Caveat on Prima homes

KUALA LUMPUR: The Government is unlikely to allow 1Malaysia Housing Programme (Prima) homes to be re-sold at market prices after the 10-year moratorium.

Syarikat Perumahan Negara Bhd (SPNB) managing director Prof Datuk Dr Kamarul Rashdan Salleh said the Government might buy back the units if owners decide to sell them after the tenth year.

“They (owners) cannot sell it in the open market. I think the Government will enforce that,” he said after the “Affordable Housing: A Fact or Fiction?” panel discussion during the 3rd Annual Affordable Housing Projects conference on Wednesday.

Dr Kamarul said the Government was still contemplating all options.

On Monday, Housing and Local Government Minister Datuk Seri Chor Chee Heung said that the Government was using unused federal land to build 42,078 affordable homes for families who earned less than RM5,000.

The units, which cost between RM150,000 and RM300,000, would be built in 20 locations in the Klang Valley, Rawang and Seremban.

He also said that while the owners would be given the units at a lower price, they would not enjoy the appreciation of prices as compared to those buying non-subsidised properties.

The discussion moderator, Australia's Housing Choices international adviser and former chief executive officer Michael Lennon said there was a need for a clear national policy.

In a question-and-answer session, Surbana International Consultants Pte Ltd director (Strategy and Branding) Ng Beng Eng said that governments should spearhead effective intervention efforts for affordable homes and the private sector could later be roped in. - The Star

Finger-pointing reaches new heights

The Penang Chief Minister says he has not approved a single development project above 76m but his top city official says 19 such projects were approved after 2008. Who is telling the truth?

PENANG island is having a bumper season for “designer durians” and tourists and locals alike have been making their way up the hills of Balik Pulau to feast on the fruit. It has been a sweet season indeed for farmers of the thorny fruit.

But elsewhere on the island, it is the season for another kind of thorns, namely, the thorny issue of development and its side effects.

The hot-button issue in Penang today is too much development, for want of a better word. This is quite an irony because one of the reasons why Tan Sri Dr Koh Tsu Koon was shown the door in 2008 was because Penang folk thought there was not enough development in Penang.

As the well-connected developer Tan Sri Tan Kok Ping had claimed of Dr Koh during an interview, “18 years and nothing to show”, by way of saying that Dr Koh could have done more for developers in Penang.

Dr Koh was not known to be pro-developer and a couple of big developers were so cheesed off with his policies they left Penang and returned only after Lim Guan Eng came to power.

It is a different situation today. Entire neighbourhoods have been uncomfortable about the pace and type of development taking place. Guan Eng, like it or not, has acquired a reputation as being too pro-developer.

“In recent years and more so in recent months, there has been a spate of protests from angry residents in various parts of Penang island over what is happening in their communities.

“This is not an isolated incident. It is quite widespread,” said city councillor Dr Lim Mah Hui.

The curious thing is that the protests are taking place in upscale areas like Pulau Tikus, Tanjung Bungah and Sungai Ara. Middle-class folk are coming out with home-made placards to protest against projects that are affecting the quality of life in their neighbourhoods.

Last week, residents in Pulau Tikus protested against plans for a 27-storey commercial block where the maximum height is only six storeys. The residents were totally appalled because Pulau Tikus is already plagued by traffic jams and parking woes. They bombarded their assemblyman Koay Teng Hai with all sorts of questions.

All these, said Mah Hui, are signals that “something is not quite right”.

In recent days, pamphlets of “before” and “after” Google Earth images of the famed Batu Ferringhi coastline have been flying about. The pictures show how green hills have become concrete and tarmac. The “after” images were dated around 2010, resulting in DAP claiming that the images were digitally tampered with. The war over development has escalated.

Guan Eng has, as usual, blamed the previous government for the state of affairs. He has repeatedly said that his administration has not approved a single project above 76m except for green areas like a park. He repeated all that last week at a press conference alongside Penang Island City Council (MPPP) president Patahiyah Ismail.

Patahiyah, on her part, released details of 37 projects above 76m that were approved between 1985 and March 2008 under Dr Koh’s government – yes, Dr Koh was guilty as charged.

However, Patahiyah also handed out documents showing that between April 2008 and May 2012, a total of 19 projects on land above 76m were given planning approval by the MPPP; that would fall squarely under Guan Eng’s tenure.

It left many reporters scratching their heads because the Chief Minister and Patahiyah were saying opposite things about the same matter. Guan Eng said there was no approval of projects above 76m after 2008, but Patahiyah said 19 projects were approved.

They had contradicted each other at the same press conference and they seem to have gotten away with it! It was pretty amazing.

To add to this, Ong Eu Soon, a social activist often quoted on development issues in Penang, has disputed Guan Eng’s claim that his government has not approved a single development that is above 76m.

Ong did his own investigation and he has insisted that a high-rise condominium project in the Air Itam area was approved in 2009 and it is sitting well over 76m above sea level. The project is on a beautiful hill known as Bukit Hijau and is currently under construction.

According to Ong, the project, listed under the reference number of MPPP/OSC/PB(1963)/09, was approved on April 30, 2009. The developer then applied to amend the plan from a 29-storey apartment project to 38 storeys. The amendment got the green light from MPPP on Oct 14, 2009.

“The project is definitely more than 76m high because the completed project on the slope below was classified as above 76m. The completed project was approved by the Barisan Nasional government but the new one was approved by Guan Eng’s government.

“I live within walking distance of the two projects. Guan Eng should stop saying he has not approved any development higher than 76m because this is just one case. I have more information on this type of projects that were approved after March 2008,” said Ong who also contributes articles to Malaysian Insider and Malaysiakini.

It has been all too convenient for Guan Eng to blame the previous government for everything that goes wrong in Penang. After four years in power, Guan Eng should stop pointing and blaming and start looking at his own administration.

He is the chairman of two of the most powerful committees in the state, namely, the State Planning Committee and the State Land Committee. He should provide some answers about his MPPP president’s confirmation that 19 projects above 76m were approved after 2008.

Governing Penang, as many politicians have learnt, is like opening a durian. It is a delicious fruit but its thorns can hurt. It has to be handled with care. - The Star

Bank Negara expected to keep interest rate steady at 3%

PETALING JAYA: Bank Negara is expected to keep the overnight rate policy (OPR) unchanged at 3% at its monetary policy committee meeting scheduled today as the domestic economy is still resilient enough to face external headwinds from the eurozone.

Bank Islam Research said Bank Negara might possibly choose to keep the OPR unchanged at 3% at this juncture.

“The threat to growth prospects has intensified but not collapsed and there are signs of resilience in domestic demand.

“Furthermore, there appears to be some relief, albeit possibly short-term, in financial markets after European Union (EU) leaders took steps to solve the fiscal debt crisis and concerns over risks of financial imbalances may also nudge Bank Negara to lean toward keeping the monetary policy unchanged over the immediate-term,” it said in a report yesterday.

Nevertheless, should Bank Negara unexpectedly lower the OPR as a pre-emptive measure against downside risk to global growth, Bank Islam expected policymakers to move at a moderate and measured pace and a reduction of more than 25 basis points (bps) in the OPR to below 2.75% was not envisaged.

Malaysia Rating Corp Bhd also did not foresee Bank Negara undertaking such a step in the near term due to the respectable growth performance in first quarter of this year. Athough the economy might continue to moderate in the near term, it should not be sufficient to induce the central bank to rush into a more accommodative stance.

“In addition, policymakers will likely be extra cautious about fiddling with the OPR as there is limited pass-through from short-term rates to longer-term borrowing rates and thus overall economic activity.

“Also, an overly accommodative monetary policy is inconsistent with Bank Negara efforts to contain expansion in already overstretched household balance sheets in the economy and the capacity utilisation rate in the manufacturing sector has continued to be above its median level,” it said in an economic research report.

Citi Investment Research also expected the OPR to remain at 3% for the rest of 2012, even though the July statement could strike a more dovish tone.

“Bank Negara governor has reiterated recently that interest rates remain appropriate' as the domestic economy continues to hold up.

“Inflation concerns have taken a backseat for now, as May headline consumer price index inflation fell further to 1.7% year-on-year on falling transport prices, though core inflation (ex food and transport) also ticked down.

“Nonetheless lingering pipeline pressures on core remain, especially if domestic demand picks up in the second half of theyear on the back of pre-election fiscal spending. Growth will have to slow much more sharply, with a material loss of jobs and/or contraction in credit, before concerns household debt are overcome and rate cuts are serious consideration,” it said. - The Star

Landowners say no to land acquisition

BALIK PULAU: Landowners in Kampung Genting are urging the state government to reassess its plans to acquire some 40ha plot of land for the construction of a university for women here.

Kampung Genting Village Development and Security Committee (JKKK) chairman Rosman Long said they were all for the development of educational institution in the state but it should not be at the expense of the local residents.

“This is the only land that we inherited from our family. If the state goes ahead with the land acquisition, our livelihood will be affected,” said Rosman, who led more than 50 people to protest over the issue in front of Masjid Jamek Kampung Genting yesterday.

He added that the landowners had received notices from the state secretary’s office on June 29 informing them about the land acquisition by the state for the construction of the Asian Women Leadership University (AWLU).

According to the letter, the proposal was already approved by the Deputy Prime Minister Tan Sri Muhyiddin Yassin, who is also the Education Minister.

However, Pulau Betong assemblyman Muhammad Farid Saad said there was no proposal for a public university approved by the Ministry of Higher Education in Balik Pulau so far.

“From my latest check, the project was only approved under EPP,” said Farid, adding that if any proposal for a higher learning institution was approved there, he would be aware of it.

The EPP is part of the new 21 Economic Transformation Programme projects announced by Prime Minister Datuk Seri Najib Tun Razak.

Furthermore, Farid said AWLU was not considered as a public university as it was funded by a private organisation.

“Therefore, I question the validity of the notices sent by the SUK office,” added Farid.

Nevertheless, Farid said the state government should reconsider their plans as more than 20 families would be affected if the university was built on their land.

“Why don’t they move it to another piece of land which is unoccupied, such as Pondok Upeh and several other plots of land on the mainland?” asked Farid.

It is learnt that the Chief Minister Lim Guan Eng will hold a press conference on the issue today. - The Star

Luxury stands tall

THE towering icon of luxury, Setia V Residences, is set to transform the Gurney Drive skyline and redefine urban living with its exclusive selection of spacious, luxury condos in the sky.

Nestled on one of the last remaining parcels of land along the fa-mous waterfront in Penang, the RM550mil project by SP Setia Bhd will feature two stylish towers of 48 and 43 storeys, housing 166 units with built-up areas from 241.5sq m (2,600 sq ft) to 650.3sq m (7,000 sq ft).

It is set to be the state’s tallest residential building.

Incorporating lush landscaping and water features, it is the epitome of modern luxury.

The company’s property north deputy general manager Khoo Teck Chong said units are priced from RM2.7mil onwards, and each comes with a sizable balcony and a dip pool.

“There will be an acre of facilities and amenities spreading over an 11-storey podium block.

“They include a sky deck and lounge, infinity pool, barbeque areas, sky gardens, gymnasium, double-volume badminton and squash courts, games room, community room, dance studio and sauna,” he said.

Integrated plan: Khoo and sales and marketing manager Susie Loh discussing a point over the scale model of Setua Tri-Angle.

“One floor is dedicated for children, with indoor and outdoor playrooms, and wading pool.

“The development will also incorporate two existing heritage buildings, which will be preserved and refurbished,” he said in an interview.

Security is ensured with an integrated alarm and CCTV system, as well as card-only access at lobbies and lifts. The building’s foundations are also touted to able to withstand tsunamis and earthquake vibrations up to 6.8 on the Richter scale.

The renowned developer will also showcase the upcoming Setia Tri-Angle, an integrated lifestyle hub at the Setia Pearl Island enclave of Sungai Ara. A mixed residential and commercial development, it comprises 255 units of apartments and 34 units of retail/office space.

Residential units come in sizes ranging from 120.7sq m (1,300 sq ft) to 195sq m (2,100 sq ft), and priced between RM575,000 and RM1,012,000.

They have been well-received thus far, with nearly 80% of the non-bumi units sold since its recent launching. The two to four-storey retail shop lots have built-up areas ranging from 278sq m (3,000 sq ft) to 557.4sq m (6,000 sq ft), with price tags between RM1.95mil to RM3.6mil. The entire RM265mil project is set for completion in 2015.

Nearby, 35 units of Pearl Villas are currently being built on Setia Pearl Island’s last landed enclave.

Set on elevated ground, the three and a half-storey units afford gorgeous views of Bayan Lepas and Bayan Baru.

The units, each equipped with private pools and lifts, have built up areas of 603.8sq m (6,500 sq ft) and priced at RM2.98mil.

“We have designed it using the contemporary zero-lot concept, whereby the main structure is moved to one side, thus maximising space on the other,” he pointed out.

Over at Setia Greens in Sungai Ara, the terrace units have been fully sold out, with only bumiputra units left. The company is thus rolling up the second element of the phase, 18 semi-detached, three-storey units with built-up areas of 292.5sq m (3,149 sq ft) to 330sq m (3,553 sq ft).

“They will encircle a park with water feature. Open your back door, and a tranquil setting awaits you,” Khoo said of the units, priced at RM1.65mil.

During The Star Property Fair 2012, the company is offering its Setia Packages, which include developer interest-bearing, free legal fees and stamp duty on SPA and loan documents and 0% interest free instalment plan up to 36 months for Maybank credit card holders. This promotion is subject to terms and conditions.

For further enquiries, please call Setia Sales Gallery at 04-6412255.

Touted as Malaysia’s premier showcase for stylish living, the four-day extravaganza will be held at Gurney Plaza and the adjoining G Hotel from July 12 to July 15.

Organised by The Star for the 10th year, the fair will be open to the public from 10am to 10pm daily. Admission is free.

To date, 50 exhibitors, including financial institutions and investment companies, have confirmed their participation.

Among the major players are IJM Land, SP Setia Group, Mah Sing Properties, Sunway Berhad, Ivory Properties Group, DNP Land, BSG Property, Ideal Group, Bukit Kiara Properties, Andaman Property, Henry Butcher, KPWG International, Magna Putih, Province Valley and Tambun Indah Land.

This year’s new faces include Elite Forward, Sunrise Manner, Solid Tribute (Asia Green Group), GSD Land, Quantum Metro Deve-lopment, Zetapark Development, East West One Consortium, PJD Eastern Land, Airmas Management, Property Talk, Avenue Properties and Popular Realty.

For contest buffs, three tablets and other attractive prizes will be won daily.

IJM Land is the official sponsor for the contest while Hong Leong Bank is the sponsor for the talks and forums.

For details, call Shir Mein (016-4420085), Hafidz (017-7091987) or Maggie 04-6473388 ext 3023. - The Star

Kumpulan Jetson in JV to build 33 condominiums in Penang

KUALA LUMPUR: Kumpulan Jetson Bhd is teaming up with Fortress Effect Sdn Bhd to undertake a luxury residential development project in Penang, comprising of 33 high-rise condominiums.

Kumpulan Jetson said on Tuesday Fortress Effect was nominated by China's Everbright International Construction Engineering Corporation to be the co-developer in the project.

Everbright's unit Everbright International Engineering Sdn Bhd will take part in the project on a joint venture basis.

Kumpulan Jetson's entitlement under the proposed joint development would be 30% of the gross development value and Fortress Effect's entitlement 70% of the GDV.

The parties agreed that Everbright International Engineering would be appointed the designated contractor to undertake the construction and completion of the project. - The Star

CIMB TrustCapital Advisors buys more Aussie property

KUALA LUMPUR: CIMB TrustCapital Advisors (CIMB-TCA), as manager of the CIMB TrustCapital Australian Office Fund No.1 (CIMB-TCA AOF1), has announced the acquisition of 150 Charlotte Street, Brisbane from the Stockland Trust for A$56mil (RM180mil).

CIMB-TCA is a joint venture between CIMB Real Estate Sdn Bhd and Singapore-based TrustCapital Advisors Pte Ltd. CIMB-TCA AOF1 is a unique Asian-based fund established with the objective of investing in high grade commercial office buildings in the key cities of Australia.

150 Charlotte Street is in Brisbane’s central business district and has just been fully refurbished to a PCA A-Grade standard.

It consists of 18 storeys of office space, and with the upgrades, it is an energy-efficient building which targets a 4.5-star National Australian Built Environment Rating System and a five-star Green Star as-built rating.

Under a Development and Lease Procurement Agreement, the Walker Corp will give five years of rent support for the property that would provide CIMB-TCA AOF1 a guaranteed initial yield of 8.7% on a fully-leased basis in the first year.

The guarantee also provides for annual increments of 4% per annum for the next five years. Several floors of the property are already leased to Energex, the Australian Department of Foreign Affairs and Trade andWalker Corp.

There are also many other potential tenants showing strong interest given the shortage of contiguous office space available for lease within the Brisbane CBD.

This transaction is CIMB-TCA AOF1’s fourth acquisition in Australia since it entered the market in early 2011. – Bernama

Mah Sing upbeat on Penang projects

GEORGE TOWN: Mah Sing Group Bhd's projects in Penang is expected to generate about RM325mil or 13% of the projected RM2.5bil sales for 2012, compared with RM70mil or 3% of the RM2.2bil sales for 2011.

The key contributors from Penang included the Southbay Plaza and Legenda@Southbay, group chief operating officer Teh Heng Chong said at Mah Sing's “Realising Dreams Property Showcase” held in conjunction with the group's 18th anniversary celebration in Penang recently.

The event showcased 11 projects that it was currently undertaking nationwide.

“The Legenda@Southbay has generated about RM40mil since January, while the Southbay Plaza has generated RM80mil since May.

Teh (right) and Mah Sing executive director Lim Kiu Hock with a model of Southbay Plaza.

“The other project that we expect to generate the remainder this year is the first phase of the Ferringhi Residence in Batu Ferringhi.

“Pending approval, we plan to launch about RM180mil worth of low-rise condominium villas in July 2012,” Teh said.

He said Mah Sing would focus on residential properties priced below RM1mil in Kuala Lumpur, Johor, and Penang. “At present, about 70% of our launches are in this price segment, which comprises mainly small serviced residences and linked homes.”

Teh said: “We are also continuing to develop gated and guarded residential properties priced above RM1mil in good location, which is about 30% of the group's launches for 2012.”

He said the Klang Valley would still make up the bulk of the group's sales target, as it had 28 projects there.

Penang was also an important market as its contribution had risen to 13% from 3% in 2011, he added. “We are looking now for an over 100-acre site in Seberang Prai for a township development.”

Teh said he was positive on the outlook for the property market in Penang as the most of the buyers of Mah Sing's properties are largely Penangites. “Our foreign customers come from Singapore, Indonesia, and Hong Kong. - The Star

HDB flat prices up again in Q2

SINGAPORE: Resale HDB flat prices have inched upwards yet again, this time by 1.3% in the second quarter of this year, according to the Housing Board’s flash estimates released on Monday.

This resurgence comes on the back of a downward trend in the two previous quarters.

The percentage increase in the fourth quarter of last year, and the first quarter of this year were 1.7% and 0.6% respectively.

A more detailed release, said the HDB, would be out on July 27.

Upward swing: The Punggol Residences HDB BTO apartment blocks under construction This resurgence in prices comes on the back of a downward trend in the two previous quarters. – The Straits Times/ Asian News Network

The agency has committed to offer 25,000 Build-To-Order flats this year, and has launched more than 15,000 flats in the first quarter alone.

There will be 5,200 more flats launched this month, and will be in areas such as Bedok, Bukit Merah, Choa Chu Kang, Clementi, Geylang and Punggol.

On the private homes front, estimates released by the Urban Redevelopment Authority (URA) on Monday showed that prices have risen by 0.4% in the second quarter of this year.

Non-landed private home prices increased by 0.6%, while prices for properties outside the central region went up by a more moderate 0.4%.

There was no change in the prices in the rest of the central region.

The latest price increase is a reversal of last quarter’s price decrease of 0.1% , the first quarterly price fall since Q2 of 2009.

More detailed data will be revealed on July 27 when URA releases the full second quarter real estate statistics. – The Straits Times/Asian News Network

State offers new site for relocation of Rumah Hijau folk

BUTTERWORTH: The state government has identified a piece of land for the construction of replacement flat units for squatter families staying in the Rumah Hijau longhouses in Mak Mandin.

Chief Minister Lim Guan Eng said the 0.83ha (2.06 acre) land, belonging to the state, was located on Jalan Mak Mandin 5, which was about 100 metres away from the Rumah Hijau longhouses.

He said the state accepted a suggestion made by the Kampung Baru Rumah Hijau Bagan Residents’ Association to pick the particular plot of land, after a discussion with its committee members last week.

At present, the piece of land is occupied by three residential units, three workshops and a transport company depot.

Lim said the state would work out something for them.

“We hope the Federal Government will quickly approve a grant for the construction of affordable housing units there.

“We have written to the National Housing Department, giving our assurance to deliver vacant possession of the piece of land,” he said after visiting the proposed site for the replacement housing units here yesterday.

Lim said 350 houses could be built on the piece of land for the over 300 families who originally stayed in the longhouses.

Association chairman Sin Seang Kwang thanked Lim for fulfilling his promise to find a piece of land for them, adding that he would do his part to convince the federal authorities to release funds to construct the housing units.

Barisan Nasional’s Bagan parliamentary constituency coordinator David Chua said he would do the needful to help the residents get the money to build the housing units.

“I will meet with officials from the Housing and Local Government Ministry to quickly draw up the necessary design and plans for the housing units.

“Perhaps, if they can add another 30 units, it would be good as it could be given to some of the residents from the low-cost flat block in Ampang Jajar, who want to return here,” he said.

Chua reminded the squatters that they had no locus standi to demand for replacement housing units.

He stressed that this was a special case which should not be used as a precedent when handling other squatter relocation cases. - The Star