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Friday, February 5, 2010

HwangDBS stays positive on Malaysia property sector

The research house's top picks include SP Setia, Eastern & Oriental, DNP Holdings and Sunrise.

HwangDBS Vickers Research Sdn Bhd remains positive on the local property sector with top stock picks including SP Setia Bhd, Eastern & Oriental Bhd, DNP Holdings Bhd and Sunrise Bhd.

The research house said there were several myths surrounding the property market, such as a rise in interest rate is a negative sign and that property sales strongly correlate to interest rates.

"The overnight policy rate rises would likely be gradual (2010 forecast: 75 basis points) and unlikely to recoup the cumulative 150 bps cut from November 2008," it said in a report yesterday.

Mortgage rates may not rise in tandem given the intense competition among banks and every 25bps rise would increase monthly instalment by 3 per cent.
Secondly, property sales are driven more by economic outlook, income growth, windfall gains from share market or commodities and policy changes.

Therefore, sales should be robust as long as banks are willing to lend. Developers could also offer more attractive products or incentives to stimulate demand.

Finally, the myth that there is a property bubble in Malaysia is inaccurate as property prices here have been appreciating at a much slower rate compared to income growth.

"There is limited hot money as locals make up more than 90 per cent of total sales. High-end property prices in KLCC and Mont' Kiara are still 20-30 per cent below peak, unlike Singapore and Hong Kong which have set new benchmarks," the report said.

It also said that household gearing levels remain at a comfortable 42 per cent while mortgage non-performing loans have inched lower to 4.2 per cent compared to 5.6 per cent in 2008.

By Business Times

MSL sees full Wangsa Maju mall occupancy in 2 months

PROPERTY developer MSL Properties Sdn Bhd expects its newly-opened shopping mall in Wangsa Maju, Kuala Lumpur, to be fully occupied within two months.

Dubbed "Wangsa Walk Mall", the RM100 million mall opened its doors in September last year and now records some 5,000 visitors a day and 15,000 visitors on weekends.

Its visitors are mostly residents from local and neighbouring communities.

"The mall has a 96 per cent occupancy now and we will sign in the remaining 4 per cent soon," said retail mall general manager Foong Meng Khum.
He said the company is expecting an annual yield of between 5 and 6 per cent from the mall.

The Wangsa Walk Mall was officially launched yesterday in a ceremony officiated by Minister of Federal Territories and Urban Well-Being Datuk Raja Nong Chik Zainal Abidin.

The mall aims to serve as a leisure and activity centre for the local community and is equipped with a 400m walking and jogging track around the complex.

MSL Properties has secured Cold Storage as an anchor tenant for the mall, while the mini-anchors include TGV Cineplex, Popular Bookstore, Celebrity Fitness, a family entertainment centre, a household and electrical goods outlet and a food court.

According to earlier findings used to determine the feasibility of the project, over 210,000 people - 51 per cent male - are within a 10-minute radius, of which 24 per cent are under 19 years of age and 39 per cent in the 20- to 40-year-age group.

By Business Times

E&O anticipates good sales for Quayside condominiums

GEORGE TOWN: E&O Bhd anticipates sales of between 40% and 50% of its Quayside seafront luxury condominiums in the next one to two months after its official launch last Sunday.

E&O managing director Datuk Terry Tham said at least 110 units or 30% of the 298 units of the first block have already been booked by prospective buyers since the soft launch of the project.

The 1,200-unit project with a gross development value of RM1.8 billion is located within the Seri Tanjung Pinang development and touted to be on par with the world’s elite waterfront communities like Australia's Sovereign Islands and Sentosa Cove in Singapore.

Quayside will be located on 21 acres of prime seafront land and is said to be the first development in the region to create a sprawling RM20 million 4.5-acre waterfront park exclusively for residents.

The development consists of seven blocks of condominiums, five of which are high-rises of 26 storeys and 298 units per block, while two are low-rise with seven-storey blocks of 51 units each.

On Phase 2 of the project, Tham said a masterplan, including environmental process for the reclamation works, was ongoing.

"We have a timeline until 2017 when the concession for reclaiming 740 acres ends and we will work towards that goal," Tham said during a media briefing with Quayside consultants Cynthia Jacobs, the vice-president and managing director of WATG Seattle, the Quayside concept master planner; Jerry Coburn of GCH Seattle who are the landscape architects; and security expert Richard Dimmick the managing director of GDSS Malaysia.

Also present was E&O's executive director Eric Chan Kok Leong.

Chan said the Seri Tanjung Pinang project would be the new Millionaires Row in Penang, withthe prices of PROPERTIES [] launched in the earlier phases now being valued above RM1 million.

"It will be the upscale enclave of Penang, the likes of Damansara in the Klang Valley, as it is lifestyle living in the city with its own marina and other amenities," Chan added.

Meanwhile, Tham said E&O has scaled down the height of the annexe of the E&O Hotel from the original approved plan of 28 storeys to 15 storeys and that it would be completed by 2012.

Tham said the RM150 million project was initially scaled down to 17 storeys after it was said to contravene Unesco heritage guidelines for George Town, and now it has been reduced further.

The annexe will have 139 suites, bringing the total number of suites to 240, with more restaurants, retail outlets, a podium and larger swimming pool with extensive meetings and banqueting facilities.

Meanwhile, Tham said the RM50 million upgrading works of E&O's Lone Pine Hotel in Batu Ferringhi would be completed by end-2010.

The hotel was closed down in April last year to facilitate the upgrading exercise, which will see the number of rooms increased from 50 to 90.

By The EDGE Malaysia

RM500 million Aeon Melaka now open

MELAKA'S biggest shopping centre, the RM500 million AEON Bandaraya Melaka, opened its doors today.

The soft opening was officiated by Chief Minister Datuk Seri Mohd Ali Rustam.

The shopping complex, spread over approximately 126,162 sq m (1,358,000 sq ft), was originally scheduled for opening on Dec 17 last year. The opening was rescheduled due to a gas explosion mishap at its food court area, three days before the opening, which killed two workers and injured 20 others.

AEON Co (M) Bhd has since taken the necessary measures to upgrade work at the affected food court section and this is due for completion by next month.
"We are ready to commence business by providing shopping comfort and convenience," the company said a media statement.

Its Chairman, Datuk Abdullah Mohd Yusof, has targeted an annual turnover of between RM150 million to RM200 million for the shopping complex.

Meanwhile, Mohd Ali said AEON Bandaraya Melaka would help boost the number of tourists to the historical city, which recorded more than eight million visitors last year.

"With AEON Bandaraya, it is hoped visitors will spend more time, including their nights here, just to do shop," he added.

The complex has ample parking space with over 2,200 bays. Free parking is available from today until March 7.

By Bernama

Mudajaya unit wins RM241m job

PETALING JAYA: Mudajaya Group Bhd’s indirect subsidiary, Mudajaya-Bina Rezeki Joint Venture, has received the letter of acceptance for a project worth RM241.3mil.

In a filing with Bursa Malaysia, the company said the project was awarded by Boulevard Plaza Sdn Bhd for the design and construction of Boulevard Plaza Development in Putrajaya.

“Mudajaya Corp Bhd, a wholly-owned subsidiary of Mudajaya Group, has a 51% interest in the joint venture,” it said, adding that the project was expected to be completed by Dec 31, 2011.

By The Star