Property prices increase at slower pace

PETALING JAYA (June 11): Property prices in Malaysia increased, albeit at a slower pace in 4Q11 from previous quarters, according to data on Bank Negara Malaysia's (BNM) website.

In 4Q11, the Malaysian House Price Index grew 6.6% compared with a 9.9% increase in 3Q11, and in contrast to gains of 10.6% in 2Q and 9% in 1Q.

Five out of six states under the House Price Index — Selangor, Johor, Penang, Negri Sembilan and Perak — recorded slower growth in house prices in 4Q11 compared with 3Q.

In contrast, Kuala Lumpur registered higher growth with a 13% increase in 4Q11 versus 11.3% in 3Q11.

Selangor saw a growth of 7.2% in 4Q11 compared with 11.6% in 3Q11. For 2Q11, Selangor's growth was 13.9% and 12.1% in 1Q.

In Johor, the quantum of increase in house prices was 5.4% in 4Q11 against 7.4% in 3Q11, while in Penang, it was 9.9% in 4Q11 versus 10.2% in 3Q11.

House prices climbed 3.2% in the final quarter of 2011 in Perak, which was much lower than 11% in 3Q, and 12% in 2Q. In Negri Sembilan, house prices grew 2.6% in 4Q11 compared with 10.2% in 3Q and 10.5% in 2Q.

According to BNM's Financial Stability and Payment Systems Report 2011, house prices have continued to increase at an annual average of 5.9% on a quarterly basis in the recent three years, compared to the long-run average of 3.9% for 3Q11.

The bulk of the loans extended for the purchase of residential properties was for those priced above RM250,000.

In 2010, the central bank started implementing measures to mitigate excessive investment and speculative activity in the property market as well as to ensure rising household debts did not pose financial stability concerns.

Household debts in Malaysia became a concern as they started to balloon hitting 77.6% last year. The bulk of household debts came from home financing.

As such, BNM was quick to implement measures for the property sector. A 70% loan-to-value (LTV) ratio was applied to individual borrowers with more than two housing loans in 2010, while capital charges on banks were raised for residential property loans with LTVs exceeding 90%.

Last December, residential property loans taken by non-individual borrowers were also subjected to a LTV ratio of 60%.

There were also guidelines for credit cards, which included higher income eligibility. In addition, effective this year, banks are using net income instead of gross income to calculate the debt service ratio for loans.

This story appeared in The Edge Financial Daily on June 11, 2012.

发展商借用地段非法建设 地主交槟市局拆除

（槟城11日讯）天公坛后1618地段（lot）的地主抽回原本让发展商借用土地作为临时通道的协议，并全权交由槟岛市政局拆除非法的建筑结构。该地主的代表陈海森说，地主赞同收回较早前跟发展商的协议，即允许对方使用有关地段充作临时通道，代表更透露，地主不曾知道对方在该地段内进行建筑及围篱笆的工程。
赞成开通路段　非进行建设
他说，地主完全不知道发展商在地段内进行非法建设，希望对方能即可停工，更全权交由槟岛市政局进行拆除。他是于周一出席由槟州首长政治秘书黄伟益所召开的记者会时，如是表示。尽管如此，他多番强调，有人愿意开路通往山顶，当然是无任欢迎，因为这方便地主及居住在山上的居民进出。
陈海森向记者形容，这段遭开发的山路原是岩石地段，若要使用这条道路通往山顶，必须攀越岩石才能到达山顶。不过，这段已经遭开发的山路已允许车子直接通往，而且也铺满石子，相信这段路程是经过炸石后，才出现这段通行无阻的山路。另外，在路旁的水池，也是经过设计后才出现。
黄伟益是于5月11日突击这地段，才揭发发展商非法开发山路。当时，他说发展商是在没有获得任何批准之下先行开发有关地段，并给予对方30天的时间自行清理及拆除，否则槟岛市政局官员将派执法人员前来拆除。事经1个月后，黄伟益再度返回该地段召开记者会，而地主也派出代表陈海森力挺黄伟益，也允许执法人员拆除。尽管如此，黄伟益说，没有任何证据证明发展商在接到停工令后仍继续工程。“槟岛市政局援引第1974年道路、沟渠及建筑条例，在于5月29日发出2张罚单，指示发展商必须在30天内搬空，否则槟岛市政局将进行拆除。”他说，发展商也通过律师发出信件，指出在该地段前筑起围篱，主要是避免车子进入，而坠下水池中。- 光华

国阵新竞选宣言●重夺槟政权 将恢复单轨火车计划

（槟城10日讯）国阵来届大选最新竞选宣言，一旦重夺槟州政权，将会恢复自民联政府执政后胎死腹中的单轨火车（Monorail）计划。槟州国阵主席邓章耀周日出席槟州国阵妇女组第13届大选策略说明会后在记者会上表示，若国阵在下届大选重夺槟州政权，将会再次实行单轨火车计划，但将会做出一些调整。
他说，由于当时策划的房屋密度跟现在已不同，但相差并不大，必须配合目前的发展计划。他也强调，恢复单轨火车计划，将是国阵在来届大选的竞选宣言之一。他指出，根据过去报导，国阵已非常明确的要实行单轨火车计划，但现任州政府却不要，然而他本身已不是州政府，不知道他们是否知道什么是第9大马计划或第10大马计划。“国阵过去承诺要在槟城实行单轨火车计划，但州政府却意见多多，无法做出抉择，一时说要地面火车，一时又说要空中巴士，他们到底要什么？”他解释，无论在第9大马计划或第10大马计划上，每个州政府将提呈计划给中央政府，并派出官员与中央部门交涉及争取。他指出，由于各州政府都有各自的计划，中央拨款也有限，州政府必须把整个过程告诉中央政府该如何进行，是否有能力实行及监督有关计划。
“每个部门完成第9或第10大马计划后，须呈上给经济策划组及财政部，再次向相关部门提出州政府的要求，当内阁及国会批准后便可执行，州政府必须确保有能力实行，每项计划将按照策划完成。”他表示，在第9大马计划进行期间，国阵已输掉槟州政权，但中央政府仍完成当时安排的策划，确保这些计划可带动槟州经济及提升人民的水准，一些较大型的计划已开始或完成。
另一新经济“火车头”
此外，他也澄清，服务业将是槟州另一个新的经济“火车头”，同时也会保留制造业这个原有的“火车头”，而不是将之取代，只是有人故意扭曲事实。他指出，制造业仍是继续发展的“火车头”，同时将制造出另一个新的经济“火车头”，即服务业，并用这两个“火车头”来提升州内经济。“我们不可能把已有很强基础的制造业关掉，这是不可能的，有经济知识的人是不会这么做，除非是要混淆人民的看法，这是不对的。”此外，他说，本月中至下个月中，将会与槟州国阵区部竞选机制见面

槟民联捉紧山坡地发展禁令 新港8亿发展计划腰斩

（槟城10日讯）槟州民联政府捉紧山坡地发展禁令，新港一项8亿令吉发展计划面对“沉船”命运！以槟州首长为首的槟州规划委员会（SPC），今日宣布插手新港一项引起争议的山坡地发展计划，紧守海拔250尺山坡地发展禁令，誓言执政一天，绝不批准任何抵触上述条规的山坡地发展。
林冠英周日联同地方政府委员会主席曹观友及阿都玛列行政议员等，与新港蒂沙丽雅反对山坡地发展计划的居民对话会上，多次拍敲桌子激动向居民派定心丸，只要民联政府执政一天，以他为首的槟州规划委员会绝不批准上述计划。他说，将会指示槟威两地地方政府，将任何250尺以上的山坡地发展计划向规划委员会提呈。他进一步指出，针对新港发展计划涉及在250尺山坡地进行发展，他也是从报纸上阅读后获悉，对此感到震惊及感到不悦。
他表明坚定立场，即使有关计划最终获市政局上诉局判决胜诉，居民面对败诉，又或者市政局已批准规划图测及发出动工令，然而上述计划在提交到槟州规划委员会后，也将不会过关。他在对话会后也向居民表示，州政府会在这计划引起的争议找出路。在上述新港发展计划涉及80依格的山坡地发展，发展地座落海拔250尺水平线，同时涉及坡度为25度的第三级山坡地，面对在地公寓及平地屋居民多次抗议。
居民要求撤销该计划
林冠英在与新港反对山坡地发展计划对话会上，被居民要求援引“1976年城乡法令第172项法令”第25（1）条文下赋予的权力，撤销有关发展计划的批准信。当时，林冠英强调，若引用上述条文，将造成州政府面对钜额的索偿，而政府不能为别人（前朝政府）犯下的错误，而担起责任。反之，他说现政府只能为其任内政府犯下的错误负责任。不过，当时一名居民即“提醒”，新港发展计划於2012年2月21日，由芭缇雅所批准，所以林冠英不该指计划是前朝政府批准，这与事实不符，林冠英一时“回不过神来”。在州规划委员会不批250尺以上山坡地发展下，涉及8亿令吉发展总值（GDV）的双溪威城（Sunway City）计划将面对难关重重。据了解，有关计划涉及在新港一块洛14345的海拔250尺山坡地发展，这引起州政府震惊及关注；有关发展商是于2010年9月27日，以3876万令吉购地，拟议在上述面积高达80依格的山坡地，打造14栋高级公寓计划，这些计划分别楼高10至21层，其中包括4-5层楼的地下停车场 -

KL land price too high?

Freehold land along Jalan Bukit Ceylon selling for RM700 per sq ft

KUALA LUMPUR: The three parcels of freehold land along Jalan Bukit Ceylon, Kuala Lumpur that was recently put up for sale are priced on the high side, property professionals said.

Last week, advertisements appeared for the sale by tender of three parcels totalling 36,563 sq ft with a reserve price of RM26mil, or about RM700 psf.

“On an as-is' basis, this is quite high. I would reckon a price of RM500-RM550 is more realistic considering its residential use status,” a valuer said.

Sources familiar with the sale said interested parties have to pay more if they were to convert it for commercial use.

The piece of land, which is located at the intersection of Jalan Bukit Ceylon and Jalan Ceylon, is situated on a hilly area.

“Commercial status fees can vary and it depends on a case to case basis by the authorities. It could be that after conversion, the cost of this piece of land may rise up to RM1,500 psf or more, which further adds to the costs of development,” sources said.

“If you are a developer, you must ask yourself whether you will be able to make a profitable sum,” he said.

However, a valuer said RM700 seems fair and the residential status was a non-issue.

“A developer can still build residential units and owners will not have to pay commercial rates for utilities. Although it may not be close to rail links, it is located in the city,” said a source.

StarBiz understands that the piece of land, which is located at the intersection of Jalan Bukit Ceylon and Jalan Ceylon, is situated on a hilly area and prospective developers who may be eyeing the piece of land will need to carry out additional levelling works, which will further add to the costs of development.

“I would reckon a 20% margin is comfortable before developers actually decide to do this (carry out development work).

“Ground works will definitely add a substantial amount to the costs as well,” a developer said.

Another property consultant used the example of a piece of prime freehold land measuring 50,063 square feet located in nearby Jalan Tengah, which is just next to Eastern & Oriental group's St Mary's Residences.

This piece of land is being transacted at about RM100mil, which prices it close to RM2,000 psf.

However, this piece of land has a commercial status, which does not require any additional costs for conversion.

It is also located in a relatively more centralised area nearer to public transport facilities. - The Star

Home prices in suburban Klang Valley expected to hold steady

KUALA LUMPUR: Property prices in suburban areas in the Klang Valley may be stable in the next two years, as there would be a lot of supply to cater to the demand.

Low Yat Group executive director Low Su-Ming said she believed that “prices will be holding the way they are because there is more supply coming up in the northern and southern corridors” and that developers were already branching out to areas beyond the first tier locations.

“I don't think there will be an acceleration unless the development is prime but having said that, construction cost and land prices will not come down,” she told StarBiz.

Low said that while the domestic demand for properties was varied, there was unwavering demand for landed property among Malaysians.

Low: ‘Property prices will be holding the way they are.’

“There will continue to be demand for these homes and more Malaysians are also looking for landed properties at affordable prices. People are going out (of the urban areas) and developers will go where there is a catchment market.”

Whether prices would appreciate and at what rate, Low maintained this will depend on the developers' distinctive concepts and product pricing. The Low Yat Group has a mid-market 2,670-acre township development in Bandar Tasik Puteri, Rawang that is 50% completed with a 50,000 population.

Low said the township has become more appealing now as more infrastructures have been introduced to the area, notably highways that shortened the time it took to travel into the city centre.

“There is a choice (for Malaysians). That's the beauty of Klang Valley. You can own an inner-city dwelling yet live 20 minutes away and have a huge mansion of your dreams,” she said, noting that it was something intense, highly developed cities like Hong Kong and Singapore could not offer.

“We have a young and growing population. In the Klang Valley, we have a great deal of opportunities to make our city into a well-developed and sustainable city by having the various townships linked up through infrastructures like highways,” she said.

Of a recent report about rising prices in Penang, Low said that an effective masterplan for sustainable development was needed to overcome concerns from Penang's population.

“Penang is undergoing a transition. In the next three to five years, it should join the ranks of world class beach and tourist destinations like Bali, Phuket, Singapore and Hong Kong.

Low Yat Group’s 2,670-acre Bandar Tasik Puteri township in Rawang.

“It will also become a choice destination for high net worth individuals who come here here the Malaysia My Second Home programme,” she said, adding that this scenario should be perceived positively.

“As long as guidelines are in place and administered efficiently, the island will gain from better quality projects that are designed by internationally acclaimed architects and master planners,” she said.

Low Yat has been in the Penang property scene since the late 1970s building resorts, hotels and condominiums.

Currently, it has an upcoming five-star hotel project with 382 rooms along Northern Road on the island.

The project is scheduled to commence construction in the first quarter of next year. - The Star

Taskforce: Pig farmer polluting mangrove swamp

CHECKS by relevant agencies found that a pig farm owner who failed to treat sludge in the sewage pond in Kampung Pantai Acheh in Balik Pulau, Penang, for the past 10 years has been causing the muck to ‘overflow’ into a nearby mangrove swamp.

Taman Negara Penang Monitoring Taskforce committee member Teh Yee Cheu said the improper management of the pond in accordance with the set environmental guidelines had resulted in the mangrove swamp, which is part of the Taman Negara in Teluk Bahang, to be polluted.

He said the farm owner was already committing an offence by running the farm which encroached on a piece of state government land.

“He then went a step further by not treating the sludge in the sewage pond causing the pond to be filled with murky water which is emitting a foul stench,” he said.

Teh, who visited the site recently, said the contaminated water also flowed out to the sea which made matters worse.

He said the checks were carried out by the Environmental Depart-ment and the southwest district Drainage and Irrigation Department (DID).

Teh also said he was shocked to find out through an emailed reply from the DID that the part of the sewage pond, which was on state land, was given a temporary occupational licence last October.

“This means that all this time, the pond was actually illegal.

“Action should be taken against the farm owner for jeopar- dising public health as well as polluting the environment,” he added.

Teh, who is also Tanjung Bungah assemblyman, suggested that the farm could be relocated to a more suitable location like Kampung Selamat in the southern part of Seberang Prai. - The Star

RM7mil to tackle floods

THE Penang Government has allocated more than RM7mil in its effort to tackle floods in five places on the island.

Penang Agriculture and Agro-based Industries and Flood Mitigation Committee chairman Law Choo Kiang said several flood mitigation projects were expected to start before the next rainy season (in September) to help minimise the risk of flood.

“The state allocated more than RM200,000 for the upgrading of the sewerage system in Kampung Bukit, Bayan Lepas, in April and the project will be managed by the Public Works Department (PWD),” he said.

“The upgrading work, such as replacing the box culvert, is expected to start before September as PWD will have to prepare the tender documents and look into traffic management before starting the project.

“The whole procedure before the project starts will take at least three months,” he told reporters after inspecting the sewerage systems in Jalan Besar, Bayan Lepas, yesterday.

Bayan Lepas PAS coordinator Asnah Hashim said Kampung Bukit often experienced flood during downpour and the problem had been there since it was under the Barisan Nasional administration.

“The land in Kampung Bukit is lower and water flowing from the hill to the village causes flood,” she said.

Kampung Bukit Community Security and Development Committee chairman Akbar Ibra-him said flood would occur after about two hours of heavy rain.

He hoped that with the flood mitigation project in Kampung Bukit, the flood water would be diverted into the nearby Sungai Bayan Lepas.

Law said three other flood mitigation projects were also waiting to start since the allocation was approved.

“One of the projects includes replacing the box culvert with an arch bridge in Jalan Sungai Dua (opposite Universiti Sains Malaysia).

“The box culvert is too small for the huge volume of water to pass through during heavy rain,” he said.

“By replacing it with an arch bridge, more water will be able to go through and this will help prevent flooding,” he said.

Law said upgrading works on drainage system would also be done in Jalan 3 and Jalan 6 in Minden Heights.

“The level of the road is lower, thus this causes flooding in the area during heavy rain.

“Both projects will be managed by Drainage and Irrigation Department,” he added.

Law said the sewerage system in Jalan Berek, Pulau Tikus, would also undergo upgrading works and was expected to start next week.

“The project in Jalan Berek will be managed by the Penang Municipal Council (MPPP).

“An additional budget of RM30,000 was also given to MPPP to de-silt the monsoon drain in Jalan Gurdwara to prevent flooding,” he said. - The Star

Lim: Planning committee to look into hill development exceeding 76m

GEORGE TOWN: Development on hills above 76m, whether approved or unapproved, will be referred to the state planning committee, chaired by Lim Guan Eng.

The Chief Minister said these projects, including those approved as “special projects” by the previous administration, should be referred to the committee, which comprises several state executive councillors.

“At least let us be aware of all projects – even those above 76m. I don’t want to only know about it from the newspapers,” he said to reporters in Komtar yesterday.

“I, as the head of the state government, and state Local Government and Traffic Management Committee chairman Chow Kon Yeow do not want to be the last to know. At the same time, we can explore other remedies to prevent projects above 76m from starting.”

Lim also met Sungai Ara residents who have protested over two hillside development projects. He said these were approved on Sept 13, 1996, by the previous state government as a “special project”.

“Following this discovery, we’ve decided that such projects should be referred to the planning committee.

“When this project was reported in the press, it shocked me that this was happening. I thought there must have been a system failure that failed to detect the projects above 76m.

“I contacted Penang Municipal Council president Patahiyah Ismail and she told me that they followed the procedures and passed the requirements as it was taken out of the category as a ‘special project’, and approved by the previous state government,” he said.

Lim said the current state government was unhappy that the 76m limit had been breached because of previous approvals, adding that the details of 31 such projects by the previous state government would be released. - The Star

Apartment built like a hotel

IF a serviced apartment is like a marriage between a hotel and an apartment, Low Yat Group's latest luxury project may elevate the romance between the two to another level.

Named after a neighbourhood in Lower Manhattan of New York City, Tribeca is designed with elements of a neighbourhood within a building that is also equipped for hotel-style living.

Executive director Low Su-Ming says Tribeca will target mainly investors as well as those seeking the true essence of city-living.

“We find property investors these days seek a lot more added value for their investments,” she tells StarBizWeek.

Hospitality suite: Low with a model of the Tribeca tower project.

Among the key features of the hospitality suites are the two rooftop infinity swimming pools and five distinctively different Sky Pods which work as common areas scatter throughout the building.

This is a concept first in Malaysian residential developments and will be visible from the exterior of the building.

The pods, or breakout spaces, will each occupy three storeys along the corridor with internal staircases for easy accessibility. Among the pods would be a jungle-themed children play pod, a three-storey exclusive club lounge, business function rooms and more.

“Each pod acts as extended features to the units where residents or business travellers staying temporarily can entertain friends in one of the lounges or host a 20-pax dinner function in the club,” she says, adding that while residents are free to utilise the common facilities, “some are only accessible with a small fee”.

Tribeca is also designed to light up with colours all around its tower.

“We say for this project, we say we have to do a bit different to define urban. It does not have to be the gray, CBD, Class-A steely look,” Low says.

The group wanted to bring a bit more fun and life into the cityscape by featuring different coloured windows at each unit, making the whole tower rather colourful from the outside.

“As a private developer, we are doing our fair share in contributing in terms of not just adding another building to the city skyline but also thinking of ways to activate the city,” she says.

Being sited on a very strategic location, Low says the group wants to complement the activities already there while further adding vibrancy to the city centre by designing and operating a building that meant for urban lifestyle.

The development will have 297 units built on a 0.756-acre freehold land.

It is a 15-minute walk to Kuala Lumpur City Centre through the covered walkways and a five-minute walk away from Pavilion shopping mall.

Situated in on Jalan Imbi, it is close to the Bukit Bintang and Imbi monorail stations. It will also be accessible via the proposed My Rapid Transit stations in the Bukit Bintang and Pasar Rakyat.

For the studio and suites in Tribeca ranging from 510 sq ft to 1,020 sq ft build-ups, Low Yat expects to price them between RM950,000 and RM1.5mil.

The development has limited loft units with a build-up of 1,300 sq ft, priced in the range of RM2.4mil to RM3mil.

The 36-storey development is targeted to launch in the last quarter of this year and construction would be completed three years from then.

“Summing it up, it's a solid and sustainable investment project. Small units are selling better than larger units, that is a fact,” Low says, adding that while 10% of the units were lofts, the focus is on small serviced suites.

Although land bank in the bustling city centre may be a challenge, Low continues to see potential in Greater KL.

“The Low Yat Group has been a part of the metamorphosis of Greater KL over the last 60 years beginning with its first development Federal Hotel in Bukit Bintang,” she says.

She reveals that there are expansion plans underway for some of Low Yat's first developments in the Golden Triangle, such as Low Yat Plaza and BB Park.

Under Low Yat's property development division are two distinctive portfolios, namely the premium luxury portfolio and the ongoing affordable and mid-market housing developments.

“Tribeca would be the latest addition to our premium luxury projects that occupy prime city centre sites while we are also undertaking larger land tracks for residential landed development happening in the northern Klang corridor,” she says.

With the rampant developments around the Klang Valley, Low says that there is a whole basket full of options for Malaysians in different parts of Kuala Lumpur.

“Different town centres are sprouting out all over Klang Valley but there is only one city centre and it continues to be appealing to both locals and foreigners,” she says.

For its luxury developments, Low Yat has completed and on-going projects like Bintang Fairlane Residences, MyHabitat serviced apartments and the Shiki ski resort in Niseko, Japan.

Low Yat Group has also expanded to China with a commercial development project in Changsu. - The Star