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What’s Next 2015?

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Alex J Gomez,
CEO,
AJ Land

homefinder: What do you think the market is going to be like in 2015?

Alex J Gomez: Volatile; especially with the impending advent of GST. Most people are a bit cautious when they talk about the GST and how it’s going to affect costs. It’s a guessing game now with some saying price of properties may go up by 2 to 3%. I personally think it will be more than that taking into consideration the rates for the past years. Vendors will try to pass additional costs to the purchasers, which gives an increase to a whole gamut of things.

Assuming a crisis is indeed coming, what are some of the measures you can suggest to avert from this crisis?

Postpone the implementation of the GST. The Malaysian public is not mature enough to understand the implications and unscrupulous people will be taking advantage of the situation.
State Governments must be prudent enough to look at the costs that developers have to bear in building homes and review their charges which are exorbitant in some cases and ensure that developers build affordable homes minus GST. This can be done; it is the will of the State Government.

What remains a good proposition for the property market?

Residential, but must be cautious as more supply than demand is the norm now. The gated & guarded concept is most sought after by the middle aged upwards. Location is always close to amenities and racial mix.

What is the strategy for an investor to approach the market?

Study the growth patterns and return on investment. For example look at properties around educational institutions.

Your advice for buyers who acquire for own dwelling?

Closer to place of work or proximity to public transport coupled with amenities like schools, medicals etc. for the whole family.