Mah Sing buys land in Ampang, Cyberjaya

KUALA LUMPUR: Mah Sing Group Bhd has acquired two parcels of freehold land for RM166.5mil which are expected to generate a combined gross development value (GDV) of RM1.2bil.

The 1.88ha in Jalan Ampang, named M City Jalan Ampang, will be a niche project comprising serviced residence and retail outlets with an estimated GDV of RM920mil to be developed in five years.

“The land is flat and vacant and ready for immediate development. Furthermore, conversion premium to commercial development has been paid for part of the land and it comes with a sub-structure for two levels of basement car parks,” group managing director and group chief executive Tan Sri Leong Hoy Kum said in a statement yesterday.

Mah Sing has also acquired a 13.94ha freehold land next to its Garden Residence township in Cyberjaya which will add RM280mil to Garden Residence’s GDV and expand the township size to 60ha.

“Together with this latest acquisition, Garden Residence is a sizable project which will take between three and five years to complete.

“It is certainly an opportune time to replenish our land bank in order to meet the strong demand and we intend to create an exclusive enclave of semi-detached homes on the new land,” Leong said.

To date, the group had acquired new projects with a combined GDV of RM3.1bil. – Bernama

Meanwhile, it currently has projects with remaining GDV and unbilled sales of RM8.64bil.

By Bernama

'80pc SetiaWalk occupancy by Q1 2012'

SP Setia Bhd expects the occupancy rate at its boutique lifestyle development project, SetiaWalk, to increase to 80 per cent from 60 per cent when it opens its doors by the first quarter of 2012.

Spanning 8.32 hectares of prime land fronting Jalan Puchong, SetiaWalk offers an eclectic mix of retail offices, serviced apartments, dining delights, a boutique hotel and entertainment centre.

SetiaWalk, with a gross development value of RM1 billion, has a gross floor area of 2.3 million sq ft and a net lettable area of 2.4 million sq ft.

"There will be more exciting things to look forward to at SetiaWalk, one of them being the proposed light rail transit station opposite our project," said its divisional general manager, Wong Tuck Wai, at the ceremony to welcome three anchor retailers of its entertainment centre.

"We welcome TGV Cinemas, Celebrity Fitness and Superstar Karaoke as our business partners," he said.

Wong said the last anchor tenant would be the Chinese restaurant chain and the name was expected to be revealed soon.

SetiaWalk targets its retail offices to open for business in April next year with the entertainment centre operational by December 2011.

Meanwhile, the company said as part of its continuing efforts to ensure the success and vibrancy of SetiaWalk, it would provide pre-leasing services to match owners of the retail offices with the right tenants.

"A dedicated pre-leasing team has identified a list of potential suitors and matched with the buyers to ensure an exciting tenancy mix and add value to the entire development," it said.

Superstar Karaoke's consultant-cum-operations manager, Richard Law, said the outlet at SetiaWalk would be its fourth nationwide and it would occupy about 12,000 sq ft and offer a touch screen song-selection system.

TGV Cinemas chief operating officer, Kenny Wong, said the cinema would have nine cineplexes with 1,900 seats.

Celebrity Fitness would occupy two levels of 22,000 sq ft in total, said its managing director of Malaysia Kwangho Choi.

SetiaWalk, which can be access via Lebuhraya Damansara-Puchong and Persiaran Wawasan, has also managed to attract retailers such as Starbucks, BMS Organics, STADT German Cuisine, Ponytail Salon, Hock Hua Tonic, Bata and La Primavera.

By Bernama

PjH plans RM1.3b projects to make Putrajaya more vibrant

PUTRAJAYA Holdings (PjH) Sdn Bhd said its next phase of development at the administrative capital will comprise commercial and residential properties worth more than RM1.3 billion.



Director and chief executive officer Datuk Azlan Abdul Karim said the properties which will be built in five years, will make Putrajaya a liveable city.

"The perception is that Putrajaya is for government buildings. Our next focus is to build office towers, retail, an entertainment strip and medium- to high-end housing to create vibrancy for Putrajaya.

"We will have several mixed developments and waterfront projects to attract expatriates, too," he told the media in Putrajaya yesterday.

Putrajaya, which started in 1995, comprise 20 precincts sprawled over 4,931ha. By 2020 it will have 3.8 million sq m of government offices, 3.4 million sqm of commercial space, and 65,000 residential units with a working population of 500,000.

PjH, the master developer for Putrajaya will call for tenders for the new projects by early 2011. Some of the projects are in design stage now, Azlan said.

Azlan said PjH will either lease the office towers or sell them if there is demand.

He said PjH has been approached by several government agencies and corporate companies.

"We aim to also attract multi-national companies. We will be talking to some big names," he said.

All the buildings will meet the Green Building Index standards, Azlan said.

On the residential side, he said PjH will build affordable homes starting from RM150,000, terraced houses priced from RM450,000, and waterfront villas, which it expects to sell from RM2 million.

"We will cater to all segments of the market. I am bullish on the outlook for Putrajaya. There is pent-up demand for new houses here," he said.

Azlan said on average, its housing projects are snapped up within one month after launch.

"When we build commercial or residential properties, we will make sure there is demand. We are not going to be like Dubai where they kept on building regardless or not there was demand," he said.

By Business Times

Property bubble unlikely to occur: Mah Sing

A property bubble is not likely to occur following Bank Negara Malaysia's move to increase the loan-to-value (LTV) ratio to 70 per cent for third house financing facilities and onwards, says Mah Sing Group Bhd.

Group managing director cum group chief executive Tan Sri Leong Hoy Kum said the move should not affect the overall sentiment of the property market significantly which comprised mainly first time buyers and upgraders.

"As long as developers offer quality properties with good concepts in prime locations, there should still be takers due to the strong employment market, low interest environment and good liquidity in the financial system," he said in a statement today.

Meanwhile, the Association of Banks in Malaysia viewed the move as timely and pre-emptive in nature.

Its president cum chief executive officer Datuk Seri Abdul Wahid Omar said while the banking sector supported house ownerships, the association agreed that the appropriate measure should be adopted to avert unhealthy speculative activities which could lead to a property bubble.

Bank Negara Malaysia today announced the implementation of a maximum LTV ratio of 70 per cent, applicable to third house financing taken out by a borrower, which is effective immediately.

The measure aimed to support a stable and sustainable property market and promote the continued affordability of houses for the general public.

By Bernama

Mah Sing in RM167m land buy pact

Mah Sing Group Bhd, a Malaysian property developer, said it agreed to buy land in Kuala Lumpur and Cyberjaya for a total of RM167 million.

The 4.7 acre land in Kuala Lumpur will be used to develop serviced residences and retail outlets with a total estimated gross development value of RM920 million, it said in a statement today.

The second plot, measuring 34.9 acres in Cyberjaya, is worth RM280 million in gross development value, it said.

By Bloomberg

Cyberview sees 10% investment growth in Cyberjaya

CYBERJAYA: Cyberview Sdn Bhd, the landowner of Cyberjaya, is optimistic of achieving a further 10% growth in investment in Cyberjaya by year-end from the current RM3.19bil.


(From left) Setia Haruman COO C.K. Lao, Hafidz Hashim, Multimedia Development Corp GM Wee Huay Neo and Sepang Municipal Council president Mohd Sayuthi Bakar at the media briefing yesterday.

“Giving the rapid growth of development in Cyberjaya, we are confident to achieve that growth through land sales for enterprise, commercial, institutional and residential space,” managing director Hafidz Hashim said yesterday after Cyberjaya’s annual media briefing.

Hafidz said the RM3.19bil represented more than a third of Cyberjaya’s total investment value of RM9.1bil since its inception over 10 years ago.

In 2009, Cyberjaya received investment worth RM1.29bil.

Hafidz said the company was also optimistic of surpassing this year’s investment figure for 2011, as it had secured projects worth RM1.48bil to start next year.

“Cyberjaya intends to support the Government’s aspiration to become a developed and high income nation as had been tabled in Budget 2011.

“We are poised to bring development-centric initiatives to fruition in line with what had being announced during the recent budget,” he said.

He added that to date, more than 500 companies, including global multinationals such as HP, Dell, Fujitsu and Motorola, had set up regional and global centres in Cyberjaya.

“Cyberview aspires to strengthen the key government initiatives by driving inward local and foreign investments, developing skilled workers and talents, and nurturing creative economies in Malaysia via its thriving content creation and multimedia industries,” he said.

On the other hand, Hafidz said Cyberview had in place initiatives from Budget 2011 that called for creative content development as a key contributor to the national economy with Cyberjaya-TV.com, which went on air earlier this year.

“As a whole, Cyberview’s vision and direction for Cyberjaya closely echoes the four major thrusts identified by the National Economic Advisory Council for the implementation of the New Economic Model, which are talent development, the creation of research and development ecosystem, provide growth infrastructure and institutional development,” he said.

On the current population living in Cyberjaya, he said there are 12,000 residents at the moment and the figure was expected to reach 35,000 in 2014.

The annual media briefing brought together Cyberjaya stakeholders such as Multimedia Development Corp, Setia Haruman Sdn Bhd and the Sepang Municipal Council.

By The Star

Cyberview will take heed of advice in report

PETALING JAYA: Cyberview Sdn Bhd, the landowner of Cyberjaya, acknowledges the recommendations in the Auditor General’s Audit Report 2009 for tighter management and coordination of efforts in developing Cyberjaya.

The company was responding to the recent report which highlighted some weaknesses in Cyberview in handling issues related to the development of Cyberjaya.

Managing director Hafidz Hashim said via e-mail that scheduled reporting and tighter monitoring measures as recommended by the report were in the process of being put into place as Cyberview’s role expanded from that of a landowner to the entity spearheading and masterminding the development of Cyberjaya.

“With the rapid changes taking place in the cybercity, the role as development mastermind brings challenges and Cyberview’s role is continuously evolving with the growth of Cyberjaya and we constantly strive to improve processes for the betterment of the cybercity,” he told StarBiz.

The audit report for the company was done between July and November 2009 and highlighted some weaknesses such as management of the land, records on land status that were not properly maintained, dissatisfaction with the transport service and some financial management.

However, it said, Cyberview’s financial performance from 2006 to 2008 was satisfactory as the company was profitable all those years despite some decline in profit in 2008.

It said the objective to form Cyberview was to ensure the development of Cyberjaya was in tandem with the Government’s aspiration to create an information technology city (cybercity).

“The complete development of a cybercity could not happen if Cyberview could not monitor the development of the city efficiently,” it said.

The report said the Finance Ministry, the main shareholder in Cyberview, needed to ensure the company was focused in monitoring Cyberjaya’s development.

It also suggested that Cyberview fully monitor the buildings’ rent collection and take action on those who failed to pay their outstanding rent.

By The Star

BNM: Maximum loan-to-value (LTV) ratio of 70% for 3rd home loan

KUALA LUMPUR: Bank Negara Malaysia is imposing with immediate effect the maximum loan-to-value (LTV) ratio of 70% for the third house financing facility taken by a borrower as it seeks to curb "excessive investment and speculative activity in the residential property market".

The central bank said on Wednesday, Nov 3 the move was expected to moderate the excessive investment and speculative activity in the residential property market which has resulted in higher than average price increases in such locations.

“This has also led to increases in house prices in surrounding locations, thus contributing to the declining overall affordability of homes for genuine house buyers," it said.

Bank Negara said the financing facilities for purchase of the first and second homes are not affected and borrowers will continue to be able to obtain financing for these purchases at the present prevailing LTV level applied by individual banks based on their internal credit policies.

“The measure aims to support a stable and sustainable property market, and promote the continued affordability of homes for the general public,” it said.

Below is the entire statement issued by Bank Negara:

Measures in Promoting a Stable and Sustainable Property Market and Sound Financial and Debt Management of Households

Bank Negara Malaysia wishes to announce with immediate effect the implementation of a maximum loan-to-value (LTV) ratio of 70%, which will be applicable to the third house financing facility taken out by a borrower. Financing facilities for purchase of the first and second homes are not affected and borrowers will continue to be able to obtain financing for these purchases at the present prevailing LTV level applied by individual banks based on their internal credit policies. The measure aims to support a stable and sustainable property market, and promote the continued affordability of homes for the general public.

At the national level, residential property prices have increased steadily in tandem with economic development and the rise in income levels. This aggregate growth trend remains largely manageable and has not deviated from the long term trend in residential property prices. In the more recent period, however, specific locations, particularly in and around urban centres, have experienced faster growth, both in the number of transactions and in house prices. This is further supported by an increase in financing provided for multiple unit purchases by a single borrower, suggesting increasing investment activity that is of a speculative nature.

The targeted implementation of the LTV ratio is expected to moderate the excessive investment and speculative activity in the residential property market which has resulted in higher than average price increases in such locations. This has also led to increases in house prices in surrounding locations, thus contributing to the declining overall affordability of homes for genuine house buyers. This measure therefore remains supportive of the objective of encouraging home ownership among Malaysians which continues to be an important national agenda.

Introduction of the Financial Capability Programme

As part of the continuous efforts to raise the level of financial literacy and to promote sound financial and debt management by Malaysians, Bank Negara Malaysia also wishes to announce the introduction of the Financial Capability Programme. This Programme will be offered by Agensi Kaunseling dan Pengurusan Kredit (AKPK) through its establishments nationwide and will commence from January 2011. The Programme is aimed at equipping individuals with important knowledge for responsible financial decisions by gaining practical understanding and skills in money and debt management. This in turn will contribute towards preserving the sound financial positions of households and ensure that debt accumulation is commensurate with household affordability, including their ability to absorb interest rate adjustments and potential volatility to income and expense levels. Individuals particularly new prospective borrowers and young adults are strongly encouraged to participate in this specially designed programme. The details of the implementation of the Financial Capability Programme will be announced later in December this year.

Bank Negara Malaysia

3 November 2010

By The EDGE Malaysia (by Joseph Chin)

Sunrise Q1 pre-tax profit up 4pc

Sunrise Bhd's pre-tax profit for the first-quarter ended Sept 30, 2010, increased four per cent to RM52.214 million from RM50.244 million registered in the same quarter last year.

However, revenue fell 9.98 per cent to RM171.272 million against RM190.261 million chalked up previously, it said in a statement.

It attributed the higher profits to lower operating costs while the lower revenue was due to the fact that its projects, Mont'Kiara Meridin, 10 Mont’Kiara and most of Solaris Dutamas were completed in the previous corresponding period.

Sunrise said it has locked in substantial unrecognised revenue of RM863.8 million, as at Sept 30, 2010, with another RM351 million sales recorded in October, mainly from its Quintet project in Richmond, Canada.

The substantial lock-in sales would help sustain the group's earnings until 2013, it added.

The group has several residential and commercial projects in the pipeline with the immediate one being Menara Solaris in Kuala Lumpur, it said.

Publika, the retail gallery at Solaris Dutamas is expected to open mid-2011 offering 320,000 sq ft of net lettable space with 4,000 car park bays, it said.

The construction of 11 Mont’Kiara and 28 Mont'Kiara are on schedule, slated for completion in 2011 and 2013, respectively.

Sunrise is also venturing into the hospitality sector to operate service residences which would be a boon to existing home owners in generating yield occupancy for their properties through medium to long-term leasing, it said.

By Bernama

Exciting decorating ideas to inspire home owners

HOMEDEC, an exhibition for homeowners, will be held at the Penang International Sports Arena (PISA) in Relau from Friday to Sunday.

It is open to the public from 11am to 9pm daily.

HOMEDEC will be a source of inspiration for those who plan to renovate, refurbish or redecorate their homes.

It features new designs, the latest products and innovations for the home.

The highlight of the event is ‘Kids Living’ where there are ideas and settings to show off designs and solutions for a child’s room.

Celebrity designer Eric Leong will provide home tips while feng shui expert Henry Fong will be available to point homeowners in the right direction to maximise qi within their homes.

Tips on choosing the right wall paints will also be provided.

Visitors who spend a minimum of RM100 in a single receipt at the exhibition will be eligible to join a contest to win the grand prize of Cuisinart, KitchenAid and Omega Juicer products worth RM15,000 and also RM5,000 in cash.

A demonstration on making healthy juices will also be held.

Other prizes worth more than RM40,000 are up for grabs.

Visitors who spend a minimum of RM500 in a single receipt will also stand to win a RM20,000 cash reward.

For details on HOMEDEC, call 03-79824668 or 010-2528622 or visit www.homedec.com.my.

By The Star

Property laggards take centre stage

KUALA LUMPUR: Property counters climbed in active trade on Wednesday, spurred by news of impending “material” corporate exercises to be announced by UEM Land Holdings Bhd and Sunrise Bhd.

The two property firms - UEM Land and Sunrise - were suspended at the opening bell following separate requests made to the exchange. No other details were made available as at 5pm.

At the close, the FTSE Bursa Malaysia KL Composite Index inched up 1.03 points, or 0.07% to 1,507.60 points.

Market breadth was positive, with 503 gainers leading 280 decliners, while 307 counters were unchanged. Volume was 1.325 billion shares billion shares worth RM1.436bil.

Smaller property laggard were in the limelight. UM Land Bhd advanced 22 sen, or 13% to RM1.89, Glomac up 8 sen, or 4.9% to RM1.71, while MK Land added 1.5 sen, or 4% to 39.5 sen.

Shares companies linked to Perak state government - Maju Perak Bhd and Perak Corp Bhd - were up sharply in heavy volume.

Maju Perak soared 19.5 sen, or 45% higher at 63 sen on volume of 18.3 million shares, while Perak Corp surged 42 sen, or 36% to RM1.58 on volume of 6.59 million shares.

Shares in Pasdec and Mentiga, both linked to Pahang state government also had a good run. Pasdec jumped 12 sen, or 30% to 52.5 sen, while Mentiga climbed 13.5 sen, or 20% to 82 sen.

In overseas markets, Hong Kong’s Hang Seng rose 2% to 24,144 points, Korea’s main index was up 0.9% to 1,935 points, while in Singapore the Straits Times rose 0.7% to 3,227 points.

By The Star

Contractors renew appeals for stamp duty waiver

CONTRACTORS have renewed their appeals to the government to waive stamp duties on construction-related contracts.

Two years ago, the government said it wanted to simplify stamp duty assessment by revising the rate on all construction services agreements that do not require collateral to 0.5 per cent of contract value.

This covered consulting contracts, operation and maintenance contracts and facilities services contracts. Therefore, a RM10 million construction contract would attract a total stamp duty of RM50,000.

After appeals from trade bodies the Finance Ministry gave a temporary relief by revising the stamp duty to a flat RM50 fee. But this ends at the end of the year.

"The reversion ... will inflate construction costs," Master Builders Association of Malaysia (MBAM) president Kwan Foh Kwai told reporters after Works Minister Datuk Shaziman Mansor launched the third Malaysian Construction Summit in Kuala Lumpur yesterday.

Eventually, these extra but unnecessary costs will be passed on to the government and the public because all construction contracts are either government jobs or packages awarded by property developers in the private sector.

MBAM also appealed to the government to table the Construction Industry Payment and Adjudication Bill for enactment at Parliament. The draft Bill, which was given to the Attorney General's Chambers in early 2007, has yet to make its way to Parliament.

This proposed new law is meant to minimise payment defaults in the construction industry via timely and cost-efficient recourse to adjudication.

By Business Times

Property demand boost in Greater KL

Greater Kuala Lumpur/Klang Valley will need to house one million new residents by 2020, says the Economic Transformation Programme report

DEMAND for medium- to high-end properties in Greater Kuala Lumpur/Klang Valley (Greater KL/KV) is expected to increase to match regional peers, the Economic Transformation Programme (ETP) report said.

Greater KL/KV will need to house one million new residents by 2020, the report added.

Currently, the population of Greater KL/KV is about six million, contributing RM263 billion or 30 per cent to the nation's Gross National Income (GNI).

Over the next decade, Greater KL/KV is targeted to grow in population by 5 per cent annually and achieve a GNI growth of 10 per cent a year.

The economic aspiration for Greater KL/KV is to grow its GNI contribution to RM650 billion by 2020, the report noted.

The economic clusters that will contribute to growth is the Sungai Buloh land development, Sime Darby Vision Valley and Matrade centre as well as the Kampung Baru, Blackwater and Batu Kantomen mixed developments.

Others include the Kuala Lumpur International Financial District, commercial projects in Pudu and Cochrane, the Sungai Besi Bandar 1Malaysia mixed development, Media City Angkasapuri and Global Healthcare Metropolis.

The Greater KL/KV has been identified as one of the 12 National Key Economic Areas (NKEA) laboratories to drive rapid growth parallel with upgrading the city's liveability.

The report said strategic redevelopments such as the old Pudu Jail site, the old KTM railway station and Chinatown has the potential to create more iconic places within Greater KL/KV, adding to its liveability.

Across the 12 NKEAs, Greater KL/KV has the largest public sector funding requirement of RM58 billion or 34 per cent of the total investment requirement.

Greater KL/KV covers 10 municipalities, each governed by local authorities - Kuala Lumpur City Council, Perbadanan Putrajaya, Shah Alam City Council, Petaling Jaya City Council, Klang Municipal Council, Selayang Municipal Council, Ampang Jaya Municipal Council and Sepang District Council.

The ETP has outlined nine entry point projects that will be pivotal towards achieving the nation's aspiration for Greater KL/KV to achieve a top 20 ranking in city economic growth by 2020.

The aim is also to attract 200 new MNCs by 2020. Attracting 100 such firms will contribute about RM40 billion in annual GNI to Greater KL/KV.

There are now 1,600 MNCs based here, compared with 17,000 in Shanghai and 6,000 in Singapore.

By Business Times

ARK in RM100m Paroi job

PETALING JAYA: ARK Resources Bhd has entered into an agreement with Prop Development Sdn Bhd to complete the construction works worth RM100mil for the development of business/commercial units and buildings in Paroi, Negri Sembilan.

In a statement to Bursa Malaysia yesterday, the group said it would undertake the main construction works under the project on a design-and-build basis, carried out in two phases and expected to be fully completed in two years.

It added that the award of the contracts for the project was conditional inter alia upon the successful completion of ARK’s corporate restructuring exercise, re-quotation of ARK’s shares on the Main Market of Bursa Malaysia and upliftment of ARK’s PN17 status within 120 days from the date of the agreement, and relevant approvals from the authorities/parties to commence the development of the project.

By The Star

Framework for disused mines

PETALING JAYA: A solid commercial framework that embraces environmental concerns is necessary to transform disused mines into useful land, said Malaysian Chamber of Mines (MCOM) president Datuk Seri Mohd Ajib Anuar.


»We are targeting to produce a blueprint on the use of ex-mining land in 12 months to be forwarded to the Government« DATUK SERI MOHD AJIB ANUAR

Mohd Ajib said there was a common perception by the public that former mines were barren and useless.

“This is not true. There is definitely life after a land is mined off its tin and other minerals.

“Ex-mining land can be used for many commercial and community-driven activities,” he told StarBiz yesterday after the launch of a coffee table book titled Tin Story: Heritage of Malaysia by MCOM.

The book was launched in conjunction with the inagural International Conference and Exhibition On the Rehabilitation, Restoration and Transformation Of Mining Land, which started yesterday and ends tomorrow.

The conference was to gather experts in various fields from 15 countries to meet, brainstorm and look at commercial as well as sustainable ways to maximise the use of former mines nationwide.

“We can learn from each other’s proven ways to commercialise idle ex-mining land to benefit people in a profitable and sustainable manner,” he said.

Mohd Ajib said MCOM, together with various parties including the Kuala Lumpur Tin Market, Ministry of Natural Resources and Environment, Department of Minerals and Geoscience as well as external parties were collaborating on two fronts.

“We are targeting to produce a blueprint on the use of ex-mining land in 12 months to be forwarded to the Government for approval and the development of a solid commercial framework for those interested in converting ex-mining land into useful land,” he said.

There are about 200,000 hectares of disused mines across the country, of which two-thirds have been used while the balance one-third remain idle.

Mohd Ajib, who is also Kuala Lumpur Tin Market chairman, said it had been proven that former mines could be used for various agricultural activities, property development and as a place to harvest renewable energy.

“We are in talks with several experts to kickstart various projects on ex-mining land and some of the projects are expected to commence once we get the nod from the authorities,” he said.

Mohd Ajib said there was also opportunity to market the talent (in the use of former mines) to other countries.

“We also believe these projects will create a lot of employment for Malaysians locally and abroad once they have developed the required skills.”

By The Star

Winners see benefits in clinching FIABCI Malaysia Property Award

PETALING JAYA: To the casual observer, the annual International Real Estate Federation (FIABCI) Malaysia Property Award (MPA) might just be glitz and glamour, but previous victors have attested that winning has certainly helped boost their business in some way.


Yeow Thit Sang ... Winning the awards had a number of intangible benefits.

FIABCI-Malaysia president Yeow Thit Sang said winning the awards had a number of intangible benefits.

“It helps boost the winner’s branding and marketing. It also helps generate publicity to get their products to another level,” he said.

Perdana ParkCity Sdn Bhd marketing and sales director Susan Tan said when the company won the MPA for best residential (low-rise category) for its Adiva Parkhomes at Desa ParkCity in Kuala Lumpur, prices of the houses shot up.

“We noticed some price appreciation for Desa ParkCity properties in the secondary market with Adiva enjoying as much as 30% additional increase in prices after the awards were announced,” she said.

The following year, Perdana ParkCity’s Adiva bagged the FIABCI Prix d’Excellence Awards 2010 for the residential (low-rise) category in Bali.

“Obviously, winning did put Desa ParkCity in the spotlight and we have benefited from the exposure as more purchasers and investors are keen on other offerings (that we have) available,” said Tan.

Sunrise Bhd assistant general manager for branding and community development, Anne Tong, said winning at FIABCI was like “icing on the cake” for the company.

“Accolades from prestigious professional bodies such as FIABCI builds credibility for the Sunrise brand, which will in turn instill customer confidence in our products and services,” she said.

Tong said winning at FIABCI helped to elevate awareness to purchasers on its product quality and service excellence.

“Winning a competitive award confers peer acknowledgement that we are on track in our mission to deliver sustainable value to customers.”

Sunrise has won accolades at FIABCI for projects such as Mont’Kiara Palma (1997), Mont’Kiara Sophia (2001) and Mont’Kiara Damai (2005).

Selangor Dredging Bhd communications and corporate affairs manager Lina Othman said among the benefits of winning a FIABCI award was that it gave credibility to the development as it was recognised to be one of the finest in the country.

“It also gives credibility to the company for being able to come up with an award-winning building. This of course helps with marketing of other developments as it is a testimony of the company’s commitment and capability in developing quality homes,” she said.

Selangor Dredging won the MPA in 2009 for its Park Seven development (residential high-rise). The project was subsequently runner-up at the Prix d’Excellence 2010.

FIABCI Malaysia will be organising the 2010 MPA on Nov 11 in Kuala Lumpur with Malayan Banking Bhd as the official sponsor. A total of 10 categories will be contested.

Winners of the MPA in their relevant categories will represent Malaysia the following year at the International Prix d’Excellence, an annual competition that honours the world’s best property projects.

By The Star

PKNS to spend RM140.7m for Bukit Botak

The Selangor government, through the Selangor State Development Corporation (PKNS), will spend RM140.7 million to develop Bukit Botak.

Menteri Besar Tan Sri Abdul Khalid Ibrahim said the development would involve 1,422 single-storey terrace houses which would be offered to the landowners for RM99,000 each.

"If the landowners don't want the houses, PKNS will buy them from the landowners at RM170,000 per unit," he said after the project's ground breaking ceremony in Selayang today.

The houses bought by PKNS would then be offered to the public at a price based on the size of land per unit, he added.

"The project is part of the economic stimulus package introduced by the state government which among others focuses on redevelopment of stalled housing projects like Bukit Botak," Khalid said.

He said the project was being carried not for profit but a charity.

The Bukit Botak development project involves 201 acres and a resettlement of 2,300 families who have been waiting for over 20 years since the project began in 1986.

The houses are expected to be ready for occupation by June 2012.

By Bernama

DRB-HICOM seeks revenue balance

DRB-HICOM Bhd plans to improve the balance of revenue contribution from its services, automotive and property businesses over the next five years as it seeks to expand.

Currently, its motor vehicle business makes up some 57 per cent of revenue, followed by its banking, insurance and power plant maintenance services at about 40 per cent.

Property makes up less than 2 per cent of revenue now, but DRB-HICOM wants to boost this to 20 per cent in five years.

"I never like to put all my eggs in one basket," group managing director Datuk Seri Mohd Khamil Jamil told reporters at a briefing in Kuala Tahan, Pahang, yesterday.

DRB-HICOM, controlled by Tan Sri Syed Mokhtar Al-Bukhary, reported net profit of RM472 million in the financial year to March 31 2010, 29 per cent down from the year before mainly because it gained almost RM600 million from an asset sale last year.
Revenue hit a record of RM6.3 billion.

The group plans to launch properties with a total gross development value of RM9 billion over 10 to 15 years. This will be a mix of residential and commercial properties.

It has some 607ha near Mount Austin, Johor, which will be developed into a new township.

"There are still pockets of land in DRB which are very prime," Mohd Khamil said. They include a piece of land in Taman Wahyu in Jalan Tun Razak, Kuala Lumpur, and tracts of land in Shah Alam, Selangor.

This month, it plans to launch Glenmarie Gardens, a high-end bungalow project.

As for its motor vehicle business, it aims to sign a definitive agreement with Europe's Volkswagen AG (VW) next month.

VW had signed in August a memorandum of understanding with DRB-HICOM to produce VW cars from 2012 at the group's plant in Pekan, Pahang.

"The final negotiations are going on well and the parties are finalising the terms," he said.

Eventually, the deal may include the export of VW cars to Asean countries, among other things.

DRB-HICOM is also still looking for a foreign partner to buy 30 per cent of its Islamic lender, Bank Muamalat Malaysia Bhd. It holds 70 per cent of the bank currently.

It was in talks with five foreign parties and one local firm, but the talks fell through amid the global financial crisis last year.

Asked about the weak performance of its stock, Mohd Khamil said it could be due to the fact that the group was too diversified.

It is also classified under the industrial sector on Bursa Malaysia although services have become a big part of its business.

"If shareholders understood the nature of our business, the share would definitely escalate and show their true value," Mohd Khamil said.

Apart from Syed Mokhtar with 55.92 per cent, its other main shareholders are the Employees Provident Fund with 9.11 per cent and Khazanah Nasional Bhd with 5.13 per cent, according to its 2010 annual report.

By Business Times

Most Malaysians cannot afford the high price of property

With prices of terraced houses in the Klang Valley and Penang having appreciated beyond the regular RM300,000 to RM600,000 range to close to and some even surpassing RM1mil, it is not surprising to find many average Malaysians who are rather hapless or even lost as to what and where to buy their house.

There are really not many choices available to them unless they don’t mind moving further away to other suburban addresses where they would have to travel longer distances. But if they still choose to stay near the conveniences close to the city centre, most of them will have to settle for much smaller units or apartments with the price that they can afford.

To maximise their land use, developers have resorted to building high-rise dwellings instead of landed houses which account for the short supply of such housing these days.

A shortage of land available for development can be singled out as one of the factors for the sharp increase in land cost and property prices.

Whatever large tracts of land available have already been snapped up and what’s left are mostly smaller plots.

In Kuala Lumpur, land prices have appreciated even more sharply and the recent sale of a piece of land for over RM7,000 per sq ft has raised alarm among some consumer groups and industry players.

They worry that the high price transacted for the land will be used as the bargaining power for other land owners to push their land prices upwards in the surrounding areas.

This will inevitably be an unhealthy prelude to an overheating in the property market as land is the basic commodity in a property development process. When the price paid for a piece of land escalates way beyond the market norm or the last transacted price, it has actually moved ahead of market fundamentals.

The question is who then will have to bear the high cost at the end of the day. Certainly it will not be the developers as they will factor into their total project costing and recoup the cost by pricing the property they build higher.

And if the property is not for sale but for leasing, the rental rates can also be expected to be higher. Although property buyers are not directly or immediately affected by the high land cost, they will also have to share part of the burden when the prices of goods and services are fixed higher (as the business operators who rent the space will factor the high rent into their pricing.)

If we are worried of a potential property bubble, it is important to keep a close watch on the availability of land supply to keep prices of land in check.

Opening up new corridors of land for development is an effective and speedy measure to ensure adequate land supply.

The other option is to encourage redevelopment of dilapidated parts of the city or old buildings and add value to them.

The Government’s plan to redevelop the 160ha Sungei Besi airport and the 1,320ha Rubber Research Institute land in Sungei Buloh should help to ease the land-scarcity problem.

The initiative should be accorded a top priority and, if possible, a dedicated agency is set up to oversee the whole planning and development process for these large parcels of land, taking into account the real needs of the people.

This will ensure better integration of public transport services and other infrastructure, housing and other commercial property needs that are more long-term and sustainable.

Given the huge need for more affordable housing in the Klang Valley, especially homes priced between RM200,000 and RM350,000, this will be the golden opportunity to plan for such housing projects. Hopefully at least 30% of the land for housing development will be allocated to affordable housing for all eligible Malaysians.

It is indisputable that real estate is an important economic sector, accounting for 50% of the country’s wealth. But the cap on the sector’s growth could be the relatively lower earning and purchasing power of Malaysians compared with those in other high income countries. For the industry to leapfrog to another level of growth, the people’s purchasing power has to grow faster or at least in tandem with the rising property prices as we will need investors who can afford to pay for the high-end properties that are to be built.

The Government’s iniatitives to turn Malaysia into a high income economy will create the platform for the people to earn higher per capital income to support their higher purchasing power.

Expanding the pool of buyers who have the means to absorb the high-end property that are being churned out by developers now will hopefully create a more sustainable property market – one where demand matches supply.

Otherwise the market will have to depend on foreign buyers who can afford to pay for the high-end property.

Deputy news editor Angie Ng believes developers, especially those who own large tracts of land and are involved in major township development, have a moral responsibility to offer a more balanced portfolio of different range of housing projects, to help cool the market from overheating.

By The Star

Mayland sees demand for city condominiums

Hong Kong-based property developer Malaysia Land Properties Sdn Bhd (Mayland) is very bullish about demand for high-rise condominiums in the city.

Based on the positive take-up rates of their properties so far, director Andrew Chiu says the interest in certain categories of city condominiums is expected to remain sustainable this year and next.

He says interest will be on properties of about 1,000 sq ft and below. More than half of its Royal Regent development in Jalan Kuching is sold. The only ones left are the bigger units with a built-up of 1,500 sq ft and above. The smaller units ranging from 900 sq ft to 1,200 sq ft have been sold.

“Even before we launched, our previous buyers have taken up the smaller units,” he says. A typical Mayland investor will have two to three projects already and these buyers bought nearly 70% of Royal Regent, with some of them buying two or three units at a time, he says.

Royal Regent is the third project in the Jalan Kuching location. The other projects in that 20-acre site includes Sri Putramas 1, Sri Putramas II and Royal Domain.

Sri Putramas I was the first project to be launched in that location in 2002. The units, with a standard size of about 1,000 sq ft, had prices starting at RM140,000.

Mayland subsequently launched Royal Domain at about RM200 per sq ft with units priced at about RM240,000. Today, Royal Domain, is selling at about RM320 per sq ft.

Its latest launch, Royal Regent, is priced at about RM400 per sq ft, says Chiu, adding that the location will have a total of about 3,500 units, with the completion of phase four. Royal Regent. which is phase three, is expected to be completed in 2013.

Mayland is also building Regalia@Jalan Sultan Ismail with Bina Puri Holdings Bhd, one of the largest construction groups in the country. The 38-storey has a gross development value of about RM600mil. It is scheduled for completion by early 2011.

“We are positive about demand for units located in the Golden Triangle. Land is a scarce commodity and if the Malaysian government can get the public transport system off the ground, this will add further value to the projects in the city,” Chiu says.

He says property development has become so sophisticated in his home country in Hong Kong that even with a 2,300 sq ft piece of land, it is possible to put up a 40-storey building with no car parks.

Buoyed by demand, Mayland is also embarking on another high-rise project in Ampang, just behind Ampang Point shopping centre. Known as The Elements@Ampang, the freehold service apartment project will have a gross development value of RM650mil. It sits on 2.6 acres adjacent to another high-rise project known as GBC.

The Elements will be developed by Land & General Bhd (L&G). Mayland is the largest shareholder in L&G. Besides Ampang Point shopping centre, the other closest mall is Great Eastern Mall.

The Elements will be competing with Mah Sing group’s M Suites and Brunsfield’s EmbassyView. While The Elements is located a little way off Jalan Ampang, M Suites and EmbassyView are located on Jalan Ampang itself.

L&G MD Low Gay Teck says there are several international schools in the vicinity of The Elements. These are Fairview International School, Sayfol International School, International School of Kuala Lumpur and Mutiara International School.

It will be served by Gleneagles Intan Medical Centre, Ampang Puteri Specialist Centre, Pantai Indah Hospital, Hospital Ampang, Ampang Medical Centre and Prince Court Medical Centre.

Prices at The Elements begin at RM350,000 for units with a build-up of 625 sq ft. The largest built-up is 1,550sq ft.

Low says the company is looking to buy land for residential developments with plans to sell the units at RM400 per sq ft and above.

“Cost of construction and inflation will only go up. As the Government moves along in their plans to remove subsidies, cost of construction, building materials and labour will only go up. Land prices will not be coming down. so prices will just have to keep adjusting upwards,” says Low, adding that there is a demand for land in light of expected future increase in prices.

He says the demand for certain types of properties have also led some developers to price their units at RM5mil in a RM2mil-a-unit area.

As for Mayland and companies within the group, Mayland advertising and promotions manager Ian Tay says the group together with L&G have a good following of buyers.

“Both The Elements and Royal Regent will appeal to different categories of investors. Most of those who buy into Royal Regent are upgraders. They have probably units in Sri Putramas I and II, and maybe even Royal Domain and they see the opportunity to buy into Royal Regent at RM400 per sq ft because they know the city will continue to expand. The development in the Matrade area by the Naza group is after all just a few minutes drive away,” says Tay.

Over at Elements, with prices beginning at around RM700 to RM750 per sq ft, most buyers would be investors. Tay says many may not be able to afford to stay in the city but they will want somewhere close to the city. “Ampang is not too far away from the KLCC City Centre, so the appeal is there,” he says.

By The Star