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UNRAVELING THE INFLATED HOUSE PRICE IN THE NEW HOUSING SUPPLY

UNRAVELING THE INFLATED HOUSE PRICE IN THE NEW HOUSING SUPPLY. Rahah Ismail, Ph.D , Department of Valuation and Property Services rahah@jpph.gov.my rahah_ismail@yahoo.co.uk. Introduction. Focus of Study. Scene Setting : About Iskandar Malaysia. About Iskandar Malaysia.

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UNRAVELING THE INFLATED HOUSE PRICE IN THE NEW HOUSING SUPPLY

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  1. UNRAVELING THE INFLATED HOUSE PRICE IN THE NEW HOUSING SUPPLY Rahah Ismail, Ph.D, Department of Valuation and Property Services rahah@jpph.gov.my rahah_ismail@yahoo.co.uk

  2. Introduction

  3. Focus of Study

  4. Scene Setting :About IskandarMalaysia

  5. About Iskandar Malaysia

  6. LOCATION OF ISKANDAR MALAYSIA ISKANDAR MALAYSIA

  7. Basic Facts on Iskandar Malaysia & Singapore

  8. Internationalisation of Iskandar Malaysia

  9. INVESTMENTS IN ISKANDAR MALAYSIA Cumulative Committed Investment Local vs Foreign 54% 45% 46% 55% Source: IRDA, Khazanah, IIB , MIDA as at Dec 2012 & corporate announcements

  10. QUOTA ON FOREIGN OWNERSHIP

  11. QUOTA ON FOREIGN OWNERSHIP (CONT’D)

  12. Housing Supply in Iskandar Malaysia

  13. Housing Supply In Iskandar Malaysia Existing Housing Supply : 409602 No. of Household : 329,268 Population Growth Rate : 2% per annum The housing market is full of optimism, In anticipation of demand from Singapore and the oil and gas hub in Pengerang.

  14. Framework for Analysis Ball, 1986, 1998; Bassett and Short, 1980; Healey, 1991, etc

  15. Research Framework

  16. Datasets

  17. Surveys and Interviews

  18. Median House Price Movements

  19. Price Movements in the Primary & Secondary Market Price(RM)

  20. Foreign Participation in the Local Market

  21. Foreign Participation in the Local Housing Market Number of foreign participation in the local housing market increase substantially each year Average annual increase of 40% over the period of 10 years

  22. Foreign Participation in the Local Housing Market With the exception of 2010 and 2013, the percentage of foreign purchasers in the local housing market is not more than 5.5%

  23. Participation of Foreign Buyers in the Housing Market • Foreign purchasers are active in the primary market. • Local buyers have to compete with foreign buyers • Foreign purchasers appear to have impact in the local housing market

  24. Local Buyers Inclination in the 2 Storey Terrace House Market Segment • Local house buyers turned to secondary market when the price is too high.

  25. Is the Sales Price the Asset Price? Developers’ sales price is not the asset price Sales price include marketing incentives Incorporation of marketing incentives in the sales price inflate the selling price

  26. Local Participation - Willing Buyer, Willing Seller, Willing Financiers in the Primary Market

  27. Findings

  28. Findings

  29. Findings

  30. Findings

  31. Findings

  32. Conclusion

  33. Recommendations

  34. THANK YOU

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