70%. Likewise page views
escalated to 90%, says the
company’sMalaysia country
manager Gerard Kho.
Data fromGoogle Analytics
also reveals a rise in the
number of the company’s
property agents during the
second half of 2013; an
almost 50%hike inMalaysian
agent memberships across all countries.
MARKET OUTLOOK
A study conducted by the real estate
portal experts reveals consumers’ sentiments
towards the local propertymarket.
It shows a
decrease in purchase intent
for properties across ALL categories
.
Reason for this decline:
towering costs of
home ownership
.
The report also indicates
dissatisfaction
in the local propertymarket, with homes
inMalaysia deemed less affordable
.
“The average household income of
Malaysians comes up to an average of
RM5,000. Unfortunately, the property price
affordability benchmark stands between a
range of RM300,000 – RM600,000 and is
backed by an accolade of underlying factors
such as household debts, Real Property Gains
Tax (RPGT), the Goods and Services Tax
(GST), oversupply andUnder
Construction Risks. As a result,
manyMalaysians face difficulties in
obtaining their own property of
choice and are often overwhelmed
by the factors that surround their
purchasing decisions,” says Kho.
Likewise, the future looks
challenging even for developers
and potential buyers, especially
with the
30% increase in RPGT
for buyers who sell their home
within five years from the time of
purchase, and the property price
threshold for foreigners raised to
RM1 million.
Additionally, with the
government’s intention to introduce
GST in April 2015 (though residential
properties are exempted), inflation
and living expenses will naturally
escalate, especially in the urban
areas, affecting lower-income
earners whowill predominantly
feel the brunt of this tax, Kho says.
GOVERNMENT’S ACTION PLAN
To control the country’s rising
household debt, BankNegara
Malaysia abolished the interest
capitalisation scheme and the
Developers Interest Bearing
Scheme (DIBS). Local banks and
A DIFFERENT PERSPECTIVE
Althoughmarket changes, new
implementations, subsidies and cuts may
give the local property outlook a gloomy
forecast, there are always twoways of looking
at circumstances. Kho shares his perspective
on the GST.
“In spite of the expected home price hike,
the GST and the subsidy cuts can be a boon
forMalaysia in the long termprovided these
measures are implementedwell.
Eliminating
the subsidieswill result in a free economy
which in turnwill lead to higher income
forMalaysians
,” he says.
MAY 30, 2014
Please email your feedback and queries
to:
X
B
URGEONING
property prices and
growing uncertainties in the local
propertymarket did not hinder
prominent real estate portal
PropertyGuru’s improved performance.
In fact, these “hindrances” that come as
stumbling blocks for many, were the very
challenges that contributed to the
company’s success in 2013.
FRUITFUL YEAR
PropertyGuru CEO and co-founder
SteveMelhuish shares: “2013 has seen
continuous growth for the group in
Singapore, Malaysia, Thailand and
Indonesia. PropertyGuruMalaysia is
shifting towards becoming a leading
brand inMalaysia in 2014 by establishing a
solid presence in the digital property
portal platter, taking the role of a
competitivemarket leader in full force”.
Apart fromputting people first,
PropertyGuru focuses heavily on
innovation. Over the last 18months,
the company developed and launched
12 mobile applications in four countries
and three languages which have received
over half amillion downloads.
Its 2013 report shows that searches
on its local portal increased by 100%while
the number of website visitors rose by
Digital
direction
>
the
Sun
gleans insights on themarket climate
fromPropertyGuruMalaysia
2015
RANK
STATE
FY 2012
MALAYSIA
RM 5,000.00
1 W.P. Kuala Lumpur
RM 8,586.00
2 W.P. Putrajaya
RM 8,101.00
3 Selangor
RM 7,023.00
4 Penang
RM 5,055.00
5 Malacca
RM 4,759.00
6 Johor
RM 4,658.00
7 Negri Sembilan
RM 4,576.00
8 Sarawak
RM 4,293.00
9 Sabah & W.P. Labuan RM 4,089.00
10 Terengganu
RM 3,967.00
11 Pahang
RM 3,745.00
12 Perak
RM 3,548.00
13 Perlis
RM 3,538.00
14 Kedah
RM 3,425.00
15 Kelantan
RM 3,168.00
Source: Department of Statistics: Table 2: Mean Monthly Gross
Household Income by Ethnicity, Strata and State, Malaysia,
1970-2012
THE REALITY:
Average household income RM5,000
Affordable homes price range RM300k – RM600k
finance companies are required to fix their
loan-to-value (LTV) ratios based on the net
selling price rather than the gross selling
price. Prudent as thesemeasures are, Kho
feels they do not address the right issues.
“This will cause a sluggish and expensive
incoming supply of properties due to long
approval processes. The new rules will
principally affect first-time home buyers; they
will need to fork out a larger down payment.
“
Sale of properties is also expected to
be “lethargic”
but there will always be
genuine buyers who have no qualms
purchasing their desired homes,” he says.
As for themajor developers, Kho says they
have the resources to complywith the new
rules whereas small andmedium-sized firms
can adopt the “wait-and-see” approach.
Observations on market outlook and change of consumer
behaviour, due to influence of technology
1) Majority of consumers (
68%
) are
not satisfied with the property price hike
predicted for 2015.
2)
Buying interest has dropped
; investors (owning one property), are more interested
in rental value than purchasing additional properties.
3)
Apartments
and
condominiums
are the
preferred property type
.
4) There is an
average steady increase of 10% in property prices
across all property
types including private condos, semi-d’s, terraced houses and bungalows.
5) Whether there is a 6% service tax and no GST or a 6% GST and no service tax,
Klang Valley property prices have increased by 30%.
6) Consumers wish-lists include:
reduce cost of essential goods such as food
;
reduce
income tax
;
lower financing rates
;
lower house prices
;
create feasible home
ownership schemes for first-time home owners
;
make affordable homes such as
PR1MA
;
establish longer loan tenures
and others.
7) The average household income of Malaysians is RM5,000. Price range of homes
considered affordable
in KL is between RM300K and RM412K; in Selangor RM252K
and RM350K.
Affordable homes are therefore stipulated within the RM300K and
RM600K bracket
(statistics obtained from Department of Statistics).
8) There is a
massive increase in online search queries
across South East Asia proving
that property seekers have moved to on-line measures to seek information
pertaining property.
9) According to research by Google, there are
seven steps to purchasing a home
:
explore, check finance, info search, view property, close transaction, secure financing
and sell existing property.
10) With property prices continuing to soar, cooling measures implemented by
Bank Negara Malaysia (BNM) like the abolition of the interest capitalisation scheme
and DIBS; GST implementation and RPGT adjustment; and the RM1 million
benchmark for foreign property purchase, etc will lead to
less demand and
an over supply of property.
(Information fromGerard Kho of PropertyGuru)
Lastweekend for Tropicanabest-buys
HERE
is your last chance to purchase
property at better than a gooddeal. For those
with their eyes on the recently launched
award-winningTropicanaMetropark in
Subang, two days are left to receive one of the
best bargains offered at TropicanaCollection
Campaign, which ends onMay 31.
Apart fromthe integrateddevelopment
winning honours at the recent Asia Pacific
PropertyAwards 2014 for Landscape
Architecture; last year, itwas also awarded
for BestMixed-UseDevelopment.
TheTropicanaCollectionCampaign
offers the best of Tropicana properties and
developments. This year it features those in
hotspot areas like Penang, IskandarMalaysia,
KotaKinabalu andKlangValley. Fromurban
integrateddevelopments towaterfront and
nature-inspiredproperties, Tropicana offers
more than just real estate.
Take the opportunity nowtomake a home
in one of the 323 apartment units or the 16
spacious villas at Paloma Serviced
Residences, TowerA. There are various
designedunits to choose fromincluding the
609 sq ft studio unit ideal for single
professionals; the 916 sq ft two-bedroom
units suitable for young couples; the 1,306 sq
ft three-bedroomunits for small families; as
well as the courtyard 4+1-bedroomvillas
which boasts between 2,400 and 2,588 sq ft,
perfect for larger households.
Sprawled out across 88 acres, Tropicana
Metropark is an integrateddevelopment
designed to offer serviced residences,
retail and business units, SOHOs,
office towers and a shoppingmall. All
these centre around a 9.2-acre “oasis”
calledCentral Parkwhich is created
to promote leisure, recreation and
entertainment.
Visit TropicanaMetropark sales
gallery between9.30amto 6.30pm
thisweekend to find some of the
most attractive sales packages
available. Bring friends and family
andhave a good time discovering
your dreamhome enhancedwith
sparkling and luxurious facilities that
include infinity and sanctuary pools; floating
pavilions; barbecue areas; even a sky
sanctuary for adults only fittedwith a sky
gym, bubble tubs, sky gourmet dining area
and other facilities.
CUT AND KEEP
