Due to the abolition of the Developers Interest Bearing Scheme (DIBS), the secondary residential property market will shine brighter than the primary market segment in 2014, according to the Malaysian Institute of Estate Agents (MIEA).
Without DIBS, in which the developer pays the interest of a buyer’s loan during the construction period, the appeal of newly launched projects has lessened. Notably, the scheme was disallowed by the government in Budget 2014 as it promotes speculation.
On the other hand, second-hand properties could see better demand this year thanks to their cheaper prices.
“More people are expected to snap up secondary properties as they are generally 30 to 40 percent cheaper than newly launched projects,” said MIEA President Siva Shanker.
In 2012, newly launched projects only accounted for 20 percent of all the residential property transactions, while the rest were second-hand homes. And this year, that proportion is expected to dip to 15 percent.
Moving forward, Malaysia’s residential market in 1H 2014 is expected to be sluggish due to government’s latest property cooling measures. However, it is expected to pick up steam in the second half, particularly for the secondary market.
But the most pressing issue for the property sector next year would be the introduction of the goods and services tax (GST) in April 2015, which could create another round of price hikes.
“If the government starts educating the public on GST now, the market should react favourably to the new tax system,” he added.
Without DIBS, in which the developer pays the interest of a buyer’s loan during the construction period, the appeal of newly launched projects has lessened. Notably, the scheme was disallowed by the government in Budget 2014 as it promotes speculation.
On the other hand, second-hand properties could see better demand this year thanks to their cheaper prices.
“More people are expected to snap up secondary properties as they are generally 30 to 40 percent cheaper than newly launched projects,” said MIEA President Siva Shanker.
In 2012, newly launched projects only accounted for 20 percent of all the residential property transactions, while the rest were second-hand homes. And this year, that proportion is expected to dip to 15 percent.
Moving forward, Malaysia’s residential market in 1H 2014 is expected to be sluggish due to government’s latest property cooling measures. However, it is expected to pick up steam in the second half, particularly for the secondary market.
But the most pressing issue for the property sector next year would be the introduction of the goods and services tax (GST) in April 2015, which could create another round of price hikes.
“If the government starts educating the public on GST now, the market should react favourably to the new tax system,” he added.
via:http://www.propertyguru.com.my/property-news/2014/2/11906/second-hand-properties-to-see-higher-demand-miea
No comments:
Post a Comment