Johor may double floor price for foreign buyers

[reporter2]

http://www.businesstimes.com.sg/arch...uyers-20130112

Published January 12, 2013

Johor may double floor price for foreign buyers

Minimum price may be raised to RM1 million in bid to cool property prices, says official

By pauline ng

In Kuala Lumpur


IN A BID to rein in prices because of the growing interest in Iskandar Malaysia, Johor is mulling a doubling of the floor price for properties bought by foreigners in the state to RM1 million (S$404,240) from RM500,000 at present. If implemented, Singaporeans as the largest group of foreign buyers would be the most affected by the tightening of such guidelines.

Local government, housing, arts, culture and heritage committee chairman Ahmad Zahri Jamil revealed that the state economic planning unit is looking into the matter and would make a decision on the matter later this year.

"We are concerned about the spiralling house prices in the state, especially in Iskandar Malaysia," the Star daily yesterday reported Mr Ahmad as saying. "One waterfront project with 500 units was fully taken up with just 30 per cent of the project completed," he observed.

If Johor opts to raise the price floor, it would be the second state after Penang to do so. Last year, the Penang state government increased the threshold to RM1 million for apartments on the island acquired by foreigners, and double that amount for landed property.

However a property consultant does not think such a move would aid local purchasers. On the contrary he believes it could result in a "pull-up effect" for Malaysian buyers.

KGV-Lambert Smith Hampton (Johor) executive director Samuel Tan said foreigners keen on Iskandar would not be deterred, especially since their currencies tend to be far stronger than the ringgit. Also, Malaysian real estate is still considerably cheaper than Singapore's.

Moreover, he thinks developers will just adjust prices upwards to meet the criteria. "If I am selling a semi-D at RM700,000 I will just increase the price to RM1 million."

Instead, he suggests a two-tier taxation system, foreigners paying more through higher real property gains tax or stamp duties.

Now that it is closer to a tipping point, foreign interest in Johor and Iskandar in particular is definitely on the rise. At the same time, measures by Singapore to cool its market have also pushed some of its citizens and expatriates to consider Malaysia's southern-most state.

In the past year, property prices in Johor have seen a noticeable surge. For example, new service apartments were priced at about RM400 psf two years ago, but more recent launches retail at RM900 to over RM1,000 psf.

A lot of the foreign interest is in greenfield areas such as Nusajaya and Medini - both precincts do not have a quota restriction on foreign buyers of a development whereas a 30 per cent limit applies in other parts of the state.

According to Mr Tan, Singaporeans easily make up half the buyers in some recent service apartment launches. "Some developers are even launching in Singapore before Malaysia although I think it should be the reverse," he observed.

Brownfield areas including Tebrau are also in demand, especially among Singaporeans already familiar with the surrounding infrastructure.

[jacelynchia]

Call me backward but I will never invest in Malaysia Properties.
Find there is lack of stability in economy and politics and more. No offence

Has anyone invested in malaysian properties?
Can someone share what is the profit quantum like?

[hyenergix]

http://www.businesstimes.com.sg/arch...uyers-20130112

Published January 12, 2013

Johor may double floor price for foreign buyers

Minimum price may be raised to RM1 million in bid to cool property prices, says official

By pauline ng

In Kuala Lumpur


IN A BID to rein in prices because of the growing interest in Iskandar Malaysia, Johor is mulling a doubling of the floor price for properties bought by foreigners in the state to RM1 million (S$404,240) from RM500,000 at present. If implemented, Singaporeans as the largest group of foreign buyers would be the most affected by the tightening of such guidelines.

Local government, housing, arts, culture and heritage committee chairman Ahmad Zahri Jamil revealed that the state economic planning unit is looking into the matter and would make a decision on the matter later this year.

"We are concerned about the spiralling house prices in the state, especially in Iskandar Malaysia," the Star daily yesterday reported Mr Ahmad as saying. "One waterfront project with 500 units was fully taken up with just 30 per cent of the project completed," he observed.

If Johor opts to raise the price floor, it would be the second state after Penang to do so. Last year, the Penang state government increased the threshold to RM1 million for apartments on the island acquired by foreigners, and double that amount for landed property.

However a property consultant does not think such a move would aid local purchasers. On the contrary he believes it could result in a "pull-up effect" for Malaysian buyers.

KGV-Lambert Smith Hampton (Johor) executive director Samuel Tan said foreigners keen on Iskandar would not be deterred, especially since their currencies tend to be far stronger than the ringgit. Also, Malaysian real estate is still considerably cheaper than Singapore's.

Moreover, he thinks developers will just adjust prices upwards to meet the criteria. "If I am selling a semi-D at RM700,000 I will just increase the price to RM1 million."

Instead, he suggests a two-tier taxation system, foreigners paying more through higher real property gains tax or stamp duties.

Now that it is closer to a tipping point, foreign interest in Johor and Iskandar in particular is definitely on the rise. At the same time, measures by Singapore to cool its market have also pushed some of its citizens and expatriates to consider Malaysia's southern-most state.

In the past year, property prices in Johor have seen a noticeable surge. For example, new service apartments were priced at about RM400 psf two years ago, but more recent launches retail at RM900 to over RM1,000 psf.

A lot of the foreign interest is in greenfield areas such as Nusajaya and Medini - both precincts do not have a quota restriction on foreign buyers of a development whereas a 30 per cent limit applies in other parts of the state.

According to Mr Tan, Singaporeans easily make up half the buyers in some recent service apartment launches. "Some developers are even launching in Singapore before Malaysia although I think it should be the reverse," he observed.

Brownfield areas including Tebrau are also in demand, especially among Singaporeans already familiar with the surrounding infrastructure.

This article pretty much confirms my research and my latest purchase in Tebrau. West (Nusajaya) is probably around 60% point of bull run, while east side is at the 40% point of a bull run.

Singapore developers' PCs prices will be pretty stagnant for the next few years except for those few areas I highlighted last time due to sandwiching effect by falling CCR prices and rising HDB prices.

[Rosy]

Basically force foreigners to purchase their properties that are above 1mil.

What will happen when one day they decide to implement foreigners can only sell back to locals?

[hyenergix]

1. Basically force foreigners to purchase their properties that are above 1mil.

2. What will happen when one day they decide to implement foreigners can only sell to locals?

Point 1. The $1 mil RM ruling will force prices to accelerate upwards i.e. the article is correct.

Point 2. It will crash Iskandar, and this is unlikely what the government will do, simply because it is in heavy debts after all the infrastructure investments and subsidies of keeping the new expressways toll-free.

[radha08]

This article pretty much confirms my research and my latest purchase in Tebrau. West (Nusajaya) is probably around 60% point of bull run, while east side is at the 40% point of a bull run.

Singapore developers' PCs prices will be pretty stagnant for the next few years except for those few areas I highlighted last time due to sandwiching effect by falling CCR prices and rising HDB prices.

congrtes bro u have good foresight

[hyenergix]

congrtes bro u have good foresight

Everything has risk, so I don't dare to accept your compliments in case things turn south

I just like the fun of projecting and in rare cases, acting upon my projection by buying. I may be wrong...

[Ilikeu]

Point 1. The $1 mil RM ruling will force prices to accelerate upwards i.e. the article is correct.

Point 2. It will crash Iskandar, and this is unlikely what the government will do, simply because it is in heavy debts after all the infrastructure investments and subsidies of keeping the new expressways toll-free.

Iskandar has been in my mind for months and months but just dun have the guts to get serious.... RM500k still can consider but maybe this RM1m will just make me forget about it now.

[hyenergix]

Iskandar has been in my mind for months and months but just dun have the guts to get serious.... RM500k still can consider but maybe this RM1m will just make me forget about it now.

Dun miss the boat...

[propertychap]

Nusajaya seems a viable investment with all the developments. Anyone knows about Nusantara Prima? The prices look cheap

[hyenergix]

Nusajaya seems a viable investment with all the developments. Anyone knows about Nusantara Prima? The prices look cheap

I was informed that it was selling quite fast about 3 weeks ago. A new development but I'm not too sure if it can be developed fully into a township with vibrant malls, banks, shops etc. I think the population density of Johor is too low to support so many new townships, so I would rather stick to those nearly or fully developed ones.

[propertychap]

the place is near silc with ascendas investment so potential is there.i also looking at bukit indah.you vested?

[hyenergix]

the place is near silc with ascendas investment so potential is there.i also looking at bukit indah.you vested?

Sort of....

[leesg123]

Call me backward but I will never invest in Malaysia Properties.
Find there is lack of stability in economy and politics and more. No offence

Has anyone invested in malaysian properties?
Can someone share what is the profit quantum like?

My klcc condo is rented out at abt 6% gross yield. Price has gone up quietly by 8- 10% over one year.

[propertychap]

i have always heard people saying its hard to get rental in kl because of oversupply.is it true?6pct yield sounds good.appreciation so much over a year?

[leesg123]

i have always heard people saying its hard to get rental in kl because of oversupply.is it true?6pct yield sounds good.appreciation so much over a year?

If ask unrealistic rent, of course difficult to rent out. My unit rented out with zero lag. Perhaps a good agent plays a part too. There are many choices there, need to open your eyes. Remember to get one that is within 5min walk to malls, lrt etc.

Appreciation in klcc is very humble compared to iskandar lah...

[propertychap]

is the bukit ceylon area a good area to invest in?near bukit bintang

[leesg123]

is the bukit ceylon area a good area to invest in?near bukit bintang

I would prefer Kia Peng area (if wanna near bt bintang) or Persiaran Hampshire area if prefer near twin tower. When i buy, i ask if i will also love to stay there... No need drive car, take lrt, malls within walking distance (safe to walk or not at nite etc).

[propertychap]

will things turn ugly for foreign investors if najib loses?

[Laguna]

i have always heard people saying its hard to get rental in kl because of oversupply.is it true?6pct yield sounds good.appreciation so much over a year?

21% income tax on rental
interest rate 4.2%

[leesg123]

21% income tax on rental
interest rate 4.2%

Fixed Deposit (1mth) 3%

[hyenergix]

This is more fearful than the cooling measures because so many SMEs are planning to shift to Iskandar.

Manpower main cost concern in 2013

Survey also shows SMEs expect to see cost of operations increasing this year

By malminderjit singh
Published January 15, 201

http://www.businesstimes.com.sg/prem...-2013-20130115

NINE out of 10 small and medium-sized enterprises (SMEs) in Singapore foresee manpower to be the main cause of cost increases in 2013, as nearly a similar proportion of firms here reported an increase in their cost of operations last year and expect this to continue in the next 12 months.

To counter these concerns, Singapore SMEs are looking towards Budget 2013 for incentives to recruit and develop local talent, increase productivity as well as internationalise with a one-stop centre in Iskandar Malaysia.

According to the SME Business and Budget 2013 Sentiments survey report, released by the Association of Small and Medium Enterprises (ASME) yesterday, 88.4 per cent of SMEs expect manpower to be their greatest worry and main cause of cost increase for year 2013.

The report, which came together with ASME's recommendations for Budget 2013, showed that 87.9 per cent of SMEs reported an increase in current cost of operations for year 2012. Most of them attributed this increase to manpower, followed by rental and foreign worker levy. Going forward, 87.7 per cent of SMEs expect and will continue to see their cost of operations increasing in 2013.

Chan Chong Beng, president of ASME, said:"68.8 per cent of SMEs are hoping that Budget 2013 would have more incentives to help SMEs recruit local staff and talents. On our part, other than our ongoing efforts at bridging SMEs to talented pools of PMEs and students, we are also exploring other opportunities of bridging businesses to the alternative workforce."

This alternative workforce includes ex-offenders, undischarged bankrupts, back-to-work mothers and problem youths. ASME is looking at creating new jobs for them in SMEs.

To cope with escalating costs, SMEs here are also looking to set up shop outside Singapore as the report showed that 45.3 per cent indicate that their key strategy to deal with costs is to expand overseas. More than half of the SMEs though are looking to government assistance to venture abroad, with 57.8 per cent of them saying they would like to see more incentives in Budget 2013 for SMEs to expand overseas.

However, most of these companies are more likely to look within the region for opportunities as 65.8 per cent of SMEs are looking to expand or relocate to South-east Asian countries with Malaysia being the most popular choice.

To meet this demand, ASME plans to set-up a One-Stop Centre in Iskandar Malaysia to assist local SMEs who are want to relocate or expand, either partially or in its entirety, to the neighbouring economic zone. Still in its initial development stage, this initiative was conceptualised to dispel some of the concerns and doubts SMEs may have about expanding into Iskandar Malaysia, including security, legal, incentives, customs, infrastructure and administrative issues.

"The level of interest and enquiries on the Iskandar Development Region are rather high, but many SMEs are still apprehensive about the region. With a One-Stop Centre, ASME will source for properties, paying special attention to the quality of the development, amenities, legalities, infrastructure and security. The centre also seeks to provide SMEs with procedures to obtain business licences, manpower, and customs clearance," said Mr Chan.

Besides this, SMEs are also looking towards the upc oming national fiscal budget to help them in their productivity drive. As many as 53.6 per cent of SMEs would like to see more initiatives to increase productivity in Budget 2013 as some have also asked for the Productivity Innovation Credit (PIC) Scheme to be extended beyond 2015. ASME proposed increasing the cash payout component to 80 per cent from the current 60 per cent, for qualifying expenditure up to $200,000, instead of the current $100,000.

According to ASME, the recommendations for the PIC scheme are critical for SMEs to accelerate automation and productivity improvement in order to deal with the critical manpower shortage and cost escalation situation. The association believes such incentives will also benefit SMEs' cashflow and improve access to funding, especially so for micro SMEs.

Mr Chan said: "2013 will be an even more challenging year for SMEs if current challenges are not mitigated. In the short run, most SMEs will face greater impact on their profit margins and bottom line. The way forward would be to help SMEs speed up productivity improvements and assist SMEs to find alternative solutions to cope with the current unfavourable challenges and measures."