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Buyers falling victim to rogue property agents in Malaysia

Posted on 17 Mar 2016 | Comments Off

Many online property listings in Malaysia feature absurd asking prices.

To earn more money, some unscrupulous property agents in Malaysia are quoting a higher asking price than the seller’s actual selling price, according to an opinion piece by Melati Mohd Ariff, reported Malay Mail Online.

“This situation has persisted for quite some time, with buyers at times falling victim to ruthless real estate agents,” said Ariff.

“It was when I stumbled upon an advertisement for a landed property bearing two different prices that I realised something (was) amiss. The property owner quoted RM80,000 (S$26,781) lower than the agent!”

In addition, Ariff reckons that only those earning a five-figure salary or more can afford to buy a house in Kuala Lumpur, especially landed property.

A check of online listings of freehold landed homes shows that properties in Malaysia’s capital are priced from RM800,000 (S$267,812). Most of these homes were built 20 to 30 years ago.

Ariff said: “A friend of mine told me that a two-storey house in (the suburb of) Setapak purchased over 20 years ago (as a second owner) for around RM300,000 (S$100,430) is now worth some RM1.2 million (S$401,757)!”

Residential property prices in the area have soared after malls were constructed and roads were upgraded.

“Another friend purchased a three-room condominium in Kuala Lumpur for RM190,000 (S$63,586) in 2003 and its estimated market value today is RM700,000 (S$234,373),” noted Ariff.

Ariff added that there are many online property listings featuring absurd asking prices.

For instance, a one-storey bungalow in the city-fringe has an asking price of around RM400,000 to RM500,000 (S$133,921 to S$167,401). But if a buyer were to view it, he or she would be shocked to learn that it’s just a dilapidated wooden house standing on a freehold land site.

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HK home sales plunge 70% from last year

Posted on 9 Mar 2016 | Comments Off

The number of residential transactions in Hong Kong plunged by 70 percent on an annual basis last month, as buyers shunned the housing market amidst falling prices and economic uncertainty, reported Bloomberg.

According to government data, only 1,807 units were sold in February compared to 2,045 in the previous month. This is a far cry from the 6,027 transactions recorded during the same period last year.

“The newspapers keep on saying the market is going down and buyers think they can get a cheaper house half-a-year later or one year later, and so are waiting,” said Centaline Property Agency salesperson Thomas Fok, who hasn’t sold a single unit at the city’s upscale Mid-levels West district this year.

In addition, home prices fell 10 percent from their September peak due to worries over China’s slowing economy and the plan by Hong Kong authorities to raise the supply of residential units in the next five years. Local officials also reiterated that the existing property cooling measures will remain in place.

As such, BOCOM International Holdings’ analyst Alfred Lau believes that home prices in the city could fall by 30 percent in 2016.

Given this challenging environment, Sun Hung Kai Properties slashed its sales target in Hong Kong by 18 percent to HK$27 billion for the whole of 2016. Sales by New World Development also plunged 79 percent during the first half of its financial year to HK$2.8 billion, which is just 28 percent of its full-year target.

Despite the challenging situation, some developers still see opportunities in Hong Kong. For instance, Goldin Financial Holdings’ Chairman Pan Sutong feels that prices of luxury homes will remain resilient, especially for those located in areas with limited supply.

Earlier this month, his company submitted the winning bid of HK$6.38 billion for a land parcel in the posh neighbourhood of Ho Man Tin, where a subway station is being built.