Another 38 per cent preferred to wait before making any purchases because they believe subsidies will not be phased out.
The remainder expressed indecisiveness and intended to sell their assets, iproperty.com noted.
By Business Times
Saturday, August 14, 2010
Property buyers wary of govt move
SOME 40 per cent of property buyers planned on expected increase in property prices as the government phases out subsidies, a recent iproperty.com study revealed.
Another 38 per cent preferred to wait before making any purchases because they believe subsidies will not be phased out.
The remainder expressed indecisiveness and intended to sell their assets, iproperty.com noted.
By Business Times
Another 38 per cent preferred to wait before making any purchases because they believe subsidies will not be phased out.
The remainder expressed indecisiveness and intended to sell their assets, iproperty.com noted.
By Business Times
HK moves to curb property bubble
HONG KONG: Hong Kong’s government said yesterday it will increase land supply to avoid a property bubble, warning that prices of some flats are approaching historic highs.
John Tsang, the city’s financial secretary, said prices in June were 8 per cent up from the end of 2009, despite a series of measures the government introduced in April to cool the overheating market.
By Business Times
John Tsang, the city’s financial secretary, said prices in June were 8 per cent up from the end of 2009, despite a series of measures the government introduced in April to cool the overheating market.
By Business Times
Friday, August 13, 2010
Cyberjaya to be 30pc complete by year-end
CYBERJAYA'S overall development, encompassing the ambitious MSC Malaysia to leapfrog Malaysia into the information and knowledge age, is expected to be 30 per cent complete by year-end.
Cyberjaya landowner, Cyberview Sdn Bhd, said the township's current level of development has exceeded the target, with investors having injected RM5 billion worth of investments in building construction.
Rashid Mat, general manager for business, corporate communications and planning, said land worth RM390 million was sold last year and RM300 million in 2008, reflecting growing interest by global firms to relocate to Cyberjaya, dubbed the "Intelligent City".
The inflow of notable global multinational corporations (MNCs) into Cyberjaya continue unabated, with Hewlett-Packard (HP), the world's largest technology company headquartered in California, looking to expand its presence in Cyberjaya, Rashid said.
Cyberview has developed 600,000 sq ft of office building on 11.2ha for HP.
It is understood that HP is keen to buy another piece of land to develop a data centre in Cyberjaya. Spanning an area of about 2,800ha, Cyberjaya is home to more than 20 MNCs including Dell, Satyam, HSBC, Motorola, IBM, HP, data centres of Bank Negara Malaysia and Malaysian Communications and Multimedia Commission, universities, commercial zones and residential estates.
In terms of office space, Cyberview said the company is looking to develop 8.04 million sq ft by year-end from the previous five million sq ft target due to growing demand from MNCs and MSC-status companies.
Rashid said many companies are now willing to own a property in Cyberjaya than to rent premises. "We will continue to pursue the plan for foreign companies to set up their operations in Cyberjaya. The demand is not just from MNCs, but also MSC-status companies," he said.
For residential space, Rashid said more developers are starting to develop projects in Cyberjaya and purchase land from Setia Haruman Sdn Bhd, the master developer of Cyberjaya.
"Over 2,900 residential units have been completed, with another 2,300 in the pipeline, including the Garden Residence by Mah Sing Group Bhd and Symphony Hills (by UEM Land Bhd)," he said.
Rashid said Setia Haruman sold RM390 million worth of land in Cyberjaya last year and RM300 million in 2008 which will further alter its landscape into a bustling business enterprise.
By Bernama
Cyberjaya landowner, Cyberview Sdn Bhd, said the township's current level of development has exceeded the target, with investors having injected RM5 billion worth of investments in building construction.
Rashid Mat, general manager for business, corporate communications and planning, said land worth RM390 million was sold last year and RM300 million in 2008, reflecting growing interest by global firms to relocate to Cyberjaya, dubbed the "Intelligent City".
The inflow of notable global multinational corporations (MNCs) into Cyberjaya continue unabated, with Hewlett-Packard (HP), the world's largest technology company headquartered in California, looking to expand its presence in Cyberjaya, Rashid said.
Cyberview has developed 600,000 sq ft of office building on 11.2ha for HP.
It is understood that HP is keen to buy another piece of land to develop a data centre in Cyberjaya. Spanning an area of about 2,800ha, Cyberjaya is home to more than 20 MNCs including Dell, Satyam, HSBC, Motorola, IBM, HP, data centres of Bank Negara Malaysia and Malaysian Communications and Multimedia Commission, universities, commercial zones and residential estates.
In terms of office space, Cyberview said the company is looking to develop 8.04 million sq ft by year-end from the previous five million sq ft target due to growing demand from MNCs and MSC-status companies.
Rashid said many companies are now willing to own a property in Cyberjaya than to rent premises. "We will continue to pursue the plan for foreign companies to set up their operations in Cyberjaya. The demand is not just from MNCs, but also MSC-status companies," he said.
For residential space, Rashid said more developers are starting to develop projects in Cyberjaya and purchase land from Setia Haruman Sdn Bhd, the master developer of Cyberjaya.
"Over 2,900 residential units have been completed, with another 2,300 in the pipeline, including the Garden Residence by Mah Sing Group Bhd and Symphony Hills (by UEM Land Bhd)," he said.
Rashid said Setia Haruman sold RM390 million worth of land in Cyberjaya last year and RM300 million in 2008 which will further alter its landscape into a bustling business enterprise.
By Bernama
Thursday, August 12, 2010
Five architects shortlisted for RM1bil job
KUALA LUMPUR: Sime Darby Sunrise Development Sdn Bhd (SDSD) has shortlisted architectural companies to send in their designs for its RM1bil mixed development project in Bukit Jelutong, Shah Alam.
The five are award-winning architectural firms, namely BIG, J&H Boifills, Benoy, DP Architects and Hijjas Kasturi, who are renowned for their forte in commercial developments and excellent achievements.
Datuk Tong Kooi Ong: We are confident of being successful.
“Our design participants were selected based on their vast and relevant experience in the comprehensive mixed development, international exposure and commitment to sustainability,” Sunrise Bhd’s executive chairman Datuk Tong Kooi Ong said in a statement yesterday.
The shortlisted architects are expected to present their design concept to the SDSD board of directors on Aug 13, 2010 and the winner would be announced at a later date, he said.
On the project in Bukit Jelutong, which would be a 50-50 joint venture between Sime Darby and Sunrise, he said the company was confident of it being as successful as its other projects.
“Having completed three commercial developments under the Sunrise brand, we are confident of replicating our success in Mont’Kiara to other geographical location, setting the benchmark for creative, contextual design and achieving a sustainable development of long-lasting architectural quality,” he said.
Bukit Jelutong is a self-contained and an excellently planned community spread over 2,200 acres of prime freehold land.
It is well served with a transportation network that link to the other towns in the Klang Valley via expressways.
Meanwhile, SDSD’s mixed development project will cover 21 acres and will be part of the strategically planned Bukit Jelutong Commercial Centre that span 120 acres.
The project will have a gross built-up area approximately 2.7 million sq ft, consisting of 80% for retail namely shop-offices and office-suites and 20% for serviced apartments.
Work will begin next year and the project will be developed in five phases and completed in seven years.
By Bernama
The five are award-winning architectural firms, namely BIG, J&H Boifills, Benoy, DP Architects and Hijjas Kasturi, who are renowned for their forte in commercial developments and excellent achievements.
Datuk Tong Kooi Ong: We are confident of being successful.
“Our design participants were selected based on their vast and relevant experience in the comprehensive mixed development, international exposure and commitment to sustainability,” Sunrise Bhd’s executive chairman Datuk Tong Kooi Ong said in a statement yesterday.
The shortlisted architects are expected to present their design concept to the SDSD board of directors on Aug 13, 2010 and the winner would be announced at a later date, he said.
On the project in Bukit Jelutong, which would be a 50-50 joint venture between Sime Darby and Sunrise, he said the company was confident of it being as successful as its other projects.
“Having completed three commercial developments under the Sunrise brand, we are confident of replicating our success in Mont’Kiara to other geographical location, setting the benchmark for creative, contextual design and achieving a sustainable development of long-lasting architectural quality,” he said.
Bukit Jelutong is a self-contained and an excellently planned community spread over 2,200 acres of prime freehold land.
It is well served with a transportation network that link to the other towns in the Klang Valley via expressways.
Meanwhile, SDSD’s mixed development project will cover 21 acres and will be part of the strategically planned Bukit Jelutong Commercial Centre that span 120 acres.
The project will have a gross built-up area approximately 2.7 million sq ft, consisting of 80% for retail namely shop-offices and office-suites and 20% for serviced apartments.
Work will begin next year and the project will be developed in five phases and completed in seven years.
By Bernama
Homes becoming too costly for the average Malaysian
As I was getting ready for some exercise early yesterday morning, I saw a man walking up the street dropping a leaflet into the mailboxes of homes. I took one off him as he approached the front of my house and it was an advertisement for properties.
The houses on offer in the secondary market were not your typical medium cost house or apartment that many Malaysians live in these days, but were million dollar dream homes that many aspire to own.
This got me thinking. Why are many new property launches and existing homes exorbitantly priced? Why are there few to none of the bread-and-butter houses being built?
If developers keep developing and selling higher priced properties, this will lead to an imbalance in supply and demand in the housing market.
Some of the last major townships launched in the Klang Valley include Setia Alam, Kota Damansara, Mutiara Damansara, Ara Damansara and areas surrounding Kepong and Puchong.
Initially catering for affordable homes, the price and types of properties being sold in those areas have moved up in scale.
The surge in home prices these days has been faster than the rise in wages and it would not be long, if it is not already happening, before such properties in the Klang Valley become too expensive for the average Malaysian.
Cheap financing has enabled Malaysians to own more expensive houses. Home buyers often require a small downpayment before purchasing homes.
The low interest rate environment, banks flushed with cash and innovative schemes have also allowed loan repayments to be kept within check – for now.
Furthermore, banks wanting to grab a larger slice of the home loan market are said to have engaged with external sales teams and other agents whose sole motivation might be to secure more loans.
While the absence of large land banks would be the prime reason for developers opting for smaller and higher priced properties, the process of pricing, while still a function of supply and demand, is also subjective. This subjective approach is also the norm in the secondary market.
Those who own homes would have heard about how much properties in their neighbourhood were recently sold for. People would then take that as the market price and would likely want the same price or higher when selling their home.
A gauge of what a house is worth would be the rental it can fetch. As prices of homes rise and the rental market, which is more linked to the disposable income of people, remains static and rigid, the inflated prices of property becomes more apparent.
Yes, price inflation of properties – if it remains strong – would offset the loss in returns from rent if people buy properties as an investment.
But then people should also consider whether they are better off renting and investing their money in higher yielding assets.
Escalating property prices also pushes homes out of the reach of the current generation.
Younger people who are just starting out in life may have to live at the fringes of Klang Valley, which then increases their cost of commuting to their workplace.
Those wanting to stay in the Klang Valley have then no choice but to opt for cheaper apartments or low cost dwelling.
It’s almost like the pickings are getting slimmer. My parents’ generation could afford a bungalow, mine a terrace house and what about my children’s generation if prices keep going up as they have?
The escalation in home prices, which would add to the leverage of home buyers, is also a warning sign. All it takes is one bad recession – recessions are becoming more frequent than in the past – and that would be trouble.
We only have to look at the implosion of the sub-prime market in the US to see what a housing collapse can bring.
Deputy news editor Jagdev Singh Sidhu dreams of a juicy burger as he is on his second attempt of a weight loss programme.
By The Star (by Jagdev Singh Sidhu)
The houses on offer in the secondary market were not your typical medium cost house or apartment that many Malaysians live in these days, but were million dollar dream homes that many aspire to own.
This got me thinking. Why are many new property launches and existing homes exorbitantly priced? Why are there few to none of the bread-and-butter houses being built?
If developers keep developing and selling higher priced properties, this will lead to an imbalance in supply and demand in the housing market.
Some of the last major townships launched in the Klang Valley include Setia Alam, Kota Damansara, Mutiara Damansara, Ara Damansara and areas surrounding Kepong and Puchong.
Initially catering for affordable homes, the price and types of properties being sold in those areas have moved up in scale.
The surge in home prices these days has been faster than the rise in wages and it would not be long, if it is not already happening, before such properties in the Klang Valley become too expensive for the average Malaysian.
Cheap financing has enabled Malaysians to own more expensive houses. Home buyers often require a small downpayment before purchasing homes.
The low interest rate environment, banks flushed with cash and innovative schemes have also allowed loan repayments to be kept within check – for now.
Furthermore, banks wanting to grab a larger slice of the home loan market are said to have engaged with external sales teams and other agents whose sole motivation might be to secure more loans.
While the absence of large land banks would be the prime reason for developers opting for smaller and higher priced properties, the process of pricing, while still a function of supply and demand, is also subjective. This subjective approach is also the norm in the secondary market.
Those who own homes would have heard about how much properties in their neighbourhood were recently sold for. People would then take that as the market price and would likely want the same price or higher when selling their home.
A gauge of what a house is worth would be the rental it can fetch. As prices of homes rise and the rental market, which is more linked to the disposable income of people, remains static and rigid, the inflated prices of property becomes more apparent.
Yes, price inflation of properties – if it remains strong – would offset the loss in returns from rent if people buy properties as an investment.
But then people should also consider whether they are better off renting and investing their money in higher yielding assets.
Escalating property prices also pushes homes out of the reach of the current generation.
Younger people who are just starting out in life may have to live at the fringes of Klang Valley, which then increases their cost of commuting to their workplace.
Those wanting to stay in the Klang Valley have then no choice but to opt for cheaper apartments or low cost dwelling.
It’s almost like the pickings are getting slimmer. My parents’ generation could afford a bungalow, mine a terrace house and what about my children’s generation if prices keep going up as they have?
The escalation in home prices, which would add to the leverage of home buyers, is also a warning sign. All it takes is one bad recession – recessions are becoming more frequent than in the past – and that would be trouble.
We only have to look at the implosion of the sub-prime market in the US to see what a housing collapse can bring.
Deputy news editor Jagdev Singh Sidhu dreams of a juicy burger as he is on his second attempt of a weight loss programme.
By The Star (by Jagdev Singh Sidhu)
WCT aims to add 2 hotels to portfolio by 2014
WCT Bhd, a leading construction and property development company, plans to own and manage two hotels within the next four years.
It will open its maiden hotel in Klang, Selangor, under the Première brand name on October 10.
The hotel is part of the RM145 million BBT-One Tower and the Boulevard project developed by WCT.
BBT Hotel Sdn Bhd director Eddie Tan said Première, the newest addition to the WCT portfolio, will be one of the main contributors to its hospitality division.
BBT Hotel, known as Smart Seasons Sdn Bhd until September 2006, is a subsidiary of WCT.
“We have found an opportunity to leverage on our expertise and apply it to the hospitality industry,” Tan said, adding that the hotel will be an ideal destination for business visitors and tourists.
The business-class hotel offers 250 rooms, including suites, in a 22-storey tower.
“We expect to achieve an occupancy rate of 60 per cent with an average room rate of RM170,” Tan said.
Premiere Hotel was built at a cost of RM75 million and was financed with internal funds and borrowings.
WCT is also planning to open Platinum Plaza Hotel in Ho Chi Minh City, Vietnam.
It will be part of the Platinum Plaza mixed commercial development comprising a shopping mall, two office blocks of 22 storeys each and small office units. The total development area is 7.2 million sq ft.
Gross development value of the proposed development is RM1 billion. The project will be developed in three phases over a four-year period.
By Business Times
It will open its maiden hotel in Klang, Selangor, under the Première brand name on October 10.
The hotel is part of the RM145 million BBT-One Tower and the Boulevard project developed by WCT.
BBT Hotel Sdn Bhd director Eddie Tan said Première, the newest addition to the WCT portfolio, will be one of the main contributors to its hospitality division.
BBT Hotel, known as Smart Seasons Sdn Bhd until September 2006, is a subsidiary of WCT.
“We have found an opportunity to leverage on our expertise and apply it to the hospitality industry,” Tan said, adding that the hotel will be an ideal destination for business visitors and tourists.
The business-class hotel offers 250 rooms, including suites, in a 22-storey tower.
“We expect to achieve an occupancy rate of 60 per cent with an average room rate of RM170,” Tan said.
Premiere Hotel was built at a cost of RM75 million and was financed with internal funds and borrowings.
WCT is also planning to open Platinum Plaza Hotel in Ho Chi Minh City, Vietnam.
It will be part of the Platinum Plaza mixed commercial development comprising a shopping mall, two office blocks of 22 storeys each and small office units. The total development area is 7.2 million sq ft.
Gross development value of the proposed development is RM1 billion. The project will be developed in three phases over a four-year period.
By Business Times
Gadang to launch RM110m property projects
KUALA LUMPUR: GADANG HOLDINGS BHD plans to launch RM110 million worth of property projects over the next year in Kuala Lumpur and Johor.
A company official said on Thursday, Aug 12 Gadang was also looking to expand its plantations in Sabah via joint ventures with the landowners. Currently, it has plantations in Ranau, Sabah.
On the proposed joint venture with Long An Province People's Committee, Vietnam to undertake a waterworks project with 300,000 cubic metres daily capacity there, he said it was still at a feasibility stage.
Its subsidiary Green Water Investment had signed an MoU with Long An People's Committee in November 2008 for the proposed project.
The delay was due to the change in the local government there, the official said.
By The EDGE Malaysia
A company official said on Thursday, Aug 12 Gadang was also looking to expand its plantations in Sabah via joint ventures with the landowners. Currently, it has plantations in Ranau, Sabah.
On the proposed joint venture with Long An Province People's Committee, Vietnam to undertake a waterworks project with 300,000 cubic metres daily capacity there, he said it was still at a feasibility stage.
Its subsidiary Green Water Investment had signed an MoU with Long An People's Committee in November 2008 for the proposed project.
The delay was due to the change in the local government there, the official said.
By The EDGE Malaysia
AmFIRST posts 6.17% revenue growth in Q1
KUALA LUMPUR: AmFIRST Real Estate Investment Trust has registered a revenue of RM25.11mil for its first quarter ended June 30, 2010, up by 6.17% from RM23.65mil in the same quarter last year.
Its net property income rose 15.94% to RM17.66mil from RM15.23mil previously.
However, the company’s income after tax declined marginally to RM9.94mil from RM10.58mil previously due to higher interest expense that resulted from the overnight policy rate (OPR) hike and provision for doubtful debt, AmFIRST said in a filing to Bursa Malaysia yesterday.
“Despite a marginal slip in income after tax for the first quarter period, we are pleased to report a positive start to the year with a fair performance of all six AmFIRST’s assets,” said Lim Yoon Peng, chief executive officer of Am ARA REIT Managers Sdn Bhd, the manager of AmFIRST.
By Bernama
Its net property income rose 15.94% to RM17.66mil from RM15.23mil previously.
However, the company’s income after tax declined marginally to RM9.94mil from RM10.58mil previously due to higher interest expense that resulted from the overnight policy rate (OPR) hike and provision for doubtful debt, AmFIRST said in a filing to Bursa Malaysia yesterday.
“Despite a marginal slip in income after tax for the first quarter period, we are pleased to report a positive start to the year with a fair performance of all six AmFIRST’s assets,” said Lim Yoon Peng, chief executive officer of Am ARA REIT Managers Sdn Bhd, the manager of AmFIRST.
By Bernama
KHSB to buy land for RM62m
KUALA LUMPUR: Kumpulan Hartanah Selangor Bhd (KHSB) has proposed to acquire two parcels of leasehold commercial land in Section 14, Petaling Jaya, from Majlis Agama Islam Selangor for RM61.72mil.
In a statement to Bursa Malaysia, KHSB said the land, measuring approximately 38,850 sq m, would be used to develop a service apartment, shop offices and shopping complexes.
It said the acquisition would be settled via bank borrowings and internally-generated funds.
“The proposed acquisition is a continuing effort by KHSB to reposition KHSB Group of Companies as developer of choice as the prime land is in the heart of Petaling Jaya,” it said.
KHSB said the exercise was also to prepare the group for immediate development.
“The present strong economy, coupled with a conducive building environment, high financial liquidity and demand, will augur well for the development and sales plan by the company,” it said.
By Bernama
In a statement to Bursa Malaysia, KHSB said the land, measuring approximately 38,850 sq m, would be used to develop a service apartment, shop offices and shopping complexes.
It said the acquisition would be settled via bank borrowings and internally-generated funds.
“The proposed acquisition is a continuing effort by KHSB to reposition KHSB Group of Companies as developer of choice as the prime land is in the heart of Petaling Jaya,” it said.
KHSB said the exercise was also to prepare the group for immediate development.
“The present strong economy, coupled with a conducive building environment, high financial liquidity and demand, will augur well for the development and sales plan by the company,” it said.
By Bernama
Hartanah Selangor buys PJ land
KUMPULAN Hartanah Selangor Bhd (KHSB) is buying two plots of leasehold land of 3.8ha in Petaling Jaya, Selangor, for about RM62 million. KHSB will pay RM45 million through borrowings, while the balance will be met from its own coffers.
The deal is subject to the approval of the state authority.
KHSB intends to develop serviced apartments, shop-offices and shopping complexes.
By Business Times
The deal is subject to the approval of the state authority.
KHSB intends to develop serviced apartments, shop-offices and shopping complexes.
By Business Times
REIT managers propose new tax incentives
The Malaysian REIT Managers Association (MRMA) has proposed a new set of incentives to enhance the existing tax concessions for real estate investment trusts (REITs).
The current tax concessions will expire next year.
It is proposing zero tax for individual local and foreign investors and 10 per cent flat withholding tax for all investors.
"The current tax concessions granted by the MOF (Ministry of Finance) for REITs will run out next year.
"Hence, there is an urgent need to ensure that industry players will continue to benefit from a similar or enhanced tax regime in the coming years," MRMA chairman Stewart LaBrooy said in a statement.
The MRMA also wants to establish a framework to develop the industry and coordinate investment opportunities and networking in the region.
This will help industry players to have more effective discussions with the MOF and other authorities on issues that affect the industry.
The MRMA held its annual general meeting (AGM) recently, during which 10 REIT managers participated in the election of its office bearers. The elected representatives will represent the REIT industry in the country.
The AGM saw the appointments of Axis REIT chief executive officer (CEO) Stewart LaBrooy as the MRMA's chairman, AmFirst REIT CEO Lim Yoon Peng and Amanahraya REIT CEO Adenan Md Yusof as its vice-chairman 1 and 2 respectively.
Hektar REIT's CEO, Zalila Mohd Toon, was appointed the association's treasurer, while Tower REIT's CEO, Chan Wan Leong, was appointed its secretary.
By Business Times
The current tax concessions will expire next year.
It is proposing zero tax for individual local and foreign investors and 10 per cent flat withholding tax for all investors.
"The current tax concessions granted by the MOF (Ministry of Finance) for REITs will run out next year.
"Hence, there is an urgent need to ensure that industry players will continue to benefit from a similar or enhanced tax regime in the coming years," MRMA chairman Stewart LaBrooy said in a statement.
The MRMA also wants to establish a framework to develop the industry and coordinate investment opportunities and networking in the region.
This will help industry players to have more effective discussions with the MOF and other authorities on issues that affect the industry.
The MRMA held its annual general meeting (AGM) recently, during which 10 REIT managers participated in the election of its office bearers. The elected representatives will represent the REIT industry in the country.
The AGM saw the appointments of Axis REIT chief executive officer (CEO) Stewart LaBrooy as the MRMA's chairman, AmFirst REIT CEO Lim Yoon Peng and Amanahraya REIT CEO Adenan Md Yusof as its vice-chairman 1 and 2 respectively.
Hektar REIT's CEO, Zalila Mohd Toon, was appointed the association's treasurer, while Tower REIT's CEO, Chan Wan Leong, was appointed its secretary.
By Business Times
Wednesday, August 11, 2010
Bolton buys land in Gombak
BOLTON Bhd's subsidiary is buying a 9.2 hectare plot of land in Gombak, Selangor from LP Heights Sdn Bhd, for RM72 million.
Ketapang Realty Sdn Bhd. plans to seek approval for the layout amendment of the land to allow the development of gated and guarded community comprising of three-storey semi-detached houses and three-storey bungalow houses.
Currently it has approval for 184 residential units, comprising of 36 units of semi-detached houses, 88 units of terrace houses and 60 units of townvillas.
The proposed development, with a gross development value of RM220 million, is expected to generate RM45 million in gross development profit for the subsidiary.
The development costs will be financed through internal funds and bank borrowings.
By Business Times
Ketapang Realty Sdn Bhd. plans to seek approval for the layout amendment of the land to allow the development of gated and guarded community comprising of three-storey semi-detached houses and three-storey bungalow houses.
Currently it has approval for 184 residential units, comprising of 36 units of semi-detached houses, 88 units of terrace houses and 60 units of townvillas.
The proposed development, with a gross development value of RM220 million, is expected to generate RM45 million in gross development profit for the subsidiary.
The development costs will be financed through internal funds and bank borrowings.
By Business Times
Bolton to buy land for RM72m
PETALING JAYA: Bolton Bhd through subsidiary Ketapang Realty Sdn Bhd had entered into a sale and purchase agreement with LP Heights Sdn Bhd to acquire 9.12ha leasehold land for RM72mil cash.
It told Bursa Malaysia yesterday the land was located in district of Gombak, Selangor.
Bolton plans on that land, a gated and guarded residential project with a gross development value of RM220mil and will generate a gross development profit of RM45mil.
It said the proposed acquisition would be funded through internally generated funds and bank borrowings. “The proposed acquisition is in line with Bolton’s objective to focus on its core business of property development, thereby increasing the group’s land bank so as to enhance the group’s future development earnings.”
By The Star
It told Bursa Malaysia yesterday the land was located in district of Gombak, Selangor.
Bolton plans on that land, a gated and guarded residential project with a gross development value of RM220mil and will generate a gross development profit of RM45mil.
It said the proposed acquisition would be funded through internally generated funds and bank borrowings. “The proposed acquisition is in line with Bolton’s objective to focus on its core business of property development, thereby increasing the group’s land bank so as to enhance the group’s future development earnings.”
By The Star
UK house prices drop, retail sales growth slows
LONDON: British house prices fell last month and retail sales growth slowed abruptly according to two surveys on Tuesday that will raise concern the recovery is losing momentum.
The Royal Institution of Chartered Surveyors’ house price balance fell to 8 in the three months to July the first negative reading in a year from a downwardly revised +8 in the three months to June.
The new buyer enquiries balance fell for the second straight month while property coming on the market increased at its fastest pace since May 2007, leaving surveyors braced for further weakness in the coming months.
A survey from the British Retail Consortium, meanwhile, showed the value of sales last month was just 0.5% higher than a year ago on a like-for-like basis, less than half the 1.2% growth recorded in June.
While part of that weakness may be a natural correction after June’s World Cup-related strength, the compilers of the survey also pointed the finger at the weakening housing market and harsh government spending cuts to come.
“The overriding factor is consumer confidence. It’s fallen recently,” said Stephen Robertson, director-general of the BRC. “Talk of public spending cuts is unsettling customers and they are concentrating on essentials.”
Britain’s Conservative-led coalition government, which came to power in May, aims to slash spending in some areas by a quarter, potentially putting thousands of public sector jobs at risk.
With bank lending still restricted, many doubt whether the private sector will be in a position to pick up the slack.
Britain’s economy grew an unexpectedly strong 1.1% from April to June but most economists think that will be the high-water mark, with growth slowing for the remainder of the year.
The Bank of England will publish new growth and inflation forecasts today and is expected to downgrade its GDP forecasts for both 2011 and 2012.
The Bank has kept UK interest rates at a record low of 0.5% since March 2009 and while one policymaker has been calling for a rise, most analysts expect no change in policy for many months to come.
Although inflation remains well above the 2% target, some analysts think the central bank may even feel compelled to restart its quantitative easing scheme to prevent a relapse into recession.
By Reuters
The Royal Institution of Chartered Surveyors’ house price balance fell to 8 in the three months to July the first negative reading in a year from a downwardly revised +8 in the three months to June.
The new buyer enquiries balance fell for the second straight month while property coming on the market increased at its fastest pace since May 2007, leaving surveyors braced for further weakness in the coming months.
A survey from the British Retail Consortium, meanwhile, showed the value of sales last month was just 0.5% higher than a year ago on a like-for-like basis, less than half the 1.2% growth recorded in June.
While part of that weakness may be a natural correction after June’s World Cup-related strength, the compilers of the survey also pointed the finger at the weakening housing market and harsh government spending cuts to come.
“The overriding factor is consumer confidence. It’s fallen recently,” said Stephen Robertson, director-general of the BRC. “Talk of public spending cuts is unsettling customers and they are concentrating on essentials.”
Britain’s Conservative-led coalition government, which came to power in May, aims to slash spending in some areas by a quarter, potentially putting thousands of public sector jobs at risk.
With bank lending still restricted, many doubt whether the private sector will be in a position to pick up the slack.
Britain’s economy grew an unexpectedly strong 1.1% from April to June but most economists think that will be the high-water mark, with growth slowing for the remainder of the year.
The Bank of England will publish new growth and inflation forecasts today and is expected to downgrade its GDP forecasts for both 2011 and 2012.
The Bank has kept UK interest rates at a record low of 0.5% since March 2009 and while one policymaker has been calling for a rise, most analysts expect no change in policy for many months to come.
Although inflation remains well above the 2% target, some analysts think the central bank may even feel compelled to restart its quantitative easing scheme to prevent a relapse into recession.
By Reuters
Tuesday, August 10, 2010
Developer: China property prices to fall
A real estate agent talks to prospective buyer behind a scaled model of a housing development in Beijing. The government has instructed banks to stop extending mortgage loans to people buying third homes in major cities. – AFP
BEIJING: Property prices in China’s major cities will fall later this year because of the government’s tightening campaign and a coming surge in housing supply, the country’s top listed developer said in comments published yesterday.
The government will not end its clampdown on housing speculation even as the economy slows, and developers who try to resist lowering prices are being unrealistic, Wang Shi, chairman of Vanke, was quoted as saying by the Securities Daily.
“Many developers who do not cut prices now are making a bet on policy,” said Wang, suggesting that they were hoping that Beijing would back down on its property controls.
Wang said the issue was of social, not just economic, importance. “Property prices in some cities have risen to levels unacceptable to the middle class,” he said.
Vanke and other big developers, including Evergrande and Greenland, have cut prices, boosting their sales. The value of properties sold by Vanke in July rose 65% from a year earlier to 8.44 billion yuan (US$1.25bil).
Showing its determination to cool the real estate market, Beijing has instructed banks to stop extending mortgage loans to people buying third homes in at least four major cities, including Beijing and Shanghai.
By Reuters
Improvement in property sector, says Rehda
Malaysia's property sector showed signs of improvement with new launches increasing by 21 per cent in the first half of this year compared to the last six months of 2009.
There was a 12 per cent improvement in performance this year and actual sales had increased marginally, according to a survey by the Real Estate and Housing Developers' Association (Rehda).
The survey showed there was a 35 per cent increase in the number of new terraced houses in the market and a 7 per cent rise in semi-detached homes and bungalows.
Rehda president Datuk Michael K.C. Yam said there was pent-up demand for high-end houses and expects the trend to continue in the second half of the year.
The survey showed that majority of the buyers this year were first time owners and owner occupiers.
Meanwhile, the top three most effective marketing tool, which helped push sales, were free/subsidised legal fee and stamp duty, and special financial packages.
"Discounted pricing had dropped, indicating that the property market is moving upwards," Yam said a media briefing in Kuala Lumpur yesterday.
Yam said developers are gearing to launch more houses in the second half of the year, in the all- price category.
The survey involved 133 developers. Some 62 per cent of them were more optimistic of the market conditions against 43 per cent in the second half of last year.
By Business Times
Rehda: Residential property prices on the rise
It is still a good time to buy property as the market is heading upwards, says Real Estate and Housing Developers' Association Malaysia
Prices of residential properties will rise 10-20 per cent over the next six months because of cost and inflationary pressures, says Real Estate and Housing Developers' Association Malaysia (Rehda) president Datuk Michael K.C. Yam.
"The current housing market is simmering. There is no boom or bust, but property prices will rise. The increase will be in high-rise and landed properties in all price categories across Malaysia," Yam said at a half-year property market briefing in Kuala Lumpur yesterday.
He said it was still a good time to buy property as the market was heading upwards, noting also the liquid banking sector and improvement in credit facilities for construction players.
According to Yam, developers are planning more launches in the second half and each project will comprise more than 150 units.
He also said that there was pent-up demand for semi-detached houses, bungalows and terraced houses priced more than RM800,000 each, especially in the Klang Valley and Penang.
"There are a lot of upgraders who want to move from a terraced house to a semi-D or bungalow because of security and to live in a green environment."
Yam said that key challenges for the sector would be higher interest rates, implementation of the Goods and Services Tax and removal of subsidies that would affect the lower-income group.
"We need government support and accommodative policies to ensure the market is simmering. The government should also be more firm in their policies to attract foreigners to buy properties here."
By Business Times
Prices of residential properties will rise 10-20 per cent over the next six months because of cost and inflationary pressures, says Real Estate and Housing Developers' Association Malaysia (Rehda) president Datuk Michael K.C. Yam.
"The current housing market is simmering. There is no boom or bust, but property prices will rise. The increase will be in high-rise and landed properties in all price categories across Malaysia," Yam said at a half-year property market briefing in Kuala Lumpur yesterday.
He said it was still a good time to buy property as the market was heading upwards, noting also the liquid banking sector and improvement in credit facilities for construction players.
According to Yam, developers are planning more launches in the second half and each project will comprise more than 150 units.
He also said that there was pent-up demand for semi-detached houses, bungalows and terraced houses priced more than RM800,000 each, especially in the Klang Valley and Penang.
"There are a lot of upgraders who want to move from a terraced house to a semi-D or bungalow because of security and to live in a green environment."
Yam said that key challenges for the sector would be higher interest rates, implementation of the Goods and Services Tax and removal of subsidies that would affect the lower-income group.
"We need government support and accommodative policies to ensure the market is simmering. The government should also be more firm in their policies to attract foreigners to buy properties here."
By Business Times
Rehda optimistic of property market outlook
KUALA LUMPUR: The Real Estate and Housing Developers’ Association Malaysia (Rehda) is optimistic of the future prospects of the property market in Malaysia.
Datuk Michael Yam: Majority of developers expect prices to rise.
“For the first half of this year, the Rehda Property Industry survey for the first half 2010 showed that 62% of the developers were more optimistic of the market conditions compared with 43% for the second half of last year,” said Rehda president Datuk Michael KC Yam at a media briefing jointly held by Rehda and RAM Ratings Services Bhd yesterday.
The survey showed that 58% of the respondents had launched new projects in the first half of this year, a significant increase compared with 31% in the previous half, Yam said.
He said with the current favourable market conditions, the survey showed that 69% of the respondents would launch new products in the second half of this year.
“The majority of the developers also anticipated prices to rise in the next six months.
“About 41% said their properties will increase in value by less than 10%, while another 40% of the developers expect their property prices to increase from 10% to 20%,” he said.
On the opportunities in the housing industry, Yam said the financial sector has been accommodative.
“The banking sector is liquid, credit for construction players has improved and housing non-performing loans have declined,” he said.
Yam said the regeneration of brownfield sites and the improvement in government policies had also been lauded for contributing to the favourable market conditions.
He said although the business has gained momentum, the industry still faced challenges like the increase in the base lending rate, removal of subsidies and the high production cost.
Yam said the current state of the housing industry was simmering and not boiling.
“It is still business as usual, but it needs continuous government support and accommodative policies to ensure its stability,” he said.
RAM Ratings chief economist, Dr Yeah Kim Leng, said the current monetary and financial conditions were conducive for sustainable growth.
“Following a 10.1% gross domestic product growth in the first quarter of this year, and with second quarter growth estimated at 8.8%, Malaysia’s first-half GDP growth will likely hit 9.4% year-on-year,” Yeah said.
The Rehda survey is conducted twice a year to assess the current housing industry conditions faced by its members.
By Bernama
Datuk Michael Yam: Majority of developers expect prices to rise.
“For the first half of this year, the Rehda Property Industry survey for the first half 2010 showed that 62% of the developers were more optimistic of the market conditions compared with 43% for the second half of last year,” said Rehda president Datuk Michael KC Yam at a media briefing jointly held by Rehda and RAM Ratings Services Bhd yesterday.
The survey showed that 58% of the respondents had launched new projects in the first half of this year, a significant increase compared with 31% in the previous half, Yam said.
He said with the current favourable market conditions, the survey showed that 69% of the respondents would launch new products in the second half of this year.
“The majority of the developers also anticipated prices to rise in the next six months.
“About 41% said their properties will increase in value by less than 10%, while another 40% of the developers expect their property prices to increase from 10% to 20%,” he said.
On the opportunities in the housing industry, Yam said the financial sector has been accommodative.
“The banking sector is liquid, credit for construction players has improved and housing non-performing loans have declined,” he said.
Yam said the regeneration of brownfield sites and the improvement in government policies had also been lauded for contributing to the favourable market conditions.
He said although the business has gained momentum, the industry still faced challenges like the increase in the base lending rate, removal of subsidies and the high production cost.
Yam said the current state of the housing industry was simmering and not boiling.
“It is still business as usual, but it needs continuous government support and accommodative policies to ensure its stability,” he said.
RAM Ratings chief economist, Dr Yeah Kim Leng, said the current monetary and financial conditions were conducive for sustainable growth.
“Following a 10.1% gross domestic product growth in the first quarter of this year, and with second quarter growth estimated at 8.8%, Malaysia’s first-half GDP growth will likely hit 9.4% year-on-year,” Yeah said.
The Rehda survey is conducted twice a year to assess the current housing industry conditions faced by its members.
By Bernama
Bolton buys land in Ukay Perdana for RM72m
Property developer Bolton Bhd announced today that it has purchased 9.192 hectares (22.98 acres) of leasehold land in Ukay Perdana, Ampang, Selangor, for RM72 million.
Executive chairman Datuk Mohamed Azman Yahya said the acquisition was in line with the company's strategy to expand its landbank with strategic acquisitions of prime parcels in the Klang Valley.
"We intend to develop this site into a modern, thriving community and we are optimistic about the demand for high-end residential units here," the company said in a statement today.
Bolton, through its sub-subsidiary Ketapang Realty Sdn Bhd, entered into a conditional sale and purchase agreement with LP Heights Sdn Bhd to acquire the land which comes with a development order for the development of 184 residential units comprising semi-detached and terraced houses, including town villas.
Mohamed Azman said the company was planning to seek approval for layout amendment of the development order. He said the revised plan was expected to yield an estimated gross development value of about RM220 million.
The project would begin upon obtaining all the approvals from the relevant authorities with an estimated development period of three years, he added.
By Bernama
Executive chairman Datuk Mohamed Azman Yahya said the acquisition was in line with the company's strategy to expand its landbank with strategic acquisitions of prime parcels in the Klang Valley.
"We intend to develop this site into a modern, thriving community and we are optimistic about the demand for high-end residential units here," the company said in a statement today.
Bolton, through its sub-subsidiary Ketapang Realty Sdn Bhd, entered into a conditional sale and purchase agreement with LP Heights Sdn Bhd to acquire the land which comes with a development order for the development of 184 residential units comprising semi-detached and terraced houses, including town villas.
Mohamed Azman said the company was planning to seek approval for layout amendment of the development order. He said the revised plan was expected to yield an estimated gross development value of about RM220 million.
The project would begin upon obtaining all the approvals from the relevant authorities with an estimated development period of three years, he added.
By Bernama
OCBC sees strong growth in mortgages
OCBC Bank (Malaysia) Bhd expects its mortgage portfolio to hit high double digits this year compared to 12 per cent last year, said a company executive.
"During the first half, mortgages recorded a high double digit and we think this will continue for the rest of the year," head of Consumer Financial Services, Charles Sik told pressmen after the launch of OCBC Regular Premium Life Insurance Financing (LIF) facility in Kuala Lumpur yesterday.
Home loan made up about RM10 billion of the bank's RM32.6 billion gross loans outstanding last year.
The bank's gross loan outstanding increased by 5 per cent on the back of assets valued at RM53 billion as at December 2009.
Sik said that OCBC mortgage lending holds a 5 per cent market share based on outstanding balance while on new business it commands up to 6 per cent. Last year, it recorded RM10 billion in home mortgages.
Explaining the facility, he said LIF was designed for those who wish to take up a more comprehensive life insurance policy which goes beyond protection linked to the purchase of a home.
"Basically, customers do not need to come out with any money upfront, whereas in usual practice the customers need to pay premium and take loan separately from the bank," he explained.
With LIF, customers would be able to subscribe to the scheme and finance it through OCBC home loan mortgage.
Meanwhile, Great Eastern director and chief executive officer Koh Yaw Hui said LIF will be available through its 17,000 agents nationwide.
"With we are confident LIF will be both well distributed and well-received," Koh said.
Great Eastern bancassurance partnership with OCBC since January to July this year has contributed 10 per cent or RM58 million to the insurer's new business mortgage-related insurance.
"Our partnership with OCBC just started last year but we already saw 135 per cent growth in total new business premium during the period from January to July.
"And there is room to grow. This year, we expect to see contribution of between 12 per cent and 15 per cent from OCBC," Koh added.
By Business Times
"During the first half, mortgages recorded a high double digit and we think this will continue for the rest of the year," head of Consumer Financial Services, Charles Sik told pressmen after the launch of OCBC Regular Premium Life Insurance Financing (LIF) facility in Kuala Lumpur yesterday.
Home loan made up about RM10 billion of the bank's RM32.6 billion gross loans outstanding last year.
The bank's gross loan outstanding increased by 5 per cent on the back of assets valued at RM53 billion as at December 2009.
Sik said that OCBC mortgage lending holds a 5 per cent market share based on outstanding balance while on new business it commands up to 6 per cent. Last year, it recorded RM10 billion in home mortgages.
Explaining the facility, he said LIF was designed for those who wish to take up a more comprehensive life insurance policy which goes beyond protection linked to the purchase of a home.
"Basically, customers do not need to come out with any money upfront, whereas in usual practice the customers need to pay premium and take loan separately from the bank," he explained.
With LIF, customers would be able to subscribe to the scheme and finance it through OCBC home loan mortgage.
Meanwhile, Great Eastern director and chief executive officer Koh Yaw Hui said LIF will be available through its 17,000 agents nationwide.
"With we are confident LIF will be both well distributed and well-received," Koh said.
Great Eastern bancassurance partnership with OCBC since January to July this year has contributed 10 per cent or RM58 million to the insurer's new business mortgage-related insurance.
"Our partnership with OCBC just started last year but we already saw 135 per cent growth in total new business premium during the period from January to July.
"And there is room to grow. This year, we expect to see contribution of between 12 per cent and 15 per cent from OCBC," Koh added.
By Business Times
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