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Prices and rentals for residential properties in the Klang Valley should stabilise this year due to credit-tightening measures by banks and investors' cautious sentiment after prices of houses rose by 6. Single-storey terraced houses within areas in Johor such as Taman Puteri Wangsa, Taman Ungku Tun A0minah, Taman Bukit Indah and Taman Perling see price increases of 2. 1%, with prices ranging from RM125,000 to RM220,000. Houses in areas within Nusajaya such as Taman Nusa Idaman and Horizon Hills record price increases of 6. 1%, with prices ranging from RM392,000 to RM448,000. In Johor's high-rise residential segment, developments such as Straits View Condominium in Bandar Baru Permas Jaya saw price increases of 5. Khong says shop rentals will continue to escalate slightly this year, reflecting the high prices that investors paid for such shops. So, there will be affordability issues if prices keep going up. The amount of residential property loans approved during the period was RM12. Those in Taman Alam Damai (Damai Niaga) recorded the highest average price change, from a wide range of RM895,000 to RM910,000 in 2010 to a selection of RM1. 2mil last year. Notable price increases for shops are also seen in Happy Garden (8%) and Salak South Garden (11%). 4% in the central town prime areas in Subang Jaya and Kota Damansara respectively as positive expectation from the proposed MRT and LRT projects spurred the commercial segments. Meanwhile, rentals for commercial shops showed optimistic performance last year. Ground floor shops rental that showed double-digit increases include Kuchai Entrepreneurs Park and Taman Connaught at 16. Prices of double-storey terraced units in Precinct 11 increased by 18%, with the highest price registering at RM430,000 (against RM370,000 in 2010) while prices of low-cost flats in Precinct 9 rose by 10%. The report also points out that the 55km Sungai Buloh-Kajang MRT alignment, which is expected to be undertaken in 2017, could result in an appreciation in property values within the areas served by the project such as Taman Tun Dr Ismail and Phoenix Plaza. "Those who have parcels of developed or undeveloped land along the alignment are poised to enjoy the spillover effects of the rise in property values. Across the board in the country, the rental rate of both landed and stratified residential properties is stable. In Bandar Utama, Selangor, rental of two and two-and-a-half storey terrace houses grew by 30% and 36. 8% respectively compared with 2010. In Sabah, prices of residential properties were generally unchanged, with a few exceptions. For example, double-storey terrace houses in Seri Millenium Kingfisher, Kota Kinabalu are transacted at higher prices of RM400,000 to RM450,000 because of area's proximity to the city centre. In Sandakan, similar property in Taman Indah Jaya and Taman Fajar witnessed 20 percent and 14. " Johor's property market performed well last year, with 52,946 transactions worth RM17. 1bil. Compared with 2010, Johor's property market volume and value increased by 9. 3%, with transactions done at around RM220,000. 4% higher compared with twelve months earlier. Another property research analyst says the central bank's data shows that credit-tightening measures are working to cool down the property sector. "This year to date, demand is still very strong, and has in fact increased substantially, especially for residential properties. However, the amount of loans approved was not substantially higher compared with the same period last year," he says. Effective this year, banks have started using net income rather than gross income to calculate the debt service ratio for loans. "The Government has said it was serious about preventing a property asset bubble. "So, we are coming off from a very high base set in 2011. "We do not think so since there are no major catalysts and banks are cooling down the residential property sector," he says. "Many owners will try to flip' their units. 7% higher compared with 1 year earlier. 3% year-on-year in the first two months of 2012 to RM13. Meanwhile, the amount of loans applied for purchases of non-residential property increased by 15. However, prices in Tanjung Puteri Apartment declined by 12. Property analysts are sure that the property sector in the Iskandar Malaysia economic growth corridor will perform well. "The boom area will be Iskandar Malaysia. This is what happened with areas like Cyberjaya and Puchong, Selangor in the past," they say. Meanwhile, Penang's property market had an excellent year with 39,415 transactions worth RM13. For Selangor, good areas in Petaling Jaya recorded rental increases of 13. Below 3% is a cause for concern as houses should return between 3% and 6% (all risks net return) dependant on house type, and whether it is landed or strata. However, he points out that shophouse rents will depend largely on the actual commercial performance of the individual centre. "Remember, there are limited supply of shop lots. Rents may not fairly match the capital values in a lot of cases. 6% respectively. One property analyst also says it is getting tougher for residential property buyers to obtain decent rental yields. But generally, how many people in the Klang Valley can afford to pay rental of RM2,000 a month with the exception of foreigners. Typically, young professionals and couples are paying rentals in the range of RM1,000 to RM1,500 a month. In Kuala Lumpur as well as the Petaling and Batu districts, prices of shops increased by 2. 1mil to RM1. However, Fernandez says rental yields for ubiquitous two-storey terrace houses in selected areas in the Klang Valley are getting lower. 7% and 39. 5% respectively compared with 2010. It is noted that Penang's residential property prices are also on an upward trend, due to the scarcity of land on the island. For example, double-storey terrace and semi-detached houses at Island Park see price increases of 13. 8%, as the area is buttressed by neighbourhood developments such as Tesco hypermarket, Queensbay Mall, hospitals and schools. As for Sabah, the property market improved slightly last year, with 10,321 transactions worth RM4. 4% and 12. |
Sunday 8 April 2012
Prices, rentals stabilising
