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Local property market steady; demand not affected by global factors

KUALA LUMPUR: The property market may be affected by the global economic factors but local demand has not been dampened, according to some property developers.

Low Yat Group sales and marketing executive Sean Saw said there was interest among Malaysians especially the younger adults to purchase property although the economy may be holding some of them back.

“I gather that even though the property sector may be quieter due to external factors, but there are still transactions. Newly launched projects continue to be sold out, surprisingly,” he said after a briefing for exhibitors at the Star Property Fair 2012.

He added that the market for sub-sale may be slower but the overall market was expected to be back in full swing next year.

Saw said the fair would be a great avenue to raise awareness among homebuyers about Low Yat's high-end projects, especially its Tribeca serviced apartments to be launched this quarter.

LBS Bina Group Bhd's managing director Datuk Lim Hock San also concurred noted that despite the economic uncertainty, there was still demand in the local property market especially the affordable homes.

“This can be seen in our recently launched Royal Ivory double-storey double storey cluster link semi-detached development where over 300 units were fully sold in three months,” he said.

LBS which is participating again in the Star Property Fair after a hiatus last year said that it was back with exciting projects.

Senior public relations executive Cleosun Ng said after the first exhibitors' briefing: “It has been an exciting year for us. We have many projects to share with the homebuyers and this fair is the right platform for us.”

She added that the fair would serve as a branding channel for LBS to convey its lifestyle living range of products to the homebuyers.

Bukit Gambang Resort City developer Sentoria Group Bhd would also be exhibiting, promoting its investment development within the Bukit Gambang resort city that include commercial and residential projects.

Sales and marketing senior executive Cony Tan said that the fair would be a great ground for Sentoria to get more exposure and reach new customer as it used to only reach out to existing customers through its buyer-get-buyer scheme.

Bucking the trend: Exhibitors attending the briefing. Some property developers say newly launched projects continue to be sold out.

“All the while we invite existing customers to our events but since launching our villas, we are trying to market our products through different channels,” she said, adding that Sentoria has started participating in roadshows and exhibitions in the second half of the year.

“The customers who walk in to (the Star Property Fair) would be very potential buyers. There are good chances of growing our customer database and getting feedback on our products,” she said of what to expect at the fair.

The Star Property Fair, in its fourth year rolling, would be held from Nov 30 to Dec 2 at Kuala Lumpur Convention Centre. - The Star

It makes sense to go green

Amounts spent on eco-friendly building materials continues to rise

THE spending on green building materials for projects registered for Green Building Index (GBI) certification in Penang for the next two years is expected to hit around RM60mil to RM120mil, as there are 15 commercial and resident projects waiting for GBI certification approval.

Penang Master Builders & Building Materials Dealers Association (PMBBMDA) president Lim Kai Seng said the total construction costs for the 15 projects is approximately RM1bil to RM1.5bil.

“To be eligible for GBI certification, the spending for the green building materials, energy-efficient appliances, and energy-saving designs for a project needs about 6% to 8% (of the project’s cost).

“As the cost of constructing energy-saving design is minimal, the bulk of the spending will be for green building materials.

“Currently there are 10 projects in Penang approved for GBI certification. Of the 10, two have been completed, while the remaining eight will require around RM48mil to RM64mil of green building materials,” Kai Seng said.

On the market: Signature Products Sdn Bhd business development executive Calvin Foo showing its range of green timber products.

Some of the projects in Penang that have been approved for GBI certification include IJM Land’s projects such as The Light Point, The Light Collection, and SP Setia’s Setia Green and Brooks Residence.

The completed projects with GBI certification are Hotel Penaga and The Light Linear.

Developers, spending the required amount of 6% to 8 % of the construction cost to fulfil the GBI requirement for certification, need only pay RM5 per sq ft and RM7 per sq ft as developmental charges for residential and commercial properties respectively.

Developers who do meet GBI requirements have to pay development charges of RM15 per sq ft and RM20 per sq ft for residential and commercial projects respectively.

Some of the popular green building materials and energy-saving products include slabstones made from recycled glass, Forest Steward Council-certified (FSC) timber products, solar panels and solar water heaters.

Kai Seng said there are also many residential and commercial projects in Penang using green building materials that are not applying for GBI certification.

“If these projects are included, the actual spending on green building materials will be even higher.

In demand: Imported green timber products now popularly used in new develpoment projects.

“This year the value of construction projects, from both the private and government sectors, is expected to be around RM4.6bil.

“At least 6% of the RM4.6bil will be spent on green building materials and energy-saving products,” Kai Seng said.

Malaysian Institute of Architects (Penang Chapter) chairman Lawrence Lim said green building practices could reduce a building’s operating costs by as much as 9%, increase building values by 7.5% and realise a 6.6% increase in return on investment.

“So, green buildings don’t just make sound ecological and environmental sense — they make sound economic sense too,” Lawrence added.

Lawrence said since the inception of GBI certification three years ago, some 325 projects or over 26mil sq ft of floor space had been registered for GBI certification throughout Malaysia.

“Out of the 325 projects, 86 received GBI certification while the rest are pending certification.

“Penang is listed third in the nation in terms of the number of projects registered with GBI, after Kuala Lumpur and Selangor and it is just ahead of Putrajaya.

“In Penang, 10 projects have obtained GBI certification, while 15 more are pending certification,” Lawrence said.

Signature Products Sdn Bhd managing director Datuk Finn Choong said that the demand for the company’s FSC timber products is on the rise, as the present generation of home owners become more green conscious.

“Our FSC timber products, sold under the Accoya brand name, from Holland are made of timber sourced from forest owners who adhere strictly to FSC sustainable practices,” he said.

Choong said the company, with a 20-year history in the timber-flooring business, started to import green building materials last year when it saw more residential projects in Penang applying for GBI certification.

“So far this year, we have sold three 40-ft containers worth of Accoya timber products with a net value of RM500,000,” he said.

Going places: G-Solar business development manager Regine Choo Hooi Chin showing the solar panels that the company installs.

The timber products are in demand for the construction of clubhouses and the exteriors of projects to provide insulation from heat.

Next year, Choong said they are expecting to sell at least 10 40-ft containers with a net value of RM2mil.

“The demand is also coming from individual home owners who prefer the use of green building material for their property,” he said.

G-Solar Sdn Bhd business development manager Regine Choo Hooi Chin said the demand for the installation of solar panels in residential houses is gradually on the rise, since the implementation of feed-in tariffs last December.

“So far this year, we have secured orders 50 landed residential projects in the northern region.

“We have installed solar panels for 10 of these projects.

“The cost to install a small solar panel for a terraced property is around RM40,000.

“We expect the spending for solar panels in the northern region to be around RM10mil this year,” Choo said.

Besides solar panels, Choo said there is growing demand for rain-harvesting system in high-rise and landed properties, which could be installed for RM5,000, to collect rain water. - The Star

南华旅社旁半世纪咖啡摊让路 乔治市再折损活古迹

（槟城28日讯）乔治市世遗区一家逾半世纪历史陋巷咖啡摊面对“让路”指示，造成入遗后的乔治市或再折损另一活古迹（living heritage），少一个散发海南咖啡味的“非物质文化遗产”。

在乔治市世遗核心区牛干冬的南华旅社在荒废多时后被槟城钟灵毕业生骆锦地以7百多万令吉成功收购，使建筑重获新生，然而“依附”在南华旅社右翼墙面旁的一家传统式冯姓咖啡摊口据称或面对业主指示清场，从其墙面撤出，造成乔治市或再坐失一家老茶室摊口。

在乔治市入遗后不少的老建筑水涨船高，面对本地及外来买家进场购置老房子，屋价不断攀升，不少租户及商号即在原有产业转手后搬离，而在南华旅社建筑旁的这家冯氏海南人开创的茶室摊即面对产业易主将打造为精品酒店及餐饮店后，据称已面对业主口头指示让路。

上述茶室摊在原地卖咖啡茶水已超过半世纪，除了依附墙面，该长约50尺狭小摊口架立的路口人称“刘富仔巷”，小巷口衔接至隔壁卖菜街，尽管摊口似乎侵占半个巷口，然而却无阻当地车辆出入，对于老手更已是驾轻就熟，反而是一些外客会担心车辆出入不得。光华

Budget 2013: Curbing speculative activities in property market

KUALA LUMPUR: The government has proposed a review of the Real Property Gains Tax (RPGT) to curb the speculative activities in the real property market. The review will come into effect Jan 1, 2013.

Under the proposed RPGT rates, for properties disposed within two years, the new rates are 15% for companies, individuals, including citizens and permanent residents, and non-citizens.

"Real property owners who are not profit motivated and are not involved in speculation will not be renewed by the review of RPGT rates, under the proposals," according to the Budget 2013.

For individuals, both citizens and permanent residents, they are eligible for RPGT exemptions from the sale of one residential property once in a lifetime.

The RPGT exemption of up to RM10,000 or 10% of the net gains, whichever is higher, from the disposal of real property by individuals.

There is also the RPGT exemption on gains from disposal of real property between husband and wife, parents and children, grandparents and grandchildren.

In addition, RPGT is only imposed on net gains after deducting all costs involved such as the purchase price, renovation cost, legal fees and stamp duty. - The Star

RPGT hike won’t have significant impact, say analysts

THE hike in the real property gains tax (RPGT) is not expected to have a significant impact on the property market, according to property consultants and analysts.

Under Budget 2013, the Government has proposed the RPGT from the disposal of properties made within a period not exceeding two years from the date of purchase will be taxed at the rate of 15% and at 10% for disposal of property within a period of two to five years.

This represents an increase from the present RPGT regime, where RPGT of 10% is applied to properties held and disposed of within two years, and a rate of 5% was maintained for properties sold within the third, fourth and fifth years after purchase.

For property disposed of after five years from the date of acquisition, RPGT is not applicable.

Property consultancy CB Richard Ellis (M) Sdn Bhd executive director Paul Khong said the RPGT hike would have some impact on property sub-sales, particularly in the higher end and luxury segments.

“We would have preferred the RPGT to remain status quo,” said Khong.

Property analysts also said the RPGT increase was not a re-rating catalyst for the sector.

“In fact, we expect an upwards correction for property stocks next week because they were sold down in the past two weeks, due to anticipation of tougher measures for the sector in Budget 2013,” an analyst said.

HwangDBS Vickers Research analyst Yee Mei Hui said the impact on the property industry from the budget was minimal. “Sales have softened in recent months although we believe they will pick up,” she said.

Yee said the RPGT increase was not as drastic as most people expected while there was no stamp duty increase, despite what the market expected.

“Overall, not as bad for the industry,” she added.

Valuer Elvin Fernandez from the Khong & Jaafar group of companies said the marginal increase in RPGT showed continuity on the part of the Government to reign in speculation.

“This marginal increase will work well with the Bank Negara current measures, the latest being to base lending on net income, instead of gross income,” Fernandez said.

Meanwhile, the Chartered Tax Institute of Malaysia said it welcomed the measures undertaken by the Government to address the needs of first-time house buyers by relaxing the conditions for raising finance, and curbing speculation through the RPGT hike.

In a statement, property consultancy C.H. Williams Talhar & Wong managing director Foo Gee Jen noted that affordable housing had been the hot pre-budget topic and “true to expectations, the Government has attempted to address the concerns of the people.”

However, Foo pointed out that without proper planning, there could be a mismatch of demand versus location, if the housing projects were located in areas without adequate infrastructure and facilities.

Commenting on the RPGT hike, MKH Bhd group managing director Datuk Eddy Chen Lok Loi said: “It is obvious that the Government is aware that although there is speculation, it does not warrant a drastic RPGT regime.”

Mah Sing Group Bhd managing director and chief executive Tan Sri Leong Hoy Kum said the marginal increase in RPGT would have less impact on developers as new projects’ construction period was usually two to three years. - The Star

RPGT increased to 10%

Under Budget 2012, it was proposed that a real property gains tax (RPGT) of 10% be applied to properties held and disposed of within two years.

Meanwhile a rate of 5% will be maintained for properties sold within the third, fourth and fifth years after purchase.

The current RPGT, imposed after Budget 2010, is 5% for all properties sold within the first five years of purchase.

However, consultants and analysts said the 5% increase in the RPGT, for units sold within the first two years after purchase, would have little impact on speculative activities in the property market and escalating house prices.

Property consultant CB Richard Ellis (M) Sdn Bhd executive director Paul Khong said speculative activities in the property market would only be slightly curbed by the RPGT increase.

“This latest RPGT increase is a small negative point to investors but not detrimental. Investors will be more cautious in doing their profit calculations.”

Khong hoped that there would be no more negative changes in the RPGT quantum within the next few years, and pointed out that many investors would be rushing to liquidate their positions prior to Jan 1, 2012 in order to enjoy the current 5% RPGT this year.

HwangDBS Investment Management Bhd head of equities Gan Eng Peng also agreed that the latest RPGT increase was not an effective measure to curb speculative activities.

“To curb speculation, the RPGT should be higher than 10%,” Gan said.

Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng also did not think that the latest RPGT increase would have a major impact on property sales.

“The Government is sending a message that it is serious in preventing an asset bubble and wants the property market to be more orderly. If the market is hot, an RPGT increase to 10%, for the first two years after purchase, will not really curb speculation,” said Tang.

A property analyst said the quantum of the RPGT increase was quite gentle.

“It is obvious that the Government does not want to dampen the property market. The marginal increase in RPGT is considered to be friendly and accomodative towards growth in the property sector,” he said.

Another research analyst concurred, and said the latest RPGT increase would help to slightly “cool off” demand in the property market.

“It would make investors think twice before “flipping” their properties within a short period after buying them,” she said.

“Our outlook for the property market next year is that of flat demand year-on-year. Rather than this gentle RPGT increase, investors should look at the central bank’s policy on liquidity and ease of getting housing loans.”

KPMG Tax Services Sdn Bhd executive director Tai Lai Kok opined that the Government’s move was fair.

“Any upside in tax revenue from the RPGT increase would be marginal. So, rather than to increase tax revenue, the Government’s move is very focused towards curbing speculation in the property market,” said Tai.

Meanwhile, House Buyers Association (HBA) vice-president Brig-Gen (R) Datuk Goh Seng Toh said the latest RPGT increase was negligible.

“We think there will hardly be any effect in curbing escalating house prices. Certain developers do not allow buyers to sell within the first two years, when the house is still under construction. Also, many buyers only sell after the first two years, when their properties are completed.”

Goh added that the Government should not have a “one size fits all” RPGT rate. “The RPGT should be applied differently based on the type and price of the property.”

Meanwhile, Budget 2012 also proposed to increase the maximum price ceiling for houses under the My First Home (MFH) scheme to RM400,000.

Also, this improved scheme will be available to house buyers through the joint loans of both husband and wife beginning January 2012. Under the present MFH scheme, houses are priced within the RM100,000 to RM220,000 range.

The scheme is opened to private sector employees aged between 18-years old and 35 years old; drawing a monthly salary of not more than RM3,000. Property consultants said the Government’s objectives under Budget 2012 were clearly to curb excessive property speculation and boost house ownership for lower-income groups.

Goh said while the improved MFH scheme would made it easier for those who qualify to obtain loans for properties priced at RM400,000 and below, it might also add pressure on the disposable household income of lower-income groups.

“Our household debt-to-income ratio is already high. Also, this might make it easier for property developers to increase the prices of their units from a lower price range to RM400,000 and buyers might actually end up paying more.”

Another property analyst pointed out that developers in the Klang Valley would still find it tough to cater to the RM400,000 and below price segment due to land and construction costs. “Nowadays, there are not many property launches at this (level of) pricing in the Klang Valley,” the analyst noted.

However, Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum welcomed the improved MFH scheme and said that property prices in reasonably well-located townships are currently in this price range.

“For example, we intend to offer beginner homes priced from RM390,000 onwards in our latest township M Residence@Rawang in the first half of 2012. For this price, buyers can get a 22ft x 70ft home with a 2,000 sq ft built-up in a location that is less than 30 minutes from Kuala Lumpur,” said Leong. - The Star

Good news for housing sector

STAKEHOLDERS in the property sector have lauded the housing allocations in Budget 2013.

Raine and Horne Malaysia director Michael Geh (pic) said the allocations and incentives struck a good balance between the rakyat’s need for affordable housing and the industry players’ interests.

“The proposed real property gains tax (RPGT) from the disposal of properties (made within a period not exceeding two years from the date of purchase) at the rate of between 10% and 15% won’t negatively impact the property market.

“This shows that the government acknowledges the property industry’s importance in driving the economy by being sensitive to stakeholder input.

“At the same time, the budget addresses the housing needs of the rakyat,” he said.

Michael Geh

Geh said the RM1.9bil allocation to build 123,000 affordable housing units by PR1MA, Syarikat Perumahan Nasional Berhad and Jabatan Perumahan Negara should be done fairly in all states.

“It’s good that affordable housing is a priority but I hope the allocation to build the homes is fairly distributed nationwide,” he said.

He also lauded the 50% stamp duty exemption on the instrument of transfer agreements and loan agreements for the purchase of the first residential property of up to RM350,000.

He said the RM100mil allocation to the Ministry of Housing and Local Government to revive abandoned housing projects coupled with tax incentives to encourage the involvement of the private sector was a positive move for the industry.

Penang Master Builders & Building Materials Dealers Association president Lim Kai Seng agreed.

He, however, urged the Government to ensure that the Budget was “effectively implemented”.

“The implementation is very important to ensure that the incentives and allocations are channelled properly.

“Otherwise, we will not see results no matter how good Budget 2013 is,” he said. - The Star

拒富者霸槟岛 原区重建留住市民

对中下阶级者来说，形容得夸张些，看槟州房产业行情就像在看恐怖片情节一样，当你知道得越多可能就越可怕，一旦谜底揭开时可能死期已到。谁敢说2014年后中下阶级者被迁离外州，及无法在槟岛置业的说法一点都不靠谱？

续较早前，本报摘录了槟州研究所（Penang Institute）所作的槟州产业房屋研究报告，推出“房事把脉”系列报道后，本报再推出“房事把脉2.0”，访问两名“房事”主角，即槟州研究所城市规划及环境研究主任史托麦丹奴，及槟州房屋委员会主席黄汉伟为槟州“房事”做剖析。

史托麦丹奴接受《光华日报》记者专访时坦白，槟州的房产资料和数据显示确实潜伏中下阶级者无法在槟岛置业的危机，因此槟州研究所要趁槟房产业未到达无法挽留的地步前介入，避免中低收入者真被“驱逐出境”。

他坦言，这也是他们害怕会发生的事（中低收入者无法在槟岛置业）。他强调，所撰写的报告，是反映出槟城的产业真实情况，绝对不是猜测，而是根据现有的房产资料和数据探讨槟州房产业的未来趋势。- 光华

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Penang Real Estate | Penang Property | Penang Properties: Seri Tanjung Pinang 3S Semi Dee For Rent (SD2)

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