The Malaysian Institute of Economic Research’s Q3 residential property survey saw its residential property index (RPI) fall to the lowest level in four quarters but still staying above the 100-point demarcation level at 118 points.

It said this suggested confidence in property remained, but was trending downwards and implied cautiousness in the months ahead.

“The latest reading is pulled down primarily by builders’ expectations of production and sales for the near term. Their assessment of present conditions is also generally less encouraging than in the previous quarter, except for current production,” MIER’s survey report said.

However, MIER said sales continued to hold their own in the quarter.

It said 41% of respondents described their sales as satisfactory and 38% as good, with just 21% responding negatively.

While demand for bungalows has slowed down, landed properties have generally remained popular. Double-storey houses are cited as the best-selling type, with 52% of respondents confirming this, while 31% cited single-storey houses and 7% condominiums.

More houses were constructed in Q3.

“About 31% of correspondents built more homes in Q3, the highest proportion tabulated in nine quarters, representing a whopping 72% jump quarter-on-quarter,” MIER revealed.

It said while this may be due to the current drawdown in new unsold units, people were also probably buying ahead of expectations of a hike in interest rate. However, new bookings slipped for two quarters in a row, with just 47% respondents reporting more new bookings compared to 50% in Q2.

Property remained expensive, even though fewer respondents increased prices in Q3 (56%) than in Q2 (57%) or in 3Q12 (63%). According to MIER, prices are likely to remain about the same in the coming months.

The survey also showed that while home loan applications had gone up, approvals were down, following the recent cap on loan tenure by Bank Negara from 45 years to 35 years.

Meanwhile, job prospects in the property sector, while still holding their own in the quarter, are showing signs of moderating.

“Not only is there a bigger majority of those who have retained their present staff, those who hired more are also smaller in number – with 86% and 11% being polled respectively, compared to 61% and 39% in 2Q13,” MIER said.

In this quarter, only 3% of respondents have retrenched employees compared to 9% last year, but payroll did not budge much with 69% saying they did not make any adjustment to employee salaries in the quarter, against 25% who did.

“Builders are bracing for a more cautious outlook in the near term. Not only are they adjusting their sales forecast lower, they are also less optimistic about their selling prices – preferring to maintain existing prices for now.

MIER said concerns over the limited supply of foreign construction workers and the recent hike in fuel prices may have weighed on builders’ cost of construction. Unless this hiccup was addressed soon, supply of new residential properties will likely be subdued in the near term.

Source: StarProperty.my

Taman Cassa Maya, a gated and guarded housing scheme by Streamsville Sdn. Bhd. within Sungai Dua township in Butterworth, Penang. It is strategically located with easy access to schools, markets and eateries.

This development comprises 12 units of semi-detached and 115 units of terrace houses.

Streamsville Residence

• Type: 2-storey Terrace
• Land Area: 20′ x 75′ / 20′ x 79′
• Total Units: 115
• Built-up Area: 2,248 sq.ft.

Streamsville Exclusive

• Type: 2-storey Semi-detached
• Land Area: 39′ x 85′ ‘
• Total Units: 12
• Built-up Area: 2,860 sq.ft.

Property Project : Taman Cassa Maya
Location : Sungai Dua, Butterworth, Penang
Property Type : 2-Storey Terrace & Semi-detached
Tenure : Freehold
Total Units : 127
Developer : Streamsville Sdn. Bhd.

There is no reason to believe that Malaysia has seen the formation of an asset bubble that is about to burst, as the country has addressed many of the issues and risks related to it, Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz (pic) has said in a Bernama report.

She said three series of macro prudential measures had been introduced this year to avoid the very risk of the formation of such a bubble asset.

“Conditions between now and in 1997/1998 are different. We are now on a growth path,” she told a press conference in conjunction with the South East Asian Central Banks (Seacen) 30th Anniversary Conference on Greater Financial Integration and Financial Stability and launch of the Seacen Financial Stability Journal, here yesterday.

She was responding to a question on whether Malaysia was experiencing an asset bubble that would burst if China’s economy tumbled and as global interest rates rose, as reported recently by the foreign media.

“We believe that credit growth has moderated to a sustainable pace that supports the growth of the economy. In this regard, we continue to monitor conditions,” Zeti added.

Meanwhile, in her opening address at the conference, Zeti said the modernisation of the Asian financial system had been accompanied by a significant strengthening of the regulatory and supervisory frameworks.

“These reforms supported the transition towards more market-oriented financial systems that are anchored in stronger institutions, risk management capacity and governance,” she added.

She also said these developments continued to support the region through the recent episodes of turbulence in the global financial markets.

“The region has also made important strides in enhancing monetary and financial cooperation arrangements to address regional financial stability issues and global policy spillovers.

“Much has been accomplished in the areas of surveillance arrangements, financial safety nets and crisis prevention, management and resolution,” she added.

Source: StarProperty.my

Micheal Geh

The Federal Government should leave real property gains tax (RPGT) alone in the 2014 Budget.

New Bob Group director Dr Lee Ville said that if the RPGT is increased, then it will dampen the property market, which has already started to cool.

Lee is also president of ERA Malaysia, which is the world’s leading real estate brand.

It is expected that the Federal Government will raise the RPGT rate to 30% from 15% for properties sold within two years, and 15% from 10% for properties sold within three to four years.

For properties sold in the fifth and sixth year, the RPGT is expected to remain unchanged at the current 10% and zero RPGT respectively.

“The anticipated RPGT will not deter foreigners from buying, as they are allowed to dispose their properties only after the third year,” he said.

Lee said the anticipated RPGT would work in the initial stages, curbing speculation in the short term.

“If implemented, developers will respond by reducing their delivery of residential housing projects.

“This will eventually lead to a shortage, triggering demand and causing property prices to rise up again in the long term,” he said.

Lee said the Federal Government should look into controlling price, other than cement, of essential building materials, as the rising price of raw materials was a reason for soaring property prices.

Meanwhile, Raine & Horne Malaysia director Michael Geh said the RPGT would hurt current speculators who had already bought properties, and not the future ones who had yet to buy properties.

“If the existing speculators are hurt, the banks will also be dragged down.

“The Federal Government should look at curbing speculation through other means such as providing middle-income homes with an effective delivery mechanism that ensures only the eligible income category benefits,” Geh said.

Source: StarProperty.my

Heavy load: Trailer trucks ferrying concrete boulders along the 240m stretch of the main span of the cable-stayed bridge during the load test.

The second Penang bridge is now 99% complete and the launching date will be determined by the Federal Government some time next month.

Jambatan Kedua Sdn Bhd (JKSB) managing director Datuk (Ir) Dr Ismail Mohamed Taib said they hoped to wrap things up by Nov 8.

The Batu Maung interchange ramp that collapsed in June was rebuilt earlier this month.

“Motorists will get to enjoy free trips of the bridge for one month after its launch,” Dr Ismail told reporters during a load test at the bridge’s main navigational span yesterday.

The load test was carried out at the 475m cable-stayed bridge, to ascertain the load capacity of the bridge.

“It is important to ensure that the cable-stayed bridge is built according to the design and specifications,” Dr Ismail said.

A total of 17 trailer trucks ferrying concrete boulders weighing 595 tonnes were placed along the 240m stretch at the main span of the cable-stayed bridge.

Dr Ismail said even an earthquake would not affect the bridge.

“It was specially designed to withstand quakes measuring 7.5 and above on the Richter scale.”

Dr Ismail also said the project’s cost, which was earlier stipulated at RM4.5bil, was RM50mil lower and the excess funds had been used for landscaping and decorative lights.

The colour and tempo of the lights could be changed according to the country’s major festivities or celebrations, similar to the Incheon Bridge in South Korea.

The toll rate for the bridge has yet to be determined.

Source: StarProperty.my