I have been looking at subsale in a particular taman in Setia Alam for few months now. I do notice every couple of weeks, there will be a unit for bank auction. I think some people are struggling to pay but I doubt it's the rate hike but more on the economic struggle of the owner (maybe running business and business didn't do well, or lost job, etc).

In terms of pricing, it depends the type of owner. If the owner is having a deep pocket, the price is higher than the market and there's a big no to negotiation. But, if there's desperation I can see the price is lower and the unit usually get off the market pretty quickly despite it might not be everyone's cup of tea (condition, design, layout, etc).

This post has been edited by contagiouseddie: Aug 28 2022, 11:18 AM

Price does increase, space does decrease dramatically that look like a sangkar burung now and the construction method also become cheaper like using pre-fabricated wall at the factory and join the walls at the site.

Landed not just getting less but also becoming smaller and smaller on the new launches. The build also getting worst like using prefab walls but prices going up like no limit.

I think money making from property has passed in Malaysia. I bought my Setia Alam unit for 400K in 2008. It is currently rated around 900-950K. New launches by SP Setia is around that price but a lot smaller and not gated too. The increment of the property price is not that steep anymore to the point it cannot cover the miscellaneous fees that some of you have pointed out here for new property. But this doesn't mean price will drop, it will only increase in a smaller gradient. Unless you buy a unit at some ulu unknown area that suddenly become big in the near future (just like Setia Alam as example in 2004), chances that such huge increment hardly can happen. The demand is there as I get plenty of of inquiry from agent to sell all the time but not sure if this hold true for high rise.

I actually bought the very first phase next to the shop of the pasar malam spot. But that area houses all got sinking issue. SP Setia bought back from me but had to purchase a new unit from them. Lucky it did happened as my current unit is much better. I remember walking into the construction side illegally when their sales office is at the current MBSA office, leg all stuck inside mud. Who would thought it became what it is today. Even their cheapest low cost apartment easily fetch you 300% of initial purchase price, of course if buy early in the township development.

I bought a transactional report for my taman (about 800 units of superlink and semi-d cluster and semi-d) before buying another recently. There's no drop since the beginning in 2004 until now. Only during MCO the increment is smaller. Other than that, it just go up and up.... I bought the report because I just want to make sure I don't overpay compared to what has been transacted.

Bought from Brickz for RM30 for a taman. The date starts from the origin of the taman. My email is all over the document, so I'm not sharing unfortunately.

It has road name, house type and land built up size. So that pretty much give you what you need to know. Of course you can't know things like whether it was never occupied before or renovated before. I also notice unit price is only higher if it is renovated extensively. And it has graphs too, LMAO!

This post has been edited by contagiouseddie: Nov 3 2022, 12:10 PM

Trefoil?

Setia Alam, even the low cost apartment like Seroja have appreciation values by a lot. Of course this doesn't hold true for anywhere in Malaysia.

This post has been edited by contagiouseddie: Nov 3 2022, 03:11 PM

Nearly bought the other side of Klang (Bukit Tinggi, Botanic, etc). It's looks havoc there right now. Many foreigners renting and lack of planning.

Landed property prices rise in a sector on recovery mode
Monday, 16 Jan 2023

PETALING JAYA: Kenanga Research remains “neutral” on property developers on the view that the sector will continue to be weighed down by the bearish oversupply and cautious lending activity of banks.

A bright spot for the sector, however, is the landed homes sub-segment. Since the onset of the Covid-19 pandemic, prices for terrace homes were the only sub-segment that have shown notable growth, while prices of high-rises and detached homes have either declined or only grown marginally, the research firm revealed.

Housing affordability for many buyers has been eroded by the higher interest rates and soaring construction cost.

The already high household debt-to-gross domestic product (GDP) ratio in Malaysia, which stood at 85% at the end of June 2022, has added to this.

“Our key concerns going into 2023 are developers’ elevated net debt levels and tight cash flows, exacerbated by higher interest rates,” the research house stated in a recent report.

The operating environment for developers is expected to remain challenging in 2023 underpinned by soft pricing power seen in 2022 despite the rising construction and land costs.
While the loan approval rate for the 10 months of 2022 had recovered to pre-pandemic levels of 43%, it is still pale in comparison to the 45% to 51% seen during the upcycle in 2011-2014, Kenanga Research noted.

Bank Negara had raised its overnight policy rate (OPR) by 100 basis points (bps) last year to 2.75% to fight inflation and normalise its rate levels.

Economists at UOB Research expect the central bank to raise the OPR by another 25 bps to 3% this week when its Monetary Policy Committee meets.

This will only add further pressure to buyer’s affordability and translate to higher financing costs and a potential liquidity crunch for highly leveraged developers, as well as weigh on their earnings.

The economy is also starting to slow with Maybank IB Research estimating the GDP growth rate for October and November 2022 averaging at 5% as compared to 14.2% year-on-year in the third quarter of 2022.

Kenanga Research thinks property developers are struggling to pass on higher construction costs to buyers, as price hikes will hurt take-up, putting the viability of the new launches at risk. Thus most choose to sacrifice on margins earned.

“Despite the reprieve (in the overhang situation), we note that there is still a long way towards recovery as units in circulation are still rather high versus historical levels – creating price competition and pressure for new unit launches,” Kenanga Research added.

With all these in mind, Kenanga Research believes developers focusing on landed townships such as Eco World Development Group Bhd, IOI Properties Group Bhd (IOIProp) and Sime Darby Property Bhd will fare better than the rest.

Its top picks are developers with strong cash flows that could anchor good dividends such as Eco World and IOIProp.

I think it totally depends on the price segment. Mid and higher end ones will never go down while the lower priced and not in prime location like outskirts will definitely see some stagnation and possibly a small dip.

Might as well believe Mr Bean. Of course they want to make money, they will tell you all sort of story. Without you buying, they eat sand.

MCO time was the cheapest in the modern time. Bought the transaction record and can see a differences between RM100K-200K price different for RM1M-2M properties range.

A friend bought one facing that big park at close to 900K++ few months back. It's too expensive as it's not even guarded. House also quite small.