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Developers: Foreign buyers won’t affect local property market

September 27th, 2019 Leave a comment

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The Real Estate and Housing Developers’ Association Malaysia (Rehda) says foreign buyers are attracted to a different category of properties, and that their presence will not have an impact on the property market targeted by locals.

Rehda also welcomed Putrajaya’s plan to promote its Home Ownership Campaign (HOC) to foreigners, adding that it was nothing unusual.

“They have a product which is above a million (ringgit) that they want to dispose of, which our local people cannot afford to buy.

“Rest assured it will not contradict our aim of selling affordable housing only to Malaysians,” Rehda president Soam Heng Choon said after a briefing on the property industry outlook today.

Soam said the now-defunct Malaysia Property Incorporated had previously promoted high-end properties to foreign buyers.

He said properties which have been left unsold for a long time can be offered to foreigners.

“Governments in other countries also look at selling high-end properties to foreigners,” he said.

Housing and Local Government Minister Zuraida Kamaruddin was recently criticised over her announcement of a HOC targeting foreign buyers.

Zuraida later clarified that only houses above RM1 million would be part of such a campaign.

Meanwhile, Soam revealed that 19,784 units worth RM14.65 billion have been sold by Rehda members under the HOC.

He also rejected a claim by the House Buyers Association that the glut in high-end properties was due to developers not building what ordinary buyers want.

“Which businessman would come up with a product that no consumers want?” Soam asked.

Source: FreeMalaysiaToday.com

 

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  1. GayLou
    September 28th, 2019 at 13:42 | #1

    “Moral Hazard” – is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost.

    So if the developers know that the gov will do something (most of the time at the expense of little people like us) to help them when they get burnt by taking too much risk in chasing greedy profits, they will keep taking excessive risks knowing that if things turn bad, big bro will do something to help them.

    Now, Mr Soam would conveniently claim that ” foreign buyers are attracted to a different category of properties, and that their presence will not have an impact on the property market targeted by locals”, which of course is utter nonsense, unless you don’t need “LAND” to build mil-RM properties.

    To illustrate my point, so let’s say you have a country by the name DurianLand, a country consist of just an island the size of Penang island. The one and only diet of the people on this island is durian, and they only have 2 types of durians being planted on the island, namely “kampung” & “musangking”. One day, a durian planter on this island discovered that he can fetch far better price for his musangking when he exports them overseas, after which he :-

    (1) stop planting kampung durians because he can only sell to locals at lower price
    (2) converted all his land from planting half “kampung” half “musangking” to ALL musangking.
    (3) other planters started to do the same for higher profits
    (4) in the end, kampung durians became so hard to come by, and the price increased too

    So can we say that “foreign buyers are attracted to a different category of DURIANS, and that their presence will not have an impact on the DURIAN market targeted by locals”???

  2. GayLou
    September 28th, 2019 at 14:02 | #2

    Oh, and this Mr Soam, I believe he is from IJM right? IJM was the one who “pioneered” in penang :-

    (1) Long overnight queues one day before project launching so that the newspapers have sensational news to report to hype things up (IJM is also a big customer of these newspapers for big property advertisements, so it’s like you scratch my back, and i scratch yours)
    (2) Pre-launch bulk buying by “preferred” customers (most of whom are speculators)

    All these unscrupulous sales tactics have in a way resulted our predicament today. And the gov feels obligated to help them???????? kidding???????????

  3. GayLou
    September 28th, 2019 at 14:22 | #3

    I know I know, Mr Soam or one of their kind will come here and say …….how can you compare durians to properties, as you can build very total buildings for properties but you cannot stack up durian trees.

    Now here’s the thing. The ever changing (or rather increasing in penang) of plot ratio, which allows taller and taller buildings to be built, has resulted in such over supply today. And the developers are using this excuse (oversupply) to get gov to help them sell more properties overseas, which would finally result in higher overall property price.

    Also, the higher density of living has resulted in more cars, more rubbish, more roads, more street lights etc, and therefore HIGHER MBPP ASSESMENT RATES!! If we allow this to continue, our quality of living will definitely be going downhill!

  4. Free Hong Kong
    September 29th, 2019 at 10:18 | #4

    Open the gate and let hong kong movement to come in malaysia to live with the most special “earth ppl”.

    Black shirt we welcome you to come here to experience the “earth ppl” thinking then you will can compare your current hong kong is good or bad. :)

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