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KPKT looking into blacklisting PPR tenants who defaulted on rental payment

JOHOR BAHRU (July 6): The Housing and Local Government Ministry is looking into blacklisting People’s Housing Project (PPR) tenants, who fail to pay their rents, under the Credit Reporting Agency (CRA) including CTOS.

Minister Zuraida Kamaruddin said the move to study the issue was among matters that would be detailed under the Strata Management Act 757 (Act 757) in the next three months.

She said the Act would enable a management of a strata house to include ‘quit-rent’ and insurance under maintenance fees as well as to enable tenants who did not pay rent for 12 months to be charged interest.

“The Act 757 is already a law but when it is not being enforced, it is not effective.

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IDEAS: Developers can rent out unsold homes

PETALING JAYA (Oct 30): The Institute for Democracy and Economic Affairs (IDEAS) has suggested to developers that they can try renting out unsold homes since there is a property overhang situation, reported Free Malaysia Today (FMT).

IDEAS economist Carmelo Ferlito (pictured) suggested that “developers could hold on to their unsold properties and wait for the market to pick up again by offering rent-to-own schemes”.

But he also added that “prices are unlikely to drop to the point they fell into the so-called affordable category of RM300,000”, reported the news portal.

“For the unsold stock, probably one solution is for the developers to become landlords, to start renting out the unsold units and at least get some cash flow in,” he said.

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PUBLIC HOUSING THE SOLUTION TO RISING PROPERTY COSTS

Much has been said about the high cost of buying a property in Malaysia. The question is whether this is happening in Malaysia only or is it a global trend?

Let’s draw a comparison with a few neighbouring countries.

In Jakarta, a fresh graduate earns about 3.5 million rupiah (RM1,000) and a 1,000 sq ft middle class apartment will cost around 2.5 billion rupiah (RM700,000). A fresh graduate in Ho Chi Minh City earns about 5 million dong (RM900) and a 1,000 sq ft apartment price is around RM600,000.

In Kuala Lumpur, fresh graduates earn about RM2,500 while a 1,000 sq ft apartment costs around RM500,000.

If young Malaysians are complaining that the property price is high, they are indeed not wrong if they were to compare it during the baby boomers era when the salary of fresh graduates was RM1,000 and said property price was RM35,000. But looking at the peers from the two comparisons, we are in a better state!

So what went wrong and what do we expect to happen?

Do we expect land price, construction or labour costs to go down?

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Overhang value exceeded 600% over five years

OF late, there have been calls from different quarters appealing to the government to reduce the pricing threshold of properties that foreigners are allowed to buy.

The call is a result of a growing number of completed but unsold units in the country.

Over a five-year period between 2014 and the end of 2018, the number of unsold completed residentials grew from 11,816 units to more than 45,000 units by the end of 2018, including serviced apartments and small offices home offices (SoHos).

This translates to a rise of 281% over the period.

In ringgit value, the rise is even greater. The value of residential overhang snowballed by a massive 635%, according to the National Property Information Centre (Napic) records.

The residential overhang was valued at RM4bil at the end of 2014. It grew to RM29.7bil by the end of 2018, Napic records showed.

OF late, there have been calls from different quarters appealing to the government to reduce the pricing threshold of properties that foreigners are allowed to buy.

The call is a result of a growing number of completed but unsold units in the country.

Over a five-year period between 2014 and the end of 2018, the number of unsold completed residentials grew from 11,816 units to more than 45,000 units by the end of 2018, including serviced apartments and small offices home offices (SoHos).

This translates to a rise of 281% over the period.

In ringgit value, the rise is even greater. The value of residential overhang snowballed by a massive 635%, according to the National Property Information Centre (Napic) records.

The residential overhang was valued at RM4bil at the end of 2014. It grew to RM29.7bil by the end of 2018, Napic records showed.

This double increase coincided with the escalation of property prices over a 10-year period starting from 2009/2010. Property prices remain high today.

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Micro homes and communal living bring ‘kampung spirit’ back to city living

KUALA LUMPUR, Feb 7 — The trend for communal living and micro housing that is appearing in cities worldwide is not just for millennials or singles anymore.

Two full-scale prototypes of the 21st-century housing concept which opened to the public here today at the World Urban Forum (WUF9) Village drew the attention of families and retirees too.

“When we talk about communal living, we would have single occupancy in mind because families would not have much time to interact with others, and we felt it would be more accepted by the younger generation.

“However, we did receive enquiries from older couples as well as they are open to the concept of creating a community,” Think City Sdn Bhd programme manager Joanne Mun told reporters at the installation on Medan Pasar here.

Opened to the public for the first time at 10am today, Mun said about 200 visitors had dropped by to see the micro housing installations.

“It is encouraging to see the interest shown by the public as we had received many positive feedback. We would like to see more people come over to give their input,” she said.

She added the shared-living concept proposed by the Kuala Lumpur City Council (DBKL) and Think City aims to bring back the “kampung spirit” to the city, where members of the community are always open to helping each other out.

“City life is very fast-paced and people are usually too busy, which reflects less interaction between neighbours.

“Apart from creating a community, this concept is also to look into adaptive use of vacant buildings. In the last three years alone, we have seen many big corporations and small businesses moving out of the city, leaving many commercial spaces vacant,” she said.

Mun said the two micro houses on display, shortlisted from six design applications, were selected based on 10 different criteria.

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Harga rumah di Malaysia ‘sangat tidak mampu milik’

KUALA LUMPUR: Piawaian antarabangsa mengkategorikan rumah kediaman di Malaysia sebagai ‘sangat tidak mampu milik’, demikian menurut kajian yang dibangunkan Demographia International dan dicadangkan oleh Bank Dunia, Pertubuhan Bangsa-Bangsa Bersatu dan Universiti Harvard.

Pengarah Jabatan Pemantauan dan Pengawasan Kewangan Bank Negara Malaysia (BNM), Qaiser Iskandar Anwarudin, berkata kebanyakan rakyat Malaysia tidak mampu untuk membeli rumah yang baru dibangunkan berikutan harganya di luar keupayaan kewangan mereka.

Beliau berkata, berkata berdasarkan sumber daripada Jabatan Statistik Malaysia, Pusat Maklumat Harta Tanah Negara (NAPIC) dan BNM, harga bagi rumah mampu milik di seluruh Malaysia perlu ditawarkan pada harga maksimum RM282,000 untuk isi rumah berpendapatan median atau penengah.

“Bagaimanapun, berdasarkan sumber sama, rumah mampu milik yang ditawarkan dalam pasaran ialah RM298,000 (harga median sebenar).

“Manakala, purata harga bagi pelancaran hartanah baharu yang ditawarkan dalam pasaran adalah pada RM417,262 seunit,” katanya pada sesi taklimat BNM bersama media mengenai hutang isi rumah dan pembiayaan perumahan, di sini, hari ini.

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Under-pressure rental market may see price war

Affordability and oversupply issues in the property market are predisposing many first-time homebuyers in the Klang Valley to rent, a shift from the current tendency to buy.

“Many in [the younger] group are being priced out of the market to buy a property due to affordability issues. So renting becomes the next best option and it is probably cheaper than the monthly instalment on a property. From a financial standpoint, it does make sense for some of these young working adults or young families to start out renting a property, which is a trend we see now, says Reapfield Properties Sdn Bhd group chief operating officer Jonathan Lee.

Rahim & Co International Sdn Bhd CEO of real estate agency Siva Shanker anticipates a rental price war. “You’re going to find thousands of these properties available for rent as more stock will come into the market now. [Many] will start off by asking for high rents that were promised by their investor clubs, but that won’t happen and they’ll have to drop the price further. The huge rental price war, which has been happening in the last year or so, will just escalate and become even more vicious in the next one to two years when more units are completed and get thrown into the market.”

Siva notes that many of these units were bought by speculators who were, to some extent, sold the idea by investor clubs or property gurus, based on speculation that once the properties were completed, the rent would far surpass mortgage repayments or the properties could fetch a gain of 20% to 40%.