Archive for the ‘Property News’ Category

Dijaya aims to launch RM1.1b worth of projects

February 10th, 2012 No comments

title=PROPERTY developer Dijaya Corp Bhd aims to launch RM1.1 billion worth of projects this year after accumulating land for development in the past 18 months.

Last year, the master property developer of Tropicana Golf & Country Resort and Tropicana Indah Resort Homes in Petaling Jaya only launched RM700 million worth of properties.

"For 2012, we are targeting sales between RM650 million and RM700 million. It is a conservative target but we hope to achieve more than that," Dijaya managing director Datuk Tong Kien Onn told pressmen after the company's extraordinary general meeting in Petaling Jaya yesterday.

Last year, Dijaya sold about RM420 million of properties.

"Dijaya will be launching many new projects this year and next year on lands that we have purchased over the last one-and-a-half years.

"The total gross development value (GDV) of these lands works out to around RM28 billion," said Tong, adding that the group's total undeveloped landbank area is 324ha.

Among the projects in the pipeline this year are within its flagship Tropicana project in Petaling Jaya as well as in Subang, Cheras, Johor Baru and Penang.

In the third quarter this year, Dijaya will be launching two new projects in Tropicana Indah Resort Homes, namely Golf Villas and Tropicana Gardens.

The RM1.8 billion Tropicana Gardens commercial centre features SoHo units, offices, service apartments, offices, a hotel and lifestyle retail space.

Dijaya aims to develop 5.6ha of the lakefront project over a period of between six to eight years, and the first phase will involve RM200 million GDV.

In Subang, Dijaya had bought 35.4ha for RM385.5 million in 2010 with plans to build three-storey link, semi-detached and bungalow houses, condominiums as well as commercial development.

Dijaya aims to make a huge footprint in Johor's property market with the second project called Tropicana Danga Cove with a total GDV of RM2.8 billion. The construction of the 10-year project is targeted to commence by first half of this year.

On the horizon, due to the limited landbank within the Tropicana development, Dijaya has plans to develop bungalows, link houses and semi-detached units at Tropicana Cheras and Tropicana Balakong.

The acquired landbank in Sungai Long, Cheras and Balakong have an estimated GDV of RM185 million and RM400 million, respectively.

Yesterday, shareholders of Dijaya approved the company's plans to enter into a joint venture with Ivory Properties Group Bhd to buy and develop a 41.02ha site in Bayan Mutiara, Penang.

Tropicana Ivory Sdn Bhd, 51 per cent owned by Dijaya, will invest RM10 billion in a mixed residential and commercial property project that will keep the company busy for eight to 12 years.

SOURCE: Business Times

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Hua Yang to raise RM100m to buy land

February 9th, 2012 No comments

Property developer, Hua Yang Bhd, plans to raise RM100 million capital to fund its land acquisition activities this year.

Chief executive officer Ho Wen Yan said the amount was three times the size of capital expenditure (capex) spent last year for buying land.

“With the RM100 million capex, we are hoping to generate RM800 million to RM1 billion in gross development value,” he told reporters at a media luncheon here today.

The developer is eyeing to acquire up to 300 acres of land in
Penang and Sabah for township development.

However, the fund-raising exercise was still being discussed and has not been determined yet, Ho said.

To date, Hua Yang has a total landbank of 780 acres in Johor, Perak, the Klang Valley and Negeri Sembilan worth RM2.4 billion.

On the company’s outlook for this year, he said Hua Yang is
expected to remain strong despite the softening demand for properties in some areas in Kuala Lumpur city centre and Klang Valley.

“Generally, affordable housing, which is our segment, will remain
strong in the upcoming year,” he said.

Among the factors that would contribute to Hua Yang’s performance in 2012 are its ability to maintain low cost structure and the location of its developments, which are not in the high-priced prime areas.

In another development, Ho said the company is expected to declare a better dividend payout this financial year ending March 31 compared to 7.5 sen last year.

“We don’t have a fixed dividend policy but typically we return up to 25 per cent of net profit back to shareholders,” he said, adding the absence of a fixed dividend policy provides the company the flexibility to grow. — Bernama

SOURCE: Business Times

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Tighter lending rules

February 7th, 2012 No comments

PETALING JAYA: Personal loans, which form part of household loans, are expected to grow 15% this year – a relatively slower pace than last year on stricter household lending rules coupled with external headwinds that impact economic growth.

Malaysian Rating Corp Bhd chief economist Nor Zahidi Alias expected a moderation in economic activity and stricter lending rules by banks.

“The growth in personal loans will still be relatively strong this year albeit slower than in 2011 as banks tighten their lending rules in response to slower economic growth.

“Although bad debt as a percentage of total debt has not increased in recent times, banks will likely be more cautious for several reasons.

“This takes into account a more moderate gross domestic product (GDP) growth this year .

“We foresee a GDP growth of 4.4% in 2012, which is lower than the Government’s projection of 5% to 6%,” Nor Zahidi told StarBiz.

“As such, some segments of the labour market may be affected.

“The high household debt as a percentage of GDP (in Malaysia’s case, it is more than 75% of GDP) means that the household sector’s balance sheet is somewhat overstretched.

“This is the reason why Bank Negara undertook measures, among others, to impose a lower loan-to-value ratio for the purchase of third and subsequent properties and lower credit limits for users whose incomes are below RM3,000 per month,” Nor Zahidi said.

According to Bank Negara statistics, loans provided by commercial and Islamic banks for “personal use” increased by 20.2% to RM50.8bil as at end-December 2011 from RM42.3bil a year ago.

At the end of December 2010, the growth in loans provided for personal use by these institutions moderated to 13.5% following the recession in 2009.

As a whole, the amount of loans given out by these institutions have surged from RM23.2bil at the end of 2006 to RM50.8bil at end of 2011, an increase of 119% in five years.

The household sector remained the strongest growth contributor, making up 55% of the banking system’s loans. At end-November 2011, personal loans accounted for some 5% of the system’s loans.

RAM Ratings head of financial institution ratings Wong Yin Ching said the central bank had been proactive in implementing certain targeted measures with respect to household lending to encourage greater financial prudence among individuals since 2010.

She said banks were required to assess potential borrowers’ repayment capabilities based on their net instead of gross income; with stricter regulations and more cautious consumer sentiment, the rating agency expected loans growth for the household sector to moderate this year.

Wong added: “The likelihood of a recession in Europe this year would also dampen external demand, negatively affecting our exports and industrial production.

“Projects under the Economic Transformation Programme and 10th Malaysia Plan might spur financing growth although this will depend on the pace of the roll-outs. Overall, we estimate total loans growth for the domestic banking system at 8% to 9% in 2012.”

Many analysts expect the responsible lending guidelines, which came into effect since Jan 1, would help to slow down the growth in personal loans.

Among others, the guidelines would require banks to use net income to calculate the debt service ratio for loan approvals.

“Up to December, the guidelines did not slow down personal loans growth which was still picking up. But over the next few months, it would likely show some impact,” an analyst noted.

The guidelines cover housing, personal and car loans, credit cards, receivables and loans for the purchase of securities.

OCBC Bank (M) Bhd projects a double-digit growth in personal loans this year, similar to that of last year; OCBC’s personal loans portfolio was still small but growing, its country chief risk officer Choo Yee Kwan said.

Choo said OCBC had always exercised a prudent approach in assessing the affordability and repayment capacity of borrowers as well as the suitability of products for borrowers in its credit assessments.

“Loans growth will be negatively impacted, to some extent, in the event that external or domestic economic conditions take a turn for the worse. This also depends on the severity of such a downturn in the economic cycle,” he said.

SOURCE: The Star

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Spacious condo units a big draw at open house

February 6th, 2012 No comments

VISITORS had plenty to see and do at a Chinese New Year open house held at the Mah Sing Group’s sales gallery in Batu Maung, Pe-nang.

Besides a dragon dance per- formance, the God of Prosperity made an appearance to give out candies to guests.

There was also a calligraphy demonstration while a dough figurine maker thrilled the children with his skills in creating colourful figures from Chinese legends.

Those seeking life predic- tions headed to a fortune teller’s booth.

But the biggest draw were the condominium show units of the Southbay Plaza project showcased by the company at the event on Saturday.

Many guests took the opportunity to have a look at the spacious units which are priced from RM811,000.

Mah Sing is building two blocks of condominium units as part of the project slated for completion in mid-2015.

“Response towards the project has been very good,” said Mah Sing deputy general manager Yeoh Chee Beng.

Mah Sing senior marketing manager Venus Ho said 80% of the 106 units at Tower A had been sold while only 40% of the 100 units at Tower B were still available.

The show units are open for viewing from 10am to 5.30pm daily.

For more information, call the sales gallery (04-6288188) or Yeoh (012-4103255).

Source: The Star

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Second Penang link to be ready sooner

February 2nd, 2012 No comments

GEORGE TOWN: The second Penang bridge is 3% ahead of schedule and is expected to be ready by October next year, said Chief Minister Lim Guan Eng.

He said the construction work was proceeding well.

“Although the bridge was expected to be ready in 2014, it is now expected to be completed earlier based on the progress of construction,” he said at a press conference here yesterday.

Lim said that according to completion schedule, the progress of construction was supposed to be 67.71% but it had reached 70.7%.

In October last year, Works Minister Datuk Seri Shaziman Abu Mansor had said the bridge was 65% completed and expected to be ready earlier than its November 2013 deadline.

He expressed confidence the project would be ready two months earlier than scheduled.

On another matter, Lim said the handing out of white ang pow during Perkasa’s Chinese New Year open house at Kampung Baru, Kuala Lumpur, was an insult to the Chinese community.

Source: The Star

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