Fake property agents scamming renters

Calling for action: Chong (seated, second from left) with Lee (Chong’s left) with the six property agents during the press conference. — LOW LAY PHON/The Star

KUALA LUMPUR: Scammers have now ventured into new territory, posing as property agents to dupe unsuspecting renters in the Klang Valley out of thousands of ringgit, with 10 cases reported so far.

Apart from using the profile pictures of legitimate agents and copying their verification numbers on property sites, the scammers even conduct viewing sessions for clients and later collect rental deposits before going missing when the key handover is due.

Victor Lee, a spokesman representing six property agents whose profiles were duplicated by scammers to create identical accounts on a property site to dupe the public, said they only came to know of this after being alerted by their company.

“However, we were not aware of these transactions taking place using our names. Only after it happened did we realise that there were impostors,” Lee told a press conference held by MCA Public Services and Complaints Department head Datuk Seri Michael Chong here yesterday.

He said checks on the property site would find two accounts of the same agent, with one being fake.

“The contact number on the impostor account also redirects to a private number (which is not ours). Listed property prices in the impostors’ accounts are also lower than market rates to attract clients,” he said.

On viewing sessions conducted by the “agents”, Lee said he suspected the impostors rented the property through online rental sites, thus giving them access.

The scammers, he said, would then collect a three-and-a-half month rental deposit upfront, when the norm is that only one month’s advance rental is collected if the client agrees to the unit.

“The balance is usually paid when the unit is handed over to the tenant,” he said.

He said the deposits were also banked into an account number provided by the “agent” and once the transaction was made, the scammer would immediately block the mobile number of the client.

Meanwhile, Chong said losses from the scam amounted to about RM6,000 per case with approximately 10 cases reported so far.

Most of the scam victims are local and foreign students, he said.

“We want to warn the public about this type of scam and ask them to beware of the mobile numbers used in these cases,” he said, adding that he also suspected the scammers could be property agents themselves as they were well versed in rental procedures.

Chong said they would also hold dialogues with real estate associations to alert them on the matter.

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Syndicate using names of real estate agents

Promising high-rise residential outlook

 

Upward trend due to the strong cost push elements

Khong: The market is still seeing a significant influx of new high-rise units.

THE high-rise residential property market is showing promising signs of growth, despite the influx of new units and prevailing oversupply situation.

Given the land scarcity in the city and its rising construction costs, Savills Malaysia Sdn Bhd group managing director Datuk Paul Khong says high-rise properties will continue to move upwards due to the strong “cost push” elements.

New builds will be more costly to produce and hence, its higher pricing. Rentals will be affected as it is also a function of the capital values of the new units,” he tells Starbizweek.

However, Khong says demand will continue to increase as more urban migrants seek employment opportunities in urban areas.

“Rentals will continue to see strong demand (as many cannot afford to buy and will continue to rent) as they will still need a place to stay in the Klang Valley.

“We are seeing young professionals, expatriates and small families now favouring high-rise living due to affordability factors plus convenience, security and its amenities.”

Khong adds that retirees are also choosing high-rise properties over landed ones for similar reasons.

“Additionally, there is less physical maintenance required for a smaller place,” he says.

“The market is still seeing a significant influx of new high-rise units, but the challenge lies in balancing new supply against an oversupply situation to avoid negative factors on both capital values and rental yields,” Khong adds.

According to Knight Frank Malaysia in its Real Estate Highlights report for the first half of 2024, the high-end, high-rise residential segment in the Klang Valley is currently experiencing significant growth in market activity.

“This upward trend is highlighted by rising sales volumes and an increase in the number of newly launched projects.

“Over the past six months, there has been a concentration of developments in the KL City Centre, reflecting a shift towards investment portfolios, especially with the introduction of return on investment rental programmes.”

Knight Frank adds that the market’s momentum is further bolstered by government initiatives aligned with the Madani economic framework.

Khong says he expects demand for prime areas to pick up well, such as the KLCC and

Trx-bukit Bintang areas, which caters primarily to high-income earners and foreign expatriates.

“Many properties in the Golden Triangle area have been converted to short-term stay units targeting tourists for lucrative rental returns.”

Khong adds that high-rise projects in well-connected areas are also expected to see stronger value appreciation and higher rental returns, in particular properties near transit-oriented development zones, especially near new MRT and LRT expansion lines.

“Established residential areas like Damansara Heights and Bangsar should also continue to perform into the rest of 2024,” he says.

Meanwhile, down south in Johor, veteran property analyst Samuel Tan says the high-rise residential sector will perform better in the next couple of years, especially those that are easily accessible to the two causeways and near the Johor Baru Singapore Rapid Transit System (RTS).

“Reasonably priced highrise apartments away from the centralised location but within established localities, will perform better moving forward.

“This is because landed residential properties are getting very expensive and beyond reach for most first timers.”

Additionally, Tan says many overhang units that accumulated during the Covid-19 period have been cleared.

“The supply-demand dynamic is not skewed towards the buyer’s market anymore. Having said that, we also noticed that developers are “rushing” in to capture the upturn.

“We opine that it is advisable for developers to read the market carefully and buyers also need to do their homework, before plunging in.”

Knight Frank meanwhile says the highrise residential sector in Johor Baru has seen improvements, marked by the launches of new projects that have attracted significant interest.

“Purchase inquiries have been increasing, particularly for high-rise developments near the RTS link project.

“Moving forward, we expect the projects located near the city centre to maintain their upward trajectory, while others are still experiencing positive effects from the ripple.”

Improving rentals

Khong says rentals have been recovering post Covid-19, especially in areas such as in Bangsar, Mont’kiara, Bandar Sunway and Shah Alam (especially the Glenmarie area).

“Notably, Bangsar and Bandar Sunway have surpassed their pre-covid levels, but we see rental tension with the increasing new completions in Petaling Jaya and Subang Jaya.

“It is a tenant’s market and they are spoilt for choices, given the many new offerings with more modern lifestyle concepts, better locations and more attractive amenities moving forward.”

Khong says KLCC still remains on the recovery path.

“We hope the current relaxation of the Malaysia My Second Home programme will enhance the government’s efforts to move Kuala Lumpur city as a world-class business and entertainment hub, attracting more foreign investors and tourists.”

Khong says there are still strong fundamentals that are driving positive rental performance in high-rise residential properties.

“This is despite higher cost-of-living due to the increased service tax now, diesel subsidy rationalisation and the expected RON95 subsidy changes, as urbanisation trends, strong demographics, population growth and the constant migration of the younger generation to urban areas will support this rental demand.

“Upcoming infrastructure projects such as the MRT and LRT expansions are set to enhance the connectivity and desirability to many of such locations. This continues the strong and positive trend in the rental market moving strongly forward.”

Similarly, Tan says he has witnessed improving rental trends for high-rise properties in Johor.

“We do not have official data for rental transactions. However, we know that rentals have been increasing since the reopening of borders in the second quarter of 2022.

“The increase over the past two years was easily 20% to 25% per annum for serviced apartments in the Johor Baru city centre and Iskandar Puteri area.”

Tan says the demand was mainly from Malaysians working in Singapore initially.

“Subsequently, more Airbnb operators also leased these high-rise units when tourists started streaming in.

“More Singaporeans are also renting in Johor Baru to stretch their dollars, especially those who can work from home.”

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Have property scams grown in the pandemic?

Is this the biggest property scam ever? | 60 Minutes Australia

 With more real estate businesses moving online, it is easier than ever for fraudulent transactions to occur.

 

Home buyers should verify the authenticity of the real estate practitioners they are dealing with

By Yanika Liew

If you are new to the property scene, dipping your toes in can feel like taking a dive. It can be intimidating to wade through stories of digital impersonations, stolen deposits and backdoor deals. The digitalisation of commerce has skyrocketed as a result of the pandemic. Enterprising companies are launching platforms for their services in a changing market and property is no different. With more real estate businesses moving online, it is easier than ever for fraudulent transactions to take place.

Take the recent cases in Singapore where scams involved convincing victims to pay a home-viewing deposit to secure an appointment. Armed with unregistered identity cards, scammers impersonated property agents by sending a picture of their credentials to the victims. There are multiple instances of scammers uploading fraudulent listings on websites. By the time their victims realise they have been duped, it is already too late.

“Scammers use technology and social media to reach out to prospects more easily. It is very disturbing and there is very little anyone can do to help buyers and sellers who have been cheated by unregistered estate agents or unregistered real estate negotiators,” Malaysian Institute of Estate Agents (MIEA) president Chan Ai Cheng said.

Real estate transactions are a gold mine for scammers, as the process involves large amounts of money being transferred to another account. Scammers can create fake online websites to get customers to bank in the money to them, Propnex Realty chief operating officer Evon Heng commented, who is also MIEA secretary-general.

According to both Chan and Heng, many transactions involve collecting a deposit in a sale or rental, and this money is kept by the individuals. It is a very common case for scammers to abort the deal without returning the refund, causing the buyer to lose out on the deposit. Whereas a registered agent is required to transfer any and all deposits to an account managed by the firm, under the client's name. This ensures that the buyer is protected by the law should anything happen, significantly reducing the risk of exploitation.

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“Scammers use technology and social media to reach out to prospects more easily,” Chan said.

Another common scam involving property is the sale of a project that is non-existent, such as the scam promising victims affordable housing. Scammers claim they have access to units from a high-demand affordable housing scheme, without complying with the eligibility criteria.

While there are instances of affluent victims being caught up in these scams, Chan reports that a majority of property scam victims are in the B40 category, the second being the M40. These groups are less aware or experienced in real estate matters. Similarly, those located away from the city, in small, rural towns are disproportionately targeted. These areas are especially vulnerable due to fewer safety nets available. With B40 families having fewer resources than other income groups, they have more to lose and fewer pathways to receive support, whether from authorities or their community.

So who do you have to watch out for? Chan outlined a framework the public can use when identifying these scams.

“The case of scams defined as defraud or embezzlement in an estate agency transactions is predominantly by illegal brokers as they are not regulated by law and also because they need not operate via a firm,” Chan said.

Real estate practitioners are required to follow strict guidelines when advertising, which include the practitioner’s real estate negotiator (REN) or real estate agent (REA) number and the registration number of the firm they represent. This is crucial information that the public can use to verify with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEA). Those who are unable to present proper paperwork should be questioned. Chan also warned the public against real estate practitioners who pressure their clients into financial commitments, more so when they seem to be withholding information.

What can you do?

When you realise you have fallen for a scam, the first instinct is to panic. MIEA reported that one of the barriers to victims coming forward was the embarrassment they faced when they admitted to falling for a scam. Particularly in regards to transactions that do not involve a large sum of money, victims seldom choose to confront the situation.

Regardless of such inhibitions, Chan recommends victims lodge a report to the police. If the scam involves a housing development, victims should lodge a report with the Ministry of Housing and Local Government (KPKT). These reports will be able to provide authorities with data, assisting not just yourself, but future victims. In order to warn the rest of the public of such instances, she added that victims could contact the press for further outreach.

 

 “Research and verification are vital for any transaction or purchase,” Heng said.

Homebuyers are encouraged to work only with registered RENs or REAs, whose authenticity can also be verified via a written authorisation from the owners of the property being sold. In the case of homeowners eager to rent or sell their property, reach out to professionals rather than appoint an unregistered broker, even if it is someone you trust. Especially when making deposits, ask yourself these questions; could it be an individual’s bank account you are sending your money to? If it is a company, is it a registered one?

“By no means it’s all safe and well, dealing with registered persons but at least they are known, the regulatory bodies are able to take more immediate action or even deregister them, there is accountability when one is registered,” Chan said.

As more and more Malaysians become comfortable handling transactions online, their vigilance begins to diminish. 

“Not only are property scams more prominent, but other scams are also. Research and verification are vital for any transaction or purchase,” Heng said.

She noted that the digitalisation of real estate created other challenges for homebuyers and estate practitioners. Many people enjoy visiting the unit itself or its sales gallery when looking for property. These are preferences that will be easier to accommodate with the easing of Covid-19 pandemic restrictions, but the trend of digitalisation is not likely to falter in the coming years.

As the property industry continues to evolve, there will be new challenges for all stakeholders involved. Learn more about protecting yourself in real estate transactions by visiting MIEA’s public awareness campaign, via www.instagram.com/myrealagents/ 

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