Saturday, December 31, 2011

Will the slowdown in property prices continue?


Yes.
IN all likelihood, there will just be slower growth across the board for the mere fact that the last three years have seen exceptional growth since 2008, when the global crisis hit. The following year saw a recovery and 2010 was a year of exceptional growth. Property professionals had never seen such price increases in their 30 years in the profession, where prices went up by double digits in a short period of time.
This year witnessed continued exuberance among developers, agents and property buyers. The final two quarters usher us into 2012, which will be the year of the “great slowdown”.
It will be perceived as such because of the remarkable growth experienced in 2010, but in reality, it is not really a slowdown. It is not possible for prices to go up, up and away until kingdom come.
There has to be a reality check. So we will see slower growth in the coming year. In some locations, prices may hold their ground, but unless something major happens, whether at home or abroad, prices are unlikely to recede in the Klang Valley and other major cities.
Hence, it is not that there will be no growth; price increases next year will be slower, and more subdued and stable. In some locations, prices may plateau.
If there is still growth, however small, why call 2012 the year of the great slowdown?
On the global front, we have the eurozone crisis, which is still unravelling. If the eurozone breaks up, it will affect sentiments. The stock market will be the first to be impacted by the dim outlook and this will spill over into the property sector.
Of greater concern are individuals who have over-invested. They may find it challenging to meet their commitments. These include those who have multiple property purchases, and young people who over-committed themselves with properties costing RM500,000 and more. - The Star

Property market welcomes new group of buyers


BEGINNING tomorrow, new guidelines from Bank Negara Malaysia to curb rising household debt are going to kick in. The guidelines cover all consumer loan products including housing, personal and car loans, credit card receivables as well as loans for the purchase of securities.
Instead of loan approvals being based on gross pay, they will be based on net pay, after income tax, social security deductions and the Employees' Provident Fund contributions. These are the three main items. The objective of this ruling is to reduce the household debt which has been on the rise.
In all likelihood, property sales will be affected but what is interesting is, how this ruling will affect an increasingly younger generation of buyers who are entering the market for the first time.
In the last 24 months, developers have seen a new group of buyers. They are young and aggressive, upbeat and have a huge appetite for risk. Many of them are in their 20s or early 30s. Many buy with joint names and they are not related to each other. They buy studio units and two-bedroom condominiums, with a built-up of between 600sq ft and 800sq ft with a price tag of averaging RM500,000. When the mortgage payment kicks in, that RM450,000 loan (based on a 10:90 scheme) will equate to a monthly repayment of about RM2,500.
A developer says this scenario is due to a combination of factors. The steep rise in property prices the last two years, coupled with the gains, have spurred this young group of buyers to take on the responsibility of shouldering this long-term commitment.
More than 10 years ago, during the stock market bull run of the 1990s, the market was on an uptrend for a good number of years before the Asian Financial Crisis hit the region. At that time, many young people, including college students, began dabbling in the stock market. Just as that period prompted young people to learn about stocks, the last two years have introduced them to another investment instrument. The difference between the two is the outlay, and the duration of that commitment with stocks needing a smaller capital and more liquid.
Developers say there are essentially two groups of young people who have entered the market in the last two years. The first group are those who, seeing the gains made by earlier purchasers, enter the market with the objective of making a quick gain. Another group ventures into the market before prices go up further and they plan to hold the property for the longer term.
A major factor that encourages this group of aggressive young buyers is the availability of easy credit. The introduction of the 10:90 schemes induces them to make the decision. Many of them hope they will be able to flip that property on completion and make that 25% to 30% gain.
For this group who are buying to flip, they may find the gains not worth the while for the simple reason that the premise of making a 25% to 30% gain is based on a rising market. Prices are today stabilising and there is a glut of high-rise condominiums.
Lawyers and property professionals say investors are unlikely to make that 20% gain going forward. Furthermore, the 5% real property gain tax will also shave off gains. In the event they are unable to off load their units fast enough, they will have to rent them out, but they may encounter another problem a glut of condominiums and few tenants. - The Star
>Assistant news editor Thean Lee Cheng wonders how many of these young buyers will stick with their commitment.

Urbanising Malaysia calls for the adoption of smart-growth principles


STRONG emphasis given by the Government in strengthening the economic attractiveness of Greater Kuala Lumpur, improving the overall public transportation system, improving linkages in major growth centers and other initiatives identified under the various National Key Economic Areas (NKEAs) will have great implications on future development of cities.
These NKEAs will influence the direction as well as speed of growth of the cities where the projects are carried out, which will then influence the property market of these cities.
Realising the high speed of urbanisation rate in Malaysia and the inefficiency that could be created by urban sprawl, it is of high importance that sustainable development be given due consideration. This has become the main focal point of discussions in property seminars and conferences in Malaysia and the region.
At the recently held The 3rd Congress of Asian Association of Urban Regional Studies, the theme was Survival City and Region: Risk or Sustainable Planning, speakers and participants were all in agreement on the need to plan, design and invest in smarter cities where sustainable planning becomes the guiding criteria.
Smart cities require skilled workers and innovative ideas. These cities must address green and sustainable issues and be resilient against natural hazards. The President of Thai Planners Society, Professor Dr Eggarin highlighted that sustainablility did not always translate into higher cost of building cities as there were natural methods to incorporate green issues in property development but required innovative techniques to suit the local environment.
It was also highlighted by Annette Dixon, the World Bank's Country Director for Malaysia in the November 2011 edition of the Malaysia Economic Monitor that “as cities concentrate a growing share of the national economy, it is imperative that they have systems to manage natural hazards and prevent them from becoming human and economic disasters.
Malaysian cities are especially vulnerable to floods and landslides. To reduce the risks related to these hazards, Malaysia would benefit from environmental restoration and integration of risk reduction into development planning”.
To lead the move towards sustainable development, one of the key thrusts of the National Housing Policy 2011 is to promote sustainability in the housing sector by promoting green technologies and features, and encouraging urban renewal and redevelopment. In Malaysia, this growing awareness on sustainable development has resulted in various commercial as well as residential developments using “green features” as one of the development concepts and theme or their unique selling features.
Ken Bangsar and 28 Mont Kiara are two examples of outstanding high rise development employing green features and technologies. Sunway Rymba Hills and Cahaya SPK Shah Alam are examples of landed residential development that integrate natural forest and open park. Launched last month, KL Eco City is going to be the country's first integrated green development targeting GBI and LEED certifications.
It can be concluded that it is becoming a “must” for property players from planners, architects, engineers to developers to take initiatives to create liveable cities by incorporating smart-growth principles in their planning and design.
We expect more new development and redevelopment projects to adopt similar principles, In the long run, smart-growth principles will add value not only in terms of capital appreciation of the properties but also social and economic liveability of entire communities.
Urban renewal and redevelopment projects are currently taking place in Kuala Lumpur city center and mature cities like Petaling Jaya. These are indications of the need for cities to grow vertically to create economies of scale in terms of space consumption and the need to minimise vehicular movement.
The current redevelopment of AngkasaRaya (Aurora Tower@KLCC) and Bok House (W Kuala Lumpur, The Hotel and Residences) and the proposed redevelopment of Hotel Istana, Kompleks Antarabangsa and Crowne Plaza into a mix of commercial and residential uses will encourage more owners of older buildings in the city center to take similar steps.
In Petaling Jaya, owners of older industrial buildings are redeveloping their land for commercial use. Approximately 16 million sq ft of prime office space will be completed by 2016 in Kuala Lumpur city center and its immediate areas, increasing the total supply by 22% to 86 million sq ft.
With the current slow take up in office space, rent is expected to remain stable in the next few quarters, hovering between RM5.50psf and RM6.50psf.
About 11,000 new condominiums with prices ranging from RM500psf to more than RM1,000psf will be completed by 2014. Due to the high supply of newly completed condominiums within the Golden Triangle Area and Embassy Row, average rental rate for selected existing condominiums has declined by almost 5% from RM4.66psf to RM4.44psf and from RM3.49psf to RM3.31psf respectively.
Several newly completed condominiums have even lowered their asking rental rate by almost 10%. We expect the leasing market for condominium will continue to be more challenging especially for bigger units though take up rate for new projects in most cases is very encouraging, with a significant percentage of local buyers.
The retail market will see more neighbourhood malls in the Klang Valley completed between 2012 and 2015 adding about 7.5 million sq ft to the current total supply of 51.4 million sq ft. Most of these new malls are located in high growth areas such as Petaling Jaya, Kelana Jaya, Cheras, Setapak, Kota Damansara, Puchong and UEP Subang Jaya.
Will the growth of residential and commercial properties slow down in 2012? Looking at the numbers provided by the Statistics Department and RAM Economics, average annual transaction growth rate of these properties has continued to slow down from 12.8% (1991-2000) to 5.9% (2001-2009).
With the growing population, high percentage of working population and growth in employment supported by various Entry Point Projectsthroughout the country, we expect the Malaysian economy to provide a conducive environment for the property market to continue to be one of the key economic contributors.
>Senator Datuk Abdul Rahim Rahman is the Executive Chairman of Rahim & Co group of companies. This is his last column forStarBizWeek.

S’pore stamp duty a blessing?


Singapore's decision to impose additional taxes on private property purchases may be a blessing in disguise for other property markets in the region.
CB Richard Ellis (CBRE) Malaysia executive director Paul Khong says move will have a positive impact on Malaysian properties especially those in Johor.
Malaysian properties appear to be even cheaper as a result of the stamp duty by the Singapore government which translates into a further 10% discount compared with properties in Singapore.
“Many other countries including Australia and Britain will benefit as their investment climate is improving due to the lower interest rates and poor market conditions which will make their propertiesattractive to buyers. They are the favourite investment destinations too,” he tellsStarBizWeek.
Singapore has announced an additional buyer's stamp duty (ABSD) of between 3% and 10% from Dec 8 on private property purchases, and it is applicable to all Singaporeans, permanent residents and foreigners. The move is aimed at “moderating demand and promoting a more stable and sustainable market.”
The ABSD is in addition to the buyer's stamp duty of 3%.
Khong says the imposition of an additional stamp duty on residential properties will have substantial impact on the Singaporean market.
“Many foreign investors will stay away from the market for a while and the tax will curb speculation on the market,” he says.
Observers are of the opinion that the Malaysian government is unlikely to impose more taxes to “ease” the property bubbles in some key locations.
“The Malaysian government is unlikely to take such an action even though the property prices in some areas especially in the Klang Valley are going up unreasonably,” said a local research house analyst. He says such a move could deter growth in the property market and even suppress demand.
According to Maybank Investment Research, prices of private residential properties have continued to rise, albeit more slowly in the last two quarters. It says prices are now 13% above the peak in second quarter of 1996, and 16% above the peak in second quarter 2008.
“Even with the current global economic uncertainty, the demand for private residential property remains firm largely driven by the volatility in the equity markets and with interest rates remaining low, private property in Singapore continues to attract local and foreign investors,” it says.
The introduction of guidelines on responsible finance by Bank Negaralast month has helped to clear some concerns about possible lending measures to curb property demand.
“However, the new guidelines are unlikely to lead to a significant drop in the prices of the property market. We think there is still a possibility for further property cooling measures if housing demand remains strong,” it says.
Meanwhile, Khong says the Singapore property market may take quite a while to adjust to the new move as the duty imposed this round is a hefty 10%.
Currently, the real property gains tax (RPGT) for properties held and disposed of within two years from the date of purchase stands at 10% (up from the current RPGT of 5% for properties sold within five years of the date of purchase).
On Wednesday, the Real Estate Developers' Association of Singapore (REDAS) said the latest move by the Singapore government to cool the residential property market might cause the economy to slip into a recession.
REDAS president Wong Heang Fine was quoted by Reuters as saying that industry players were of the consensus view that the measures would, at least in the short term, negatively impact property sales volume and price.
Local players vs new ruling
It is still too early to know the impact on the Malaysian developers who are making a foray into Singapore although there would be an unavoidable slowdown in Singapore property sales, according to Maybank Investment Research.
“This new ruling will not bode well for Malaysian developers which have projects in Singapore. Unlike Malaysia a buy and hold strategy is less applicable in Singapore due to relatively higher land costs of 40% to 60% of gross development value GDV compared with 15% to 20% in Malaysia's,” it says.
Sunway Bhd and SP Setia Bhd have property projects in Singapore while UEM Land Bhd has an indirect involvement via project fees from overseeing and marketing of Khazanah-Temasek's SG$11bil joint venture projects in Marina South and Ophir-Rochor.
Sunway has four ongoing projects with a total GDV of SG$1.7bil under its 30:70 joint venture with the Ho Hup Group and a small wholly owned projects with a GDV of SG$32.8mil.
SP Setia just started to make inroads with its first project known as the 18 Woodsville under a private development scheme expected to be launched in a few months.
“We believe the impact on Malaysian property players will be rather minimal as their exposure to the Singaporean market is relatively small.
“With the ABSD, we think there is possibility of some property investors turning their attention to the Malaysian market, especially in Johor given its proximity to Singapore,” OSK Research says. - The Star

Making ringgit and sense in property investments


MAKING sensible property investment decisions, especially in the Klang Valley, is getting tougher in today's climate where real estate values are constantly spiralling upwards.
So, would buyers of recently launched properties in the Klang Valley be able to obtain decent rental yields of at least 5% per year after the units are completed in two or three years?
A recent report by property consultancy CB Richard Ellis notes that the average asking monthly rental rates of luxury condominiums, during the first half of 2011, in Bangsar and Mont Kiara were RM3.29 and RM3.13 per sq ft respectively.
The report points out that rental rates in the three main condo markets (Kuala Lumpur City Centre (KLCC), Bangsar and Mont Kiara) on a per sq ft basis had declined since 2007, reflecting weaker demand for rental units coupled with increased supply.
Two months ago, CB Richard Ellis executive chairman Christopher Boydsaid: “In some cases in the KLCC area and Mont Kiara, condominium rentals have halved in the last two years.”
Meanwhile, those who are looking at swifter returns on their investments would be asking about the potential increase in value for such units within the next three years, as they want to “flip” their purchases.
A bank-backed property analyst explained that presently, there is a huge gap between the prices of recently launched properties and secondary market units.
“Recently launched properties offer better BLR (base lending rate) spread. Many property developers offer 10:90 schemes, and also absorb entry costs such as the stamp duties.”
However, he says within the next two years, it would be difficult to “flip” recently launched properties that were bought at above RM500,000 depending on unit size and location.
The analyst took the view that many buyers of recently launched properties are facing a “short-term gain, long-term pain” situation.
“I am not hopeful about “flipping” such units and getting a 20% price upside within two years. Buyers also need to pay exit costs like real property gains tax. You may end up with the same returns that real estate investment trusts (REITs) provide presently, which is about 6% to 7% annually.”
So perhaps, investors would do better in buying REITs in the current climate?
CB Richard Ellis executive director Paul Khong said the benefits of investing in REITs include their high liquidity, annual dividends ranging from 6% to 8% per annum and potential capital gain if prices increase.
“The quantum of investment can be small. For example, 1,000 shares in CMMT (CapitaMalls Malaysia Trust) would cost you RM1,440 and some brokerage fee. CMMT was listed (in July 2010) at RM980 per 1,000 shares. If you had invested on day one, you would have made more than 50% gain both capital value and dividends. REIT values are largely more stable and the dividends are usually very consistent.”
HwangDBS Investment Management Bhd equities head Gan Eng Peng concurs and notes that REITs tend to be well diversified, and property fund managers have advantages over individual landlords in terms of attracting tenants as they have “a larger network, reputation and backing behind them.”
“Also, the REIT property fund manager would have done the homework to ensure the property is a good investment and that the tenancy process is also sorted,” he said.
Gan said investors should adopt a longer-term view when investing in REITs.
“REITs are considered a defensive play within the equity asset class. Its performance moves in tandem with economic growth and business cycle.”
However, REIT investors have no direct control of what properties the fund managers invest in and there are annual management fee payments to the fund managers, says Gan.
Meanwhile, Khong took the view that investors who have the means should have both portfolios in physical real estate and REITs.
Khong says there is a “toppish” feel regarding increasing prices for recently launched residential apartments in the Klang valley, and many developers are offering more in terms of quality finishing and full furnishing.
“We note that 2011 has been a good year for the residential market with many new projects topping the charts in terms of pricing.”
Khong points out that the residential markets in areas like Petaling Jaya, Sri Hartamas, Bangsar, Damansara, Puchong and Seri Kembangan have seen substantial increases in capital values.
“Some of the newer strata projects have also done well during this period. These include The Greens @ TTDI, The Capers @ Sentul East, and KU Suites @ Kemuning Utama.”
Based on indicators in regional markets, he expects the local market to stabilise in 2012 with “some positive movements”.
However, property consultancy DTZ Nawawi Tie Leung executive director Brian Koh says, “2011 will see more moderate growth given that the second half was not fantastic. Next year will be more challenging given slower growth, and a tightening of liquidity through the imposition of lower financing margin and pegging to the net disposal income of borrowers.”
A property analyst says there are signs that financial institutions are more cautious in lending to real estate buyers nowadays.
“Unless the economic situation improves substantially, property investors may want to wait till the second half of 2012. There may be pressure on secondary market unit owners who are looking for quick “flips” to sell at lower prices.”
Gan also expects the Klang Valley property market to be softer in 2012.
“In particular, the oversupply of condominiums in Mont Kiara and KLCC, and offices in general, will cap the upside potential of these sub-asset classes,” says Gan.
However, Gan emphasies that this does not mean lower property prices as there is substantial real demand from young property upgraders as well as ample liquidity in the economy. - The Star

Friday, December 30, 2011

OSK: Residential property market to remain encouraging next year


KUALA LUMPUR (Dec 28): The residential property market is expected to remain rather encouraging next year as consumers start to focus on affordable homes.

OSK Research Sdn Bhd said the fact that most of recent launches were of units in the high-end segment could signal that the upcycle is at its tail-end and developers were rushing to capture any remaining upside before the sentiment for such properties turns sour.

"Subsequently, we expect developers to shift to the more affordable mass-market housing segment to tap into the high demand by first-time young buyers," it said in a research note on Wednesday.

The shift became more apparent recently when high-end developers such as S P Setia Bhd and Mah Sing Bhd acquired sizeable pieces of land in the Klang Valley for developing townships that offered affordable housing.

"For those which remain focused on the high-end market, we see them offering smaller housing units with the aim of making the price per unit appear more affordable," it said. OSK maintained a "neutral" call on the property sector, on the fact that property counters tend to underperform or market perform when sentiments weaken. — Bernama
 

Wednesday, December 28, 2011

Panoramic park plan for Pearl Hill


A PIECE of land covering the peak of Pearl Hill in Tanjung Bungah and its surrounding area in Penang will be transformed into a park with a viewing point for tourists.
Tanjung Bungah assemblyman Teh Yee Cheu said a 6.07ha piece of land where a Tua Pek Kong Temple is located near the peak of the hill had been identified for the project.
He said the park would be loca-ted some 152.4m above sea level.
It would provide tourists with a panoramic view of the sea, Tanjung Bungah, Tanjung Tokong and Batu Ferringhi, he said.
Historic site: The park project will include an existing Tua Pek Kong Temple.
He also said a working committee comprising temple committee members, residents, Tanjung Bungah Resident Association members, Tanjung Bungah Community Development and Security Committee (JKKK), Taman Seri Setia JKKK, would be formed in two weeks’ time.
“The committee will look into cleaning and beautifying the surrounding area.
“We hope to allocate a small plot for a Chinese medicine practitioner to plant some herbs,” he said, adding that the Penang Municipal Council would also be working together with the committee on the project.
Teh said development in the area would be kept minimal.
“We do not know how much will be needed for the project until the committee is formed.
“The state has agreed in principle to the project and I hope the paperwork will be completed soon to get the project started,” he said after holding a discussion session on the project with residents and members of the concerned groups yesterday.
Teh said the private sector was also welcome to sponsor some tables and chairs for the pro- ject.
He said that besides the Chinese temple, there were also seven army bases and an observatory built by the British in the area. - The Star

Residential property mart seen 'encouraging'


The residential property market is expected to remain rather encouraging next year as consumers start to focus on affordable homes.

OSK Research Sdn Bhd said the fact that most of recent launches were of units in the high-end segment could signal that the upcycle is at its tail-end and developers were rushing to capture any remaining upside before the sentiment for such properties turns sour.

"Subsequently, we expect developers to shift to the more affordable mass-market housing segment to tap into the high demand by first-time young buyers," it said in a research note today.

The shift became more apparent recently when high-end developers such as SP Setia and Mah Sing acquired sizeable pieces of land in the Klang Valley for developing townships that offered affordable housing.

"For those which remain focused on the high-end market, we see them offering smaller housing units with the aim of making the price per unit appear more affordable," it said.

OSK maintained a "neutral" call on the property sector, on the fact that property counters tend to underperform or market perform when sentiments weaken. -- Bernama


Saturday, December 24, 2011

Gold Coast - High End Beachfront Condo

*Built-up area: 1,600sf
*Located near Queensbay Mall & Bayan Lepas Industrial Area
*Easy access via Tun Dr Lim Chong Eu Expressway makes it one of the most sought after condo in this neighbourhood
*This unit comes with imported fitting & it is nicely renovated
*2 covered car parks provided
*Full condo facilities
*Full pool & sea view
*What a good place to calls home!
*View to appreciate
*Priced to rent

Click here to contact us, Penang I Property for more information or viewing

Harmony Residences - Big House, Small Budget


* Located in Tanjung Bunga, Harmony Residence provides you with a prestigious, safe and strategic address.
* Mere minutes drive from the breezy beaches of Batu Feringghi and the cosmopolitan shopping areas of Gurney Drive and Georgetown;
it provides easy access to your every whim, and this is what makes it the prime residential neighbourhood.


* The entire building is modern, IT-ready equipped with broadband and fibre optic cabling while in the living spaces, intuitive attention is emphasized on every last detail to provide a flawless, quality finish.



* Be at home in Harmony Residence, the pinnacle of contemporary luxury living.
* Built-up: 5,000 square feet
* High floor with spectacular seaview
* Private Swimming pool
* If you are looking for a place calls home, this is it.
* View to appreciate

Click here to contact us, Penang I Property for more information or viewing

Springtide Residences - Home Sweet Home

* Located at Tanjung Bungah, a famous tourist belt in Penang
* Beachfront with fantastic seaview
* Built-up: 4100 & 5100 square feet
* Quality furnishing that fits the modern & luxury living
* Winner of the FIABCI Malaysia Property Awards 2010 for High Rise Residential Development
* Full Condo facilities
* Priced to sell
* View to appreciate




Friday, December 23, 2011

Property market to see a gradual slowdown next year


KUALA LUMPUR: The Malaysian property market is likely to see a gradual slowdown next year, taking into consideration the uncertainty in the global economic situation.
Fiabci Malaysia president Yeow Thit Sang said the high end residential units were already seeing a slowdown both in pricing and take-up rate.
“There are fewer expatriates from multinational companies coming here and rentals with a yield of between 6% and 8% are no longer achievable. Investors in these units will have to wait longer to realise their investment. The slowdown in global economy is definitely affecting the high-end property market,” he told Bernama recently.
He also saw a fallout for office space next year, saying the category was already overbuilt and the overhang felt in the market with rental falling and a slow take-up rate.
Meanwhile, Zerin Properties chief executive officer Previndran Singhesaid the slowdown in the property market would only last until the first quarter next year and the industry would be stable afterwards.
“Prices will remain stable, with asking prices, not values, becoming more reasonable as owners check their values to real pricing. At present, sentiment is down due to the eurozone financial crisis and the US double dip fears, which has been faring for a long time, but I think we are more Asia focused,” he said. - Bernama

Consultants: Right timing for PNB's RM1.74bil London property buy


PETALING JAYA: Permodalan Nasional Bhd's (PNB) reported 350mil (RM1.74bil) purchase of Milton & Shire House building in London is a good move owing to the weak pound sterling and the European economic woes, said property consultants.
The Times reported recently that PNB had bought the 15-floor complex from US-based fund manager Beacon Capital Partners.
The complex is said to have 460,000 sq ft of office space, and houses global law firm Linklaters which is paying RM100mil in rental annually on a lease that expires in 2026.
CB Richard Ellis executive chairman Christopher Boyd said that it was a unique time to buy real estate in London, as traditional major funds from the United States and Europe were not in the market due to the global economic slowdown.
“So you have less competition for buildings like this. The downside risk is minimal as PNB bought the building with a long lease,” he said.
Property consultancy DTZ Nawawi Tie Leung executive director Brian Koh pointed out that London was a global financial and commercial centre, and had some of the most expensive real estate in the world.
“In good times, it is very difficult to penetrate the London market due to high competition for prime properties, which accounted for its low historical yield,” he said.
Koh said the weak pound and the liquidity crunch in Europe, due to the eurozone debt crisis, had made it easier for players from the Middle East, South Korea and Malaysia, among others, to enter the London real estate market at reasonable prices.
The Times said it was the “largest single asset transaction in central London this year”.
It also said PNB was believed to have allocated 1bil (RM4.98bil) for London investments.
The daily quoted PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman as saying the transaction was “part of a strategic plan in acquiring premium assets in major cities globally after the acquisition of our maiden overseas property, Santos Place in Brisbane last year”.
PNB reportedly bought the upmarket office block in Brisbane for more than A$290mil (RM931mil).
The 37-storey building has 373,508 sq ft of lettable space with about two-thirds of that leased to Australian oil and gas giant, Santos.
A recent StarBiz report quoted sources as saying PNB was looking to invest in properties primarily in London, Sydney, Melbourne and Perth.
PNB's management could not be reached for comments at press time. - The Star

Thursday, December 22, 2011

Corporate Office - Good Condition with reasonable rental

* Located in Georgetown
* approximately 5,200 sq feet per floor
* with basement carpark for 22 cars
* complete with air conditioner, strong room, server room, generator and lift
* availabe from 1st February 2012







Opportunity Ought Not To Be Missed

* Bungalow in Tanjung Bungah
* Land Area : More than 16,000 square feet
* Quiet & Peaceful Neighbourhood
* Surrounded wtih Big & Modern Bungalows
* Near all amenities
* Seaview
* Priced to sell at RM4.2 mil

Click here to contact us, Penang I Property for more information or viewing

蓝图出炉前冻结高楼高密度计划 陈福星:恐影响槟发展


槟城21日讯)槟州房地产商公会主席拿督陈福星认为,槟州非政府组织要求州政府在地方发展蓝图出炉前冻结高楼高密度发展计划,有关建议对发展商、投资家制造了恐慌,同时也可能影响槟州的房地产供应及州内的发展。
由多个非政府组织组成于上周日在爱心大厦举行的“槟城论坛4”(Penang Forum 4)研讨会即通过多项议决案声明,其中一项即要求槟州政府在地方发展蓝图(Local Plan)出炉前,冻结槟州所有高楼高密度发展计划。
槟州房地产商公会主席拿督陈福星即在代表公会出席于依恩奥酒店举行,与IProperty.com网络公司签署谅解备忘录仪式后,如是指出,他认为,上述议决案只是一些非政府组织提出,并不能代表全民,反之他认为房地产领域涵盖性高,涉及多个上下游工业,既然非政府组织可通过议案作出上述要求,该公会也可依样画葫芦,作出不同的要求。
不过针对为何地方发展蓝图为何迟迟不出炉,陈福星提出其个人见解,他相信由于槟州政府的多项基设工程项目尙在研究且不明朗中,比如海底隧道计划尙有待中国专家的研究,以及槟岛外环公路计划停滞不前,这些计划都会造成已完成的地方发展蓝图出现对冲,对蓝图的规划造成影响。
所以他认为,除非有关基建项目纳入蓝图中,否则他不认为蓝图可在现阶段出炉。
在此之前,针对地方发展蓝图已在槟岛市政局通过,唯却未能进一步公开展示,槟州首长林冠英指出,这是因为乔治市特区蓝图(SAP) 尙在拟定中,为免特区蓝图与地方发展蓝图出现矛盾,所以才未能出炉。
槟房地产交易仍活跃
槟州房地产交易陷低迷,交易量减7成?
陈福星即针对市面上传言槟州房地产出现低迷情况,并出现高达7成的交易下跌一事,反驳说不知有关数据及传言来自何方,不过他说,目前除了面对欧洲经济不明朗出现的观望现象,槟州房地产交易还是相对的活跃,发展商的盈利也在持续的增加中。
反之他表示,目前公会面对的投诉却是槟州房地产屋价高企,反之他却没有看到交易出现下跌的情况。而他认为,相对其他投资,房地产却是保障的投资,成为传承下一代的遗产物(Inheritance)。
杜进良:屋价攀升是必要趋势
与此同时,出席记者会怡保工程置地公司(IJM)北马区总经理杜进良也指出,槟州的产业面对多次的金融风暴屹立不倒,所以他认为任何时候都是置产的黄金时期。
他指出,槟州房屋价攀升是必要趋势,一是建材价格持续上涨,再来是地价及政府捐献金的提高以及槟城打造成为国际都市造成外资进入的因素等造成。
槟最大型房地产展明年3月举行
槟州最大型的房地产展将在明年3月举行。槟州房地产商公会(REDHA)即与马来西亚知名的网上产业仲介公司IProperty.com公司合作,以便在明年3月于槟城举行上述产业展。
陈福星在周三与IProperty.com公司区经理何雄赞在见证下签署合作谅解备忘录(MOU)。在计划下,在首都吉隆坡常年承办多场类似产业展的IProperty公司将负起规划举办展出,而该产业展的目标是希望可完成高达10亿令吉的产业交易。
何雄赞说,这将是展出槟城各类房屋发展的一个平台,而他相信随着槟威第二通道接近完工,以及槟州拟定中的长达6点5公里海底隧道计划,相信将会催化产业发展。出席仪式者包括拿督庄友明等。-

Monday, December 19, 2011

N Park - Further Mark Down!

* N Park Condo
* Located at Batu Uban, near USM
* Good for investment as it is very popular among USM's postgraduate student from oversea
* Revonated & furnished
* Block D, the most favourable block as it is near guard house
* High floor, gives you the best view
* Penang Bridge and sea view
* Priced to sell quickly
* Presently rented at RM1,050 per month
* Going, going, gone!

Click here to contact us, Penang I Property for more information or viewing

Sunday, December 18, 2011

Proprimas plans to build 1,000 houses


KOTA BARU: Proprimas Holdings Sdn Bhd (Proprimas), which manages the “Program Perumahan Ihsan Malaysia” (Malaysia Compassionate Housing Programme) proposes to build 1,000 units of houses in the country next year to cater to the population in the low-income bracket.
Its chief executive officer Datuk Dr Baha Nordin said the programme, would use the prefabricated concept allowing government employees and pensioners, particularly ex- ser­vicemen to own homes.
More than 1,000 potential house-owners were at the briefing, which was also attended by Construction Industry Development Board contractors development manager Saini Saidi and Malaysian Ex-Servicemen’s Association president Datuk Muhammad Abdul Ghani.
Dr Baha said Proprimas had identified 120 contractors and that the construction would take between one month and two months, depending on the financial application process. — Bernama

Saturday, December 17, 2011

Projects of two developers hit a snag


Two prominent developers are put in a tight spot after the owners of the land on which their development is to be carried out, abruptly end the agreements to sell the land.
Mah Sing Group Bhd and SP Setia Bhd see their potential projects in Pekeliling and Beranang respectively, disrupted but they are still keen to pursue them.
Earlier this week, the two companies separately announced that they might not be successful in acquiring the targeted parcels of land.
Analysts say the reason for the cancellation of the agreements could be because of dispute over the land price, which the owners claim is below the current market price.
According to an industry analyst, it would be a disappointment for Mah Sing to lose the project, but it would not be a major blow to the company as it has many other projects in the pipeline.
“Although Mah Sing would only develop four acres of the M Sentral project, it is also eyeing to be a partner for the rest of the Pekeliling concession land which spans 58 acres,” he says.
He says Mah Sing will fork out RM106.6mil for the four acres, which translates into RM600 per sq ft, while the average market value of land in Kuala Lumpur is between RM1,500 and RM2,000 per sq ft.
“I believe Mah Sing will re-negotiate with the landowners but it's too early to tell of the outcome,” he says.
On Tuesday, Mah Sing brushed aside its partners' claims that the joint venture agreement (JVA) for the proposed development on the four acres along Jalan Tun Razak has lapsed.
Mah Sing says Asie Sdn Bhd and Usaha Nusantara Sdn Bhd, through their solicitors, have taken the position that the JVA has lapsed and is of no effect from Dec 2.
Mah Sing, however, maintains that the JVA has not lapsed.According to an RHB Research report in August, Mah Sing has announced a 60:40 joint venture with Asie to develop the four acres of leasehold land along Jalan Tun Razak- Jalan Pahang into M Sentral - a mixed development with GDV of RM900mil.
The report says the site is formerly called the Tunku Abdul Rahman flats or commonly known as the Pekeliling flats, and that the land is ready for immediate development, given that demolition works and partial earthworks have been completed.
RHB Research says Mah Sing will pay RM106.6mil for the 4.08 acres, to be settled via 60% cash and a 40% stake of the JV company to Asie.
“Mah Sing may also be the potential JV partner for the rest of the Pekeliling concession land, which spans 58 acres which would be renamed the Riverside Garden City Mega Project with a potential GDV of RM9bil,” says RHB Research.
Meanwhile, Hong Leong Investment Bank says the financial impact of the Pekeliling project is uncertain, given that Mah Sing is busy with a number of projects including its flagship developments in Icon City and M City, and M Residence @ Rawang.
“Even if the JV is to be called off, we believe impact would be minimal, given Mah Sing's diligent land banking activities.
“Moreover, Mah Sing has enjoyed a record-setting year in sales, having hit RM2bil in October,” says Hong Leong Investment.
For SP Setia, another analyst says that it could be due to a disagreement in the quoted land price.
The vendor Ban Guan Hin Realty's 1,010.5 acre land in Beranang is purchased at RM330mil or RM7.50 per sq ft and SP Setia has bought a second parcel land in Beranang from Spektrum Megah at RM13 per sq ft.
“I believe SP Setia is ready to negotiate with Ban Guan Hin,” he says.
On Tuesday, SP Setia Bhd announced that its request for an extension to fulfill some conditions for its proposed acquisition of 1,010.5 acres in Ulu Langat, Selangor for RM330.1mil was not agreeable by Ban Guan Hin.
In filing with Bursa Malaysia, SP Setia said the conditions for the land buy included an approval from the Estate Land Board for the sale and transfer of the land.
It is currently seeking legal advice on its position under the sale and purchase agreement and will seek an appropriate relief from the court, if necessary.
SP Setia has planned a mixed development project and is committed to build starter homes priced from RM300,000.
The development of the land, which will be named Setia Emas, is estimated to have a GDV of RM3.5bil.
A ramp has been planned to connect to the Lekas highway.
“While we will not know the outcome of the tussle', we highlight that in the event that SP Setia is unable to win the case, our RNAV/share estimate will be eroded by 9.1 sen from the current RM4.15, after excluding the contribution of Setia Emas.
“Thus far, SP Setia has only paid 10% deposit, and it is refundable since the fulfilment period has lapsed,” says RHB Research. - The Star