Property News

[FHBH12]

Home prices to increase 6.2% with GST
Mar 20, 2015

Property prices will likely increase by 6.2 percent once the goods and services tax (GST) is implemented on 1 April as certain building materials are taxed under the regime, said the Real Estate and Housing Developers’ Association Malaysia (Rehda).

“94 percent of the survey’s respondents are very worried over the GST’s impact on overall business costs,” said Rehda president Datuk Seri Fateh Iskandar Mohamed Mansor at the launch of its’ property industry survey results for 2H 2014, noting that GST is one of the key issues presently faced by the property sector.

Other equally important issues are financing for buyers and challenges involving the utility service providers as well as local authorities.

To illustrate how serious things are, Iskandar revealed that launches of commercial and residential properties for 2H 2014 fell 81.6 percent and 62.9 percent respectively from 1H 2014.

“Most distressing are first-time buyers wanting but (being) unable to purchase affordable housing.”

In fact, loan rejections over sales climbed seven percent from 2013 to 2014, said Iskandar.

Meanwhile, issues with utility service providers are on ensuring proper access to water, sewage and electricity for their new projects, he said.

Moreover, high development charges, inconsistent policies/guidelines, slow approval processes by local authorities such as town councils only compound matters.

“The government on a state and federal level ought to engage the private sector in addressing these issues effectively, in particular to increase the purchasing power of Malaysians,” urged Iskandar.

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

http://www.propertyguru.com.my/property-news/2015/3/88326/home-prices-to-increase-6-2-with-gst

 

[sgtsk]

Singapore was born lucky in a very strategic position, coupled with a naturally deep and storm free harbour.
Having the biggest oil refinery in the world at her doorstep also helps.
Her status as the regional shipping hub and entreport is well established, well connected and most important, very well managed.
For trading and international shipping businesses, the most important is turnaround time and onward connection.
Container ships berthing into SG can unload almost immediately and leave the port within a very short time and goods then transferred to feeder ships or to warehouse almost clockwork like.
Not too long ago, MY had tried very hard to upstage SG in every ways, hoping to snatch some business away or better still, replace SG's status as the regional hub, both shipping and aviation!
They spent billions$$$ to aggressively expanded Port Klang and the other 2 ports in JB and also build a the new KLIA and later the KLIA2.
It didn't work, despite all kinds of incentives including cheaper warehousing, cheaper berthing cost etc.
But that's for now, what if suddenly one fine day they decided to stop corruption, employ all the right people, work harder, work smarter...............?

Singapore has been competitive in most things it has been doing in economy. With China as competitor for port services, it is open as to whether China would be a stronger competitor than the Malaysian.

 

[Frodo]

But that's for now, what if suddenly one fine day they decided to stop corruption, employ all the right people, work harder, work smarter...............?

Scarly to stop corruption they may have to bribe them with more money! LOL! Pay them high bribes in the form of high salaries so that they have no incentive to be corrupted....oh wait......

http://www.theonlinecitizen.com/2013/07/spp-high-salaries-will-not-mitigate-corruption/

 

[FHBH12]

Fixing Malaysia's affordable housing woes
Mar 27, 2015

The meaning of house and housing have drastically changed over the last 30 years, with the standards improved and satisfaction elements differing during those periods.

New legislation in various countries also confirmed that the government’s opinion on housing has evolved and they are now more inclined to low-income housing.

Malaysia, as a developing country and one of Asia’s tigers, aims to become a developed nation by 2020. It is a nation of two distinct geographical regions – the Peninsular Malaysia and East Malaysia. Peninsular Malaysia includes large cities and has active industrial, service and agricultural economy, while East Malaysia is a land of forests and plantations.

While Malaysia’s federal government and state governments support public housing schemes in urban areas, there are still a lot of families that are yet to be reached by these programs. Thus, affordability remains an issue, with land and housing costs beyond the reach of those living below the poverty line.

For a long time, the lack of affordable housing projects remained an acute problem in Malaysia. Although there are now new projects on developing affordable homes, the number of affordable homes is still way below from satisfying the massive public demand.

Penang Development Corp (PDC) recently released a Request for Proposal (RFP) for the establishment of the state’s ninth affordable housing project. Nestled on 4.23 acre site in northeast Penang, the project will have 482 medium-cost houses and 321 low-medium cost homes.

The RFP states that that there would be 241 units with an area of 1,000 sq ft and price of up to RM400,000; 161 units with an area of 900 sq ft and price of up to RM300,000 and 80 units with an area of 800 sq ft and price of up to RM200,000.

A survey showed that the proposed site had several squatter houses, temples, workshops and go-downs, but none of these had temporary occupancy licenses (TOL). The few residential homes with TOL are situated on a marshland, suffering from severe floods and high tides. The affected families are offered a free unit at the project.

The need for affordable homes

With the sky-rocketing property prices, many Malaysian middle class cannot afford to buy a house. Most of them are forced to rent a home or go for a place at the city outskirts. Condominiums in Selangor and Kuala Lumpur usually go for RM500,000 and above, while landed properties at matured areas such as Petaling Jaya or Taman Tun Dr Ismail cost more than RM1 million. This makes it almost impossible for someone earning a monthly income of RM5,000 to buy a home.

In a bid to help the lower to mid-income earners buy a home, the government introduced the My First Home Loan Scheme. Under the scheme, an individual earning a monthly income of less than RM5,000 can apply for a 100 percent housing loan at a bank instead of paying the 10 percent down payment.

However, the scheme has its problems as it requires the eligible applicants to pay RM2,000 for homes costing RM400,000. And as house prices continually increase, the dream of owning a home by the low and middle income class is becoming more elusive.

Present situation of affordable housing

In 2013, Malaysia’s population rose to 30 million from 21.3 million in 2000. Over the years, the death and birth rate decreased, while life expectancy increased from 71 to 73 years. The country’s GDP also increased with the per capita income. However, this also saw home prices increase to record levels. Notably, house prices climbed 12.3 percent year-on-year during the last five years.

Minister of Urban Wellbeing, Housing and Local Government, Dato’ Abdul Rahman Dahlan noted that there is a 40 percent difference between the supply and demand for affordable homes in Malaysia. The Department of Statistics Housing Income Survey 2013 indicated that 80 percent of Malaysians earn a monthly income of less than RM6,900 and cannot afford to buy a home priced at above RM300,000.

A report by the National Property Information Centre revealed that only 31.7 percent of the total number of housing units built in 2012 cost less than RM250,000. Although the income of the middle class has increased, it still cannot keep pace with the hike in property prices; hence, the need for affordable homes.

The government’s role to solving the problem

When it comes to developing affordable and low cost homes, the government has a lot to do.

The previous Tenth Malaysia Plan (10MP) shows the government establishing 78,000 affordable homes, of which 38,950 will be under the People’s Housing Program while 39,050 will be under the Ministry of Rural and Regional Development’s programs. In 2014 Budget, the government also announced that it will provide RM30,000 subsidy for each unit. The move is aimed at encouraging developers to develop more medium- and low-cost homes.

From 2014, developers are mandated to build at least 20 percent medium-cost homes and 20 percent low-cost homes in a housing project. These houses are open to first-time house buyers with a household income of up to RM6,000 per month for medium-cost homes and RM3,000 per month for low-cost homes.

Meanwhile, the government can provide free land at strategic locations as an alternative to compulsory affordable housing construction. They can also fix the proportional increase in price per square feet for affordable homes under the development projects.

But if the government wants the developers to be responsible for the development of the homes, then they can offer incentives by building small malls and shops within the affordable housing areas. This will provide developers with decent profit to compensate for the construction subsidy.

People’s cooperation

When buying a home, Malaysians should apply rational and logical arguments and not rely on their emotions. One should conduct a thorough research of the housing project and developer.

Simply put, one should not invest into something just because someone says so. Many people with low income fail to see their future financial situations and instantly dived into buying a property that is well beyond their means.

When scouting for an affordable home, one may probably be searching for those located near the city. While these two considerations are unlikely to match, the government are developing infrastructures with low cost housing residents in mind. For instance, MRT Line 1 and 2 as well as LRT Line 1 and 2 extensions are now under constructions.

LRT Line 3 from Shah Alam/Klang to Petaling Jaya will soon be developed along with several highways and expressways. With home prices more affordable in Sungai Buloh or Kajang, it will soon be possible to purchase a home there and still work in Kuala Lumpur without the pressing need to buy a car.

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

http://www.propertyguru.com.my/property-news/2015/3/89144/fixing-malaysias-affordable-housing-woes

 

[FHBH12]

Shareholders to discuss Liew's successor in April
Mar 27, 2015

The shareholders of the Battersea Project Holding Co Ltd (BPHCL) will discuss on who will succeed Tan Sri Liew Kee Sin as chairman of the consortium next month, revealed SP Setia Bhd acting president and CEO Datuk Khor Chap Jen.

“They will discuss it at the next board meeting next month. They will discuss it but I don’t know if they will make a decision (on the next chairman) … let the shareholders discuss it at the board level,” he said after SP Setia’s AGM yesterday.

BPHCL is a consortium owned by Sime Darby Bhd (40 percent), SP Setia (40 percent) and the Employees Provident Fund (EPF) (20%). It is currently developing London’s Battersea Power Station project.

Its current chairman, Tan Sri Liew Kee Sin (former SP Setia president and CEO), will end his term in September this year. Liew has been BPHCL’s chairman since the Battersea Power Station project was launched in 2013. To date, he serves as chairman of Eco World Development Group Bhd.

EPF CEO Datuk Shahril Ridza Ridzuan said last month that BPHCL’s chairmanship will be rotated among three shareholders and will go by the size of the respective stake of the shareholder.

“In any case, it’s still up to September. There’s still time yet to make a decision by the shareholders and the consortium themselves. First, it has to be sorted out by the consortium, then they will relay the information to SP Setia and then the shareholders will make a decision,” stated SP Setia acting deputy president and COO Datuk Wong Tuck Wai.

Meanwhile, SP Setia achieved sales of RM1.2 billion during the first four months of the financial year ending 31 October 2015, with total unbilled sales increasing to RM11.5 billion as at end-February.

Khor is confident of achieving this year’s sales target of RM4.6 billion, driven by its pipeline of products that are mostly landed residential products with mid-range costs.

“At the moment, there is no pre-GST (Goods and Services Tax) rush to buy properties. Malaysian buyers are now more discerning … they are not in a rush to buy properties. Plus, GST at the moment is causing a lot of uncertainty and a lot of people are adopting a wait-and-see attitude, how the GST will affect them. So they are holding back on purchase of big-ticket items, property is one of them,” he said.

“We do foresee maybe about two months after GST, things will normalise. We think that in the second half of the year, property purchases will pick up again, given the right products.”

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

http://www.propertyguru.com.my/prop...reholders-to-discuss-liews-successor-in-april

 

[FHBH12]

It is quite incredible that the successor to Liew has not been appointed at this stage. No under-study and likely no proper hand-over, and this is occurring at one of Malaysia's largest developer

 

[cslong]

It is quite incredible that the successor to Liew has not been appointed at this stage. No under-study and likely no proper hand-over, and this is occurring at one of Malaysia's largest developer

This is what we call, "Leadership in total disarray".


MARCH 26, 2015, 6:55 PM - KiniBIZ
Rubbing salt into SP Setia’s wounds
BY KHAIRIE HISYAM
If SP Setia shareholders had hoped that the worst is over for the company’s transition to the post-Liew Kee Sin era, they would be disappointed to learn that current senior bigwigs in SP Setia are shareholders — major shareholders at that — in a public-listed direct rival. And yes, could it have been any other company but Eco World?

Here’s a simple question: What does SP Setia’s name mean? That’s a no-brainer — SP stands for Syarikat Pembinaan (Construction Company) while Setia means loyalty in Malay.

Given the meaning of the latter word, the average SP Setia shareholder must now be scratching their head in dismay and befuddlement at the strange irony of the men helming the company also holding shares in a direct rival, as it turned out.

So which men in particular, exactly? According to Eco World Development Group’s 2014 annual report, as of Jan 22 this year SP Setia’s chairman Zaki Azmi, acting president and chief executive officer Khor Chap Jen and the latter’s deputy Wong Tuck Wai all own Eco World shares.

Zaki, according to the report, is SP Setia’s third largest shareholder with 3.77% or 19.12 million shares as of Jan 22. They have a market value of RM37 million according to last Wednesday’s closing price of RM1.94 per share.

In turn Khor’s and Wong’s stakes are not insubstantial. They own 2.29 million and 1.53 million shares respectively as of Jan 22 this year. The shareholdings come to 0.45% and 0.3% respectively of the outstanding shares base at that point.

According to last Wednesday’s closing price of RM1.94 per share, the market values of Khor’s and Wong’s stakes are RM4.44 million and RM2.96 million respectively.

This escalates the SP Setia-Eco World quandary to heights unseen in Corporate Malaysia’s recent memory. That the board chairman as well as the two foremost management executives of a public-listed company are shown to have personal interests in a public-listed direct rival boggles the mind.

It is a deeply regrettable situation that none of them should have gotten into in the first place, especially Zaki who is a former chief justice, of all things.

What could they have been thinking? Surely Zaki of all people realise the inherent wrongness in what he was doing and as chairman advise Khor and Wong accordingly.

For perspective, just imagine what uproar there would be if say the chairman of Shell takes up a stake in Esso. There would even be a mob of shareholders waiting to tear limbs apart, perhaps.

SP Setia Featured 3In turn the unique situation between SP Setia and Eco World casts a stark light over the whole matter — are these three men waiting to jump ship too?

And now the big burning question for SP Setia shareholders is whether this means the great talent exodus is not yet over.

Recall the open secret that SP Setia staff had resigned in droves to transfer directly to Eco World, making up some 80% of the latter’s workforce as of last year according to a research house.

This was in addition to the host of former SP Setia bigwigs who led Eco World’s emergence onto the property scene in late 2013, some of them having spent more than two decades individually at SP Setia.

And don’t forget the surprisingly quick appointment of Liew Kee Sin, who had helmed SP Setia for close to two decades up to his exit in end-April 2014, to Eco World’s board in the first week of May 2014.

Despite citing a wish to retire for his departure, Liew seemingly changed his mind to join his son, an executive director in Eco World as well as a substantial shareholder, whose stake Liew and his wife paid some RM124 million for.

There is also the exit of Liew’s right-hand man Voon Tin Yow, the former’s chief operating officer at SP Setia for nearly two decades, in end-December only to surface as Liew’s partner in private vehicle Eco World Investment Co Ltd not two weeks into 2015.

For the record, Voon was appointed an executive director in Eco World earlier this month.

By now perhaps the average SP Setia shareholder may be hoping the worst of the company’s astounding talent drain is over. Perhaps they dared hope for a new beginning, building upon where the company is at now to a new future post-Liew and company.

Alas, that is not to be. How can SP Setia move forward at full speed with the sitting chairman and the two foremost management executives facing such conflict of interest?

Directors’ duties to a company are clearly outlined in the Companies Act 1965.

Section 132 of that Act stipulates that a director must “act honestly and use reasonable diligence in the discharge of the duties of his office” and this not only includes the obligation to act in the company’s best interests but also to avoid conflicts of interests at all times, according to material from the Companies Commission of Malaysia (CCM).

Inside story image EcoWorld 230315 02And the conflict here is clear. In view of the men’s shares in Eco World, their personal interests are served by Eco World’s progress and growth. However their duties lie with advancing SP Setia’s own position in the property market, in which Eco World also competes.

It may be argued that they can be let off so long as they openly declare their interest in Eco World to SP Setia, but in practical terms this is mere technicality — they are bound by duty not to even be in such positions of conflict in the first place.

Even if they uphold their duties as SP Setia men first ahead of their personal interests in Eco World, the fact remains that the conflict and potential breach of duty towards SP Setia shareholders remain hanging over their heads with every passing day.

And the biggest wonder of all is that SP Setia’s majority shareholders with a stake of just under 70%, Permodalan Nasional Bhd, set up in the seventies to increase bumiputera ownership and participation in the economy, stands by and merely watches it happen.

Meantime, salt is being repeatedly rubbed into SP Setia’s open wounds — but no one seems to care, even when SP Setia’s own sitting chiefs are doing the rubbing.

 

[Vohkster]

This is what we call, "Leadership in total disarray".


MARCH 26, 2015, 6:55 PM - KiniBIZ
Rubbing salt into SP Setia’s wounds
BY KHAIRIE HISYAM
If SP Setia shareholders had hoped that the worst is over for the company’s transition to the post-Liew Kee Sin era, they would be disappointed to learn that current senior bigwigs in SP Setia are shareholders — major shareholders at that — in a public-listed direct rival. And yes, could it have been any other company but Eco World?

Here’s a simple question: What does SP Setia’s name mean? That’s a no-brainer — SP stands for Syarikat Pembinaan (Construction Company) while Setia means loyalty in Malay.

Given the meaning of the latter word, the average SP Setia shareholder must now be scratching their head in dismay and befuddlement at the strange irony of the men helming the company also holding shares in a direct rival, as it turned out.

So which men in particular, exactly? According to Eco World Development Group’s 2014 annual report, as of Jan 22 this year SP Setia’s chairman Zaki Azmi, acting president and chief executive officer Khor Chap Jen and the latter’s deputy Wong Tuck Wai all own Eco World shares.

Zaki, according to the report, is SP Setia’s third largest shareholder with 3.77% or 19.12 million shares as of Jan 22. They have a market value of RM37 million according to last Wednesday’s closing price of RM1.94 per share.

In turn Khor’s and Wong’s stakes are not insubstantial. They own 2.29 million and 1.53 million shares respectively as of Jan 22 this year. The shareholdings come to 0.45% and 0.3% respectively of the outstanding shares base at that point.

According to last Wednesday’s closing price of RM1.94 per share, the market values of Khor’s and Wong’s stakes are RM4.44 million and RM2.96 million respectively.

This escalates the SP Setia-Eco World quandary to heights unseen in Corporate Malaysia’s recent memory. That the board chairman as well as the two foremost management executives of a public-listed company are shown to have personal interests in a public-listed direct rival boggles the mind.

It is a deeply regrettable situation that none of them should have gotten into in the first place, especially Zaki who is a former chief justice, of all things.

What could they have been thinking? Surely Zaki of all people realise the inherent wrongness in what he was doing and as chairman advise Khor and Wong accordingly.

For perspective, just imagine what uproar there would be if say the chairman of Shell takes up a stake in Esso. There would even be a mob of shareholders waiting to tear limbs apart, perhaps.

SP Setia Featured 3In turn the unique situation between SP Setia and Eco World casts a stark light over the whole matter — are these three men waiting to jump ship too?

And now the big burning question for SP Setia shareholders is whether this means the great talent exodus is not yet over.

Recall the open secret that SP Setia staff had resigned in droves to transfer directly to Eco World, making up some 80% of the latter’s workforce as of last year according to a research house.

This was in addition to the host of former SP Setia bigwigs who led Eco World’s emergence onto the property scene in late 2013, some of them having spent more than two decades individually at SP Setia.

And don’t forget the surprisingly quick appointment of Liew Kee Sin, who had helmed SP Setia for close to two decades up to his exit in end-April 2014, to Eco World’s board in the first week of May 2014.

Despite citing a wish to retire for his departure, Liew seemingly changed his mind to join his son, an executive director in Eco World as well as a substantial shareholder, whose stake Liew and his wife paid some RM124 million for.

There is also the exit of Liew’s right-hand man Voon Tin Yow, the former’s chief operating officer at SP Setia for nearly two decades, in end-December only to surface as Liew’s partner in private vehicle Eco World Investment Co Ltd not two weeks into 2015.

For the record, Voon was appointed an executive director in Eco World earlier this month.

By now perhaps the average SP Setia shareholder may be hoping the worst of the company’s astounding talent drain is over. Perhaps they dared hope for a new beginning, building upon where the company is at now to a new future post-Liew and company.

Alas, that is not to be. How can SP Setia move forward at full speed with the sitting chairman and the two foremost management executives facing such conflict of interest?

Directors’ duties to a company are clearly outlined in the Companies Act 1965.

Section 132 of that Act stipulates that a director must “act honestly and use reasonable diligence in the discharge of the duties of his office” and this not only includes the obligation to act in the company’s best interests but also to avoid conflicts of interests at all times, according to material from the Companies Commission of Malaysia (CCM).

Inside story image EcoWorld 230315 02And the conflict here is clear. In view of the men’s shares in Eco World, their personal interests are served by Eco World’s progress and growth. However their duties lie with advancing SP Setia’s own position in the property market, in which Eco World also competes.

It may be argued that they can be let off so long as they openly declare their interest in Eco World to SP Setia, but in practical terms this is mere technicality — they are bound by duty not to even be in such positions of conflict in the first place.

Even if they uphold their duties as SP Setia men first ahead of their personal interests in Eco World, the fact remains that the conflict and potential breach of duty towards SP Setia shareholders remain hanging over their heads with every passing day.

And the biggest wonder of all is that SP Setia’s majority shareholders with a stake of just under 70%, Permodalan Nasional Bhd, set up in the seventies to increase bumiputera ownership and participation in the economy, stands by and merely watches it happen.

Meantime, salt is being repeatedly rubbed into SP Setia’s open wounds — but no one seems to care, even when SP Setia’s own sitting chiefs are doing the rubbing.

Thanks for pointing out that these brilliant people are now in EcoWorld. They won't make the same mistake as your RnF to lelong their properties. Such a shame to use such desperate tactics. I feel disappointed such a well known company got to do this. For the record, my heart goes out to RnF buyers. You have a right to tell ur developer to stop lelong ur properties up to 30% discount. Even cslong cannot do anything about it so don't rely on him to do anything.

 

[Funniman]

KUALA LUMPUR: A high level initiative has started for a proposal for the property arm of Sime Darby Bhd to take over SP Setia Bhd.

The proposal was mooted by a few senior management of SP Setia about two months ago and conveyed to the top brass of Permodalan Nasional Bhd (PNB) and Sime Darby Bhd. PNB is the major shareholder of SP Setia as well as Sime Darby.

“So far, there has been no resistance to the proposal. It is not something out of the blue as this was talked about by the dominant shareholder.

“This time it is coming from the key people in SP Setia. They see a need for a strong leadership in SP Setia for the greater benefit of shareholders,” said a source.

The takeover is to resolve the current problem at SP Setia. The departure of its former president and CEO Tan Sri Liew Kee Sin on April 30, 2014 left a huge vacuum, which has gone increasing larger. The initial plan was to have the No. 2 and 3 – chief financial officer Datuk Teow Leong Seng and deputy president and COO Datuk Voon Tin Yow – at the helm post-Liew.

http://www.thestar.com.my/Business/...n-for-its-takeover-by-conglomerate/?style=biz

 

[Vohkster]

KUALA LUMPUR: A high level initiative has started for a proposal for the property arm of Sime Darby Bhd to take over SP Setia Bhd.

The proposal was mooted by a few senior management of SP Setia about two months ago and conveyed to the top brass of Permodalan Nasional Bhd (PNB) and Sime Darby Bhd. PNB is the major shareholder of SP Setia as well as Sime Darby.

“So far, there has been no resistance to the proposal. It is not something out of the blue as this was talked about by the dominant shareholder.

“This time it is coming from the key people in SP Setia. They see a need for a strong leadership in SP Setia for the greater benefit of shareholders,” said a source.

The takeover is to resolve the current problem at SP Setia. The departure of its former president and CEO Tan Sri Liew Kee Sin on April 30, 2014 left a huge vacuum, which has gone increasing larger. The initial plan was to have the No. 2 and 3 – chief financial officer Datuk Teow Leong Seng and deputy president and COO Datuk Voon Tin Yow – at the helm post-Liew.

http://www.thestar.com.my/Business/...n-for-its-takeover-by-conglomerate/?style=biz

I heard internal rumors that they have acquired a few pieces of land overseas and are going to do something like Battlesea. If you trust Tan Sri Liew foresight perhaps it's good to look at opportunities overseas. Don't bother buying China based developer like RnF who are giving away 30% discount like some lelong sale. So embarrassing

 

[Funniman]

I heard internal rumors that they have acquired a few pieces of land overseas and are going to do something like Battlesea. If you trust Tan Sri Liew foresight perhaps it's good to look at opportunities overseas. Don't bother buying China based developer like RnF who are giving away 30% discount like some lelong sale. So embarrassing

London is a good hunting ground.
Tan Sri entered JV with Ballymore to develop London City Island and Embassy Gardens which is opposite Battersea. Total GDV is about RM 12 billion. As a matter of interest the price is between RM 4000 at London City Island to RM 7500 per sq ft at embassy Gardens.

 

[Vohkster]

London is a good hunting ground.
Tan Sri entered JV with Ballymore to develop London City Island and Embassy Gardens which is opposite Battersea. Total GDV is about RM 12 billion. As a matter of interest the price is between RM 4000 at London City Island to RM 7500 per sq ft at embassy Gardens.

Ah... Seems like you are in the know my dear brother. Have you invested in some units in UK lately? When I heard about it it was already too late. The cheaper units are all snapped up n the remaining ones are too expensive for me. But I have done the homework. Location is superb n by virtue of currency appreciation you can already flip it in 2 years if pricing goes north. Tan Sri Liew sure knows how to do business.

 

[Funniman]

Ah... Seems like you are in the know my dear brother. Have you invested in some units in UK lately? When I heard about it it was already too late. The cheaper units are all snapped up n the remaining ones are too expensive for me. But I have done the homework. Location is superb n by virtue of currency appreciation you can already flip it in 2 years if pricing goes north. Tan Sri Liew sure knows how to do business.

For those who dare, it is worth the plunge.

 

[FHBH12]

Property 2015
http://www.btinvest.com.sg/specials/property2015/

 

[FHBH12]

Building on Singapore's land shortage
CK TAN, Nikkei staff writer
April 9, 2015 12:30 am JST

SINGAPORE -- Land-starved Singapore is building an industrial park and motor circuit next door in Malaysia to feed its need for space and speed.

Ascendas Group, Singapore's leading developer, is partnering Malaysia's UEM Sunrise in a 40-60 joint venture to develop Nusajaya Tech Park on 2 sq. km in Iskandar Malaysia, the development corridor in Johor, Malaysia's southern state.

Nusajaya is a long-term integrated development with dedicated residential, education and leisure zones alongside the industrial area. With a gross development value of 3.7 billion ringgit ($1 billion), the project is being pitched to Singaporean companies in various sectors, including precision engineering, marine construction, logistics and solar energy.

Located 15 minutes from the border and three times the overall size of Singapore, Iskandar Malaysia has attracted 158 billion ringgit in total investment since its inception in 2006 as the Iskandar Development Region.

Commercial sites are not the only attraction Malaysia has to offer Singapore. Fastrack Autosports, a company linked to Singaporean tycoon Peter Lim, is developing Motorsports City on 270 acres. Billed as the "Nurburgring of Iskandar Malaysia", the circuit will cater to motor, motorcycle and kart enthusiasts.

"We will also look for German and Japanese carmakers to use the track to study consumer needs," said Fastrack Director Barry Kan at a press briefing on Wednesday.

UEM Sunrise is also the master developer of Gerbang Nusajaya, which covers another 18.4 sq. km area within Iskandar Malaysia and has a gross development value of 42 billion ringgit.

The developer is partnering plantation company Kuala Lumpur Kepong to build high-end residential properties. There have been concerns about a luxury residential bubble in Iskandar Malaysia as leading developers from China, Malaysia and Singapore compete for affluent buyers, particularly from Singapore.

"Sales of properties, especially landed ones, are still doing well despite the negative perceptions," said Ho Chin Soon, a real estate research company owner.

The Malaysian and Singaporean governments have agreed in principle to build high speed rail and subway links between the two countries by 2020, but there are no signs of these projects starting any time soon.

http://asia.nikkei.com/Business/Companies/Building-on-Singapore-s-land-shortage

 

[DCputeri]

It seems to focusing in the JB and Danga area.

http://www.todayonline.com/business/maybank-sounds-warning-iskandar-urges-caution

Maybank sounds warning on Iskandar, urges caution
Maybank sounds warning on Iskandar, urges caution
A property development in Johor by Country Garden. As of the fourth quarter of last year, the state had some of the highest number of units planned in all of Malaysia. Photo: Raj Nadarajan

BY
LEE YEN NEE
[email protected]ISHED: 4:17 AM, APRIL 18, 2015

ISKANDAR (JOHOR) — The existing glut of homes in Iskandar will be aggravated by a huge incoming supply this year and the next, which would put property values under greater pressure over the medium term, a research report by Malaysia’s largest bank showed.

Advising investors to be cautious about the region, the Maybank report said that Klang Valley and Penang were better bets. Klang Valley, in particular, is preferred because of the upcoming rapid transit lines, and the Kuala Lumpur-Singapore high-speed rail project that will end at Bandar Malaysia. More importantly, Greater KL and Klang Valley has a strong population growth potential — a possible 40 per cent increase to 10 million by 2020 — that offers more sustainable demand for properties, it added.

The report pointed out that the value of property transactions in Johor had fallen by 33 per cent quarter-on-quarter in the fourth quarter of last year, underperforming the country (-7 per cent) and other major cities such as KL (-12 per cent) and Penang (8 per cent).

Property prices in Johor were also weaker than that of other cities, with the prices contracting 1 per cent quarter-on-quarter. In contrast, property prices in the whole of Malaysia dipped 0.2 per cent.

There are roughly 80,900 units of approved high-rise residences in Iskandar. Latest statistics from Malaysia’s National Property Information Centre (NAPIC) showed that as at the fourth quarter of last year, there were 142,567 homes under construction in the state of Johor, with another 193,271 units planned — among the highest in all of Malaysia.

The aggressive land-banking activities by Chinese developers could also worsen the glut and lead to price wars in the high-rise mixed-development segment, the report said.

“Without coordinated planning and control, this could aggravate the oversupply situation and induce price wars especially in the high-rise mixed development segment,” said Mr Wong Wei Sum, an analyst with Maybank who wrote the research note.

The report also gave its assessment on some of the high-profile projects in Iskandar: At Guangzhou R&F Properties’ Princess Cove project, it noted that despite its prime location in the city centre of Johor Baru, the take-up for its phase 1 residential towers only rose slightly from 46 per cent in October last year to about 60 per cent currently.

Country Garden’s project in Johor Baru’s Danga Bay area is also about 60 per cent sold. A similar proportion of projects in Danga Bay by Greenland, a Chinese property developer, is booked. “Most of the buyers are Malaysians and the three Chinese developers (including Guangzhou R&F) are offering discounts/rebates ranging from 6 to 15 per cent, we were told,” Mr Wong said.

“We remain cautious over the increasingly crowded development space in Iskandar Malaysia and think the oversupply situation is likely to get worse ... This will be aggravated by ample incoming supply by end-2015 and 2016 from units which were launched during Iskandar Malaysia’s peak time in 2012 and 2013.”

Property analysts said the concerns raised by Maybank about Iskandar are valid, especially at a time when demand for homes in the special economic region has started to wane, following the implementation of property cooling measures targeted at foreign buyers and tighter lending conditions by banks. If the oversupply situation is not managed well, the vibrancy of Iskandar will be affected with a large number of homes or even entire townships left vacant, the analysts said.

Mr Colin Tan, director of research and consultancy at Suntec Real Estate Consultants, said: “By looking purely at the economics, the Iskandar story should succeed because so long as investments continue to come in, the place should be in a good state. The question is, ‘How long will it take?’ Iskandar’s progress seems to be held back by politics.”


http://www.channelnewsasia.com/news/singapore/caution-advised-on/1790094.html

SINGAPORE: The property oversupply situation in Iskandar Malaysia, Johor, is "likely to get worse before it gets better", said Maybank Investment Bank's research wing in a report, with property values in an increasingly crowded development space possibly declining over the medium term.

In a research note issued by the Malaysian bank on Tuesday (Apr 14) urged investors to be cautious about the region, noting that property transactions and prices in Iskandar have been dropping.



The value of property transactions in Johor had fallen by 33 per cent quarter-on-quarter in the Q4 2014, underperforming the country (-7 per cent) and other major cities such as Kuala Lumpur (-12 per cent) and Penang (8 per cent).

Property prices in Johor were also weaker than that of other cities, with the House Price Index (HPI) contracting 1 per cent quarter-on-quarter. In contrast, property prices in the whole of Malaysia dropped 0.2 per cent, the research paper said.



Residential and commercial property transaction values plunged 42 per cent and 43 per cent on-quarter in the fourth quarter 2014, respectively, compared to the 4 per cent dip by industrial properties.



"The latest statistics reaffirm our view that industrial properties are a better investment choice in Iskandar due to the relocation of small medium enterprises (SMEs) from Singapore and its relatively limited supply as compared to residential and commercial properties," Maybank said.

OVERSUPPLY AN ISSUE

The research note said that Malaysian developers have scaled back their launches and shifted their product mix to avoid direct competition with Chinese developers, and have lowered sales expectations for their projects at Iskandar.

"Judging from the number of approved high-rise projects, the Iskandar property market could be hit by too much supply of high-rise mixed development projects if there is still no coordinated planning and control - this will induce price volatility," Maybank analyst Wong Wei Sum said in the research.

"The oversupply situation will be exacerbated by the huge incoming supply in 2015/2016, where units under construction have risen 18 per cent year-on-year in 2012 and 2013, respectively."

"AGGRESSIVE" LAND GRAB BY CHINESE DEVELOPERS

The research note also raised concerns about "aggressive landbanking activities" by Chinese developers in the already-crowded Iskandar region.

"Without coordinated planning and control, this could aggravate the oversupply situation and induce price wars, especially in the high-rise mixed development segment."



For instance, Shanghai-based Greenland Holdings Group recently expanded its foothold in the space with the acquisition of a 128-acre freehold land in the south of Bandar Baru Permas Jaya. This was after its first purchase of 14 acres of land in Danga Bay in 2014. The company is also looking to acquire about 1,200 to 1,400 acres of industrial land near the Tanjung Langsat Industrial Complex, according to Maybank.

"If this materialises, Greenland will emerge as one of the largest land owners in Iskandar with a total landbank of 1,342 acres and it would pose strong competition to the local developers," the report said.

RECLAMATION PROJECT PRESENT "HIGH ELEMENT OF RISK"

Maybank also said it is "cautious" over "massive land reclamation" in Iskandar.

Reclamation works spanning 3,425 acres for the Forest City project has been given the green light from the Development of Environment. The development will spread over a 30-year period, and will consist of four man-made islands reclaimed in four phases.

"The execution and planning of such reclamation projects is complex, especially Forest City, and carry elements of risk and uncertainty. Hence, developers' financial positions are paramount; else we may see projects being abandoned or price wars initiated to clear inventories or reduce sales risks by the developers," Maybank said.

"More importantly, the failure of any of these projects could erode buyers' confidence and perception on Iskandar."



As such, the bank said it remains cautious on property exposure in Iskandar, instead preferring developers with exposure in the Klang Valley and Penang.

Klang Valley, in particular, is preferred because of the upcoming KVMRT and LRT lines, and potential KL-Singapore high-speed rail project, which will end at Bandar Malaysia, Maybank said.

More importantly, the strong population growth potential in Greater KL and Klang Valley - a possible 40 per cent increase to 10 million by 2020 - offers more sustainable demand for properties, it added.

- CNA/kk

 

[snowbird]

It seems to focusing in the JB and Danga area.

But that's exactly where the problem was when the Chinese developers suddenly within a year added 20,000 units into the Danga Bay area while promising even more in future phases!
How to digest with without getting a severe heartburn!

 

[DCputeri]

This is a very important alarm to the sultan who has been overwhelmed with so many investors in his land. But pity Singapore's investment near that area.

But that's exactly where the problem was when the Chinese developers suddenly within a year added 20,000 units into the Danga Bay area while promising even more in future phases!
How to digest with without getting a severe heartburn!

 

[snowbird]

This is a very important alarm to the sultan who has been overwhelmed with so many investors in his land. But pity Singapore's investment near that area.

For those who bought for self stay, it shouldn't be a problem and with the better exchange rate for SGD/RM the buyers are enjoying a discount actually.
But for the flippers and investors who came in lately, well, depends how deep their pockets are and also whether the economy will improve immensely soon, it'll be quite tough to pull through unscathed.

 

[toyohon]

For those who bought for self stay, it shouldn't be a problem and with the better exchange rate for SGD/RM the buyers are enjoying a discount actually.
But for the flippers and investors who came in lately, well, depends how deep their pockets are and also whether the economy will improve immensely soon, it'll be quite tough to pull through unscathed.

Plus the fact that ordinary Joehoreans don't usually live in high rise apartments. And also not many are used to living around old JB or spanking new 'unexplored' area.