China is reportedly clamping down on underground banks through which its citizens are sending money to buy homes abroad in places like Australia, creating havoc in some overseas property markets.

Demand from China for apartments in Sydney has now reportedly fallen, according to The Australian:

The Chinese citizens sending money to Australia are scared that China’s banks and/or the currency will collapse so go to incredible lengths to get money out of China and into “safe havens” like Australian and Canadian real estate.

But the Chinese money exit clamps are becoming more successful and we have seen a big fall in Chinese demand for Sydney apartments…

Bloomberg reports that the “Chinese are limited by rules that allow them to convert only $50,000 per person a year”. So how do Chinese citizens side-step these exit controls?

The methods include China’s underground banks, transfers using Hong Kong money changers, carrying cash over borders and pooling the quotas of family and friends — a practice known as “smurfing.” The transfers exist in a gray area of cross-border legality: What’s perfectly legitimate in another country can contravene the law in China.

“It’s not legal for people to use secret channels to move money abroad, because this is smuggling,” says Xi Junyang, a finance professor at Shanghai University of Finance & Economics. “But the government has kept a laissez-faire attitude until recently.”

Now, policy makers are starting to take the outflow seriously. While it’s not about to run out of money, China has intensified a crackdown on underground banks that illegally channel cash abroad. It’s also trying to capture officials suspected of fleeing overseas with government funds.

Bloomberg outlines the techniques that are being used to get money out of the country. But what happens when the exit clamps grow tighter? How will that affect property prices abroad that were previously buoyed by interest from Chinese citizens?

There was a time when property development in Malaysia was for local buyers, seeking local homes. Restrictions on foreign ownership, Capital Gains Tax, and shorter bank loan repayment periods helped keep a lid on prices and speculation. As a result, property prices were more stable and homes more affordable for local buyers.

But obviously this is no longer the case, not helped by quantitative easing, speculation, longer loan repayment periods, and an almost free-for-all in the property sector.

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80 COMMENTS

  1. China is making “unequal ” treaties with tinpot democracies in the somewhat same way Europeans did with China long ago. History repeats itself with a twist. Malaysia may be going to a kind of loan shark. Malaysia may be trading its sovereignty for loans from China so that Malaysia’s leaders may continue with their money laundering with taxpayers money.

    Malaysia is on fire sale, no thanks to a PM who is desperately trying to save his own skin then to give a hoot to the suffering of the rest of us. And China is the country that has excess cash, much of it (allegedly) stolen loot I can guess, who are willing to pick up a good bargain. But why the Chinese? Because other rich and mature nations are more discerning and wiser when it comes to investing in a nation that is now widely known as a kleptocracy. Only the mainland Chinese dare to take the risk as they know they can grease their way through red tapes and whatever obstacles that may be in their way. They can make Malaysia their Little China.

  2. Kluang MP Liew Chin Tong said that PM Najib and Liow must inform Malaysians whether the RM200 billion Carey Island Port project would be entirely funded by private investors from China or involve allocation of government funds.

    “Who pays for what is an important question. RM 200 billion is a lot of money for Malaysians of multiple generations to pay if the proposed project fails like the Port Klang Free Zone,” said Liew, who noted that the federal budget for 2017 is RM260 billion.

  3. When Najib approached China for more investment, China saw this as a good opportunity to cement a relationship with a key Southeast Asian country. But China is also being criticised for investing too much into the relationship with Najib and his allies, to the extent that the Sino-Malaysia relationship now seems to be based on, and driven by, Najib’s personal agenda. Any threat to the prime ministership of Najib could therefore become a threat to Sino-Malaysian ties. There is a real risk that Chinese investment projects could be suspended or delayed if Najib is forced out of power or if the opposition wins.

    • China is no different from your neighborhood Ah Long.
      Borrow now and suffer later when payback is due.
      China will soon populate nusantara zone with Han people like it did at Xinjiang and Tibet. Now you know Forest City is just part of the plan.
      China studied the history and knew how the Sultan gave up Singapura to Raffles of British. Country Garden is the China’s version of British India company!

      • China may be eyeing Nusantara Malaya (sans SingLand) as their nearest ports of call for rapid deployment of long range submarines & aircraft-missile launching carriers & drones. Logistics for her Air Force & Navy has never been more important & strategic in enforcing her might + historic claims over the Spratly Islands & South China Sea.
        In the event of a sea blockade by US Navy that may lead to a confrontation in the Spratly, China would need to have instant access to fuel & other logistic supplies to support her military stand off over a period of time & to check mate the US with surprises.
        Firing an ICBM from a submarine in the Straits of Malacca (hidden behind the Main Range from direct radar detection) at US aircraft carriers circling the Spratly is one surprise Donald Trump may have to mince his own demeanour: “Wan Yun! We are Fired (upon)!”
        The first pro-US military installation to be neutered may be the AWAC aircraft stationed in SingLand!

      • From loan provider to pawnshop – this is PRC With Lending Money Can Do Anything.
        Now you know why we call political traders of anything that can be pawned if cannot service bad loans.

      • Bandar Malaysia has been pawned for the PRC’s loan? Maybe it could be renamed Bandar Mao down the road?

        (Could) the PRC developers … soon extend their claws towards the Malay enclaves in KL…?

  4. China’s debt trap diplomacy
    http://www.malaysiakini.com/news/370660

    COMMENT If there is one thing at which China’s leaders truly excel, it is the use of economic tools to advance their country’s geostrategic interests. Through its US$1 trillion ‘one belt, one road’ initiative, China is supporting infrastructure projects in strategically located developing countries, often by extending huge loans to their governments. As a result, countries are becoming ensnared in a debt trap that leaves them vulnerable to China’s influence.

    Of course, extending loans for infrastructure projects is not inherently bad. But the projects that China is supporting are often intended not to support the local economy, but to facilitate Chinese access to natural resources, or to open the market for low-cost and shoddy Chinese goods. In many cases, China even sends its own construction workers, minimising the number of local jobs that are created.

    Several of the projects that have been completed are now bleeding money. For example, Sri Lanka’s Mattala Rajapaksa International Airport, which opened in 2013 near Hambantota, has been dubbed the world’s emptiest. Likewise, Hambantota’s Magampura Mahinda Rajapaksa Port remains largely idle, as does the multibillion-dollar Gwadar port in Pakistan.

    For China, however, these projects are operating exactly as needed – Chinese attack submarines have twice docked at Sri Lankan ports, and two Chinese warships were recently pressed into service for Gwadar port security.

    In a sense, it is even better for China that the projects don’t do well. After all, the heavier the debt burden on smaller countries, the greater China’s own leverage becomes. Already, China has used its clout to push Cambodia, Laos, Myanmar, and Thailand to block a united Asean stand against China’s aggressive pursuit of its territorial claims in the South China Sea.

    Moreover, some countries, overwhelmed by their debts to China, are being forced to sell to it stakes in Chinese-financed projects or hand over their management to Chinese state-owned firms. In financially risky countries, China now demands majority ownership up front. For example, China clinched a deal with Nepal this month to build another largely Chinese-owned dam there, with its state-run China Three Gorges Corporation taking a 75 percent stake.

    As if that were not enough, China is taking steps to ensure that countries will not be able to escape their debts. In exchange for rescheduling repayment, China is requiring countries to award it contracts for additional projects, thereby making their debt crises interminable. Last October, China canceled US$90 million of Cambodia’s debt, only to secure major new contracts.

    Some developing economies are regretting their decision to accept Chinese loans. Protests have erupted over widespread joblessness, purportedly caused by Chinese dumping of goods, which is killing off local manufacturing, and exacerbated by China’s import of workers for its own projects.

    New governments in several countries, from Nigeria to Sri Lanka, have ordered investigations into alleged Chinese bribery of the previous leadership. Last month, China’s acting ambassador to Pakistan, Zhao Lijian, was involved in a Twitter spat with Pakistani journalists over accusations of project-related corruption and the use of Chinese convicts as laborers in Pakistan (not a new practice for China). Zhao described the accusations as “nonsense.”

    In retrospect, China’s designs might seem obvious. But the decision by many developing countries to accept Chinese loans was, in many ways, understandable. Neglected by institutional investors, they had major unmet infrastructure needs. So when China showed up, promising benevolent investment and easy credit, they were all in.

    Real objective became clear only later

    It became clear only later that China’s real objectives were commercial penetration and strategic leverage; by then, it was too late, and countries were trapped in a vicious cycle.

    Sri Lanka is Exhibit A. Though small, the country is strategically located between China’s eastern ports and the Mediterranean. Chinese President Xi Jinping has called it vital to the completion of the maritime Silk Road.

    China began investing heavily in Sri Lanka during the quasi-autocratic nine-year rule of President Mahinda Rajapaksa, and China shielded Rajapaksa at the United Nations from allegations of war crimes. China quickly became Sri Lanka’s leading investor and lender, and its second-largest trading partner, giving it substantial diplomatic leverage.

    It was smooth sailing for China, until Rajapaksa was unexpectedly defeated in the early 2015 election by Maithripala Sirisena, who had campaigned on the promise to extricate Sri Lanka from the Chinese debt trap. True to his word, he suspended work on major Chinese projects.

    But it was too late – Sri Lanka’s government was already on the brink of default. So, as a Chinese state mouthpiece crowed, Sri Lanka had no choice but “to turn around and embrace China again.” Sirisena, in need of more time to repay old loans, as well as fresh credit, acquiesced to a series of Chinese demands, restarting suspended initiatives, like the US$1.4 billion Colombo Port City, and awarding China new projects.

    Sirisena also recently agreed to sell an 80 percent stake in the Hambantota port to China for about US$1.1 billion. According to China’s ambassador to Sri Lanka, Yi Xianliang, the sale of stakes in other projects is also under discussion, in order to help Sri Lanka “solve its finance problems.” Now, Rajapaksa is accusing Sirisena of granting China undue concessions.

    By integrating its foreign, economic, and security policies, China is advancing its goal of fashioning a hegemonic sphere of trade, communication, transportation, and security links. If states are saddled with onerous levels of debt as a result, their financial woes only aid China’s neocolonial designs. Countries that are not yet ensnared in China’s debt trap should take note – and take whatever steps they can to avoid it.

    • Chin Peng should be very happy now. His dream of establishing a “Communist Party of Malaya/sia” is (allegedly) finally coming to reality. It is high time for BN to allow his remains to be buried in Sitiawan, Perak, or possibly in Forest City?

  5. Certain Penang folks will vote for LGE administration in state election but will continue to give their votes to Najib BN in parliamentary seats in order to ‘maintain stability’ (MCA calling card). Is this not very selfish?

    Anyway I see nothing wrong if Mukhriz and LKS have ambition to be PM and DPM respectively. This is better than the spineless MCA that is made to be satisfied with 3 minister posts so long as they can land the government contracts for their key cronies members.

  6. TI-M: All politicians corrupt, so choose the less corrupt
    http://www.malaysiakini.com/news/370469

    Transparency International Malaysia (TI-M) has asked Malaysians to choose between the lesser of two evils in the upcoming general election.

    Acknowledging that it is difficult to find politicians who are not corrupt, TI-M president Akhbar Satar said voters should cast their ballots for those who are considered to be “less corrupt”.

    So anilnetto.com is not out of mind to bring out contentious issues, some of which can cause instant knee-jerks & bruised egos among the diehards of overt-political worshipping.
    You have 3 choices: vote for the absolute evil or vote for the lesser evil or if your conscience is strong, abstain from voting.

    • Malaysia scored 49/100 in the latest CPI, a one-point drop from last year’s score of 50, leaving it on par with Croatia. The latest CPI ranked Malaysia at the 55th spot among 176 countries surveyed. It was ranked at no. 54 in 2015. On the CPI scale, zero is perceived to be highly corrupt, while 100 is perceived to be very clean.

    • Umno’s claims of innocence on corrupted practices could be believed provided there is freedom to investigate so that evidence could be presented in court and thereby tried and declared guilty or innocent. In this instance if a holder of high public office has had his or her PERSONAL bank account infused with billions of dollars and other countries of the world through their own investigations have seen it fit to prepare to try such cases in court, isn’t it baffling to say the least that none of this is deemed necessary in our own country? So the proclamation by Ku Nan that “we don’t practice corrupt practices” means what?

  7. From Mahathir’s perspective – and that of other Malay politicians from the anti-Najib camp – the Forest City project was a political godsend. Mahathir hopes that by playing on fears that Najib is selling Malaysia’s sovereignty (or simply Malay land to China), and suggesting the country is becoming a satellite state of Beijing, he can gain traction with the largely conservative rural Malay support base in Johor and beyond.

    Mahathir has also peddled the alarmist view that Malaysia will be overrun by an influx of Chinese workers and residents who will unbalance Malaysia’s constitutionally enshrined ethnic quotas.

    A sizeable portion of conservative Malays remain apprehensive of Chinese Malaysians and a Sino-centric regional order, underpinned by a rising China, so this issue of Malaysia selling its economic soul to China is likely to be a hot-button issue during the election.

    Non-Malay opposition politicians are also likely to make it an electoral issue, by arguing that the real concern over the funding from Beijing is whether it is finding its way to all Malaysians, regardless of race, or whether it only benefits the elites.

    • I believe most Johoreans particularly the Malays are ignorant about the social impact of Forest City until now. But they must first question the validity of the ambiguous concept of Bangsa Johor and how it could accommodate the influx of foreigners who buy those expensive properties, freebies or leasehold, that the locals can ill afford.

      • AMPANG, 23 JAN: Di saat orang Melayu negara ini ditakutkan dengan dengan ‘kaum Cina’ kononnya akan menguasai Malaysia, pada masa yang sama, kedaulatan negara terus tergadai kepada syarikat dari negara China.

        Menurut Presiden Parti Amanah Negara (AMANAH), Mohamad Sabu, propaganda menakut-nakutkan orang Melayu seperti itu sengaja dibiarkan berleluasa supaya kaum Melayu tidak mengubah undi pada pilihan raya umum akan datang lapor Malaysiadateline.

        “Kita lihat di media sosial (serangan) bertubi-tubi, jangan diizinkan DAP perintah Malaysia. Nanti Cina akan kuasai kita. Di kuliah-kuliah masjid seluruh negara seolah-olah tanpa sekatan dimainkan isu perkauman ini.

        “Jangan jadi macam Singapura. Lihat Cina memerintah, masjid pun ditutup. Propaganda seperti ini sengaja dibiar untuk melahirkan ketakutan di kalangan Melayu untuk tidak mengubah undi pada PRU akan datang.

        “(Tetapi) Merekalah yang sekarang ini menggadaikan negara ini kepada China sehingga menjadi kegelisahan sebahagian besar rakyat. Dimainkan (konon mahu) jaga negara, kalau jatuh (kerajaan BN) Malaysia, DAP perintah Malaysia tetapi tempat-tempat strategik negara dianugerahkan kepada syarikat-syarikat negara tersebut,” katanya berucap di Majlis Makan Malam Amanah dekat sini.

        Jelasnya, kenyataan itu bukan bermaksud Pakatan Harapan menolak kepentingan pelaburan asing namun ianya harus terkawal dan tidak mengancam kedaulatan tanah air.

        “Kita mahu pelabur asing tetapi biar mereka datang dengan terma syarat ditentukan oleh negara yang memberi manfaat kepada rakyat bukannya mereka datang sehingga boleh menguasai sesuatu tempat,” tegas beliau.

  8. Dwindling Chinese population bodes ill for nation and economy, analysts say
    https://sg.news.yahoo.com/dwindling-chinese-population-bodes-ill-nation-economy-analysts-225700486.html

    KUALA LUMPUR, Jan 23 ― The trend of ethnic Chinese emigration from Malaysia will result in a smaller private sector, less tax monies for the government and a reduced professional workforce, political analysts said.

    They also expressed concern over whether demographic changes would be manipulated to reinforce racial and political dominance as well as possible hazards to minority rights if the country’s ethnic composition shifts towards any single community.

    “The Chinese community is known to be very enterprising and economically vibrant,” independent analyst Khoo Kay Peng told Malay Mail Online.

    “The community has been important to the nation’s development. It is a worrying trend for the country,” he added.

    Khoo was remarking on the Asian Strategy and Leadership Institute’s (Asli) reported prediction that the ethnic Chinese will drop to about 19.6 per cent of the Malaysian population by 2030 if their emigration trend and low birth rates continue.

    The Department of Statistics, however, projected that the Chinese proportion would drop to 20 per cent of the population by 2040 from 24.5 per cent in 2010. The ethnic Indian proportion was expected to reduce by 0.9 percentage points to 6.4 per cent of the population by 2040.

    The Bumiputra population, however, was expected to grow by 4.8 percentage points to 72.1 per cent by 2040 from 67.3 per cent in 2010.

    Oh Ei Sun, adjunct senior fellow at Singapore’s Nanyang Technological University’s S. Rajaratnam School of International Studies, said the trend of implementation of Islamic law and practices in “all aspects of social life” would likely continue in tandem with the decreased non-Muslim population and worldwide Islamist revivalist sentiments.

    “Besides likely decline in their political rights, the professional human resources of the whole country would similarly be decimated,” Oh told Malay Mail Online.

    Centre for Policy Initiatives director Lim Teck Ghee said the higher fertility rates of Malay-Muslims and of Muslim foreign workers affected Malay interests, noting that impoverished and large families could strain the community and country.

    “Proper family planning and birth control will help ensure a higher quality of population and fewer socio-economic problems,” Lim told Malay Mail Online.

    “In my opinion, a large part of the benefits of the NEP and other Malay-centric policies in the past 30 years has been negated by the much higher Malay rate of population increase,” he added, referring to the pro-Bumiputera New Economic Policy (NEP).

    According to the Department of Statistics, the Bumiputra recorded the highest crude birth rate of 20.5 per 1,000 population in 2014, followed by the Indians (11.7), the Chinese (10.9) and others including foreigners (9.6).

    Merdeka Center director Ibrahim Suffian said minorities ultimately needed to figure out how to work with the Muslim-majority population.

    “Muslims in Malaysia are not monolithic; they ascribe to many different political ideas,” Ibrahim told Malay Mail Online.

    “Non-Muslims probably need to accept that Muslims in Malaysia have become more deeply involved in discovering their identity (and all the forms it comes) and that they are not the Malays one reminisces as per the P. Ramlee movies of the past.

    “Muslims need to realise that non-Muslims are their fellow countrymen with whom they have a shared stake in the country’s continued peace and prosperity,” he added.

    Universiti Putra Malaysia professor of politics and government Jayum Jawan said Sarawak Dayaks and Sabah’s indigenous people would provide the balance to ensure a multi-ethnic Malaysian society.

    “The Dayaks and indigenous may be small in population, but have the legislative strength to ensure this,” he told Malay Mail Online.

    • You must encourage your children to bear more grandchildren for you, with the promise that as grandparents you and your wife will help to take care of them while they go to work. Also during your nurturing, make sure your grandkids speak Hokkien as they can speak English with your children and learn Bahasa n Mandarin in schools.

      • If you want Chinese to bear more children, pls ask gomen to intervene sky-high surreal property prices which are eating away incomes & also ask for incentives like free education (primary to tertiary), free maternity benefits, free bas sekolah, etc. Also, to follow Lee Kuan Yew’s incentives to married couples for bearing more children than 1.
        Then, only then will more Malaysian Chinese start get busy after working hours like those in the kampongs!

      • You are seriously out of date if you still subscribe to Senior Bush’s “You’re either with us, or against us”.
        Where is Absolut Fencing when it comes to politics?
        Go ask Lim Kit Siang, the father of your Idol!

      • Why not advise the Chinese to live in MCA’s new villages in rural areas where housing is cheap, have many kids as cheap labour to help you grow vegetables and fruits like good old day?

      • Self-contradictory when you say new generation shuns hard labor under the sun.
        More like having many kids for purpose of self-indulgence with no responsibility & financial acumen!

  9. Why has it to be property development to spearhead development & progress (for state or nation)?
    Is it for demand of foreigners, so to say they will create / bring jobs to our shores?
    Or is it so capital intensive so as to show a multi-billion Ringgit FDI in the nation’s balance scorecard?
    Or is it b’cos advertising revenue from property fairs + ads is the main rice bowl of publishing houses?

    Are we thinking of long-term implications : foreigner landlords determining costs of doing business in Malaysia (e.g. high cost of local rentals which are most likely repatriated to foreign lands) & outflow of capital (you cannot stop others’ legitimate profits & capital from trans-border outflow). Foreign wage determination according to foreigner business practice.

    If talking about job creations, it should be the government, local richie & industry players who can do their part to bring about business creation + growth & job creation:
    providing business capitals to potential start ups via angel investors, venture capitalists, crowdfunding, grants (we have gomen grants mostly for bumis but seriously rare for non-bumis) & other forms of funding.
    Have we not seen many local companies buying expensive cars (yearly) as a way to avoid paying corporate taxes? but this is not a total tax avoidance as it still incurs sales tax on such car purchases). The opportunity costs of such corporate purchases (for tax avoidance) would have been better use for helping start ups which would have a spiral effect on local job creation & growth for the nation.
    As for the richie, investing in stock + shares will not guarantee long-term incomes in the present global economic volatility of commodity prices such as oil. Neither is property investment as it hinges on economic quirks & elections such as US Election which has global implications. Investing in potential start ups & performing businesses will at least guarantee a longer-term income & also help to bring about economic growth for local stakeholders.

    Investing in properties, stock + shares, commodities, hedging on futures markets –
    all these are pure gambling.

    But investing in start ups is helping others & bringing about growth for the nation.

  10. Wong Chun Wai today on Sunday Star urged Malaysians to ‘think forward’ to welcome China’s investment in property development, and endorsed the Forest City reclamation project to bring tourism and jobs to Malaysia.
    http://www.thestar.com.my/opinion/columnists/on-the-beat/2017/01/22/lets-think-forward-people-playing-the-race-card-and-bashing-one-of-our-biggest-economic-partners-ch/

    Wong wrote:
    Today’s Chinese buyers are affluent and well-heeled. They would probably have similar investments in other countries especially Britain and Australia. They are not the types arriving in boats like the ancestors of the Malaysian Chinese and for sure, they don’t need our Malaysian passports or to look for jobs here.

    • Less controversy for Penang if the developers are from PRC instead of the local players like Ideal and Ivory?

      • Less controversy?
        More likely less sound-sleep when any condo built by PRC workers can collapse with the slightest rumbling of the Ring Of Fire volcanoes!

  11. Malaysia’s PM Najib Razak said Johor’s massive Forest City development can help the transformation of the southern state, like Dubai, which built giant property projects to attract investors.

    And he said the criticisms by former premier Mahathir Mohamad that Malaysia was throwing away its sovereignty by selling Johor land and housing units to companies from China and their buyers are slander, as the projects are sold on 99-year leases.

    “Today Dubai has become a great metropolis and its people earn high incomes. If Dubai can succeed, we too can develop land,” he said in a speech at an event in Kuala Lumpur yesterday.

    http://www.straitstimes.com/asia/se-asia/forest-city-project-can-turn-johor-into-next-dubai-najib

    • The economic activities in the Iskandar zone is primarily due to the high number of Malaysians converging in Johor Bahru, as a base camp to work daily in Singapore and bring in the earned Singapore dollar to generate the multiplier effect in the economy of the state of Johor with their purchading power. But BN can tell the world that Iskandar zone has created jobs for Johorians.

    • Dubai property prices drop for sixth consecutive quarter
      http://gulfbusiness.com/dubai-property-prices-drop-sixth-consecutive-quarter/

      Residential property prices in Dubai fell for the sixth consecutive quarter during Q2 2016, as the market continues to witness a slowdown, according to the latest report by real estate consultancy CBRE.

      Average sales rates dropped 2 per cent quarter-on-quarter and 12 per cent year-on-year, with higher-end and luxury residences witnessing the most significant drops.

      “Prices within the mid-market segment have proven to be far more resilient to this downward rate trend, reflecting the current demand for affordable accommodation in freehold communities,” the report said.

      However, even the mid-market segment saw rents drop in locations such as Al Barsha, Oud Metha and Bur Dubai, “reflecting the higher availability of units in the market.”

      Meanwhile, average residential rental rates during the quarter declined by around 1-2 per cent year-on-year.

      Prime residential locations such as Downtown Dubai and Dubai Marina as well as secondary locations such as IMPZ, Dubai Sports City and International City saw rents decline in Q2.

      The devaluation of major currencies against the US dollar, spurred by global economic uncertainty, has impacted investor sentiment in the emirate’s real estate market, the report said.

      “Amidst ongoing economic uncertainties, redundancies and lower accommodation budgets we can expect to see further softening of demand levels and sales rates in the short-term, especially for higher-end and larger units,” it added.

      Sales rates are predicted to drop further by an additional 3-5 per cent in the coming quarters although some locations may vary.

      Mat Green, head of Research and Consulting UAE at CBRE Middle East said: “It is estimated that around 48,000 new residential units (apartments and villas) could enter the Dubai market during the period 2016 to 2018, provided that construction delays are at a minimal.”

      “This is broadly comparable to five-year average supply. Much of the upcoming housing is expected to be delivered in secondary and tertiary locations such as Dubailand, Jumeirah Village, Business Bay and Dubai Silicon Oasis.”

      Dubai’s property market has been seeing a decline in prices since last year following a sharp rise in rates during the previous years.

      However, several developers have expressed confidence that the market will pick up soon.

      Earlier this week, Dubai businessman Khalaf Al Habtoor predicted that property prices will increase in the “coming months” due to heightened demand for landmark projects in the city.

    • Go to Dubai and see for yourself.
      Are the locals there really the ones that are wealthy?
      Are the locals able to share the wealth generated by foreign investors?
      Or are the foreigners the ones that are benefiting from the liberalisation of their economy?
      What about the elite and high social class? Are they exploiting the lower socials groups?

  12. Last night live on TV3 and Awani Najib and KJ tried to sell TN50 snake oil to the young generation, promising sustainable development.

      • Even when if there is no corruption in 1MDB as claimed by BN, the fact that Najib has lost so much money (hundreds of billions) in his 1MDB venture is enough reason for him to admit failure and resign voluntarily.

  13. China not only buying condos in Penang, and if you Macalister Road durian truck opposite UMNO building you can notice young China tourists can afford RM75/kg mustang king or RM78/kg black thorn durians. Buy buy buy just to take Selfie photos.
    What has happened to vision 2020 M? Catch up or sore loser?

  14. Buy one property in China and get one unit free in Johor Bahru.
    This is how the Chinese developers are capitalising on the building frenzy in Iskandar, as a means for the ORC folks to move their money abroad with ease.

    • Dr M says not against Chinese but mass immigration, cites Trump’s wall
      http://www.malaysiakini.com/news/369993

      Former prime minister Dr Mahathir Mohamad today rebutted accusations that he was anti-Chinese for criticising China’s purchase of land in Malaysia.

      “I categorically welcome foreign direct investment (FDI) from China as I welcome FDIs from any country. What I object to is the kind of FDI from China.

      “It is not about investing in manufacturing industries in Malaysia. It is about acquiring land in Malaysia, building settlements, towns and cities, which are to be sold to mainland Chinese who will come and live here.

      “It is this massive immigration that we object to. If the project is by Indians and a few million Indians are to come and live in Malaysia, we would also strongly object,” he said in a blog posting today.

      Likewise, Mahathir said he would object to mass immigration to Malaysia even if they were Russians, Eastern Europeans, Africans or Arabs.

      Mahathir pointed out that the Europeans too were trying to control the influx of refugees to the continent even though their numbers are relatively small, compared with the European population.

      ” (US President Donald) Trump wants to build a wall to prevent Mexicans and other South Americans from migrating into the US.

      “They have police patrols and guard dogs to keep out these foreigners. That’s how much nations are against mass immigration into their countries,” he said.

      Mahathir has repeatedly criticised the China-led Forest City development in Johor, criticism that earned the ire of the state’s monarch.

      “No one can deny that the development of cities like the Forest City is to accommodate mainly mainland Chinese.

      “They have already bought the properties and are coming by the planeloads to inspect and buy the properties offered.

      “Najib’s boast of attracting more than RM140 billion of FDI from China is all about selling prime Malaysian land for the China Chinese to settle in.

      “If he had gone to India or Africa or Europe and sold Malaysian land for millions of foreigners to settle on, I would still not consider that as FDI. And I think Malaysians would also feel the same about it,” he said.

      Dr M: I’m pro-Malaysian

      As such, Mahathir said it was not about being anti-foreigners or anti-Chinese but it was about being “pro-Malaysian”.

      Mahathir said the entry of powerful China companies would also hurt Malaysian businesses, including those owned by Chinese Malaysians.

      “We have seen the speed and efficiency of the China Chinese builders. They bring in their own workers from China.

      “They can build a five-star hotel, complete with interior decoration and landscaping, in eight months. And they are operating them themselves in the areas they have developed in Johor,” he said.

      This, said Mahathir, was something the Malaysian business community needed to ponder on.

      “They need to think about this and stop talking about being anti-Chinese. I and my friends in the new party (Parti Pribumi Bersatu Malaysia) are not anti-Chinese.

      “We are working with a predominantly Chinese party. Trying to make the Malaysian Chinese reject us is actually trying to support the kleptocratic Najib government,” Mahathir said, in an apparent reference to DAP.

      • Local folks live in PR1MA, will work as servants entertaining the rich foreigners living on expensive condominiums. Is that what Bangsa Johor want?

  15. On the Malaysian front:

    Suicide to buy a house now, says consultant (an honest down to earth consultant)
    http://www.freemalaysiatoday.com/category/nation/2017/01/19/suicide-to-buy-a-house-now-says-consultant/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+FreeMalaysiaToday+%28FMT+News%29

    PETALING JAYA: A property consultant has advised prospective house buyers to wait until property prices come down, saying making a purchase at current prices and in the face of a bleak economic outlook would be like committing suicide.
    Ernest Cheong, who has been a chartered property surveyor and consultant for more than 40 years, said the property market does not exist in isolation and people needed to pay attention to the local and global economic situation.
    He advised the public to shed the widespread belief that only house ownership could guarantee a roof over a family’s head. Families could still live in rented homes, he said.
    “To make matters worse,” he told FMT, “you have so-called property gurus encouraging families to buy homes they may not be able to pay for in the long run, claiming it is an investment since property prices don’t go down.
    “What happens when you can’t afford to pay the instalments and can’t sell the property off, or if rental values can’t cover instalments? You’ll be stuck.”
    Cheong was commenting on the result of a recent survey by PropertyGuru.com.my, which said about 58% of Malaysian buyers were likely to make their purchases within the first six months of this year despite sluggishness in the property sector.
    He said it would be more sensible to rent a house than to buy one in times of economic uncertainty.
    “When you rent, you have flexibility,” he said. “Say you rent a house for RM2,000 and you lose your job or your wife loses hers, you can move to a cheaper place. But you can’t do this if you are servicing a housing loan at the rate of RM2,000 a month.
    “Sure, you could rent out the house you bought and rent a cheaper place to live in, but the question is whether you can find someone to rent your place for RM2,000 or whether you can rent it out at such a rate when we have an oversupply of houses, like we do at the moment.”
    Cheong suggested that prospective buyers make their purchases only if they were confident they could service their housing loans for the entire loan period.
    “The monthly repayment for a home should not exceed 25% of a family’s net household salaried income,” he said. “The other 75% should be reserved for living expenses and, if possible, savings.
    “People must remember that the tenure for a typical housing loan would be 30 years. During those 30 years, the cost of living will go up, while salaries may not rise in tandem.”
    He said housing developers and marketing agents did not appear to want to drop their prices despite the current market glut.
    He noted that rental rates were dropping due to oversupply and urged the public to take advantage of the situation.
    Last year, it was reported that developers had not been able to sell 18,908 of the 81,894 units of residential and commercial properties launched in the first quarter of 2016. The unsold units were valued at RM9.4 billion.

  16. If we still think globalisation is all gold, we will be in for disappointment.
    Look at Brexit, American elected President Trump, & more to come of national self-preservation.
    Call it inward-looking, protectionist, even nationalism.
    The game of globalism is not creating an Utopia as it once claimed to offer. In fact, it created disruptions of economies & currencies, allowed pervious spread of terrorism thro’ immigrants, eroded fair incomes, made the wealthiest 8 individuals far more wealthier than ever, widened income disparity, worsen the environment.
    An era of post-globalisation will come. It’s anybody’s guess what direction & changes it will take.

    There is always Karma to take care of us.

    • Thanks should go to Newtown. For every action there is always equal and opposite reaction. Bark and someone react back

  17. Mahathir articulates what we, too, fear
    http://www.malaysiakini.com/news/369748
    Raja Chulan: I have read the full text of Dr M’s speech he made during the launch of Bersatu. Dr Mahathir has articulated his thoughts very well based on our own history and the world. He is old, very experienced and very wise. His speech enumerates the many problems Malaysians are faced with presently and gives his opinion and advice accordingly.

    It is his advice to all Malaysians, both the Malays and the non-Malays. I did not see any racial or political spin or vested interest in that speech. In fact, as a fellow Malaysian, I am very grateful to Dr M for he is the brave one amongst us to articulate what we too fear, ie the long term consequences of the many reckless and the greedy activities of some of our leaders.

    I am confident that the majority of Malaysians feel the same way too as Dr M and I hope that the concerned parties will heed his good advice in order to save this beloved country of ours, Malaysia from becoming a failed state and being ‘colonised’ yet again.

    RM2.6 Billion Turkey Haram: Much as I dislike Mahathir, I have to say that he has his points. Most of the properties in question are very expensive. As such how many average Malaysians can afford to buy them? No doubt about it that most of them would be sold to foreigners, and right now these are the Chinese.

    The Chinese from China are mopping up choice properties in Australia and Canada. If given the chance to buy properties in Malaysia, the locals would be of no match to them, based on the fact that they could out bid the Australians and Canadians in most of the expensive properties in the market.

    Finally, again Mahathir has the facts right. If they are buying properties to the tune of millions of ringgit, it would be foolhardy to expect them to stay a few months, and stay elsewhere during the rest of the period.

    • Ringgit no value globally hence properties fall cheap to foreigners with stronger currencies.

      Don’t blame these nations. Look inwards and wake up who causes Barang Naik?

      • There are needed measures to curb foreign ‘take-over’ of our nation.
        Is it foolhardy to do so?
        Or we are still drown in sorrows incapacitated in a cheapo Ringgit b’cos of an inward malaise?
        Letting the free market a free rein in an already sorrowful state is not the way forward.
        Unless one prepares to be sorrowful beggars.

      • Wake up call from Mahathir that Tanah Melayu could soon fall into the hand of the PRC communists, given the high number of China developers operating in Iskandar?

      • Man of Elvis era and kerata lembu. Gyrate and love to spin gasing. Ringgit is bigger than Bullock cart wheel

      • The TN50 generation will be paying interests of the massive borrowing and debt of this country. Najib aka MO1 must be living in his own bubble while the rest of the world can see the 1MDB meltdown. So it is quite sickening to see the Dialog Perdana TN50 where MO1 and his youth partner are trying to fool the young generation of Malaysia.

      • The young audience at the live session of Dialog Perdana TN50 could have been pre-selected and fed with dedak in order to make Najib and KJ look good on TV to fool the kampung folks. Wonder why those student activists are not invited.

  18. Globalisation or Nationalism?
    Capitalism or Socialism?
    Liberal or Conservative?
    Free market or protectionism?

    Maybe the answer lies somewhere in between…everyone has a view.

    Well sometimes, ignorance is bliss…

  19. If such activities being curbed, many condo developers in Penang with world vision may get into serious cash flow problems.

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