My personal opinion is this. If buyers are buying for the first time in their life, support should be given to them. I am not so sure about how genuine they are in buying and staying in their first home but without one property, these people may continue to lag behind others because by the time they really wanted to buy one unit, they may no longer be able to afford one unit. Developers should not allow bulk buys. Except for the part where they can sell their properties faster, there’s just no reason. Of course, they may say it’s high risk if they are selling one by one but that’s a very lame excuse. If you know your property is not the most amazing one, why price it so high and get bulk buys so that it can be sold fast?
Recently in a news article, Malaysian Institute of Estate Agents and consumer groups urge the government to ban bulk property purchases as this could potentially inflate prices and deprive first time buyers from buying their first home. Federation of Malaysian Consumers Association (Fomca) president Datuk Paul Selvaraj said bulk purchases of property should be banned as there was an urgent need for affordable housing, especially in the Klang Valley. To him, bulk buyers are ‘property speculators’.
National House Buyers Association secretary-general Chang Kim Loong said he is a link between cash strapped developers and investor clubs and this is ‘property insider trading’. How it works is that these clubs purchase the majority of available units before the developers sell the remainders at trumped up prices and later the club would release the units bit by bit.
Malaysian Institute of Estate Agents (MIEA) deputy president Erick Kho said bulk-buying has turned a need into a business and this created a fake scenario of demand and supply. The buyers of these bulk units would negotiate with the developers for a certain discount for bulk purchases. Most of the time, these buyers usually group together and targeted properties attractive to first time buyers within the popular RM300,000 – RM500,000 range which they can then inflate the prices from five percent all the way to 15 percent.
I think one significant point missing is on the regulation part. Truth is, the identity of all these bulk buyers area already known. Just follow them and if it is proven that they are doing bulk buy, stop them. Personally, I have thought of buying two units, combining them into one unit so that I have a bigger unit for a more comfortable stay and I want my brother and family to stay with my parents and myself too. However, I could not see the reason to buy 4 units other than to hold and sell for profits later, at the expense of genuine buyers. If you want to speculate, go to the share market.
written on 10th Sept 2014
Next suggested article: Property market is slowing. Agree. However, there are today MORE interested people.