Another view.

PETALING JAYA: Real estate players say its unlikely that the property market will take a “terrible hit” in 2018 as predicted by property expert Ernest Cheong.

They said that the “facts and figures” pointed to a less negative outlook.

Yesterday, Cheong, a real estate veteran, said 2018 looked to be a tough year as developers and homeowners would find it hard to find buyers, and this could lead to a crash as consumers did not have the financial power to own homes.

Cheong had said this in the wake of Deputy Finance Minister Lee Chee Leong’s revelation that unsold completed residential units rose by 40% to 20,807 units in the first half of 2017 compared with the same period last year.

Henry Butcher Malaysia chief operating officer Tang Chee Meng told FMT that although the market was sluggish and that the stock of unsold houses could possibly increase in 2018, some projects priced under RM500,000, as well as those above that price range in popular locations, were still enjoying good take-up rates.

“So for anyone to say that the market will crash next year is a bit too pessimistic,” said Tang, adding it was important to note that the numbers didn’t paint such a bleak scenario.

For one, he said Malaysia’s economy was projected to grow between 5.0% and 5.5% next year. He also said there had not been any major retrenchment exercises, compared with a couple of years ago, when thousands in the aviation, oil and gas and finance industries lost their jobs.

Tang also pointed out that there had not been a significant rise in nonperforming loans (NPLs) or a substantial rise in foreclosed properties put up for auction.

“NPLs will go up only if borrowers are facing financial difficulties in servicing their loans and this will only happen if their businesses go bust or if they lose their jobs.”

But based on the latest economic data available, Tang said the employment situation, as well as the outlook for the business sector, did not appear to be so negative. This, he said, should provide overall confidence to investors and should support a stable property market.

He added that a number of developers had refocused their attention on the affordable homes segment, which should continue to enjoy stable growth in 2018, and that this would help developers overcome the sluggish market.

Tang also said some investors could also be holding back their purchases pending the outcome of the next general election (GE14).

Prices unlikely to drop

Meanwhile, the Penang Real Estate and Housing Developers’ Association’s immediate chairman, Jerry Chan, said it was unlikely that developers would drop their prices unless they were in financial trouble.

“But, most developers have been around for some time, had a good run and would’ve anticipated the current market slowdown. So I don’t think they have their backs against the wall.”

Chan told FMT the reality was that developers couldn’t afford to bring prices down because their margins were low, and would be more likely to change their products to meet the market’s requirements rather than just drop prices.

“You will see developers maybe making smaller units or putting less finishings. We can only lower prices if the authorities lower compliance costs such as levies, taxes and affordable housing requirements.”

In the past, some property experts had pointed out that forcing private developers to build affordable housing units, which were sold below market rate, would only force them to increase the prices of their other projects to cover the losses.

Chan said that the demand for housing would continue to persist and that consumers would always find ways to buy a home, whether through finding additional income sources or lowering their expectations of a home.

“I don’t see prices dropping more than they already have. When the market was at its peak, some developers set ridiculous prices and when the market slowed down, they dropped their prices a bit.

“But does this really mean that they dropped their real prices or merely slashed their inflated prices?”

He also dismissed the likelihood of a crash in 2018, citing strong exports, returning investor confidence, and the lack of mass retrenchments.

http://www.freemalaysiatoday.com/category/...h.v3VbVaSw.gbpl

Yup and this type of discussion, argue until cows come home also no end.

Repeat enough BBB, one day will come true.

Repeat enough DDD, one day will come true.

But hor, if he manages to hold, in 7-10 years down the road, he will be laughing to the bank?

Why not? Although so far the popoti price is upwards trend (even if it’s just due to inflation only, as someone keeps repeating).

Now, if he bought 🍋, then lain cerita lor.

Cari makan mah. So can only accept good views 😂

https://www.facebook.com/PTLMalaysia/posts/1762793643739404

Now will have shortage of supply???

Huh? 2 paragraphs only nia?

Crap! I thought longer opinions/comments. Wasted my data to post this for you.

No lah. It’s for Ice’s benefit. Wanting to gain from her insights but only got two paragraphs.

But anyway, she’s not far off lah. Even BN is sounding warning now.

https://www.facebook.com/groups/11517943520...58472290873183/

This post has been edited by David_77: Nov 17 2017, 05:39 PM

While overall (for residential) looks good but to derive conclusion from the genral overview is too simplistic.

After all, we only have very limited bullets to buy certain type of residential unit and in certain areas.

Would be good if more breakdown is provided (i.e. landed/condo/apartment; leasehold/freehold/; mixed-development?; areas etc).

LOL! Malaysia Boleh

Everyone can rilek now.

KUALA LUMPUR (Nov 20): In an apparent U-turn over a freeze on approvals for luxury property developments, Putrajaya on Monday (Nov 20) said the green light for such projects will still be given but on a case-by-case basis.

Works Minister Datuk Fadillah Yusof said although the decision was taken by the Cabinet following a recent report by Malaysia’s central bank on an oversupply of high-end properties, the freeze does not involve all projects.

“This is not a blanket stop order… The government is (instead) sending a message to developers to study whether there will be (sufficient demand for a project) before they decide (to proceed),” he said.

“If you sell RM1 million (S$326,000) condo (units) located in (unattractive) areas, it may not attract buyers. But if you sell RM4 million condominiums around the Kuala Lumpur Convention Centre (KLCC) area, you will definitely get buyers, especially among expatriates,” he said in reference to the prime real estate area in the middle of the capital city.

Mr Fadhillah believed being selective in approving high-end real estate developments will help address the country’s property glut in the luxury segment.

His comments come a day after his cabinet colleague, Second Finance Minister Datuk Seri Johari Abdul Ghani, said Putrajaya has temporarily frozen approvals for luxury property developments since Nov 1 due to a glut in the sector.

The temporary freeze affects shopping malls as well as commercial and residential developments which sell units at RM1 million (S$326,000) and above.

“This will be in place until we clear all the excess supply,” said Mr Johari on Sunday.

“There is a stark imbalance between supply and demand and we have to review the strategy in terms of real estate development as we do not want such situation to adversely affect the economy.”

In its report, the central bank warned that Malaysia’s property market is facing an oversupply of non-affordable homes and idle commercial space, while demand for affordable housing is not being met.

There were 130,690 unsold units at the end of March this year, with 83% priced at above RM250,000. Sixty one percent of the unsold properties comprise of high-rise apartments.

The central bank pointed out Johor has the largest share of unsold residential units, followed by Selangor, Kuala Lumpur and Penang.

“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,” online news portal Malaysiakini quoted the central bank as saying.

Last Friday (Nov 17) central bank governor Tan Sri Muhammad Ibrahim said imbalances in the property market posed significant risks to the country’s economy.

Allaying concerns, Mr Johari said the government will continue to drive the development of affordable homes, specifically those priced below RM300,000 each, which were in short supply.

He said demand for affordable homes stood at 48% while supply is only at 28%.

Following the central bank’s report, the Johor state government is considering to relax restrictions on foreign home ownership to reduce the glut of unsold properties in the state.

Currently, foreigners can only buy houses priced at over RM1 million.The southern state is also mulling giving incentives to developers to encourage them to build properties between RM150,000 and RM400,000, said housing and local government executive councillor Md Jais Sarday.

“Maybe we can look at relaxing the requirements based on the size of the houses. We need to come up with a mechanism to address these issues,” The Star Online quoted him as saying.

Source: http://www.theedgemarkets.com/article/utur...ls-not-absolute

Cy****a*a?

but new projects continue to be launched. ok, ok, i better stop, else this kena turn to another Cy****a*a thread discussion again

at 60, I want to have 3 properties and rm1 million in cash.

placing the rm1 million in FD (@ 3% p.a on monthly rest), I will have monthly RM9656.07 to spend and it will reached zero at end of ten year.

then at 70, i will sell two properties, keep one to stay and have another rm2 million or rm3 million to last till end of day.

But it's just me. i always prefer delay gratifications

"placing the rm1 million in FD (@ 3% p.a on monthly rest), I will have monthly RM9656.07 to spend and it will reached zero at end of ten year."

hope it's clearer. of course, 3% on RM1 million won't be RM9656

anyway, attached the excel. can see if i make a mistake on the assumption?

lol! at least you urbanite read and try to digest. Even boss ManutdGiggs sought clarification.

But the bodoh nothing is really kosong

This post has been edited by David_77: Nov 23 2017, 02:05 PM

Welcome but it’s very simplistic, so take it with a lot of salt 😂

Lol! Greedy mah 😂

As for the kids, let them work it out first (masih ada 2 more properties to give them at later stage)

No lah Boss. At least you give me the benefit of doubt. Kamsiah 🙏

If wife needs to look like this.... need to re-think the strategy

True also. Can ensure rental collection on time too 😂