Oversupply of properties due to speculation
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Thread: Oversupply of properties due to speculation

  1. #1
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    Oversupply of properties due to speculation


  2. #2
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    Wait for Wisma Hap Seng in front of Concorde Hotel KL and new condos and terrance hse in Glenmarie (next month or two ) ppl rushing to buy just like buying movie tickets.Of course outer KL cannot sell but reputable developers like Setia,Sime,I&P,SDB,Sunway you think not?

  3. #3
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    Actually the bulk of the new launches are priced with the support of the banks who will provide financing at up to 90 percent of the selling prices, prices which are way off the secondary market values. A similar property would only be able to get a valuation of say 60 -70 percent of those new launches. Imagine a new development selling for 600k and one needs only to fork out 3 percent for the downpayment. The developer 'reimburses' you 7 percent and you pay nothing until completion. The bank will finance 90 percent. Whereas in a established area a similar property will fetch 550k. However when you go to the bank the valuers will value it at 400k and they offer only 80% loan. It means the buyer has to come up with 150k plus 80k for the balance of the amount. How many first time buyers can come up with such money? I would say it is a very much bank driven thingy. A good example is the 'condo;' in usj one where the cheapest units go for more than 600k and one only has to pay 3 percent to book and the sales agents actually tell buyers those are not for staying, only for flipping. When it is ready it can sell for 750/800k!! ( in their dreams maybe)

  4. #4
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    a friend holds 8 highend fuly completed CF'd apartments (min. 700K each) in m.kiara...but they are all empty and he is panicking! His block and the next are fulla empties (no sale and very very few tenants). Kinda looking like all 'owners' are wanting to flip since feb this year. And that is only his condo...what about those newly built/work in progress condo projects around the same 1-1.5km radius/perimeter? Panic big time! Aisey! Not me lah...He!

    yet I still read the 'gurus' and developers and hse agent/valuer association taikos and ministers all saying "semo Ok, its still cheaper than Singapore,, Seoul, HKong, Shanghai, tokyo, taipeh...blahblah"...

    I must be both blind, stupid and blur sotong all rolled in 1 big fatty mass...anyway, 47days ago i conducted a 1-2-1 no-nid2pay-10mins-seminar 'freelah' for my friend. Advised him to offer his agent extra RM10,000 for each sale, thi$ i$ over and above the 2%...and snowball the bonus with extra ingredient Rm5000, for each additional unit...as of 12.40pm now, still no taker yet it is looking ominously that my seminar sales tactic also not working leh *think*tink*ting*. ~arms folded over forehead like Pooh bear ~ and muse "where go wrong ah?"


    Yang Amat Blur$otong with property TIUxlatotupai
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  5. #5
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    The Olives in Subang Jaya is also empty. Why? Most buyers buy to speculate?

    Such highrise developments have a delivery period of 36 months. Three years ago (when they bought it) they got very favourable terms from the banks and the developer.
    " In the land of the blind the one-eyed-jack is king."

  6. #6
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    Quote Originally Posted by Henry T View Post
    The Olives in Subang Jaya is also empty. Why? Most buyers buy to speculate?
    .

    I know of at least 4buyers with at 2 units each...all waiting for 'favorable' tenants.They already paid..so no instalments to worry lah

    So to each his/her own...
    in luv with bikes...in lust with AphroditeS AWAS! Suspek is an Avid procurer to myths, lies, legends, folklores, i-ching, rumors, misinformation, cakap-ayam, spɹoʍ uʍop ǝpısdn puɐ˙˙DLL .
    p/s Take all the above with a XL salted duck egg, wash down with 2fingers of sodium hypochoride, and suck on to a pebble size tmn negara Rock salt

  7. #7
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    If its all paid for then its no problem since its only opportunity cost. However for those who have loans to service and who have plans to flip when then purchased then it is a problem for them. They can still hold on till they cannot service their loans , during which time it would be too late. The problem with these buyers is that they still think they can make a bit of money if they can find the buyers/renters. They are not prepared to take losses as yet so they hope the prices will still go up and they can make more. If they do not wake up, like your friend, sell it off when they still can to cover costs, it might be too late for them later. Imagine if everyone else has reached that situation and they are all trying to let go at the same time!

  8. #8
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    The only “problem” is – so far, no cheap sales, stock-clearance sales yet..

    Anyone heard any place got good bargin sales especially in SJ and PJ (not the bank lelong sale), please share !!

  9. #9
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    Quote Originally Posted by Rhiga View Post
    The only “problem” is – so far, no cheap sales, stock-clearance sales yet..

    Anyone heard any place got good bargin sales especially in SJ and PJ (not the bank lelong sale), please share !!

    Aisey...dont forget me also ah!
    Might just get 1 just to convert to a 6month My-2nd retiree 1studio home, with twice weekly amateur mahjong kakis to while away time improving memory power, drink Pu-er tea and swap horror stories... Sabai sabai!
    in luv with bikes...in lust with AphroditeS AWAS! Suspek is an Avid procurer to myths, lies, legends, folklores, i-ching, rumors, misinformation, cakap-ayam, spɹoʍ uʍop ǝpısdn puɐ˙˙DLL .
    p/s Take all the above with a XL salted duck egg, wash down with 2fingers of sodium hypochoride, and suck on to a pebble size tmn negara Rock salt

  10. #10
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    Yes, there are a lot of speculator condos and apartments. and even high end multi-million condos. I know someone with a multimillion condo unit behind Citibank KL. Monthly installment is RM16k but currently only renting out at RM11k/month. Even with tenant, still need to top up RM5k a month not including the maintenance fees. Owner, of course, is Waiting to dispose off at favourable price. Not easy....

  11. #11
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    I ask only one question - if most household are at RM10K per month take-home income, how can they afford an apartment or house > RM500,000 w/out tying the stummick? Living up to the Joneses, greed, high tastes?

  12. #12
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    These condominiums are with seafront / seaview and 3 car parks along the tourist belt from Tanjung Bungah to Batu Ferringhi and they cost RM1.7 million keatas at time of launch 2-3 years ago:

    i) Springtide
    ii) Infiniti
    iii) The Cove
    iv) Harmony Residence
    v) D'Villa Ferringhi
    vi) Miami Beach
    vii) The Mayfair
    viii) Moonlight Bay
    ix) Bayu Ferringhi
    x) Ivory
    xi) etc

    What about the ones along Gurney Drive? Gurney Paragon dan banyak lagi????

    All about 50-60% occupied... most empty for a few years... monthly repayment about RM15,000 keatas, no tenants... asking price RM2,500,000 per unit keatas now....

    Penang people rich, of course, but most of them walking with a blank in the faces...

    If you look at Batam, Jakarta, Bali, Flores, Phuket and those SP Setia homes in Ho Chi Minh City... your condos will still be empty for a few more years...

  13. #13
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    Malaysia is probably the country where people rushed to buy condo without the plans of finding tenants as part of marketing plans. It is a cow and herd syndrome which is unique and they would panicked when the banks start to ask for instalments.

    One of the buyer of a swanky unit at Mont Kiara asked me to find tenant for him as had impressed him by renting his unit within a week which my wifey sell him Desa Parkcity in subsale. I went, see and unconvinced that I can get him the tenants where there are multi blocks of vacancy in the polluted and jammed Mont Kiara vicinity. Sumore, the high profile crimes from the kidnapped boy, robbery and rape of a RE agent scare the daylights of potential tenants there. The Sunway block itself is half empty or half full despite CF was given one year ago. Despite emails to companies, corporations and embassies, not a single prospect wanna to see the free to view condo which is priced below market rate where I was entrusted for 170 days.

    However, elsewhere it is a different cerita. Am looking for Northshore Condo, Desa Parkcity owners high and low where I have other quality expatriates including an European ambassador who wanna to rent urgently. No units on my hand as buyers units all fully rented out already.

    I think it makes ringgit and sense to buy new developers launches via a real estate agent with networking sources in tenants connections. After all, you are getting the same price or perhaps lower with goodies thrown in. But most of all, before the CF is given, the agent is already working hard to secure tenants or have a royal flush on hand to earn the commisions before hanging For Sales/For Rent banners at the door, trees and traffic lights poles.

    IMHO, it is not just location, location, location when buying condo but other X factors from the strategic faciilities to quality developers, with the right pricings to the right agency to find tenants for those buying it for investment.
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  14. #14
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    Sunway Velocity all sold out (i heard) in Peel road and they even bought a plot of land from a opposition MP for RM1000K psf of the land area 10Ksf.He pocket RM10mil!

  15. #15
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    Quote Originally Posted by tupai View Post

    Aisey...dont forget me also ah!
    Might just get 1 just to convert to a 6month My-2nd retiree 1studio home, with twice weekly amateur mahjong kakis to while away time improving memory power, drink Pu-er tea and swap horror stories... Sabai sabai!
    I have been approached to look for an investor / developer for a 108 hectare plot with beachfront at Manado @ Sulawesi, just 25 minutes to the world's top 10 diving spots - can either be a 5-star resort or apartment residence, any contacts you got that we can flip this together Dato' Squirrel?

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