iProperty.com launches ad-free portal

IPGA Ltd, owner of Asia's number one network of property portal under the iProperty.com umbrella brand (www.iproperty.com), has launched an ad-free property portal Propertyguru.com.my.

The portal is for use to test innovative interface design concepts and technologies, iProperty.com said in a statement today.

The group's chief executive officer Shaun De Gregorio said the new beta site is a platform to safely test new technology and products and set new industry standards for Malaysia and the region.

"The launch of our new beta test site, Propertyguru.com.my, is a welcome addition to the iProperty.com group of website," he said.

"It is a testament to the iProperty.com group's commitment to innovation and to providing our consumers with a different search experience."

Launched as an extension of the iProperty.com Malaysia brand, all property data on Propertyguru.com.my, including its 120,000 property listings for sale and rent, is powered by iProperty.com.my.

By Bernama

Menara Binjai receives provisional BCA Green Mark Gold Award

Menara Binjai, a 35-storey state-of-the-art green office tower

Menara Binjai, a 35-storey state-of-theart green office tower being built in the heart of KL’s Golden Triangle, has been awarded Singapore’s Provisional Building and Construction Authority (“BCA”) Green Mark Gold Certification.

Menara Binjai is also awaiting the final approval for its certification from Malaysia’s Green Building Index (“GBI”). With these dual green certifications, Menara Binjai will be the first dedicated office tower in Malaysia to be awarded both awards.

“We are delighted that Menara Binjai has been awarded BCA Green Mark Gold status. Right from the start, the company decided that the design and features incorporated into the tower would use cutting-edge Green technology to reduce the environmental impact wherever possible,” said Chua Guan-Hock, one of the six directors of the developer, Khor Joo Saik Sdn. Bhd. Located next to the Ampang Park LRT Station, Menara Binjai is a stone’s throw from the Petronas Twin Towers and KLCC, and is easily accessible from all major highways.


The roof garden of Menara Binjai

“We are very fortunate to have a unique location at the intersections of three major roads which are Jalan Ampang, Jalan Binjai and Jalan Tun Razak. All key highways, MEX, DUKE, and AKLEH are easily accessible. Tenants and visitors have a variety of transportation options whether by car, or public transport such as the LRT, buses, and taxis,” commented Chua on Menara Binjai’s location.

Designed by Veritas Architects, with Ranhill Consulting as mechanical and electrical engineering and green consultant, the tower complies with stringent environmental regulations. The energy-efficient operations allow up to 25% savings on electricity and air-conditioning consumption.

“We are also bringing nature to every three floors of Menara Binjai. Every third floor will have access to a unique triple volume garden terrace with lush greenery. This is a first for office towers in the country. There is also a Sky Garden on the 32nd floor where an unobstructed view of the Kuala Lumpur cityscape awaits. We spend most of our time in the office, and we want to ensure our occupants are comfortable and enjoy coming to work every day,” added Chua.

The exclusive leasing agent for Menara Binjai is Jones Lang Wootton. Menara Binjai is targeted for completion in Q4 2011. The property manager is CB Richard Ellis, a leading international property manager. For more information, please visit www.menarabinjai.com

By The Star

PJ Devt to launch integrated devt project GDV RM750m in Cheras

KUALA LUMPUR: PJ DEVELOPMENT HOLDINGS BHD (PJD) is expected to launch an integrated development project with gross development value (GDV) of about RM750 million in Cheras mid-2011, said its managing director Wong Ah Chiew.

He said PJD has obtained green light from the authorities for the development order of the project and was currently awaiting approval for its building plans, adding that the project would be on a 20-acre area.

Wong noted the project would include commercial units and high-rise service apartments as well as a retail shopping mall.

"We have not really named it (project) as yet as it is in the final stages of approval... It will be quite a big development," he told reporters after the group's EGM on Monday, Oct 11.

By The EDGE Malaysia

PortCity@POIC set to boost Lahad Datu

ECONOMIC growth in Sabah's east coast town of Lahad Datu is poised to be boosted with the development of the PortCity@POIC, a commercial project.

To be developed by BriSteel Properties Sdn Bhd, the project covers a 10ha area located not far from the Lahad Datu town centre.

The project involves the construction of a commercial complex with 196 shop and office units as well as 35 detached home units and industrial warehouses.

Launching the project yesterday, Palm Oil Industrial Cluster (POIC) Sabah chief executive officer Datuk Dr Pang Teck Wai said the project would contribute towards enlarging the business opportunities in Lahad Datu.

"The project will make Lahad Datu even more attractive for investors and I would like to encourage the business community to explore business potential generated by the development of the POIC," he said.

Lahad Datu is also famous for its tourist attractions such as the tabin Wildlife Centre and Danum Valley Conservation Centre.

Pang said if the development in POIC is well planned, it could also become a place that attract tourists.

BriSteel Properties managing director William Chee said the PortCity@POIC project which will be developed in three phases is expected to be fully completed within three years.

By Business Times

Exco Village bungalows for rent

STUMPED for business ideas to maximise the revenue-making potential of the Exco Village in Section 7, Shah Alam, the Selangor government has begun renting out the 10 bungalows for a paltry RM170 each, per day.

State housing, building management and squatters committee chairman Iskandar Abdul Samad said the revenue earned from the rental would be channelled to the state government.

“We have succeeded in cutting the maintenance of the complex from RM170,000 per month to RM70,000,” he said.

Opposition chief Datuk Seri Dr Mohamad Khir Toyo lambasted the Pakatan government for not being able to keep their promise to unlock the business potential of the bungalows.

“First they attacked the project and called it a waste. Then they promised the people that it would sell the complex and the money would be used for community-based projects.

“Later in June 2008, state executive councillor Ronnie Liu suggested it be turned into a medical centre while Sekinchan assemblyman Ng Suee Lim called for it to be part of a tour package.

“After 18 months have gone by, we now find each of the six-room bungalows is being rented out at only RM170 per day,” he said.

“It is a resort setting that offers expensive and comfortable facilities and it cannot be rented at such low fee. This is shameful,” he added.

Even Ng feels that RM170 is too low a rental for the bungalow, and plans to table the issue at the coming state assembly sitting.

All bedrooms and the living room are air-conditioned. There is hot shower in each bathroom and guests also have acccess to an outdoor swimming pool with jacuzzi.

Iskandar said the rental sum for each bungalow per day was agreed to by the state and which was based on De Palma Hotel’s rate for a standard room.

We decided to rent the bungalows out and sought the help of De Palma Hotels, a subsidiary of Selangor State Development Corporation, to conduct a study.

“At first the state wanted to appoint De Palma to manage the bungalows but after some consideration, we decided that the State Management Services could do it,” he said.

He said the whole complex was now called Selangor Government’s Rest House.

“We will change the board at the entrance soon.

“Six of the 10 bungalows are surrounded by lush greenery and used for training, meetings and government courses as well as to house state guests.

“Most of the time we have courses for local leaders including village heads, officers in the Mentri Besar’s office and for spiritual, physical, intellectual, emotional and social programmes at the rest house,” he added.

Iskandar said four bungalows had been allocated to the state legal adviser, state financial officer, state information director and the Petaling District Council president.

The Exco Village was built at a cost of RM21mil. However, since the Pakatan Rakyat government wrested power from Barisan Nasional in the March 2008 general election, it has been unable to unlock the village’s business potential.

Voices on the ground had begun to rumble over the bungalows and the decision to set such low rent for the luxurious bungalows.

Dr Khir said even if all six bungalows were rented out for a year it would earn about RM370,000 and there would be no profit as the revenue would go to paying for maintenance, management fees as well as the wages of gardeners and security guards.

“It would be better for the state executive councillors to move into the bungalows as that would save the ratepayers’ money,” he said.

By The Star

China's tightening moves to speed up property sales

HONG KONG: China's series of policy tightening measures to prevent a property bubble from bursting will likely speed up sales of some projects as prices in top tier cities fall, analysts and industry executives said on Monday, Oct 11.

Since April, China has announced a range of measures to curb the sector that is in danger of overheating, including raising downpayments for home purchases and requiring banks to conduct stress tests in case of sharp housing price declines.

Earlier on Monday, sources told Reuters China has raised reserve requirements for six large commercial banks by 50 basis points on a temporary basis, a surprise move to drain cash from the economy, but avoid over-tightening.

"Some developers would speed up project sales from the second half of this year to the first half next year so as to reduce their reliance on loans from banks with the government's measures to reduce liquidity," Evergrande Chief Executive James Xia told a news conference on Monday.

Last week, Shanghai issued new rules to limit home buyers to one new apartment and will impose a revised land appreciation tax. A newspaper also reported that Shenzhen would prohibit local families from buying a third home and those who don't pay local taxes would be barred from buying any unit.

PROPERTY TAX EXPECTED

China will likely introduce a property tax on a trial basis to further clamp down speculation in the sector, especially in first tier cities where prices remain high, though the market is mixed on when the tax might be launched.

Xia said there was a slim possibility that the trial property tax would be introduced this year, though Nie Meisheng, president of the semi-official China Real Estate Chamber of Commerce, told a forum in Beijing earlier on Monday that it would be launched in months.

With the government's series of measures announced this year to cool the property sector, housing prices in top-tier Chinese cities will probably fall by 10 percent over the next 6-12 months, ratings agency Standard & Poor's said.

China's housing prices in top cities, such as Shanghai, Guangzhou and Shenzhen, had fallen by about 10 percent as of the end of August from a peak in April, before the impact of tightening measures started to have a negative impact on the market, S&P credit analyst Bei Fu said.

"We expect such corrections to deepen in the next 6-12 months," Fu said in a media teleconference after the ratings agency issued a report on China's property sector, although she added that the corrections would not be as sharp as in 2008.

"In 2008, we've actually seen probably a 20, 30 percent downward correction in a timeframe of six to nine months. So this time, it's going to more moderate, kind of gradual downward adjustment," she said. Some analysts expect the impact of tightening moves impacting the property market for several months to come.

"We are not so optimistic on the short-term, believing that the government will not easily surrender its current tightening efforts, which have a lagging effect, and will be felt more acutely in the first half of next year," said Wee Liat Lee, regional head of property at Samsung Securities.

By Reuters

S&P: China property developers may faces price cuts of 10% in main cities

HONG KONG:-China's property developers may face further price cuts of up to 10% in major cities in the next 12 months, says Standard & Poor's Ratings Services.

It said on Monday, Oct 11 that despite the sector volatility and regulatory uncertainty, the developers appear to be in a healthier position to withstand such challenges compared with the downturn of 2008.

"The government's policy attempts to prevent sharp price rises and speculative activities, which muted demand, have coincided with an abundance in supply of new property for sale. As a result, we believe there is room for average selling prices to adjust downward in the near term," said S&P credit analyst Bei Fu.

"Nevertheless, many developers have adequate liquidity and have already locked in the majority of their revenue for 2010. That will reduce the pressure to make drastic price cuts in the near term," she said in a recently released industry report card by S&P, titled “Chinese Real Estate Developers Are Wary As Correction Deepens".

The report card compares the rating and outlook trend today with that in February, when it published the last sector outlook report entitled “Rankings of Chinese real estate developers in a sector ripe for consolidation.

It also comments on the performances and credit outlooks on more than 20 developers and ranks them according to their credit profiles.

"Given the reasonable financial and liquidity position of many developers, we stand by our stable short-term outlook for the sector, despite the continued volatility and aggressive expansion of some players," said Fu.

By The EDGE Malaysia

New projects to further boost land value in Damansara Heights

A street view of Seventy Damansara – one of the new projects in Damansara Heights.

Located up in the hills amidst quiet surroundings and just minutes away from the Kuala Lumpur city centre, Damansara Heights is easily one of the most exclusive neighbourhoods in the Klang Valley.

It helps too that there is not a lot of vacant land up for sale there, making for a very much sought after address for property investors seeking good resale value.

“The scarcity of land within the Damansara area definitely adds to the appeal of Damansara Heights. There is a lot of supply there but its mostly within the secondary market,” Landspecs principal Chan Khay Eng tells StarBizWeek.

In Chan’s opinion, land being limited in supply does appreciate over a length of time in value, but adds that this applies to all landed properties everywhere.

“However, new landed developments tend to have a significant influence on existing property prices,” he says. Chan says sellers of landed properties in Damansara Heights often compare prices of their properties to newer gated developments such as those in Sri Hartamas, Desa ParkCity and Damansara Utama.

“This tends to be unrealistic as the types of properties are different in the various locations. However, because of limited supply of landed properties in Damansara Heights, sellers are holding on to their asking prices.” Chan says property owners in Damansara Heights would never sell unless it is absolutely necessary. “The reason people sell is because they’re moving overseas or have received a good offer.”

According to him, the transacted prices for bungalow lots are averaging between RM300 per sq ft to RM380 per sq ft. For newer areas such as Setiabakti and Murni, prices average between RM600 per sq ft to RM630per sq ft.

For detached and terrace houses, transacted prices start from RM400 per sq ft while semi-detached homes start from about RM500 per sq ft. Chan says the prices of the homes however depended on various factors, such as location, condition and quality of building.

On iproperty.com, Damansara Heights is described as a panoramic township that caters to the high-end demands of Malaysians and expatriates of all walks of life.

“With its first class facilities, restaurants serving international cuisines and a trendy nightlife, Damansara Heights is considered a prime location due to its easy accessibility from the city centre and Petaling Jaya.

“From Bangsar, Jalan Maarof smoothly connects to Jalan Damansara, while Jalan Duta and Jalan Semantan provide excellent accessibility to Damansara Heights for those coming from the North-South Highway,” the website says.

Given its exclusivity and prime location, land value in Damansara Heights has been on a steady incline in the past two years, says Zerin Properties chief executive officer Previndran Singhe.

“Land values on average (in Damansara Heights) are about RM450 to RM700 per sq ft. Prices have appreciated since early this year by a good 5% to 10%. Since 2008, prices have increased 15% to 30%. Prices are definitely higher than Bangsar for detached homes and semi detached units, but terrace homes in Bangsar are more pricey than those in Bukit Damansara and Medan Damansara. For condominiums, Damansara Twins is the newest and is higher than Mont’ Kiara and in tandem with KLCC and Bangsar high-end condominiums,” he says.

Over the years, there has been talk that some areas within Damansara Heights have started looking a little run-down.

Says Previn: “Like any old neighbourhood, there will be some run down homes but in Damansara Heights, rejuvenation of these homes happen very fast.”

Despite the scarcity of land in Damansara Heights, new projects would help to rejuvenate the area.

One of them is Panareno Sdn Bhd’s Twins @ Damansara Heights.

Other projects which have helped to add interest in the area are newer developments like Seventy Damansara and Idamansara, both by the Eastern & Oriental Bhd group and Anggun, a project by L & H Property Development Sdn Bhd.

Twins @ Damansara Heights is a condominium development that starts from RM675,000 and Anggun consists of bungalow homes that range from RM6.5mil to RM9.5mil.

Previn says new projects in the pipeline would have short-term impact and in the long-term, could lead to an increase in traffic flow.

“But with the proposed LRT extension and new roads, I think the impact will be positive.”

Steven, a real estate agent from Rina Property, says prices of residential homes within the Damansara Heights area had appreciated between 10% and 20% in the past two years.

“Given that it’s prime location, I expect prices to continue escalating. I just don’t see it going down.”

By The Star

Mah Sing on aggressive land acquisition trail

Mah Sing Group Bhd, the country's fifth largest property developer by revenue, is in talks with the government and private land owners to buy land in the Klang Valley, Penang and Johor.



Group managing director Tan Sri Leong Hoy Kum said the company is on an aggressive land acquisition trail.

For government land, Leong said Mah Sing is open to cooperation with relevant government-linked companies, but he declined to disclose the name of the company it is talking to.

"We are confident that we will lock in more land soon. We do not want to miss the chance to buy government land, more so with the mass rapid transit (MRT) project that is coming up.

"There are also many government projects being tendered out from now until the middle of next year ... so we must get ourselves ready to capitalise on the opportunity," Leong said.

The three-line MRT project, costing more than RM30 billion, is to improve public transport in the Klang Valley.

Mah Sing has RM300 million cash in hand, some of which will be used to buy land. By early next year, it expects to receive RM215 million from the sale of an eight-storey building to Koperasi Permodalan Felda Bhd.

"We have enough funds," Leong said yesterday after the company's extraordinary general meeting in Kuala Lumpur.

Mah Sing has 21 ongoing projects worth RM6.3 billion in the Klang Valley, Penang and Johor. It is planning 10 more projects, expected to be launched from year-end.

Among them are Kinrara Residence, a RM830 million medium- to high-end housing development in Puchong, featuring 836 bungalows as well as semi-detached and super-link homes.

Leong said he is confident the company's sales this year will surpass the RM1.5 billion mark, due to strong numbers already locked in from its balanced and diversified property portfolio. Up to July this year, it had raked in RM1.02 billion.

Leong also said that he is bullish on the property market for the next one to two years.

"We should not worry too much about over-heating. We are promoting Malaysia 'My Second Home' scheme in China, Singapore, Hong Kong, Taiwan and Europe. Some 10 per cent of foreigners contribute to our sales and we expect more going forward," he said.

Mah Sing also hopes the government will further open up its policies to encourage foreigners to buy properties in Malaysia, especially those in the high-end segment, he added.

By Business Times

Sales of high-end properties still brisk

PETALING JAYA: High-end properties, especially condomimiums costing RM1mil and above, are still enjoying good sales backed by favourable financing, although some buyers are turning cautious in anticipation of upcoming budget measures to cool the property market.

“Currently, we do not feel there is pull back on banks in financing for high-end projects and the property overhang in this sector is not as serious as perceived,” Real Estate And Housing Developers’ Association Malaysia (Rehda) president Datuk Michael Yam told StarBizWeek.

The overhang could be in specific locations that refer mainly to strata titled properties such as condominiums in prime locations that cost RM500 per sq ft, and these comprise probably less than 5% of all properties sold in Malaysia,

Under this category, there may be some high-end properties in Mont’Kiara, KLCC and possibly, some condo projects in prime areas located in Penang and Johor.

On a possible financial crunch on developers post budget, he said: “That is left to be seen but it is likely that financial institutions would apply due diligence in giving out credit, based on track records of individual developers.”

However, Yam pointed out that this small high-end segment should not be overlooked.

“This high-value property segment can have a significant impact on economic growth. The economic stimulus vis-a-vis the Economic Transformation Programme are critical to the future vibrancy of this segment,” he said.

On the Government’s proposed deposit requirement on homebuyers to cool down property speculation, Yam said Rehda suggested that for the first and second properties, it would be better to allow the banks to assess the homebuyers’ financial position for deposit requirement on the property.

Real estate property consultant Amy Chung, who focuses on high-end condos in the Golden Triangle area in Kuala Lumpur, said more locals were buying these condos, backed by access to financing and the rental market.

“They mostly buy from foreigners, who are the first homebuyers, paying a minimum of 25% above the foreigner’s purchase price about one and a half years ago,” Chung said.

However, the situation was different during the downturn when most of the buyers were foreigners.

A property agent in the Golden Triangle agreed that the take-up rate for high-end condos was improving each year.

“But we feel it could be much better. There are still many high-end condos not sold and many of these properties are above the means of locals.”

She estimated the occupancy rates in various property projects as: K-Residence (less than 55%); Hampshire Residence (about 50%); Pavilion Tower 2 (30% to 45%); Marc Residence (70% to 75%) and Berjaya Times Square (90%).

According to Chung, high-end condos in the Golden Triangle would sell for RM850 per ft to RM1,200 per sq ft.

In Johor, developers are more worried if the ruling were to be imposed on the non-high end residential properties.

“Buyers of high-end residential properties are those with money and coming out with 30% downpayment (should the property loans be capped at 70%) is not a problem to them,” Johor Real Estate Housing Developers Association chairman Simon Heng said.

In Johor Baru, high-end properties comprised those just RM400,000 and above.

Curbs on property loans are not likely to affect Singaporean buyers because of the strong Singapore dollar.

“In fact for years, Singaporeans and foreigners taking up housing loans from local banks have only been getting 70% from the banks,” said Heng.

Berinda Properties Group sales manager Lim Sung Heng said demand for high-end houses in Johor Baru was good with many wanting to upgrade from mostly single-storey terrace houses.

From Berinda’s experience, most buyers of its high-end residential properties paid more than 10% downpayment for their houses.

Berinda’s projects in Johor Baru include Taman Molek, Molek Pine, Impian Molek, Molek Groover, Taman Redang and the houses are prices between RM500,000 and RM3mil.

He said the property market there also benefited from Iskandar Malaysia due to rising demand for high-end residential properties in southern of Johor.

In Penang, SP Setia property (North) general manager S. Rajoo said sales of high-end properties had increased in the past two to three months.

Sales of SP Setia’s residential landed properties priced between RM647,880 and RM1.4mil had registered RM102mil in sales revenue over from July to August compared with RM60.4mil three months earlier.

“The higher sales in the second half were mainly due to the introduction of the easy home ownership campaign where the buyer pays up to 3% down payment. Since the beginning of this month, sales have hit RM208mil,” he said.

The bulk of SP Setia’s sales came from its Setia Pearl Island three-storey semi-detached houses which are priced from RM1.4mil onwards and Setia Vista double-storey houses which are going from RM647,880 onwards.

IJM Land’s sales for July and August were about 40% higher than May and June.

This was due to the launch of The Light Collection 1, comprising 176 units of condominiums and water villas, priced from RM800,000 to RM2.6mil.

To date, IJM Land has sold about 60% of The Light Collection 1.

However, a Penang-based valuer said investors were now taking a cautious approach when buying residential properties priced from RM1mil onwards.

“They want to know more about the directions of the Government first before making further commitments,” he said.

Another property consultant based on the island said there was a slow-down in the high-end property segment priced between RM600,000 and RM3.5mil.

“This is due to concerns about the property market being over-heated. The forthcoming budget will have a lot of impact on the future trends of the property market,” he said.

By The Star

Nice homes under the hammer

Things don’t remain the same for long. Change is constant. And this is obvious in property auctions.

In the early days, when a property was to be “sold” this way, the bank would make it public by taking out a small, slim black-and-white advertisement that one would miss if one did not scour the classifieds. These ads were few and far between, whether it was for a shop or a house.

Things began to change several years ago after the 1997/98 Asian financial crisis. We started to see apartments advertised with black-and-white pictures the size of postage stamps with the necessary details for potential bidders to make a decision.

Many of these were located in what property professionals call secondary locations. They were neither properties – nor locations – the normal housebuyer would consider buying. Many of them had reserve prices of RM20,000 or less for an apartment. Those who had cash to spare bought them as a 20-year investment.

Now, there seems to be another wave of change. The last year or so, some of the properties that have come under the hammer are pretty attractive propositions, both in terms of the properties themselves and their locations.

There are pages of them shouting for attention, and often, colourful postage-sized pictures accompany the details.

Some of them are located in areas that many would consider desirable like SS2, Mont’ Kiara, Puchong, Klang, Ampang, Petaling Jaya and Damansara Perdana. Most of them are in the Klang Valley, although there are properties from Perak and Johor as well.

Quite a number of them are landed houses and some are bungalows. No longer are auctioned properties some little 600 sq ft unit in a block of low cost walk-up apartments. The fact that property agents themselves are buying into them speaks for themselves – that these are worthwhile buys.

What is happening? Nobody buys a house without really thinking it through and making it a long-term commitment. A property ends up under the hammer because the owner has failed to pay mortgage payments for several months. Legal proceedings begin after the bank fails to receive instalments for three consecutive months.

For the low-cost units, it is very likely many of the owners were forced into loan defaults when they were out of a job. They were probably blue-collar workers affected by the economic downturn.

But what about properties that cost RM500,000 or more? It is very likely these professionals lost their jobs too and when their savings ran out, they were unable to meet their mortgage responsibilities. It could also be due to their inability to cope with excessive loans.

In cases where the house is occupied by the owner and he is unable to meet mortgage payments, there may be a need for banks to consider restructuring the loan. There was quite a bit of that in the aftermath of the 1997/98 financial crisis.

Helping owners keep a roof over their heads will create a lot of goodwill for both sides. Putting properties on auction seems to be an easy way out and will not help property owners. With today’s escalating house prices, there must be some form of mechanism to promote home ownership.

Property auctions have become so popular today that it has become a fast-growing industry. There are websites, agents and a growing coterie of licensed auctioneers. It may not be long before banks devote officers just to look after the auction market.

There are even courses dedicated to serving those who want to buy such properties and who don’t know how to go about it.

The fact that the fees are slowly increasing from RM300 to just under RM1,000 is an indication that there are takers who are interested enough to pay to learn about the auction market.

One may wonder, why does one need to invest in a course to invest in property? Simply because there may be complications when buying property via auctions. When one buys such a property, one buys “as is where is”. That means one gets the property as it is.

One cannot go in to check the place, knock on the walls or check for termites. The outside may look decent enough, but the inside may be a different story.

There may be tenants who refuse to leave. Or an overgrowth of foliage in the hall of an apartment due to open windows and balcony doors. Or, as in one case, a dead body in a refrigerator. In the case of condominiums, there may be unpaid maintenance bills that run up to tens of thousands of ringgit.

An often-quoted economist said several months ago that he expects high-end properties to come under the hammer. Maybe that day has arrived.

Assistant news editor Thean Lee Cheng is all for property investment, but the way the auction market is growing shows that there are major imbalances in home ownership.

By The Star (by Thean Lee Cheng)

Increase in property gains tax unlikely

PETALING JAYA: The property market, especially in the Klang Valley and Penang, are showing signs of getting frothy, so much so that talks about higher tax on property gains are getting louder as Budget 2011 announcement gets nearer.

Re-introduced earlier this year at the rate of 5% after a three-year hiatus, there are those who view that the real property gain tax (RPGT) should be implemented back on a original progressive scale where short-term gains are taxed the heaviest.

But industry players, understandably, are not too thrilled about the prospect on higher taxes.

“Personally, I don’t think the Government will increase it,” Master Builders Association of Malaysia (MBAM) president Kwan Foh Kwai told StarBizWeek in a telephone interview.

“But you’d never know what will happen next week,” he said.

The Government will table its Budget 2011 in Parliament on Oct 15.

From the contractors’ point of view, Kwan said, a healthy property market would benefit the whole economy.

“Prices had gone up in the past few quarters, but can be still considered relatively low because the market was stagnant in 2008,” said Kwan, who is a director at Sunway Holdings Bhd.

OSK Research, in a recent report said one potentially negative news for the sector could come in the form of a cap on loan to value ratio.

Such a move would probably be aimed at second or third home purchases, while first-time house buyers would probably be allowed to continue to borrow up to 90% of the property value.

Meanwhile, Bank Negara had increased interest rate three times so far this year from a record low level.

The Government re-introduced RPGT in the Budget 2010, but at concessional rate of 5% for disposal of properties held less than five years.

By The Star

I&P property bonanza

I&P GROUP Sdn Bhd is taking advantage of the auspicious date of 10.10.10 to showcase 16 products worth some RM413 million during its MadAboutHomes2010 property bonanza tomorrow.

“The long awaited terrace and semi-detached homes in Alam Damai and the shop offices in Bandar Kinrara and Alam Sutera will also be offered.

We anticipate very good response from the public despite the present economic scenario,” managing director Datuk Jamaludin Osman said in a statement.

The public will also have a preview of I&P’s 156-unit deluxe apartments in Bandar Baru Seri Petaling township with a project value worth RM150 million.

By Business Times

KLIFD pact delay may be due to land issue

ABU Dhabi's Mubadala Development Co's entry into an agreement with 1Malaysia Development Bhd (1MDB) yesterday to participate in developing a multi-billion-ringgit commercial project in Kuala Lumpur came some four months after the announcement on the collaboration was earlier planned.

Mubadala yesterday said it is ready to participate in building the RM26 billion Kuala Lumpur International Financial District (KLIFD), an area designed to house all players in the financial sector.

The development will take place on a 34.4ha site near Jalan Tun Razak in Kuala Lumpur, popularly known as Dataran Perdana.

The collaboration was first scheduled to be announced at an event on May 29 this year, with the attendance of General Sheikh Mohammed Zayed Al Nahyan, the Crown Prince of Abu Dhabi, and Deputy Supreme Commander of the United Arab Emirates Armed Forces.

However, on May 27, invited guests were notified that the event had been postponed. No reasons were given. But checks with the Kuala Lumpur Land and Mines office indicate that a tussle may have occured over the Dataran Perdana land.

One of titles on the land states that Pelaburan Hartanah Bhd (PHB) (previously Pelaburan Hartanah Bumiputera Bhd) had placed a caveat on the land on May 7 2010, just 22 days prior to the event.

PHB, set up following the tabling of the 2006 Budget, was said as being in the process of buying several prime properties, including Dataran Perdana. It was to issue capital market instruments, such as real estate investment trusts, in future to provide investment opportunities for Bumiputera investors.

PHB, however, withdrew the caveat on September 20 2010, and on Monday, 1MDB itself placed a caveat on the land, indicating that it had been handed over to it for development of the KLIFD project.

Valuers have put a price tag of RM400 to RM600 per sq ft for land around the area, putting commercial value of Dataran Perdana at between RM1.5 billion and RM2.2 billion.

It was not clear whether PHB had paid for the land and Business Times has also not been able to establish if 1MDB has made any payment for the same property.

By Business Times

Mah Sing gets shareholders nod on land buy

Mah Sing Group Bhd today received the approval of its shareholders to acquire a piece of land in Kinrara, Puchong.

A new residential property project, Kinrara Residence, will be developed on the land under the the group's medium high-end residence series.

Kinrara Residence, a mixed residential development, will consist over 800 units comprising super link homes, semi-detached and bungalows.

"The acquisition of the 51.38 acres, which has been sub-divided, is expected to start by year-end," Mah Sing Group's Managing Director, Tan Sri Leong Hoy Kum told reporters after an extraordinary general meeting today.

The project, with an estimated gross development value of RM830 million, is expected to see faster execution by 12 to 15 months with a major infrastructure already substantially completed and 70 per cent of the land cleared and ready for immediate building work.

By Bernama

Talam sells land for RM28.5m

PETALING JAYA: Talam Corp Bhd, via subsidiary Juara Tiasa Sdn Bhd, is disposing of a plot of land in Bukit Sentosa, Selangor, measuring 170,009 sq m to Pesuruhjaya Tanah Persekutuan for RM28.5mil.

Talam said in a statement yesterday that the piece of freehold land had a 10-year-old building which was presently vacant.

The company added that the land was designated for use as private institution, hostel and club including related structures.

By The Star

IJM and UEM may jointly bid for MRT project

PETALING JAYA: Speculation is rife that IJM Corp Bhd and UEM Group Bhd may jointly submit to the Government a proposal for the mass rapid transit (MRT) system.

Currently, it is understood that the only MRT proposal that has been submitted to the Government is the RM36bil proposal by Gamuda Bhd and MMC Corp Bhd.

RHB Research Institute said there were strong rumours in the market that IJM and UEM, via a joint-venture (JV), had submitted or would submit an alternative MRT proposal carrying a much cheaper price tag to the Government, competing head-on with the Gamuda-MMC JV.

The research house’s checks with IJM yielded this response: “It is always difficult to comment on rumours.”

Meanwhile, UEM, when asked by StarBiz on the matter, replied:

“We do not comment on rumours and speculation though as mentioned in July, we would be interested to submit a bid if the MRT project is open for tender.” RHB Research said while theoretically open bidding should ensure the best value for money, it suspected that “urgency” might take precedence in the case of this MRT project.

“We equate the MRT project to the backbone of the Greater KL National Key Economic Area (NKEA) under the Economic Transformation Programme (ETP).

“Thus, we are unsure if the Government can afford to spend a few extra months to evaluate an alternative proposal,” it said in a report yesterday.

Nevertheless, RHB Research believed that most, if not all, related players would benefit from the MRT project given the sheer size of the project, as long as it got off the ground.

“In any case, the Gamuda-MMC JV already said that it only intends to keep the tunneling works that make up about 30% of total project value with the remaining 70% to be awarded out to other players on a competitive basis,” it said.

By The Star

MRT will boost property prices

PETALING JAYA: The proposed mass rapid transit (MRT) system is expected to be one of the main contributing factors to boost property prices adjacent to the MRT stations.

CB Richard Ellis (M) Sdn Bhd executive director Paul Khong said the MRT stations generally had a positive impact on nearby property values in most cases.

“Being next to the station works well for lower and middle-end residential neighbourhoods and all commercial offices or retail malls. This basically translates to better public transportation and enhanced accessibility to the relevant vicinities,” he told StarBiz.

“The MRT will benefit the lower to middle-end users the most and it makes travelling faster, cheaper and much easier.”

On the expected quantum capital appreciation due to the MRT stations, Khong said it could be 10% to 15%.

“More importantly, the MRT station must be less than a 1O-minute walk from the properties. Ultimately, being next door and within five minutes away will be a premium.

“Anything more will give less impact in terms of capital values,” he said. “Being next to a MRT station could be the main selling point for a new project, be it a commercial or a residential one. A good example will be Menara UOA in Bangsar.”

But, Khong said, the property prices could be affected if it was alongside the MRT tracks and not the station. “The crucial point is to be close or next to the station if possible,” he said.

The RM36bil MRT system proposal by Gamuda Bhd and MMC Corp Bhd will have up to three main lines. The first line will run through Sungai Buloh, Kota Damansara, Kuala Lumpur and Cheras (right up to Kajang).

The second line will connect Sungai Buloh, Kepong, Kuala Lumpur and Serdang, while the third line will loop around Kuala Lumpur’s business district – providing a link between the monorail and light rail transit (LRT) services.

The Gamuda-MMC proposal is currently undergoing technical study by a consultant and should be completed by mid-month to be presented to the Government.

At this point in time, there is no information on the exact locations of the proposed MRT stations.

According to property consultancy Khong & Jaafar Sdn Bhd managing director Elvin Fernandez, most of the areas around the LRT stations have been developed and it is axiomatic that accessibility would improve property values.

“But the impact wouldn’t be immediate as the MRT will take time to complete and the effect will be evident only from details of the exact positions of the rails and stations filtering into the market in time to come,” he said.

Based on preliminary details of the MRT, Fernandez said the Sungai Buloh area (the Guthrie Corridor townships) and the proposed Rubber Research Institute Malaysia developments could be among the first beneficiaries because both lines were expected to start from there.

“Kajang and Seri Kembangan are the next areas to flourish as they are on the other end of the line. Additionally, the Cheras corridor also has good prospects,” he said.

Nevertheless, Fernandez said, some developments might be negatively affected, especially residential developments, due to the noise or congestion if they were close to the rail lines or stations.

“But generally, the MRT should bring positive effects to the nearby areas,” he said.

According to a market source, another area that would have potential based on the proposed MRT system was the Kota Damansara corridor.

“The Kota Damansara corridor includes Kota Damansara, Mutiara Damansara, Damansara Perdana and The Curve. Business and financial districts along Jalan Raja Chulan, Jalan Bukit Bintang and Suria KLCC also have good prospects,” said the source.

By The Star

UEM Land eyes RM2b revenue: Credit Suisse

UEM Land Holdings Bhd, a Malaysian property developer, aims to grow revenue five-fold to RM2 billion in five years, Credit Suisse Group AG said in a report today, citing company management.

UEM Land’s Bandar Nusajaya project will contribute at least 60 per cent of the sales in five years, Amir Hamzah, an analyst at Credit Suisse said in the report.

The company is also in talks with several Singaporean government-linked companies on property projects, Amir said.

By Bloomberg

CM: Penang to project itself as ‘intelligent city’

Though Penang lacks natural resources such as oil and gas, it can depend on its human talent to move forward.

Chief Minister Lim Guan Eng said the human capital would enable Penang to propel forward in this new century.

“We should harness the best and the brightest of our human talent and human capital. I am confident Penang will achieve the target of becoming a world-class international city.

“To be an international city, we must have international standards and adopt the best international practices,” he said in his keynote address at the Penang International Property (PIP) Summit 2010 at the Penang International Sports Arena (PISA), Relau recently.

He added that Penang had to find its own niche, which were sustainable and green, to become an international city.

“More than 70% of the global population will be living in cities by the year 2050. With so many people living in cities, how do we distinguish Penang from the rest?

“I think Penang must project itself as an intelligent city for it to find its niche.

“Apart from the three traditional aspects of intelligence which are human, collective and digital intelligence, we must also have integrity intelligence and institutional intelligence,” he said.

“In short, we are looking for peace and security for the people, equal opportunity for all and democracy so that everyone can realise their potential,” he said.

The property summit, organised by PIP Creation Sdn Bhd with support from Raine & Horne International and Penevents Sdn Bhd, showcased properties from 30 exhibitors such as S P Setia, Ivory, DNP, Ideal Homes, Seal Incorporated, Plenitude and MTT.

Among the highlights was the three-day trade forum which provided critical awareness of local and regional trends in the property market.

By The Star