Budget 2014 Aftermath

johngalt — Thu, 31 Oct 2013 10:17:32 +0800

Highlights from the recent unveiling of the budget:-

1. DIBS banned!
2. RPGT increased to 30%
3. Foreigners now can buy properties RM1 million and above:-

Some predictions:-

1. Prices will come down - HSR Research predicts up to 20%. I'm not that pessimistic as the underlying economics are still strong (demand >> supply). Maybe -5%, or even flat. This pricing may reverse with the introduction of GST where material costs technically +6% across the board. The classic "tepung naik 10c, roti naik 10c" scenario.
2. Glut of properties due to the unloading of DIBS-financed purchases into the market by speculators.
3. RPGT has never shown to really tackle speculation, so the impact will be minimal.
4. Expect developers to come up with more incentives to substitute for DIBS such as more rebates and maybe some overly creative financing schemes.
5. Gap between primary and secondary market will finally narrow... new launches usually priced at 10-20% premium over comparable secondary properties.

Source: http://goodplace.my/blog/malaysia-property...ber-to-inferno/

John Galt

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Budget 2014 Aftermath