An Examination of Government Policy Effects on Brunei Property Market

This report examines the impact of recent government policy changes on the property market in Brunei. It begins with an overview of the real estate sector, highlighting its importance to the national economy and the increasing interest of foreign investors. The report outlines the research aims, objectives, and questions, focusing on how governmental strategies, legislations, and market dynamics influence the property sector. A literature review explores the current state of the Brunei property market, trends, and the effects of legislation and policy shifts. The methodology section details the research philosophy, design, and data collection methods. The data analysis chapter presents findings from primary research, followed by conclusions and recommendations. The report seeks to evaluate the effectiveness of policy changes and their impact on buyers, sellers, and the overall market, providing insights into the evolving landscape of property investment in Brunei.

IMPACT ON THE
PROPERTY MARKET
DUE TO THE RECENT
CHANGE OF
GOVERNMENT
POLICY IN BRUNEI

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................4
1.1 Overview...............................................................................................................................4
1.2 Research Aim and Objectives...............................................................................................5
1.3 Research questions................................................................................................................5
1.4 Focus and purpose:................................................................................................................6
1.5 Potential significance............................................................................................................6
1.6 Frame work analysis............................................................................................................7
1.7 Structure................................................................................................................................8
CHAPTER – 2: LITERATURE REVIEW.........................................................9
2.1 Introduction...........................................................................................................................9
2.2 Situation of property market in Brunei.................................................................................9
2.3 Current market trends in property market in Brunei...........................................................10
2.4 Effect of legislations on the property market in Brunei......................................................13
2.5 Effect of government changes in policies and procedures in property market of Brunei...14
CHAPTER- 3: RESEARCH METHODOLOGY ..........................................16
3.1 Introduction.........................................................................................................................16
3.2 Research Philosophy and Approach....................................................................................17
3.3 Research Design..................................................................................................................18
3.4 Research Approach.............................................................................................................18
3.5 Research type......................................................................................................................19
3.6 Data collection....................................................................................................................19
3.8 Data analysis.......................................................................................................................21
3.9 Validity and Reliability.......................................................................................................21
3.10 Research limitations..........................................................................................................22
3.11 Ethical considerations.......................................................................................................22
..................................................................................................................................23
CHAPTER- 4: DATA ANALYSIS................................................................23
4.1 Introduction.........................................................................................................................23
4.2 Analysis...............................................................................................................................23

CHAPTER :5 CONCLUSION AND RECOMMENDATIONS...................................................36
Conclusion.................................................................................................................................36
Recommendations.....................................................................................................................36
REFERENCES..............................................................................................................................37
APPENDIX....................................................................................................................................40

CHAPTER 1: INTRODUCTION
“Real estate is a concept which involves a property that consist of building and land on
it. In addition to this, it also consist of natural resources such as crops , minerals, and water etc.
The business of real estate means getting involved in the buying and selling of property.”
1.1 Overview
In this era of modern world, the business of real estate is on the hike. Property market
comprises of the field of real estate and its related aspects(Aggarwal and Urata., 2016). It can
be said that the real estate is the property which is consist of land and other buildings build on it.
Also, it involves the natural resources like minerals or water, crops etc (Brunei money flying to
overseas realty market, 2017). property market is considered as the legal term which is used in
the judicial system of a particular country(Basri 2016). It can be further stated that it is one of the
business which increases the economy of a country across the world. Property market is a
concept, which involves the buying , selling and renting of holding or a land and buildings by a
person(Benvenisti, 2015). In this concept it can also include that property market consist of
various brokers which are involved in this business to make it more effective(Corben, 2015). It
can be further noted that the effective market research can be considered as a crucial part as it is
a obligation for the successful and profit making development and disposal of property(Dillon,
2013). A proper understanding of the area of the property market will enable an individual to
ensure regarding the new schemes and strategies and other related policies which will enable an
effective development. Personal property market is also one of the type of property
market(Elliott and et. al., 2016). It can be noted that the property industry is heavily regulated in
the country(Elms and Lim., 2012). It consist of different brokers , real estate agents which are

entitled to earn a commission from the proprietor of the real material possession(Elms and Lim.,
2012).
One notable fact is that the real estate business involves two types which can be
characterised as commercial and residential real estate. Also, there are various laws and
legislations framed with respect to the effective and legal regulation of the property
market(Forrest, Koh and Wissink., 2017). It can be seen that there are several aspects that are
related to property rights conferred which can be referred like Rights are separable and
integrated with the mechanism of market and rights can be changed according to
preferences(Haila., 2015).
This present report focus on the main issue of the impact of change in government policy
on the property market in Brunei. Brunei is an Asian country which is situated near by
Malaysia(Harbour and et. al., 2012).
It is the country which is placed on the north coast of an island in South east Asia. It is a
sovereign state(Hudson., 2012). In the said country which is ranked fifth across the world in
terms of GDP per capita at purchasing power parity. In the recent years it has been said that
foreigners found their interest to invest in the property market of Brunei. Buyers of land can only
lease the land by taking prior approval of Head of state(Hughes and Lucas., 2016). Although, the
government of Brunei has evolved various strategies that will enhance the investment in the
property market in respective country (Changes in property ownership laws affect real estate
market in Brunei , 2017). The government is trying to stimulate the economy so that many
options can be available to its investors.
1.2 Research Aim and Objectives
Aim: To identify the impact of changes in government policies and strategies in the
stream of property market.
Objectives: The main objectives of conducting this approach can be comprehended as:
 To evaluate the changes that are introduced by alteration of strategies of government so
as to enhance the property market area in Brunei.
 To analyse the effectiveness of change in Property market in Brunei.
 To have a close scrutiny of the impact of new legislations and laws framed by
government of Brunei in order to increase the efficiency of property market in said
country.

 To assess the nature of purchasers of property market after changes in the rules and
regulations by Government of Brunei, in order to improvise the quality and market area
in which real estate operates.
1.3 Research questions
There can be several questions that can be framed in respect of this research project.
These can be summarised as :
Question:1-- What changes did the government of Brunei made in policies and
strategies in respect of property sector ?
Question:2-- Did laws and legislations are effective in regulation of property market?
Question:3-- How does it impact on the behaviour of purchaser after modifications in
property market?
1.4 Focus and purpose:
Focus:
The main focus of the stream of research is to identify and evaluate the changes which
has been brought by the government of Brunei in its property sector, by changing related
policies and procedures. Property area of Brunei is considered as one of the highest source of
earning revenues in the view point of government. Research in Property market of the said
company is very wide research area, which requires varied range of methods and techniques. So,
to make the research report about specific, the consequence of alterations in the governmental
policies in respect of property market has been highlighted. Also, with reference of this, effect
of legislations framed in respect of trenchant policies of house market or real estate in the
country of Brunei has been discussed.
Purpose:
It is the concept which involves the main reason of conducting this research. It can be
noted that the if there will be effective implementation of the governmental policies and
procedures in property market, it will develop the market opportunities for n number of buyers
and sellers . It will also enable the government to evaluate the future potential growth inn the
economy of Brunei.

1.5 Potential significance
The current research has been conducted with a perspective to evaluate the effect that has
been brought in the line of reasoning in light of property market area. It can be signified that it
can be effective in regard to enhance the property market in Brunei. Also, it can enable the
purchasers of the land to lease the land with out the permission of Head of state. Further more,
the ways in which the government of Brunei can strengthen their finance in order to make their
property market more strong has also been discussed. It can also be stated about methods in
which the government of Brunei can solve their issues related to social and political issue. In
addition to this, the their effective plan has been framed in respect of driving economic and
social growth of country. Investment in the real estate property can lead to over all development
of the country. It can be significant in various terms and line of focus. It can be summarised as
by the changes in the policies and procedures, it would be easier for people to invest in real
estate business. Further more, this research will also enable the potential development of the
property sector of the respective said country. It can be further noted that the business
organizations can also work for the betterment of the society. It can be summarised as the
changes in the policies will effect the potential buyers and sellers who wishes to invest in the real
property of the said country. Also the significance can be judged in the terms of positive impact
on purchasers , manufacturing industry , sellers and other financial institution in Brunei.
It can be further noted that the changes in the policies and strategies in the context of
property market Brunei, it can be beneficial for the purpose of loan application from banks and
other financial institution.
1.6 Frame work analysis
This section of the report is consist of the factors which are related to the steps
comprising of steps and process in which the research will be conducted. Following techniques
and methods are applied while disposing the current research:
1. Research design: It is the concept in which the process and steps applicable for the a
research has been applied. In this present research report, descriptive form, of theory has
been adopted. It will be useful in determining the effect of changes in property market
rules and regulations.

2. Research Philosophy: It is the concept which enable and help the person who is
conduction the research, by acknowledgement of a particular pattern of enquiry. In this
concept, theory of Interpretivism has been adopted.
3. Research approach: It is a term in which it has been inserted in the report so as to adopt
a particular set of theory to research a particular thing. It can be further noted that in this
report, inductivism approach has been evolved.
4. Data collection method: During the research process, data from primary sources has
been collected and applied in appropriate places. A questionnaire has been prepared in
respect of the identification of effect, with the open and close ended questions.
5. Sampling techniques: Selection of techniques which are simple and random in nature
has been attained. It is useful as to attain effective knowledge by picking up a segment of
random group of people.
6. Data analysis technique: To conduct this research, qualitative technique of data
analysis has been used in this report. It can be further noted that there are various
techniques which are formed in respect of the data analysis.
1.7 Structure
This section consist of the proper sequence which involves the proper structure in the
report which can be explained as :
Chapter 1: Introduction-- this section covers the overview of the topic and the concerned
related other methods.
Chapter 2: Literature review-- In this section subject matter of related authors has been
discussed. It will explain regarding the changes in policies and their effect in the currency
market.
Chapter 3: Research methodology: In this section of the present report, it explicates
about different and varied methodologies that are used while research. Also, it highlights
objectives and aim of research with data collection techniques etc.
Chapter 4: Data Analysis and Findings: This section of report signifies the data and
other aspects for the intent of primary research.
Chapter 5: Conclusions and recommendations: It is the last section of the report.
Various conclusions and recommendations which are required in the end of the project. It can be
arise due to appropriate aggregation and accumulation of the facts and concepts.

CHAPTER – 2: LITERATURE REVIEW
2.1 Introduction
In this modern era, it has been evaluated that the property market is considered as the
most important source which is highlighted as it is one of the factor which is responsible for
increasing and developing an economy(BHATT and et. al., 2015). In the context of Brunei, it has
been evaluated that property market had several flaws and other negative points. Investors did
not want to invest in the real estate properties(Brown., 2013) . With the change and
modifications in several policies and procedures, it can be concluded that it brought a positive
change in the economy of country(Cheung., 2016). In this report it has been analysed that it can
be considered as developing factor in the terms of changing nature of buyers and sellers etc.
Also, it can be held in this present report that increasing interest in the property sector leads to
the over all development of the country(Cleary and Wong., 2016).
2.2 Situation of property market in Brunei
As, it can be seen with a view of Connolly and Bell., (2010) that property market is seen
as one of the source which can be seen as the hiking factor of the company. It can be seen real
property is the property which can be seen as a concept of buying and selling of land and
buildings by the seller to willing buyer. Also, with the changes in the property market in the said
country, it can be concluded that it will effect the company in a positive manner. In addition to
this, in Brunei, there is an effective allocation of the existing existent belongings and its
resources and other interests. It is so because the resources are limited and these are required to
be distributed among various uses and people who are desirous of claiming it. In accordance with
the opinion of Karaganis., (2011) There are many characteristics of real property that can be

classified as technical characteristics, economical features and other financial characteristics. In
accordance with the rules and regulations formed in the aspect of Property market in Brunei, it
can be seen that mortgages are treated and implemented in Brunei. This means that only the
citizens of Brunei can own a property in their country. In addition to this, the foreigners and
other persons can only liable to hold the properties under the long term time duration. In
accordance with a view point of Lawrey and Pillarisetti., (2011). It can be seen that the banking
institutions in Brunei refuse to provide the loan and other long term lease to non citizens of
Brunei. In accordance with the amendments and alterations in the land code , it has been banned
in practice. Also, it can be seen that the power of attorney and trust deeds are not considered as a
medium to effect the transaction related to land and property. Also, it can be noted that the
property market in Brunei has seen recent developments as demand for real estate property has
seen developments in their stream. In the view point of Marron and et. al., (2010) the prices of
real estate property has also seen major developments in the prices of real property so that they
can make their property business more effective.
The property market in Brunei has seen as the a development since recent decades. It is
due to the reason that the demand for the property market in the city of Brunei which lead to the
development and growth of the business organizations which lead to the over all success and
enhancement of the economy of Brunei (Property Prices in Brunei, 2017). In accordance with the
viewpoint of McEwin., (2011) it can be said that there are various investments which would have
been seen as effective but now these are considered as the highly demanded investment.
Also,since last three years there has been a noticeable increase in the prices of the real estate
property of Brunei. Moreover Monkkonen., (2016) says that Government also play an important
role in conducting the real property market in an efficient manner.

2.3 Current market trends in property market in Brunei
It can be evaluated that there are many changes in the current trends in the property
market in Brunei. In accordance with the Palit., (2013) it can be evaluated that in the year of
2015, growth and expansion in the real market sector in Brunei has been increased. But now in

the year of 2016, the property market in Brunei has experienced a major fall in their operations.
It can also be stated that forecast in respect of the Economic aspect, there is a hike in the real
estate market by 2%.
Also, it has been said that there are various aspects which affect the proper market in
Brunei. The property market in the cited country is all set to be impacted by the lower energy
prices of the economy and also the budget is also expected to be get impacted by the state and
related enterprises which can be estimated as around 70% to 80%.
Moreover, according to the surveys, it can be evaluated that credit has also been given to
the real estate market in 2016 which keep on arising at the rate of 3.6% year on year, with
finance increased from BN dollar 1.38bn . Also, underestimating the importance of the property
market , residential loaning accounted for 23.4% in last year of the debt of household. In
accordance to the survey it can be evaluated this particular category is considered as the second
highest category after personal financing.
Further more, in accordance with the viewpoint of Port., (2013) after settlement of
economy in the context of the real state , it has different key sector which can impact the
potential growth. It can also be stated that the financing in the sector of over all growth it can be
said that there are various aspects of the property market that leads to the development in the
country. Also, Brunei has also experienced a rapid change and growth in the perspective of the
real estate property market, particularly in the stream of sole purpose improvement. Various
property developers from Singapore, Malaysia, Australia and UK as well are now interested in
the property market of Brunei fro making a tie up with the local market developers, so that they
can develop market in the context of international market.
Also, in the opinion of Pow., (2017) it can be said that there are various changes in the
property market since long time. The people residing over there are of opinion that investing in
the property market is not significant as the prices never rise of property there in. On the
contrary to this, like a second side of a coin, it can also be evaluated that there are a lot of
potential and willing investors who wishes to invest in the property of Brunei. The main aim of
the real property management system of country is to make and motivate people to invest more
in the property market of their country. Along with this, they have set the target to raise the
percentage of 6-8 % per annum for the property especially the residential property. In the case of
not getting enough return then, it is required to accomplish the effective management system.