Friday, November 30, 2012

UDA sees completion of Penang apartment project in 2014


KUALA LUMPUR: UDA Holdings Bhd expects the first phase of its RM165mil residential project as part of the redevelopment of Tanjong Tokong in Penang to be completed by the end of 2014.
“The first phase will see the development of 550 apartment units to be spread out in eight to 10-storey blocks worth RM87mil while the second phase is expected to start construction after the completion of the first phase. It will consist of 650 apartment units build for the 1,200 original settlers of the area.
“The apartment units, costing an average RM120,000 each, will be given free to the area’s original settlers, while the remaining units will be sold at a discount to residents who have been renting houses for over 10 years in the area.
“As of now, we are assessing about 20 over contractors to undertake the project and we plan to announce the decision in two to three weeks time,” UDA chairman Datuk Nur Jazlan Mohamed told reports at the press conference yesterday on the upcoming groundbreaking ceremony of the project to be launched by the Prime Minister Datuk Seri Najib Tun Razak on Dec 8.
Nur Jazlan explained that this project would be the final chapter of redevelopment and resettlement of Tanjong Tokong that put an end to an entanglement that started when UDA was given the reponsibility to redevelop the area about four decades ago mandated by the former prime minister the late Tun Razak Hussein in 1972. - The Star

Youth chief shoots down RM400,000 per unit plans


GEORGE TOWN: High-rise units at the controversial Taman Manggis plot will cost up to RM400,000 each under a proposal by the Barisan Nasional-backed company which has paid a 1% earnest money for the 0.4ha land.
The figure is based on the maximum selling price of RM400psf decided by Taman Manggis Fasa 2 Development Sdn Bhd for the 112 units proposed of which 66 will be 1,000sq ft in size and 56 at 860sq ft.
The proposal was announced by company director Khoo Boo Soon who said the building would be not more than 22 stories high and will also have 250 parking lots, shops and a recreational garden.
The proposal has however come under fire from Penang Barisan Youth chief Oh Tong Keong who said the land was intended for People’s Housing Programme flats.
“I disagree with the proposal. Nevertheless, I will discuss the matter with Khoo and the final proposal will be announced next week,” he told a press conference at the Penang Barisan Nasional elections operations centre in Datuk Keramat Road here yesterday.
Oh said he was unaware of the proposal which was announced by Khoo in a separate press conference at Penang Times Square about an hour earlier.
Khoo said the company had started working on the proposal towards providing “affordable housing” to Penangites since Oct 3 when it paid RM224,073 in deposit to the state government for the plot.
“We will only release limited information as the company had yet to secure the land,” said Khoo who is a former Penang Municipal Council Town Planning Department acting director.
At his press conference, Oh said the “affordable housing proposal” was Khoo’s idea.
He stressed that the issue of purchasing and obtaining the 0.4ha plot was more important than other aspects.
Oh also showed a copy of what he claimed is a letter dated Nov 9 addressed to Chief Minister Lim Guan Eng by Kuala Lumpur International Dental Centre (KLIDC) chief executive officer Dr Low Soo Huat.
In the letter, it was stated that KLIDC is agreeable to the sale of the land by the state government to Barisan and hopes to be compensated for all interest, costs and expenses incurred by KLIDC for the acquisition of the land.
Oh said Barisan would only pay the remaining 99% of the price for the plot provided that the state government can settle the matter with KLIDC.
It has been reported that Taman Maggis Fasa 2, a special-purpose vehicle owned by Barisan supporters, is given until Dec 4 to pay up the remaining RM22,183,227.
Oh had, however, insisted that state government must provide the sale and purchase agreement for the land first.
It was reported on Sunday that the Health Ministry had issued an approval certificate on Nov 7 to KLIDC to build a specialist hospital on the land. - The Star

Thursday, November 29, 2012

Government plans to set realistic low-cost home prices


SEPANG: A study is being carried out to determine a “more realistic” price of owning a house under the Government's low-cost housing scheme in view of the increasing cost of construction materials.
Housing and Local Government Minister Datuk Seri Chor Chee Heungsaid a RM70,000 price tag for a low-cost unit would be more realistic compared to the current range of RM35,000 to RM45,000.
“The cost of construction materials and labour and other things has gone up a lot, so RM35,000 to RM45,000 is no longer viable.
“We are currently studying when is the best time (to increase the prices). We are thinking about it; and how to go about it,” he told a press conference before launching a seminar on public housing organised by the National Professors Council here.
Chor explained that under the people's housing programme managed by the Government, Malay-sians whose monthly household income does not exceed RM2,500 can purchase low-cost houses at RM35,000.
He said the Federal Government had informed its state counterparts of the proposal to allow an increase in low-cost house prices but he assured that that is nowhere near implementation for now. - The Star

Tuesday, November 27, 2012

‘Malaysia My Second Home’ targets wealthy mainland Chinese


SHANGHAI, Nov 27 – Tourism Minister Datuk Seri Dr Ng Yen Yen recently hosted some 1,000 distinguished guests from various parts of China during a campaign in Shanghai to introduce well-heeled Chinese to the Malaysia My Second Home (MM2H) programme.
Ng noted that those being sought for the MM2H programme were no ordinary people. Only those who qualify, those who really have financial resources, can make Malaysia their second home.
In turn, Malaysia offers a multicultural and dynamic environment, natural resources, a stable political climate and a robust economy for the Chinese to grow their wealth.
“MM2H is meant to attract more investors to Malaysia. They not only come to live in Malaysia, but also to invest,” Ng said, adding that about 1,000 mainland Chinese were expected to participate in MM2H in 2013.
Under the programme, foreigners who fulfill the requirements are allowed to reside in Malaysia as long as they choose and are provided multiple-entry visas.
They are also offered access to education, allowed to invest in properties, and their income from offshore activities are exempted from taxes.
The programme was introduced in 2002 and by August 2011 about 20,000 people from 120 countries have made Malaysia their second home, with 3,000 of them being Chinese nationals.
Admittedly luring the Chinese is no easy task. Hence, the ministry is now going on overdrive to woo them, with the help of five Malaysian tour operators who have signed an agreement with the Bank Of China.
The tour operators are Complete Point (MM2H) Sdn Bhd, CK-Ten (MM2H) Sdn Bhd, Synergy Home (MM2H) Sdn Bhd, Sweet Home Garden (MM2H) Sdn Bhd dan CLS (MM2H) Sdn Bhd.
These five tour operators will promote the second home programme to those bank customers who qualify, while the bank will open six branches in Malaysia to serve as a one-stop service centre to cater to its customers taking part in the programme.
“Most importantly, the bank has 300,000 high net-worth customers, with no less than US$2 million (RM6.09 million) in their accounts.
“These people want to procure assets, open businesses and invest. So they are not only coming to stay in Malaysia, but also to invest in Malaysia,” explained Ng.
Nevertheless, from January to August 2012, 475 Chinese nationals joined the programme, an increase of 25.7 per cent compared with the same period in 2011.
STAY LONGER IN MALAYSIA
“Through MM2H, they will stay longer in the country and contribute to our country’s economy,” she pointed out.
Apart from participating in MM2H, the ministry also encourages tour agents to promote Malaysia’s eco-tourism, as this is a sector that is increasingly attractive to younger Chinese.
Among the locations preferred by these Chinese are Sabah and Sarawak, known for their rich and unique flora and fauna. This is also in line with Visit Malaysia Year 2013. – Bernama

乔治市入遗带旺槟旅游业 游客剧增推动酒店市场


槟城27日讯)乔治市入遗后槟游客人数持续上扬,除了精品民宿(boutique hotel)接连冒起与酒店分一杯羹,家庭式旅游度假公寓也加入市场,为举家出动的游客提供另一栖身选择。
在槟城的家庭式度假公寓由来已久,其中以峇都丁宜斯里沙洋(Sri Sayang)历史最悠久,再加上槟城医疗旅游的蓬勃发展,不少生意人也将一些公寓改为度假式公寓出租,尽管面对合法营业的争议,不过也从中可见市场潜能。
在新关仔角与丹绒武雅之间的海峡岸广场(Straits Quay),新近已成为槟城人餐饮的另一选择,而在滨海计划下打造的楼高6层,合共108间度假式公寓,已成为外国游客来槟举家同乐的选择之一。
在108的单位中,除了业主自住外,有3分1即约30间单位是业主投资及为度假公寓,这些业主都将产业交托海峡岸联合管理委会员(JMC)代为出租。据了解,海峡岸广场的度假公寓,已成新加坡游客来槟时栖身的首选,间接推动槟城旅游业。- 光华

Monday, November 26, 2012

Penang Real Estate | Penang Property | Penang Properties: Desa Bistari - Move in Condition (A2)

Penang Real Estate | Penang Property | Penang Properties: Desa Bistari - Move in Condition (A2)

14 projects approved under density guideline


THE Penang Municipal Council (MPPP) has approved 14 projects under the 87 units per 0.404ha guideline since it came into effect in June, 2010.
State Local Government and Traffic Management Committee chairman Chow Kon Yeow said stringent measures had however been imposed on developers to build the increased density units.
“The guideline is not applicable in established housing areas, World Heritage Site, the area from Tanjung Bungah Hotel to Mar Vista, along Gurney Drive, the bordering areas of Air Putih constituency and Air Itam constituency and re-zoning area.
“The floor area for the guideline is also capped at about 1,400sq ft per unit and MPPP has also imposed a price control for 25% of the units,” he said in a press conference at the City Hall in Esplanade yesterday. `
Of the 25%, Chow said developers would have to sell 5% of the units at RM200,000 per unit, 15% at RM300,000 per unit and 5% at RM400,000 per unit.
He said if a developer wished to build under the new guideline, the company would have to build an additional 30% low-cost or low medium-cost units in the same district.
“Developers will also have to submit a traffic impact assessment (TIA) report for the respective projects,” he said.
Chow added that currently 109.26ha of land on Penang island was available for the building of units under the new guideline.
He said this worked out to 8,100 units at 30 units per 0.404ha and under the new guideline, 23,490 units could be built.
Council president Datuk Patahiyah Ismail, who was also present, said there would be no capped floor plan size if developers chose to build 30 units per 0.404ha.
“With the 87 units per 0.404ha guideline, we can in a way curb super condos and the issue of expensive prices,” she said.
In recent news reports, many Penangites questioned the need for the guideline as they were concerned that higher density may lead to social and environmental problems for the existing residents.
The 14 projects which have been approved are in Jalan C.Y. Choy, Jalan Macalister, Jalan Seang Teik, Lorong Perak, Sungai Ara, Bukit Gambier (two projects), Lembah Permai, Jalan Jelutong (two projects), Jalan Paya Terubong, Jalan Perak, Jalan Tanjung Tokong and Jalan Pantai Jerejak. - The Star

Saturday, November 24, 2012

Banks should do their part to help aggrieved buyers


IT was reported in the news media last month that some house-buyers were conned into buying housing projects that do not exist. If it does not cause revulsion and anger, it must at least be shocking to know that individuals and groups were allowed to sell and build houses without the basic requirement of the law, that is, a developer licence from the Housing and Local Government Ministry.
A slew of professionals from bankers to architects and from lawyers to engineers and the related local councils allowed dozens of unlicensed developers to sell and build houses to the unwary public. At last count, there were 195 abandoned projects undertaken by such “developers” some of whom had built on land which had not been zoned for housing but was still “agriculture” status.
These startling facts were revealed at a high-powered meeting on abandoned housing projects chaired by the then Chief Secretary to the Government, Tan Sri Mohd Sidek Hassan in April this year.
What is more disgusting is that at every step of the way, such a serious breach of the law could have been prevented. Even before the first blade of grass was cut to make way for housing, the flaws were staring in the face of the approving or financing authorities.
Because of the shortcomings of most of them, thousands of innocent and unwary buyers have been left in the lurch. They not only parted with their hard-earned money as downpayment but are also compelled to service their loans for what would have been a roof over their heads.
Lawyers for the deceitful developers prepared those contracts that were not the mandatory sale and purchase agreements regulated by the housing legislation.
Today, they are left in the quandary. Some continue to pay for their rented premises and continue to make monthly payments for their loans with no sight of their dream homes. HBA has been inundated with calls from victims of those ill-fated projects and crying for the Government,Bank Negara and professional boards intervention.
This whole episode yet again reflects the manner in which the laws of the land are not respected and upheld.
Banks and financial institutions (FIs) are so eager for business that they are indifferent to legalities. Their sales and marketing team has a pre-imposed target to meet until loans are disbursed recklessly. The banks implicated should have, as a matter of course, troubled themselves to find out if their transactions are tainted or not.
Saying that only some banks and FIs are involved does not exculpate other member banks and FIs; it is in fact an admission of culpability. Affected banks and FIs should let the public and the affected buyers of unlicensed housing projects know what they propose to do in the dilemma.
Renouncing your security interests in such cases and withdrawing all impending court cases against them would be a good start.
The Association of Bank Malaysia (ABM) should get its members to cooperate with the purchasers to release their security interest on purchaser's property where the purchaser has paid in full. Truth is they don't care that the purchaser has paid if the developer has not with their arguments of “no legal obligations”.
It is surprising that the alarm bells were not triggered when those developers did not produce evidence of the vital Housing Development Project Account (HDA) as required under the law?
It is therefore astonishing to note that those member banks did not do any additional security checks other than to rely on the sales and purchase agreements. Even for projects that are not within the Housing Development Act, the developer must obtain the requisite approvals and licences before being allowed to commence work.
Thus, the banks must surely have their strict criteria to abide by unless the new breed of bankers are not in the know. The issue of breach of fiduciary duty of care (to customer) will surely arise.
Perhaps, the banks should observe a moratorium on interest and instalment owed by nave and innocent victims till the project is revived.
Banks should take a proactive role to make their utmost efforts to revive such projects. Attempts should be made to delist those purchasers/borrowers who are now blacklisted by the banks and may never qualify for another loan! Not even to buy a second hand motor car.
Perhaps, the affected member banks should exercise their corporate social responsibilities (CSR) in this instance far deserving than others. These affected buyers must be assisted in tangible deeds and not merely words.
Chang Kim Loong is the honorary secretary-general of The National House Buyers Association, a non-profit, non-governmental, non-political organisation manned by volunteers. For more information, clickwww.hba.org.my or e-mail info@hba.org.my - The Star

Stratified developments becoming a way of life


EARLIER this year, a new set of property managers replaced the previous one in the condominium that Siti lives. Not having a current account, she paid her quarterly management fees in cash. She was told that the receipt would be put in her postbox. It never came and she soon discovered that the property management company had absconded with the money.
As stratified developments which include condominiums, service apartments and gated and guarded projects become a way of life, good maintenance and management have become an issue.
Good management and maintenance will improve the value of the asset. This applies to all segments of the property market, be it residential, commercial or industrial.
Hence, the third reading of the Strata Management Bill 2012 on Monday is crucial, says Assoc-Prof Ting Kien Hwa, head of Centre for Real Estate Research at Universiti Teknologi Mara.
“Currently, property management is part of a service provided by valuers, who are regulated by the Board of Valuers, Appraisers and Estate Agents.
The work of valuers can be broadly divided into three areas property management, valuation work and real estate agency work.
This means that property management is a regulated profession and delinquents risk having their licence suspended.
For the last five to six years, managing stratified properties has become an issue, he says. As more of us live in gated and guarded developments, and high rise condominium and serviced apartments, property management is evolving to become a lucrative industry.
Ting says the Board of Valuers is in the process of creating a third register to accommodate property managers. Valuers and real estate agents are governed by two registers and the Board of Valuers are working on creating a third one for property managers.
Says Ting: “This is a similar situation as in the early 1980s when there were many illegal real estate agents. They were given a one-year period to register with the board.”
Ting says the duty and responsibilities of property managers go beyond just collecting money and managing a property. The word “managing” covers a whole gamut of expertise and responsibilities. These include insurance valuation, the appropriate rate of service charges to levy on owners, managing service providers like security guards and cleaners, gardeners and managing tenants and rental rates among other duties.
Depending on whether it is a residential or commercial property, some issues may overlap.
To claim that valuers want to monopolise the property management industry is incorrect, Ting says.
“Some parties say they want to liberalise' the profession. Just as engineers and architects are regulated by the Institute of Engineers and Pertubuhan Akitek Malaysia respectively, so property managers are regulated by the Board of Valuers because property management is part of the work of valuers. This is the situation in the United States, Britain and Australia. Shall we then liberalise' the achitecture and engineering profession by allowing more people who are untrained to practise as architects and engineers because architects and engineers are monopolising' the industry?” Ting asks.
Ting says this argument to liberalise the profession and cut out the monopoly does not hold water at all.
He says there are currently 8,000 trained property managers in the country and every year, 450 more graduates enter the job market.
The local public universities provided courses in property management in the late 1960s because they knew there would be a need for this.
Malaysian Institute of Professional Property Managers president Ishak Ismail says: “The Government was visionary enough to foresee a time when stratified housing will become part of the Malaysian property landscape. The first condominium was Desa Kuda Lari in the KLCC area.
“Today about four million people live in stratified projects. About 80% of all the stratified projects are managed by joint management bodies and management committees. About 20% are outsourced and of this about 58% are managed by illegal property managers.”
Ishak said over and above the various issues that fall under property management, two sets of skills are needed the hard skills in managing the property and the soft skills in people management.
He says there is a need to put in the proper regulations to regulate property managers in order to improve the value of our property assets. There must be no conflict of interest because it involves public money, be it house owners or tenants of commercial properties, he says. - The Star

Friday, November 23, 2012

Developer takes Selangor Government to court over land acquisition


KUALA LUMPUR: A developer is challenging the acquisition of its land in Ijok by the Kuala Selangor District and Land office.
Gaya Perkasa Sdn Bhd is applying to the High Court (Appellate and Special Powers) to quash the order made by the land administrator on Oct 6 last year.
It is asking for a stay over the order given to the land administrator.
It has named the Selangor Government, the land administrator, its district office, Selangor Housing and Property Board and the Selangor Mentri Besar as respondents in the application.
Judge Justice Abang Iskandar Abang Hashim set Dec 17 before a deputy registrar for parties to sort out documents for an inter-parte (between the parties) stay application hearing.
The judge fixed the date after meeting the parties in chambers yesterday.
Selangor state legal advisor Ahmad Fuad Othman, who acted for the state government and the land administrator, said that Gaya Perkasa was asking for the return of the land and compensation.
Ahmad Fuad said Gaya Perkasa bought the land after it was auctioned off by a bank.
“This developer (Gaya Perkasa) bought the land thinking that there was no liability attached to it. The land was acquired by the land office last year. It was later given to a private company by the Selangor Government.
“The government then took over the land from the private company to revive an abandoned housing project there,” he said.
Gaya Perkasa lawyers Chan Siew Cheong and Lim Fang Kee confirmed that the ex-parte (by one party) stay over the order was granted by the court on Jan 10. - The Star

郑两明:向每依格建87单位说不 PGCC效应恐蔓延全槟


(槟城22日讯)前槟岛市议员郑两明说,槟州政府在没有咨询民意下通过“每依格地段建87间单位”政策,将导致“PGCC效应”(槟城环球城中城)在槟城扩散,届时槟城随处可见40层或更高的建筑林立。行动党曾抨击PGCC计划
槟城环球城中城计划在308大选前,是当时还是反对党的行动党猛力批评的计划,因该计划要兴建40栋40层高的房屋计划、2间五星级酒店和7000个平地房屋单位,也引起人民激烈反弹。
郑两明说,308大选民联执政槟州后,却在2010年静悄悄地通过一项政策,批准在每依格土地上兴建87单位,此政策若相比起槟城环球城中城计划,只是“小巫见大巫”,因该计划是以每依格兴建37单位为标准,87对37,足足超过2.4倍。
“若对比每依格建37间单位和民联州政府批准的每依格可建87间单位,那么原本高40层的建筑,将增加至96层,原本40栋的建筑,也将增加至96栋。” - 光华

Only World集团耗资4000万 翻新数楼层振兴光大


(槟城22日讯)槟州首席部长林冠英透露,在振兴光大的建议下,Only World集团将耗资4000万令吉提升,重建,装修及翻新光大5楼、59楼、60楼、64楼及65楼,让光大再发扬光大!
他说,有关的工程也包括装置2台在光大摩天楼建筑物外部,连接5楼至顶端65楼的高速观景电梯,以及翻新现有光大建筑内的4台电梯及等候电梯处,在5楼屋顶建造一个拥有餐厅设施的宴会厅,在从光大走道至5楼露天空间装置电动扶梯及进行其它机械,电气,土木与结构工程。
他继透露,单单2台观景电梯已耗资600万令吉,并预料在15个月内将完成装置。
租赁为期45年
他指出,有关光大楼层租赁予Only World集团是为期45年,而且该集团也获另15年的更新合约选择权。他强调,在上述建议中,光大59及60楼将设立具有国际水准的餐厅,并且这将由64及35楼的“终极”餐饮概念配合,以及即将装置的“天梯”,也将成为光大的最大吸引力。- 光华

Sunday, November 11, 2012

Is it a good time to prepare a war chest?


The next six months ...
In such volatile times, what should people invest in? What will the next six months, or one year, hold?
The last couple of weeks, two developers suggested it may be a good time, or a good idea, to prepare a war chest. That means, liquidate some assets and get ready some cash. There may be something worthwhile to pick up in the next six months, they said.
Soon after that conversation, a real estate professional help to put the pieces of puzzle together.
Consider the following:
Barack Obama has retained his presidency. That means status quo in the United States, recovery will be fragile.
Spain may need a bailout. Eurozone may plummet further.
In October, Hong Kong joined Singapore in efforts to cool soaring property prices by targeting non-residents. The Singapore and Hong Kong property markets are two of the most robust in Asia. Foreign funds like both these markets.
Let us come back to our local property market. Two real estate professionals say the secondary property market, which one buys from owners and not from developers, has been slow the last six months.
Some say it is good that the market is taking a breather. Others say it is a sign of the times.
The valuer says a weak secondary mortgage market is an indication that there are weaknesses in the overall property market. The new launches, however, remain attractive partly because of the various freebies and developer's interest-bearing schemes.
The primary market, where one buys from the developer, remains strong because under the interest-bearing schemes other than a 10% downpayment, they do not need to pay until the project is complete, she reasons. Under construction properties have higher risk than completed ones.
Hong Kong and Singapore have put in place measures to deter purchases by non-residents because the third round of quantitative easing (QE3) by the US has induced a flight to risky assets and he considers property as one of them.
That seems to go against the grain of what many think today. The last couple of years, one of the reasons for the rise in property prices was because real estate was considered as “safe” and a good hedge against inflation.
The safe assets, he says, are inflation indexed bonds, treasury bonds and government securities. The flight to the East to risky assets and to properties is a signal for all of us to take note. This was confirmed by an economist who says when the flight reverses, the situation will be severe.
Malaysia seems to be chugging along well. Will Malaysia be able to withstand the onslaught, notwithstanding “the good news”, “feel good” factors today?
Properties look attractive because of the economic conditions around the world and because of the threat of looming inflation on the horizon. Property being a good hedge is a perception, the property professional says.
This flight to Hong Kong and Singapore may happen in a bigger scale in the next six months to one year, he says. That is what both Singapore and Hong Kong governments are trying to stem out. This flight to the East may create, grow and burst bubbles. Some of that money have slipped into Malaysia and it is up to regulators to keep an eye on the situation.
The solution is to create investment avenues. This is not easy for governments to do and it takes time.
Why create that war chest then if there is so much risk and volatility floating around? The days of long-term investments are over. To be wise in today's volatile times, one may have to be a trader, or a sort of trader. Have a basket of goods, and hopefully one balances out the other.
The holiday season is around the corner. A new year is about to begin. The investing template, like the investment climate, has changed.
>Deputy editor Thean Lee Cheng wonders if our finanacial planning professionals are reading the signals. - The Star

Fix the leak and the rest will flow


AN article that I read recently reminded me of the importance of always identifying and solving the root cause of a problem in order to achieve the desired result. It was about a country which had faced water shortages for years despite the fact that the country gets ample amount of rain.
More and more water reservoirs were planned but the desired result was not achieved. Upon close scrutiny, the root cause of the water shortages was due to leakages from faulty pipe lines. In some areas, water lost through leakages was as high as 40%.
Imagine if the problem of water leakages could be addressed as a top priority instead of building more reservoirs, the water shortages that had plight the country would have been reduced very affordably and significantly.
The article reminded me of the issue of affordable homes in Malaysia. Based on recently published statistics from National Property Information Centre (NAPIC), the total residential homes in Malaysia as at the second quarter of 2012 was 4.58 million. Low-cost houses and flats account for 23% (1.05 million) or nearly one in four of the total residential units. About the same percentage also applies as well in Kuala Lumpur and Selangor.
The debate still goes on whether the number of low cost houses and flats is sufficient but there is no doubt that there is a huge demand in the market for such units. Many qualified applicants have commented that it is difficult to find a low cost housing unit to rent.
According to a recent report in The Star, thousands of government housing units in Kuala Lumpur were being sub-let to third parties by irresponsible tenants at five times above the control rental price. The same report also stated that the number of applicants for low-cost units in Kuala Lumpur had reached 26,000 and many of them had been on the waiting list for over a decade.
Questions are being raised. Are these low-cost units occupied by the right group of people? Why are the owners or tenants renting out their units? Does it mean that they own or rent other such units as well? Should we focus on repairing the allocation system before building more homes if there is so much leakage?
For a long time, I have heard that many quarters have been sceptical about the process involved in the allocation of low-cost units. Now that the Government is scaling up its effort to build more affordable homes, this is a good time to immediately carry out an exercise to review and ascertain whether or not the allocation and implementation system has any leakages. Building additional units will never be sufficient to meet the demand if these leakages continue to exist.
To ensure that the review is carried out without interruptions or biases, the review panel should consist of both the authorities and NGOs. The process of receiving and filtering the applications, the filtering criteria and the final determination of the allocation would be the specific areas to review meticulously to ensure controls are in place and no abuses creep in.
Based on the principle that low-cost housing units are meant to provide shelter to low income earners, it is essential to ensure that there is a transparent and comprehensive mechanism to determine qualified owners as well as to ensure that no one can own more than one low-cost house.
As part of the review, some commendable practices in other countries should be considered for adoption. For example, the Singapore HDB (Housing and Development Board) flat owners-to-be are not allowed to own any other properties in Singapore or in any other parts of the world. For HDB flat owners who wish to sublet their flats, they must meet the minimum occupation period (depending on purchase mode and flat type) and obtain HDB's approval before they can sublet their units.
In Hong Kong, to qualify for a Housing Board flat, one must not already own a house or flat, and it must only be for own use. In London, the right to buy a council home comes with several conditions. For example, the applicants have to hold a public sector tenancy for five years, and the property that they wish to purchase must be their only home and is for owner occupation.
To implement a more effective housing allocation system, we may want to consider applying similar measures to deter owners or tenants from the blatant abuse of public and low cost housing units for rental yields.
Low cost housing is a significant subset of affordable housing. If the review confirms that there are leakages within the allocation system that have allowed “abusers” to choke the market for low cost units, the government and relevant stakeholders ought to immediately work out a solution to fix these leakages.
Water and homes are the key basic necessities of life for everyone. Imagine yourself living in an environment where it is difficult to get these necessities and then to find out later that if proper diagnosis had been made, the problem would have been reduced tremendously. The key is: “Do it once, do it right”. The solution can be as easy as fixing the water leakages rather than building more reservoirs.
> FIABCI Asia-Pacific regional secretariat chairman Datuk Alan Tong has over 50 years of experience in property development. He is also the group chairman of Bukit Kiara Properties. For feedback, please emailfeedback@fiabci-asiapacific.com. - The Star

Escape Adventureplay opens its doors in Penang’s Teluk Bahang


GEORGE TOWN: Escape Adventure­play, the first phase of the Escape Theme Park in Teluk Bahang, has opened its doors.
The RM18mil Adventureplay, touted as the first of its kind in Penang, utilises existing jungle trees in its 2.8ha grounds for the many adventurous games and challenges.
There is an extraordinary array of leaps, climbs and zip lines emerging from these trees to create a place where fun reigns supreme, regardless of what the participant’s age is.
Natural sounds from the forest gives the park the extra edge, besides the fresh air and natural sunshine.
Sim Choo Kheng, founder and chief executive of Sim Leisure Group, which operates Adventureplay, said the park would promote eco-friendly values.
“Most people would expect a roller-coaster or mechanical water rides in a theme park but here, we want to promote outdoor activities for children and adults alike,” he said.
“We have redefined theme park’s concept. You challenge yourself actively, rather than just sitting on passive rides,” said Sim.
“It’s much more exciting and healthier, especially, for the children today who live a more sedentary lifestyle.”
Adventureplay, which took a year to complete, opened on Friday.
Among the major attractions is the Atan’s Leap, a freefall adventure with gentle and secure landing which is a must-try, especially for bungee-jumping enthusiasts.
The tall tower structure consists of three levels of elevated platforms from 13m to the highest 30m.
Visitors can also sit on a Tubby tube in the Tubby Race, a gravity ride through a twisting and turning journey.
Gekko Tower, which is a set of climbing towers on which participants can choose their path to reach the top of the obstacle, also promises a bucketful of fun.
There are also foodstalls serving local delights for the visitors.
Sim said he expected about 350,000 visitors to the park annually.
He said the entire Escape Theme Park, which comprised three main components – AdventurePlay, WaterPlay and a Treetop Hotel, would sprawl 17.8ha and was expected to be completed in 2017.
Adventureplay’s opening hours are from 9am to 6pm daily. Entry fee is RM45 for children aged four to 12 and RM60 for those aged between 13 and 60.
Malaysians get a 20% discount. Entry is free for children below four and MyKad holders aged above 60. - The Star

CM: Only 42 have applied for funds to upgrade flats


BUKIT MERTAJAM: Only 42 management representatives of low-cost and low medium-cost flats have so far applied for funds from the Housing Assistance Programme of Penang, Yes! (Happy!), Chief Minister Lim Guan Eng said.
He said the state government was disappointed with the figure as there were about 600 housing projects in the state that stood to benefit from the programme.
He said the state had, in September, allocated RM50mil under Happy! to supplement the remaining costs to upgrade buildings that were not covered by the Federal Government’s 1Malaysia Maintenance Fund (TP-1M) programme.
“So far, we have received 21 applications from the island and 21 from the mainland for funds under Happy!
“We hope more management corporations (MC), joint management bodies (JMB) and residents association (RA) will submit proposals to apply for funds from both the TP-1M as well as from Happy!” Lim said when opening a briefing on Happy! at the Seberang Prai Municipal Council (MPSP) headquarters here yesterday.
He said under the RM500mil TP-1M programme, the Federal Government would bear 90% of the repair costs on low-cost flats while the remaining 10% would be borne by the residents, JMB or MC.
The ratio is 70% and 30% respectively for low medium-cost flats.
Since not many JMB, MC and RA could afford to raise the balance 10% and 30% for the low-cost and low medium-cost flats respectively, the state introduced Happy! to pay for the balance amounts, Lim said.
MPSP president Maimunah Mohd Sharif said the basic upgrading works to be carried out under the TP-1M programme were painting, rewiring as well as repairing the water tank and reticulation system, lift, roofing, sanitary pipes, handrails and damage to common property.
“Eligible JMB, MC and RA can seek help from MPSP and Penang Municipal Council to support their TP-1M applications by obtaining a guarantee from the state to settle the balance amounts using funds approved under Happy!” she said.
Of the 21 applications that MPSP received, Maimunah said eight had already been submitted to the Implementation and Co-ordination Unit of the Prime Minister’s Department.
She said MPSP was in the midst of helping those who submitted the remaining 13 applications that were incomplete. - The Star

Friday, November 9, 2012

It is 1,000 units


In our article titled ‘Long queue for homes’ published on Nation page 12, it was reported that ‘He (state Town and Country Planning, Housing and Arts Committee chairman Wong Hon Wai) said the Federal Government would build 70 units of affordable houses in Mak Mandin in north Seberang Prai while PDC and developer SP Setia would build 11,000 units of similar houses in Jalan S.P. Chelliah.’
It has been pointed out that the actual number of units should be 1,000 and not 11,000. The error is regretted. - The Star

Great response to condo project


THE SP Setia Bhd has received bookings for the majority of its latest condominium project, Setia Pinnacle, a Green Building Index (GBI)-certified luxury high-rise residence in Sungai Ara, Penang.
Group general manager (north) Khoo Teck Chong said the scheme, comprising 434 condominiums in a single 38-storey block which was in its soft launch phase now, would be officially open for sale next month.
He attributed the overwhelming response to its attractive pricing at RM514,000 for a unit with a built-up area of 1,095sq ft.
“Those units with built-up areas of 1,515 sq ft are priced from RM700,000 onwards,” he added.
Most of the buyers were locals looking for their first homes rather than investors who already owned property, according to Khoo.
“Purchasers will only need to pay 1% of the purchase price to own a unit at Setia Pinnacle and the rest of the package includes a 9% rebate, zero-interest absorption by the developer and free legal fees and stamp duty on sales and purchase agreement and loan documents.
“This package will only apply to early birds who register,” said Khoo yesterday during the preview at its show gallery.
He said Setia Pinnacle was designed to maximise its locational assets while providing SP Setia’s signature ‘LiveLearnWorkPlay’ living experience.
The experience, he explained, begins the minute the resident enters the private driveway leading to Setia Pinnacle.
“This gently curving driveway, bordered by lush greenery that reflects the forested hill behind Setia Greens, insulates the Setia Greens residents from the additional traffic.
“More importantly, it provides residents of Setia Pinnacle with a sense of exclusivity as well as a calming transition from the outside world to a serene homecoming,” he said.
As one of the first GBI-certified buildings in Penang, Setia Pinnacle will set a benchmark for other green buildings starting from the initial groundbreaking phase, according to Khoo.
“SP Setia takes great pains to ensure that our construction activities are as sustainable as possible, for example, minimising earthworks, pollution and wastage,” he said.
As a GBI building, Setia Pinnacle is designed to cut down on heat absorption.
“For example, the building has insulated reinforced concrete roof, rooftop lawn as well as large overhangs like copings and balconies that act as sunshades to cut down heat absorption,” said Khoo.
“There are also treated glass windows, vertical green walls and planter boxes which not only add to the aesthetics of this building but also help reduce heat absorption.
“A rainwater harvesting system will be put in place for watering plants,” he added.
He said: “Low volatile-organic-compound paints will be used throughout the building.
“All rooms in every apartment will have direct natural ventilation.
“Every bathroom and kitchen will also have water efficiency fittings.”
Scheduled for completion in 2016, Setia Pinnacle is designed with facilities spread over two floors, called the Green Pavilion at level 8 and Sky Pavilion at level 38.
“The Green Pavilion floor comes with an infinity lap pool, children’s splash pool with water slides, and walkway cum jogging track,” said Khoo.
“At level 38, the highest floor, the Sky Pavilion is a semi-open air area with a beautiful landscaped lawn, offering the perfect vantage point from which to enjoy the amazing views or a natural setting for taichi and yoga sessions,” he said. - The Star

China tops MM2H programme


KUALA LUMPUR: The number of Chinese nationals taking part in the Malaysia My Second Home (MM2H) programme is expected to increase in the next few years and spur domestic economic activities.
There were 3,332 Chinese participants as of August, making it the highest number of all MM2H participants, said Tourism Minister Datuk Seri Dr Ng Yen Yen.
From January to August, 475 Chinese nationals joined the programme compared with 133 the same period last year, she said.
“We expect to see a substantial increase in the number of participants from China from next year onwards,” she said during the memorandum of understanding signing ceremony between the Ministry and the Bank of China (BOC), for the latter to promote MM2H to all its bank customers through its branches in China and other parts of the world.
Dr Ng pointed out that with 10,961 branches in and outside China (six in Malaysia), the bank has 300,000 high net worth (more than US$1mil) customers.
Since 2002 until August, the MM2H programme had successfully attracted 19,488 participants from 120 countries and after China, the other highest participants were Bangladesh (2,407), Japan (2,187), Britain (1,889) and Iran (1,211).
Dr Ng said Malaysia needed to maintain its economic vibrancy not just by drawing tourists in but also by getting them to stay longer.
The programme had also spurred the property market, as 1,659 pieces of property worth RM1.5bil were bought under MM2H from 2007 to 2012, she said.
For the programme, successful applicants are given a 10-year social visit pass with a multiple entry visa which is renewable for as long as they like. besides enjoying tax-free income from abroad.
Ambassador of China to Malaysia Chai Xi said he foresaw the number of Chinese nationals participating in MM2H to triple in five years.
He added that Malaysia was one of the nicest countries in the world to live in while Bank of China chief executive officer Zhen Jingbo said he would promote MM2H to attract Chinese entrepreneurs and individuals from greater China to invest here.
At another event, Dr Ng launched the book Enchanting Malaysia, which tourists could buy as souvenirs. - The Star

Tuesday, November 6, 2012

Plenitude targets RM300m GDV sales for FY13

KUALA LUMPUR (Nov 5): Property developer Plenitude Bhd is targeting to achieve RM300 million in gross development value (GDV) sales, despite delays in its property launches for the financial year ending June 30, 2013.

Speaking to reporters after the group's annual general meeting Monday morning, Plenitude executive chairman Elsie Chua said the group is planning to launch 638 units of residential properties next year with a total GDV of RM313 million.

"We are still cautiously optimistic moving forward, but we are already looking at launching two phases in Puchong, serviced apartments in Johor Bahru and one more in Sungai Petani," Chua said.

However, Chua noted that unexpected delays in obtaining regulatory approvals have pushed back Plenitude's property launches to early next year.

"We are still in the midst of obtaining approvals and there have been some delays. Hopefully, we can launch our Puchong development sometime by April next year," she said.

While this small-cap property developer has kept a relatively low profile, Plenitude's recent acquisition of the 1.1 acre land adjacent to Komtar in Penang could draw some attention to the group and it's plans for the prime Georgetown land.

"This will be quite an interesting project for us. We recently bought the land for RM33 million. We're still working out the details on our plans for it but it will be a mixed commercial development," Chua added.

As at June 30, 2012, Plenitude's land bank size stood at around 1,797 acres while total current and future GDV is estimated to be around RM6.3 billion.

Another thing worth highlighting about Plenitude is that the group is in a net cash position, something that is not often present in other property developers.

"Unlike other property developers in the market, this company basically has no gearing. We think holding cash especially during uncertain times in the economy is a good thing especially when a sudden opportunity to increase our land bank size appears," said William Tan Yew Ngee, the group's executive director.

The group has a cash and cash equivalent position of RM355.4 million and nil borrowings as at June 30, 2012. Net asset per share stood at RM3.13. - The Edgeproperty

Monday, November 5, 2012

Penang Real Estate | Penang Property | Penang Properties: Zan Pavillion

Penang Real Estate | Penang Property | Penang Properties: Zan Pavillion

Penang Real Estate | Penang Property | Penang Properties: Wisma Duke

Penang Real Estate | Penang Property | Penang Properties: Wisma Duke

Penang Real Estate | Penang Property | Penang Properties: Westlands Court

Penang Real Estate | Penang Property | Penang Properties: Westlands Court

Penang Real Estate | Penang Property | Penang Properties: Well Court

Penang Real Estate | Penang Property | Penang Properties: Well Court

Penang Real Estate | Penang Property | Penang Properties: Wayton Court

Penang Real Estate | Penang Property | Penang Properties: Wayton Court

Penang Real Estate | Penang Property | Penang Properties: Vistaria Condominium

Penang Real Estate | Penang Property | Penang Properties: Vistaria Condominium

Penang Real Estate | Penang Property | Penang Properties: Vista Gambier

Penang Real Estate | Penang Property | Penang Properties: Vista Gambier

Penang Real Estate | Penang Property | Penang Properties: Vista Condominium

Penang Real Estate | Penang Property | Penang Properties: Vista Condominium

Penang Real Estate | Penang Property | Penang Properties: Vista Bukit Dumbar

Penang Real Estate | Penang Property | Penang Properties: Vista Bukit Dumbar

Penang Real Estate | Penang Property | Penang Properties: Villa Sri Melati

Penang Real Estate | Penang Property | Penang Properties: Villa Sri Melati

Penang Real Estate | Penang Property | Penang Properties: Villa Ria

Penang Real Estate | Penang Property | Penang Properties: Villa Ria

Penang Real Estate | Penang Property | Penang Properties: Villla Kejora

Penang Real Estate | Penang Property | Penang Properties: Villla Kejora

Penang Real Estate | Penang Property | Penang Properties: Villa Indah

Penang Real Estate | Penang Property | Penang Properties: Villa Indah

Penang Real Estate | Penang Property | Penang Properties: Villa Emas

Penang Real Estate | Penang Property | Penang Properties: Villa Emas

Penang Real Estate | Penang Property | Penang Properties: Victoria Heights

Penang Real Estate | Penang Property | Penang Properties: Victoria Heights

Penang Real Estate | Penang Property | Penang Properties: Vantage Point

Penang Real Estate | Penang Property | Penang Properties: Vantage Point

Penang Real Estate | Penang Property | Penang Properties: Vantage Desiran Tanjung

Penang Real Estate | Penang Property | Penang Properties: Vantage Desiran Tanjung

Penang Real Estate | Penang Property | Penang Properties: University Place

Penang Real Estate | Penang Property | Penang Properties: University Place

Penang Real Estate | Penang Property | Penang Properties: University Heights

Penang Real Estate | Penang Property | Penang Properties: University Heights

Penang Real Estate | Penang Property | Penang Properties: U Garden

Penang Real Estate | Penang Property | Penang Properties: U Garden

Penang Real Estate | Penang Property | Penang Properties: Two Permai

Penang Real Estate | Penang Property | Penang Properties: Two Permai

Penang Real Estate | Penang Property | Penang Properties: Twin Towers

Penang Real Estate | Penang Property | Penang Properties: Twin Towers

Penang Real Estate | Penang Property | Penang Properties: Tiffany Villa

Penang Real Estate | Penang Property | Penang Properties: Tiffany Villa

Penang Real Estate | Penang Property | Penang Properties: Tiara View

Penang Real Estate | Penang Property | Penang Properties: Tiara View

Penang Real Estate | Penang Property | Penang Properties: The Waterfront

Penang Real Estate | Penang Property | Penang Properties: The Waterfront

Penang Real Estate | Penang Property | Penang Properties: The View

Penang Real Estate | Penang Property | Penang Properties: The View

Penang Real Estate | Penang Property | Penang Properties: The Uban Residence

Penang Real Estate | Penang Property | Penang Properties: The Uban Residence

Penang Real Estate | Penang Property | Penang Properties: The Straits Regency

Penang Real Estate | Penang Property | Penang Properties: The Straits Regency

Penang Real Estate | Penang Property | Penang Properties: The Spring

Penang Real Estate | Penang Property | Penang Properties: The Spring

Penang Real Estate | Penang Property | Penang Properties: The Sanctuary

Penang Real Estate | Penang Property | Penang Properties: The Sanctuary

Penang Real Estate | Penang Property | Penang Properties: The Ridgevale

Penang Real Estate | Penang Property | Penang Properties: The Ridgevale

Penang Real Estate | Penang Property | Penang Properties: The Regency

Penang Real Estate | Penang Property | Penang Properties: The Regency

Penang Real Estate | Penang Property | Penang Properties: The Reef

Penang Real Estate | Penang Property | Penang Properties: The Reef

Penang Real Estate | Penang Property | Penang Properties: The Pulse

Penang Real Estate | Penang Property | Penang Properties: The Pulse

Penang Real Estate | Penang Property | Penang Properties: The Peak Residences

Penang Real Estate | Penang Property | Penang Properties: The Peak Residences

Penang Real Estate | Penang Property | Penang Properties: The Palazzo

Penang Real Estate | Penang Property | Penang Properties: The Palazzo

Penang Real Estate | Penang Property | Penang Properties: The Palazzia

Penang Real Estate | Penang Property | Penang Properties: The Palazzia

Penang Real Estate | Penang Property | Penang Properties: The One

Penang Real Estate | Penang Property | Penang Properties: The One

Penang Real Estate | Penang Property | Penang Properties: The Oasis

Penang Real Estate | Penang Property | Penang Properties: The Oasis

Penang Real Estate | Penang Property | Penang Properties: The Mayfair

Penang Real Estate | Penang Property | Penang Properties: The Mayfair

Sunday, November 4, 2012

Penang Real Estate | Penang Property | Penang Properties: The Light Point

Penang Real Estate | Penang Property | Penang Properties: The Light Point

Penang Real Estate | Penang Property | Penang Properties: The Light Linear

Penang Real Estate | Penang Property | Penang Properties: The Light Linear

Penang Real Estate | Penang Property | Penang Properties: The Javenue

Penang Real Estate | Penang Property | Penang Properties: The Javenue

Penang Real Estate | Penang Property | Penang Properties: The Cove

Penang Real Estate | Penang Property | Penang Properties: The Cove

Penang Real Estate | Penang Property | Penang Properties: The Cove

Penang Real Estate | Penang Property | Penang Properties: The Cove

Penang Real Estate | Penang Property | Penang Properties: The CEO

Penang Real Estate | Penang Property | Penang Properties: The CEO

Penang Real Estate | Penang Property | Penang Properties: The Brezza

Penang Real Estate | Penang Property | Penang Properties: The Brezza

Penang Real Estate | Penang Property | Penang Properties: The Address

Penang Real Estate | Penang Property | Penang Properties: The Address

Penang Real Estate | Penang Property | Penang Properties: Tanjung Pura

Penang Real Estate | Penang Property | Penang Properties: Tanjung Pura

Penang Real Estate | Penang Property | Penang Properties: Tanjung Park

Penang Real Estate | Penang Property | Penang Properties: Tanjung Park

Penang Real Estate | Penang Property | Penang Properties: Tanjung Beach

Penang Real Estate | Penang Property | Penang Properties: Tanjung Beach

Penang Real Estate | Penang Property | Penang Properties: Taman Wangi

Penang Real Estate | Penang Property | Penang Properties: Taman Wangi

Penang Real Estate | Penang Property | Penang Properties: Taman Sri Pinang

Penang Real Estate | Penang Property | Penang Properties: Taman Sri Pinang

Penang Real Estate | Penang Property | Penang Properties: Taman Sri Penawar

Penang Real Estate | Penang Property | Penang Properties: Taman Sri Penawar

Penang Real Estate | Penang Property | Penang Properties: Taman Sri Bunga

Penang Real Estate | Penang Property | Penang Properties: Taman Sri Bunga

Penang Real Estate | Penang Property | Penang Properties: Taman Seri Perak

Penang Real Estate | Penang Property | Penang Properties: Taman Seri Perak

Penang Real Estate | Penang Property | Penang Properties: Taman Seri Hijau

Penang Real Estate | Penang Property | Penang Properties: Taman Seri Hijau

Penang Real Estate | Penang Property | Penang Properties: Taman Seri Damai

Penang Real Estate | Penang Property | Penang Properties: Taman Seri Damai

Penang Real Estate | Penang Property | Penang Properties: Taman Petani

Penang Real Estate | Penang Property | Penang Properties: Taman Petani

Penang Real Estate | Penang Property | Penang Properties: Taman Pekaka

Penang Real Estate | Penang Property | Penang Properties: Taman Pekaka

Penang Real Estate | Penang Property | Penang Properties: Taman Meranti

Penang Real Estate | Penang Property | Penang Properties: Taman Meranti

Penang Real Estate | Penang Property | Penang Properties: Taman Medan Penaga

Penang Real Estate | Penang Property | Penang Properties: Taman Medan Penaga

Penang Real Estate | Penang Property | Penang Properties: Taman Manek

Penang Real Estate | Penang Property | Penang Properties: Taman Manek

Penang Real Estate | Penang Property | Penang Properties: Taman Lone Pine

Penang Real Estate | Penang Property | Penang Properties: Taman Lone Pine

Penang Real Estate | Penang Property | Penang Properties: Taman Lip Sin

Penang Real Estate | Penang Property | Penang Properties: Taman Lip Sin

Penang Real Estate | Penang Property | Penang Properties: Taman Kristal

Penang Real Estate | Penang Property | Penang Properties: Taman Kristal

Penang Real Estate | Penang Property | Penang Properties: Taman Kheng Tian

Penang Real Estate | Penang Property | Penang Properties: Taman Kheng Tian

Penang Real Estate | Penang Property | Penang Properties: Taman Jubilee

Penang Real Estate | Penang Property | Penang Properties: Taman Jubilee

Penang Real Estate | Penang Property | Penang Properties: Taman Harmoni

Penang Real Estate | Penang Property | Penang Properties: Taman Harmoni