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Showing posts with label Prices. Show all posts
Showing posts with label Prices. Show all posts

Monday, November 18, 2024

Govt intervention won’t fix housing prices

 

Every adult should sensibly secure a home as everyone needs a roof over their head ■ Residential properties in prime locations undergoing ‘shrinkflation’, with sustained higher prices despite new units getting smaller

Greyscale low angle view of a highrise building with glass windows under sunlight


THE indirect discussion on multiple-home ownership between Housing and Local Government Minister Nga Kor Ming and former Cabinet member Khairy Jamaluddin over various media channels has ignited interest among Malaysians.

The latter wondered on his podcast Keluar Sekejap last week if limiting property purchases could help alleviate the crisis in affordable housing by addressing the surplus of unsold high-end homes that contribute to inflated prices.

Nga countered by dismissing the proposal, arguing it is not the government’s role to restrict investments in the real estate sector, which has proven to be an effective hedge against inflation and a means of wealth preservation.

He cautioned that such restrictions could harm the property sector and negatively impact some 200 industries connected to real estate, including contracting, plumbing, banking and legal services.

From a foreign perspective, if one were to speak to ordinary Hong Kong residents, it would come as no surprise to find that opinions are mixed on tycoon Li Ka-shing, the billionaire founder of CK Hutchison Holdings Ltd.

Although Li – whose name is synonymous with wealth in the former British colony – is a highly regarded businessperson, many in Hong Kong put the blame for the city’s exorbitant property prices on ultra-rich individuals like him, who made their fortunes by flipping properties in the densely populated region.

In fact, there is a local saying that goes:

“The houses in Hong

Kong are not meant to be inhabited.

They are meant to be ‘fried’ (slang for flipping at a higher price in Cantonese).”

This, of course, is in addition to the fact that most

Hong Kong residents live in high-rise units that can feel claustrophobic.

This may explain why many of them enjoy being out on the streets as long as possible, even into the early hours of the morning.

Back home, if one were to drive around our own cities of Kuala Lumpur, Petaling Jaya, Georgetown and Johor Baru, one can’t help but notice the significant number of high-rise residential buildings under construction.

This prompts one to ask a pressing question: Who is actually buying these units?

In addition, it is reasonable to wonder if property investment is truly so lucrative, what will happen to the prices of these high-rise accommodations in the future, especially in view of the government’s goal to encourage homeownership among the youth?

In fact, just a couple of months ago, before Khairy’s comments on his podcast, this writer – who has never advocated for socialist practices in any way – had wondered out loud to his spouse whether the government might need to step in and limit the “frying” of residential property prices.

So, is Malaysia heading in the same direction as Hong Kong?

At first glance, maybe not, but a deeper look may reveal a different story.

Reports in The Star earlier this week indicated that Malaysian residential properties in prime locations are undergoing “shrinkflation”, characterised by a sustained increase in property prices even though new units are getting smaller.

This trend places a heavier burden on buyers, especially on young Malaysians intending to buy their first home.

However, property prices and social responsibilities aside, it is easy to understand why investing in real estate is so attractive: for one, it is more tangible than stocks, bonds or mutual funds, and the thrill of monthly rental collection appeals to those seeking regular returns.

On the other hand, equities and bonds are much easier to liquidate, and there is significantly less legwork involved as members of the public do not normally run the companies whose shares they own, as opposed to property owners who bear the cost of maintaining their assets.

Furthermore, for those interested in steady income, there are blue-chip banking stocks that offer healthy dividend yields, often with lower upfront costs compared to real estate.

Seasoned investor Ian Yoong, whose portfolio regularly achieves a compounded annual growth rate of 23%, believes that Malaysian property prices have increased at a healthy rate over the past few decades.

He points out that restricting residential-property ownership could suppress prices, ultimately discouraging investment in the sector.

“Malaysia’s property market overhang improved slightly in the first half of 2024 (1H24) compared with 2H23, with the total number of unsold units falling by 12.3% and their aggregate value declining by 19.5%.

“The current property overhang itself will cap the rise of residential property prices over the next couple of years.

“The government should therefore not impose any limits on home ownership,” he tells Starbiz 7.

Yoong emphasises that the current property overhang will naturally limit the rise of residential property prices in the coming years.

He advises the government to refrain from imposing any restrictions on homeownership, as doing so could hinder market growth.

A cursory check supports Yoong’s claim, revealing that high-rise residential property prices in many areas of Kuala Lumpur and Petaling Jaya have stagnated compared with 15 to 20 years ago, when the property market was experiencing a boom.

This is despite the completion of both Mass Rapid Transit (MRT) lines 1 and 2 in recent years, which many investors felt could have improved prices, particularly in neighbourhoods near the MRT stations.

While it is understandable that Yoong would prefer to invest in equities given his success and the comparatively less field work, he strongly advises every Malaysian adult to obtain a home.

“Save for a down payment and apply for a bank loan to buy a residential property that is within your means. It matters little whether it is a lowcost flat or a terrace house.

“While this might not be the best investment strategy, it is a sensible move. Every adult needs a roof over their head,” he says.

Yoong says that the monthly loan repayment acts as a form of forced savings.

He stressed that in reality, not everyone is meant to be a successful investor, but almost everyone can be a property owner.

“Once home ownership is out of the way, one can then focus on investing surplus funds in shares, properties, cryptocurrencies and the like,” he advises.

The Star - StarBiz
KEITH HIEW keith.hsk@thestar.com.my

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Tuesday, October 9, 2018

Malaysia's Broadband Plans Not Up to Speed Yet

Still waiting: Some existing users are exasperated as they have yet to enjoy the higher broadband speeds promised by their service providers.

Broadband users also complain of not enjoying lower prices


PETALING JAYA: The telcos may have announced lower prices and faster Internet speeds, but many existing fixed broadband users are complaining that they have yet to enjoy these benefits.

On Sunday, the Malaysian Communications and Multimedia Commission (MCMC) announced that Telekom Malaysia (TM), Maxis, Celcom and Time have introduced new entry-level plans below RM100 that are more than 30% cheaper.

But the price reduction and speed increase brought about by the Mandatory Standard on Access Pricing (MSAP), which was implemented on June 8, have yet to trickle down to consumers.

Communications and Multimedia Minister Gobind Singh Deo said in a statement he was aware that not all existing fixed broadband users are enjoying higher speeds and lower prices.

“I found that the packages do not lower the price of services to existing customers. This means that they cannot benefit from the new packages immediately,” said Gobind.

“I will meet with the telco representatives to discuss this matter in the near future. At the same time, I would also like to emphasise that telcos that have offered the new packages should ensure the services are actually implemented.”

Gobind said MCMC is required to monitor the implementation of the new plans and manage all complaints received and to take firm action where necessary to ensure that the services provided are in line with what was promised.

MaxisOne Home Fibre subscriber Leela Krishnan is disappointed that she has yet to receive any update from Maxis.

“No SMS, e-mail or call from the company to tell how MSAP would affect my monthly bill, or what new plans are available for me,” said the graphics designer, 44.

Maxis said the upgrade was not automatic for existing customers as they have to first pick one of two plans – 30Mbps at RM89 or 100Mbps at RM129 per month.

They can do so at the Maxis page, bit.ly/2gacJxB, but will be recontracted for 24 months. Also, customers who break the new contract will incur a RM500 penalty.

Maxis said recontracting is necessary as it is providing a new router which is capable of maximising the higher speed for WiFi, and at no cost to the consumer.

Astro IPTV customers have also been left hanging on the status of their packages as the company has yet to announce anything.

Idzla Hafiz, 34, who is using the Astro IPTV 10 package, said he is paying RM148 for a mere 10Mbps broadband speed, and he has not received any updates.

“I hope I won’t be paying the same amount next month because that means I will be spending RM59 more than Maxis users and still get a lower speed,” he said.

An Astro spokesman told The Star that the company is still in discussion with its broadband partners – Time and Maxis.

“Discussions are progressing well and we hope our broadband partners will extend the same benefits to our Astro IPTV customers,” the spokesman said, adding that it hopes to make an announcement soon.

Meanwhile, TM’s free upgrade for existing users, which started in August, is expected to go on until the first quarter of next year, as it says it has over 800,000 subscribers to upgrade.

Unifi Home 20Mbps or lower subscribers will be upgraded to 100Mbps, 30Mbps to 300Mbps, 50Mbps to 500Mbps and 100Mbps to 800Mbps.

Public relations consultant Daniel Yao, a Unifi customer of seven years, said it is “ridiculous” that Unifi introduced a cheaper plan for new users but long-time users are still stuck in the same plans.

He said Unifi informed him that the only way to opt for the cheaper and faster plan is to terminate his current package and sign up for a new one.

“That means I need to sign a new contract and redo the whole thing at a TM office,” he added.

TM’s Streamyx customers, especially in the outskirts, have also been complaining to MCMC on Twitter that they are still not being upgraded to Unifi and are being forced to pay more for lower speeds due to lack of infrastructure.

“I found out that there are no suggestions provided to address the issues faced by existing Streamyx users, therefore this is something I need to tackle immediately,” said Gobind.

As at press time, TM has yet to respond to queries from The Star.

Celcom, which offers its Home Fibre plans only in Sabah, said it has upgraded all existing customers to the higher speeds and lower prices since September without recontracting.

All its Home Fibre users, starting from 10Mbps, were upgraded to 100Mbps, and their bill reduced to RM120 per month.

The telco said those who have yet to receive their upgrades can contact its customer service line at 1-300-11-3282.

Time also claims that it has upgraded all its existing users and notified them via e-mail.

The 100Mbps plan (RM149) was upgraded to 500Mbps (RM139) while the 300Mbps (RM189) and 500Mbps (RM299) plans were both upgraded to 1Gbps (RM189).

However, the new subscription fees will only be reflected in bills that are issued from Oct 15 onwards.

If users are still facing slow speeds, it recommends that they restart their router and perform another speed test.

It is best done via a desktop or laptop connected to the router via an Ethernet cable, as users may not be able to get the full speed via WiFi.

If nothing works, users can get in touch with Time via 1800-18-1818 or cs@time.com.my.

Source: The Star by angelin yeoh, mei mei chu, and sharmila nair

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