KUALA LUMPUR: Prices of residential properties are expected to continue to consolidate this year and 2020, according to Rahim & Co. International Sdn Bhd research director Sulaiman Saheh
KUALA LUMPUR (Feb 19): Property consultant Rahim & Co expects 2019 to be a year of further stagnation for the property market in Malaysia, before any meaningful recovery can be seen in one to two years' time from now.
Consultancy firm Rahim & Co International Sdn Bhd is no stranger to the property scene in Malaysia. Helming the namesake company is Tan Sri Abdul Rahim Abdul Rahman, a genteel leader with vast knowledge and experience in the business.
From the property oversupply to innovative forms of financing, we look back at some of the prominent property issues of 2018 with Tan Sri Abdul Rahim Abdul Rahman, Executive Chairman of real estate consultancy Rahim & Co.
Pengerusi Eksekutif Rahim & Co International Sdn Bhd, Tan Sri Abdul Rahim Abdul Rahman, berkata inisiatif kerajaan bagi membolehkan pemilikan rumah dalam kalangan rakyat sangat dialukan namun tidak dapat dipastikan jika rakyat bersedia menerima inovasi skim terbabit.
KUALA LUMPUR (Nov 13): The residential property supply overhang will likely moderate a little next year due to slower growth in supply, says Rahim & Co.
KUALA LUMPUR (Feb 12): Banks should conduct tighter checks and commission their own independent feasibility studies on developers' proposed projects before deciding to grant financing, according to property consulting firm Rahim & Co International Sdn Bhd.
KUALA LUMPUR: Rahim & Co said it expects the Malaysian property market to see recovery within the next year or so, forecasting property transactions to grow approximately 10% over the next 24 months.
The property consultancy firm’s director, Sulaiman Akhmady Mohd Saheh, said although the market had been declining since it peaked in 2012, the rate of decline in transactions is seen to be slowing down.
“The market peaked in 2011 and 2012, and had fallen in 2013, and the drop continued into 2016. By the third quarter of 2016, the total volume [had] dropped by 11.9%, while value [had] dropped by 16.4%,” he said.
Sulaiman said average transactions had come down significantly, from an average of 96,000 transactions per quarter since 2010, to an average of below 80,000 per quarter for the first three quarters of 2016.
Meanwhile, the quarterly value of transactions dropped to RM31.8 billion from RM35 billion per quarter.
While 2017 would still be a slow year for the property market, Sulaiman noted that the rate of decline has been slowing down.
“The market will be slowing down its decline in 2017, and we hope that within the next 12 to 18 months, it will halt its decline. It’ll gradually pick up from there on,” he said.
Meanwhile, Rahim & Co founder and executive chairman Tan Sri Abdul Rahim Abdul Rahman said that based on historical data, the local market has a 10-year cycle.
He explained that the local property market sees a dip every 10 years and remains subdued for about two to three years before rebounding.
“I am very confident of Malaysia’s economy. In spite of what has been said, I think the economy will recover. Oil prices are also stabilising, which is encouraging. I am confident that we will come out of this subdued position within the next 12 to 18 months.
“I would say within the next 24 months, there would probably at least be an increase of about 10% in terms of transactions,” he said.
Commenting on the outlook for residential properties, Rahim said those priced above RM5 million — the high-end properties — will not see an increase in prices. If anything, he said, there is potential for a 5% drop in rentals or prices.
Meanwhile, the middle-range properties — priced below RM2 million — will see stagnant prices.
However, he said, affordable houses priced below RM500,000 could see an increase in prices, amid strong demand.
“There is not much supply of affordable houses. It’s not sufficient. There will continue to be pressure and demand for these houses, which is why PR1MA (1Malaysia People’s Housing Programme) is coming in to increase the supply of these houses,” he said.
For the commercial side of the local property market, Abdul Rahim pointed out the oversupply issue, highlighting that about RM15 million sq ft of office space will be coming online within the next two to five years.
“Now this is worrying because occupancy levels of offices have dropped [to] below 80%. If the owner of a building cannot rent the balance 20% of the space, there will be some cash flow problems.
“On the positive side of that, the rentals of these office spaces are not going to go up anymore,” he said.
KUALA LUMPUR: Property consultant Rahim & Co is disputing claims that the Chinese presence in the country is a cause for concern, saying that they are not “overwhelming” Malaysia’s property sector.
However, for the sake of transparency, the company said the government should release data on the composition of foreign ownership of properties. The state land offices would have the figures, so what the authorities could do is to compile those numbers, said founder and executive chairman Tan Sri Abdul Rahim Abdul Rahman (pic), who heads one of the oldest and most well known bumiputra property consultancy in the country.
Rahim said there was indeed Chinese developers and buyers in locations such as Bandar Malaysia and the southern state of Johor but one has to bear in mind that Chinese developers do have their own following and Malaysia does need foreign investments.
“Politicians will make all sorts of comments but I think there is nothing to worry about. There were also comments that Middle Eastern investors are going out. I don’t think they are going out but having said that, people do have a choice,” said Rahim at the release of its publication Rahim & Co Research – Property Market Review 2016/2017.
He shared that visitors from Saudi Arabia had been examining the market in view of the depreciating ringgit.
“We need overseas investments and it is not just from the Chinese but also from the Americans, the Japanese and others,” he said.
On the recent 1Malaysia People’s Housing Programme (PR1MA) offering a financing scheme in which buyers pay only monthly interest for the first five years and using one’s savings in the Employees Provident Fund, Rahim said “at least, he would have a house when he retires.”
PR1MA’s end-financing scheme aims for higher home ownership levels.
Rahim expects the market to be subdued for between 12 and 18 months. “It is a period of adjustment and price consolidation in closing the gap between sellers’ asking price and buyers’ expected prices,” he said.
In the residential segment, properties valued at RM5mil and above could see a drop in pricing between 5% and 10%, those RM2mil are expected to be relatively stable with a small increase in price while those RM500,000 is in short supply. Therefore, there will be pressure for demand for this segment.
The concern will be for the office segment as more large projects take off. This is “worrying” because the occupancy of office space will drop.
Average occupancy has dropped to 79% currently from the high 80% as total Kuala Lumpur office space supply of 90.8 million sq ft has pressured average occupancy lower to 79.7% in the third quarter of last year compared to the same quarter a year ago, when it was 81%.
He added that between 10 and 13 million sq ft of space were in the pipeline over the next four to five years.
KUALA LUMPUR 16 Feb. - Kemasukan pelabur asing khususnya China tidak perlu dibimbangi kerana kerajaan mempunyai peraturan dan undang-undang yang ketat bagi melindungi kepentingan rakyat tempatan.
Pengerusi Eksekutif Kumpulan Rahim & Co. (Rahim & Co), Tan Sri Abdul Rahim Abdul Rahman menyifatkan, kenyataan-kenyataan negatif mengenai kemasukan pelabur China ke negara ini lebih berbaur politik sehingga menimbulkan pelbagai persepsi buruk.
Beliau sehubungan itu mengesyorkan agar kerajaan mengeluarkan statistik atau data terkumpul mengenai transaksi pelaburan dan pembelian hartanah olah pihak asing di negara ini bagi mengelak lebih banyak kenyataan negatif dibuat oleh pihak tertentu.
Kerajaan juga jelasnya, boleh menjelaskan dasar-dasar yang dilaksanakan berkaitan pelaburan asing di dalam negara untuk pemahaman rakyat seterusnya mengelak pelbagai tanggapan negatif.
“Setakat ini, tiada lagi data terkumpul ini, jadi adalah lebih baik jika kerajaan berbuat demikian supaya orang ramai lebih tahu apa yang berlaku dan dasar apa yang dilaksanakan. Jika tidak, masyarakat akan terus membuat pelbagai tanggapan misalnya kerajaan sedang menjual negara (kepada China) dan ada pula sesetengah pihak menyatakan pelaburan luar amat diperlukan.
“Pelaburan luar amat dialu-alukan bukan sahaja dari China tetapi juga Amerika Syarikat (AS), United Kingdom (UK) mahupun Australia. Bahkan, dalam masa sama, ia juga memberi kesan yang baik kepada pasaran hartanah, misalnya ramai pelabur China yang berminat dengan Iskandar Malaysia yang mana kita amat memerlukannya,” katanya dalam sidang akhbar Prospek Pasaran Hartanah Rahim & Co. di sini hari ini.
Isu pelaburan China mula mendapat perhatian sejak akhir-akhir ini berikutan percanggahan pendapat pelbagai pihak mengenai projek gergasi di Johor Bahru dikenali sebagai Forest City dianggarkan sebanyak AS$100 bilion (RM442.9 bilion) dan didakwa hampir menyerupai Shenzhen, 10 tahun lalu.
Selain itu, turut menjadi tumpuan ialah projek Bandar Malaysia yang menyaksikan syarikat China Railway Group Ltd. (CREC) dijangka melabur sebanyak AS$2 bilion (RM8.12 bilion) untuk membina pusat serantaunya.
Menurut Abdul Rahim, kerajaan mempunyai peraturan dan undang-undang yang ketat, antaranya menetapkan pelabur luar hanya boleh membeli hartanah bernilai RM1 juta ke atas bagi melindungi kepentingan rakyat tempatan.
“Malah, sekiranya terdapat permintaan yang tinggi dari luar negara, tidak mustahil nilai RM1 juta ini boleh ditingkatkan kepada RM2 juta. Tetapi dalam masa sama, kita tidak boleh menyekat pelabur luar dengan sewenang-wenangnya kerana ia akan memberi kesan kepada pasaran hartanah.
“Saya tidak merasakan berlakunya kebanjiran pelaburan asing tetapi yang berlaku lambakan adalah pekerja asing yang pastinya tidak akan membeli hartanah di sini,” katanya.
Sementara itu, Abdul Rahim berkata, pasaran hartanah tempatan dijangka pulih dengan menyaksikan peningkatan transaksi jualan sebanyak 10 peratus dalam tempoh 24 bulan akan datang.
Bagaimanapun kata beliau. dalam tempoh 12 hingga 18 bulan pertama, prestasi transaksi masih mencabar disebabkan persekitaran ekonomi yang perlahan terutama kejatuhan nilai ringgit dan pergerakan harga minyak mentah.
Katanya, jumlah keseluruhan transaksi hartanah pada sembilan bulan pertama 2016 direkodkan sebanyak 239,983 buah, menyaksikan penurunan sebanyak 11.9 peratus berbanding 272,296 buah bagi tempoh sama 2015.
“Trend penurunan ini sudah bermula sejak 2013. Walaupun terdapat sedikit kenaikan pada 2014, tetapi trend penurunan ini berterusan sehingga 2015 dan tiga suku pertama 2016. Ini menyaksikan keseluruhan nilai transaksi hartanah juga menurun sebanyak 16.4 peratus kepada RM95.4 bilion.
“Sehubungan itu, berdasarkan kepada trend ini, aktiviti pasaran hartanah tahun ini dijangka lebih perlahan. Secara purata, harga hartanah masih mengalami peningkatan walaupun pada kadar perlahan dan dijangka berdepan dengan tekanan jika sentimen pasaran hartanah semasa masih tidak berubah,” katanya.
KUALA LUMPUR (Feb 16): Property consultancy firm Rahim & Co said it expects the Malaysian property market to recover within the next year or so, as the decline in property transactions is seen to be slowing down.
Rahim & Co director Sulaiman Akhmady Mohd Saheh (pictured) pointed out that the market has been declining since it peaked in 2012.
"The market peaked in 2011 and 2012 and had fallen in 2013, and the drop continued to 2016. By the third quarter of 2016, the total volume dropped by 11.9% while value dropped by 16.4%.
"Since 2010, we had an average of 96,000 transactions per quarter but for the first three quarters of 2016, it averaged below 80,000, which reflects the current subdued market," he said during the company's review of the Malaysian Property Market and the prospects of 2017 today.
While he acknowledged that 2017 would still be a slow year for the property market, he noted that the rate of decline has been slowing down.
"The market will be slowing down its decline in 2017, and we hope that within the next 12 to 18 months it will halt its decline. It'll gradually pick up from there on," he said.
Meanwhile, Rahim & Co founder and executive chairman Tan Sri Abdul Rahim Abdul Rahman pointed out that based on historical data, the local market has a 10-year cycle. He explained that the market sees a dip every 10 years before rebounding.
"Every 10 years, the market dips. It'll dip for about two to three years and then it rebounds. 2015 was a good year but 2016 was a subdued year and it will remain subdued in 2017.
"I am very confident of Malaysia's economy. In spite of what has been said, I think the economy will recover. The oil prices are also stabilising, which is encouraging. I am confident that we will come out of this subdued position within the next 12 to 18 months," he said.
Rahim added that the local market could see a 10% increase in transactions over the next 24 months. — theedgemarkets.com.
KUALA LUMPUR: Rather than subsidising the cost of senior citizen living, property industry experts suggested that reverse mortgages could better help senior homeowners be more financially independent in their golden years.
Commenting on the recently announced Budget 2017, property management, valuation & estate agency surveying vice-president of the Royal Institution of Surveyors Malaysia Choy Yue Kwong said it would be better to help unlock the value of properties owned by senior citizens than to provide them with a senior citizen socioeconomic assistance of RM300 a month as announced in Budget 2017.
“The subsidy is hardly enough for them to have a worry-free retirement. They can have a better quality of life if the government introduces reverse mortgages,” said Choy in a panel discussion entitled “Budget 2017 and the world economy impact on the property sector” at “The Malaysian Property Market: Opportunities amidst uncertainties” forum organised by Rahim & Co International on Nov 1.
The session was moderated by Rahim & Co executive chairman Tan Sri Abdul Rahim. Other panellists were Bank Negara Malaysia economic department director Fraziali Ismail and Rahim & Co’s real estate agency director Robert Ang.
A reverse mortgage is a type of home loan designed for senior homeowners. It allows senior citizens to access the home equity on a monthly basis until they die, sell or move out of the home.
Fraziali agreed that reverse mortgages are a good proposal but details of its implementation would be crucial.
Meanwhile, he pointed out that the root reason many people cannot afford to own a property is because income growth has failed to catch up with property price growth.
“Look around Southeast Asia. Are Malaysian properties really not affordable?” Fraziali asked.
“Our income level is the root reason for the so-called unaffordability.”
He added that historically, Malaysians receive lower salaries for the same jobs compared with neighbouring countries such as Singapore, and this could be due to productivity levels.
“We cannot deny that our productivity is not as high as other developed countries in Asia such as Singapore and Japan. This can be improved gradually via education and the introduction of new technology. However, for now, we need more time [to see income catch up with property price growth],” Fraziali said.
House ownership, he added, is not the “most urgent” thing to be solved in the nation right now. “We still have time to sit down and figure out the best solution. Right now, I think those in-need [of a property] but could not afford, should rent first, which the government is trying to assist by building houses to be rented to the young working group.”
Meanwhile, Ang said developers should lower their profit margins to raise affordability.
“Developers should step up and cut their profits and do their part in making properties affordable rather than to rely on the government,” Ang added.
He also urged the government to focus on stimulating the economy rather than focusing only on the property market. “Because if the economy does not do well, all industries will be in trouble.”