Improved outlook signalled for Malay property market as govt outlaws dodgy developers

The Malaysian property market is expected to improve further in 2010 in line with the economic recovery, it is claimed.
 
According to Datuk Abdullah Thalith Md Thani, the director general of Valuation and Property Services Department at the Finance Ministry, the challenging economic and financial environment had affected the overall performance of the Malaysian property market last year but the outlook is better for 2010.
 
‘The property market for this year will improve as the number of transactions involving new housing and construction activities, increases,’ he told the Third Malaysian Property Summit.
 
He explained that Malaysia is expected to steer towards a recovery path this year, driven primarily by domestic demand, with commodity prices for rubber, crude oil and palm oil also improving.
 
These, he said would increase the confidence level among consumers and provide a positive impact for the property sector. ‘The demand for properties is returning,’ he added.
 
Abdullah Thalith said the government would continue to implement appropriate measures to restore confidence and market sentiment. In particular the liberalisation of Foreign Investment Committee (FIC) guidelines would increase the competitiveness of Malaysia, as a preferred investment destination.
 
Acquiring properties in Malaysia would be more attractive, as FIC approval is no longer required and the review of the Real Property Gains Tax (RPGT) would also boost the property industry, he added.
 
Also officials are determined to crackdown on dodgy operators. Malaysian Housing and Local Councils Minister Kong Cho Ha revealed that 1,345 developers and more than 5,000 directors of companies involved in problematic projects have been blacklisted including projects that have been abandoned and those not completed on schedule.
Mr Kong said it involved not only housing projects that were abandoned but also housing projects that were not completed on schedule.
 
‘Apart from being blacklisting, many developers were also fined for not conforming with the Housing Act, including not preparing reports on schedule, especially work progress reports every six months,’ he said.
 
Kong said there were 135 abandoned housing projects in the country but some were being revived by corporate organisations. Though the figure was not high when compared with 18,000 housing projects throughout the country, officials still want to outlaw bad developers.
 
‘For every developer, starting a new housing project is a new business. So, if they understand their responsibility as a developer and follow the agreement, they must complete the projects according to the dates set,’ he said