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Wednesday, October 13, 2010

Rehda to hold 3-day property expo

The Real Estate and Housing Developers' Association (REHDA) will showcase a wide selection of properties at Malaysia’s Property Exposition 2010 (MAPEX 2010) from Oct 22 to 24, 2010.

In a statement today, REHDA said MAPEX 2010, with the theme '1Malaysia, 1Home', aimed to connect homebuyers to their dream home by providing a comfortable and convenient avenue for information seeking and exchange through interaction with 38 property developers.

Housing and Local Government Minister, Datuk Chor Chee Heung, will officiate at the launch of the expo on Oct 23.

Chairman of MAPEX committee, Datuk Ng Seing Liong, said in the spirit of 1Malaysia, REHDA wished to set up this platform to help the rakyat of all races own a home.

"At MAPEX, everyone can talk to the developers, pick up brochures and gather as much information as possible to make informed choices," he said.

Other participants include financial institutions, Tribunal for Homebuyers Claims, Treasury Housing Loan Division, Malaysia My Second Home, Employees Provident Fund, Malaysia External Trade Development Corp and the National Housing Department.

The event will be held at Midvalley Exhibition Centre.

By Bernama

Tighter BNM rules on property sector likely

Malaysia is expected to adopt tighter regulations in the 2011 Budget to curb potential dangerous run-up in consumer credit card spending and speculation in the property market.

“We believe Bank Negara Malaysia (BNM) is focusing on tackling household debt in 2011 to promote healthy credit card spending,” said Kenanga Research.

In its 2011 “Wish List”, Kenanga said the central bank should consider imposing tighter borrowing limit for the property sector to avert potential over-leveraging on the household segment and speculations.

It said bank loans should be lowered to between 70 and 80 per cent value ratio for third mortgage, it said.

Bank Negara should also consider capping maximum of two mortgages for each borrower, it said, adding that such a rule would slow down housing price appreciation rate, going forward.

Should tighter borrowing rules be enforced in 2011, it would not have any impact on loan growth this year as borrowings are anticipated to remain strong till year-end, it said.

“But we are cautiously optimistic on business loans as businesses in the next six months may be negatively impacted by global economic turmoil and Malaysia''s economy is not immuned from moderating global growth,” it said.

The research house said it was cautious for the second half of this year due to healthy loan growth but increasing risk on slower growth in the business segment, namely manufacturing and exports.

"Profit margin squeeze is directly triggered by the wave of intensely- competitive pricing, moderate growth expectation and possibility of a slowdown on mortgages if 70 per cent to 80 per cent loan-to-value ratio (LVR) is implemented.

“We see the implementation of a blanket 70 per cent to 80 per cent LVR cap as a real challenge to the industry's loan growth next year and could put pressure on retail banks,” it said.

However, strong asset quality suggested lower credit charge-off, going forward, compensating net profit for the lower top line growth, it said.

As for credit cards, Kenanga said new measures should see tougher limits on the number of cards a person could hold and lower credit limit on each card.

Bank Negara should restrict a consumer to own only two credit cards from two banks of their choice and allow people with an annual income of above RM24,000 to own a credit card from the current minimum requirement of RM18,000.

The central bank should also reduce spending limit by 1.5 times their monthly salary (currently 2.5-3.0 times), set at the bank’s discretion for first-time applicants.

“In our view, stricter credit card rules are prudent and limit the risk of rising household non-performing loans. It will curb spending-spree cultures that have surfaced in certain segments of the population recently,” it added.

By Bernama

LBI to buy land in Pahang for RM5.5m

Triple Equity Sdn Bhd (TESB), a wholly-owned subsidiary of LBI Capital Bhd, has signed a conditional sale and purchase agreement (SPA) with Space Passage Sdn Bhd (SPSB) for 2.16-hectare leasehold land in Pahang for RM5.5 million.

In a filing with Bursa Malaysia, LBI Capital said the purchase consideration would be satisfied by way of cash from internal funds and banks borrowings.

It said TESB, a property development company, planned to develop the land, located near Gohtong Jaya, Genting Highland, into a resort and hotel suites.

LBI Capital said the acquisition would increase the development land of the group and contribute higher earning in the future.

By Bernama

HK luxury property market rosy, say experts

HONG KONG: The latest government land auction, a site in the Kowloon Tong district in Hong Kong, has fetched a higher-than-expected price at US$210 million.

Analysts said the price reflected optimism about luxury property prices in Hong Kong and expected that the government would not be raising curbs on property speculation.

Two developers had earlier bid for the site: Robert Kuok's listed Kerry Properties, which owned an adjacent site and unlisted ChinaChem Group, the property empire of the late Nina Wang.

ChinaChem eventually won with a bid of US$210 million - 55 per cent higher than the opening price, and exceeding expectations.

By AFP