The secondary property market in the country has good potential as the prices of the houses could be 30-40 per cent lower than the new ones, said the Malaysia Institute of Estate Agents (MIEA).

Its president, Siva Shanker, said many people were unaware of the hidden ‘gems’ in the secondary property market.

The buyers should should explore them instead of complaining and whining about the escalating prices of new houses, he said.

“The data have proven that property prices in the secondary market are very much similar to those in the primary market and if comparisons are made in terms of location and size, they are much cheaper and affordable.

“So if you can compromise and buy an old house, you can still save more money, although you might need to spend some to renovate or beautify the house.

“I’m disappointed at the mass media for highlighting too much on new property launches and the people’s attitude that new properties are always the best options and forego the secondary market,” he told Bernama yesterday after the media briefing on the Property Outlook Conference 2015 (POC 2015), which would be held from Jan 10-11, 2015 here.

Siva said MIEA has organised the Malaysian Annual Secondary Property Exhibition in some major cities, offering affordable options and range for people from all walks of life to buy a property.

On going the auction property, Siva said they (homebuyers) needed to be more careful because there were many uncertainties.

“Sometimes you cannot even see the house, so you don’t know what damages have been done to the house, how much utility bills, quit rent and assessment that have not been paid.

“The owner of the property also won’t be easy on you because he has lost his house and cannot pay back to the bank, and for him, you are his enemy for buying his house,” he said.

Source: Bernama

Property analysts and experts are mixed in their property market outlook for next year due to the uncertainty that is looming ahead of the Goods and Services Tax (GST) implementation next year.

While many are expecting the property sector to dip, MIDF Research property analyst Ahmad Annuar Rahman said property prices are expected to hold and grow marginally for all residential types.

“We don’t expect the prices to fall but to remain flat for the low and middle range with a softening in the luxury property range instead.

“While the House Price Index is showing a slower growth at 6.6 per cent, the sector should remain sustainable as most of the potential buyers are in it for the long haul.

“We foresee that the property demand will remain, if not slightly increase next year,” he added.

The Housing Price Index decrea-sed to 6.60 per cent in the second quarter of this year from 9.60 per cent in the first quarter, averaging at about 3.77 per cent from 1997 until 2014, according to the report by Bank Negara Malaysia.

Property experts, however, are anticipating tough times ahead and are urging potential buyers to leverage on the lower prices now.

Property guru and best-selling author Milan Doshi said the best time to buy a property is usually when others fear to do so.

“That is the time when you can get good deals, which normally don’t come by during better times. As long as you know the locations that are good to invest in, you can secure good financing and can negotiate good deals. There would be many opportunities to benefit from.

“A smart investor should possess the know-how and the know; the two main ingredients to be a good property buyer,” said Milan at the 2015 Property Outlook Conference yesterday.

The two-day conference, to be held on January 10 and 11, is expected to attract about 1,000 participants, congregating real estate investors, home buyers, financiers, developers, master planners and property agents.

Meanwhile, on the implementation of GST in April next year, Ahmad Annuar said there should not be any increase in property prices post-GST as the taxes have already been factored in this year.

“Properties usually have two to three years to be developed, so the GST should not be a reason for property price hikes next year.

“While pricing might continue to grow and the sticker price might be slightly higher, units on sale might be reduced. However, it is always wise to meet the buyers halfway as obvious price increases would deter them from buying, and it also depends on the marketing strategies developers are adopting to attract buyers,” said Ahmad Annuar.

Syarikat Ong managing partner Agnes Wong said certain clarifications are still needed over the GST calculations in the property market.

“The Act is out, the guide and formula are also out, but developers need to seek further clarification on how to use it in the industry. The government will be announcing the Anti-Profiteering Act to the merchants that they are not allowed to introduce excessive price hikes.

The Anti-Profiteering Act 2011 will be enforced by the government in order to curb excessive price hikes upon the implementation of GST next year.

Source: New Straits Times Online

A proposed high-end service suites cum retail lots by Prinsiptek Corporation Bhd. in Batu Ferringhi, Penang. It is strategically located along Jalan Batu Ferringhi, next to Lone Pine Hotel. This is a beach front 7-storey commercial building with car parking lots located at sub-basement.

The proposed development consists of the following:

• 42 units of service suites (level 4-7)
• 57 retail lots (level 1-3)
• Facilities located at the roof top of level 4 and 7.

The actual launch date is yet to be fixed, but it is expected to happen in first half of 2015. More details to be available when this is announced by the developer.

Project Name : (Pending approval)
Location : Batu Ferringhi, Penang
Property Type : Service suites & retail lots
Tenure : Freehold
Developer : Prinsiptek Corporation Berhad.

Location Map:

[streetview width=”100%” height=”250px” lat=”5.474602″ lng=”100.24919″ heading=”-12.072240403684894″ pitch=”3.9183701103287305″ zoom=”0″][/streetview]

The construction sector is expected to remain attractive next year amid a weaker domestic currency due to lower demand for commodities and the general public apprehension over the goods and services tax (GST).

Malaysia Building Society Bhd president and CEO Datuk Ahmad Zaini Osman said he expected the property market to remain sustainable, with the demand not much affected, even upon GST implementation in April next year.

“Furthermore, I think, our building materials, in term of currency, won’t be much affected as most of our products is local. We no longer bring in imported products.

“Hence, I foresee that the property sector will remain sustainable next year,” he told Bernama.

Despite possible slight oversupply of properties in certain areas, he said the government had already put a freeze on new projects in certain areas to neutralise the demand.

“Overall, there will be enough demand and supply. So, there will not be overly excess supply,” he added.

On the need for developers to move to suburban areas, he said that for any suburban area to be attractive, there had be a magnet to lure house buyers.

He said demand for housing would be high in areas near educational institutions like universities, having efficient public transportation and close to expressways.

On affordable housing, Zaini said the Government should develop urban outskirts, taking advantage of lower land prices, but they should have good road networks and transportation services.

The construction industry reported the strongest growth across sectors in the first six months of the year, registering 14.3%.

The government expects the momentum to continue into the second half and next year, fuelled by approved government projects and potential investments from the private sector.

Source: Bernama

State excecutive councillor for Housing and Town & Country Planning Jagdeep Singh Deo has lashed out to irresponsible tenants of low cost (LC), low-medium cost (LMC) and affordable housing housing renting out their units when it is a clear breach of tenancy agreement.

The Selection Process Enhancement Committee (SPEC) chaired by Jagdeep vets through and selects only eligible Penangites who are deserving and in need of such housing.

“We want to realize the dreams of many of families of having roofs over their heads, it is unfair for those in need, some with extended families waiting in line for houses while some irresponsible parties are using these units for profit,” he said.

“It has come to my knowledge that there are those who have been allocated such LC and LMC units, both during the selection process by SPEC and even before it by the Housing Department, who are advertising to rent the same out, which is in breach of the condition expressly set out in the Form PN1,” Jagdeep added.

A clause in Form 1 clearly states:

I also agree that my family and I will occupy the unit allocated.If it is discovered that my family and I does not occupy the said unit allocated without any reasonable explanation or is rented/ occupied by others, the Housing Department of the State Secretary Office has the right to revoke the offer and repossess the unit that has been allocated without payment of any compensation.

Jagdeep has sought the council of the Housing Department’s Legal Adviser to subject the irresponsible landlords a criminal charge under Section 420 of the Penal Code for cheating witnessed by, amongst others, EXCO members, Members of Parliament, State assemblymen, Justices of Peace, Advocates & Solicitors and the Penghulu.

Jagdeep has consulted the Malaysian Institute of Estate Agents (MIEA) Penang Chapter who have agreed to assist the state government by instructing their agents not to advertise to rent LC and LMC units certified by the Penang housing department and extended to affordable housing projects once completed.

The state government together with Penang Development Corporation (PDC) has in the pipeline 12 projects which will deliver 22,545 units of low cost (850 units) low medium cost (7,874 units) and affordable housing (13,851 units).

The private sector through public-private partnership is set to match or exceed this number in terms of provision of low cost, low medium cost and affordable housing units.

Since the inception of SPEC in August 2013, a total of 7,291 applicants have been selected to be designated low cost, low medium cost and affordable housing.

The Penang Housing Department has a waiting list of 25,065 applicants and 24,283 applicants for low cost and low medium cost units respectively.

“The Penang State Government together with PDC and the private sector are vigorously pursuing such low, low medium cost and affordable housing projects which must ultimately reach the intended target group, namely the needy and deserving applicant.”

Source: Buletin Mutiara