News
Outlook positive, time to act
13-May-2013
OPTIMISTIC: After GE, the outlook for the local property market remains upbeat, say several industry experts
With many Malaysians still digesting the results of the recently concluded 13th General Election (GE), in the weeks and months to come, the property industry will be paying close attention to the formation of the new government and any relevant or drastic policy changes.
Prior to the GE, a flurry of initiatives was announced by the Prime Minister Datuk Seri Najib Razak as part of the BN (Barisan Nasional)’s election manifesto.
They include notably the construction of one million new affordable homes, with half of these units falling under PR1MA (Perumahan Rakyat 1Malaysia) programme promising homes priced 20 per cent below market rates. Najib also announced the abolishing of stamp duty for first time buyers purchasing homes below RM400,000.
More launches
With BN retaining power at federal level, many industry players and analysts will be keenly watching future developments, focusing on how pre-election initiatives are implemented under the new BN government. See Kok Loong, Director of Metro Homes explains that the market has been quiet for several months prior to GE13 due to the uncertainty of the results and possible changes in government
policies.
“More property projects would be launched now that the election is over. We need to catch up on the slow sales and launch delays that were partly due to election uncertainty. We have only seven months to go in 2013. My personal
view is that the market should be good and the outlook positive because the mega projects would still go on.”
Shifting focus
See comments that the proposed one million affordable housing announced by Najib before GE would have an impact on market supply and would affect rentals of medium-cost houses in the market. “It could take at least two years to deliver the proposed one million affordable housing to the market. It could also shift developers’ focus more towards high-end housing instead of medium-cost housing that would be dominated by the government.
This is similar to the situation in Singapore where public housing or HDB (Housing and Development Board) flats are delivered by the Singapore
government.”
The Director of Metro Homes adds that if the one million units of affordable housing are located in prime areas or areas with good public transport, it would be fantastic as it could create new markets similar to other townships that could be further expanded and developed by private developers.
Continuity is key
Dr Daniele Gambero, CEO and co-founder of strategic marketing consultancy firm REI Group of Companies says that continuity is key. “Hopefully, the ETP (Economic Transformation Programme) and all other plans like the infrastructure projects will proceed even faster. BN has been committing to the public on a number of issues like housing and transportation. Hopefully, we will see a faster speed of growth in Malaysia. I’m looking forward to the future with a very positive anticipaton.”
Nevertheless, Gambero warns that the government cannot do everything on its own. “Solving the issue of low-cost housing, for example, usually rests on the shoulder of the government for the greater part. However, it should develop smart partnerships with private developers to satisfy the needs of the poor. For affordable housing below RM350,000 - 400,000 range, there is plenty of room for the government to work hand-in-hand with the private sector,” says Gambero who has lived in Malaysia for almost 15 years.
Gambero adds that Malaysia will need to speed up its infrastructure developments as this will also have a direct impact on housing issues. “It doesn’t make sense to build affordable housing in the middle of nowhere without any essential infrastructure like roads and transportation. Therefore, all the infrastructure projects such as the extensions of the MRT lines announced before the GE has to proceed as planned. The megalopolis of Klang Valley is growing very rapidly. With prime land getting scarcer, Malaysia
also has to learn to grow vertically instead of horizontally, housing-wise,” advises Gambero.
Politically mature
LL Koong, Managing Director of Reanda LLKG International Chartered Accountants says that he is optimistic about the future of the property market post GE13. “Consistent with my views before the GE, I feel that the outlook for the property industry is very bright. It is closely related to the overall economy, which has been very stable. For example, just take a look at the stock market today (a day after GE), it has gone up. In the run-up to the election, it had dropped.
“Before the election, there were fears of chaos and trouble due to the fiercely contested GE, but that didn’t materialise. That is the most important thing. It is a sign to foreign investors that Malaysians are politically mature,” says the chartered accountant.
Knowledge transfer
Koong adds that Najib’s promise of one million affordable homes under PR1MA is definitely a good thing and he sincerely hopes that it is “not merely an election manifesto”. “I hope that it will be implemented soon because it would help the lower income group. It could have a “happiness” impact on the people of Malaysia. The problem now is that income levels can’t keep up with escalating prices. So the rich become richer and the poor become poorer.”
As for other mega projects like the proposed TRX (Tun Razak Exchange), Koong admits that it would be good for the country because most other major capitals in the region have international financial centres. “Singapore, Hong Kong and Beijing all have established their own international financial hubs, but where is Malaysia’s? We don’t really have one. Some may say KLCC but it’s more of a city centre. The proposed TRX is estimated to attract 250 international companies and create 40,000 jobs. Apart from the jobs creation, another vital aspect of such a financial centre would be to facilitate knowledge transfer and upgrade Malaysian skills and mindsets. We urgently need to improve the standards of services in Malaysia. We can’t be too reliant on a manufacturing base that is highly dependent on cheap labour.”
Bilateral growth
Koong also says that he is looking forward to infrastructure projects such as the proposed HSR (High Speed Rail) from KL to Singapore.
“HSR is very timely and would stimulate economic growth for both countries. It is estimated to cut travelling time between KL and Singapore to about 90 minutes. Among other things, this could stimulate business opportunities and bring together both cities. There will be more bilateral businesses as people from KL could travel to the Iskandar region in Johor and Singapore without much hassle.”
Koong adds that all these initiatives in the manifesto should be implemented fast within the next seven years if Malaysia is to realise its 2020 vision to become a developed nation.
New Straits Times | 10 May 2013
13-May-2013
OPTIMISTIC: After GE, the outlook for the local property market remains upbeat, say several industry experts
With many Malaysians still digesting the results of the recently concluded 13th General Election (GE), in the weeks and months to come, the property industry will be paying close attention to the formation of the new government and any relevant or drastic policy changes.
Prior to the GE, a flurry of initiatives was announced by the Prime Minister Datuk Seri Najib Razak as part of the BN (Barisan Nasional)’s election manifesto.
They include notably the construction of one million new affordable homes, with half of these units falling under PR1MA (Perumahan Rakyat 1Malaysia) programme promising homes priced 20 per cent below market rates. Najib also announced the abolishing of stamp duty for first time buyers purchasing homes below RM400,000.
More launches
With BN retaining power at federal level, many industry players and analysts will be keenly watching future developments, focusing on how pre-election initiatives are implemented under the new BN government. See Kok Loong, Director of Metro Homes explains that the market has been quiet for several months prior to GE13 due to the uncertainty of the results and possible changes in government
policies.
“More property projects would be launched now that the election is over. We need to catch up on the slow sales and launch delays that were partly due to election uncertainty. We have only seven months to go in 2013. My personal
view is that the market should be good and the outlook positive because the mega projects would still go on.”
Shifting focus
See comments that the proposed one million affordable housing announced by Najib before GE would have an impact on market supply and would affect rentals of medium-cost houses in the market. “It could take at least two years to deliver the proposed one million affordable housing to the market. It could also shift developers’ focus more towards high-end housing instead of medium-cost housing that would be dominated by the government.
This is similar to the situation in Singapore where public housing or HDB (Housing and Development Board) flats are delivered by the Singapore
government.”
The Director of Metro Homes adds that if the one million units of affordable housing are located in prime areas or areas with good public transport, it would be fantastic as it could create new markets similar to other townships that could be further expanded and developed by private developers.
Continuity is key
Dr Daniele Gambero, CEO and co-founder of strategic marketing consultancy firm REI Group of Companies says that continuity is key. “Hopefully, the ETP (Economic Transformation Programme) and all other plans like the infrastructure projects will proceed even faster. BN has been committing to the public on a number of issues like housing and transportation. Hopefully, we will see a faster speed of growth in Malaysia. I’m looking forward to the future with a very positive anticipaton.”
Nevertheless, Gambero warns that the government cannot do everything on its own. “Solving the issue of low-cost housing, for example, usually rests on the shoulder of the government for the greater part. However, it should develop smart partnerships with private developers to satisfy the needs of the poor. For affordable housing below RM350,000 - 400,000 range, there is plenty of room for the government to work hand-in-hand with the private sector,” says Gambero who has lived in Malaysia for almost 15 years.
Gambero adds that Malaysia will need to speed up its infrastructure developments as this will also have a direct impact on housing issues. “It doesn’t make sense to build affordable housing in the middle of nowhere without any essential infrastructure like roads and transportation. Therefore, all the infrastructure projects such as the extensions of the MRT lines announced before the GE has to proceed as planned. The megalopolis of Klang Valley is growing very rapidly. With prime land getting scarcer, Malaysia
also has to learn to grow vertically instead of horizontally, housing-wise,” advises Gambero.
Politically mature
LL Koong, Managing Director of Reanda LLKG International Chartered Accountants says that he is optimistic about the future of the property market post GE13. “Consistent with my views before the GE, I feel that the outlook for the property industry is very bright. It is closely related to the overall economy, which has been very stable. For example, just take a look at the stock market today (a day after GE), it has gone up. In the run-up to the election, it had dropped.
“Before the election, there were fears of chaos and trouble due to the fiercely contested GE, but that didn’t materialise. That is the most important thing. It is a sign to foreign investors that Malaysians are politically mature,” says the chartered accountant.
Knowledge transfer
Koong adds that Najib’s promise of one million affordable homes under PR1MA is definitely a good thing and he sincerely hopes that it is “not merely an election manifesto”. “I hope that it will be implemented soon because it would help the lower income group. It could have a “happiness” impact on the people of Malaysia. The problem now is that income levels can’t keep up with escalating prices. So the rich become richer and the poor become poorer.”
As for other mega projects like the proposed TRX (Tun Razak Exchange), Koong admits that it would be good for the country because most other major capitals in the region have international financial centres. “Singapore, Hong Kong and Beijing all have established their own international financial hubs, but where is Malaysia’s? We don’t really have one. Some may say KLCC but it’s more of a city centre. The proposed TRX is estimated to attract 250 international companies and create 40,000 jobs. Apart from the jobs creation, another vital aspect of such a financial centre would be to facilitate knowledge transfer and upgrade Malaysian skills and mindsets. We urgently need to improve the standards of services in Malaysia. We can’t be too reliant on a manufacturing base that is highly dependent on cheap labour.”
Bilateral growth
Koong also says that he is looking forward to infrastructure projects such as the proposed HSR (High Speed Rail) from KL to Singapore.
“HSR is very timely and would stimulate economic growth for both countries. It is estimated to cut travelling time between KL and Singapore to about 90 minutes. Among other things, this could stimulate business opportunities and bring together both cities. There will be more bilateral businesses as people from KL could travel to the Iskandar region in Johor and Singapore without much hassle.”
Koong adds that all these initiatives in the manifesto should be implemented fast within the next seven years if Malaysia is to realise its 2020 vision to become a developed nation.
New Straits Times | 10 May 2013