As we venture into the new year, here are 5 property trends in Malaysia that you need to know in order to thrive and survive in 2019.
#1 - Developers will offer more discounts on primary properties
According to the Valuation and Property Services Department’s (JPPH) latest figures, the number of unsold completed residential units rose from 20,304 units to 30,115 units year-on-year as at 30 September 2018. The softer property market since a few years ago have continued well throughout 2018 so developers will be willing to offer more goodies and perhaps zero down payment scheme in order to move their unsold units. If you have cash lying around, now is a good time to get into the property market.
#2 - Owners of older properties less likely to negotiate on prices
The introduction of 5% RPGT on sale of properties over 5 years old will instill a mentality shock to property owners who have been holding for their properties for more than 5 years. In order to recoup the tax, most of the property owners will be increasing the selling price by 5%.
#3 - Watch for developments around Bandar Utama-Klang Line or LRT3
The LRT3 project is one of the few major infrastructure projects that will be continued under the new government. If you are looking to invest in property, watch this space and be aware of new developments close to the stations along the line.
#4 - More restrictions on Airbnb Accommodation
Since 2018 we are seeing trends of management committees banning Airbnb-type of accommodation due to privacy, security and safety issues, even more so in gated and guarded, landed residential houses. So if you are looking to buy an apartment and use it as Airbnb-type accommodation, check carefully such practice is allowed. However, if you happen to own a serviced apartment, this will not be an issue as it falls under a commercial title.
#5 - Watch out for good deals on Auction Market, but be aware of the risks
Considering the overhang situation currently so rampant on the property market, it is possible also to find a below market value (BMV) property on the auction court. However, buying an auction property is a stressful and risky business as once you win the bid, there is no turning back.
When buying an auction property, you will need to attend an auction in court and prepare a bank draft in advance to show interest, at least 10% of the property price. For example, if the property is being auctioned off at RM500,000, you will need to prepare a RM50,000 bank draft.
If you have successfully bid for the property, you will need to settle the balance of the payment within 120 days. You cannot cancel the purchase even if you can't obtain financing, so make sure you are financially ready before taking the plunge.
If you have any real estate questions, in the property market looking for great deals, feel free to get in touch with me.
Cheers
Wesley Tan
+6017-688 9998
admin@wespedia.com
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