Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Tuesday, January 1, 2008

12 projects in IDR this year

Meeting the press: Abdul Ghani speaking to reporters during the press conference to deliver his New Year message at Bukit Timbalan in Johor Baru yesterday.

Nusajaya set to start ops by March

JOHOR BARU: Twelve mega projects totalling billions of ringgit are expected to kick off this year under the Iskandar Development Region (IDR), said Johor Mentri Besar Datuk Abdul Ghani Othman.

Among the projects scheduled for implementation are:
  1. The RM4.2bil Node 1 project in Nusajaya;

  2. RM1bil Eastern Dispersal Link (EDL);

  3. The 15km, RM1bil coastal highway linking Johor Baru with Nusajaya;

  4. RM900mil clean up of Sungai Skudai, Segget and Tebrau; and,

  5. RM500mil MSC Cyber City project in Kulai.

“The new state administrative centre in Nusajaya, worth RM1.2bil, is also expected to start operations by March,” he told reporters at a press conference to deliver his New Year message.According to him, among the projects implemented in 2007 were the launch of the RM1.5bil Puteri Harbour and the RM7.8bil Tanjung Bin power plant.

The IDR project was launched in November 2006, but it has taken over a year for the details, including the support and incentive packages for investors, to be finalised.

Abdul Ghani dismissed concerns that a possible recession in the United States would negatively impact development projects in the region, saying that smaller countries would enjoy high growth rates.

“Besides the United States and Europe, everybody is optimistic about economic growth and we expect the world rate of growth to go beyond 6%, even in Africa,” he said.

He was confident the IDR would continue to attract large foreign and local investments in 2008.

He added that projects funded by West Asian investors would be situated in Node 1, about 30km from Johor Baru after the Second Link.The Abu Dhabi-based main developer, Alder Properties, will invest US$520mil (RM1.7bil) to develop a leisure zone, while Al-Nibras 2 Ltd, a subsidiary of Kuwait Finance House, will invest US$330mil (RM1.08bil) to develop the culture cluster.

In addition, Abu Dhabi’s Millinium Development Company will invest US$325mil (RM1.07bil) for the development of the international financial zone.

Meanwhile, the state hopes to be almost squatter free by 2013 through a RM583mil relocation programme that will house around 8,000 squatters presently living within the IDR.

An estimated 2,932 people whose settlements had to make way for the construction of the EDL would be given alternative housing.

Abdul Ghani said RM300mil would be spent to relocate 2,700 squatters from Skudai Kiri and its neighbouring areas to flats near Sungai Melana, behind the Kipmart in Tampoi.

Another 2,450 squatters from Lumba Kuda and Bukit Chagar are expected to get the keys to their homes in Seri Stulang and Pasir Pelangi soon.

By The Star

Worries over price of cement - Builders say automatic price mechanism will raise costs

Master Builder: Cement should remain price-controlled

PETALING JAYA: Two bodies representing builders are worried that the automatic price mechanism (APM) for setting cement prices, due to take effect today, would further increase their cost burden and in turn affect new property launches.

The Real Estate and Housing Developers Association of Malaysia (Rehda) and Master Builders Association Malaysia (MBAM) said in joint statement that “any attempt to further increase the price of cement will definitely affect project costs. Inevitably, this will result in upward revision of prices of new housing and property launches.”

Deputy Prime Minister Datuk Seri Najib Tun Abdul Razak made the announcement on the automatic price mechanism (APM) earlier last year.

The two associations, whose members are the main end-users of cement, said the APM was not in the interest of the industry or property buyers. They called for the scrapping of the APM, saying cement prices should remain status quo.

“Cement is a major and essential component of the construction industry. The country's consumption of cement totalled 19.5 million tonnes in 2006 and it is expected to increase due to the planned developments under the Ninth Malaysia Plan,” MBAM president Patrick Wong said.

On the average, cement and cement-related products such as cement sand bricks, plasters, concrete roof tiles, reinforced concrete piles, concrete culverts, ready-mixed concrete, drainage, among others, comprise 50% of the materials used in a project.

The Government believes the introduction of the APM would give reasonable profit margin to encourage re-investment by cement manufacturers, because prices would automatically adjust to costs.

But Wong, and Rehda president Ng Seing Liong, said “with the APM, cement prices would be revised every four months. And, with regular review, the industry believes there is a high tendency that prices would be revised upwards instead of downwards.”

“Developers and contractors are disappointed that no prior consultation was made with the main players of the Malaysian property and construction industry, consisting of more than 2,000 developers and 60,000 contractors,” Wong said.

According to Wong, cement makers had asked the Government for an increase in prices to offset rises in their production costs and to match prices in the region.

He suggests that for the interim, cement should remain a price-controlled item to ensure that the rollout of infrastructure and housing projects, especially affordable homes, are not affected.

“In the long run, the Government should consider allowing free market forces to decide the price of cement. By opening up the market, market forces will find their own equilibrium and this would cause prices to be more stable,” Wong said.

Ng added that since the price control on cement would create market distortion, in the form of shortages, its import should be allowed.

“As it is, contractors and developers are paying RM10.90 per 50/kg bag effective Dec 1, 2006 when the price before adjustment was RM9.90 per 50/kg bag despite cement operators operating at 60% of capacity,” Ng said.

“Imports would ensure uninterrupted supply of cement. This would also encourage competition and greater efficiency among local cement manufacturers, instead of unhealthy and uncompetitive oligopoly,” he said.

By The Star (by Laalitha Hunt)

Ara Hill’s final phase gets RM50m sales

Petaling Jaya: Sime Darby Bhd’s property division, which launched the final phase of the RM300mil Ara Hill in November, has seen sales of RM50mil over a one-week period for the remaining resort villas and condominium units.

Click here to enter Ara Hill Website

The 16-acre Ara Hill is located within the 762-acre Ara Damansara development.

Group property director Tunku Datuk Putra Badlishah said in a press release that the market recognised the value proposition that Ara Hill offered and appreciated the efforts that had gone into making the project the success it was today.

The final phase comprises 182 resort condominiums and resort villas.

By The Star

Good response to Panareno luxury suits

STRATEGIC: Twins at Damansara Heights offers 318 residential suites

TWINS at Damansara Heights
, a project which offers 318 luxury residential suites, has achieved 50 per cent sales during its recent preview, marketing agent Knight Frank Malaysia said yesterday.

Knight Frank's managing director Eric Ooi said an enthusiastic response was expected at the launch of the high-end residential project on Saturday.

"It is an attractive residential property for both local and foreign buyers because of its strategic location and accessibility," Ooi said.

"We have sold some suites to investors from Europe and expect interest from Singapore and Middle East investors," he said.

Twins at Damansara Heights is developed by Panareno Sdn Bhd, a joint venture of Malaysia's Lion Group together with the real estate investment arm of American International Group Inc, Singapore-based Heeton Holdings Ltd and Koh Maju.

By Bernama

SP Setia unit to lease land to Tenby

SP SETIA Bhd's unit, Kesas Kenangan Sdn Bhd, has signed a conditional deal to lease a piece of land to Tenby Southern Sdn Bhd and to build a school complex on the area.

Kesas Kenangan will build the complex for Tenby Southern, which will operate a pre-school, a private school and an international school that can house about 1,800 students.

Kesas Kenangan's commitment for the construction is limited to RM13 million, SP Setia said in a statement to Bursa Malaysia Bhd.

The 5.6 ha is part of the 379.48 ha to be bought by Kesas Kenangan from Kawasan Mestika Sdn Bhd and Gan Theng Enterprise Sdn Bhd.

The land, which SP Setia plans to develop into an eco-styled township called Setia Eco Gardens, is located next to Bandar Nusajaya in Johor and 5 km from Bukit Indah - SP Setia's first residential project in Johor Baru.

By New Straits Times