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ISSUES AND ETHICS IN FINANCE

ISSUE: PROPERTY PRICES AND DEMAND UP IN PERAK THE STAR

19 SEPTEMBER 2011

The Malaysian House Price Index report by the Valuation and Property Services Department

The Property Market Status Report by the Valuation and Property Services Department

Q1 2011 - 12,189 units of house were launched - 3,491 were sold after 6 months at

28.6% of sales performance.

Q2 2011 - 6,909 residential units were launched - 1,449 units were sold after 3 months at 21% of sales performance.

From The Property Market Status report by the National Property Information Centre, Perak has increased their transaction volume in property at 51.9% against H1 2010.

About 60% of new property launches are located in the Kinta district and other areas targeted are Larut, Matang, Selama and Manjung.

THE INCREASE IN PROPERTY PRICES


Causes:

Project launched by YNH Property Bhd Proximity to commercial area in Ipoh Within the perimeter of the city High construction costs-material costs Higher land cost and bureaucratic compliance fee

THE INCREASE IN PROPERTY DEMANDS


Development and industrialization Purchasing power of the younger

generation

Fear of continuous price increment Buyers from other states

IMPLICATIONS ON RISING PROPERTY PRICES

Middle class income being be less able to buy properties

Newly launched houses left unsold Developers will tend to invest overseas

RECOMMENDATIONS

Assess housing loans gross income


More of My First Home Scheme

Thank You