purposely park my hp on top of local paper, showing today's date & my location was Malaysia, not in Taiwan
The few townhouses that in a queue up seen just walkway towards the property entrance
Yup, they are peas, served as part of the snacks, very fresh & juicy (Frankly speaking, these were found scattering & surrounding the bowl of nuts served, they might be just some decorative stuffs, huhu.
The lobby @ Tower A
Background is where the Function Hall & Block C & D (high rise blocks) located.
But despite of the fill-ups of almost zero space for further development at Bangsar, Bandar Raya Development (BRDB) have managed to get an 8-acre land to build one of the most luxurious and impressive condominiums in the area.
And I said I were impressed by something in my very 1st paragraph. Guess what ?The last transacted price on her bungalow unit (some called it Townhouse unit) was at a whooping RM6.9mill , for a size of 8k ++ and even more astonishingly heard by me was, according to the sale & admin dept, only one (and the only one) out of the few ten units available unit were taken !!! And, the only left unit is actually tenanted !
By the way, the biggest size of these bungalow unit is 10,291sf, current developer price apparently is selling at RM1100/sf. Hope I didnt hear it wrongly.... And, please punch on your own, your calculator, how much you need to pay per month, with Maintenance fees charged at 45cents per square foot.
Clearly, the search results do not tally with the consensus as to where the current hot spots are. For example, Puchong and Cheras are not high up as hot spots yet raked in high search numbers. One explanation is that most people who search the Internet for properties are of the younger set who most likely could not afford expensive areas such as Bangsar and Damansara, and hence are looking at more affordable areas in Puchong and Cheras. It also explains why Bangsar ranked only 14th in the number of searches while Damansara is not even within the top 30 (it’s actually at #31 spot).
Another explanation is that there is a disproportionate number of outstation migrants coming to work in Klang Valley who prefer to stay in Puchong and Cheras areas, which are well-established townships at the fringe of KL and PJ. The areas still have lots of land that can be developed and new launches are relatively frequent there. Both areas still have lots of room for growth and the current populations there are expected to rise even further in the near future.
In comparison, Bangsar and Mont Kiara, although still having pockets of projects under construction, are smaller areas with lower population. The lower density and prime location translate into higher prices, hence attracting fewer outstation migrants.
THE idea of an auction seems to be the creation of a market for goods that would otherwise not exist. For instance, antiques and second hand merchandise are rare goods that would be difficult to obtain without going through an auction.
In light of recent economic hardship, another segment appears to have entered the auction market in a relatively big way and that is property.
Property auctions are far from new, but they have taken on a new lease of life in the west since the credit crunch.
The Daily Telegraph reported that only 15,000 properties changed hands in the United Kingdom at auctions in 1998, but by 2007 the figure had more than doubled. This was just before the financial crisis hit its peak, when 45,000 repossessed homes flooded the UK property auction market in 2008.
Back home in Malaysia, acquiring properties through auctions seems to have become popular as well.
However, although the number of purchases have risen in recent years, Ehsan Auctioneers Sdn Bhd sales manager Mohd Ali Abdul Majis argues that this increase, unlike the trend in the west, is not related to the credit crunch.
“We have recorded a steady rise in the number of auction purchases in recent years. Business started picking up in 2007, and although there is an indirect link between the credit crunch and this increase, I would say that public awareness was the most important factor,” he says.
He cites the ease at which people can get details of auctions via the Internet as a major contribution to this awareness.
“As a result, investors nowadays are more willing to invest in different ways if it benefits them. It seems that they have associated good opportunities with property auctions,” he adds.
Good opportunities indeed. Most properties are auctioned off at 20% below their market value, with a reserve price of up to 50% below its market value, in some cases.
It is not difficult to take part in a property auction – all that is needed is a bank draft of between 5% - 10% (depending on the property and auctioneer) of the reserve price, as well as the ability to pay the difference of amount in cash if the final auction price moves up. This, in addition to being over the age of 18 and having an identity card, and you are ready to take part in the bidding process.
There has been some concern in recent months over an imminent real estate bubble in Malaysia. How real is this threat or is it merely confi ned to a few hot spots?
CONCERNS over whether the local housing market is overheating and will lead to an asset bubble are raising questions on whether there is a need for more tightening measures to curb speculative buying and ensure the market stays sustainable.
Dr Yeah Kim Leng ... ‘Anything can trigger a collapse. An economic slowdown, for example.’The local housing market has not “hit the roof” like in some places in the region such as in Hong Kong, Shanghai and Singapore which have recorded sharp price jumps of 40% to 60% since last year.
Nevertheless, prices of landed houses in some popular areas in the Klang Valley, Penang and Johor have appreciated by 10% to 30% over the past six to eight months.
Tang Chee Meng ... ‘The state of the property market is very much dependent on the state of the country’s economy.’ If the Government decides to reintroduce the RPGT in its entirety, property speculators will get the brunt of the “axe” as gains from property sales within the first five years of purchase will be subjected to a tax of 5% to 30%.
Usually if a market is flushed with speculative buying and a bubble is imminent, property prices will spike sharply across the board of a certain market within a short time like what is happening in a number of countries in the region today.
A case in point – a 26-year-old government-built apartment of 420 sq ft in the Sham Shui Po area of Kowloon district was transacted at HK$1.98mil, or HK$4,714 per sq ft.
Reason for concern?
Is Malaysia facing a similar risk and is there worry of an imminent overheating or bubble?
Real Estate and Housing Developers’ Association (Rehda) president Datuk Michael Yam discounts the possibility of overheating or an asset bubble in the local market.
“We believe the steep price increases are only reported in scattered locations in the Kuala Lumpur City Centre and some landed housing projects in the Greater Kuala Lumpur area. This does not represent a bubble but more of a short-term deviation from fundamentals that are due to isolated speculative activities in some areas.
“The recent spurt in prices may be due to the effect of the earlier stimulus package and liquidity but that has stabilised and a plateau has been formed,” he relates to StarBizWeek.
“Landed terrace and semi-detached houses have seen big capital appreciation due to the limited stock available and future supply especially in prime locations. As a consequence, prices of current stock in strategic areas of Medan Damansara, Bangsar, Sri Hartamas, Bandar Utama and even new launches at Desa Park City are at or above the RM1mil mark for a double or 3-storey terrace house.
Malaysia Property Inc chief executive officer Kumar Tharmalingam says the issue of a bubble is being overblown.
“A single swallow does not make a summer. There may be certain projects fetching premium values or prices for their products, but it is not representative of the overall market.
“ The strong buying interest is not across the board but is mainly centred in the high growth markets of the Klang Valley, Penang and Johor,” he adds.
Kumar says concerns that the potential slowdown in the West will affect the local market are also overrated.
An imminent uptrend?
According to Mah Sing Group Bhd group managing director and chief executive Tan Sri Leong Hoy Kum, the property market is still in the early to mid-phase of an upcycle.
“We do not see a strong risk of a property bubble happening yet and there is no sign of overheating. The price increase in properties has not been broad-based, but demand driven and rather selectively in prime locations.”
Leong says certain locations and types of products are more resilient in terms of demand, capital appreciation and value preservation.
“A healthy property market is good for the economy and quality properties in prime locations are deemed to provide a good hedge against inflation. Barring any external shocks, we are cautiously optimistic that the property market should continue to do well in the short and medium term,” Leong says.
Kumar concurs with Yam that the Government’s stimulus packages are only filtering into the system now and are creating greater confidence and interest in the property market.
“Developers are venturing into niche products with better quality finishings and designs, as buyers want the least fuss these days. This has driven developers to go into higher value residences,” he concludes
Hoho, such a creative creation that he & his wife-to-be had came out with!
The houses on offer in the secondary market were not your typical medium cost house or apartment that many Malaysians live in these days, but were million dollar dream homes that many aspire to own.
This got me thinking. Why are many new property launches and existing homes exorbitantly priced? Why are there few to none of the bread-and-butter houses being built?
If developers keep developing and selling higher priced properties, this will lead to an imbalance in supply and demand in the housing market.
Some of the last major townships launched in the Klang Valley include Setia Alam, Kota Damansara, Mutiara Damansara, Ara Damansara and areas surrounding Kepong and Puchong.
Initially catering for affordable homes, the price and types of properties being sold in those areas have moved up in scale.
The surge in home prices these days has been faster than the rise in wages and it would not be long, if it is not already happening, before such properties in the Klang Valley become too expensive for the average Malaysian.
Cheap financing has enabled Malaysians to own more expensive houses. Home buyers often require a small downpayment before purchasing homes.
The low interest rate environment, banks flushed with cash and innovative schemes have also allowed loan repayments to be kept within check – for now.
Furthermore, banks wanting to grab a larger slice of the home loan market are said to have engaged with external sales teams and other agents whose sole motivation might be to secure more loans.
While the absence of large land banks would be the prime reason for developers opting for smaller and higher priced properties, the process of pricing, while still a function of supply and demand, is also subjective. This subjective approach is also the norm in the secondary market.
Those who own homes would have heard about how much properties in their neighbourhood were recently sold for. People would then take that as the market price and would likely want the same price or higher when selling their home.
A gauge of what a house is worth would be the rental it can fetch. As prices of homes rise and the rental market, which is more linked to the disposable income of people, remains static and rigid, the inflated prices of property becomes more apparent.
Yes, price inflation of properties – if it remains strong – would offset the loss in returns from rent if people buy properties as an investment.
But then people should also consider whether they are better off renting and investing their money in higher yielding assets.
Escalating property prices also pushes homes out of the reach of the current generation.
Younger people who are just starting out in life may have to live at the fringes of Klang Valley, which then increases their cost of commuting to their workplace.
Those wanting to stay in the Klang Valley have then no choice but to opt for cheaper apartments or low cost dwelling.
It’s almost like the pickings are getting slimmer. My parents’ generation could afford a bungalow, mine a terrace house and what about my children’s generation if prices keep going up as they have?
The escalation in home prices, which would add to the leverage of home buyers, is also a warning sign. All it takes is one bad recession – recessions are becoming more frequent than in the past – and that would be trouble.
We only have to look at the implosion of the sub-prime market in the US to see what a housing collapse can bring.
From The Star.com
Aug 12, 2010
PETALING JAYA: Perkasa president Datuk Ibrahim Ali has labelled the Chinese as ungrateful for not voting Barisan Nasional despite its promises and pledges to help the community during the campaign period for the Sibu by-election.
In a statement on the Perkasa website yesterday, Ibrahim, who is Pasir Mas MP, claimed the Chinese voters in Sibu had not appreciated the promises of projects and financial assistance made by Prime Minister Datuk Seri Najib Tun Razak.
“The Chinese voters didn't appreciate what has been given by the Prime Minister to them, for example, his support for vernacular schools and so on.
“The Chinese voters openly supported the DAP policies. The Chinese voters want their own ways to prevail, despite the bumiputras having to 'swallow' the Barisan Nasional's call for compromise to allow the Chinese community to have their wish,” he said here yesterday.
It was the second such statement by the controversial independent MP after his earlier statement asking the Government to delay development for the Chinese community after Barisan Nasional won the Hulu Selangor by-election last month.
MCA publicity bureau deputy chief Loh Seng Kok, meanwhile, challenged Ibrahim to come up with more constructive statements on how to realise the 1Malaysia concept instead of questioning the Chinese support for Barisan.
“Does Ibrahim Ali have any recommendations on how to resolve the people's grievances?” Loh asked in a statement yesterday.
