Tag Archives: Foreign Properties

CEA’s Disciplinary Committee imposes financial penalty and licensing condition on property agency

The Council for Estate Agencies’ Disciplinary Committee has sentenced Dennis Wee Realty (DWR) Pte Ltd to a financial penalty of $66,000 for six counts of failing to provide a written advisory message to six sets of investors to draw their attention to the risks involved in purchasing foreign properties.

The Disciplinary Committee also imposed a condition to DWR’s licence that it is not to market or transact in any foreign property for 12 months with effect from 24 November 2017.

This is the largest fine meted out so far to a property agency for failing to abide by regulations related to estate agency work involving foreign properties. This is also the second case in which an agency has been prosecuted for failing to provide a written advisory message to investors to draw their attention to the risks involved in purchasing foreign properties.

View media release

Source : CEA – 7 Dec 2017

Buyers falling victim to rogue property agents in Malaysia

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.