\nFinally, some good news for\u00a0the country\u2019s real estate sector
\nThe Petronas Towers dominate the skyline in Kuala Lumpur
\nIt is not quite a riches-to-rags story, and it\u2019s hardly likely to bring a tear to the eye of those who take a dim view of real estate agents, but a 2016 report from The Malay Mail Online on how real estate agents took up second jobs to pay their bills offered a stark insight into the sharp end of the Malaysian residential property market lately.
\nMichael, a 38-year-old realtor, had gone from earning \u201cfive figures almost each month\u201d in 2012 to having to supplement his income by driving for ride-sharing service Grab in order to keep up the payments on his car and house.
\n\u201cMy property listings in Bangsar, Damansara and some parts of Johor and Ipoh were doing great,\u201d said Michael with some nostalgia. \u201cI used to sell about two to three high-end properties a month but now I hardly sell one and even if I do, the property would be a mid-range one.\u201d
\nThe official figures would corroborate Michael\u2019s tale of woe. According to Malaysia\u2019s National Property Information Centre (NAPIC), over the course of 2015, residential property transactions slid 4.6 percent in volume and 10.5 percent in value from 2014 levels. New launches also declined by 19.2 percent from to 70,270 units in the same period.
\nThe most recent quarterly figures from NAPIC, meanwhile, show that the gloomy trajectory has steepened in the first three months of 2016. Transactions were down 16.6 percent from the same period in 2015 and down 15.7 percent from the last quarter of 2015.
\nSurely if the market was going to have a major issue, it would have done so by now
\nWith oil prices slumping worldwide \u00a0and the ringgit now Asia\u2019s worst performing currency, the oil-exporting country\u2019s economy is faltering. The GDP declined from USD10,737 per capita in 2014 to USD10,222 in 2015.
\nPrem Kumar, executive director of Jones Lang Wootton, suggests however that these grim economic conditions counter intuitively give some cause for comfort to those involved in the property market.
\n\u201cWhat is important coming out of this is that we have been accustomed to all of this for the last two years at least,\u201d he says. \u201cIf these macro issues over the last couple of years have all been factored in, surely if the market was going to have a major issue, it would have done so by now.\u201d
\nGood, strong houses tend to have good, strong foundations. Kumar believes Malaysia has just that with a \u201cstrong, solid base of population\u201d and fairly low unemployment rates. Historically, he believes, downturns or slowdowns in the Malaysian property market have been caused by external events such as the Asian financial crisis of 1997 or the American subprime crisis of 2008 rather than any internal dysfunction.
\nAreas such as Sabah, on Borneo, offer decent value and an excellent quality of life
\nMore: What makes Malaysia one of the best places in the world to retire?
\nAnd, odd though it may at first seem, when it comes to supply and demand, the currently languid Malaysian property market also appears to be doing rather well. An H1 2016 study by PropertyGuru reported that 60 percent of respondents are keen on buying a new home within the next six months.
\nMalaysian consumers today are looking into the market at large
\n\u201cIt typically takes an average of about six or seven months for Malaysian investors to wake up to the idea of buying a property to actually making that purchase,\u201d notes Sheldon Fernandez, Malaysia country manager of PropertyGuru. \u201cThe big part of their process is searching and viewing properties, especially in online platforms. According to our latest investor survey, Malaysian consumers today are looking into the market at large.\u201d
\nFernandez adds that consumer sentiment bottomed out in the last half of 2015 up to the first semester of 2016, but it has been moving towards a bit more positive sentiment by the end of the year, with majority of home-seekers looking to buy in the primary market.
\nIndeed, in PropertyGuru\u2019s survey, the top considerations of Malaysian consumers are: price, location and size of property. Local banks are currently tightening loan rules \u2013 computing from a borrower\u2019s net income instead of gross income \u2013 which can make it more difficult for prospective buyers to get their home loans approved. And despite residential prices having been stagnant in recent quarters, the report stated that consumers feel that property prices are increasing at much faster rate than affordability rates.
\nFernandez also says that another huge consideration for consumers is assessing the suitability of locations, now that many developers are building properties in areas that aren\u2019t known to the usual property buyers, like Rawang and Negiri Sembilan.
\nMeanwhile, Puchong, Klang Valley, Johor Bahru, Nusajaya and Skudai have become the favoured investment locations outside Kuala Lumpur, according to PropertyGuru data. Developers in these areas specialise in smaller houses in an effort to address the demand and reduce asking prices.
\nOther areas proving particularly attractive to wealthy locals and foreign investors alike are the UNESCO World Heritage recognised area of Penang where salubrious waterfront developments and high-rise condominiums have been springing up along the coast.
\nMeanwhile, the planned high-speed rail (HSR) line between Singapore and Kuala Lumpur, due for completion in 2026, won\u2019t just benefit the capital as it whisks passengers between the two termini in just 90 minutes. With stops in Putrajaya, Negri Sembilan, Malacca and Johor, the MYR38.4 billion (USD9.4 billion) project is likely to help stoke the continuing development of the Iskandar Malaysia economic corridor.
\nProfound infrastructure improvements are also expected to have a major impact on the property market of Sabah, the Malaysian state on the north of the island of Borneo. The MYR12.86 billion (USD3.2 billion) first phase of the Sabah Pan Borneo Highway Project will see much of the existing road upgraded to dual carriageway along a 706-kilometre stretch, connecting the major cities in the state.
\nSince 2008 Georgetown in Penang, a city on the northwest coast of Peninsular Malaysia has been UNESCO listed as World Heritage Site because of the many original colonial shophouses.
\nMore: Both good and bad news for Iskandar Malaysia
\nDespite all the challenges in the market, many within the industry remain optimistic, with the current situation being variously described as \u201cknee-jerk\u201d or \u201ctemporary.\u201d Having spent more than three decades working in the Malaysian property market, Siva Shanker, CEO of property group PPC International and president of the Malaysian Institute of Estate Agents (MIEA), sees little cause for panic.
\nAlthough things look bad now, I don\u2019t think it will be like this forever. We\u2019ll see the market begin to level out and start its upward trend
\n\u201cAlthough things look bad now, I don\u2019t think it will be like this forever, because everything is in a cycle, he says. \u201cThe year 2016-17 will see the market finding its level. The knee-jerk reaction will subside and 2018-19 will see the marking beginning to level out and start its upward trend,\u201d Siva adds.
\nPerhaps the road ahead isn\u2019t actually as bumpy as it looks right now, and Michael will soon be able to steer his career back towards real estate. As far as Jones Lang Wootton\u2019s Kumar is concerned, however, it might be best for investors and estate agents like Michael to focus on the road that lays far in the distance rather than the bumps in the immediate future.
\n\u201cNow if you are in the market, and you are a genuine investor and you want to buy a property, take it as long term. You do not want to be a speculator because speculators get kicked much quicker. So if you\u2019re an investor, no time is wrong, every time is right, but if you are a speculator, there are only certain times which are right.\u201d
\nWhere to buy<\/p>\n
Click to view slideshow.
Finally, some good news for\u00a0the country\u2019s real estate sector The Petronas Towers dominate the skyline...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-42073","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-aWB","jetpack-related-posts":[{"id":55573,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/real-estate-agents-censured-for-threatening-to-extort-thousands-from-rival\/","url_meta":{"origin":42073,"position":0},"title":"Real estate agents censured for threatening to 'extort' thousands from rival","date":"May 21, 2017","format":false,"excerpt":"\r Two real estate agents unhappy at losing a sale threatened to \"extort\" thousands of dollars from a rival agent, a tribunal has found.Former Century 21 agents Michael Black and Lawrence Wong originally demanded $24,000 plus GST from...\r \r Source : nzherald.co.nz\/Property\r Read more...Real estate agents censured for threatening to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":62234,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/high-profile-agency-owner-michael-boulgaris-warns-of-bad-eggs-in-cooling-market\/","url_meta":{"origin":42073,"position":1},"title":"High-profile agency owner Michael Boulgaris warns of 'bad eggs' in cooling market","date":"July 30, 2017","format":false,"excerpt":"\r Desperate real estate agents are set to turn on each other in a dirty fight for commission money as the sizzling propery market cools, a high profile agency owner warns.\"There's too many real estate agents out there,\" Michael Boulgaris...\r \r Source : nzherald.co.nz\/Property\r Read more...High-profile agency owner Michael Boulgaris\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":116103,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/estate-agents-bill-increases-fines-for-errant-estate-agencies-property-agents\/","url_meta":{"origin":42073,"position":2},"title":"Estate Agents Bill increases fines for errant estate agencies, property agents","date":"May 6, 2020","format":false,"excerpt":"\r The new Estate Agents (Amendment) Bill will see the maximum fine increased to $200,000 for real estate agencies and $100,000 for property agents.\u00a0 The Estate Agents (Amendment) Bill, which was passed in Parliament on Tuesday (5 May), raised the maximum fines that could be imposed on errant real estate\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17418,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/real-estate-agents-wish-list\/","url_meta":{"origin":42073,"position":3},"title":"Real estate agents wish list","date":"June 23, 2016","format":false,"excerpt":"\r Buyers, sellers, and tyre-kickers can frustrate real estate agents. If buyers and sellers thought about the work agents do, the buying and selling process would go a whole lot better.So Herald Homes asked real estate agents if there...\r \r Source : nzherald.co.nz\/Property\r Read more...Real estate agents wish list","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":62214,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/realty-agents-tipped-to-turn-feral-as-market-cools\/","url_meta":{"origin":42073,"position":4},"title":"Realty agents tipped to turn feral as market cools","date":"July 30, 2017","format":false,"excerpt":"\r Desperate realty agents are set to turn on each other in a dirty fight for commission money as the market cools, a high profile agency owner warns.\"There's too many real estate agents out there,\" Michael Boulgaris told the Weekend...\r \r Source : nzherald.co.nz\/Property\r Read more...Realty agents tipped to turn\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54597,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/real-estate-agents-warned-to-watch-for-collusion\/","url_meta":{"origin":42073,"position":5},"title":"Real estate agents warned to watch for collusion","date":"May 13, 2017","format":false,"excerpt":"\r Real estate agents are being warned to watch for collusion by property investors after revelations in the Weekend Herald .The industry watchdog has issued a reminder to agents to protect their clients and watch out for market tactics...\r \r Source : nzherald.co.nz\/Property\r Read more...Real estate agents warned to watch\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/42073"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=42073"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/42073\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=42073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=42073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=42073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nClick to view slideshow.
\nClick to view slideshow.
\nClick to view slideshow.Tips for overseas investors
\nMalaysia has one of the most foreigner-friendly policies in the region, allowing foreigners to own an unlimited number leasehold and freehold property, subject to state consent. There are a few limitations, however. These are:
\n\u2022 Properties valued below RM500,000 (roughly USD 112,000). If buying in the state of Selangor, it\u2019s RM2million
\n\u2022 Land or properties with \u201cMalay Reserved\u201d status
\n\u2022 Agriculture land (except if it\u2019s above 5 acres and for commercial purpose)
\n\u2022 Properties restricted for Bumiputra (Malays and indigenous people)
\nRead next: The ultimate guide to SE Asian real estate in 2016
\n
\nSource : property-report.com
\nRead more…Why Malaysia\u2019s market woes may soon be over<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"