Archive for the ‘Property News’ Category

Eco World offers diverse range of products for buyers

June 10th, 2014 10 comments

A miniature model of EcoSky in Klang Valley

With a landbank of 1,793.97ha and total gross development value (GDV) of RM43.52bil, Eco World Development Group Bhd offers a wide range of residential, commercial and industrial products with thoughtful architecture and sustainability elements.

Its current projects are mainly located in the Klang Valley, Iskandar region, and Penang.

In the central, its on-going projects are EcoSky along Jalan Ipoh, EcoMajestic at Semenyih and Saujana Glenmarie in the Glenmarie neighbourhood.

EcoSky, its maiden project in the Klang Valley, is an integrated residential and commercial development on a 3.88ha parcel situated off Jalan Ipoh.

Located 8km away from the city centre, the strategic location enables purchasers to choose between a great view of the Petronas Twin Towers on one side and the famed limestone Batu Caves on the other. The site is served by two KTM stations, namely Taman Wahyu and Batu Caves, with easy access to major highways.

Besides a wide range of facilities to cater to residents’ lifestyle requirements such as recreational facilities, shops, offices and food and beverage outlets, EcoSky will be certified by the Singapore Building and Construction Authority’s Green Mark and US’s Leadership in Energy and Environmental Design on top of certification by Malaysia’s Green Building Index.

Meanwhile, the newly launched EcoMajestic, also its first township in the Klang Valley, is located in the Southern Corridor of Semenyih.

With a land size of 434.23ha, this RM11.14bil-project is set to be the largest strata titled fully gated and guarded township in Malaysia.

Designed with a colonial straits flair, EcoMajestic’s master plan includes 60.7ha dedicated for development as a commercial hub that will make it the business and economic hub that serves Semenyih, Kajang, and Bangi.

Currently, the property player offers affordable landed terrace homes, semi-detached and cluster as well as bungalow land for home buyers at EcoMajestic.

In the Iskandar region, it had launched EcoSpring and EcoSummer while it also introduced Eco Business Park I at a preview.

EcoSpring and EcoSummer are located in the well-established Tebrau corridor and will offer a good mix of affordable and luxury landed homes.

Its first project in the southern state is the 131.52ha-EcoBotanic in Nusajaya, which features a butterfly-shaped lake and 7.2ha central park and houses that are inspired by the colonial era architecture.

In Penang, it plans to unveil the 5.26ha residential and integrated EcoTerraces at Paya Terubong this August. The RM340mil project comprises one block of 41-storey condominium, 47 units of three-storey terrace houses and 12 units of semi-detached houses.


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New housing rules to curb property speculation

June 5th, 2014 21 comments

In a move to further curb property speculation, developers who sell more than four residential units to a single person or a company must now register the purchaser with the housing controller within 14 days of the sale-and-purchase (S&P) agreement being signed.

This new requirement is expected to improve transparency in the housing industry and to keep the prices of houses stable.

A National Housing Department spokesman told theSun the regulation, which was enforced from mid-May, is provided for under the Housing Development (Control and Licensing) Act 1989.

(The housing controller comes under the National Housing Department of the Urban Wellbeing, Housing and Local Government Ministry.)

The spokesman said that to further ensure transparency between developers and buyers, all developers must display in detail the selling price, which includes all free offers of goods, services and payments.

“In this way, should a buyer decide not to accept the offers, the developer has to deduct the amount of the value of the special offers from the sales price,” he added.

The spokesman said developers who fail to comply with this regulation would be liable to face court action. The offence provides for a fine of up to RM20,000 or imprisonment of up to five years or both upon conviction.

He also revealed that as of end-April, 117 developers were on the Urban Wellbeing, Housing and Local Government Ministry’s blacklist for abandoning their projects.

Once blacklisted, the developers and their board members cannot apply for new housing developer’s licences or advertisement and sale permits.

Following amendments to the Housing Development (Control and Licensing) Act 1966 (Act 118), which would come into effect by the end of this year, licensed developers will be charged if they purposely abandon their projects.

They will be liable to a fine of between RM250,000 and RM500,000 or imprisonment of up to three years, or both if convicted, he added.

However, of the 206 private housing projects declared abandoned between 2009 and April 30 this year, 151 had been successfully revived to benefit 23,942 house buyers while 29 projects are in the planning stage for revival while 26 others are in various stages of recovery.

To help prevent developers from abandoning their projects, he said the department will increase the housing developer’s deposit from RM200,000 to 3% of the estimated cost of construction.

“This will help ensure that only developers with strong financial positions are involved in housing development and there will be sufficient funds to revive a housing project if it is abandoned,” he added.

Meanwhile, the spokesman said as of end-May, the department was also monitoring 209 “sick or ailing” projects. These are projects whose completion dates were more than 30% behind schedule or homes that have not been handed over to the buyers by the dates stipulated in their S&P agreements.

To reduce the number of “sick” or ailing projects, he said the department’s private housing monitoring division would act as a mediator or facilitator for problematic projects.

This will be done by:
> coordinating with the relevant parties to resolve the problems;
> conducting regular checks at project sites;
> strict enforcement through fines and blacklisting of errant developers; and
> close monitoring of the housing development accounts.

He said the department had issued 349 compound notices and collected RM2.3 million in fines from errant developers so far this year.

Source: The Sun Daily

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How much will GST impact property prices?

June 3rd, 2014 15 comments

THE predictable announcement by Prime Minister Datuk Seri Najib Tun Razak on Oct 25, 2013 that the Goods and Services Tax (GST) will take effect from April 1, 2015, bundled with several other measures will certainly have an impact on the property market.

Most property developers have started to feel the slowdown in their sales recently and I anticipate that the property market may need at least two years to digest and recover from the various cooling measures that came into effect from this January. After this, I believe that “water will find its own level”.

Nevertheless, the interest in properties by investors is undoubtedly maintained. Apart from the above factors which have caused a pause to investors’ inclination to invest, the other important driving factor is the concern on how GST will impact property prices moving forward.

To understand the effect that GST will have on real estate, it is worthwhile to review the prices of suppliers in the existing supply chain of real estate versus the expected prices moving forward, come April 1, 2015.

It is a given that with the introduction of GST for the first time in Malaysia, there are bound to be uncertainties. Nevertheless, the direction from the Government in treating residential properties as an “exempt supply” and non-residential properties as a “standard rate supply” with GST at 6%, is firm.

As a result, you may be surprised to hear that tax-exempt items such as residential properties will get more expensive even though they fall under exempt supplies.

The reality is that tax-exempt goods are only exempted from GST at the point of sale, that is when residential properties are sold by the developers.

The goods and services which are used by the developers in the making of these tax-exempt goods are not exempt from GST.

For example, residential property is tax-exempt but the materials such as marble, concrete, steel, roof tiles, bricks, sand, cement, wood, electricity and so on are not tax-exempt, which means that developers will almost certainly pass these cost increases to the consumers.

In this regard, I have done a quick simulation on how GST will impact property prices moving forward and have arrived at the following results for non-residential and residential properties.

The following summary of the simulation results is based on three different possible scenarios as follows:

(i) Assuming that the sub-contractor, main contractor as well as the property developer will maintain their original selling prices but will add on a 6% GST to arrive at their final selling price to their customers wherever GST is applicable;

(ii) Assuming that the sub-contractor, main contractor and the property developer will adjust their selling prices according to the actual costs incurred but retain the original profit margin percentage which they used to achieve.

In addition to this, they will add on 6% GST to arrive at the final selling price to their customers wherever GST is applicable; and

(iii) Assuming that the sub-contractor, main contractor as well as the property developer will adjust their selling prices according to the actual costs incurred but retain the actual profit which they used to achieve (as opposed to profit margin in [ii] above).

In addition to this, they will add on 6% GST to arrive at their final selling price to their customers, wherever GST is applicable.

Based on the simulation above, you will note that, with the implementation of GST come April 1, 2015, the estimated final selling price of residential properties as well as non-residential properties will increase accordingly.

However, do note that the above simulation is done with the assumption that all the supply chain entities have the same mind-set when it comes to adjusting their prices according to the scenarios mentioned above. In the event of any party adopting a different approach, the percentage of increase in prices should be changed accordingly.

In a nutshell, given the above GST outcomes for the supply of residential and commercial properties, we can almost be sure that the chances of property prices coming down in the near future should be close to zero.

Hence, will it be worthwhile to invest now rather than later if the opportunities permit?

>> Fennie Lim heads the Crowe Horwath KL Tax Division and has been in the tax profession for the last 22 years. She has a wide range of experience in tax compliance, tax advisory and indirect taxes, and has advised many large local and multinational clients on complex tax engagements.


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Redefining Penang’s skyline

June 3rd, 2014 No comments

Water-themed parks and pockets of lush greenery create a soothing living environment for residents at Penang World City.

The rise of new developments will transform the landscape of the Pearl of the Orient even more dramatically in the years to come.

Penang has become one of the most sought-after areas for residential developments in recent years, thanks to the constantly improving transportation links, political stability, booming manufacturing sectors and the growing appreciation of land. With the latter commodity becoming increasingly scarce, it is amazing to think that an entire metropolis, is set to rise majestically from the island’s south-eastern coast, in the coming years.

Penang WorldCity, a mixed integrated waterfront development spanning 103 acres (42 ha), is poised to transform the area’s skyline. When complete, it will be a modern, mini-international city where residents can enjoy refined lifestyles.

This joint venture project by renowned Penang developer Ivory Properties Group Bhd and Tropicana Corporation Bhd (noted for its successful resort developments in Kuala Lumpur and waterfront developments in Johor) will be developed in phases over the next 10 years. The development will comprise approximately 9,000 units of exclusive lifestyle residences, the majority of which are sized below 1,500 sq ft to cater to homeowners of all income levels.

Water-themed parks and pockets of lush greenery create a soothing living environment for residents while various leisure and recreational amenities like the Performing Arts Centre and Wellness area will enrich residents’ lives.

The planned 1.5mil sq ft development comprising high-end retail outlets, international hotel, grade A offices, a convention centre, an international school and al fresco dining outlets will make it a hub for tourism and commerce.

Indeed, it will be branded as “The Destination” to live, do business and visit in Penang.

This will be a thriving, recreational and commercial centre, where all the action is neatly tucked between the Penang Bridge and the newly opened, Second Penang Bridge, the enclave is a mere 10-minute drive to the Penang International airport.

Various shopping, financial, educational, and healthcare amenities in George Town are just a 20 minutes’ drive away via the Tun Dr. Lim Chong Eu expressway, while the ferry services also provide an alternative means of connection to the mainland. Located even closer, are the Bayan Lepas Free Trade Zone, Queensbay Mall, Pantai Hospital as well as banks, schools and Food and Beverage (F&B) hubs.

Tropicana Bay Residences

The first phase of Penang WorldCity will be Tropicana Bay Residences comprising six blocks of 22-storey condominium towers housing units sized from 455 sq ft to 1,950 sq ft. These are available in eight distinctive layouts.

An impressive drop-off point greets residents and guests alike. Inside, one will find the best of resort style living, with amenities like an overhanging pool, tennis court, saunas and a gymnasium. Conceptualised by an international architect, the development is designed to foster healthy, outdoor living as well as, closer bonds between family and friends.

To date, Tropicana Bay Residences has received a highly positive response since its initial soft launch, with 90% of units of the first four blocks sold thus far.

Block E is now open for registration, with units sized from 872 sq ft to 980 sq ft. The average current selling prices vary from RM769,900 to RM935,900, with an average selling price of RM800 per sq ft.

The Wave

Certain buildings generate a buzz amongst those in the know, even before the construction work has begun. The Wave at Penang Times Square is definitely one such development. The project blueprint features an extraordinary facade of wave-like contours, rhythmically corrugated around each floor of the unique structure. This aesthetically pleasing form is also functional, as it provides protection from the glaring sun. and, at different angles and during various times of day, the reflection of light gives these wavy panels a spectrum of different shades, creating an illusion of the amazing sea and its magnificent corals.

The top component comprises 312 suites occupying 27 floors, which sits on an 11-storey podium comprising car parks, a facilities floor and a commercial retail component.

Units are available in four layouts namely, the corner suites (Type A – 1,250 to 1,290 sq ft), intermediate suites (Type B – 1,300 to 1,345sq ft), penthouse suites (Type C – 2,820 to 2,905 sq ft) and duplex suites (Type D – 2,580 sq ft). The varied layouts enhance the feeling that each unit is a limited edition masterpiece. Types A and B units feature three rooms and two washrooms, while Type C has five rooms and five washrooms. Type D, meanwhile, comes with four rooms and five washrooms.

Its equally impressive facilities include an outdoor Jacuzzi, wading pool, swimming pool, changing room, sauna room, children’s playground, barbeque pit with wash area, landscaped garden, multi-purpose hall, gymnasium room, exercise station and foot reflexology path.

The Peak Residences and The Latitude commercial units

With a limited number of bespoke shop lots, the commercial component of The Peak Residences and The Latitude in Mount Erskine, Tanjung Tokong raises the bar as it is an ideal place for F&B businesses. Serving over 1,500 residential units within the vicinity, these shop lots are a great investment choice as they offer potential for capital appreciation.

For more information, on Penang WorldCity, call 04-6596888, visit the Sales Gallery at Persiaran Bayan Indah in Bayan Lepas, Penang (nearby Queensbay Mall), or log on

For details on other projects, visit Ivory’s new sales gallery in Ivory Tower @ Penang Times Square, located at 81-11-1 Jalan Datuk Keramat from 11am to 6pm daily except Sundays. Otherwise, contact the marketing personnel at 04-2108000 or email to: /


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No compromise on quality of affordable housing project

June 2nd, 2014 12 comments

Important agreement: Murly (second left) exchanging documents with Zaini after the signing ceremony between MBSB and Aspen Group. With them are Nazir (left) and Abdul Halim.

Aspen Group Holdings Sdn Bhd’s RM400mil Tri Pinnacle project will be the first affordable housing scheme on Penang island with a high quality ambience.

Its chief executive officer Datuk Manokharan Murly said the project, located on a 4ha site in Mount Erskine in Tanjung Tokong, was open to first-time house buyers registered with the state government.

It will be launched in the fourth quarter of 2014.

Tri Pinnacle will have 390 units of 650sq ft low medium-cost (LMC) apartments priced at RM72,500 and 859 units of 800sq ft affordable condominiums priced at RM299,000.

Murly was speaking to reporters after signing a RM95.5mil Islamic loan facility with Malaysia Building Society Bhd (MBSB).

Also present were MBSB President and chief executive officer Datuk Zaini Othman, MBSB chairman Tan Sri Abdul Halim Ali and Aspen Group chairman Datuk Seri Nazir Ariff.

Murly added that the state government would expedite the approval process of genuine applicants to buy the condominiums.

The MBSB loan facility will be used to defray the cost of the freehold site for the Tri Pinnacle project, according to Murly.

“We are here to dispel the common negative perception associated with LMC and medium cost (MC) developments which usually suffer from shoddy architectural design and quality, lack of facilities and security,” said Murly.

“Tri Pinnacle will stand out as an attractive spot to work and live.

“Landscaping, designed with vertical gardens, plays a prominent part in the scheme.

“It will create a natural buffer between the adjoining roads and car park podiums, and mitigate the heat effect,” he said.

Murly said the project would be designed with a 24-hour two-tier security access system.

There will be an elevated garden, a swimming pool, a basketball court, gymnasium, BBQ pits and children’s playground.

Meanwhile, Zaini said the collaboration enabled the company to be part of a vibrant project that would contribute to Penang’s property development sector.

“Other than providing financing facilities to Aspen Group, we will also extend an attractive financing package to its home buyers.

“MBSB is managing several property development projects on the island through contract financing, bridging projects as well as structured financing initiatives,” he said.


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