Property News

[FHBH12]

It will choke e waters and cause fouling, as e rivers from JB and SG carry sewage into it. Very interesting to see its impact to e water front projects in JB and SG.

 

[FHBH12]

Property Market 2014
http://www.wtw.com.my/Portals/0/WTW/PMR/WTWPMR2014.pdf

 

[FHBH12]

Panic Station
By Khalil AdisMar 21, 2014

While giving a talk in Malaysia recently, a developer informed me that the minimum purchase price for foreigners had been raised overnight in Kuala Lumpur from RM500,000 to RM1 million (approx. S$193,200 to S$386,500).

Although the move had been announced last October by Prime Minister Dato' Sri Najib Tun Razak and anticipated by many, the speed and manner in which it was implemented caught both Malaysians and developers off guard.

Many had in fact speculated it would be rolled out on 1 May 2014.

However, there was neither any reaction time given nor any indication when it would kick in.

To make matters worse, various sources - both from government and non-government bodies - had over the months spoken to the media with their own interpretation when the various measures would take effect.

Yet, there was no official circular out from the Ministry of Finance except for a speech from the Prime Minister on Budget 2014.

The Economic Planning Unit (EPU) finally issued a circular (http://www.epu.gov.my/documents/10124/338222b1-4f1d-4223-828e-49309d623f12) on its website the day the ruling was announced.

In it, the government department stated that the policy would take effect in the federal territory of Kuala Lumpur, Putrajaya and Labuan from 1 March but not other states.

The news led to panic in Singapore, where many had been eyeing properties in Iskandar Malaysia, as Singaporeans were afraid they could be caught in between by the new ruling.

The next day, Johor Chief Minister Datuk Seri Mohamed Khaled Nordin clarified to the media that it would only be implemented in the state on 1 May.

I notice these are the issues - a lack of a unified voice and co-ordination among the various government bodies in Malaysia when implementing policies.

While I understand the need to raise the minimum purchase price for foreigners, the manner in which it was hastily implemented does not bode well for Malaysia.

Let me explain why.

Firstly, many investors could be caught in between causing developers to either back date the signing of the SPA (Sales & Purchase Agreement) or forcing investors to buy properties above RM1 million. (It has been clarified, however, within Johor, investors can still purchase below RM1 million for approved projects.)

Secondly, banks generally do not recognise any extension.

In Iskandar Malaysia, only OCBC is still willing to finance mortgages to foreigners buying properties below RM1 million.

Others, unfortunately, will be caught.

Thirdly, even developers need sufficient reaction time so they can mitigate their risk and provide better clarity to their sales staff and panel of banks.

By implementing such a knee-jerk reaction, the Malaysian government will cause a sense of panic among the various stakeholders.

In fact, it will further reinforce the negative perception that policy changes can and do (as shown in this case) occur overnight in Malaysia.

http://www.propertyguru.com.my/blog/tag/panic-station

 

[FHBH12]

Malaysia Boleh!

 

[FHBH12]

Property prices in Pengerang up 30%
Apr 1, 2014 - PropertyGuru.com.my

Property prices in Pengerang, Johor has surged by over 30 percent in the past three years thanks to the Refinery and Petrochemical Integrated Development (Rapid) and the Pengerang Independent Deepwater Petroleum Terminal (PDPT).

As a result, “there are developers looking for land to buy in Pengerang. They are planning to build commercial centres as well as affordable and medium-to-high end houses to complement the current developments and cater for the needs of the people,” said a source interviewed by The New Straits Times.

The PDPT is joint-venture between Dialog, State Secretary Johor Inc and Netherlands-based Royal Vopak. It comprises facilities for storing, blending and distributing crude & clean petroleum products, with phase 1 expected to be completed by May.

Petronas’ Rapid project is scheduled to start in Q4 2014, but the oil and gas firm will make its final investment decision on 8 April. Nevertheless, initial investment estimates for the project is about RM60 billion by 2020, but it could hit RM200 billion due to the project’s growing popularity.

“As the Rapid project progresses, more international investors are expected to come in to establish refineries. This will boost investments in Pengerang,” sources said.

In fact, Petronas has inked heads of agreements with Japan’s Itochu, Italy-based Versalis and Bangkok-listed PTT Global Chemical for the construction of speciality chemical plants. Germany’s Evonik Industries AG will also jointly build production facilities for specialty chemicals with Petronas.

Meanwhile, current infrastructure projects in Pengerang include the construction of a new dual-lane highway and the upgrading of the existing dual-lane single carriageway.

The government also plans to build a dam with 88km of pipelines that will provide water to Rapid and the rest of Johor. It is scheduled to be completed by 2016.

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/2014/4/12209/property-prices-in-pengerang-up-30-

 

[FHBH12]

30% is actually not a lot, but considering the distance from city center, it is quite an achievement.

 

[FHBH12]

Errant developers beware!
Apr 3, 2014 - PropertyGuru.com.my

The revised Housing Development (Control and Licensing) Act of 1966, which takes effect in June, will provide stiffer penalties to developers who deliberately abandon their housing projects.

“Under the amended act, no exemption will be given to any housing developers companies that contravene the regulations,” said Urban Wellbeing, Housing and Local Government Deputy Minister Datuk Halimah Mohd Sadique.

Housing developers who abandon their projects will also be blacklisted and they must pay a fine of up to RM500,000 from RM200,000 previously.

“Once blacklisted, the developer and company's board of directors will not be able to apply or renew their advertising permit and sales license,” she explained.

Aside from that, home buyers can void the sale and purchase (S&P) agreement if there is no construction progress at the project site for six straight months after the deal was signed.

But in order to do so, buyer must first obtain a written agreement from the mortgage lender and an endorsement from the housing controller.

Between 2009 and February 2014, the ministry recorded a total of 206 abandoned housing projects. Of this, 149 developments or 72.4 percent had been successfully revived & completed, benefiting 22,868 house buyers.

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/2014/4/12233/errant-developers-beware-

 

[ECboy]

Errant developers beware!
Apr 3, 2014 - PropertyGuru.com.my

The revised Housing Development (Control and Licensing) Act of 1966, which takes effect in June, will provide stiffer penalties to developers who deliberately abandon their housing projects.

“Under the amended act, no exemption will be given to any housing developers companies that contravene the regulations,” said Urban Wellbeing, Housing and Local Government Deputy Minister Datuk Halimah Mohd Sadique.

Housing developers who abandon their projects will also be blacklisted and they must pay a fine of up to RM500,000 from RM200,000 previously.

“Once blacklisted, the developer and company's board of directors will not be able to apply or renew their advertising permit and sales license,” she explained.

Aside from that, home buyers can void the sale and purchase (S&P) agreement if there is no construction progress at the project site for six straight months after the deal was signed.

But in order to do so, buyer must first obtain a written agreement from the mortgage lender and an endorsement from the housing controller.

Between 2009 and February 2014, the ministry recorded a total of 206 abandoned housing projects. Of this, 149 developments or 72.4 percent had been successfully revived & completed, benefiting 22,868 house buyers.

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/2014/4/12233/errant-developers-beware-

Fully support this!
Punish those developers for screwing the public

 

[FHBH12]

GST implications for the real estate industry
By Laura Lee Friday, 04 Apr 2014, 12:13 AM

With the Goods and Services Tax (GST) set to replace the current consumption tax, that is the sales and services tax come April 1, 2015, there have been many concerns raised by various parties, including associations.

At a recent talk organised by the Board of Valuers, Appraisers and Estate Agents Malaysia, which had a session on GST, the Royal Malaysian Customs Department’s GST unit assistant director of customs Lau Thye Mun updates the 200-plus audience that the registration for GST will be made mandatory by Jan 1 next year.

Despite this, some of the questions posed showed that some of the audience still have not grasped the mechanics of how the GST works. For instance, a real estate agent (REA) still asked whether he needs to charge GST.

Lau replies: “Your supply as a professional is providing services to the developer or customer. Thus, whether it is residential or commercial properties that you are selling, it is subjected to GST because you are supplying services.”

On whether a REA can delay the tax invoice submission to the Customs when payment is not received from the client, Lau reminds that the upfront tax payment or GST must be paid even for cases of non-payment from the client.

He says, however, the REA or taxable person is entitled to relief on bad debts if he has not received any payment or part of the payment for the taxable supplies.

One of the conditions for applying for such relief is if no payment or part payment has been received six months from the date of supply or the debtor has become insolvent before the six month period has elapsed.

- See more at: http://www.focusmalaysia.my/Assets/...the-real-estate-industry#sthash.cdWz0qrO.dpuf

 

[FHBH12]

Other than the 6% GST itself, there are also other hidden compliance costs and risk of default. Properties will be at least 10% pricier when GST fully kicks in mid of 2015. Expect new launches to be more expensive from this year onward.

 

[malpaso]

Other than the 6% GST itself, there are also other hidden compliance costs and risk of default. Properties will be at least 10% pricier when GST fully kicks in mid of 2015. Expect new launches to be more expensive from this year onward.

property is GST exempt. only the supporting services (like S&P legal fees) will be subject to gst.

 

[RedsYNWA]

property is GST exempt. only the supporting services (like S&P legal fees) will be subject to gst.

I think the contractors are not GST exempt though. So the developers will face higher cost as they need to absorb the GST charged by contractors/architects etc.

 

[FHBH12]

I think the contractors are not GST exempt though. So the developers will face higher cost as they need to absorb the GST charged by contractors/architects etc.

Yes, contractors, architects, quantity surveyor, lawyers and other service providers are all involved in GST. Probably only the SPA amount itself does not attract GST, but there is still the state levy of 2% on 1 May 2014 which will magnify the 6% GST in the supply chain.

 

[cow138]

Bottom line is that the current property prices will be well supported.. Don't see it dropping anytime soon.. But GST will likely drive higher inflation..

Hopefully the govt will use the increase in tax returns to improve the infrastructure of the state.

 

[kopikong99]

The downcast mood in sg properties will mean that less people have cash to buy in JB?

Majority iskandar buyers are malaysians PR and don't see how depressed sg property prices affects prices here much.

 

[jasonjst]

The downcast mood in sg properties will mean that less people have cash to buy in JB?

unless pte pty in SG drop significanly like 20-30% and cooling measure removed. Otherwise mid income Singaporean and SPR will still not able to afford SG pte pty LL must buy JB pte pty. Maybe will affect a little as now some people can buy HDB BTO at lower price .

 

[FHBH12]

Malaysia, a retail property goldmine
Apr 4, 2014 - PropertyGuru.com.my

Malaysia emerged as retail property hot spot in 2013 among developing markets in the region, according to report by Jones Lang LaSalle (JLL).

“The government has been very proactive in Malaysia, particularly in the Johor Bahru region. The infrastructure investment goes in and you can see there’s going to be a big upsurge in people and the dynamics of the area will change and that will have a hugely beneficial effect on retail,” said David Raven, Lead Director for Retail Investments at the property firm.

Meanwhile, JLL’s report reveals that Asian shopping malls are the latest ‘must have’ for investors, who are eyeing the region’s robust consumer spending driven by rapid urbanisation.

Despite fears over the US Federal Reserve tapering and China’s slower than expected GDP growth, retail investment in Asia soared by 41 percent year-on-year to US$21.17 billion (RM69.44 billion) in 2013.

In particular, retail cum commercial projects were very sought-after last year. “The Knightsbridge mall on Singapore’s Orchard Road is a good example of this. It sold to Bright Ruby Resources, which is controlled by the Du family of China, for US$921 million (RM3.02 billion). While a hotel sits above the shops, the retail component made up more than half of the sale price at US$595 million (RM1.95 billion),” JLL noted.

However, buying existing mixed-use projects requires expertise, as well as knowledge on local rules and regulations.

“Unlike other asset classes, there is the propensity for investments in retail real estate to go horribly wrong if investors fail to do their homework when purchasing,” Raven explained. It may also fail if the buyer doesn’t have the necessary skills to appropriately manage the said property.

Thus, pension and sovereign funds that are planning to acquire existing integrated projects in Asia, especially those with small operational teams, will need local partners to access a particular market and manage their investments.

“But competition is fierce and there is plenty of fresh capital targeting the sector, from local high net worth investors to global sovereign and pension funds. Private Equity funds raised for exclusive investment in the region are also a dominant force, particularly for riskier assets,” JLL added.

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/2014/4/12239/malaysia-a-retail-property-goldmine

 

[FHBH12]

Buy near big malls.

 

[FHBH12]

Delay seen in Vietnam housing recovery: CBRE
Families struggling to access affordable loans; confidence in economy lagging
PUBLISHED APRIL 04, 2014

[HANOI] Vietnam's property market rebound from a three-year slump may be delayed until 2015 as families struggle to access affordable loans and confidence lags, according to CBRE Group.

Only 1,500 condominiums were sold in Hanoi in the first quarter, according to CBRE.

While that's a fivefold increase from the 279 sold in the same period two years ago, it's still down from the peak in 2009, when more than 15,000 units were sold in the capital city.

In Ho Chi Minh City, first-quarter sales more than tripled to 2,263. That's compared to a peak of 13,000 condos sold in Ho Chi Minh City in 2010.

"We've still got issues that are holding us back," Richard Leech, Hanoi-based executive director of CBRE, said on Wednesday. "Although we have had economic stability, there is a lack of confidence, a fear that interest rates are going back up."

First-quarter home sales reflect difficulties in a property market where entire sub-divisions on city outskirts remain unfinished and empty, Mr Leech said.

The economy continues to be stymied by bad debt at banks, of which a third were tied to soured property loans at the end of 2012.

Lenders are putting together a loan package to stimulate the property market and policymakers cut interest rates last month to bolster growth.

The central bank last May approved 30 trillion dong (S$1.79 billion) of financing for five banks to use for low-interest home loans, yet few homebuyers have participated in the programme, Mr Leech said.

Last month, a group of banks including BIDV Securities, Agribank Securities, Bank for Foreign Trade of Vietnam and Vietnam Bank for Construction announced a plan to offer a total of 50 trillion dong for property loans, according to Vietnam News.

The World Bank estimates the economy will grow 5.4 per cent this year, a seventh straight year of growth below 7 per cent. The central bank last month cut its policy rates and said that it's stepping up efforts to create more favourable conditions for foreign investors, including a plan to auction bad-debt assets of banks.

Policymakers are also weighing a proposal that would make it easier for foreigners to buy homes in the country.

Declining home values hurt Vietnamese sense of wealth, Adam McCarty, Hanoi-based chief economist at Mekong Economics, said. When that drops, people reduce their spending, which ripples across the economy, he said.

"Most people's wealth is tied up in real estate," Mr McCarty said. "They are seeing their wealth go down on paper about 30 per cent in the last few years. A lot of people have debts. There is a lot of stagnation."

Just a few years ago, ordinary Vietnamese were "gambling" on apartments, putting down deposits with plans to resell the units in a month or two, he said.

When the market slumped, they could not sell the homes, Mr McCarty added.

Some pockets of the housing market are seeing improvement, particularly vacation properties along the central coast and upscale condominiums in the centres of Hanoi and Ho Chi Minh City, Mr Leech said.

Foreign investors are showing more confidence in Vietnam's market than domestic buyers, he added.

"The confidence is with the foreigners," he said. "Foreign developers are sniffing around."

Vietnam has drawn international real estate companies, including CapitaLand and Mapletree Investments.

Prices for condominiums in Hanoi and Ho Chi Minh City were generally little changed in the first quarter with no recovery expected this year, Mr Leech said.

Still, Vietnam will be better off in the long-term with a slow recovery, he said.

"I like this slow return which slowly builds confidence," Mr Leech said. "This is much more sustainable." - Bloomberg

http://www.businesstimes.com.sg/specials/property/delay-seen-vietnam-housing-recovery-cbre-20140404

 

[FHBH12]

Malaysian property transactions dip, but house prices continue to rise
The Star/Asia News Network
Wednesday, Apr 23, 2014

KAJANG - The various cooling measures on the property sector dampened transactions last year, with the volume of properties bought and sold dipping by 10.9 per cent from 2012, even as total value rose 6.7 per cent, a sign that prices did not come down.

According to the Property Market Report 2013 released by the Valuation & Property Services Department, there were 381,130 transactions in the country in 2013 compared with 427,520 the year before, although their value climbed to RM152.37 billion (S$58.61 billion) from RM142.84 billion.

The all house price index edged up to 192.9 against 172.8, and all house prices to an average of RM266,304 from RM241,591.

The residential subsector retained the lion's share of the market at 64.6 per cent of volume and 47.3 per cent of value.

This was buoyed by the prevailing low interest rate environment on the back of a base lending rate of 6.53 per cent and weighted average lending rate of 5.4 per cent.

Last year saw 246,225 residential property transactions and worth RM72.06 billion, which declined 9.7 per cent and rose 6.3 per cent, respectively.

There was a slight decrease in the sales of new launches but the number of overhang properties also dipped.

In the primary market, new launches shrunk after three consecutive years of growth, with 48,617 units of new launches rolled out from 57,162 in 2012. Some 45.1 per cent, or 21,904, of these units were sold.

Five states exceeded the national average take-up, of which three - Putrajaya, Selangor and Pahang - surpassed the 55 per cent mark.

In terms of units launched, Johor, Selangor and Perak topped the list with 20.9 per cent, 13.5 per cent and 11.85 of the national total.

Terraced units made up the bulk of the new launches with 47.8 per cent comprising 9,080 single-storey terraces and 13,273 two to three-storey units.

Condominiums and apartments contributed to 19.1 per cent or 9,265 units. The sales of both these categories stood at 50.9 per cent and 44.8 per cent, respectively.

In terms of value, the Valuation Department said most states saw a downturn in market activity save for Johor, which grew by 16.6 per cent.

Transaction volumes in Putrajaya fell the most by 41.7 per cent, and Kelantan 34.6 per cent, a reversal of its 93.6 per cent growth in 2012. This was followed by Kuala Lumpur (-34.4 per cent), Labuan (-33.9 per cent), Penang (-23.9 per cent) and Selangor (-14.3 per cent).

By market share, Selangor outpaced the other states, contributing to 26.1 per cent of all residential transactions. Johor was next at 13.7 per cent, followed by Perak, Penang and Kedah.

In terms of value, only Kuala Lumpur saw a contraction in value of 9.7 per cent. Johor posted the best growth of 63.2 per cent, Selangor grew 2.8 per cent and Penang saw no growth. Perlis, however, shot up 80.7 per cent from the previous year.

The report said the different market segments as measured by price indicated a divergent scenario.

Transactions in the lower-price range softened last year. Compared with 2012, the market activity of homes in the RM100,000 to RM150,000 and RM150,001 to RM200,000 bracket fell 26.6 per cent and 17.9 per cent, but the RM250,001 to RM300,000 range climbed by 23.2 per cent.

Houses priced between RM100,001 and RM300,000 were the most active, capturing the largest share of the market at 42.9 per cent.

Housing approvals fell sharply by 22.5 per cent from an expansion of 47.4 per cent in 2012, while total loans disbursed for the purchase of residential properties increased to RM74.4 billion from RM64.1 billion.

Deputy Finance Minister Datuk Ahmad Maslan told reporters after the launch yesterday that the goods and services tax, which comes into effect next April, was not expected to raise house prices significantly as the tax was exempted on the home itself.

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- See more at: http://business.asiaone.com/news/ma...use-prices-continue-rise#sthash.2ZmAjQYW.dpuf