In order to regulate the outflow of capital and profits, Allstones Group Asia plans to roll-out a ringgit private property fund in 2014, reported The Sun Daily.
“We hope to get it up and running this year. With that, we would have the financial muscle together with our expertise to move into (more special situation projects),” said company Chairman K. H. Sim.
The privately-held firm wants to set-up a ringgit fund because its foreign investors usually take back the capital and profit after a venture has been completed. Unlike in a locally denominated fund, the investment stays in the country.
Meanwhile, Sim believes that Malaysia’s latest property cooling measures will stabilise its real estate market, even though it means slower sales for the meantime.
“In Iskandar, we notice that sales have slowed down and the sales rate has not been encouraging too. We also think that overall, IM will eventually find its own equilibrium and the pricing will become more realistic, except in Medini because that is not affected by the budget,” he explained.
Overall, we will see that the market will be selectively cautious, especially with the tightening of the household debt measures by Bank Negara Malaysia because without debt, the buyer will not be able to buy.
If you are a first or second time buyer, this is a good tiime for you to chooose and select good purchases in Iskandar, especially in Medini and Puteri Harbour.
We hope and think the Iskandar market would bounce back from Q2 2014 when major Medini projects like the Avira and the Sunway Medini spring to life!