Thursday, December 22, 2011

Always Blame Owners, What About Developers?

Yesterday, BERNAMA reported that property prices will see a slowdown next year. In the report, I decided to highlight in big red letters, a comment by the CEO of one real estate company who mentioned that, "“Prices will remain stable, with asking prices, not values, becoming more reasonable as owners check their values to real pricing".

No doubt, the property speculators among us have been buying and flipping properties to make profits. This has contributed to property prices going up to the all time high today. These very few speculators are obviously causing many genuine and needy home-seekers finding owning a home becoming unbearably unaffordable.

Although I acknowledge that property speculators and owners looking at liquidating their properties are responsible for this, it is not as bad as the developers launching their new projects at record prices each and every time. Just look at all the new KLCC area launches. Nothing below RM1000psf now. And even Petaling Jaya and as far as Shah Alam, new condominium launches are going at RM800psf. In comparison, a 15 year old condominium in Pantai Panorama for example is RM420psf and in the KLCC area, you can still buy a unit at Menara Bukit Ceylon 1,600sf at RM600psf.

Yes, blame! But be fair and blame the developers who bought their land years ago cheap and cashing in on the property boom today. Then they throw in DIBS and all sorts of incentives to encourage even more speculation. And at the end of the day, at least the property speculators pay tax every time they flip their properties!


Ann Khee said...

Yes, we forget the developers who are big culprits too. Same case like banks - the legal "ah long".

Anonymous said...

then you buy for what ?

from a banker

Anonymous said...

Well said SL, to add the bankers too. Both developers and bankers working hand in hand to enslave younger generation.