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3工程月杪竣工 敦林大道即将告别“塞车”

槟城4日讯）敦林苍祐大道3项提升工程将竣工，峇六拜工业区上班族在10月起，即可摆脱塞车之苦。

敦林大道于今年初进行提升工程，主要是疏解该大道在繁忙时间出现的交通阻塞状况。历经半年后，负责这项工程的怡保工程置地公司北马区总经理杜进良向《光华日报》证实，工程将于9月杪全面竣工。

他说，这3项提升工程包括：从牛汝莪高架公路及敦林苍祐大道交界处开启回转路线、加宽敦林大道峇都蛮路段（N-PARK前）的双向车道，从原本4个车道，增加至6个车道，以及重建该处的行人天桥。

“我们将于本周六（8日）移交 U 转路线的权限给大马大道局，由当局来决定几时启用该 U 转路线。承包商已安装上指示牌及完成美化工程，只要大道局开放，公众就可使用。” - 光华

Nomad unit buys Penang hotel

KUALA LUMPUR (Sept 5): Nomad Group Bhd's wholly-owned unit has proposed to pay RM25 million for 100% of Bella Varia Sdn Bhd, which undertakes hotel operations and rents commercial space in Grand Paradise Hotel in George Town, Penang.

"The proposed acquisition represents an opportunity for the group to increase its hospitality assets base and to expand its geographical location to include Penang," the company said in a statement on Tuesday, adding that the purchase price took into consideration the "comparable market value of similar properties".

Grand Paradise Hotel — a nine- storey two-star hotel with 96 rooms along Jalan Macalister — is built on a 13,278 sq ft land with a net book value of RM11.9 million, the company said.

Nomad's unit Nomad Properties Sdn Bhd will assume the RM9.04 million outstanding loan owned by Bella Varia to Bank Perusahaan. There are no other material financial commitments apart from the purchase price and renovation costs which are yet to be determined.

Bella Varia made a net loss of RM98,932 for the year ended March 31, 2011 and its net assets stood at RM2.64 million. The sellers are Datuk Pardip Kumar Kukreja Gurbachan Singh and Datuk Abdul Halim Abdullah, who own 40% and 60% of Bella Varia respectively.

The deal, expected to be completed by Oct 1, is not expected to have a material impact on earnings for the year ending Dec 31, 2012 but could boost future earnings, said Nomad. The deal will be funded with a mix of internal cash and borrowings.

This article appeared in The Edge Financial Daily on Sept 5, 2012.

Resilient property market expected

Developers optimistic of H2 but not sure about 2013

PETALING JAYA: The Real Estate and Housing Developers' Association Malaysia (Rehda) expects the housing and property market to plateau in the second half of 2012, but will remain resilient.

According to a survey Rehda conducted, property developers are optimistic of the second half and more respondents plan to launch projects.

The survey is based on a sample size of 180 companies, out of the 1,003 Rehda members.

Property developers are less optimistic of the first half of 2013 due to certain factors, including the outcomes of the 13th general elections and Budget 2013. The current global economic situation also contributes some uncertainty.

The results of the survey show that the property market in the first half of this year is still driven by the domestic market, despite beliefs that foreigners are buying more local properties. Last year, only 2% of total properties transacted were from foreigners.

Rehda president Datuk Seri Michael Yam said the Government should review building less low-cost homes. In 2011, 1.04 million units out if the total 4.51 million total residential stock were low-cost homes.

“As Malaysia moves towards striving to reach developed nation status by 2020, the Government should review if there is a need for so many low-cost homes,” Yam said.

Rehda national treasurer N.K. Tong said: “Perhaps the Government should consider implementing a limitation to low-cost homes like what Singapore has done with the HDB (Housing and Development Board) flats.”

HDB flat owners-to-be are not allowed to own any other properties in Singapore, or in any other part of the world. Tong said if such a plan was implemented in Malaysia, there would be less abuse of these properties, unfairness caused to developers and to a larger extent the people.

“I'm more concerned with the supply factor. It is moving downwards due to the shortage of prime land and rising building costs. Come 2015, if the Government is serious about implementing the build-and-sell plan, the supply (of houses) will reduce by about 80%,” Rehda past president Datuk Ng Seing Liong said.

His main concern if the plan was implemented was that property prices would continue to trend upwards due to the supply and demand equilibrium.

“In terms of the property sector, we must look at a long-term scenario,” he said in regards to future plan implementations.

Rehda public relations, communications and publication committee member Che King Tow said the Government usually owned the best-located properties.

He said it would benefit the public if the Government could consider releasing its land in high-density areas such as Jalan Duta and Selangor Golf Course in the upcoming budget.

“Those are suitable prime land for mass housing. They can cut down on ownership of cars, and use public transport instead,” he said.

Yam also urged the Government to establish an automatic-release mechanism to enable the release of unsold bumiputera units. Although Rehda has not complained about allocating a portion for bumiputera buyers, the unsold properties are affecting the developers.

“More projects are having unreleased unsold bumiputera lots which impact the developer's cash flow. An auto-release mechanism should be put in place to automatically release the unsold properties after a stipulated time to prevent this,” he said. - The Star

Property price rise not due to foreigners, says MPI

KUALA LUMPUR (Sept 4): It is only a perception that foreigners influence the rising property prices in Malaysia, as they are involved in a very small percentage of property transactions, says the Malaysia Property Incorporated (MPI).

General manager Veena Loh Geok Mooi said foreigners owned only two% of total properties transacted last year in Malaysia, although in certain states the percentage was higher, at 25% in Johor and 11.5% in Kuala Lumpur.

"In Johor, property prices appreciated 0.6% over the last 10 years while prices in Kuala Lumpur appreciated 5.5% over the same period.

"In almost all states in Malaysia except Sarawak, foreigners can only purchase properties above RM500,000 and in the past eight years, there has been little price appreciation of properties above RM500,000," she told a media briefing here on Tuesday.

Loh said over a 10-year period, the highest house price appreciation was in states with low population of foreigners — namely, Sabah, Terengganu, Perlis and Pahang.

She said overall for Malaysia, prices started rising after 2009, going up 6.7% and 9.9% in 2010 and 2011 respectively.

"We should not actually label the foreign buyers as foreigners. The main foreign buyers are actually Malaysia My Second Home buyers, expatriates and diasporas.

"The large percentage of foreign owners from Johor are likely to be the Malaysian diaspora residing in Singapore," she said.

Loh said higher property prices have very little to do with foreigners but instead are due to such factors as supply, shortage of prime land, rising building material costs, all-time low lending rate since 2006 as well as speculative activities in the local property industry. — Bernama

Rehda's wishlist for upcoming Budget

PETALING JAYA (Sept 4): The Real Estate & Housing Developers' Association Malaysia's (Rehda) wish list for the upcoming budget include a firmer stand on policy and incentives for foreign and first time buyers, according to president Datuk Seri Michael KC Yam. 

"Among the things we are hoping for in the budget include leaving the real gains property tax (RGPT) rate as is. And following on from the report that foreign buyers do not increase property prices, we are hoping for a reduction in stamp duty for foreign purchasers and first time home owners," said Yam.

He was speaking to reporters at the Rehda media briefing for the property industry survey for the first half of 2012.

Yam also remarked on the government's plan to make all the properties from 2015 onwards to be purchased on the "build-then-sell" model, stating that it would cut the supply of properties by about 50%.

"We are suggesting that it not be the only method that properties are sold by, and [we should] simply let the buyer decide how they would choose to buy. In the end, it would have an impact on 140 industries," said Yam.

Yam also commented on the perception that foreign buyers would drive up housing on prices, stating that only around 2% of homeowners nationwide are foreigners.

"In addition, foreigners are only interested in high-end properties, which would not be as much of interest to the man on the street," said Yam. - The Edgeproperty

High Court rules in favour of developer

GEORGE TOWN: A resident of Kampung Boundary 5 in Air Itam has to move out as the High Court has upheld a Sessions Court’s ruling that developer Bersatu Stabil Sdn Bhd is the registered proprietor of the village land.

Judicial Commissioner Mohd Amin Firdaus Abdullah yesterday dismissed the appeal by Surjan Singh against the lower court’s summary judgment on vacant possession.

On June 7, Sessions judge Zainol Rashid Hussain ruled that Bersatu Stabil is the registered land pro- prietor and entitled to the vacant possession as the company purchased the 1.6ha land at a cost of RM5mil.

Zainol Rashid had also dismissed Surjan’s application to obtain a stay of execution pending court proceedings.

Surjan then filed appeals against the two rulings on June 14.

Amin Firdaus dismissed both appeals and ordered him to pay costs amounting to RM6,000.

Counsel Karin Lim and Tan Wei Ceat represented Bersatu Stabil while Surjan, who was not present at the court yesterday, was represented by Hardeep Singh Jessy and Harcharan Singh.

Outside the courtroom, Tan said 90% of the 44 house owners at the village had since accepted compensation from the developer and moved out while the rest wanted to stay there.

It was reported that the residents who refused to vacate the village had filed suits separately, claiming that the ownership of their land was unlawfully transferred.

They had claimed that the land, which had been physically divided into 46 separate plots, was rented out to them since the 1960s until the respective plots were separately sold to them at different times. - The Star

London luxury home market risks price crash

LONDON: Developers rushing to build top-quality London homes to cash in on strong overseas demand are in danger of being stung by a price crash as they flood the market, property consultancy EC Harris said.

Over 15,000 homes in developments worth more than 38 billion pounds ($60 billion) are due for completion in London's most expensive neighbourhoods in the next ten years, a 70 percent jump on last year, an EC Harris report said on Monday.

The total floor area covers almost 20 million square feet - equivalent to the size of the London Olympic park - and includes properties in upmarket Mayfair, the City of London financial district and the south bank of the river Thames.

"Developers are racing to get first to site because they don't want to miss out on the boom that's happening," said Mark Farmer, head of residential at EC Harris. "There is a danger that if all these schemes happen that you'll have a massive oversupply."

Prices for luxury homes have surged in recent years after economic turmoil in Europe and political uprisings across North Africa drove investors to the relative safety of central London property. Signs of a slowdown appeared after the UK government said in March it would clamp down on tax avoidance by overseas buyers of homes costing more than 2 million pounds.

Prices for the best central London homes rose 1.8 percent in the three months to August, the weakest quarterly growth since November 2010, property consultant Knight Frank said on Monday.

About 4,000 high-end homes are scheduled to be built in 2016 alone, an eight-fold increase on the average number built in London each year. The risk of over-building may be tempered by a tight supply in development finance, Farmer said.

Recent entrants to the market include offices and shops developer British Land, which said in July it would redevelop a block in Mayfair into luxury flats, and Malaysian developers SP Setia and Sime Darby, who plan to build over 3,000 homes at Battersea Power Station.

Such developers have been described as "late to the party" by some residential players. A May report from Development Securities warned that London luxury home prices could halve if the euro zone broke up.

Other risks include further devaluation of the euro, which would make London property look more expensive, and changes to the UK planning system that make it easier to convert offices to homes and add to the pipeline, EC Harris said.

"The reality is that no one knows what the conditions will be in five or ten years," he said. - Reuters

Upbeat views on Malaysian property

Substantial inflows and outflows of investments expected for this year

GEORGE TOWN: Despite the global economic crisis, property investments coming into the country and going to overseas this year are expected to increase substantially.

The recently introduced 10% stamp duty for foreigners buying properties in Singapore has increased the attraction of Malaysia as a property investment destination.

Property investments flowing to Melbourne, Australia, are expected to increase between 15% to 18% this year from RM125mil in 2011, thanks to new housing loans for the Australian market recently introduced byMalayan Banking Bhd (Maybank).

Property Talk International Sdn Bhd managing director Steven Cheahsaid that foreigners showing interest in Malaysian properties had increased significantly this year, compared with the last three years, due to the recent 10% stamp duty introduced in Singapore for foreigners buying homes.

Tang: ‘Investors from China are big time property purchasers in Singapore.’

“The other reason is that Kuala Lumpur still remain as one of the few South-East Asian cities with attractive property prices.

“Compared to Jakarta, the price for a prime residential in Kuala Lumpur is about 15% lower.

“The buyers are from Indonesia and China and they show preference for Iskandar, Johor Baru and Kuala Lumpur.

“Indonesians prefer Iskandar because it is close to Singapore,” he said.

The Indonesians and China buyers generally go for properties priced between RM600,000 to RM1.5mil in Iskandar and Kuala Lumpur, while in Penang they go for RM1mil above homes, according to Cheah.

The additional direct flights from Jakarta to Penang by Air Asia had also fueled the interest from Indonesia for Malaysian properties, Cheah added.

This year, Property Talk expects to sell about RM55mil worth of properties located in Johor, Kuala Lumpur, and Penang, compared with over RM20mil achieved for 2011.

“Over the past three months, we have sold over RM25mil worth of properties, comprising 35 residential homes located in Kuala Lumpur and Iskandar, Johor Baru.

“We expect to sell another RM30mil worth of properties, comprising 30 to 40 homes, from Iskandar, Kuala Lumpur, and Penang via three more property exhibitions in Jakarta jointly organised by Malaysia Property Incand private developers before the year ends,” he said.

An aerial view of Melbourne. Property investments flowing to the Australia’s city are expected to increase between 15% to 18% this year.

On investments from Malaysia to Australia, Cheah said the loan interest from Maybank was between 4% to 5% per annum compared with 5.7% to 6% per annum by Australian banks.

“This is why we can expect more Malaysians to take up the loan to invest in Melbourne, Australia this year,” Cheah said, adding that the Maybank housing loan was for Melbourne only.

According to Cheah, Melbourne is the top investment destination for Malaysian property investment funds.

“This is because many Malaysians have relatives who have migrated to Melbourne, where you can find a variety of Malaysian food restaurants.

“According to the latest research from Australian Property Monitors (APM), over the last five years, Melbourne has been the standout performer among the major capital cities for house price growth, with prices increasing almost 30% in just 15 months,” he added.

Meanwhile, Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng said Henry Butcher had recently set up a property show gallery in Beijing, following the imposition of the 10% stamp duty by the Singapore government for foreigners buying properties in Singapore.

“The gallery, set up two to three months ago, showcases residential properties from Klang Valley, Malacca, and Penang.

“Investors from China are big time property purchasers in Singapore.

“With the 10% stamp duty introduced, Malaysian developers are now trying to attract them over.

“We still need to do a lot of education work in China to promote Malaysia as a property destination, as the awareness is still lacking,” he said.

Tang added there were many enquiries from China investors to buy vacant land to develop residential projects in Malaysia.

“We hope they will undertake development in Malaysia and promote the properties in China.

“This will help to increase more awareness for Malaysian properties in China,” he said.

According to Tang, the global financial crisis which erupted in 2008 and 2009 saw foreign interest for local properties dropped significantly. ”In 2010, we see a return of foreign interest, but the volume and value of property transactions involving foreigners still have not not recovered to anywhere near its peak prior to 2008.

“We believe the pace of investment from overseas will remain flat against last year.

“Besides tapping into traditional sources like Singapore, Hong Kong and Indonesia, Malaysian developers are moving into markets such as South Korea and China.

“China is a vast market and if Malaysian developers are able to educate the investors on the attraction of Malaysian real estate, we may see a surge in foreign interest,” Tang added.

Henry Butcher Marketing director for international marketing Jazmine Goh meanwhile said the global economic crisis had created favourable conditions and opportunities for Malaysians to invest in overseas real estate.

“The economic slowdown in Britain has caused property prices to plunge and coupled with the drop in the value of the pound sterling against the ringgit, properties in the United Kingdom have become more affordable and within reach of middle income Malaysians.

“The mortgage defaults in the United States have also resulted in a lot of opportunities to pick up properties foreclosed by the banks at a fraction of the original price.

“Of course, the fear of the prolonged debt woes in Europe has at the same time resulted in a more cautious attitude being adopted by investors,” Goh said.

The popular investment destinations for Malaysians are Australia, mainly Melbourne and to a lesser extent, Sydney, Perth, Brisbane and Gold Coast as well as London, and Singapore, and more recently, the United States, according to Goh. - The Star

Zhongshan and state govt sign MoU

THE Penang state government has signed a memorandum of understanding with Zhongshan in China to establish a friendly-city relationship.

Chief Minister Lim Guan Eng said both parties conducted an in-depth exchange of views during his friendly visit to Zhongshan last year.

“With the signing of this memorandum, I hope that both parties will maintain this relationship as a platform to gain new achievements in trade, cultural links and tourism.”

CPPCC Zhongshan Municipal Committee chairman Qiu Shuhong, who was accompanied by a delegation of 10 people, signed the memorandum with Lim. - The Star