Archive for the ‘Property News’ Category

MYDIN Wholesale Hypermarket @ Jalan Baru, Prai

September 15th, 2014 3 comments

If you travelling from Prai to Bukit Mertajam via Jalan Baru, you would probably notice an ongoing construction on your right that stretches over an area of about 200 meters wide. It is the upcoming MYDIN Wholesale Hypermarket, by far the largest in the northern region. Once completed, Jalan Baru is going to be a lot more busier, especially during festive season.

Here are a few ongoing/upcoming residential and commercial projects that could benefit from being connected to the mall via Jalan Baru:

In the following weeks, we are going to share a few more projects being proposed around the same area.

MYDIN Prai Location:

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Highest loan rejections for properties in RM200,000-RM500,000 range

September 13th, 2014 No comments

Property developers have come out with some hard facts that suggest that the sector is cooling off.

According to the first half 2014 Property Industry Survey by the Real Estate and Housing Developers’ Association Malaysia (Rehda), properties in the affordable housing price range below RM1mil have been facing a tough sell largely because of homebuyers’ difficulty in getting financing and a glut of unreleased bumiputra lots.

Also, some 31% of properties in the RM500,001 to RM1mil range were still left unsold after completion in the past three years. These were largely in hot property markets like Selangor and Johor.

Properties in the price range of RM250,000 to RM500,000 also faced the same dilemma, with 34% of the completed units unsold. These were located mainly in Perak and Pahang.

Close to 90% of the respondents experienced a slowdown in property sales due to cooling measures announced in Budget 2014 and over 80% of the respondents of the survey held a “neutral” to “pessimistic” outlook for the first half of 2015.

Rehda president Datuk Seri Fateh Iskandar Mohamed Mansor said demand for property was intact but with the Government’s cooling measures introduced a year ago, developers were finding it difficult to successfully sell in the affordable housing segment.

“A property is a person’s biggest wealth creation asset, yet they can’t seem to own one,” he noted. He suggested that the Government reinstated the developers’ interest bearing scheme for first-time house buyers to allow the working class to own a roof over their head.

The survey found that while 84% of developers were able to get bridging financing for their projects, 53% of their buyers faced challenges getting financing to buy the properties. Among the loan rejections from financial institutions, the highest rate was among home buyers in the RM200,001 to RM500,000 property range.

“We can build but it is a different story for those with the capacity to buy the homes,” he said, adding that the 70% loan-to-value ratio was beyond the capability of many home buyers too.

Hence, Fateh Iskandar appealed to the banks to revisit the guidelines for responsible lending to property buyers.

He further pointed out that for the first time in the recent history of the property sector, less than 50% of units launched were sold in a half-year period.

Of the total 10,189 units launched in the first half of this year, only 49% were taken up. Of that figure, 41% of the launches were in the RM200,001 to RM500,000 price range, mainly located in Johor and Pahang, while 31% were in the range of RM500,001 to RM1mil. This trend was similar to the the second half 2013 period.

At the same time, property developers have had to struggle with the lack of demand for bumiputra lots in locations where bumiputras do not traditionally settle in.

Fateh Iskandar said the authorities’ call to raise the bumiputra quota in property developments up to 70% would only further squeeze developers who would not be able to sell the lots despite their best efforts in marketing the projects to the targeted buyers.

“Demographics and locality can’t be pushed. If you were to ask a non-bumiputra to buy a property in Kampung Datuk Keramat or a bumiputra to buy a house in Jinjang, for example, it’s going to be difficult,” he said. “Yet these quotas are still being put in place everywhere.”

Fateh said developers were supportive of the original quota of 30% bumiputra lots but felt a higher quota would not serve certain locations.

Rehda has suggested for the automatic release of the unsold bumiputra lots in tranches – 10% release every six months from the launch – but this notion has not been taken up by the federal nor state authorities.


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Bulk-buying drives up property prices but not illegal, says D-G

September 9th, 2014 2 comments

Bulk-buying of houses by investors’ clubs is not a sure-fire way for people to make money as they could lose everything if a deal goes bad.

The Urban Wellbeing, Housing and Local Government Ministry’s Housing Department said yesterday there were risks involved for people who joined such investors’ clubs, especially when the price of real estate fell or did not appreciate as hoped.

“Those who took loans from financial institutions face the risk of having their property auctioned off or being declared bankrupt,” said the department’s director-general, Datuk Mohamad Yusoff Ghazali.

Responding to the front page Malay Mail report yesterday on the call by certain groups to ban property bulk-buying, he agreed that the investors clubs’ activities would indirectly cause property prices to surge but pointed out they currently did not contravene any legislation.

In the report, Federation of Malaysian Consumers Association president Datuk Paul Selvaraj said priority should be given to first-time buyers and not to bulk buyers, whom he deemed “property speculators”.

Malaysian Institute of Estate Agents (MIEA) deputy president Erick Kho had also said bulk-buying created an unnatural scenario of demand and supply within the property industry.

Mohamad Yusoff admitted the activities of the investors’ clubs caused a shortage of property in the open market, in addition to inflating prices and causing them to be much higher than the original purchase prices.

“The properties are sold to club members at far lower prices compared with those sold to other buyers,” he said.

“The discounts were from 10 per cent up to 20 per cent off the original price. Those who purchase the properties from club members will pay a premium over the original price.”

Mohamad Yusoff said the ministry had introduced several steps to counter speculative activities in the property market and stabilise housing prices.

“To this end, we have raised the Real Property Gains Tax (RPGT), increased the minimum property purchase price for foreigners to RM1 million, and disallowed developers from implementing projects that have features of Developer Interest Bearing Scheme (DIBS),” he said.

“To increase transparency, we have also required developers to explain in detail the selling price of a property including benefits and incentives offered to buyers.”

Source: The Malay Mail Online

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It is mission possible

September 8th, 2014 No comments

Home sweet home: Visitors viewing some of the house models during the roadshow in Butterworth, Penang.

It took a long time for the Penang Government to start building homes under its affordable housing scheme as it had to save money for the projects, said Chief Minister Lim Guan Eng.

He said the state had allocated RM500mil which was generated from the sale of 41.5ha of land on the island for the scheme.

Lim said the state was working with the Penang Development Corporation (PDC) to build 22,575 affordable homes for Penangites, especially those in the middle and lower- income groups.

“It involves 12 projects in all the five districts in the state. For the three Seberang Prai districts, there will be 16,373 low-cost, low medium-cost and affordable units,” Lim said.

He was launching the Mission:Home Possible roadshow in Taman Lucky, off Jalan Raja Uda in Butterworth for the Bagan parliamentary constituency on Saturday.

This is the second roadshow after the first one held in Komtar on Aug 23 for the Tanjung and Jelutong parliamentary constituencies.

Lim said the roadshow series, which will cover all 13 parliamentary constituencies in the state, would run until December.

Also present were state executive councillors Jagdeep Singh Deo, Phee Boon Poh and Lim Hock Seng as well as Bagan Dalam assemblyman A. Tanasekharan.

It was earlier reported that the roadshow was aimed at informing the public about the state’s affordable housing projects.

The public can also apply for units at these projects or check their application status at the roadshow which is scheduled to be held on Saturdays fortnightly.

Jagdeep, who is state Housing Committee chairman, said the state’s Selection Process Enhancement Committee would select the successful applicants.

To be eligible, applicants must be a Penangite or prove that they have lived in Penang for at least five years, be a registered voter in the state and a first-time house buyer.

Their household income must also not exceed RM2,500 to apply for RM42,000 low-cost homes, RM3,500 for RM72,000 low medium-cost homes and RM6,000 for homes priced RM200,000 and below.

The household income must not be over RM8,000 for homes priced RM300,000 and below and not over RM10,000 for units priced RM400,000 and below.

Jagdeep had said on Aug 23 that there were 51,238 applicants so far of whom 24,399 applied for low-cost units, 23,582 for low medium-cost units and 3,257 for affordable units.

He said the first of the 12 projects to take off was Bandar Cassia Phase One where construction of 149 low medium-cost units and 371 affordable units began last year.

He said the projects in Teluk Kumbar, Jalan S.P. Chelliah, Bandar Cassia Phase Four and Kampung Jawa Butterworth were expected to start by the end of this year.

Projects in Jelutong, Pintasan Cecil, the Sandilands foreshore in Jalan C.Y. Choy, Bandar Cassia Phase Seven, Ampang Jajar, Mak Mandin and Bukit Mertajam were expected to start next year.


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Call for more private developers to help build affordable homes

September 6th, 2014 1 comment

Jagdeep (red tie), Deputy Chief Minister I Datuk Rashid Hasnon (left) and Asia Green Group staff looking at a scale model of The Clovers.

The state government wants more private developers to come on board to build affordable housing units.

Penang Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said that with 22,500 affordable units to be built over the next 10 years, private developers should grab the opportunity to be part of the ventures.

“While the majority of the projects are undertaken by Penang Development Corporation, private-public partnerships can be further enhanced if firms join in,” said Jagdeep.

He was speaking during the groundbreaking ceremony of Asia Green Group’s The Clovers luxury condominiums and Merbah Court low-cost units in Sungai Ara.

The Penang Development Corporation, he said, has started building 540 units in Batu Kawan under the affordable housing project and more would be built over the next few years.

Asia Green director Tan Li Mei said The Clovers would be one of the company’s maiden lifestyle projects.

It will have one of the biggest podium landscaped gardens in Penang which includes a mini forest park and water features.

She said the pricing of RM450 per sq ft would be a boon to buyers as there would definitely be a greater price appreciation of their units when the goods and services tax is implemented next year.

The Clovers consists of 42-storey blocks in the shape of a clover with units ranging from 776sq ft to 1,598sq feet.

“Those who are seeking more comfort and luxury can buy the one of the 24 penthouse units. They range from 1,875 to 2,907sq ft,” said Tan.

Each unit will have two private lifts offering direct and convenient access to individual flats.

Exercise amenities will include three swimming pools (leisure, Olympic and children), a floating gym, forest tracks and a basketball court.

Residents can relax at a large rooftop garden while children will have a play area.

Visitors can hold parties at a barbeque area and there will be dance, game and entertainment rooms as well.

Tan said the CCTV security system and car-only access at The Clovers would give residents a sense of safety and security.

On Merbah Court, Tan said the project comprising 349 low-cost housing units was part of the company’s commitment to the state government’s affordable housing project.

Both The Clovers and Merbah Court are expected to be completed in 18 months.


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