Thursday, April 19, 2012

Concerns over floor price hike for residential properties


PETALING JAYA: Some property consultants are not in favour of a potential move to increase the floor price of residential property for foreign buyers from RM500,000 to RM1mil.
They said such a move would not affect the increasing prices of ordinary homes, and might deter foreigners from investing or working in Malaysia.
Property consultancy Rahim & Co executive chairman Datuk Abdul Rahim Rahman said Malaysia needed foreigners to be part of its work force as the country progresses to become a high-income nation by 2020.
“Such a move would reduce the number of residential property purchases by foreigners. Personally, I do not think that foreign purchases have contributed very much to the rise in prices of ordinary homes although it did affect the prices of luxury homes or apartments in the KLCC area, initially,” he said on the sidelines of the 22nd National Real Estate Convention.
The convention is jointly organised by the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) and The Royal Institution of Surveyors Malaysia.
PEPS president Choy Yue Kwong was of the opinion that even at the present RM500,000 floor price, many foreign residents did not find it easy to buy homes. “The focus seemed to be on the upper-income bracket (foreign residents). But people forget that many foreigners are just ordinary professionals and workers.”
The 2011 property market report, compiled by the Finance Ministry's Valuation and Property Services Department, had noted that the demand for units priced above RM500,000 had increased nationwide, with 21,905 transactions last year (compared with 16,782 in 2010). “This could be attributed to the increase in affordability level and supported by the ease in borrowing as well as attractive loan packages offered by the financial institutions,” it said.
On residential property values, Abdul Rahim said overall prices should stabilise this year due to credit-tightening measures by banks.
HwangDBS Vickers Research said there would be minimal impact to the property sector from the potential move, as “foreigners usually buy high-end properties (Johor is more vulnerable, given its lower property prices and higher dependence on Singaporeans).”
The research unit noted in a report that recently, developers had been holding back or scaling down launches and setting more reasonable selling prices, after 10% to 20% hikes in 2010 and the first half of 2011. “Although mortgage approvals and applications rebounded in February this year, after the sharp drop in January (partly due to festive holidays), they are 27% and 18% off 2011's peak respectively.” - The Star

Wednesday, April 18, 2012

Property continues climb


The price of homes expected to advance 5% to 10% this year
PETALING JAYA: Overall price appreciation for residential properties is expected to range between 5% and 10% this year, according to CIMBResearch.
In a report, the research unit said residential properties' price appreciation could be even higher but it believed that the Government would continue to remain vigilant on “runaway” property prices.
CIMB Research said in terms of house price appreciation, despite the slower real GDP (gross domestic product) growth projection of 3.8% compared with 5.1% in 2011, it believed that 2012 would be another good year due to several factors.
“Buying momentum continued to be strong, driven by inflationary fears.
“Supply growth should remain depressed as developers have only just started to focus more on affordable homes costing not more than RM500,000 in the Klang Valley.
“Major infrastructure improvements in the Klang Valley such as the MRT (My Rapid Transit), River Rehabilitation and covered walkway projects will help boost property prices.”
CIMB Research said although the residential property market would continue to set new records in 2012, it was expected that there would be a slowdown in the increase in overall transaction values in 2012 after two years of high growth that averaged around 30%.
“In view of credit-tightening measures by the central bank, we believe that the growth in transaction value should slow to 10% to 12% this year.”
CIMB Research noted that in 2011, the growth of residential property supply in Malaysia fell to 1.5%, which was the lowest on record.
The slowdown in supply growth was most pronounced in the big three markets (Johor, Penang and Klang Valley), which recorded an average growth of 1.2%.
The only states to buck the slowing trend were Terengganu, Kelantan and Perlis.
“If supply growth continues to lag behind population growth, house prices can only head in one direction.”
It was noted that major developers such as SP Setia BhdUEM Land Holdings BhdMah Sing Group Bhd and UOA Development Bhd were all gunning for sales records this year and growth rates ranging from 10% to 35%.
It was also pointed out that the risks to CIMB Research's volume and price projections for 2012 included the global economic outlook and the local stock market performance.
However, CIMB Research is not optimistic about the commercial property market in the Klang Valley as oversupply will plague the sector for many years to come.
It noted that occupancy rates for the office and retail sector had started to drop.
Meanwhile, future supply of hotel rooms (under construction) in the Klang Valley is likely to depress occupancy rates in the coming years.
According to CIMB Research, UOA Development would be the biggest winner in a Klang Valley property boom as the company has no exposure elsewhere.
The research unit is also optimistic about the prospects for Johor, particularly Nusajaya, as 2012 would see the completion of various catalyst projects.
“The biggest beneficiaries of a property boom in Johor would be UEM Land due to its vast holdings in Nusajaya and SP Setia which is the dominant developer in the state.”
CIMB Research maintained its “trading buy” call on the property sector, but pointed out that property stocks could be sold down heavily in the event of an unfavourable general election outcome. - The Star

Monday, April 16, 2012

Seri Tanjung Pinang Courtyard Terrace - Put a Smile on Your Face

* Located at Tanjung Tokong, near Tesco Hypermarket
* Near all amenities
* Land Area: 24 x 80 feet
* Guarded
* Quiet & peacefully environment
* One of the most sought after property in Penang
* Near Strait Quay, new happening place in Penang
* Tastefully renovated & furnished
* Priced to rent : RM4,500 per month



Putra Place - A Place Calls Home

* Near Queensbay Mall & Bayan Lepas Industrial Estate
* Built-up: Abt 1,000 square feet
* Easy to rent out in addition of good rental
* Full condo facilities
* Furnished
* 2 covered car parks
* Priced to sell : RM450K
* Priced to rent : RM1,600



Offers of cheap homes


KUALA LUMPUR: Beginning today, about 7,000 public housing tenants in the federal capital will receive offer letters under the People's Housing Programme of the National Economic Action Council and Dewan Bandaraya Kuala Lumpur Public Housing.
Federal Territories and Urban Well-being Minister Datuk Raja Nong Chik Raja Zainal Abidin said the offer letters would be sent by the DBKL Housing Department to their homes.
He said those who received offer letters would be given a month to reply if they took up the offer to buy the houses as the purchasing process would take between three and six months.
“We will not force them to accept the offer letter,” he told reporters after opening the Federal Territory 2011 Excellent Students Awards here yesterday.
The financing scheme was announced by Prime Minister Datuk Seri Najib Tun Razak on Jan 28 to assist the lower-income group currently renting units of People Public Housing and DBKL public housing to obtain loans to buy the units they are already residing in.
According to Raja Nong Chik, the 7,000 involved were the first group of tenants under the first phase of the loan from the Employees Provident Fund totalling RM300mil.
Earlier, he presented the Federal Territory Caring Scheme payment of RM2,500 each to the first 20 recipients.
At the ceremony, he also presented certificates of appreciation and cash to 320 excellent students of Ujian Pencapaian Sekolah Rendah (UPSR), Penilaian Menengah Rendah (PMR), Sijil Pelajaran Malaysia (SPM) and Sijil Tinggi Persekolahan Malaysia (STPM) in Kuala Lumpur.
Meanwhile, Federal Territory Foundation executive director Datuk Mohd Idris Mohd Isa said all the students were selected by the Federal Territory Education Depart-ment, community leaders and schools.
He said for Labuan Federal Territory, 54 excellent students in PMR and SPM would receive similar incentives today.
He said about RM600,000 had been allocated for the programme this year. - Bernama

Sunday, April 15, 2012

Bungalow at Minden Height - Try to Beat It!




* Best with its location
* Near all amenities such as schools, shopping malls, restaurants, hypermarkets, banks, wet markets and etc.
* Near Penang Bridge & Tun Dr Lim Chong Eu Expressway
* Quiet neighbourhood
* One of the most sought after property in Penang





Rare Opportunity! Going, Going, Gone! 
* Land Area: Appx. 6,800 square feet
* Move in condition
* Tastefully renovated
* Plaster ceilings
* Fully air conditioner
* Big garden & big car pouch
* 6 big rooms + 1 maid room (5 rooms with attached bathroom)
* 6 bathrooms
* Priced to sell quickly at RM3mil only

What are you waiting for? View to appreciate!





Saturday, April 14, 2012

Residential overhang units fall 15%

KUALA LUMPUR: The volume of residential overhang units in the country declined 15.2% to 19,607 units with a total value of RM4.92 billion in 2011 in tandem with the better performance of the property market.

According to the Property Market Report 2011 by the National Property Information Centre (Napic), the volume of residential overhang was 23,133 units in 2010.

Overhang units are defined as completed units that have obtained certificates of fitness for occupation (CFO) but have not been sold for more than nine months after the official launch for sale.

Putrajaya remained overhang-free while nine states posted lower residential overhang numbers in 2011 against 2010. Among them were Penang (2010: 311, 2011: 332), Perak (2010: 1,091, 2011: 1,263) and Kedah (2010: 1,270, 2011: 1,316). Kuala Lumpur however has the highest number of overhang residential units and saw a rise of 19% to 2,871 units in 2011 from 2,400 units in 2010.

By price range, 55.7% of the overhang units were priced below RM150,000. Condominium and apartment units were dominant in the overhang category making up 26.1% or 5,118 units of the total.

The report also revealed that construction activity was positive in the residential sector. New starts rose by 36.6% to 115,448 units compared with 84,486 units in 2010.

Identically, supply of new planned projects grew 44.4% to 117,291 units compared with 81,238 units in 2010 while completed units in 2011 posted a softening with 64,538 units from 99,866 units in 2010.

In terms of housing completions Selangor was the most active state with housing completions at 23.8% of the national total or 15,377 units in 2011 while starts and new planned supply stood at 24,612 units and 23,899 units.

States that posted a higher number of completions than the previous year were Perak and Johor which recorded 8,117 units and 7,995 units respectively.

As for construction starts, Johor and Penang were the leading states with Johor’s construction starts increasing by 16.8% to 19,369 units while Penang grew 8.9% to 10,274 units respectively.

At the end of 2011, there were 4.51 million existing residential units with another 584,546 units of incoming supply. Incoming supply is defined as units where construction works are in progress including construction starts and where the CF/TCF have not been issued during the review period.

Meanwhile, overhang for shop units showed slight improvement to 5,482 units (valued at RM1.59 billion) in 2011 from 5,550 units (valued at RM1.67 billion) in 2010. Johor recorded the highest number of unsold shop units making up 48.4% or 2,652 units of the total overhang number of shops in the country.
Predominantly, 2 and 2 ½ -storey shops accounted for 30.8% of the total.

The industrial segment also saw an improvement in overhang volumes. In 4Q11, there were 625 overhang units worth RM317.43 million compared with 655 units worth RM353.38 million in 2010, translating to a decline of 4.6% and 10.2% in volume and value respectively.

Selangor had the highest overhang figures in this segment making up 29.8% or 186 units valued at RM101.78 million of the total industrial overhang units. - The Edge Property

New attraction on hill


WORK on a 200m-long Penang Hill zigzag canopy walk and 1.6km-long educational nature trail will commence early next month.
Access to forest: An artist's impression of the canopy walk which will be constructed in a zigzag fashion.
The eco-tourism project, estimated to cost over RM3mil, was awarded to local engineering firm Creative Quest Sdn Bhd (CQSB) after the open tender closed on Nov 30, 2010.
CQSB director Harry Cockrell said a project team had been assembled and was waiting to start work.
Chief Minister Lim Guan Eng said work on the project would start once the agreement was inked between the state government and CQSB in “a week or two”.
The project will be undertaken in two phases and is expected to be completed in 10 months.
Phase one consists of renovation of buildings and the construction of the nature trail and canopy walk.
The second phase is to complete the nature trail and build the ‘heli-pad plateau’ rest area, giant swings and remaining rest areas.
Eco-tourism consultant Frederick Walker said the project would leverage on the hill’s heritage and the use of green materials for construction.
The ‘heli-pad plateau’ is located halfway along the nature trail and will be designed with an English-style botanic garden concept. There will be creeks and water features with benches and sitting areas.
“Water will be re-circulated from the hill stream,” he told a press conference yesterday.
Other features include solar-powered lighting and interactive informative signage.
He said the existing canopy walk located along Summit Road would be dismantled with the component parts reused.
He said flora indigenous to the hill would be replanted where soil erosion had occurred.
“There is already an existing path so there won’t be any massive clearing or tree cutting for the nature trail,” he said.
Cockrell said ticket prices had yet to be determined but assured the public that it would be affordable especially for locals.
Lim said out of five companies which attended the site briefing, only CQSB submitted a development proposal.
“Cockrell is a long-term resident on the hill and we are confident that CQSB will deliver an eco-tourism attraction that is of international standards,” he said, adding that the project’s concession period was 30 years.
Penang Hill Corporation is the agent for the state government in the project to be fully financed by the firm.
The canopy walk was closed in 2006 due to a termite problem but reopened in July 2007 after repair work.
It was closed after being partially destroyed by falling trees during a thunderstorm in September 2008. - The Star

Transport master plan up for public viewing


THE public can view the Penang Transport Master Plan draft copy which will be displayed at various places in the state from Monday until the end of the month.
State Local Government and Traffic Ma­­nagement Committee chairman Chow Kon Yeow urged the public to give their input by completing a questionnaire during the public display.
He said the draft copies would be displayed at Komtar level three concourse and Seberang Prai Municipal Council headquarters in Bandar Perda from Monday until April 20 and from April 23 until April 27 from 9am until 5pm.
“The public can also view the draft at malls including Sunshine Farlim in Bandar Baru Air Itam and Sunway Carnival Mall on April 21 and Gurney Plaza and Jusco Perda Mall on April 28 from 10am to 5pm.
“Penangites can also give their feedback via the Penang Transport Council website www.ptc.penang.gov.my before the end of this month,” he said at a press conference at Level 52 Komtar yesterday.
There will also be two workshops open to the public on May 3 and May 5 at Caring Society Complex.
Chow said the state government, when appointing consultants through tenders, had stipulated that public consultation was one of the terms of references and the public views must be taken into consideration in the final report.
“The consultants of the Penang Transport Master Plan have applied for six weeks’ extension to review the public engagement,” he said.
On Tuesday, The Star had quoted Halcrow Consultants director Dave Turner as saying that the master plan consisted of several proposals to ease traffic congestion in the state.
They include the Highway Improvement-Based Approach and the Balanced Approach Vision.
Both approaches consist of the Core Package — improvement on high ways, public transport and implementation of policy intervention.
The Highway Improvement-Based Approach that costs RM12.5bil encompasses the Core Package with the Third Crossing, Cross City Link from Jelutong to Air Itam bypass, North Coast Pair Road, Air Itam to Relau Pair Road and the North-South Expressway Link.
The Balanced Approach Vision that does not require the third link consists of the Core Package along with the Penang Outer Ring Bypass, the North-South Expressway Link, trams, ferries, commuter rail and George Town/Butterworth Access chargers.
Consumers Association of Penang president S.M. Mohamed Idris had complained about the lack of public consultation by the state government on several mega projects in the pipeline.
He was referring to the proposed construction of a 6.5km Gurney Drive-Bagan Ajam undersea tunnel, a 12km road connecting Tanjung Bungah and Teluk Bahang, a 4.2km Gurney Drive-Tun Dr Lim Chong Eu Highway bypass and a 4.6km Tun Dr Lim Chong Eu Highway-Bandar Baru Air Itam bypass. - The Star

Queen of crafts


QUITE a number of guesthouses and cafes have mushroomed in the heritage enclave of Penang, but only a handful preserve the original features of the pre-war houses.
The interior should not be altered where preservation is concerned, but restoration is often required especially when the buildings, more than 200 years old, are falling apart.
Over at Queen Street in George Town, an unassuming sign of “Chai Diam Ma” is displayed outside a pre-war building that houses a cafe and a shop for handmade crafts.
From passion: Lee started the business with less than RM5,000 in capital.
The building is well preserved although it is almost 200 years old, thanks to Queen Lee.
Lee, 35, was a kindergarten teacher and part-time tuition teacher before venturing into this business. She initially carried on with the stable work of teaching but the thought of having her own business never left her mind.
“The time spent with the kids was simple and joyful, but I felt I was only doing it for the bosses, regardless of how good and hardworking I was.
“I didn’t want to continue doing that, so I left the kindergarten and spent a year concentrating on making crafts. I met a few fellow hobbyists from Kuala Lumpur and sold my products in Kuala Lumpur occassionally,” she said.
Rustic pieces: Almost every piece of furniture at Chai Diam Ma was salvaged from the streets, or given to Lee by her friends.
In Malaysia, the market for handmade crafts is limited mainly because there is a lack of supporters of arts and crafts.
People also generally think that handmade items are more expensive, so artists can hardly make a living from it.
But Lee did not give up. She believed that she would eventually carve a path for herself if she knew how to respond to the circumstances.
She constantly thought of a way to strike a balance between earning a living and pursuing her interests.
Just as she was seeking an answer, she came across a “For Rent” sign on a intermediate-lot pre-war house on Queen Street.
It was love at first sight. She immediately called the real estate agent and made an appointment to visit the house the very next day.
“I was thrilled when the agent said the rent was around RM1,000, because I could afford it with my savings.
“The deposit, rent, and the costs for a customised bar and some basic kitchen utensils came up to less than RM5,000,” she revealed.
Because she did not have much money left, “renovations” were not included in her checklist. Almost every piece of furniture in the building was salvaged from the streets, or given by her friends.
“I used some of them as dining tables for the guests, while the rest as racks to display the handmade crafts.
“My first fridge was actually given by a friend, and I just replaced it with a new unit recently,” she said.
It has been a year since she opened the cafe, but she still operated the business in a prudent manner.
When the cafe is closed for four hours in the afternoon, she gives tuition to primary school pupils to generate more income to make her other dreams come true. Travelling is one of them.
There are probably very few people who still keep a part-time job after opening their own business, but she is not complaining. In fact, she finds her busy life fulfilling. Lee told Red Tomato that she spends weekday afternoons rushing from one student’s house to another.
“I will not be an employee of others anymore. Although my current life is tiring and busy, I am doing all this for myself.
“I have always wanted to have my own business. Coming from a fine arts background, I have a deep affection for pre-war house. All my dreams are coming true one by one.”
However, her biggest worry now is rent, which has skyrocketed over the past 12 months.
People in the northern states often refer to grocery store as chai diam ma.
As the name suggests, Lee’s cafe offers assorted creative and interesting handmade crafts such as dolls, accessories and T-shirts, in addition to coffee and simple meals.
Lee revealed that most of the handmade items were crafted by fellow hobbyists because she is too occupied with the business.
“It’s very difficult to make a living out of selling handicrafts. I do a small part to help them by offering a small space to sell their products. I don’t charge rent, but get a commission when the items are sold,” she said.
Lee said most people patronise Chai Diam Ma to have a peek of the centuries-old pre-war house. Coffee only comes second, nevermind the handmade craft items.
Therefore, it is her earnest wish that people pay as much attention to the crafts at Chai Diam Ma as much as they treasure the pre-war architecture. There are a lot of local talented artists but very few people appreciate their work.
“Handmade crafts are different from handicrafts. Not only are the quantities limited, they are lively and unique. It takes the artists long hours and a lot of efforts to make them, while handicrafts can be mass produced.
“Compared to Kuala Lumpur, the market for these crafts in Penang is still small. I hope my small shop can contribute a small effort to help the artists,” she said.
Chai Diam Ma is located at 15, Queen Street, Georgetown, Penang.
*This feature is translated from an article in Red Tomato. Get your copy of Red Tomato, the country’s first free Chinese weekly, every Friday at most RapidKL LRT and Monorail stations, as well as selected convenience stores and shopping centres nationwide.