Malaysians to Pay 10% More for a New House?
Just when we were more confident of property prices stabilising, we are met with another sort of dilemma, especially for first-time house buyers.
By Judith Yeoh — 05 Sep 2013, 04:00 PM — Updated over 10 years ago
Malaysians may pay up to 10% more for a new house. Why?
People looking to own a house any time soon will have to pay at least 10% more for their dream home, according to developers.
They said the increase was due to the double whammy that has hit the construction industry – higher costs of building materials resulting from the 20 sen rise in the price of RON95 petrol and diesel and absenteeism among foreign workers because of the nationwide crackdown on illegal immigrants.
thestar.com.my
Construction workers are not showing up for work also due to the 'Ops 6P' illegal immigrant crackdown, causing development delays
Construction workers are not showing up for work also, causing development delays
Image via asiaone.comReal Estate and Housing Developers Association of Malaysia president Datuk Seri Michael Yam Kong Choy said the failure of foreigners to turn up for work was causing delays, thus adding to costs which contractors were certain to push to consumers.
thestar.com.my"This also happened in past raids, Legitimate migrant workers simply did not turn up for work or delayed their return from their country until the storm blew over. "Because of the shrinking supply of workers, developers have to pay more for labour to meet contractual deadlines, failing which they will be penalised."
Ops 6P Bersepadu: Illegal workers are facing deportation in Malaysia's largest crackdown on illegal immigrants. [CLICK FOR LATEST UPDATES]
bit.ly
If Malaysians are paying more for property, it's good news for property developers and construction sectors
Wong opined property developers should be winners as properties are seen as inflationary hedges. This was the experience after the big petrol price hike in 2008.
The construction sector can also be a winner as reaffirmation of MRT 2 & 3 will be a big relief.
fz.com
“The property and construction sectors should be big winners while the likelihood of tariff adjustments for Tenaga has increased,” wrote Terrence Wong, CIMB’s the head of research.
fz.com
There will be a negative impact on public transportation, the manufacturing sector, construction as well as the food industry.
"The government should be prepared to face the fallout from the fuel hike," warned The Federation of Malaysian Consumers Associations (FOMCA) president Datuk N. Marimuthu.
themalaysianinsider.com
Restaurants are allowed to increase the prices in their menu, but not by a lot. How much? [CLICK FOR FULL STORY]
bit.ly
What about Budget 2014? Will it benefit first-time home owners or the middle-income group? Get the latest Budget updates:
Our nation's yearly budget impacts us in a big way. What would you like to see in the 2014 Budget? [CLICK TO SEE THE LATEST BUDGET UPDATES]
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Fact: KL properties are the most expensive in Malaysia
Kuala Lumpur has the country’s most expensive housing, with average house prices of RM497,535 followed by Sabah and Selangor, with average prices of RM382,414 and RM372,499, respectively.
globalpropertyguide.com
The value of residential construction work rose 24.9% on the year in Q4, to RM5.76 billion (US$1.9 billion).
globalpropertyguide.com
Selangor saw 13.4% house price increases over the same period (10.8% inflation-adjusted), followed by Sabah (9.8%), Terengganu (8%), Pulau Pinang (7.9%), Negeri Sembilan (7.2%) and Sarawak (7.1%). Kuala Lumpur’s house price index rose 2.4% y-o-y to Q3 2012 (0.1% inflation-adjusted). Pahang and Perak had the lowest y-o-y price growth, at 1.4% and 1.9%, respectively.
Image via imgur.comINFOGRAPHIC: A Malaysian guide to home buying (click for full infographic)
INFOGRAPHIC: A Malaysian guide to home buying (click for full infographic) - Credit imoney.my<br/><br/>
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