Many articles and analysis have appeared of late that touched on a broad range of issues especially in relation to the imposition of measures by the Malaysian Government to curb property speculation. The overall deduction by Wall Street Journal (WSJ) is that the outlook for the Malaysian property sector next year should be positive. The followings points are given in the article.
Rise in demand by foreign buyers of commercial properties
With Malaysian commercial properties giving yield of 6 - 8 % which is twice of the yield of Singapore’s commercial properties, the attraction to foreign buyers of Malaysian real estate will in 2014 be shifted to the commercial sector.
This is welcome news to HCK Capital Group as we are going to launch our office tower commercial units in Damansara Perdana in early 2014.
Impact of imposition of Real Property Gain Tax (RPGT) and minimum RM 1.0 million property price for foreign are negligible
Although the full impact of RPGT and minimum RM1.0 million price tag for foreign buyers of Malaysian properties are still to be felt after January 2014, the WSJ article opines that this may lead to a slowdown in the rise of property prices with a shift from house purchases to commercial properties by foreign buyers. The year-on-year transactions of commercial property purchases in Malaysia have grown by 6.0% in the first half of 2013, showing a healthy growth rate.
HCK Capital Group has properties in both housing and commercial classes. With this expected shift in foreign buyers favouring commercial units, we are geared to satisfy this expected increase in demand. All our commercial units will have price tags of at least RM7.0 million, thus the RM1.0 million minimum price threshold will not be an issue.
The expected Malaysian economic growth prospect of 5.0 to 5.5% of GDP in 2014 will favour continue domestic demand for properties
As far as the Klang Valley is concerned, domestic demand for properties, especially housing by first time buyers will continue to be strong. The article also states that demand for housing in Kuala Lumpur area in particular will still outstrip supply.
HCK Capital Group is set to launch a few residential projects all within the Klang Valley. We are poised to satisfy this continued demand with units that are reasonably priced. One of these planned projects is in the Subang Jaya area which we think will generate good response from the market.
We think that we have a holistic range of property products to be launched in the coming year which will allow us to satisfy a wide range of investment options required by different segments of the market.