New developments to share

[whoami]

Aneh fm DBS already said the latest property cooling measures, announced last Friday, have "a lot of teeth" and affect everyone.

http://www.straitstimes.com/premium/money/story/lots-teeth-new-curbs-dbs-chief-20130115

 

[gooddebt]

If you are a foreign investor looking to invest in Asia in 2013 prices are not going down and real estate taxes are going up.

All the major property markets such as Singapore, India, Hong Kong and mainland China are set to make it more costly for foreign buyers. This is because they want to curb rising prices and they blame foreign buyers for pricing local people out of the market.

They are also under pressure to make homes more affordable for local people who, especially in places like Hong Kong, cannot afford the prices currently being paid by overseas buyers.

China has a rash of property taxes designed to favour local buyers but also to prevent rich Chinese from buying large numbers of properties with higher taxes for second and third properties and so on.

Singapore is the latest country to introduce price curbs. The government has just announce an increased property tax for foreign buyers as part of a series of new measures to cool its residential housing market which has seen continued strong demand despite previous efforts to curb prices.

Foreigners and corporates who buy residential property in Singapore will now be subject to an additional buyer's stamp duty (ABSD) of 15% of the purchase price, up from the previous 10%.

The new measures, which it says are temporary, also hit Singapore citizens and those buying a second property will be hit with an ABSD of 7% while people with permanent residency status will pay an additional stamp duty of 5% on their first home purchase.

The ABSD had previously applied to citizens buying their third residential property and permanent residents getting their second.

On top of the additional stamp duty, individuals applying for a second or subsequent housing loan will have to make a minimum cash payment of 25%, up from 10%.

The new measures also see the introduction of a new seller's stamp duty of 5 to 15% for those who buy and then sell industrial properties such as warehouses and factories within three years.

The latest available figures show that Singapore private home prices increased by 1.8% in the fourth quarter of 2012, up from 0.6% in the previous quarter. Resale prices of government-built HDB apartments which are generally bought by Singaporeans, increased by 2.5%, quarter on quarter, the fastest gain in five quarters. Interest rates in Singapore have fallen to near record lows with banks charging as little as 1% per annum on housing loans. And industrial property, prices are now double the levels of three years ago.

Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam said that the new measures are aimed at bringing down prices to avoid a more serious correction in prices further down the road. He added that the new measures are temporary and will be reviewed in future depending on market conditions.

He also said that most citizens buying their first home will not be hurt by the new measures. Some concessions will also be extended to selected groups of buyers, such as married couples with at least one Singaporean spouse who are purchasing their second property so long as they intend to sell their first residential property.

The increased tax might be good news for another Asian property market, Malaysia, if foreign buyers see it as an alternative to high priced Singapore.Meanwhile, Hong Kong also has low interest rates and property prices increased around 20% in 2012. Much of this increase is blamed on rich buyers from the Chinese mainland who accounted for around 20% of sales last year. More price curbing cannot be ruled out.

The latest report from Knight Frank suggests that prices will remain steady in 2013. It points out that last month although the government's tightening measures continued to suppress residential sales volume, home prices remained stable. Despite further measures expected to be announced in the coming Policy Address, supply is still expected to lag behind demand in the short to medium term.

Ray Clancy
Editor Property Wire

 

[Valdez]

O shit... Trouble brewing here

Chamber says Johor Malays poorest due to Iskandar

By Nomy Nozwir

KUALA LUMPUR, Jan 15 — The Malay Chamber of Commerce (DPMM) claimed today Johor Malays are currently the country’s poorest community, a problem it blamed on Iskandar Malaysia.

Its president Datuk Syed Ali Alattas (picture) said Putrajaya’s land privatisation programme and large-scale land sale to foreigners under the project had triggered massive inflation in the state.

This had made it more difficult for the state’s Malay majority, which he described as poor, to cope with the higher cost of living.

“During the 1800s, the Johor Malays were the richest in the country but they are now the poorest. This is caused by foreigners buying up land here (and caused inflation). We can no longer cope with the high cost of living,” he told a press conference here.

“The development of Iskandar is pushing the Malays backwards, making them more marginalised economically,” he said, adding that the economic disparity between the Johor Malays and the non-Malays was one of the key issues raised at its recent congress.

The Iskandar Malaysia project, situated in Nusajaya at the southern tip of Johor, was conceived during the Abdullah administration. It covers 2,217 sq km and is thrice the size of Singapore

Initially seen as competition, a Singapore paper had reported that the Iskandar project had swayed more expatriates into opting to live on this side of the Causeway, drawn by cheaper and bigger homes in Johor, while Malaysians are grappling to find affordable housing.

While Singapore’s expatriates eye the relatively cheaper houses in Malaysia, Malaysians, especially those who have just joined the workforce, complain that they cannot afford to buy houses. The Singapore dollar is worth about 2.5 times more than the Malaysian ringgit.

In the past, conservative Malay leaders had expressed fear that Johor would be swamped by Singaporeans.

Former prime minister Tun Dr Mahathir Mohamad, was also reported to have said that Iskandar would help Singapore expand its sovereignty and “drive” Malays into the “forest”.

But a landmark resolution to the long-standing dispute over Malaysian-owned railway land in Singapore 2010 had led not only to a new era of more cordial relations between the two countries but also several landmark deals including a RM3 billion jointly-developed iconic wellness resort in Iskandar.

Singapore is currently the largest source of investment in Iskandar this year.

According to the Chamber, Malays only own 24,000 from the 500,000 acres land accorded for Iskandar.

Syed Ali said the group is calling on the Najib administration to “revise” its policies on Iskandar by reserving “30 per cent of Nusajaya” for the Malays.

The Chamber also wanted Putrajaya to reserve the land in Iskandar for the Malays instead of “foreigners”.

 

[tigerbear]

The Johor state government has sufficient mechanisms to curb property speculation and does not need additional measures for the moment, said Chairman of the Real Estate and Housing Developers' Association (REHDA) Johor, Koh Moo Hing. The mechanism used by the state government to determine quotas for the various types of property that could be bought by foreigners at present is enough to control speculation activities.

Johor imposes quotas on foreigners purchasing properties at present, such as, being allowed to only buy 20% of the overall total number of two-storey terrace houses and two-storey cluster homes in a specific project.

Foreigners are also allowed to purchase only 30% of the Semi-D homes, bungalows as well as bungalow lots, and 50% of serviced apartments as well as condominiums.

For holiday homes, the quota for foreigners is 50%, commercial buildings (50%) and office space (20%), aimed at attracting foreign investments.

Last week, it reported that the state government was re-evaluating the property purchase policy by foreigners to control real estate speculation activities. The state government was also studying the need to raise the minimum property purchase price for foreigners from RM500,000 at present to RM1m. (Bernama)

 

[tigerbear]

The Johor state government has sufficient mechanisms to curb property speculation and does not need additional measures for the moment, said Chairman of the Real Estate and Housing Developers' Association (REHDA) Johor, Koh Moo Hing. The mechanism used by the state government to determine quotas for the various types of property that could be bought by foreigners at present is enough to control speculation activities.

Johor imposes quotas on foreigners purchasing properties at present, such as, being allowed to only buy 20% of the overall total number of two-storey terrace houses and two-storey cluster homes in a specific project.

Foreigners are also allowed to purchase only 30% of the Semi-D homes, bungalows as well as bungalow lots, and 50% of serviced apartments as well as condominiums.

For holiday homes, the quota for foreigners is 50%, commercial buildings (50%) and office space (20%), aimed at attracting foreign investments.

Last week, it reported that the state government was re-evaluating the property purchase policy by foreigners to control real estate speculation activities. The state government was also studying the need to raise the minimum property purchase price for foreigners from RM500,000 at present to RM1m. (Bernama)

If i am not mistaken ,For East ledang , there is no restriction foreign ownership , same as Medini projects....Any idea how about Horizon Hills and other development? Any restriction?

 

[FHBH12]

The Johor state government has sufficient mechanisms to curb property speculation and does not need additional measures for the moment, said Chairman of the Real Estate and Housing Developers' Association (REHDA) Johor, Koh Moo Hing. The mechanism used by the state government to determine quotas for the various types of property that could be bought by foreigners at present is enough to control speculation activities.

Johor imposes quotas on foreigners purchasing properties at present, such as, being allowed to only buy 20% of the overall total number of two-storey terrace houses and two-storey cluster homes in a specific project.

Foreigners are also allowed to purchase only 30% of the Semi-D homes, bungalows as well as bungalow lots, and 50% of serviced apartments as well as condominiums.

For holiday homes, the quota for foreigners is 50%, commercial buildings (50%) and office space (20%), aimed at attracting foreign investments.

Last week, it reported that the state government was re-evaluating the property purchase policy by foreigners to control real estate speculation activities. The state government was also studying the need to raise the minimum property purchase price for foreigners from RM500,000 at present to RM1m. (Bernama)

The developers make use of the loop-hole in allowing conversion from bumi to international lots after 1 year+ of launch, so they are not afraid of pricing the houses higher after every precinct/release. Most of the new G&G landed are bought by local Chinese and overseas investors, so there are hardly any Malays. I was hoping for a bit more variety of races like Singapore.

 

[whoami]

Most of the new G&G landed are bought by local Chinese and overseas investors, so there are hardly any Malays. I was hoping for a bit more variety of races like Singapore.

Very true. Juz look at BI. Very very few malays. Handful..

 

[gooddebt]

if they follow strictly the foreign quota , wont it means lesser units for investors and lead to lesser supply ? Demand will outstrip supply , leading to price increase for 'foreign' units ?

 

[Mingchye]

if they follow strictly the foreign quota , wont it means lesser units for investors and lead to lesser supply ? Demand will outstrip supply , leading to price increase for 'foreign' units ?

No, this just means that foreigners who missed out on buying direct from developer will have to buy from the resale market where there is no foreigner quota.

I think the rakyat kpkb because they are priced out from the primary market (ie buy direct from developer). Dont think they will kpkb if they make a big load of money from selling to foreigner. Thats why I say the state govt need to go into the root of the problem and resolve the affordable housing problem in the primary market. Dont just hastily apply a floor limit for ALL properties.

 

[gooddebt]

"No, this just means that foreigners who missed out on buying direct from developer will have to buy from the resale market where there is no foreigner quota.

I think the rakyat kpkb because they are priced out from the primary market (ie buy direct from developer). Dont think they will kpkb if they make a big load of money from selling to foreigner. Thats why I say the state govt need to go into the root of the problem and resolve the affordable housing problem in the primary market. Dont just hastily apply a floor limit for ALL properties. "

ya, thats what I meant. price will increase for existing units as the demand will outstrip supply. So Huat for those who bot in early b4 the curb

 

[Jetstream]

Hongkong developer launches its first project in Johor Baru

16/1/13

PUBLIC-LISTED Hong Kong-based property developer New World Development Co Ltd has chosen Johor Baru for its first residential property development project in Malaysia.

It formed a joint-venture company Taipan Eagle Sdn Bhd with Luen Yum Development (M) Sdn Bhd, where the former is undertaking the on-going project.

The gated and guarded project, named New World Garden, comprises of 96 units of high-end residential properties on a 4.85ha site along Jalan Masai Baru in Mukim Plentong.

The properties are four units of three-storey bungalows priced from RM4mil and 92 units of three-storey semi-detached villas with a price tag starting from RM2.4mil.

The project also includes a sprawling 40,000 sq ft club house with amenities for residents such as swimming pools, gymnasium, barbeque pits and function rooms.

“We decided to come to Johor Baru in view of the positive development taking place in Iskandar Malaysia and the good growth prospects,” said Luen Yuen director Michael Tham.

He said this when met after the launch of the project on Friday which was attended by senior management staff from New World Development led by executive director and joint general manager Gary Chen Guanzhan.

Tham said the project has a gross development value of RM240mil and expected to be completed in the second-quarter of 2014.

http://www.starproperty.my/index.ph...per-launches-its-first-project-in-johor-baru/

 

[addistor]

Any buyer at setia cascadia? I'm interested in that development and wonder any bros/sis had booked phase 1?
Comments highly welcome

 

[goldenbet]

I would really like to know what is so special about Matex apart from location. You have to pay to use swimming pool, gym, spa. Even Carpark is not free. It is like staying in a HDB in Orchard and no way near luxsry. Even the house plans are pathetic, kitchen is so small. I compared Matex with Paragon Suites and KSL, the only point they fall back is location. How much would it matter when developer would have shuttle service.

 

[cascadia]

I would really like to know what is so special about Matex apart from location. You have to pay to use swimming pool, gym, spa. Even Carpark is not free. It is like staying in a HDB in Orchard and no way near luxsry. Even the house plans are pathetic, kitchen is so small. I compared Matex with Paragon Suites and KSL, the only point they fall back is location. How much would it matter when developer would have shuttle service.

Yes exactly, if me I would rather stay landed with no facilities at least no need to worry the maintenance. Facilities are good but they are also hard to maintain and costly to maintain. it is important to note that all these management will pass on to residents themselves, this requires extremely high cooperation from everyone which is not easy also.... As time goes by, all these facilities will eventually spoiled especially like gym equipment, u must know most ppl are inconsiderate and won't take care them....

In long run, once the apartment/condo turns old and have cock up management basically it no longer has value anymore.....

 

[D Lim]

Re: Investing in a condo near CIQ

I would rather go for new condos given that the price of orchid view is not that cheap. Over 400k.

Read the above thread with interest. came across a interesting post recommending orchid view.

Check out the views of Zhang. Pretty passionate chap and sounds reasonable. Any alternate views? Want to make sure I'm not missing any obvious alternate angle here.

forums.salary.sg/investments-net-worth/2136-what-you-investing-9.html#post32477

 

[Walker]

Additional property curbs could hurt Iskandar: UDA
Get Daily Property News in Malaysia, News Powered by PropertyGuru Malaysia

Jan 17, 2013 - PropertyGuru.com.my

By Farah Wahida:

More conditions on foreign investments flowing into Iskandar Malaysia would deter the entry of overseas investors into the region, said Datuk Nur Jazlan Mohamed, Chairman of UDA Holdings Bhd.

“Previously we could impose various conditions (on foreign investment), but now we are competing with Thailand, Indonesia, the Philippines, even Cambodia and Myanmar.”

“If there are too many conditions, they (foreign investors) can go elsewhere.”

Last Tuesday, the Malay Chamber of Commerce (DPMM) also asked the government to set aside 30 percent of projects in Nusajaya at Iskandar Malaysia to Malay firms.

DPMM President Syed Ali Alattas claimed that the Malays in Johor are struggling to cope with the rising cost of living as foreigners are snapping up properties in the state, causing inflation.

However, Nur Jazlan pointed out that foreign investors are really helping the local economy, creating jobs for locals and raising their incomes. From 2006 to 2012, Iskandar Malaysia has attracted RM105 billion in investments.

The value of properties owned by Malays in Iskandar Malaysia is also rising thanks to the influx of foreign investors. On the other hand, those struggling to find a home could apply for a unit under 1Malaysia People's Housing Scheme (PR1MA), he added.



Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email [email protected]

 

[Valdez]

Bye bye 7 flag


'No more theme parks for Iskandar'


Themed Attractions and Resorts Sdn Bhd, Khazanah Nasional's recreation and tourism outfit, has no plans now to increase
the number of theme parks at Iskandar Malaysia.

Its Chief Development Officer Muhammad Zainal Ashikin said currently the company was devoting full attention to run Legoland Malaysia and Puteri Harbour Family theme parks at the economic corridor.

The RM750 million Legoland Malaysia was opened on Sept 15 last year while the RM115 million Puteri Harbour Family Theme Park began receiving visitors in December last year.

"Our hands are quite full right now with Legoland Malaysia and Puteri Harbour Family Theme Park. We've also announced our plans to open marine and water theme parks at the Desaru holiday resort.


"Currently, we are focusing full attention to run the existing theme parks at Iskandar Malaysia and are working on our plans to develop marine and water theme parks in Desaru."We've no plans as yet to open a third theme park at Iskandar Malaysia," he
told Bernama.

The Ocean Quest Marine Theme Park and Air Ocean Splash Water Park at the Desaru holiday resort are slated to be opened to the public in 2015 or 2016.

Themed Attractions and Resorts is expected to open the Legoland Water Theme Park and Legoland Hotel, to be located adjacent to the Legoland Malaysia Theme Park, this year and next year, respectively.

Last year, the company opened the Kidzania Theme Park in Kuala Lumpur and intends to open Kidzania Singapore next year.

Since their opening, Legoland Malaysia Theme Park and Puteri Harbour Family Theme Park, which boasts the Sanrio Hello Kitty Town, the first outside Japan, have wooed thousands of visitors from within and outside the country. -- Bernama

 

[Valdez]

S'pore curbs boon to developer with Johor landbank

Jan 21, 2013 - PropertyGuru.com.my
By Farah Wahida:

Malaysian property developers with a sizeable landbank in Johor will benefit from the recent cooling measures introduced in Singapore, according to RHB Research. These include Mulpha International Bhd, KSL Holdings Bhd, Eastern & Oriental Bhd and Sunway Bhd.

In particular, UEM Land Holdings Bhd is well-positioned to capture the “Singapore money” given its 9,000-acre landbank and strong support from Khazanah Nasional Bhd, the investment holding arm of the Malaysian government.

Other factors that will encourage relocation/expansion into Johor include the strong Singapore dollar, the high cost of doing business in the city-state and the low interest rates in Malaysia.

Aside from that, more positive news are expected from Iskandar, Johor. Recently, the media reported that some Singapore players are keen to participate in the development of Johor’s central business district development (CBD). While UEM Land may not directly benefit, the potential project will have a great impact on Iskandar’s property market.

Furthermore, Nusajaya in Johor has been successfully developed into a liveable area, with announcements of cross-border projects at Gerbang Nusajaya.

Specifically, the construction of the integrated tech park at Gerbang Nusajaya will start at end-2013 or early-2014. Apart from boosting the area’s population and economic activity, the project is also expected to increase UEM Land’s earnings in the coming financial periods.

 

[Valdez]

Iskandar propels property outlook

Jan 21, 2013 - PropertyGuru.com.my
By Farah Wahida:

Despite a general cautious outlook for the country’s real estate market, property developers with sizeable projects in Iskandar Malaysia are expected to buoy the sector, reported The Star.

According to UOB Kay Hian Malaysia research, investments in Iskandar remain robust and the market momentum may boost the share prices of laggards that should have benefitted from the region.

Laggards include Dijaya whose target price stands at RM1.41, Sunway (RM2.70), as well as non-rated firms such as Kimlun and E&O Bhd.

Recently, unit prices of firms with exposure to Iskandar including KSL Holdings, Tebrau Teguh, UEM Land and Mah Sing Group saw major gains, noted the research house.

To-date, share prices of Tebrau Teguh rose 20.6 percent, KSL 19.6 percent, followed by Mah Sing and UEM Land at 9.7 percent and 6.5 percent, respectively.

The significant gains could have been spurred by the likelihood of more Singapore-Malaysia bilateral deals, and the acquisition of Johor land by China-owned companies at record-high prices.

Consequently, the research unit maintain market weight on the property sector, as “its current mid-cycle valuation already reflects the rollover of continued cautious investment sentiment towards property.”

This is primarily attributed to the contagion effect from the implementation of tighter measures such as tiered real property gains tax (RPGT) and lending based on net income rather than gross income.

Moreover, there are talks that the Johor government could raise the minimum price of properties that can be bought by overseas buyers, from RM500,000 to RM1 million, added the research unit.

 

[Walker]

S'pore curbs boon to developer with Johor landbank

Jan 21, 2013 - PropertyGuru.com.my
By Farah Wahida:

Malaysian property developers .......

Other factors that will encourage relocation/expansion into Johor include the strong Singapore dollar, the high cost of doing business in the city-state
and the low interest rates in Malaysia.

.........

I have heard this being said a few times... the low interest rate in Malaysia.
I do not understand this...
The best housing fixed interest rate in Singapore is about 1.25% now compared to 4.1% in Malaysia.
That is more than 3 times more!
So how is that considered low interest rate?

Can anyone enlighten me on this?