‘Govt will provide the funds’ Chua: State should now give land to build the flats

BUTTERWORTH: The Federal Government has agreed in principle to finance the construction of replacement flat units for the 70 families living in dilapidated longhouses in Rumah Hijau, Mak Mandin here.

Barisan Nasional’s Bagan parliamentary constituency co-ordinator David Chua said National Housing Department director-general Datuk Ramlan Harun had conveyed the matter to the area’s Residents Association representative Samsudin Mohamed via a letter dated May 17.

“The Department says it is willing to consider the resi- dents’ application for financial assistance to construct the flat units.

“The construction of a flat unit, measuring 600sq ft cost about RM60,000, while the entire cost for the 70 units is about RM4.2mil,” he said after Deputy Prime Minister Tan Sri Muhyiddin attended the Jom Bersama TPM (Program Semarak Kasih Rakyat) in Taman Tanjung Aman off Jalan Raja Uda here yesterday.

Chua, who is also MCA Bagan division Youth chief, said he had done his part to convince the Federal Government to help the residents over the last two years.

“It is now up to the state government to provide a piece of land for these residents to build their flat units.

“These residents have waited nearly 40 years for their replacement units, so let us not delay this any further,” he said.

Chua also said Muhyiddin had consented to give each family RM2,000 to repair their houses.

In May 2010, State Town and Country Planning, Housing and Arts Committee chairman Wong Hon Wai had said that the Penang Government wanted the Federal Government to subsidise half of the estimated RM30mil low-cost housing project to replace the existing Rumah Hijau longhouses in Mak Mandin.

Wong had also said the project could exceed RM30mil because of a proposed change in the contractual terms between the state and the company. - The Star

PCTH: Traffic jams worsening in Penang

GEORGE TOWN: The Penang Chinese Town Hall (PCTH) has called on the Penang Government to overcome the worsening traffic congestion on the island.

When addressing the town hall’s annual general meeting, its chairman Datuk Lam Wu Chong said this escalating issue was of grave concern to many Penangites.

“It is always a point of contention for Penang. Rapid economic development has not been met with an equal amount of attention given to proper long-term traffic planning.

“Various steps should be taken to manage the traffic,” said Lam.

The issue was raised as one of the motions and it was supported unanimously.

During the dialogue session, a delegate who declined to be named, said Penang saw one of its worst ever road congestions during the recent school holidays.

“Penang is already congested with traffic and with the influx of visiting vehicles, the situation is getting critical. The state and the Federal Governments should do something about this as it is a major turnoff for tourists,” he said.

Lam responded by saying that the state and the Federal Governments should cooperate and find a solution to ease the congestion.

“The funding to construct the proposed Penang Outer Ring Road and the Light Railway Transit or other possible options will ensure a continued pace of development so the people can benefit from them,” he said.

The Government should also restore Penang’s free port status in promoting the state as a centre of international investment. This can further stimulate Penang’s economic growth, he added.

The two-hour meeting saw various motions passed and among them were calling on the Government to resolve the shortage of teachers in Chinese vernacular schools, to check on suspicious activities of foreign students, to address the recent spate of suicides and alleged spread of racialism. - The Star

10 proposals to lower house prices

PETALING JAYA: The Finance Ministry, concerned about soaring home prices, has sought the help of the National House Buyers Association (HBA) to find solutions to the problem.

Responding to the request early this month, the HBA has proposed 10 measures to address the problem and, hopefully, bring prices down.

HBA secretary-general Chang Kim Leong said immediate intervention was needed to prevent a “homeless generation” of Malaysians, warning that the country would face a social crisis if the majority of lower and middle income earners did not have access to affordable housing.

He called on the Government to take the lead in developing affordable homes and not leave it to property developers “who are profit-maximising entities”.

One of the measures proposed by the association is to disallow those who bought homes under the affordable housing projects from selling their property, effectively only allowing them to transfer it to their next of kin.

This was to prevent people from trying to make a quick profit, he said yesterday.

The association proposed that the Government unlock its land banks in various locations and give priority to affordable housing projects rather than high-end properties.

“By affordable, we mean between RM150,000 and RM300,000,” said Chang.

“Once a property is purchased, the buyer should not be allowed to sell the property other than transfer it to the next of kin,” he said.

However, there should be a provision to allow the buyer to sell it to another owner after 10 years of acquiring the property or, before that period, to sell the house back to the Government.

Chang said another strategy was to penalise speculators, who played a major role in inflating property prices.

He proposed a higher stamp duty and real property gains tax as well as tighter mortgage rules for those buying a third property and subsequent properties.

“Not only will this discourage speculation, but it will also provide increased revenue for the Government to develop affordable housing,” he said, adding that prices would drop as only real demand would exist in the market.

Chang said the HBA proposed 100% financing only for those buying low or medium-cost homes.

“Those buying high-end property or a third and subsequent property should have limited access to funding,” he added.

Deputy Finance Minister Datuk Donald Lim said the ministry had received HBA's proposals and would look at ways to address the issue. - The Star

豪寓易相出租变酒店业主批当局坐视不理

（槟城17日讯）高级私宅公寓，变相被度假屋业者改为出租公寓（service apartment）经营约8年，尽管曾遭议员拉队上门取缔，不过业者仍继续营业，造成其他单位业主大吐苦水，批地方政府罔顾业主利益，任由财团视法律为无物。
这栋改为出租公寓的私宅公寓，坐落在罗眼律彩虹公寓（Desa Pelangi），业者的活动于去年遭光大区州议员黄伟益揭发，并率领市政局执法单位突袭取缔。虽然曾遭取缔，不过业者仍继续公然营业，将3楼一单位改装为办公室柜台，引起公寓业主怨声四起，但却敢怒不敢言。
价格不逊五星酒店
公寓常出现陌生人频密出入，在公假时更如同星级酒店般出现“客满”现象，一眼望出，公寓停车场停放不少外地注册车牌车辆。据居民消息指出，随上回取缔行动后，业者似乎未收敛，仍如往常接受订房服务，甚至印制宣传单及接受上网订购服务等，宣传单更注明租金，其中最贵单位租金高达550令吉，价格不逊五星级酒店。
是商人及游客首选
彩虹公寓楼高10层，只有66单位，密度低，环境幽美，其内有泳池、健身室及24小时保安服务，再加上距乔治市市区不远，毗邻是卢源来私人专科医院，使它成为游客其中首选，对于毗邻卢源来专科医院求医的外国游客，更是上上选。- 光华

City&Country: Online forum propertywtf creates a buzz

The Internet has changed the way we communicate, interact and learn. It has embedded itself in almost every household, produced new industries, transformed existing ones and become a global cultural phenomenon.
The new generation of consumers and investors, savvy and well read, flock online in search of free information,seeking and demanding articulate answers to their questions. 
With so many turning to the Internet for information, there has been a change in the property purchasing trend. Property websites and forums have been drawing much interest and attention. Online forums that have appeared on the scene in recent years include lowyat.net, pjnet.my, realestate123.com and thinkproperty.com.my. 
However, some of these forums, though popular, are not focused and do not provide answers that are detailed enough for the more savvy investor. With this in mind, two investors decided to start an online forum in July last year, focusing on property investment. They named it propertywtf.com.my.
Although relatively new, the forum has attracted the interest of property buyers and investors seeking information, deals and opportunities for their next investment. 
As at May 15, the forum had garnered 1,465 members and 21,861 posts, covering some 633 topics. The founders are planning to register the forum as a company soon. They have even received a buyout offer from a popular online property website group, which the founders declined to name.
The forum’s founders recently decided to bring together property investors, comprising mainly the forum’s members, to set up an informal “Online Property Investor Network”. It held its first gathering on April 29. 
Another larger event, dubbed OPIN2.0, is being planned for the anniversary of the forum’s launch on July 29. 
City & Country caught up with the two founders of propertywtf.com recently. They want to remain anonymous, preferring to be known as X and Y in line with the nature of the online forum. Members can remain anonymous or not use their real names to protect their privacy, online identity and full-time jobs. Y is a highly qualified professional while X is a businessman.
So, what does WTF stand for? The founders, probably used to the question, chuckle. “I guess we have a cheeky side. Obviously, we wanted a fun and catchy name that would stick. After much discussion, we decided to go with propertywtf mainly because we like the idea of what it stands for: ‘Property — what, where, when to find,” says Y.

Bulk purchasing 
What makes this online forum different is that it offers its members deals — bulk purchases that are obtained directly from the developers — thus eliminating the agents. 
“We noticed a trend [in bulk purchases] picking up in the last two to three years. Being forumers ourselves, we realised that there wasn’t enough focused and quality discussions on property in the other forums, which are basically a convergence of all topics imaginable,” explains Y.
propertywtf.com.my also offers insights into new launches while various stakeholders in the industry, such as lawyers, architects, engineers, bankers and developer representatives, share their expertise and viewpoints. 
With so many parties involved, how do the administrators moderate the site? “Well, we won’t say it is easy to moderate a forum as we don’t want to impede freedom of speech. We just need to remind investors that every project has its pros and cons, and in a forum, we value and encourage open discussion and constructive criticism,” says X. 
In cases where the posts are racist, derogatory or offensive, the administrators do not hesitate to ban the user’s account based on the IP address. The users can also file a complaint against other forumers for spamming or flaming.
So, what’s in it for the forum founders? “Well, for one, we are able to attain deals and offers because of our ties with the developers. Basically, we are facilitating a network of buyers. Unlike marketers, we put our money where our mouth is — we are seasoned investors ourselves. Hence, we have a vested interest in the properties that we feature. By working directly with the developers, we are able to get good rates and better located lots.”
“The bulk purchasing trend is something that is happening and here to stay. If you know there’s a network of investors, join the network la,” X says. He adds, however, that they do occasionally deal and work with the exclusive agents of the developers. 
Groups of investors who met through the forum have gathered in small numbers all over town for teh tarik sessions, which spurred them to organise OPIN. “We found that through networking, some forumers met people who eventually became their mentors. Based on their track records, one can trust the judgement of certain people who are naturally talented at spotting good buys and investing in the right places.”
Forum member Lee, a petite 27-year-old who works at a multinational oil and gas company, claims to have acquired seven houses since she started following online forums. Chan, a middle-aged forumer who works in a biotechnology company, says he has made “quite a few” good homebuying decisions since he started participating in the online forums.

Looking ahead
The founders of propertywtf.com.my say the maiden OPIN event (see sidebar) saw a better-than-expected turnout. 
“We prepared the exact number of seats for 45 confirmed and pre-selected attendees, who consisted of our most active forumers. However, close to 70 turned up. So, looking ahead, we hope to secure a private venue as well as some sponsors.”
As for expansion, “we have been getting traffic from the neighbouring countries, so who knows, we might just expand there”, Y declares. His partner nods, saying that though they rejected a buyout offer from another site, they are open to joint-venture opportunities in the future.



Good turnout at OPIN1.0 

City & Country was invited to the maiden gathering of OPIN at a cosy but bustling coffee house to join the group of forumers who decided to venture out from behind their computer screens on a warm Sunday afternoon. They comprised a mix of wide-eyed yuppies to silver-haired investors.
After a brief introduction to the forum’s website, property investor and director of Platinum Property Ventures Sdn Bhd, Kam Wei Tsung, took the mike.
Kam, who was a speaker at The Edge Investment Forum on Real Estate in 2009, is known for his property investment acumen, having acquired 24 residential properties and RM8.3 million worth of commercial properties within three years.
He shared his personal experience of how he dabbled in property investing before stumbling on the idea and opportunity of bulk purchasing.
The second speaker was the forum’s resident columnist Faizul Ridzuan, who wrote the attention-grabbing book WTF? 23 properties by 30, which is currently on the local bestseller’s lists at MPH and Kinokuniya.
He confidently went through several topics, including trends, opportunities, loopholes and what to do going forward.
The event wrapped up with a preview of an upcoming condominium project, which will be located close to the second Penang bridge. The organisers refused to name the project and its developer. Prices are tentatively at a very affordable RM200,000 to RM300,000.
Also spotted at the OPIN gathering were two developers with projects in Cyberjaya who said they were there as they were interested in understanding and learning more about the new online investing trend.



This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 911, May 21-27, 2012

UDA: Tg Tokong project has a GDV of RM1.8b

JOHOR BARU (June 18): The gross development value (GDV) of the commercial development to be carried out by UDA Holdings Bhd at Kampung Tanjung Tokong, Penang, is expected to reach RM1.8 billion.

Its chairman Datuk Nur Jazlan Mohammad Rahmat said the commercial development on a 22-acre (8.8ha) site would include condominiums and a world-class shopping centre.

"We hope to implement the development as soon as possible after we obtained approval of the 'development order' [DO] and will complete the project in four years," he said after flagging off an education fundraising jogathon here yesterday.

He said UDA Holdings would also build blocks of apartment worth RM165 million to accommodate 1,200 residents of Kampung Tanjung Tokong.

Last Saturday, UDA Holdings signed a settlement agreement with the residents, thus resolving a problem that prolonged for 40 years.

Nur Jazlan, who is Pulai Member of Parliament, said each resident would be given an apartment worth RM120,000.

He said Prime Minister Datuk Seri Najib Razak was expected to attend the ground-breaking ceremony next month.

Meanwhile, Nur Jazlan said UDA Holdings also offered its expertise to involve in the redevelopment project of Johor Baru city.

He said it could be done through the collaboration between UDA Holdings and the state government or other agencies such as Johor Corp, to develop their land in Johor Baru. — Bernama

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Is there a real reprieve in prices?

NOW that we are in the middle of 2012, it is probably a known and accepted fact that the property market is taking a long-awaited breather, after a steep and breathless uphill climb in 2010 and last year.

Prices and rental in a most parts of the Klang Valley have come down. In some hotspots that have seen the steepest price increase the last couple of years, rental and prices have come down marginally since the last quarter of 2011 and this trend has continued until today. It is likely this trend will continue well into the second half of this year.

It is not that there is no longer demand for these properties. There is demand, but the prices have been bidded up to such a degree that potential buyers are beginning to ask themselves if they are over-paying. Some may even ask if there are fundamentals to support such high prices. In short, they have decided to walk away.

Whether they are prepared to over-pay or whether there are fundamentals to support these high prices are two different things. This is because buying a house is or can be an emotional affair.

Some are willing to over-pay because they really like the property, or its location and the amenities that come with it. Or they may be concerned that if they do not buy now, prices may go up further.

So, despite the suspicion that they may be over-paying, they decide to go ahead with the purchase. This is particularly so if they are renting.

As for whether there are fundamentals to support prices that go up, up and up, well often, there isn't. The same infrastructure is there, and the environment has remained status quo. But prices have moved up and buyers wonder what's the rationale? Buyers are beginning to question and that is good.

The secondary market where buyers buy directly from property owners may be a more realistic gauge of the sentiment prevailing in the property market.

There is less speculation in the secondary market. Those who shop for a house in the classifieds would already know the purpose of his purchase. He would more or less know how he is going to finance it because he has to pay for the property in full, upon signing the sales and purchase agreement. He would also have to go about seeking the services of a lawyer, if he does not have one already, and the mortgage loan would also have to be sorted out.

In other words, the outlay would be greater emotionally, financially and physically as there is much running around after a decision is made for a particular property.

It is only in the primary market, where buyers buy directly from the developers, that the speculative element is more evident. Amid the razzmatazz and the party spirit of the moment, a buyer just pays the 10% he is required to and sits back with the availability of today's interest bearing schemes. He need not think too much about what he is going to do with it, or how he is going to finance the purchase until two to three years later. If he does not want to begin his loan repayment, he can sell it.

It is here, therefore, in the primary market, that the speculative element is more evident. Last year, developers had multiple launches. Their intention was to lock in sales while the going was good.

This year, the situation has changed somewhat. There is a lot more caution, both in the secondary and the primary market, as evidenced by less launches by developers, and slower sales in the secondary market. Unlike last year, a developer has to do a lot more marketing and promotion in order to lock in sales now.

Nevertheless, despite the slower sales, there seems to be no let up in the prices as they remain high, with developers justifying their prices with increasing cost of construction.

As we enter the second half of 2012, the worsening crisis in the eurozone will cast some uncertainty over the market, although indirectly. Already, exports for April have contracted, although marginally. This may filter down to the property market.

Those who buy with a clear focus and objective will continue to execute their decision. Those who are more uncertain why they are buying may take a wait-and-see approach, or if they really like a property and are certain of its potential, may just take out the cheque book. - The Star

Deputy news editor Thean Lee Cheng wonders how the Greek election tomorrow will turn out as it may open up a new chapter for the eurozone. We in Malaysia will not be immune to what's happening in Europe.