomic and financial stability,” it said.

BNM said for the residential market, total unsold residential properties currently stand at a decade-high, primarily on account of the mismatch between the prices of new housing launches and what the households can afford to pay

First, there is a need to resolve the high level of residential properties for all price ranges. BNM said all parties should encourage the rental market.

There is a need to develop a strong rental market by enacting the Residential Tenancy Act and establishing a Tenancy Tribunal to safeguard the rights of both tenants and landlords.

Second, as for affordable housing, there should be an increase in efficiency in the provision of affordable homes. BNM suggested the setting up of a single entity for affordable housing to accelerate the rebalancing of supply towards the affordable range

“Ensure that the development of new projects are in decent locations with good transport connectivity,” it said.

Third, BNM said there should be greater efficiency in the allocation of affordable homes. It suggested that it should be ensured that applicant registries are regularly updated, verified and filtered to prioritise creditworthy households. Ineligible applicants should be directed to rental housing.

For the offices and shopping complexes segment, BNM said there was a large incoming supply of commercial properties and a high vacancy rate and low rental rates in existing buildings.

Fourth, there is a need to manage new incoming supply. Hence, the commercial viability of any new project must be thoroughly assessed before it is commissioned.

Developers should be to be cognisant of current and future demand conditions: Cannibalising effects on tenants and customers (from new malls and offices; high costs of living and rising e-commerce market.

Fifth, BNM said the parties should look into the repurposing of vacant commercial buildings. Vacant commercial spaces in prime locations could be repurposed into economically meaningful assets – such as corporate housing, en-bloc rental accommodation, art centres and indoor parks.

Sixth, increase demand for existing space. This could be done by intensifying efforts to attract foreign companies to set up businesses and expand their footprint in Malaysia. Encourage start-up occupancy by giving rental rebates.

In 1Q 2017, total unsold residential properties stood at 130,6903 units, the highest in a decade. This is nearly double the historical average of 72,239 units per year between 2004 and 2016.
About 83% of the total unsold units were in the above RM250,000 price category.

BNM said 61% of total unsold units were high-rise properties, out of which 89% were priced above RM250,000. Johor has the largest share of unsold residential units (27% of total unsold properties in Malaysia), followed by Selangor (21%), Kuala Lumpur (14%) and Penang (8%).

The large number of unsold properties is due to the mismatch between the prices of new launches and households’ affordability. From 2016 to 1Q 2017, only 21% of new launches were for houses priced below RM250,000.

Read more at https://www.thestar.com.my/business/busines...AxkihBUebylp.99

This post has been edited by ZZR-Pilot: Nov 21 2017, 06:03 PM

Tikaram is still around 🤗

These numbers are solid proof of what most people hv been observing.

That developers & property punters are screwing the buyers up the arse by intentionally building property that buyers cannot afford.

They've been fucking people over by not giving them any choice below RM250000, especially in the high-rise property market. They've been building overpriced shit, of which 61% cannot be sold.

If you need to buy a house to live in, MAKE SURE YOU SQUEEZE EVERY LAST DROP OF BLOOD FROM THE SALES AGENT.

This post has been edited by ZZR-Pilot: Nov 21 2017, 06:27 PM

Yeah, i dont really like MS after the icon city cuci tangan story

True bro, but 300k+ for almost 1ksqft still ok la, if cannot sell then play rental as passive.
How bout Bell suites? same price range but half the size, aim for Xiamen Uni rental

We probably underestimate the rich out there

How does stopping 1mil and above high rise fix the problem? Should be at least 500k and above if gov is serious in tackling the problem

I’m confused too. The report states above 250k, how does it end up with 1m... Luckily no one smart enough to propose ban on development over 10mil

Agreed on this. Prices will correct itself naturally when supply meets demand.

According to a 2017 wealth report; there are less than 3% of adults in the kangkong land have over us$100k wealth.

This 130k+ unsold units is in the primary market i.e developers units. subsale market is a few of times bigger than the primary market, so is number of unsold units in the subsale market.

I didn't say anything abt govt intervention.

We'd think free market forces would knock some sense into these developers & punters, but they all seem to pakat among themselves to beat the game.

Hence the possibility of a crash next year.

If that's nature's way to correct an artificially induced imbalance, then I welcome it & look forward to it. Let those greedy bastards go bankrupt.

Just see the top of iceberg wants to act as an expert.
The so call report is for fun only. Use more of your eyes and brain to see and analyze, you will find multiple X higher than reported.

xiamen uni students... you better check how many students really study at there.... and why students wanna choose that uni to study instead of other colleges and uni within KL....

southville surrounding... really how much rental can you play.... bangi is not exactly prosper with job opportunities and students... even with office suites in southville... why companies wanna move their offices to bangi? i guess if u rent out to reduce losses should be ok... maybe 1.2k and below per month... it wont be passive income...

Wealth report by investment bank may not accurate to the last decimal point but is a good estimate, It is consistent with other data available and realistic.

For reasons, the rich is getting richer, the poor remain poor, the middle class become the new poor and i.b is only serving the rich.


This post has been edited by icemanfx: Nov 22 2017, 09:34 AM