Summary of New Property Market And Transaction Flow

　In Malaysia, population is increasing and economy continues to high growth,the newly built property are supplied into to the market constantly.There are competition among developer, and recently the number of new property with modern cencept,good sense and excellent facilities is increasing.The merits and demerits of Malaysia’s new property market are specified below.Please refer to it.

Merits

1. When purchasing new project we can choose good unit with good condition.
2. Many new and fashionable development concept & design are available.
3. This is the general direction in Malaysia that the project is sold with lower price when just been launched, and once the project completed the selling price will increase by 20-30%. .We can aim capital gain efficiently if we invest in property at an early stage.
4. Developer will bear the legal fee and offer down payment discount or other incentive (benefit) .Normally,the cost to purchase new property is less than second hand property
5. The payment will be made according to the progress of construction, generally divided into about 10 times ( 5-15% per payment ) in 3-4 years until handover .Finiancial burden per payment is lesser ,so the purchaser can make their long-term financial plan.

Demerits(Risk)

1. There is risk for the incompletion and the long delay of completion for the project.
2. The completed property maybe differ from the image of purchaser had at the time of purchase. Also, the environment and the landscape maybe differ from the time of purchase.
3. The price of square meter for the recent new project is higher than the second hand project. This is the general direction in Malaysia that with same price purchaser can purchase second project in better location compare with new project.
4. Even though it is a new project,the finishing is incomparable with Japan. There may have many defects depending on the developer and the property professional defect check by expert is necessary at the time of handover.
Please refer to the below attachment for the transaction flow and related expenses of new property!

Refer below for the transaction flow and associated costs.

• For Cash Purchaser (PDF file / 149KB)
• For Loan Purchaser (PDF file / 133KB)

• Rental Market Overview and Transaction Flow
• Summary of Second Hand Property Market And Transaction Flow