His year 2015 might go down as a historic year in the sense that the Government’s actions had affected the property market directly. The volume of transactions decreased from 289,537 in the first 9 months of 2014 to 275,725 in the first 9 months of 2015, registering a drop of 4.77%. In tandem with this drop, the value of transactions also decreased from 124.4 billion to 114.1 billion showing a decrease of 8.26% during the corresponding period. The tightening measures put in place by the Government through increased Real Property Gains Tax and stringent lending measures appeared to have had some effect on the property market. For the first three quarters of 2015, the residential sector showed a drop of 11.83% in terms of value against a drop of 4.47% in volume. This was matched by the commercial sector registering drops of 12.88% and 6.94% in terms of value and volume of transactions.
The corrections in the residential and commercial sectors come in after several years of increasing prices and in some instances is seen as welcome, so that the property market does not become overheated and cause concern for an asset bubble to be formed. The cooling measures have brought about some changes; speculation is down and more thought is being given to affordable housing and addressing the needs of people who are yet to buy a house. The Budget this year addresses some of these concerns through greater provision of affordable housing and encouraging the Youth Programme for those who are young and still without a house. A number of incentives have been provided for first time buyers of housing.
The economy has generally been felt to have slowdown. Expected Gross Domestic Product is seen to dip below 5%. The Ringgit has worsened against the currencies like USD, SGD and Indian Rupees. The economy and the currency problems are topmost in everyone’s mind. More foreign properties are being sold in Malaysia on fear that the Ringgit will slacken further. In April 2015, the overnment implemented the Goods and Services Tax or GST. The Government has decided that residential property will be exempted from GST presumably not to cause an extra financial burden to the buyers who are already reeling from high property prices. The real concern was will the prices of houses increase when GST is implemented. In addition, the Government has also declared that fuel subsidy will be reduced or removed. This also has given rise to fears that house prices will be spiralling upwards. Added to that, the eternal fear of rising material costs, labour costs and land costs was causing concern not only to consumers but developers. In reality, it will appear that the GST had not had any impact in increasing prices for houses or commercial properties. The full impactwill only be known after a full year of GST implementation.
What directions will the property market take in 2016 given the drop in prices and volume of transactions in 2015? How will developers react to the present scenario? What will the impact of the falling Ringgit be? Are our fundamentals strong as it is being claimed by some quarters? What will be the market trend in 2016? Will we see an increase in foreign buyers of Malaysian real estate in 2016 with the falling Ringgit? What needs to be done to revive the ailing property market?Our speakers will address some of the ills affecting the market. This will be bolstered by data and information from the real experts in the real estate industry. Hear the experts discuss.
The market is waiting to hear what the impact of the GST and fuel subsidy removal will have on the housing sector. Pundits and Property Gurus have been expounding their versions; listen to professionals who are trained in the area of property market analysis share their expert knowledge. Facts and figures do not lie.Also dealing in detail on the commercial office and retail markets are experts who use their very exhaustive data banks and research departments to analyse and provide a framework for easy understanding
and careful decision making.These are some of the areas that will be discussed in depth at the 9th Malaysian Property Summit this January 2016. For these reasons it will remain one of the most anticipated events each year. Analysts, developers, bankers, Government organizations have always been keen supporters of this event.This is the Summit of the property market, for the property world, by the property people put together by the very industry and people, to whom property people turn to when they need advice, consultation, research and analysis, testimony, professional opinion, expert witness and evidence, support and prognostication on the property market.
The Association of Valuers, Property Managers, Estate Agents & Property Consultants in the Private Sector Malaysia (PEPS), the body that represents the reputable and established private valuation and consultation practices, has come together to provide the MalaysianProperty World with the width and depth of its accumulated research and analysis, prognosticate for this coming year, 2016, the expectations of movements, fluctuations and changes that can be expected to happen in the property market, and the reasons for it.
The objective of this Summit, as in previous years, is to present to the Malaysian Property industry and players an authoritative view of the state of the real estate industry. As valuers, land economists, property consultants, real estate investment analysts, and, by and large, the only people trained and paid to judge the market and the outcomes, and the only people who have an in-depth knowledge of what is happening in the market, the speakers would be able to tell the world at large exactly what has been happening, and how the market is to behave and perform. The databases of the major property consultants will be thoroughly examined and in-depth research built into the prognostications that will be presented by the industry’s key idea-men.
We have identified experts who specialises in a particular property sector to provide the participants the best answers to questions asked, or lurking in the minds of bankers, developers, analysts, investors, decision makers, institutional agents, fund managers
and others.For each sector, each speaker will do the following:
• Outline the historical background with data and analysis;
• Geographical spread and classifications;
• Relative importance to the industry;
• Relationship to the economy and market;
• Highlight the last three years’ activities;
• Give an opinion on what has happened including an analysis of the drivers affecting it;
• Outline the key drivers that will drive the market in the future;
• State his opinion on what direction the market will take based on his analysis.
The 9th Malaysian Property Summit 2016 is a Property Conference not to be missed and we look forward to your attendance.