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Property Prices – PRIMA should help, IF.

“If a PR1MA house only cost around RM250,000, who would want to buy a house from a private developer who fixes the price between 20% and 40% higher? This is the view of Rahim and Co Chartered Surveyors Sdn Bhd chairman, Tan Sri Abdul Rahim Rahman. Personally, I do not agree totally because I have not really see that many of these PRIMA homes at RM250,000 but I think if PR1MA homes really do flood the market in the near future, his assessment would be quite valid. In fact just like he said, PR1MA home prices acts as a stabilising effect. This is something like forcing the developers to be much more competitive for the similar ranges of properties.
It depends very much on where these properties are located too because if PRIMA is built only in matured areas, I seriously do not think the existing owners there would want to sell any lower than PR1MA’s prices. He also said that “With PR1MA, prices for affordable houses will not go up in a spiral manner in future,”.  Personally the spiral manner in which property prices went up should not repeat itself. I always feel the only reason why 2009 to 2013 was a different period was because that was when the Malaysian property market starts to become more mature. Before that, the prices has always been pretty ‘sleepy’. The current prices meanwhile is already pretty reasonable and if it should go into another spiral, I would choose to step out of the property market. Just look at the prices versus affordability of the typical man on the street. Do you seriously think prices can go up in a spiral again?
PRIMAMany of my friends remain skeptical of PR1MA and I can understand why. They feel that PR1MA is merely a propaganda as they have yet to see that many units being offered to the market. I think they are partially right. Unless PR1MA units are becoming common, it will always be just a plan. If only the transparency of everything from number of units to number of applicants to numbers of upcoming units can be available every month, that would really help tremendously. Please take the HDB of Singapore as a benchmark. These days, online and technology can help a lot. Anyway, if you should need to refer, this is the PRIMA site.  http://www.pr1ma.my To those who qualify, I personally think you should register. PR1MA homes are not aimed at flats or low cost, they are aimed at affordability instead.
written on 31 Jan 2015.
Next suggested article: PR1MA – 90,461 housing units for middle-income Malaysians – HOW?
 

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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