BEIJING: China's top advisory body called on the government to relax property market restrictions to keep the economy growing, a newspaper said, the first such proposal by advisers to steady a weakening house market.
The China Daily cited the Chinese People Political Consultative Conference (CPPCC), an advisory body for parliament, as saying Beijing should loosen purchase restrictions for luxury homes in the first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen.
“Restrictions on purchases should be relaxed for high-end residential properties in first-tier cities,” the newspaper cited the proposal as saying. The paper did not say how it obtained the proposal, saying only that it was released on Tuesday.
This is the first time a group of influential economic advisers have called on China to relax controls on the property market, a once redhot sector that has cooled under a government campaign to make home prices more affordable.
It follows rampant market talk that China could soften its grip on the house market by allowing bigger discounts on mortgage rates, which the government has vehemently denied, saying instead it needs to persevere with price controls.
Premier Wen Jiabao has been adamant that the government will not relax its grip on the housing market even as he has called for other measures to support economic growth.
Analysts said China was unlikely to heed the suggestion as home prices were still too high, but the proposal underlined worries that China's economy could sink into a deeper downturn if the property market was suppressed for too long.
“I don't think the proposal on relaxing restrictions on home purchases will be accepted by the central government since it is in contrast to Beijing's tightening stance,” said Li Wei, economist from Standard Charted Bank in Shanghai.
Growth in the world's second biggest economy slumped to a three-year low of 8.1% in the first quarter as Europe's debt crisis sapped export growth. Analysts forecast growth to slacken further to 7.9% between April and June.
The CPPCC, which includes retired or soon-to-be retired officials, meets in parallel to China's parliament and has no decision-making powers. But it has in the past floated ideas that subsequently became law.
By Reuters
Thursday, June 21, 2012
Wednesday, June 20, 2012
Catalyst for Glomac expected to boost sales to more than RM500mil
PETALING JAYA: Glomac Bhd's sales for the financial year ended April 30, 2012 is expected to be more than RM500mil buoyed by strong demand in its three major townships.
This will be the catalyst for the mid-sized property developer to record positive growth for the year under review. The company will announce its financial results early next week.
Glomac has registered about RM400mil sales in financial year 2011.
Group managing director and chief executive officer Datuk FD Iskandar told StarBiz that the sales for its township development in Sungai Buloh, Rawang and Sri Saujana in Johor did very well.
“These three townships contributed total sales of about RM270mil as of April. And as of Jan 31, we already recorded sales of about RM343mil and we are confident of crossing the RM600mil mark for 2012.
“About 97% of our Reflection Residences in Mutiara Damansara launched in April has been taken up.
“These past three years have been exciting for us in terms of growth and we are on a strong foothold now for further development with gearing of about 0.1 times and net cash position of RM350mil,” he said, adding that prior to 2009, the company chalked up sales of between RM200mil and RM250mil.
To illustrate the expected growth for 2012, the company's nine-month net profit ended Jan 31 of RM63.5mil had already surpassed the whole of 2011's net profit of RM63mil.
Going forward, Iskandar said Glomac's current unbilled sales which could be translated into profits in two to three years' time stood at RM700mil.
“We have been expanding on our land bank quite robustly in the last 18 months where we have purchased about four parcels of land in different locations for a total of RM230mil.
“Among the three prominent ones are the 200 acres in Sungai Buloh with expected gross development value (GDV) of RM800mil, 200 acres in Dengkil with slated GDV of RM800mil and another 200 acres in Puchong with forecast GDV of RM2bil.
“We will launch the Sungai Buloh development by year-end. We will also be looking at developing our land in Sepang where our 200 acres are about 3.5km away from Cyberjaya and 4.5km to KL International Airport,” he said.
On its strategies, Iskandar revealed that Glomac was keen to build landed property as there was good demand for it currently.
“We are also interested to acquire more land in the Greater Kuala Lumpur area with the right prices,” he said.
By The Star
Developer marks anniversary with special incentive campaign
The Mah Sing Group launched its 18th anniversary celebrations with a bang last Saturday, and in conjunction with the milestone has kicked off a three-month long property and lifestyle showcase called “Realising Dreams”.
To show its appreciation to its 12,000 property buyers over 18 years and new buyers, the Mah Sing Group has designed special incentives from June 16 to Sept 15.
Eleven landed and high-rise residential and commercial projects in Kuala Lumpur, Penang island and Johor Baru have been selected for the campaign.
During the period, property purchasers of Icon City (Petaling Jaya), M City (Jalan Ampang), Icon Residence Mont Kiara, Garden Residence and Garden Plaza (Cyberjaya), Kinrara Residence (Puchong), Lagenda@Southbay (Penang), Southbay Plaza (Penang) and Austin Suites (Johor Baru) will enjoy the developer interest bearing scheme (DIBS), where buyers only pay downpayment and nothing else until the completion of the property.
A key proposition of the campaign is to make it easier for buyers to own their dream properties with affordable downpayments of 2% payable via 0% easy payment programmes of up to 36 months with selected banks.
Qualified buyers will benefit from the anniversary lifestyle package of up to RM488,888 depending on the property purchased.
Mah Sing will also absorb the legal fees for the sales and purchase agreement and loan agreement for all 11 participating projects.
Mah Sing’s M Club members will enjoy repeat purchase discounts of up to 1.8%, while purchasers will enjoy buyer-get-buyer rebates of 1%.
The company is also giving away monthly prizes to lucky Mah Sing property buyers. The monthly prizes will lead to a grand prize at year end where the winner gets a unit of serviced residence at Graden Plaza in Cyberjaya worth RM300,000.
The campaign’s roadshow will continue at Equatorial Hotel Penang from June 22 to 23 and later in Johor on June 30 and July 1.
Mah Sing group managing director and group chief executive Tan Sri Leong Hoy Kum said selecting a Mah Sing property was very easy as the company was one of the few developers to build landed and high-rise residential, commercial and even industrial products in all property hotspots.
“With our attractive promotions for this celebration, we make it easy for everyone to own a dream house,” he said during the launch at Shangri-La Kuala Lumpur.
Leong said the company planned to launch six more projects next year.
Also present at the event were Mah Sing Group Berhad executive directors Lim Kiu Hock and Steven Ng.
Emceed by Xandria Ooi and Kevin Chong, the launch saw the China Bond Girls and Shanghai Star Acrobatic Ballet in action.
There were also a series of talks by celebrity chefs Chef Wan and Chef Daisy, and feng shui and Vashtu Sastra talks.
By The Star
Ivory Properties looking for investors
IVORY Properties Group Bhd is in talks with several parties to jointly develop certain parcels of land at its RM10 billion Bayan Mutiara development.
Its executive director and chief executive officer Murly Manokharan said yesterday that Ivory hopes to seal at least one deal in three months.
"We are looking for investors to jointly develop portions involving the commercial aspect of the proposed Penang World City project, such as the medical facilities and offices which are in the masterplan," he told reporters after the company's annual shareholders' meeting here.
Also present was Ivory deputy chairman and executive director Datuk Seri Nazir Ariff Mushir Ariff.
Murly said interested parties included firms from Singapore, Japan and Kuala Lumpur, but he did not name them.
"The Bayan Mutiara land is not for sale," he stressed, responding to a query if the company was planning to sell some of the land to individual investors.
In March this year, Ivory shareholders gave their nod for the company to buy and develop a 41.02ha site in Bayan Mutiara on Penang island from the Penang Development Corp (PDC) and Chief Minister of Penang (Incorporated).
The 41.5ha - comprising 27.3ha of existing land and 14.2ha of land to be reclaimed - was sold for RM1.07 billion, or RM240 per sq ft and will be paid over five years.
Last November, Ivory announced that it was entering into a 49:51 joint venture with Dijaya Corp Bhd to develop Bayan Mutiara.
Murly said Ivory had been asked by PDC to re-submit its master plan for Bayan Mutiara and include its plans for the land which would be reclaimed.
"We hope to re-submit the overall master plan by September as we are currently in the midst of doing soil investigations and other tests at the site," he added.
Asked to comment on press reports that a plot of land for the building of a mosque had been purportedly sold to Ivory as part of the Bayan Mutiara land deal and had raised the ire of several groups in Penang, Murly said: "It (the issue) is between the non-governmental organisations and state government. It's political, therefore, we don't want to comment."
He said Ivory had obtained planning approval to set up a sales gallery and build show units near the Bayan Mutiara site for the first phase of the project which will see the construction of 1,500 high-rise units.
"Although the prices are not fixed as yet, the units are likely to measure around 600 sq ft and 800 sq ft," Murly said, adding that the first phase of the project, covering 4.22ha with a development value of between RM700 million and RM800 million, will likely be launched by the end of this year or early next year.
Ivory Properties was set up in 1999 and has since involved in property development in Penang and northern Peninsular Malaysia.
By Business Times
Its executive director and chief executive officer Murly Manokharan said yesterday that Ivory hopes to seal at least one deal in three months.
"We are looking for investors to jointly develop portions involving the commercial aspect of the proposed Penang World City project, such as the medical facilities and offices which are in the masterplan," he told reporters after the company's annual shareholders' meeting here.
Also present was Ivory deputy chairman and executive director Datuk Seri Nazir Ariff Mushir Ariff.
Murly said interested parties included firms from Singapore, Japan and Kuala Lumpur, but he did not name them.
"The Bayan Mutiara land is not for sale," he stressed, responding to a query if the company was planning to sell some of the land to individual investors.
In March this year, Ivory shareholders gave their nod for the company to buy and develop a 41.02ha site in Bayan Mutiara on Penang island from the Penang Development Corp (PDC) and Chief Minister of Penang (Incorporated).
The 41.5ha - comprising 27.3ha of existing land and 14.2ha of land to be reclaimed - was sold for RM1.07 billion, or RM240 per sq ft and will be paid over five years.
Last November, Ivory announced that it was entering into a 49:51 joint venture with Dijaya Corp Bhd to develop Bayan Mutiara.
Murly said Ivory had been asked by PDC to re-submit its master plan for Bayan Mutiara and include its plans for the land which would be reclaimed.
"We hope to re-submit the overall master plan by September as we are currently in the midst of doing soil investigations and other tests at the site," he added.
Asked to comment on press reports that a plot of land for the building of a mosque had been purportedly sold to Ivory as part of the Bayan Mutiara land deal and had raised the ire of several groups in Penang, Murly said: "It (the issue) is between the non-governmental organisations and state government. It's political, therefore, we don't want to comment."
He said Ivory had obtained planning approval to set up a sales gallery and build show units near the Bayan Mutiara site for the first phase of the project which will see the construction of 1,500 high-rise units.
"Although the prices are not fixed as yet, the units are likely to measure around 600 sq ft and 800 sq ft," Murly said, adding that the first phase of the project, covering 4.22ha with a development value of between RM700 million and RM800 million, will likely be launched by the end of this year or early next year.
Ivory Properties was set up in 1999 and has since involved in property development in Penang and northern Peninsular Malaysia.
By Business Times
Ivory plans to unveil RM1.6bil worth of residential, commercial units in Penang
GEORGE TOWN: Ivory Properties Group Bhd (IPGB) plans to launch RM1.6bil worth of properties on Penang island in the second half of 2012.
IPGB executive director and chief operating officer Murly Manokharan said these projects comprised the first phase of Bayan Mutiara, which has a gross development volume (GDV) of RM800mil, the third and fourth phases of the residential towers for Penang Times Square (RM300mil GDV), a RM130mil sea-fronting condominium block in Batu Ferringhi, and the RM400mil City Mall and City Residence in Tanjung Tokong.
He said the first phase of Bayan Mutiara involved the development of some 1,500 high-rise units with built-up areas of between 500 sq ft and 600 sq ft each.
“We are negotiating with investors from Japan and Singapore to explore possible joint-venture projects for the commercial portion of this project,” Murly said. The total built-up area for the commercial portion is 2.5 million sq ft to 3 million sq ft.
“We should be able to conclude a deal in the next three months,” he added.
For the condominium block, Murly said the group would position it as a medium to high-end scheme in line with the current demand.
The group plans to build 700 condominium units with sizes ranging from 400 to 1,200 sq ft for its Penang Times Square residential towers. It will develop 80% residential units and 20% commercial lots under the City Mall and City Residence project.
“We are looking at selling each unit of the City Mall and City Residence at between RM700,000 and RM750,000.
Murly said the group would submit the master plan for the entire RM10bil Bayan Mutiara project and reclamation reports to Penang Development Corp in September.
Meanwhile, IPGB chairman and group chief executive officer Datuk Low Eng Hock said the group expected a significant contribution in profit and cash flow from the acquisition of associate company Ivory Villas Sdn Bhd.
“We foresee the positive effect arising from acquisition of the remaining 51% equity interest in Ivory Villas Sdn Bhd for RM40mil upon completion on April 2,” he said.
On the recently launch The Latitude, Low said the response was overwhelming and it had sold out all non-bumiputra units of Tower A of the freehold residential development in Tanjung Tokong. The Latitude has a gross development value of RM163.7mil.
“This luxurious 45-storey tower is conceptualised as an abode that promotes affordable luxury by making mid-sized condominiums in the suburbs an attainable reality for those craving understated elegance.
“The take-up rate for The Latitude is now 70%. The two towers are poised to be the most affordable luxury condominium in Penang,” he said.
Low said construction of the project had begun early this month and scheduled for completion in three years.
For the first quarter ended March 31, the group posted RM3.77mil in pre-tax profit on RM24mil revenue, compared with RM6.3mil and RM27.3mil respectively in the previous year's corresponding period.
By The Star
IPGB executive director and chief operating officer Murly Manokharan said these projects comprised the first phase of Bayan Mutiara, which has a gross development volume (GDV) of RM800mil, the third and fourth phases of the residential towers for Penang Times Square (RM300mil GDV), a RM130mil sea-fronting condominium block in Batu Ferringhi, and the RM400mil City Mall and City Residence in Tanjung Tokong.
He said the first phase of Bayan Mutiara involved the development of some 1,500 high-rise units with built-up areas of between 500 sq ft and 600 sq ft each.
“We are negotiating with investors from Japan and Singapore to explore possible joint-venture projects for the commercial portion of this project,” Murly said. The total built-up area for the commercial portion is 2.5 million sq ft to 3 million sq ft.
“We should be able to conclude a deal in the next three months,” he added.
For the condominium block, Murly said the group would position it as a medium to high-end scheme in line with the current demand.
The group plans to build 700 condominium units with sizes ranging from 400 to 1,200 sq ft for its Penang Times Square residential towers. It will develop 80% residential units and 20% commercial lots under the City Mall and City Residence project.
“We are looking at selling each unit of the City Mall and City Residence at between RM700,000 and RM750,000.
Murly said the group would submit the master plan for the entire RM10bil Bayan Mutiara project and reclamation reports to Penang Development Corp in September.
Meanwhile, IPGB chairman and group chief executive officer Datuk Low Eng Hock said the group expected a significant contribution in profit and cash flow from the acquisition of associate company Ivory Villas Sdn Bhd.
“We foresee the positive effect arising from acquisition of the remaining 51% equity interest in Ivory Villas Sdn Bhd for RM40mil upon completion on April 2,” he said.
On the recently launch The Latitude, Low said the response was overwhelming and it had sold out all non-bumiputra units of Tower A of the freehold residential development in Tanjung Tokong. The Latitude has a gross development value of RM163.7mil.
“This luxurious 45-storey tower is conceptualised as an abode that promotes affordable luxury by making mid-sized condominiums in the suburbs an attainable reality for those craving understated elegance.
“The take-up rate for The Latitude is now 70%. The two towers are poised to be the most affordable luxury condominium in Penang,” he said.
Low said construction of the project had begun early this month and scheduled for completion in three years.
For the first quarter ended March 31, the group posted RM3.77mil in pre-tax profit on RM24mil revenue, compared with RM6.3mil and RM27.3mil respectively in the previous year's corresponding period.
By The Star
Mulpha eyes share buyback exercise or assets disposal
SUBANG JAYA: Mulpha International Bhd, which is trading at a large discount to its net tangible assets (NTA), is looking at narrowing this gap, according to executive chairman Lee Seng-Huang.
“We are very frustrated with the share price performance. The market price and NTA gap is very large. The board (of directors) is exploring ways to close the gap,” he said after the company's AGM.
As at March 31, Mulpha International's NTA stood at RM1.32 while its share price was 41 sen at the close yesterday.
Lee: ‘We are very frustrated with the share price performance.’
Lee said the group would close the huge gap between its share price and NTA either through a share buyback programme or assets disposal that was above NTA.
“We are also looking at acquisition opportunities in the region but so far have not seen anything that was compelling in terms of value. Thus, we see more value in our share buyback exercise,” he said, adding that Mulpha had bought back 3% to 4% of its shares.
Mulpha is one company which believes in rewarding shareholders through share buybacks rather than dividend payment. The company had made numerous share buyback exercises to boost its share price.
The company started buying back its shares in 2001 when the share price was trading below 40 sen for most of the time. It continued its buyback effort in 2002 and 2003 until it reached the maximum 10% of share capital allowed.
The exercise saw its share price appreciate. Subsequently, the company repeated the share buyback exercises over the past few years.
Lee explained that by selling land it could unlock the NTA and use the proceeds to buy another piece of land which was more value accretive.
Asked if its options included privatisation, Lee said: “That's not a decision of the board. The board cannot take the company private. Certain shareholders may have to consider the options.”
Meanwhile, he said the company was “pretty much done” in terms of disposing of its non-core business, adding that the company had sold off the crane and paint business.
According to reports, Mulpha recently sold its 31,516 sq ft land in Jalan Sultan Ismail for RM104mil, or about RM3,300 per sq ft.
At the AGM, shareholders also approved Mulpha's plans to undertake a dividend reinvestment plan to allow shareholders to reinvest their dividend in new ordinary shares of 50 sen each.
Separately, Lee said it was “not high priority” for the company to enter a new market, especially new developing markets like Vietnam. He said the company still had 2,000 acres of undeveloped land in Malaysia.
By The Star
“We are very frustrated with the share price performance. The market price and NTA gap is very large. The board (of directors) is exploring ways to close the gap,” he said after the company's AGM.
As at March 31, Mulpha International's NTA stood at RM1.32 while its share price was 41 sen at the close yesterday.
Lee said the group would close the huge gap between its share price and NTA either through a share buyback programme or assets disposal that was above NTA.
“We are also looking at acquisition opportunities in the region but so far have not seen anything that was compelling in terms of value. Thus, we see more value in our share buyback exercise,” he said, adding that Mulpha had bought back 3% to 4% of its shares.
Mulpha is one company which believes in rewarding shareholders through share buybacks rather than dividend payment. The company had made numerous share buyback exercises to boost its share price.
The company started buying back its shares in 2001 when the share price was trading below 40 sen for most of the time. It continued its buyback effort in 2002 and 2003 until it reached the maximum 10% of share capital allowed.
The exercise saw its share price appreciate. Subsequently, the company repeated the share buyback exercises over the past few years.
Lee explained that by selling land it could unlock the NTA and use the proceeds to buy another piece of land which was more value accretive.
Asked if its options included privatisation, Lee said: “That's not a decision of the board. The board cannot take the company private. Certain shareholders may have to consider the options.”
Meanwhile, he said the company was “pretty much done” in terms of disposing of its non-core business, adding that the company had sold off the crane and paint business.
According to reports, Mulpha recently sold its 31,516 sq ft land in Jalan Sultan Ismail for RM104mil, or about RM3,300 per sq ft.
At the AGM, shareholders also approved Mulpha's plans to undertake a dividend reinvestment plan to allow shareholders to reinvest their dividend in new ordinary shares of 50 sen each.
Separately, Lee said it was “not high priority” for the company to enter a new market, especially new developing markets like Vietnam. He said the company still had 2,000 acres of undeveloped land in Malaysia.
By The Star
TA Global completes purchase of Phuket hotel
KUALA LUMPUR: TA Global Bhd, a property development company, is expanding its hotel portfolio with the acquisition of the five-star Movenpick Karon Beach Resort and Spa in Phuket, Thailand.
The acquisition, which is already completed, will enhance TA Global’s hospitality operations in major cities worldwide and expand its existing portfolio of hospitality properties in Thailand.
“The acquisition of Movenpick Phuket allows the company to further expand its portfolio of hotels in the growing South-East Asian region.
“We are confident the hotel will be able to achieve commendable returns, provide steady revenue stream while enhancing the revenue contribution from the hospitality division to the group,” TA Global executive director Kimmy Khoo said in a statement yesterday.
Movenpick Hotel consists of 175 guestrooms, 163 suites and villas and 30 beachfront two-bedroom apartments.
The hotel is situated 45 minutes from Phuket International Airport and is expected to attract both short and long-stay leisure travellers, families and corporate guests.
TA Global currently has six hotels under its portfolio.
They are namely The Westin Melbourne in Melbourne and Radisson Blu Plaza Hotel Sydney in Australia, Aava Whistler in Canada, Swissotel Merchant Court in Singapore, Swissotel Kunshan in China and the Movenpick Phuket in Thailand.
By Bernama
The acquisition, which is already completed, will enhance TA Global’s hospitality operations in major cities worldwide and expand its existing portfolio of hospitality properties in Thailand.
“The acquisition of Movenpick Phuket allows the company to further expand its portfolio of hotels in the growing South-East Asian region.
“We are confident the hotel will be able to achieve commendable returns, provide steady revenue stream while enhancing the revenue contribution from the hospitality division to the group,” TA Global executive director Kimmy Khoo said in a statement yesterday.
Movenpick Hotel consists of 175 guestrooms, 163 suites and villas and 30 beachfront two-bedroom apartments.
The hotel is situated 45 minutes from Phuket International Airport and is expected to attract both short and long-stay leisure travellers, families and corporate guests.
TA Global currently has six hotels under its portfolio.
They are namely The Westin Melbourne in Melbourne and Radisson Blu Plaza Hotel Sydney in Australia, Aava Whistler in Canada, Swissotel Merchant Court in Singapore, Swissotel Kunshan in China and the Movenpick Phuket in Thailand.
By Bernama
Ahmad Zaki Resources eyes Jalan Sultan Ismail projects
KUALA LUMPUR: Ahmad Zaki Resources Bhd (AZRB), which has an orderbook of RM1.9bil, is eyeing private sector projects, including redeveloping older buildings along Jalan Sultan Ismail in Kuala Lumpur.
“Besides tendering for government-related projects, we are looking at the private sector such as the redevelopment of a few older hotels along Jalan Sultan Ismail,” said managing director Datuk Wan Zakariah Wan Muda.
“We have not placed our bids but we are eyeing because we think that is our forte,” he told the reporters after the company's AGM yesterday.
He said that the company was also bidding for constructing and upgrading of towers blocks in the private sector.
“We have surpassed our target for this year after securing the MRT project. It would be good if there are additional jobs,” he said.
The company's projects at hand include the MyRapid Transit (MRT) Sungai Buloh-Kajang line viaduct 6 and International Islamic University's (IIUM) teaching hospital.
“We also participate in the bidding for Kuala Lumpur International Financial District,” he added.
He said the company's core business was still engineering and construction which accounted for 83% of its revenue. The company targets net revenue of at least RM500mil for the coming year.
“In order to replenish our orderbook, we are looking into at around the same amount if not more,” he added.
Wan Zakariah said: “We have obtained financial (aid) for IIUM (unofficially). The construction period is three and a half years whereas the concession period lasts for 21 years.”
In response to any signs of slowdown in construction projects, he said: “I don't think there is a slowdown. After the private finance initiative was introduced, there are big projects available.
“We have positioned ourselves to be a competitive and good builder in such projects.
“We make sure that we are efficient so that we can secure a sustainable volume to match with our size now.”
On updates of the MRT project, he said the project had started and was on schedule.
The project is expected to be completed within the construction period of 43 months.
As for its plantation segment which is still seeing red, chief operating officer Datuk Roslan Tan Sri Jaffar said: “We hope it will be self-sustainable for the three to four years to come as the palm trees would have reached maturity.
“We have a land bank of about 21,000 ha in Kalimantan.
“Currently, only 5,000 hectares is used and we plan to use another 10,000 ha over the next three years. We hope to get three to four tonnes of (palm) oil per hectare then.
“It is our strategic move to diversify our revenue streams through plantation,” he said.
By The Star
More signage to be put up at TTDI interchange to ease congestion
Traffic is expected to flow better when more signage is put up at the new Taman Tun Dr Ismail (TTDI) Interchange on the Damansara-Puchong Highway (LDP), said Lingkaran Trans Kota (Litrak).
Litrak’s head of communications Shah Rizal Mohamed Fawzi said congestion would be minimised when motorists became more accustomed to the new traffic scheme.
He was commenting on feedback from motorists who found themselves caught up in the congestion after the TTDI underpass.
From observation, traffic flow has improved at the TTDI Interchange that replaced the traffic lights at the junction.
However, traffic heading towards Kepong and Bandar Sri Damansara has to slow down immediately after that as motorists need to weave into one lane from the two-lane underpass to merge with traffic on the LDP.
The weaving of traffic often causes congestion during peak hours. It is sometimes worsened by the traffic from the 1Utama traffic light junction.
“We are building more signage gantries to show motorists the correct lane to take when using the underpass, so that they do not need to criss-cross their way back onto the LDP,” Rizal said.
Litrak’s head of engineering department Francisco Anthony Doss said it was difficult for Litrak to find a solution to the long queue of cars from the Bandar Utama traffic light junction as the township’s development was out of their control.
He revealed that there was a proposal from Bandar Utama residents to change the traffic light junction from four-phase to three-phase to alleviate congestion.
“The matter is being discussed now and we are open to ideas. But we need to also take note that the MRT (My Rapid Transit) will change the traffic needs here,” he added.
The new underpass was open to traffic on April 21. Some finishing touches work, including the installation of road kerbs and signage are still being carried out at the TTDI Interchange.
The works are scheduled to be completed by end of July.
The upgrade for the stretch from Persiaran Surian to Penchala toll plaza is expected to be completed in August.
According to Litrak, the 25-month project costing RM98.6mil is three months ahead of schedule.
By The Star
Tuesday, June 19, 2012
JB has land for affordable houses
First-time buyers can still own ‘decent’ houses
JOHOR BARU: There are still large tracts of land in Johor Baru that have potential be developed into residential properties with decent built-up area and offered at affordable prices to first-time local house buyers, said Johor Real Estate and Housing Developers Association branch chairman Koh Moo Hing.
He told StarBiz that land supply had never been an issue in Johor, unlike in Penang and the Klang Valley. “It is a well-known fact that developers in these two areas are hampered by the excessively high prices of land.''
Koh said since the inception of Iskandar Malaysia, land prices in the economic growth corridor had risen steadily between 30% and 40%, depending on the locations. He described the prices of properties in Iskandar as “still reasonable and competitive.”
He said Iskandar would be the one of main factors that contributed to the positive growth in the Johor Baru property market as it helped boost demand for houses in the area.
“Confidence in Johor is now at all-time high the progress in Iskandar is not only about Johor but the nation as well,'' added Koh.
Government-backed Iskandar sprawls on a 2,217 sq km in the southern-most part of Johor and is divided into five flagship development zones the Johor Baru City Centre, Nusajaya, Eastern Gate Development, Western Gate Development and Senai-Kulai.
Koh said improvement in connectivity and accessibility in Iskandar would prompt first-time house buyers to look at other locations in the vicinity which were previously unpopular.
“Developers with land in the suburban areas of Iskandar can offer affordable houses to first-time house buyers as location is no longer an issue to them,'' he said adding that developers in places like Senai, Kulai, Ulu Tiram, Pasir Gudang and Kota Tinggi were popular with first-time house buyers as they offered houses priced at between RM110,000 and RM220,000.
Koh said the Johor property market had yet to reach the “boiling point” like in Penang island, where prices of residential properties had soared by more than 25% over the last five years.
IOI Properties Bhd senior general manager Simon Heng likened the situation in Penang to Hong Kong or Singapore where developers had to fully utilise every inch of land available for their projects for maximum returns.
Heng said a house buyer in Penang pays between RM200,000 and RM300,000 to get a lower-end apartment. For that kind of money, he would get a single-storey or a double-storey terrace in places like Kulai, Kangkar Pulai, Pasir Gudang, Ulu Tiram and Kota Tinggi.
Access to these areas had improved tremendously over the years, in tendem with the development of Iskandar, he added.
Heng who is Rehda past chairman said: “On the average, prices of residential properties in Iskandar Malaysia have increased between 15% and 20% over the years as demand is good,'' he said.
IOI Properties ongoing projects in south Johor include Bandar Putra Kulai a 2,428.11ha integrated township project where 809.37ha had been developed with 11,000 houses. Its other project is the 121.40ha Taman Kempas Utama. Both projects will keep the company busy for eight years with a gross development value of RM4bil.
Meanwhile, SP Setia Bhd executive vice-president (property division) Datuk Chang Khim Wah said Iskandar was still a good place for bigger landed properties due to the availability of land here.
“Comparing Penang to Johor Baru is like comparing an apple to an orange; they are two different places with different market scenarios,'' he said.
Chang said when developers offered their products, they did that based on the market demand and also the suitability of the project's site whether for high-density or landed residential properties.
He said even though Iskandar still had plenty of land for the landed residential propertes, demand for apartments or condominiums was on the upward trend in the last four or five years.
“Condo living is catching up in Iskandar as buyers are getting younger; most of them are below 40 years old and open to new ideas,'' he said.
Chang said most of condo buyers were Malaysian professionals working in Singapore and young families who opted for safety and security offered by developers in their projects.
He said the company's service apartment in Bukit Indah and Setia Tropika was selling between RM400 and RM450 per sq ft and the rate was consider lower compared with service apartments in Penang or the Klang Valley.
Chang said on that note, the company would be launching its Setia Sky 88 service apartment on a 1.61ha site at Jalan Abdullah Tahir in three months with an indicative selling price between RM600 and RM700 per sq ft.
The project consists of three towers with 55-storey block each. Phase one will have 294 apartment units.
By The Star
Vie for a Mah Sing suite
Property investors will have a field day in Penang with the latest showcase of new developments by the Mah Sing Group. Special rebates are offered during the property promotion and buyers will have the chance to win a Garden Plaza executive suite in Cyberjaya.
Scheduled for June 23-24 at the Hotel Equatorial Penang on Bukit Jambul, the latest event is part of the roadshow covering Kuala Lumpur, Penang and Johor.
The showcase highlights 11 landed and high-rise residential and commercial developments throughout the Klang Valley, especially Kuala Lumpur, as well as Penang island and Johor Baru, namely:
- Icon City (Petaling Jaya)
- M City (Jalan Ampang)
- Icon Residence Mont’ Kiara (KL)
- Garden Residence (Cyberjaya)
- Garden Plaza (Cyberjaya)
- Kinrara Residence (Puchong)
- Legenda@Southbay (Penang island)
- Southbay Plaza (Penang island)
- Austin Suites (Johor Baru)
- M Residence (Rawang)
- Sierra Perdana (Johor Baru)
Most of the properties are under the Developer Interest Bearing Scheme (DIBS), where purchasers only pay the down payment and nothing else, until the completion of the property, except M Residence (Rawang), Sierra Perdana (Johor Baru) and Palmiera @ Kinrara Residence (Puchong).
Mah Sing will also absorb the legal fees for the sale and purchase agreement and loan agreement for all 11 participating projects. The group’s Realizing Dreams property and lifestyle showcase scheduled from June 16 to Sept 15, was launched last weekend in Kuala Lumpur.
Celebrities and performers will be at each of the showcase event, including the Shanghai Star Acrobatic Ballet, emcees Xandria Ooi and Jeremy Teo, Chef Wan and Chef Daisy.
The roadshow will also have knowledgable speakers on topics such as landscaping and architecture, Feng Shui master David Koh and Vasthu Sastra expert Dr T. Selva.
MRGJC Magic Quest performers Jorinn and Gelvinn will add some magic to the proceedings and the Shanghai Star Acrobatic Ballet will entertain on Sunday.
During the launch last weekend, Mah Sing Group managing director and group chief executive Tan Sri Leong Hoy Kum said the group was one of the few developers to build landed as well as high-rise residential, commercial and even industrial projects in all the property hotspots.
Built in prime locations and achieving high standards, Mah Sing developments on Penang island offer a good proposition whether for own residence or investment.
During the three-month promotion, buyers will need to pay a down payment of only 2% of the purchase price.
Purchaser can also have the option to pay their down payment via 0% interest easy payment programmes up to 36 months with selected banks. Moreover, qualified purchasers will benefit from the Anniversary Lifestyle Package up to RM488,888 depending on the property purchased. Participating partner banks will offer Pre-Approved Loan Assessment as an added convenience for buyers of Mah Sing properties.
The group’s loyal customers - Mah Sing’s M Club members - will enjoy Repeat Purchase Discounts up to 1.8%, as well as M Club Members’ Buyer-Get-Buyer Privilege of 1%.
In conjunction with Mah Sing’s 18th anniversary celebrations, the group is giving away attractive Samsung products as monthly prizes to eligible property buyers. There will be a grand prize of a Garden Plaza executive suite in Cyberjaya, offered at the end of the year.
After Penang, the Realizing Dreams property showcase will be held in Johor Baru at the KSL Resort from June 30 to July 1.
For details, visit any Mah Sing sales gallery. Weekly activities have been planned throughout the 18th anniversary celebrations. Call the hotline: 1300-88-7999 or +604 6288188 (Penang). Log on to www.mahsingrealizingdreams or e-mail: realizingdreams@mahsing.com.my
By The Star
Nadayu eyes twofold rise in sales
NADAYU Properties Bhd aims to increase property sales by twofold to RM400 million this year, led by its latest launch in Bandar Sunway, Selangor.
The developer will be launching Nadayu 28 in August. The project comprises high-rise residences with 10 units of shoplots, worth a combined RM440 million.
"We have enjoyed more than 50 per cent sales before the release. We are certain that once the sales gallery is up in July, there will be more coming in," Nadayu chairman Hamidon Abdullah said.
Hamidon said yesterday after Nadayu's shareholders meeting that the company is expecting to do better in the current fiscal year ending December 31 2012.
Nadayu has RM280 million in unbilled sales, which will be recognised throughout this year, he said.
It also has on-going projects worth about RM1.7 billion, being launched in phases.
For fiscal 2011, Nadayu posted a pre-tax profit of RM26.7 million on revenues of RM175.8 million.
"Today is not just about selling the product and getting purchasers on the table. You have to cross another hurdle which is end financing. This has made the market more difficult," Hamidon said.
"The real truth in a company is what you have done before. It is your track record that will give you the edge. Our priority is a satisfied customer, so we get recurring purchasers," he added.
Hamidon said the company is looking to increase its landbank, from its current size of 362ha.
The current land size, mainly in the Klang Valley and Penang, is expected to generate a gross development value exceeding RM5 billion over the next 10 years.
"We will look at all opportunities to grow the business and expand to new territories," he said.
By Business Times
"We have enjoyed more than 50 per cent sales before the release. We are certain that once the sales gallery is up in July, there will be more coming in," Nadayu chairman Hamidon Abdullah said.
Hamidon said yesterday after Nadayu's shareholders meeting that the company is expecting to do better in the current fiscal year ending December 31 2012.
Nadayu has RM280 million in unbilled sales, which will be recognised throughout this year, he said.
It also has on-going projects worth about RM1.7 billion, being launched in phases.
For fiscal 2011, Nadayu posted a pre-tax profit of RM26.7 million on revenues of RM175.8 million.
"Today is not just about selling the product and getting purchasers on the table. You have to cross another hurdle which is end financing. This has made the market more difficult," Hamidon said.
"The real truth in a company is what you have done before. It is your track record that will give you the edge. Our priority is a satisfied customer, so we get recurring purchasers," he added.
Hamidon said the company is looking to increase its landbank, from its current size of 362ha.
The current land size, mainly in the Klang Valley and Penang, is expected to generate a gross development value exceeding RM5 billion over the next 10 years.
"We will look at all opportunities to grow the business and expand to new territories," he said.
By Business Times
Mulpha Land: Boutique projects on drawing board
PETALING JAYA: Mulpha Land Bhd, which has four on-going projects with gross development value (GDV) of RM800 million, plans to add more developments in the short term.
Executive director Ghazie Yeoh Abdullah said Mulpha Land will be busy for the next five years, launching boutique developments and expanding into new horizons.
"We have to look at where we want to be in the next three years, and five years. We are opening up into different sectors, and moving into high-growth areas," Ghazie told Business Times in an interview.
Ghazie said part of the bigger plan for the company is to acquire land in Kuala Lumpur, Selangor and in the northern states, as well as undertake property development projects on privatisation basis and joint ventures.
He added that the key is to buy sizeable land that can generate huge GDV and good returns.
"We want to grow our GDV to previous records. We plan to stick to bite-size products as the market seem to be acquiring that. We are expanding our market reach to foreign property buyers," Ghazie said.
He added that Mulpha Land's vision is in line with its parent, Mulpha International Bhd, which is to grow to new heights.
Mulpha International, a diversified conglomerate with shareholder's fund exceeding RM2.9 billion, owns 70.54 per cent of Mulpha Land.
Mulpha Land's existing projects are Bangsar Enclave in Bangsar and Raintree Residence in Ampang, Kuala Lumpur, Bukit Punchor in Penang, and Desa Aman in Kulim, Kedah.
The company has in its pocket, undeveloped land of up to 250ha in the central and northern regions, which will be developed over the next five to eight years, Ghazie said.
Ghazie said all existing and new projects by the company will be Green Building Index rated.
He said Mulpha Land is gearing to introduce its next exclusive project, six luxury bungalows in Bukit Tunku, Kuala Lumpur, targeting high networth locals and Arabs.
Ghazie was appointed to the board of Mulpha Land on May 22 2012, to spearhead business development for the company, including land purchase and new product design.
He has been offered by Mulpha International to exercise the option to acquire 30 million ordinary shares of RM0.10 each in Mulpha Land at a price of RM1.16 per share.
If successful, this means Ghazie will hold 32 per cent of Mulpha Land while Mulpha International will have 38 per cent stake remaining in the property development company.
Mulpha International will receive cash of RM34.8 million if all the call options are exercised.
By Business Times
Executive director Ghazie Yeoh Abdullah said Mulpha Land will be busy for the next five years, launching boutique developments and expanding into new horizons.
"We have to look at where we want to be in the next three years, and five years. We are opening up into different sectors, and moving into high-growth areas," Ghazie told Business Times in an interview.
Ghazie said part of the bigger plan for the company is to acquire land in Kuala Lumpur, Selangor and in the northern states, as well as undertake property development projects on privatisation basis and joint ventures.
He added that the key is to buy sizeable land that can generate huge GDV and good returns.
"We want to grow our GDV to previous records. We plan to stick to bite-size products as the market seem to be acquiring that. We are expanding our market reach to foreign property buyers," Ghazie said.
He added that Mulpha Land's vision is in line with its parent, Mulpha International Bhd, which is to grow to new heights.
Mulpha International, a diversified conglomerate with shareholder's fund exceeding RM2.9 billion, owns 70.54 per cent of Mulpha Land.
Mulpha Land's existing projects are Bangsar Enclave in Bangsar and Raintree Residence in Ampang, Kuala Lumpur, Bukit Punchor in Penang, and Desa Aman in Kulim, Kedah.
The company has in its pocket, undeveloped land of up to 250ha in the central and northern regions, which will be developed over the next five to eight years, Ghazie said.
Ghazie said all existing and new projects by the company will be Green Building Index rated.
He said Mulpha Land is gearing to introduce its next exclusive project, six luxury bungalows in Bukit Tunku, Kuala Lumpur, targeting high networth locals and Arabs.
Ghazie was appointed to the board of Mulpha Land on May 22 2012, to spearhead business development for the company, including land purchase and new product design.
He has been offered by Mulpha International to exercise the option to acquire 30 million ordinary shares of RM0.10 each in Mulpha Land at a price of RM1.16 per share.
If successful, this means Ghazie will hold 32 per cent of Mulpha Land while Mulpha International will have 38 per cent stake remaining in the property development company.
Mulpha International will receive cash of RM34.8 million if all the call options are exercised.
By Business Times
Ivory Properties sees huge jump in revenue next year
GEORGE TOWN:Ivory Properties Group Bhd expects to see a huge jump in its revenue next year amid several projects to be launched in the second half of this year and early 2013.
Its executive director/chief operating officer, Murly Manokharan, said on Tuesday next year would be exciting for Ivory with the Bayan Mutiara development kicking in and also its position as a turnkey builder for the project.
He said Ivory's balance sheet would be strengthened in the second quarter this year following the acquisition of its associate company, Ivory Villas Sdn Bhd, for RM40mil for the remaining 51% stake.
Ivory will be launching five residential projects in the second half of this year and early 2013 with a gross development value (GDV) of over RM800mil. Among the projects are the phase three and four Penang Times Square in Jalan Dato' Keramat with a GDV of RM300 million.
At a press conference after the group's AGM, Murly said the first phase of residential development in Bayan Mutiara would be launched year-end or the first quarter of next year with a gross development value of between RM700mil and RM800mil.
Other developments include the Island Resort bungalow project in Batu Ferringhi with 22 exclusive units ranging from 5,000 sq ft to 8,000 sq ft at a GDV value of between RM20 million and RM25 million to be launched year-end.
By Bernama
Its executive director/chief operating officer, Murly Manokharan, said on Tuesday next year would be exciting for Ivory with the Bayan Mutiara development kicking in and also its position as a turnkey builder for the project.
He said Ivory's balance sheet would be strengthened in the second quarter this year following the acquisition of its associate company, Ivory Villas Sdn Bhd, for RM40mil for the remaining 51% stake.
Ivory will be launching five residential projects in the second half of this year and early 2013 with a gross development value (GDV) of over RM800mil. Among the projects are the phase three and four Penang Times Square in Jalan Dato' Keramat with a GDV of RM300 million.
At a press conference after the group's AGM, Murly said the first phase of residential development in Bayan Mutiara would be launched year-end or the first quarter of next year with a gross development value of between RM700mil and RM800mil.
Other developments include the Island Resort bungalow project in Batu Ferringhi with 22 exclusive units ranging from 5,000 sq ft to 8,000 sq ft at a GDV value of between RM20 million and RM25 million to be launched year-end.
By Bernama
Asas Dunia to launch properties worth RM300mil in Seberang Prai
GEORGE TOWN: Asas Dunia Bhd is launching 1,356 units of landed properties worth approximately RM300mil in gross development value in Seberang Prai from now until the end of 2013, due to the growing interest to invest in properties in Seberang Prai.
The properties comprise largely single- and double-storey properties, priced between RM200,000 to RM600,000.
“We are launching more properties because on top of the trend to buy properties to stay in Seberang Prai, we are also seeing more people buying properties on the mainland for investment.
“They are gradually realising the investment potential of properties in Seberang Prai, as the second bridge is scheduled to be completed soon, and more investments are coming into the industrial park of south Seberang Prai.
“The state government will probably need to expand the Penang Science Park in Bukit Minyak and the industrial estate in Batu Kawan, as there are more small and medium enterprises from Singapore coming into the country,” group managing director Datuk Jerry Chan said after the company's AGM.
As a result of the demand for properties in Seberang Prai, the price for a double-storey semi-detached house in Bukit Mertajam, for example, has increased to RM1mil from about RM500,000 three years ago.
The price of a double-storey terraced house in Bukit Mertajam town is now about RM450,000, approximately 70% higher than the price three years ago.
“But the RM1mil price for a semi-detached house in Bukit Mertajam is still more attractive than that of a semi-detached property on the island, which is priced between RM2.5mil to RM3.5mil.
“The price of a vacant land per sq ft is between RM20 to RM50 per sq ft, double of what it was two years ago, depending on the location,” he said. For the first quarter ended March 31 2012, the group posted pre-tax profit of RM12mil on the back of RM36.4mil revenue, compared with RM8.6mil and RM29.8mil achieved in the corresponding period the previous year.
By The Star
The properties comprise largely single- and double-storey properties, priced between RM200,000 to RM600,000.
“We are launching more properties because on top of the trend to buy properties to stay in Seberang Prai, we are also seeing more people buying properties on the mainland for investment.
“They are gradually realising the investment potential of properties in Seberang Prai, as the second bridge is scheduled to be completed soon, and more investments are coming into the industrial park of south Seberang Prai.
“The state government will probably need to expand the Penang Science Park in Bukit Minyak and the industrial estate in Batu Kawan, as there are more small and medium enterprises from Singapore coming into the country,” group managing director Datuk Jerry Chan said after the company's AGM.
As a result of the demand for properties in Seberang Prai, the price for a double-storey semi-detached house in Bukit Mertajam, for example, has increased to RM1mil from about RM500,000 three years ago.
The price of a double-storey terraced house in Bukit Mertajam town is now about RM450,000, approximately 70% higher than the price three years ago.
“But the RM1mil price for a semi-detached house in Bukit Mertajam is still more attractive than that of a semi-detached property on the island, which is priced between RM2.5mil to RM3.5mil.
“The price of a vacant land per sq ft is between RM20 to RM50 per sq ft, double of what it was two years ago, depending on the location,” he said. For the first quarter ended March 31 2012, the group posted pre-tax profit of RM12mil on the back of RM36.4mil revenue, compared with RM8.6mil and RM29.8mil achieved in the corresponding period the previous year.
By The Star
'Private villas part of strategy to capture luxury mart'
KUALA LUMPUR: The Pulai Desaru Beach Resort & Spa in Johor plans to build several units of private villas to capture the luxury market.
The resort sits on a 10.5ha site, of which only a fifth has been utilised.
"We are in the midst of planning an expansion in the resort. We are looking at villas with private swimming pools," its general manager Azmi Sharuddin said.
The villas, which are aimed at capturing luxury holidaymakers, are expected to be ready in about two years.
"We have not decided if we want to sell the villas or if we will own and operate them," Azmi said.
The move will be strategic as the Pulai Desaru is located directly next to Khazanah Nasional Bhd's Desaru Coast development.
Khazanah, through Destination Resorts and Themed Attractions & Resorts, is building a 1,780ha integrated luxury destination with the first phase targeted for completion in 2014.
Meanwhile, not far away, Themed Attractions is building two themes parks, namely Ocean Quest and Ocean Splash.
Once completed, these projects are expected to make Desaru vibrant and attract more visitors. With that, Pulai Desaru wants to capitalise on the anticipated increase in tourists arrivals there.
Pulai Desaru's history can be traced when it was built by Japan-based construction company Fujiko Cio Ltd. It was then named Desaru Perdana Beach Resort. The hotel was bought over by Datuk Chua Jui Leng in 2004 and renamed Pulai Desaru Beach Resort & Spa.
This resort is part of the listed Pulai Springs Bhd, which also operates the Pulai Springs Resort in Johor.
The listed entity is now controlled by the Mah family from Penang.
By Business Times
The resort sits on a 10.5ha site, of which only a fifth has been utilised.
"We are in the midst of planning an expansion in the resort. We are looking at villas with private swimming pools," its general manager Azmi Sharuddin said.
The villas, which are aimed at capturing luxury holidaymakers, are expected to be ready in about two years.
"We have not decided if we want to sell the villas or if we will own and operate them," Azmi said.
The move will be strategic as the Pulai Desaru is located directly next to Khazanah Nasional Bhd's Desaru Coast development.
Khazanah, through Destination Resorts and Themed Attractions & Resorts, is building a 1,780ha integrated luxury destination with the first phase targeted for completion in 2014.
Meanwhile, not far away, Themed Attractions is building two themes parks, namely Ocean Quest and Ocean Splash.
Once completed, these projects are expected to make Desaru vibrant and attract more visitors. With that, Pulai Desaru wants to capitalise on the anticipated increase in tourists arrivals there.
Pulai Desaru's history can be traced when it was built by Japan-based construction company Fujiko Cio Ltd. It was then named Desaru Perdana Beach Resort. The hotel was bought over by Datuk Chua Jui Leng in 2004 and renamed Pulai Desaru Beach Resort & Spa.
This resort is part of the listed Pulai Springs Bhd, which also operates the Pulai Springs Resort in Johor.
The listed entity is now controlled by the Mah family from Penang.
By Business Times
AZRB eyes redeveloping older buildings along Jalan Sultan Ismail
KUALA LUMPUR: Ahmad Zaki Resources Bhd (AZRB) is eyeing at private projects including redeveloping older buildings along Jalan Sultan Ismail in Kuala Lumpur.
AZRB managing director Datuk Wan Zakariah Wan Muda said on Tuesday that projects at hand included the Sungai Buloh- Kajang KL mass rapid transit (KLMRT) line viaduct 6 and International Islamic University's teaching hospital.
"Besides tendering for government related projects, we are also looking at the private sector such as redevelopment of older buildings along Jalan Sultan Ismail," said Wan Zakariah. He said the company's core business was still engineering and construction which accounted for 83% of its revenue.
By The Star
AZRB managing director Datuk Wan Zakariah Wan Muda said on Tuesday that projects at hand included the Sungai Buloh- Kajang KL mass rapid transit (KLMRT) line viaduct 6 and International Islamic University's teaching hospital.
"Besides tendering for government related projects, we are also looking at the private sector such as redevelopment of older buildings along Jalan Sultan Ismail," said Wan Zakariah. He said the company's core business was still engineering and construction which accounted for 83% of its revenue.
By The Star
Monday, June 18, 2012
Nadayu Properties Bhd targeting 100% sales growth
KUALA LUMPUR: Nadayu Properties Bhd is targeting to achieve almost 100% sales growth to RM400 million this year, backed by upcoming several housing projects launch.
"As of to date, the company has about RM280 million unbilled sales, which will take us for the rest of the year," said Chairman Hamidon Abdullah.
For the first phase of Nadayu Melawati, it will be handed over to buyers in the second quarter of the 2012 financial year 2012 and has received favourable feedback from prospective buyers, he said.
"Our phase 1 of Nadayu 92 Kajang will also be completed according to schedule and will be handed over in the second quarter of this year," he told reporters after the company's annual general meeting today.
Hamidon said the company also received overwhelming response with about 50 per cent sales for its Nadayu 28 project to be launched in early August.
On the industry outlook due to new rules issued by Bank Negara for housing loans, Hamidon expects about 30 to 40 per cent of its sales to be cancelled as some buyers cannot honour loan requirements.
To date, the company has a total landbank of 351 hectares in the Klang Valley and Penang, with RM5 billion in total gross development (GDV), which will last until eight to 10 years.
"Of the total, about RM1.7 billion or 20 per cent GDV is part of our ongoing projects.
"Besides looking at Klang Valley and Penang for land, the company is also eyeing to acquire land in Nusajaya, Johor," he added.
By Bernama
"As of to date, the company has about RM280 million unbilled sales, which will take us for the rest of the year," said Chairman Hamidon Abdullah.
For the first phase of Nadayu Melawati, it will be handed over to buyers in the second quarter of the 2012 financial year 2012 and has received favourable feedback from prospective buyers, he said.
"Our phase 1 of Nadayu 92 Kajang will also be completed according to schedule and will be handed over in the second quarter of this year," he told reporters after the company's annual general meeting today.
Hamidon said the company also received overwhelming response with about 50 per cent sales for its Nadayu 28 project to be launched in early August.
On the industry outlook due to new rules issued by Bank Negara for housing loans, Hamidon expects about 30 to 40 per cent of its sales to be cancelled as some buyers cannot honour loan requirements.
To date, the company has a total landbank of 351 hectares in the Klang Valley and Penang, with RM5 billion in total gross development (GDV), which will last until eight to 10 years.
"Of the total, about RM1.7 billion or 20 per cent GDV is part of our ongoing projects.
"Besides looking at Klang Valley and Penang for land, the company is also eyeing to acquire land in Nusajaya, Johor," he added.
By Bernama
UDA set to begin Tg Tokong job
UDA Holdings Bhd’s redevelopment project at Tanjung Tokong in Penang is expected to generate RM1.8 billion in gross development value.
Chairman Datuk Nur Jazlan Mohamed said the redevelopment project would begin once the Penang government granted it a start-work order.
The residential and commercial mixed development project, to be developed on a 9ha land, is expected to take four years to complete.
He said the commercial development would include a supermarket, a community hall and a recreational area while the residential development will comprise apartment units for 1,200 families.
Nur Jazlan said the apartment project would be developed at a cost of RM165 million, with each unit to be between 800 sq ft and 850 sq ft in size.
“The government will subsidise about RM120,000 per unit. Based on the present market rate in Penang, a similar apartment unit will cost RM300,000,” he said after flagging off a fund-raising cyclethon here, yesterday.
Prime Minister Datuk Seri Najib Razak is expected to officiate the ground-breaking ceremony of the project soon.
UDA Holdings was granted the job of redeveloping Tanjung Tokong by then prime minister Tun Abdul Razak Hussein in 1972 but the project never materialised.
Nur Jazlan, who is also the Pulai member of parliament, had said previously the pledge of new homes was a testimony of UDA’s efforts to uphold the interest of the Malays.
“Not only are the Tanjung Tokong settlers entitled to the apartment units, their children are qualified, too, based on certain criteria,” he said.
On Saturday, UDA Holdings signed a settlement agreement with the settlers and thus resolving the issue that had prolonged for 40 years.
On another note, Nur Jazlan said UDA Holdings had also offered its expertise for the redevelopment of Johor Baru city.
This, he said, could be done through collaboration between UDA Holdings and the state government or other agencies, such as the Johor Corporation.
By Business Times
The residential and commercial mixed development project, to be developed on a 9ha land, is expected to take four years to complete.
He said the commercial development would include a supermarket, a community hall and a recreational area while the residential development will comprise apartment units for 1,200 families.
Nur Jazlan said the apartment project would be developed at a cost of RM165 million, with each unit to be between 800 sq ft and 850 sq ft in size.
“The government will subsidise about RM120,000 per unit. Based on the present market rate in Penang, a similar apartment unit will cost RM300,000,” he said after flagging off a fund-raising cyclethon here, yesterday.
Prime Minister Datuk Seri Najib Razak is expected to officiate the ground-breaking ceremony of the project soon.
UDA Holdings was granted the job of redeveloping Tanjung Tokong by then prime minister Tun Abdul Razak Hussein in 1972 but the project never materialised.
Nur Jazlan, who is also the Pulai member of parliament, had said previously the pledge of new homes was a testimony of UDA’s efforts to uphold the interest of the Malays.
“Not only are the Tanjung Tokong settlers entitled to the apartment units, their children are qualified, too, based on certain criteria,” he said.
On Saturday, UDA Holdings signed a settlement agreement with the settlers and thus resolving the issue that had prolonged for 40 years.
On another note, Nur Jazlan said UDA Holdings had also offered its expertise for the redevelopment of Johor Baru city.
This, he said, could be done through collaboration between UDA Holdings and the state government or other agencies, such as the Johor Corporation.
By Business Times
Home prices fall in more than half of Chinese cities
Prices for new homes in China fell in more than half of major cities in May from April, official data showed Monday, as the government vows to maintain controls over the property market.
Out of 70 cities tracked by the government, 43 registered month-on-month falls in home prices in May, the same number as April, the National Bureau of Statistics said in a statement.
China has implemented several measures aimed at limiting runaway property prices for more than a year, including bans on buying second homes, hiking minimum down-payments and introducing property taxes in certain cities.
But the cities that recorded rises in home prices doubled to six, including Tianjin and Dalian in the north, suggesting prices have started to rebound despite controls, analysts said.Prices were unchanged in 21 cities, the bureau said.
The government has been encouraging banks to lend to first-time home buyers while at the same time seeking to clamp down on speculative demand.China cut interest rates on June 8, which analysts believe could bring new life to the market.
"The government insists that its policy controls remain in place, but they do seem to be fraying at the edges," Capital Economics said in a research report last week.
"But neither property prices nor real estate investment are likely to experience a sharp rebound," it said. "Prices are likely to remain subdued.
"One Chinese analyst said a slowdown in property investment had limited supply, causing prices to edge higher."In general, home prices will maintain a trend of stable increases in future," Li Huiyong, a Shanghai-based economic analyst at Shenyin Wanguo Securities, told AFP.
Most Shanghai-listed property developers gained in morning trade Monday, with Guangzhou Donghua Enterprise jumping 3.85 percent to 6.48 yuan ($1.02) and Beijing Vantone Real Estate rising 1.50 percent to 4.05 yuan.
By AFP
Out of 70 cities tracked by the government, 43 registered month-on-month falls in home prices in May, the same number as April, the National Bureau of Statistics said in a statement.
China has implemented several measures aimed at limiting runaway property prices for more than a year, including bans on buying second homes, hiking minimum down-payments and introducing property taxes in certain cities.
But the cities that recorded rises in home prices doubled to six, including Tianjin and Dalian in the north, suggesting prices have started to rebound despite controls, analysts said.Prices were unchanged in 21 cities, the bureau said.
The government has been encouraging banks to lend to first-time home buyers while at the same time seeking to clamp down on speculative demand.China cut interest rates on June 8, which analysts believe could bring new life to the market.
"The government insists that its policy controls remain in place, but they do seem to be fraying at the edges," Capital Economics said in a research report last week.
"But neither property prices nor real estate investment are likely to experience a sharp rebound," it said. "Prices are likely to remain subdued.
"One Chinese analyst said a slowdown in property investment had limited supply, causing prices to edge higher."In general, home prices will maintain a trend of stable increases in future," Li Huiyong, a Shanghai-based economic analyst at Shenyin Wanguo Securities, told AFP.
Most Shanghai-listed property developers gained in morning trade Monday, with Guangzhou Donghua Enterprise jumping 3.85 percent to 6.48 yuan ($1.02) and Beijing Vantone Real Estate rising 1.50 percent to 4.05 yuan.
By AFP
China May home prices fall
BEIJING: Average home prices in China's 70 major cities fell 1.5 percent in May from a year earlier, Reuters calculations based on official data published on Monday showed, and the pace of decline picked up in major cities such as Shanghai.
It was the third straight monthly decline on a year-on-year basis since the government imposed strict curbs on property speculation more than two years ago, with the price decline deepening from a fall of 1.2 percent in April.
In month-on-month terms, home prices fell 0.1 percent, the eighth straight decline since the Reuters weighted index was launched in January 2011.
The National Bureau of Statistics said new home prices fell 1.2 percent in Beijing in May from a year earlier and were down 1.6 percent in Shanghai.
Month-on-month, they remained unchanged in Beijing and were down 0.1 percent in Shanghai.
Many Chinese buyers worry about a rebound in property prices as the government loosens monetary policy to spur a slowing economy, although Beijing has retained its administrative curbs on the real estate market, local media reported on Monday.
"It seems home prices and tightening policies have reached their bottom so quite a few home buyers are starting to panic again," the People's Daily, the mouthpiece of China's ruling Communist Party, said in an analytical report. This is reminiscent of 2009 when prices doubled in several months after Beijing rolled out a 4 trillion yuan ($628.43 billion) stimulus package, the newspaper said.
China has relaxed monetary and fiscal policies after a more than two-year long tightening campaign to cool the country's red-hot property market as the euro zone debt crisis hit global financial markets and braked domestic growth.
The central bank cut interest rates on June 7, the first such move in more than three years, after it lowered banks' reserve requirement ratio three times since November.
"Although these measures are not aimed at salvaging the property market, they are a shot in the arm for the cash-strapped real estate market," the People's Daily added.
Meanwhile, many Chinese cities have relaxed policies, although the central government has maintained its curbs against speculators.
These measures have changed market sentiment and property sales have shown signs of a recovery since March.
The semi-official China Securities Journal reported on Monday that transactions of new and existing homes combined rose 46.5 percent in Beijing in the first half of June as compared with the same period last year, citing data from the local housing bureau website.
The newspaper also cited local consultancy Home Link as saying that 21 of the 76 new property projects that hit the market so far this year saw a rise in transaction prices.
However, high inventories will cap any quick rebound in home prices in the near term, it cited Home Link analyst Chen Xue as saying.
Vanke <000002.SZ>, China's largest developer by sales, said earlier this month it would take about 11 months to sell down unsold stocks in key cities such as Beijing, Shanghai and Shenzhen.
The company's sales rose 19 percent in May from the previous month to 10.72 billion yuan ($1.68 billion), reversing a decline in April.
($1 = 6.3651 Chinese yuan)
By Reuters
It was the third straight monthly decline on a year-on-year basis since the government imposed strict curbs on property speculation more than two years ago, with the price decline deepening from a fall of 1.2 percent in April.
In month-on-month terms, home prices fell 0.1 percent, the eighth straight decline since the Reuters weighted index was launched in January 2011.
The National Bureau of Statistics said new home prices fell 1.2 percent in Beijing in May from a year earlier and were down 1.6 percent in Shanghai.
Month-on-month, they remained unchanged in Beijing and were down 0.1 percent in Shanghai.
Many Chinese buyers worry about a rebound in property prices as the government loosens monetary policy to spur a slowing economy, although Beijing has retained its administrative curbs on the real estate market, local media reported on Monday.
"It seems home prices and tightening policies have reached their bottom so quite a few home buyers are starting to panic again," the People's Daily, the mouthpiece of China's ruling Communist Party, said in an analytical report. This is reminiscent of 2009 when prices doubled in several months after Beijing rolled out a 4 trillion yuan ($628.43 billion) stimulus package, the newspaper said.
China has relaxed monetary and fiscal policies after a more than two-year long tightening campaign to cool the country's red-hot property market as the euro zone debt crisis hit global financial markets and braked domestic growth.
The central bank cut interest rates on June 7, the first such move in more than three years, after it lowered banks' reserve requirement ratio three times since November.
"Although these measures are not aimed at salvaging the property market, they are a shot in the arm for the cash-strapped real estate market," the People's Daily added.
Meanwhile, many Chinese cities have relaxed policies, although the central government has maintained its curbs against speculators.
These measures have changed market sentiment and property sales have shown signs of a recovery since March.
The semi-official China Securities Journal reported on Monday that transactions of new and existing homes combined rose 46.5 percent in Beijing in the first half of June as compared with the same period last year, citing data from the local housing bureau website.
The newspaper also cited local consultancy Home Link as saying that 21 of the 76 new property projects that hit the market so far this year saw a rise in transaction prices.
However, high inventories will cap any quick rebound in home prices in the near term, it cited Home Link analyst Chen Xue as saying.
Vanke <000002.SZ>, China's largest developer by sales, said earlier this month it would take about 11 months to sell down unsold stocks in key cities such as Beijing, Shanghai and Shenzhen.
The company's sales rose 19 percent in May from the previous month to 10.72 billion yuan ($1.68 billion), reversing a decline in April.
($1 = 6.3651 Chinese yuan)
By Reuters
Ireka Engr wins RM269m UEM Land job
Ireka Engineering and Construction Sdn Bhd, a unit of Ireka Corp Bhd, has received a RM268.6 million contract from UEM Land Bhd to build a 35-storey, 246-unit serviced apartments and a 16-storey office tower.
In a statement today, Ireka Corp said the project in Puteri Harbour, an integrated waterfront and marina development in Nusajaya, Iskandar Johor, included retail space, car parks and recreational facilities.
"The project will commence on Aug 1, 2012 and is expected to be completed in 24 months. It will bring Ireka Corp's current order book to about RM1.6 billion, of which approximately RM500 million remains outstanding," it said.
Its group managing director, Lai Siew Wah, said Ireka Corp would continue to pursue more new opportunities, capitalising on its experience and expertise in infrastructure, building and civil engineering works going forward.
By Bernama
In a statement today, Ireka Corp said the project in Puteri Harbour, an integrated waterfront and marina development in Nusajaya, Iskandar Johor, included retail space, car parks and recreational facilities.
"The project will commence on Aug 1, 2012 and is expected to be completed in 24 months. It will bring Ireka Corp's current order book to about RM1.6 billion, of which approximately RM500 million remains outstanding," it said.
Its group managing director, Lai Siew Wah, said Ireka Corp would continue to pursue more new opportunities, capitalising on its experience and expertise in infrastructure, building and civil engineering works going forward.
By Bernama
Saturday, June 16, 2012
UEM Land to bank on Nusajaya
It is a bold statement to make, but Datuk Wan Abdullah Wan Ibrahim, managing director and chief executive officer of UEM Land Holdings Bhd, does not mince his words when he says the company has “delivered on its promises”.
“When we got listed in 2008, we told the media and analysts where we were going,” he tells StarBizWeek in an interview.
“When the time was right, we raised almost RM1bil through a rights issue. Even before we were listed we did the de-gearing exercise with Khazanah Nasional Bhd.
“And because of our need to diversify in terms of location, which we were taking too long to do organically, we acquired Sunrise.”
The hotly-debated RM1.39bil takeover of influential ex-banker Datuk Tong Kooi Ong’s listed vehicle, which was Mont Kiara’s master planner, immediately solved a few strategic objectives.
“Among others, we needed the right brand and skill set. In those days, UEM Land was a township developer. We can build high rises, but at what level of class, efficiency and market intelligence?” Wan Abdullah asks.
“Via the Sunrise team, we had that practically overnight. They had a strong balance sheet and a good track record in not only product delivery but also the financial aspects.”
“Now,” he adds, “we just need to ramp up earnings.”
“We have a huge five-year target. Corporate governance rules do not allow me to share this, but you will probably laugh and think it is a bad joke. It’s a very steep growth trajectory.
“Our 2012 headline key performance indicators will give you an indication,” he says, referring to its target to achieve 50% growth in revenue, 40% in net profit and return on equity of 10%.
“Those are big numbers in a property climate which is uncertain as we speak. While we have all these constraints, we are still pushing ahead with our agenda. I believe we have very good prospects, and the single biggest factor we are hanging our optimism on is Nusajaya.”
The 23,875-acre Nusajaya, of which UEM Land is master developer, is one of five flagship zones in Iskandar Malaysia, the country’s first economic growth corridor.
Wan Abdullah enthuses: “SP Setia has said it is focusing on Johor, and Mah Sing is also reinvesting in Johor. These people can’t be wrong in their reading of the market and the demand.
“Everyone is rushing into Iskandar, and it is not by accident. We have been working day in and day out for this.”
The key to this growth, he points out, is two-pronged. There will be new catalyst projects unveiled towards the fourth quarter for Nusajaya, the likes of which investors and analysts got a peek of at the CIMB Asean Conference earlier this week.
In a research note, CIMB analyst Terence Wong says the management previewed Gerbang Nusajaya, a 4,500-acre, RM18bil gross development value (GDV) township envisaged as the gateway to Iskandar Malaysia for those entering from Singapore.
Some of its proposed projects include an AutoCity test track and a trade centre.
“UEM Land’s original blank canvas of 24,000 acres in Nusajaya is finally reaching a tipping point. Recent strong sales (85% take-up for Imperia and close to 100% for Somerset Puteri Harbour) attest to the attraction of the township,” Wong remarks.
“The company is the best play on Iskandar Malaysia as it has close to 8,000 acres of undeveloped landbank in Nusajaya alone, which lies in the heart of Iskandar Malaysia.”
It has also made two major land purchases totalling RM579mil so far this year, a sign that it is not resting on its laurels despite already being the largest private landowner in Johor.
In April, it bought 122.28 acres near Puteri Harbour for RM93.2mil from Tanjung Bidara Ventures Sdn Bhd, a wholly-owned subsidiary of Khazanah, to be developed into a premier residential enclave featuring canal-front homes and high-end condominiums.
The land actually forms part of a larger 4,500 acres it had disposed to Khazanah in a de-gearing exercise in 2006.
“We needed a white knight (at the time). In 2007, nobody cared about us. Our gearing was 18 times, how could I move forward? So we sold land to Khazanah at 5% above market,” Wan Abdullah explains.
“Now that five years have passed, we are in a position to take it back at a fair price.”
Another crucial focus for UEM Land, he adds, will be to create employment.
“For example, look at SiLC (Southern Industrial and Logistics Cluster). For the past four years we were happily selling industrial land. But when people buy these lots, they take their time to build the factories. We cannot allow our future to be determined by their fancy.
“We have to drive this ourselves. Because of that, we are at advanced discussions with an international industrial player to build an industrial park.
“We hope to sign the collaboration soon and will build factories to be sold or leased, so that when people buy them, they will immediately kickstart operations.”
The way he sees it, there is much opportunity for this because “Singapore is pushing out its small and medium enterprises”.
“It is not efficient for them to be in Singapore due to high cost and other reasons. We have the opportunity to receive all these new investments. I can jolly well continue to sell industrial land and make money, but that doesn’t serve the township as a whole.
“As a developer, we don’t just build, we have to script it right.”
On the firm’s regional expansion, Wan Abdullah says this is still “in its infancy”.
“When we spoke about expanding regionally, the analysts and fund managers got a bit excited, but not positively. They said, ‘These guys just learnt to start walking and now they want to run, and when they run too fast they are going to fall down and hurt themselves’.
“Give us more credit, we would not be so silly to do that. These are the early days. We are not going to jump in and buy 1,000 acres in India or Vietnam.
“But we have to start taking baby steps or people will say three years from now that we didn’t consider the region.”
Closer to home, UEM Land is set to launch the second phase of its Arcoris mixed development in Mont Kiara comprising 366 small office home office (SoHo) units.
Its business suites launched last year have been 100% sold out, according to UEM Land development division project director Raymond Cheah.
Wan Abdullah is quick to point out that Arcoris is only the third development in Malaysia to be designed by Foster and Partners, whose résumé include London’s iconic Gherkin tower and Wembley Stadium.
The other two projects designed by the architecture firm here are Universiti Teknologi Petronas in Perak and Bandar Raya Developments Bhd’s The Troika in downtown Kuala Lumpur.
The six acre, freehold, 1.44 million gross floor area Arcoris is UEM Land’s first development to feature five components, namely the SoHo, business suites, hotel, serviced residences, and retail. The latter three have yet to make their debut.
Cheah calls Arcoris the “last piece of the puzzle” in Mont Kiara. The SoHo will occupy 25 storeys of the south block, with sizes ranging from 500 sq ft to 1,000 sq ft.
Based on past records, the 700 sq ft units tend to be the most saleable, Cheah shares. Prices are between RM900 and RM1,000 per sq ft.
Market research done by UEM Land indicates that price-wise, the SoHo is within reach of 62% of the population.
Arcoris is geomancy-compliant and is seeking a green rating to boost its appeal. The RM960mil-GDV project is scheduled for completion by the first quarter of 2016.
A private preview will be held later this month before the public launch, Cheah notes.
Another feature to look out for is the hotel as it would effectively be the first in Mont Kiara, the nearest hotels being Eastin and The Royale Bintang The Curve.
“There is pent up demand that people may not be aware of yet,” Cheah says, referring to its potential to attract business travellers heading to Matrade’s upcoming one million sq ft trade and exhibition centre in Jalan Duta.
By The Star
“When we got listed in 2008, we told the media and analysts where we were going,” he tells StarBizWeek in an interview.
“When the time was right, we raised almost RM1bil through a rights issue. Even before we were listed we did the de-gearing exercise with Khazanah Nasional Bhd.
“And because of our need to diversify in terms of location, which we were taking too long to do organically, we acquired Sunrise.”
The hotly-debated RM1.39bil takeover of influential ex-banker Datuk Tong Kooi Ong’s listed vehicle, which was Mont Kiara’s master planner, immediately solved a few strategic objectives.
“Among others, we needed the right brand and skill set. In those days, UEM Land was a township developer. We can build high rises, but at what level of class, efficiency and market intelligence?” Wan Abdullah asks.
“Via the Sunrise team, we had that practically overnight. They had a strong balance sheet and a good track record in not only product delivery but also the financial aspects.”
“Now,” he adds, “we just need to ramp up earnings.”
“We have a huge five-year target. Corporate governance rules do not allow me to share this, but you will probably laugh and think it is a bad joke. It’s a very steep growth trajectory.
“Our 2012 headline key performance indicators will give you an indication,” he says, referring to its target to achieve 50% growth in revenue, 40% in net profit and return on equity of 10%.
“Those are big numbers in a property climate which is uncertain as we speak. While we have all these constraints, we are still pushing ahead with our agenda. I believe we have very good prospects, and the single biggest factor we are hanging our optimism on is Nusajaya.”
The 23,875-acre Nusajaya, of which UEM Land is master developer, is one of five flagship zones in Iskandar Malaysia, the country’s first economic growth corridor.
Wan Abdullah enthuses: “SP Setia has said it is focusing on Johor, and Mah Sing is also reinvesting in Johor. These people can’t be wrong in their reading of the market and the demand.
“Everyone is rushing into Iskandar, and it is not by accident. We have been working day in and day out for this.”
The key to this growth, he points out, is two-pronged. There will be new catalyst projects unveiled towards the fourth quarter for Nusajaya, the likes of which investors and analysts got a peek of at the CIMB Asean Conference earlier this week.
In a research note, CIMB analyst Terence Wong says the management previewed Gerbang Nusajaya, a 4,500-acre, RM18bil gross development value (GDV) township envisaged as the gateway to Iskandar Malaysia for those entering from Singapore.
Some of its proposed projects include an AutoCity test track and a trade centre.
“UEM Land’s original blank canvas of 24,000 acres in Nusajaya is finally reaching a tipping point. Recent strong sales (85% take-up for Imperia and close to 100% for Somerset Puteri Harbour) attest to the attraction of the township,” Wong remarks.
“The company is the best play on Iskandar Malaysia as it has close to 8,000 acres of undeveloped landbank in Nusajaya alone, which lies in the heart of Iskandar Malaysia.”
It has also made two major land purchases totalling RM579mil so far this year, a sign that it is not resting on its laurels despite already being the largest private landowner in Johor.
In April, it bought 122.28 acres near Puteri Harbour for RM93.2mil from Tanjung Bidara Ventures Sdn Bhd, a wholly-owned subsidiary of Khazanah, to be developed into a premier residential enclave featuring canal-front homes and high-end condominiums.
The land actually forms part of a larger 4,500 acres it had disposed to Khazanah in a de-gearing exercise in 2006.
“We needed a white knight (at the time). In 2007, nobody cared about us. Our gearing was 18 times, how could I move forward? So we sold land to Khazanah at 5% above market,” Wan Abdullah explains.
“Now that five years have passed, we are in a position to take it back at a fair price.”
Another crucial focus for UEM Land, he adds, will be to create employment.
“For example, look at SiLC (Southern Industrial and Logistics Cluster). For the past four years we were happily selling industrial land. But when people buy these lots, they take their time to build the factories. We cannot allow our future to be determined by their fancy.
“We have to drive this ourselves. Because of that, we are at advanced discussions with an international industrial player to build an industrial park.
“We hope to sign the collaboration soon and will build factories to be sold or leased, so that when people buy them, they will immediately kickstart operations.”
The way he sees it, there is much opportunity for this because “Singapore is pushing out its small and medium enterprises”.
“It is not efficient for them to be in Singapore due to high cost and other reasons. We have the opportunity to receive all these new investments. I can jolly well continue to sell industrial land and make money, but that doesn’t serve the township as a whole.
“As a developer, we don’t just build, we have to script it right.”
On the firm’s regional expansion, Wan Abdullah says this is still “in its infancy”.
“When we spoke about expanding regionally, the analysts and fund managers got a bit excited, but not positively. They said, ‘These guys just learnt to start walking and now they want to run, and when they run too fast they are going to fall down and hurt themselves’.
“Give us more credit, we would not be so silly to do that. These are the early days. We are not going to jump in and buy 1,000 acres in India or Vietnam.
“But we have to start taking baby steps or people will say three years from now that we didn’t consider the region.”
Closer to home, UEM Land is set to launch the second phase of its Arcoris mixed development in Mont Kiara comprising 366 small office home office (SoHo) units.
Its business suites launched last year have been 100% sold out, according to UEM Land development division project director Raymond Cheah.
Wan Abdullah is quick to point out that Arcoris is only the third development in Malaysia to be designed by Foster and Partners, whose résumé include London’s iconic Gherkin tower and Wembley Stadium.
The other two projects designed by the architecture firm here are Universiti Teknologi Petronas in Perak and Bandar Raya Developments Bhd’s The Troika in downtown Kuala Lumpur.
The six acre, freehold, 1.44 million gross floor area Arcoris is UEM Land’s first development to feature five components, namely the SoHo, business suites, hotel, serviced residences, and retail. The latter three have yet to make their debut.
Cheah calls Arcoris the “last piece of the puzzle” in Mont Kiara. The SoHo will occupy 25 storeys of the south block, with sizes ranging from 500 sq ft to 1,000 sq ft.
Based on past records, the 700 sq ft units tend to be the most saleable, Cheah shares. Prices are between RM900 and RM1,000 per sq ft.
Market research done by UEM Land indicates that price-wise, the SoHo is within reach of 62% of the population.
Arcoris is geomancy-compliant and is seeking a green rating to boost its appeal. The RM960mil-GDV project is scheduled for completion by the first quarter of 2016.
A private preview will be held later this month before the public launch, Cheah notes.
Another feature to look out for is the hotel as it would effectively be the first in Mont Kiara, the nearest hotels being Eastin and The Royale Bintang The Curve.
“There is pent up demand that people may not be aware of yet,” Cheah says, referring to its potential to attract business travellers heading to Matrade’s upcoming one million sq ft trade and exhibition centre in Jalan Duta.
By The Star
Is there a real reprieve in prices?
NOW that we are in the middle of 2012, it is probably a known and accepted fact that the property market is taking a long-awaited breather, after a steep and breathless uphill climb in 2010 and last year.
Prices and rental in a most parts of the Klang Valley have come down. In some hotspots that have seen the steepest price increase the last couple of years, rental and prices have come down marginally since the last quarter of 2011 and this trend has continued until today. It is likely this trend will continue well into the second half of this year.
It is not that there is no longer demand for these properties. There is demand, but the prices have been bidded up to such a degree that potential buyers are beginning to ask themselves if they are over-paying. Some may even ask if there are fundamentals to support such high prices. In short, they have decided to walk away.
Whether they are prepared to over-pay or whether there are fundamentals to support these high prices are two different things. This is because buying a house is – or can be – an emotional affair.
Some are willing to over-pay because they really like the property, or its location and the amenities that come with it. Or they may be concerned that if they do not buy now, prices may go up further.
So, despite the suspicion that they may be over-paying, they decide to go ahead with the purchase. This is particularly so if they are renting.
As for whether there are fundamentals to support prices that go up, up and up, well often, there isn’t. The same infrastructure is there, and the environment has remained status quo. But prices have moved up and buyers wonder – what’s the rationale? Buyers are beginning to question and that is good.
The secondary market – where buyers buy directly from property owners – may be a more realistic gauge of the sentiment prevailing in the property market.
There is less speculation in the secondary market. Those who shop for a house in the classifieds would already know the purpose of his purchase. He would more or less know how he is going to finance it because he has to pay for the property in full, upon signing the sales and purchase agreement. He would also have to go about seeking the services of a lawyer, if he does not have one already, and the mortgage loan would also have to be sorted out.
In other words, the outlay would be greater – emotionally, financially and physically – as there is much running around after a decision is made for a particular property.
It is only in the primary market, where buyers buy directly from the developers, that the speculative element is more evident. Amid the razzmatazz and the party spirit of the moment, a buyer just pays the 10% he is required to and sits back with the availability of today’s interest bearing schemes. He need not think too much about what he is going to do with it, or how he is going to finance the purchase until two to three years later. If he does not want to begin his loan repayment, he can sell it.
It is here, therefore, in the primary market, that the speculative element is more evident. Last year, developers had multiple launches. Their intention was to lock in sales while the going was good.
This year, the situation has changed somewhat. There is a lot more caution, both in the secondary and the primary market, as evidenced by less launches by developers, and slower sales in the secondary market. Unlike last year, a developer has to do a lot more marketing and promotion in order to lock in sales now.
Nevertheless, despite the slower sales, there seems to be no let up in the prices as they remain high, with developers justifying their prices with increasing cost of construction.
As we enter the second half of 2012, the worsening crisis in the eurozone will cast some uncertainty over the market, although indirectly. Already, exports for April have contracted, although marginally. This may filter down to the property market.
Those who buy with a clear focus and objective will continue to execute their decision. Those who are more uncertain why they are buying may take a wait-and-see approach, or if they really like a property and are certain of its potential, may just take out the cheque book.
Deputy news editor Thean Lee Cheng wonders how the Greek election tomorrow will turn out as it may open up a new chapter for the eurozone. We in Malaysia will not be immune to what’s happening in Europe.
By The Star
Prices and rental in a most parts of the Klang Valley have come down. In some hotspots that have seen the steepest price increase the last couple of years, rental and prices have come down marginally since the last quarter of 2011 and this trend has continued until today. It is likely this trend will continue well into the second half of this year.
It is not that there is no longer demand for these properties. There is demand, but the prices have been bidded up to such a degree that potential buyers are beginning to ask themselves if they are over-paying. Some may even ask if there are fundamentals to support such high prices. In short, they have decided to walk away.
Whether they are prepared to over-pay or whether there are fundamentals to support these high prices are two different things. This is because buying a house is – or can be – an emotional affair.
Some are willing to over-pay because they really like the property, or its location and the amenities that come with it. Or they may be concerned that if they do not buy now, prices may go up further.
So, despite the suspicion that they may be over-paying, they decide to go ahead with the purchase. This is particularly so if they are renting.
As for whether there are fundamentals to support prices that go up, up and up, well often, there isn’t. The same infrastructure is there, and the environment has remained status quo. But prices have moved up and buyers wonder – what’s the rationale? Buyers are beginning to question and that is good.
The secondary market – where buyers buy directly from property owners – may be a more realistic gauge of the sentiment prevailing in the property market.
There is less speculation in the secondary market. Those who shop for a house in the classifieds would already know the purpose of his purchase. He would more or less know how he is going to finance it because he has to pay for the property in full, upon signing the sales and purchase agreement. He would also have to go about seeking the services of a lawyer, if he does not have one already, and the mortgage loan would also have to be sorted out.
In other words, the outlay would be greater – emotionally, financially and physically – as there is much running around after a decision is made for a particular property.
It is only in the primary market, where buyers buy directly from the developers, that the speculative element is more evident. Amid the razzmatazz and the party spirit of the moment, a buyer just pays the 10% he is required to and sits back with the availability of today’s interest bearing schemes. He need not think too much about what he is going to do with it, or how he is going to finance the purchase until two to three years later. If he does not want to begin his loan repayment, he can sell it.
It is here, therefore, in the primary market, that the speculative element is more evident. Last year, developers had multiple launches. Their intention was to lock in sales while the going was good.
This year, the situation has changed somewhat. There is a lot more caution, both in the secondary and the primary market, as evidenced by less launches by developers, and slower sales in the secondary market. Unlike last year, a developer has to do a lot more marketing and promotion in order to lock in sales now.
Nevertheless, despite the slower sales, there seems to be no let up in the prices as they remain high, with developers justifying their prices with increasing cost of construction.
As we enter the second half of 2012, the worsening crisis in the eurozone will cast some uncertainty over the market, although indirectly. Already, exports for April have contracted, although marginally. This may filter down to the property market.
Those who buy with a clear focus and objective will continue to execute their decision. Those who are more uncertain why they are buying may take a wait-and-see approach, or if they really like a property and are certain of its potential, may just take out the cheque book.
Deputy news editor Thean Lee Cheng wonders how the Greek election tomorrow will turn out as it may open up a new chapter for the eurozone. We in Malaysia will not be immune to what’s happening in Europe.
By The Star
Chong Wei ventures into property business
KUALA LUMPUR: World number one badminton player Datuk Lee Chong Wei has made his maiden venture into the property business with a condominium project in Ampang with a gross development value of RM160 million.
Called A Residency D' Suria Condominium, the 18-storey project, located in Ampang Hilir here, will be launched by September. The project is expected to be completed by 2014.
Lee, via his set-up Chong Wei Binajaya Sdn Bhd, has teamed up with Perak-based property player SSF Corp to implement the project.
The condominium units are priced between RM500,000 and over RM1 million, depending on built-up area.
"We have already sold 40 per cent of the 252 units available due to its strategic location and are confident it will get a good response," SSF group executive director Major Datuk Wayne Chew told reporters yesterday.
Chew said Chong Wei Binajaya is a subsidiary of SSF but he declined to reveal details of the partnership.
Privately held SSF was established in 1995 and started as a contractor.
To date, it has built more than 1,000 homes, mainly in Perak, which include joint ventures with the state government. It plans to expand to the Klang Valley, Penang and Johor.
A Residency is the company's second project in Kuala Lumpur after Residency Duta Suria, which is also a condominium project and is situated next to A Residency.
By Business Times
Called A Residency D' Suria Condominium, the 18-storey project, located in Ampang Hilir here, will be launched by September. The project is expected to be completed by 2014.
Lee, via his set-up Chong Wei Binajaya Sdn Bhd, has teamed up with Perak-based property player SSF Corp to implement the project.
The condominium units are priced between RM500,000 and over RM1 million, depending on built-up area.
"We have already sold 40 per cent of the 252 units available due to its strategic location and are confident it will get a good response," SSF group executive director Major Datuk Wayne Chew told reporters yesterday.
Chew said Chong Wei Binajaya is a subsidiary of SSF but he declined to reveal details of the partnership.
Privately held SSF was established in 1995 and started as a contractor.
To date, it has built more than 1,000 homes, mainly in Perak, which include joint ventures with the state government. It plans to expand to the Klang Valley, Penang and Johor.
A Residency is the company's second project in Kuala Lumpur after Residency Duta Suria, which is also a condominium project and is situated next to A Residency.
By Business Times
Mulpha Land targets record sales this year
PETALING JAYA: Boutique developer Mulpha Land Bhd is targeting record sales of RM60 million to RM70 million in the current year, led by its Bangsar Enclave project in Kuala Lumpur.
Bangsar Enclave comprises seven units of three-storey bungalows in a gated and guarded community.
The project, with a green architecture concept and located at Jalan Medang Tanduk in Bangsar, will be completed in four months.
Mulpha Land executive director, Ghazie Yeoh Abdullah said each unit will be selling at RM12 million and above.
The company is positive on the take-up as it has a ready market.
He said Mulpha Land has a strong following from the Middle East buyers who are looking for homes here, to buy in bulk or individual units.
"The reach to the Middle East has been in our past organisation where we have constructed several projects in Saudi Arabia. We have a strong network there," Ghazie told Business Times yesterday after the company's shareholders meeting.
Mulpha Land is the property arm of Mulpha International Bhd, a diversified group.
The company's other ongoing projects are Bukit Punchor in Penang, Desa Aman in Kulim, Kedah, and Raintree Residence in Ampang.
The projects, including Bangsar Enclave, have a combined gross development value of about RM800 million, Ghazie said.
He said Raintree Residence, located opposite the Raintree Club at Jalan Wickham in the diplomatic enclave of Ampang Hilir and U-Thant, comprises 12 units and they will be retained for recurring income.
"Our current focus is to complete all current projects and realise our profitability. Long-term plans include focusing on projects in Kuala Lumpur, Selangor and in the northern states," he said.
For fiscal 2011, Mulpha Land posted a pre-tax profit of RM1.62 million on revenues of RM17.85 million.
In the first quarter of 2012, it recorded a pre-tax loss of RM601,000 on revenues of RM637,000.
The stock fell 2.5 sen yesterday, to close at 57.5 sen.
Mulpha Land deputy chief executive officer for property division Ronn Yong said he is positive on the outlook for the luxury segment of the property market.
"With the votality of the euro crises, a lot of people are hegding on properties. The rich are not affected and that is driving sales of our high-end properties," Yong said.
By Business Times
Bangsar Enclave comprises seven units of three-storey bungalows in a gated and guarded community.
The project, with a green architecture concept and located at Jalan Medang Tanduk in Bangsar, will be completed in four months.
Mulpha Land executive director, Ghazie Yeoh Abdullah said each unit will be selling at RM12 million and above.
The company is positive on the take-up as it has a ready market.
He said Mulpha Land has a strong following from the Middle East buyers who are looking for homes here, to buy in bulk or individual units.
"The reach to the Middle East has been in our past organisation where we have constructed several projects in Saudi Arabia. We have a strong network there," Ghazie told Business Times yesterday after the company's shareholders meeting.
Mulpha Land is the property arm of Mulpha International Bhd, a diversified group.
The company's other ongoing projects are Bukit Punchor in Penang, Desa Aman in Kulim, Kedah, and Raintree Residence in Ampang.
The projects, including Bangsar Enclave, have a combined gross development value of about RM800 million, Ghazie said.
He said Raintree Residence, located opposite the Raintree Club at Jalan Wickham in the diplomatic enclave of Ampang Hilir and U-Thant, comprises 12 units and they will be retained for recurring income.
"Our current focus is to complete all current projects and realise our profitability. Long-term plans include focusing on projects in Kuala Lumpur, Selangor and in the northern states," he said.
For fiscal 2011, Mulpha Land posted a pre-tax profit of RM1.62 million on revenues of RM17.85 million.
In the first quarter of 2012, it recorded a pre-tax loss of RM601,000 on revenues of RM637,000.
The stock fell 2.5 sen yesterday, to close at 57.5 sen.
Mulpha Land deputy chief executive officer for property division Ronn Yong said he is positive on the outlook for the luxury segment of the property market.
"With the votality of the euro crises, a lot of people are hegding on properties. The rich are not affected and that is driving sales of our high-end properties," Yong said.
By Business Times
Tambun Indah to expand landbank
PETALING JAYA: Property developer Tambun Indah Land Bhd is seeking to increase its land bank size, particularly in the Klang Valley.
The company hoped to use the RM44.2mil, which was raised with the completion of its two-for-five rights issue on June 4, 2012, as well as expected positive cashflow from progressive billings of increase properties sold last year, to fund the land expansion, said managing director Teh Kiak Seng.
“Since our inception in 1994, we have developed a reputation as an innovative and premier property developer in Penang.
“Now, we are ready to expand and look at opportunities available to us elsewhere. We are now casting our net wider and hope to buy new land banks in the Klang Valley and other areas where we can develop projects on our own and, or work in collaboration with a joint-venture partner. With that, we can then take the Tambun Indah brand name to other states,” Teh said in a statement.
The group currently has an existing land bank of around 716.5 acres, mostly situated in Seberang Prai.
However, Teh added that he still believed in the robust strength of the Penang property market. Last year, the total number of residential units that were sold in Penang climbed 68.2% to 30,674 from 18,233 in 2010, while the total value of property transactions rose 59.8% to RM7.7bil.
The Penang Institute data show a 50% average rise in Penang property price since 2007, with condominiums on the island rising by 82%, and terraced and semi-detached or detached units on the mainland climbing by 25% and 30% respectively.
Teh added:“Furthermore, if the current trends continue, prices are expected to rise by a further 20% to 30% over the next few years. This level of market demand is good for the industry as a whole.
“We believe that Tambun Indah is poised to take opportunities from this (situation). Judging by the take-up trends experienced thus far by the group's launches in the first half of 2012, and the two projects that we intend to launch soon. I am optimistic on our performance this year.”
Meanwhile, Tambun Indah announced a first and final dividend of 3.8 sen per share for the financial year ended Dec 31, 2011. This translates to RM11.8mil and represents 50.3% of its net profit for the year.
By The Star
The company hoped to use the RM44.2mil, which was raised with the completion of its two-for-five rights issue on June 4, 2012, as well as expected positive cashflow from progressive billings of increase properties sold last year, to fund the land expansion, said managing director Teh Kiak Seng.
“Since our inception in 1994, we have developed a reputation as an innovative and premier property developer in Penang.
“Now, we are ready to expand and look at opportunities available to us elsewhere. We are now casting our net wider and hope to buy new land banks in the Klang Valley and other areas where we can develop projects on our own and, or work in collaboration with a joint-venture partner. With that, we can then take the Tambun Indah brand name to other states,” Teh said in a statement.
The group currently has an existing land bank of around 716.5 acres, mostly situated in Seberang Prai.
However, Teh added that he still believed in the robust strength of the Penang property market. Last year, the total number of residential units that were sold in Penang climbed 68.2% to 30,674 from 18,233 in 2010, while the total value of property transactions rose 59.8% to RM7.7bil.
The Penang Institute data show a 50% average rise in Penang property price since 2007, with condominiums on the island rising by 82%, and terraced and semi-detached or detached units on the mainland climbing by 25% and 30% respectively.
Teh added:“Furthermore, if the current trends continue, prices are expected to rise by a further 20% to 30% over the next few years. This level of market demand is good for the industry as a whole.
“We believe that Tambun Indah is poised to take opportunities from this (situation). Judging by the take-up trends experienced thus far by the group's launches in the first half of 2012, and the two projects that we intend to launch soon. I am optimistic on our performance this year.”
Meanwhile, Tambun Indah announced a first and final dividend of 3.8 sen per share for the financial year ended Dec 31, 2011. This translates to RM11.8mil and represents 50.3% of its net profit for the year.
By The Star
Cahaya Alam offers aesthetics, functionality and after-sales services
FOR many, buying a house is not about the purchase of blocks of concrete and a patch green, it is about owning a place to be with loved ones.
This is the principle, property developer, Encorp Bhd adopts when creating its township in Section U12, Shah Alam.
The township, Cahaya Alam, made mainly of residential projects is sited on 209 acres of leasehold land with a gross development value of RM800mil.
Since commencement of the project in 2004, Encorp has developed about half of the township.
Beyond just developing houses, Encorp has a community-focused approach to ensure quality living for its residents.
Besides its current landscaping ideas and common facilities like the 1km linear park that runs through the township, Encorp is looking to build a community hall.
“This community hall is going to be different because we want to manage it. We will organise other events that will be useful for families like educational activities, a tuition centre, music centre and other recreational activities,” executive chairman Datuk Seri Effendi Norwawi says.
“We’re exploring the possibilities to ensure the place is well-utilised and kept in tip-top condition. We want residents to feel that they are part of an Encorp community,” he says, adding that Encorp will work with a joint-management committee for this.
Effendi says a lot of thought has gone into the planning and designing of the houses.
“From the beginning, we think of everything that will give the house real value for the buyer. Buyers start with the aesthetic, as always the case. So we work hard on the aesthetic by detailing the layout and functionality of the house,” he tells StarBizWeek.
“We think of every user living there – the husband, wife, the children – and how can the house be as practical and as user-friendly as possible,” he adds.
Encorp emphasises on innovation in its product offering and one selling point they have is after-sales services.
Encorp will be providing renovation and furniture packages as well as home repair services.
“This is what we call the Encorp experience. Homebuyers always spend a few hundred of thousands on renovation. It’s wasteful,” he says.
“We have various packages, depending on what you can afford. For example, instead of a spending RM45,000, our package can be RM34,000 because we can do it cheaper and yet maintain the quality,” he explains.
Encorp also promises to respond to requests for home repairs within the hour.
“We don’t make profit from these services. We just want to earn within the reasonable margin based on market value,” he says of Encorp’s approach.
Furthermore, Encorp has also come up with easy entry financial schemes to help young buyers to purchase homes.
It is working with a panel of financial institutions for its schemes that allows buyers to pay 2% or 5% up-front with the sale and purchase agreement legal fees and stamp duty waived.
The schemes are interest-free during construction and buyers will only need to begin mortgage payment after the keys are handed over.
Last weekend, Encorp launched two phases of its medium to upper-market range properties known as Frangipani and Lotus.
Frangipani Phase 3 has 58 units with a price tag of RM684,000 to RM700,000. These are multi-facade superlink houses that come with different external designs to give the illusion that the two and a half storey houses are not linked.
The built-up area ranges from 2,169 sq ft to 2,749 sq ft.
Encorp’s first semi-detached houses, Lotus is now in its Phase 2 and has 36 units priced between RM1mil to RM1.2mil. Lotus has two and three-storey units with built-up area of between 2,980 sq ft and 4,610 sq ft.
Effendi says the Lotus project is Encorp’s “first attempt at semi-detached houses because the market can take it now.” He is referring to the change in buying power in the last two years as more have been able to afford homes in the upper-market range.
Both Frangipani and Lotus were first launched last year. Frangipani is now in its last phase but Lotus has another phase to be launched in the last quarter of this year.
Effendi says that Cahaya Alam has enjoyed about 80% word-of-mouth sales as customers encouraged their family and friends to be part of their neighbourhood. He also notes that there are some repeat buyers, with more new buyers coming from Klang and Cheras.
Cahaya Alam property has enjoyed more than 60% price appreciation the last two years. As an indication, its middle-market Camellia 2 houses which were selling for RM360,000 in 2010 are receiving offers of nearly RM600,000 now.
Despite the appreciation, Encorp continues to target families and home-occupiers instead of investors. While this category of homebuyers may not buy and sell properties the way investors would, Effendi said that families can always look to upgrade to the upper-market units.
Putting things into perspective, Encorp has perhaps set a smooth path to benefit its own customers over the course of its Cahaya Alam township development.
Its previous projects in Cahaya Alam, such as Rosselle, Jasmin, Camellia 1 and Camellia 2, were within the middle-market range.
The company is also embarking on a new masterplan to develop the remaining 90-odd acres. This would have a resort lifestyle design and concept.
Encorp is planning four more projects to build two and three-storey terraces and zero-lot bungalows. The four upcoming precincts will be gated and guarded, with water features and landscaping.
Encorp estimates to complete these upper-market projects by 2018.
Cahaya Alam only has one commercial development, Magnolia, which are shop-offices currently under construction on 7.7 acres.
The township, surrounded by the New Klang Valley Expressway, Federal Highway and NKVE-MERU Link, is a joint venture between Encorp and the Selangor State Development Corporation.
By The Star
This is the principle, property developer, Encorp Bhd adopts when creating its township in Section U12, Shah Alam.
The township, Cahaya Alam, made mainly of residential projects is sited on 209 acres of leasehold land with a gross development value of RM800mil.
Since commencement of the project in 2004, Encorp has developed about half of the township.
Beyond just developing houses, Encorp has a community-focused approach to ensure quality living for its residents.
Besides its current landscaping ideas and common facilities like the 1km linear park that runs through the township, Encorp is looking to build a community hall.
“This community hall is going to be different because we want to manage it. We will organise other events that will be useful for families like educational activities, a tuition centre, music centre and other recreational activities,” executive chairman Datuk Seri Effendi Norwawi says.
“We’re exploring the possibilities to ensure the place is well-utilised and kept in tip-top condition. We want residents to feel that they are part of an Encorp community,” he says, adding that Encorp will work with a joint-management committee for this.
Effendi says a lot of thought has gone into the planning and designing of the houses.
“From the beginning, we think of everything that will give the house real value for the buyer. Buyers start with the aesthetic, as always the case. So we work hard on the aesthetic by detailing the layout and functionality of the house,” he tells StarBizWeek.
“We think of every user living there – the husband, wife, the children – and how can the house be as practical and as user-friendly as possible,” he adds.
Encorp emphasises on innovation in its product offering and one selling point they have is after-sales services.
Encorp will be providing renovation and furniture packages as well as home repair services.
“This is what we call the Encorp experience. Homebuyers always spend a few hundred of thousands on renovation. It’s wasteful,” he says.
“We have various packages, depending on what you can afford. For example, instead of a spending RM45,000, our package can be RM34,000 because we can do it cheaper and yet maintain the quality,” he explains.
Encorp also promises to respond to requests for home repairs within the hour.
“We don’t make profit from these services. We just want to earn within the reasonable margin based on market value,” he says of Encorp’s approach.
Furthermore, Encorp has also come up with easy entry financial schemes to help young buyers to purchase homes.
It is working with a panel of financial institutions for its schemes that allows buyers to pay 2% or 5% up-front with the sale and purchase agreement legal fees and stamp duty waived.
The schemes are interest-free during construction and buyers will only need to begin mortgage payment after the keys are handed over.
Last weekend, Encorp launched two phases of its medium to upper-market range properties known as Frangipani and Lotus.
Frangipani Phase 3 has 58 units with a price tag of RM684,000 to RM700,000. These are multi-facade superlink houses that come with different external designs to give the illusion that the two and a half storey houses are not linked.
The built-up area ranges from 2,169 sq ft to 2,749 sq ft.
Encorp’s first semi-detached houses, Lotus is now in its Phase 2 and has 36 units priced between RM1mil to RM1.2mil. Lotus has two and three-storey units with built-up area of between 2,980 sq ft and 4,610 sq ft.
Effendi says the Lotus project is Encorp’s “first attempt at semi-detached houses because the market can take it now.” He is referring to the change in buying power in the last two years as more have been able to afford homes in the upper-market range.
Both Frangipani and Lotus were first launched last year. Frangipani is now in its last phase but Lotus has another phase to be launched in the last quarter of this year.
Effendi says that Cahaya Alam has enjoyed about 80% word-of-mouth sales as customers encouraged their family and friends to be part of their neighbourhood. He also notes that there are some repeat buyers, with more new buyers coming from Klang and Cheras.
Cahaya Alam property has enjoyed more than 60% price appreciation the last two years. As an indication, its middle-market Camellia 2 houses which were selling for RM360,000 in 2010 are receiving offers of nearly RM600,000 now.
Despite the appreciation, Encorp continues to target families and home-occupiers instead of investors. While this category of homebuyers may not buy and sell properties the way investors would, Effendi said that families can always look to upgrade to the upper-market units.
Putting things into perspective, Encorp has perhaps set a smooth path to benefit its own customers over the course of its Cahaya Alam township development.
Its previous projects in Cahaya Alam, such as Rosselle, Jasmin, Camellia 1 and Camellia 2, were within the middle-market range.
The company is also embarking on a new masterplan to develop the remaining 90-odd acres. This would have a resort lifestyle design and concept.
Encorp is planning four more projects to build two and three-storey terraces and zero-lot bungalows. The four upcoming precincts will be gated and guarded, with water features and landscaping.
Encorp estimates to complete these upper-market projects by 2018.
Cahaya Alam only has one commercial development, Magnolia, which are shop-offices currently under construction on 7.7 acres.
The township, surrounded by the New Klang Valley Expressway, Federal Highway and NKVE-MERU Link, is a joint venture between Encorp and the Selangor State Development Corporation.
By The Star
Friday, June 15, 2012
Easy ownership scheme for Mah Sing property
Property developer Mah Sing Group Bhd is offering attractive price rebates in 11 projects in Kuala Lumpur, Penang and Johor in conjunction with its 18th anniversary celebrations.
Embarking on a property promotion exercise over three months this Saturday, the road show will be held in Kuala Lumpur, Penang and Johor with the theme, Realizing Dreams.
The launch at Shangri-La Hotel Kuala Lumpur on June 16 will have activities for the whole family and will continue the next day. The celebrations which will be attended by celebrities will include entertaining shows.
The other scheduled venues are Equatorial Hotel in Penang from June 22-23 and KSL Hotel in Johor Baru from June 29-30 .
To be hosted by emcees Xandria Ooi and Kevin Chong, the KL launch will feature the China Bond Girls and Shanghai Star Acrobatic Ballet during the opening ceremony at 10.30am.
The internationally-acclaimed China Bond Girls musical group will play instrumental hits while the Shanghai Star Acrobatic Ballet will perform gravity-defying feats over the weekend. The performers will also be in Penang and Johor Baru.
A series of informative talks will include tips for property buyers on enhancing their living space. Experts will teach homeowners on the fine art of cooking, gardening and interior decorating.
Local celebrity Chef Wan will be cooking up a storm at all three venues. Furthermore, Chef Daisy, who specialises in organic recipes and Chef Michael Elfwing of Senses Restaurant in Hilton Kuala Lumpur, will demonstrate their cooking skills during the road show.
Sharing their expertise on transforming a living space into one that resonates with good energy will be Feng Shui guru David Koh and Vasthu Sastra expert T. Selva.
On June 17, a LEED accredited professional will talk about how environmentally-sustainable buildings should be built, rated and occupied. There will be a special animation workshop for teenagers and young children as well as an entertaining robotics dance. Children’s programmes will also be presented on Samsung’s Smart televisions to keep the youngsters occupied throughout the duration of the road show.
Realizing Dreams Showcase
This is the first time the Mah Sing Group is conducting a property and lifestyle showcase on such a scale.
The company is offering special incentives from June 16 to Sept 15 to reward their property buyers who total 12,000 over the past 18 years. The promotion exercise is also aimed at new buyers.
Eleven developments that include landed and high-rise residential property as well as commercial projects in the Klang Valley (including KL), Penang and Johor Baru will be promoted.
Properties have always been viewed as one of the best hedges against inflation, and there are still many buyers looking for good properties in prime locations for their own use or investment.
One of the key objectives of the Realising Dreams Showcase is to make it easier for buyers to own their “dream properties”, with affordable down payment schemes. This include having to pay only 2% down payment via 0% easy payment programmes stretching up to 36 months with selected banks.
Additionally, qualified purchasers will also benefit from the Anniversary Lifestyle Package of up to RM488,888 depending on the property purchased.
During the three-month celebration, property buyers will enjoy benefits of the developer interest bearing scheme (DIBS). They only need to pay the down payment and nothing else until the completion of the property. The properties under this scheme include:
During the showcase, banks participating in the property promotion will offer “Pre-Approved Loan Assessment” as an added convenience for buyers of Mah Sing properties.
Mah Sing’s M Club members - involving loyal customers - will enjoy “Repeat Purchase Discounts” of up to 1.8% while all purchasers will enjoy “Buyer-Get-Buyer Rebates” of 1%.
There will also be weekly activities in all sales galleries of the Mah Sing Group.
By The Star
Embarking on a property promotion exercise over three months this Saturday, the road show will be held in Kuala Lumpur, Penang and Johor with the theme, Realizing Dreams.
The launch at Shangri-La Hotel Kuala Lumpur on June 16 will have activities for the whole family and will continue the next day. The celebrations which will be attended by celebrities will include entertaining shows.
The other scheduled venues are Equatorial Hotel in Penang from June 22-23 and KSL Hotel in Johor Baru from June 29-30 .
To be hosted by emcees Xandria Ooi and Kevin Chong, the KL launch will feature the China Bond Girls and Shanghai Star Acrobatic Ballet during the opening ceremony at 10.30am.
The internationally-acclaimed China Bond Girls musical group will play instrumental hits while the Shanghai Star Acrobatic Ballet will perform gravity-defying feats over the weekend. The performers will also be in Penang and Johor Baru.
A series of informative talks will include tips for property buyers on enhancing their living space. Experts will teach homeowners on the fine art of cooking, gardening and interior decorating.
Local celebrity Chef Wan will be cooking up a storm at all three venues. Furthermore, Chef Daisy, who specialises in organic recipes and Chef Michael Elfwing of Senses Restaurant in Hilton Kuala Lumpur, will demonstrate their cooking skills during the road show.
Sharing their expertise on transforming a living space into one that resonates with good energy will be Feng Shui guru David Koh and Vasthu Sastra expert T. Selva.
On June 17, a LEED accredited professional will talk about how environmentally-sustainable buildings should be built, rated and occupied. There will be a special animation workshop for teenagers and young children as well as an entertaining robotics dance. Children’s programmes will also be presented on Samsung’s Smart televisions to keep the youngsters occupied throughout the duration of the road show.
Realizing Dreams Showcase
This is the first time the Mah Sing Group is conducting a property and lifestyle showcase on such a scale.
The company is offering special incentives from June 16 to Sept 15 to reward their property buyers who total 12,000 over the past 18 years. The promotion exercise is also aimed at new buyers.
Eleven developments that include landed and high-rise residential property as well as commercial projects in the Klang Valley (including KL), Penang and Johor Baru will be promoted.
Properties have always been viewed as one of the best hedges against inflation, and there are still many buyers looking for good properties in prime locations for their own use or investment.
One of the key objectives of the Realising Dreams Showcase is to make it easier for buyers to own their “dream properties”, with affordable down payment schemes. This include having to pay only 2% down payment via 0% easy payment programmes stretching up to 36 months with selected banks.
Additionally, qualified purchasers will also benefit from the Anniversary Lifestyle Package of up to RM488,888 depending on the property purchased.
During the three-month celebration, property buyers will enjoy benefits of the developer interest bearing scheme (DIBS). They only need to pay the down payment and nothing else until the completion of the property. The properties under this scheme include:
- Icon City (Petaling Jaya)
- M City (Jalan Ampang)
- Icon Residence Mont’ Kiara
- Garden Residence & Garden Plaza (Cyberjaya)
- Kinrara Residence (Kinrara)
- Lagenda@Southbay (Penang island)
- Southbay Plaza (Penang island)
- Austin Suites (Johor Bahru)
- Non-DIBS projects include M Residence (Rawang) and Sierra Perdana (Johor Baru).
During the showcase, banks participating in the property promotion will offer “Pre-Approved Loan Assessment” as an added convenience for buyers of Mah Sing properties.
Mah Sing’s M Club members - involving loyal customers - will enjoy “Repeat Purchase Discounts” of up to 1.8% while all purchasers will enjoy “Buyer-Get-Buyer Rebates” of 1%.
There will also be weekly activities in all sales galleries of the Mah Sing Group.
By The Star
Gerbang Nusajaya, with RM18bil GDV, to be launched by end-year
KUALA LUMPUR: UEM Land Holdings Bhd will launch the 4,500acre Gerbang Nusajaya by the end 2012, which will have a gross development value of RM18bil. The project would be developed over 25 years.
UEM Land managing director Datuk Wan Abdullah Wan Ibrahim said the company would form joint ventures as well as look for strategic investors to develop the land.
Abdullah: ‘We are not looking to sell land.’
“We are not looking to sell land,” he said. “We want to generate more recurring income. Gerbang Nusajaya will not just generate income, but also create employment. We will have activity malls, campus offices, trade centres and residential development, among others.”
He also said some RM4.5bil of development projects would come onstream this year and that UEM Land had a target to complete RM3bil worth of sales. Last year, it completed RM2.2bil worth of sales.
Over the next few weeks, UEM Land will be launching its CS-2 apartments in Nusajaya, which Abdullah said would be priced attractively.
He said UEM Land had some RM900mil in cash and a gearing level of about 0.24 times, which gave it a comfortable war chest to acquire more land.
Abdullah said 2012 was its tipping point', and that he would not be surprised if revenue from Nusajaya overtook that from its subsidiary Sunrise Bhd. For 2011, Nusajaya's revenue contribution was 46% versus Sunrise' 54%. In terms of net profit contribution, they were almost evenly matched.
By The Star
UEM Land managing director Datuk Wan Abdullah Wan Ibrahim said the company would form joint ventures as well as look for strategic investors to develop the land.
“We are not looking to sell land,” he said. “We want to generate more recurring income. Gerbang Nusajaya will not just generate income, but also create employment. We will have activity malls, campus offices, trade centres and residential development, among others.”
He also said some RM4.5bil of development projects would come onstream this year and that UEM Land had a target to complete RM3bil worth of sales. Last year, it completed RM2.2bil worth of sales.
Over the next few weeks, UEM Land will be launching its CS-2 apartments in Nusajaya, which Abdullah said would be priced attractively.
He said UEM Land had some RM900mil in cash and a gearing level of about 0.24 times, which gave it a comfortable war chest to acquire more land.
Abdullah said 2012 was its tipping point', and that he would not be surprised if revenue from Nusajaya overtook that from its subsidiary Sunrise Bhd. For 2011, Nusajaya's revenue contribution was 46% versus Sunrise' 54%. In terms of net profit contribution, they were almost evenly matched.
By The Star
UEM to start work on Johor project by Dec
UEM Land Holdings Bhd, Malaysia's largest property developer by market capitalisation, aims to start works on Gerbang Nusajaya, its new project in Johor worth RM18 billion, by the end of the year.
The 1,875ha development is located next to Nusajaya, one of five key nodes of Johor's Iskandar Malaysia economic growth corridor.
UEM Land, the real estate investment and development arm of UEM Group Bhd and Khazanah Nasional Bhd, is the master developer of Nusajaya.
Its managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim said the layout plan for Gerbang Nusajaya had been submitted. The project will take 25 years to develop.
"We hope to hit the ground before the end of this year. We are not sure when we will put the products into the market but hope to come up with something by year-end," he said.
Wan Abdullah, speaking to reporters yesterday after the company's shareholders meeting, said the key strategy behind Gerbang Nusajaya is to attract Singaporeans and create jobs.
He said UEM Land will not sell land this time but look for strategic partners to jointly develop it.
"UEM Land has been criticised for lumpy performance from land sales. But there is a major shift now with 74 per cent contribution from property development.
"In the long term, we hope to increase contribution from all our divisions, including investment properties and management," he said.
Gerbang Nusajaya will have residential precincts, a golf course, campus offices, activity-based retail and an industrial park.
"The market is beginning to shine for south Johor. We are leveraging on our proximity to Singapore. If we are not next to Singapore, I don't think we can enjoy the benefits that we are reaping like demand for our properties, and price increases," he said.
CIMB Research is maintaining its trading "buy" call or target price for UEM Land at RM2.56.
Its research head Terence Wong said the potential re-rating catalysts include positive news flow on Nusajaya and strong sales in the second half of 2012.
The stock closed two sen down yesterday to RM1.94
Wan Abdullah said UEM Land will launch new catalyst projects in Johor, including condominiums.
He hopes UEM Land will do better in the current fiscal year, helped by sales from its on-going projects in Johor, Greater Kuala Lumpur and Canada.
UEM Land targets to launch projects to the tune of RM4.5 billion this year, and achieve RM3 billion in sales. It has so far achieved sales of RM600 million.
By Business Times
The 1,875ha development is located next to Nusajaya, one of five key nodes of Johor's Iskandar Malaysia economic growth corridor.
UEM Land, the real estate investment and development arm of UEM Group Bhd and Khazanah Nasional Bhd, is the master developer of Nusajaya.
Its managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim said the layout plan for Gerbang Nusajaya had been submitted. The project will take 25 years to develop.
"We hope to hit the ground before the end of this year. We are not sure when we will put the products into the market but hope to come up with something by year-end," he said.
Wan Abdullah, speaking to reporters yesterday after the company's shareholders meeting, said the key strategy behind Gerbang Nusajaya is to attract Singaporeans and create jobs.
He said UEM Land will not sell land this time but look for strategic partners to jointly develop it.
"UEM Land has been criticised for lumpy performance from land sales. But there is a major shift now with 74 per cent contribution from property development.
"In the long term, we hope to increase contribution from all our divisions, including investment properties and management," he said.
Gerbang Nusajaya will have residential precincts, a golf course, campus offices, activity-based retail and an industrial park.
"The market is beginning to shine for south Johor. We are leveraging on our proximity to Singapore. If we are not next to Singapore, I don't think we can enjoy the benefits that we are reaping like demand for our properties, and price increases," he said.
CIMB Research is maintaining its trading "buy" call or target price for UEM Land at RM2.56.
Its research head Terence Wong said the potential re-rating catalysts include positive news flow on Nusajaya and strong sales in the second half of 2012.
The stock closed two sen down yesterday to RM1.94
Wan Abdullah said UEM Land will launch new catalyst projects in Johor, including condominiums.
He hopes UEM Land will do better in the current fiscal year, helped by sales from its on-going projects in Johor, Greater Kuala Lumpur and Canada.
UEM Land targets to launch projects to the tune of RM4.5 billion this year, and achieve RM3 billion in sales. It has so far achieved sales of RM600 million.
By Business Times
Axis-REIT buying two buildings in PJ
KUALA LUMPUR : Axis Real Estate Investment Trust's (Axis-REIT) trustee, OSK Trustee Bhd, has entered into two sales and purchase agreements to acquire Wisma Academy and the Annex in Petaling Jaya for RM85m il from Academy Resources Sdn Bhd.
“The proposed acquisitions will also enable Axis-REIT to diversify and enlarge its portfolio of properties and is expected to benefit the trust in the long-term as a result of economies of scale,” said Stewart LaBrooy, chief executive officer of Axis REIT Managers Bhd, the manager of the trust.
He said the acquisition was in line with the trust's investment objectives as well as its growth strategy which was to provide unitholders with stable income distribution.
By Bernama
“The proposed acquisitions will also enable Axis-REIT to diversify and enlarge its portfolio of properties and is expected to benefit the trust in the long-term as a result of economies of scale,” said Stewart LaBrooy, chief executive officer of Axis REIT Managers Bhd, the manager of the trust.
He said the acquisition was in line with the trust's investment objectives as well as its growth strategy which was to provide unitholders with stable income distribution.
By Bernama
Thursday, June 14, 2012
Expo offers all kinds of everything under one roof
The Perfect Home Living 2012 will be the perfect place to source for any home or commercial building improvement items and fixtures.
To be held at Stadium Indera Mulia from July 12 to 15, the exposition would showcase anything from furniture to furnishings, decorative items to home entertainment systems.
Perfect Home Living Sdn Bhd executive director Karen Law said visitors would be spoilt for choices with 100 exhibitors taking up 365 booths covering up to 8,000 sqm of exhibition space.
“Visitors will get to choose from a diverse range of quality products and services at affordable prices.
“We are targeting 80,000 visitors throughout the four-day event,” said Law.
The exposition opens from 10am to 10pm daily. Admission is free.
For details, visit www.perfecthomeliving.com.my or call 019-5260187.
By The Star
To be held at Stadium Indera Mulia from July 12 to 15, the exposition would showcase anything from furniture to furnishings, decorative items to home entertainment systems.
Perfect Home Living Sdn Bhd executive director Karen Law said visitors would be spoilt for choices with 100 exhibitors taking up 365 booths covering up to 8,000 sqm of exhibition space.
“Visitors will get to choose from a diverse range of quality products and services at affordable prices.
“We are targeting 80,000 visitors throughout the four-day event,” said Law.
The exposition opens from 10am to 10pm daily. Admission is free.
For details, visit www.perfecthomeliving.com.my or call 019-5260187.
By The Star
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