The Johor Baru property marketplace remained soft in 3Q2019. Developers continued to focus on clearing present inventory, especially high-rises. “We know that a few programmers have converted or are considering converting the acceptance for high-rise improvements to landed homes.
The complete unsold high-rise residential properties afterward stood 34,000 units
“newest launches have been landed properties with smaller land areas because of high land and building prices. Two-storey terraced homes targeted in the mid-end marketplace will stay hot and sellable,” he notes.
“In light of the stagnant marketplace with higher overhang and oversupply of high-rises, many parties are lobbying for the relaxing or tweaking of present policies.
“Some cases include the threshold for overseas buyers in RM1 million, the imposition of 5 percent Real Property Gains Tax (RPGT) even for Malaysians following five decades and better recommendations on the bumiputera unit launch mechanics,” says Tan.
“Budget 2020 made just two small alterations — the shift from the foundation year to get RPGT from year 2000 to year 2013 and the minimal cost for overseas purchases [that was reduced from RM1 million to RM600,000] of finished, high-rise residential properties. For the latter, the step is just for a single year.
“We assert the rationale behind imposing RPGT on longterm property buyers is basically erroneous. Additionally, the tax revenue collected as a consequence of land earnings is insignificant at roughly RM90 million [$29.4 million] from the last year.
Nonetheless, the shift from the foundation year 2013 efficiently makes RPGT redundant today as there’s barely been some price appreciation from year 2013 until today,” Tan claims.
“Lowering the cost threshold for overseas buyers will help clear the unsold stock, particularly high-rises. But, we don’t anticipate a considerable gain in the take-up speed as the market sentiment is feeble. Yet this is a little, calibrated step to help reduce the unsold high level components.
Price and leasing trends in 3Q 2019
According to the track, the majority of the chosen schemes maintained exactly the very same costs throughout the quarter under review. There was a small cost reduction in East Ledang, together with two-storey terraced homes trapping from RM920 into RM900 psf while two-storey semi-detached homes dropped from RM1,700 into RM1,600 psf.
“One of the semidees, just those in East Ledang watched a marginal drop of 5 percent while the rest stayed unchanged,” notes Tan.
Concerning rental motions, two-storey terraced homes in chosen schemes saw a reduction of 10% to 20% throughout the quarter. “This might be attributed to the growing supply of high tech apartments for lease. Some tenants may opt to relocate to such improvements on account of the facilities supplied,” he describes.
“One of the high-rises, just Ujana’s rental rate dropped — roughly 10 percent [from RM2,000 to RM1,800 a month]. This might result from the large number of finished high-rises at the neighborhood of Iskandar Puteri,” says Tan.
New starts in 3Q 2019
You will find four new launches throughout the quarter — two landed and two high-tech projects. “Both landed home jobs are of twostorey terraced homes.
“We’re given to understand that the non-bumi a lot for both schemes are completely booked or marketed.”
The Sky Trees (Duta Hijauan) serviced flat in Taman Bukit Indah premiered in September. “The built-up field of these components ranges from 581 into 1,001 sq ft. The project was started with a beginning cost of RM546 psf and also the programmer claims to have achieved a sales rate of 50 percent from their 484 units ” Another serviced apartment job, situated above Paradigm Theater and called Paradigm Residences, was also established in September. The components have a cost of RM600 psf with built-up regions of 530 into 1,123 sq ft. The programmer claims to have achieved a sales rate of 60% from the 263 units established, says Tan.