Malaysia not heading into property bubble in next five years
A top property portal in Malaysia has said it is not expecting to see a property bubble in the next five years, as the nation has prepped fallback measures from the 1997-1998 economic turmoil and from the US sub-prime mortgage crisis in 2008. Although it will take time to stabilise house prices, the silver lining is slower economic growth. This will allow the market to re-adjust and respond to factors that correlate with the rising living costs, stagnant income growth and the increase of house prices. The market is currently supported by upcoming property projects initiated a year ago, which would be able to match the public’s expected pricing for houses. (Astro Awani)
Higher GDP forecast for Malaysia on better trade prospects
Some economists are turning more positive on the economic outlook for Malaysia this year, thanks to improving global trade prospects. Research houses have already raised, or planning to revise upwards, their 2017 GDP forecasts for Malaysia. SERC expects GDP to grow up to 5% this year, up from its initial forecast of 4.3% due to strong exports growth. The official 2017 GDP growth forecast for Malaysia, as announced by Bank Negara last month, stands at a range of between 4.3% and 4.8%. Last year, the economy grew 4.2%. (The Star Online)
Second Finance Minister Datuk Seri Johari Abdul Ghani (Photo from The Sun Daily)
Johari: Long-term rental just one of the option for Malaysians
The concept of a long-term rental of accommodation is just one of the many ideas that many Malaysians can consider for family housing, said Second Finance Minister Datuk Seri Johari Abdul Ghani. He said he had been wrongly portrayed as urging Malaysians not to purchase houses, but encouraging them to continue renting instead. Malaysians should evaluate their own lifestyle to see what works best, while the government would continue encouraging developers to build more affordable houses. Malaysians often tie themselves up to two big financial burdens upon entering the workforce, namely purchase of a car and house, instead of ideally concentrating on developing careers. He also cited examples of advanced economies such as Germany and Switzerland where percentage of house ownership is much lower. (The Sun Daily)
Refund for Forest City buyers caught in Beijing capital crackdown
Country Garden Holdings, whose Forest City project in Malaysia is the biggest overseas project by a Chinese property developer, said it will refund money to mainland investors caught up in Beijing’s escalating crackdown on capital outflows. Due to the tighter capital controls, most Chinese developers engaged in selling overseas properties are now forced to shift their focus from mainland buyers to other countries. Sales of the Forest City project have completely stopped in China, said Zhu Jianmin, vice-president of Country Garden. For buyers who made down payments on properties at Forest City but are no longer able to transfer the rest of the payment out of China, “they can cancel the transaction and there is no need to pay a forfeit fee”, Zhu said. (South China Morning Post)
Scale model of the Forest City development in Johor -NSTP/MOHD AZREN JAMALUDIN
Forest City ready for more foreign buyers
The Forest City development in Johor, which boasts a GDV of US$100bil (RM442bil) when fully completed in 20 years, is ready to be marketed to more international buyers. Master developer Country Garden will set up show galleries in the Middle East, India, Vietnam, Thailand, Japan, and Taiwan, among other countries, to attract global investors. The majority of initial buyers were from China, but capital controls imposed by Beijing had seen the company focus on buyers from other countries besides China. Forest City is also in talks with multinational companies such as retail and hospitality brands, investors and property companies to establish eight hubs in Forest City. (New Straits Times Online)
Sarawak’s land development to improve living standards
Land development for agriculture is part and parcel of development and Sarawak has embarked on developing its land for agriculture since the 1970s. Agricultural policies in the state aim to reduce poverty in rural areas, increase food production and income for the state. The slow growth rate of commercial planting last year – only 4.7% in 2016 compared to 25.5% in 2015 – has prompted the state government to declare that no more state land would be opened up for agricultural purposes. The issuing of timber licences and leases for new plantations have halted, illegal logging activities are being clamped down, and the number of national parks increased so that 10% of Sarawak’s land mass would be totally protected areas for conservation and research. (The Borneo Post)
Singapore property market to benefit from policy changes
Singapore’s property market is expected to benefit from a number of government policy changes that have recently begun to take effect, according to JLL. The report says that the city state’s population and skilled workforce growth rates are set to rise over the next few years to benefit office, retail and residential demand in the local property segment. JLL expects gradual relaxation of residential cooling measures, as well as the lift in government housing grants from March 2017, to boost home prices in the years to come. The government recently moved to increase housing grants for HDB flats by S$10,000 to S$20,000, which could translate into higher HDB sales proceeds, allowing sellers to buy bigger or more expensive private condominiums as they upgrade. This could result in a 5-10% increase in mass condominium sales. (The Edge Markets)
Thai billionaire Charoen plans US$3.5bil Bangkok development
Thailand’s richest man, Charoen Sirivadhanabhakdi, is planning a US$3.5 billion (RM15.5 billion) property development in central Bangkok that will include offices, homes and shopping malls. Charoen’s TCC Group and its Singapore unit Frasers Centrepoint Ltd. will develop the project, ‘One Bangkok’, which covers 41 acres and will be the largest mixed-use development in Thailand. The first stage of the project is expected to open in 2021. The 1.83 million square meter project, which is expected to be completed by 2025, will comprise five Grade-A office towers, five luxury and lifestyle hotels, three ultra-luxury residential towers and an array of retail outlets. (Malay Mail Online)
