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Property loans to keep lead

September 5th, 2011 No comments

PETALING JAYA: Analysts expect property loans to maintain their position as a key growth driver of credit expansion with some estimating them to grow between 10% and 12% this year due to the low interest rate environment and ample liquidity in the banking system.

While holding to this view, some feel the external environment, like the slowing US economy coupled with the sovereign debt crisis in the eurozone, could dampen demand for properties.

For the first seven months of this year, property loans remained the key growth driver, accounting for 40.6% of the banking system’s overall credit expansion, followed by working capital loans at 23.6%. Residential property loans currently accounted for about 27% of the system’s total loans.

RAM Ratings head of financial institution ratings Promod Dass told StarBiz that the credit environment to date had continued to be accommodative for borrowers with ample liquidity in the banking system and a stable economic environment. Coupled with attractive promotional packages offered by some developers, he said residential property loans had already shown a healthy 7.1% growth in the seven months to July (or 12.1% annualised), which was more or less at a similar pace compared with the overall total banking system’s year to date loan growth of 7.5%.

“We believe that the full year loan growth for residential property loans will be in the 10%-12% range although we are closely observing the sovereign problems still brewing in Europe as well as concerns on the US economy and the consequent impact on Malaysia’s economic growth stamina, which could affect consumer sentiment in property purchases,” he reckoned.

Dass said that while there was a slowdown in loan applications for residential mortgages in the few months after the implementation of the 70% loan-to-value cap on the third and subsequent house financing, the momentum had picked up again since March.

The move to curb the third and subsequent home financing was introduced by Bank Negara on Nov 2 last year to quell speculation on residential properties.

Alliance Bank Malaysia Bhd consumer banking head Ronnie Lim said he was bullish on property loans. He noted that in Malaysia, housing loans currently accounted for 50% (or RM255bil) of total household debt (RM510bil) and would continue to be one of the key growth drivers of retail credit expansion this year and in the near future.

“One of the main growth areas for properties is Klang Valley, which accounts for close to 60% to 65% of all property transactions. In addition, the population growth in Klang Valley is expected to reach 10 million by 2020 and the demand for residential property is expected to be fuelled by residents of Klang Valley whose average age is 34 years old.

“Coupled with the shortage of land in Klang Valley, demand will always out-strip supply. The economic growth and the low unemployment rate in the country is another catalyst for housing loan growth. The recent Economic Transformation Programme (ETP) announcement will further accelerate demand for residential properties as more affordable properties are being developed,’’ he said.

Lim said prices of properties in Malaysia were still one of the lowest in the region when compared with countries like Thailand, Hong Kong and Singapore. The industry’s total housing loan outstanding stood at RM255bil as of July 2011 compared with RM234bil in December 2010, he noted, adding that this represented a 14% annualised growth.

Given the positive environment and the above factors, Lim said the bank was confident the current growth rate could be maintained despite the recent global market unrest.

An MIDF Research banking analyst said property loans would hold up as a key growth driver of credit expansion this year as the persistent demand for property loans would be driven by low lending rates as well as the sustainable growth of the property market.
SOURCE: The Star

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Exhibition with the best deals in decor and electrical items

September 5th, 2011 No comments

VISITORS to the Perfect Livin ’11 Home & Lifestyle Exhibition at the Penang International Sports Arena (PISA) can expect good deals and discounts on a wide range of home decor and home living products.

The one-stop solution, held until tomorrow, from 11am to 9pm, features more than 400 booths offering hot package deals for home innovation and decoration items, gifts for purchases and discounts.

Creative Novelties Marketing Holdings Sdn Bhd group managing director Datuk Adriana Law said this time around, exhibitors were offering competitive prices to attract a crowd of 80,000 visitors over the three-day event.

“Due to the overwhelming response from our previous exhibition in June, exhibitors will bring in more products, especially mattresses and high-quality landscaping products, to cater to demand,” she said.

She said the exhibition was separated into eight zones to enable visitors to get the best options in improving their home with the latest audio-visual systems and gadgets, security systems, kitchen appliances and unique landscape concepts.

There will be a talk titled ‘Feng Shui for Wealth & Prosperity’ by Grand Master Yap Cheng Hai today from 2pm until 5pm, and children’s colouring contests today and tomorrow.

Admission to the exhibition is free and visitors stand a chance to win a 42-inch Panasonic LCD TV per day.

Visitors who spend RM1,000 and above with accumulated receipts will also receive a gift.

Those who spend RM100 stand a chance to win daily prizes, including Napure mattress, wallpaper or a fibreglass water feature in the ‘Purchase & Win’ contest.

The first 1,000 visitors to click ‘like’ on Perfect Livin’s Facebook page will be given a Tupperware snack cup on a first-come-first-served basis, and will also stand a chance to win a three-day-two-night trip for two to Bangkok.

For details, visit www.perfectlivin.com or connect with the event on Facebook or Twitter at perfectlivin.

Source: The Star

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Bandar Raya: Tie-up with MPHB opens new avenues

September 3rd, 2011 No comments

KUALA LUMPUR: Bandar Raya Developments Bhd (BRDB) says its joint venture with Multi-Purpose Holdings Bhd (MPHB) will open new avenues for the company for land development.

BRDB is seeking opportunities to diversify its development portfolio to grow itself, said its chief marketing officer K.C. Chong.

In April, BRDB's wholly-owned units, Pinggir Mentari Sdn Bhd, Orion Vibrant Sdn Bhd and Magna Senandung Sdn Bhd, signed three separate joint venture agreements with subsidiaries of MPHB – Tibanis Sdn Bhd, Magnum.Com Sdn Bhd and Mimaland Bhd.

The joint venture is centred on developing 268ha in Mimaland, Gombak; Rawang and Penang. It will be the first venture for BRDB in these locations.

BRDB has long been accredited with the establishment of Bukit Bandaraya in Bangsar, Kuala Lumpur. It also has projects in the Kuala Lumpur city centre and Johor.

The company's vision moving forward is to provide the unique Bangsar lifestyle in Rawang, Mimaland and Penang.

Chong told Business Times that the joint venture is working towards launching the projects, with an estimated gross development value of more than RM4.25 billion, after 2012.

"The projects are still in the planning stages. Penang would be our most expensive development. We plan to build luxury houses and condominiums, worth more than RM1 million each," Chong said.

In Rawang, the joint venture is planning to build mixed residential properties and a commercial hub.

Chong said the development planned for Mimaland will be the most exciting as it would change the area's landscape.

Mimaland was once a famous recreation park. It opened in 1975 and ceased operations in 1993, following some unresolved plans for expansion.

The joint venture project will include eco-friendly hillside, courtyard and waterfront landed homes set among natural waterways, valleys and water bodies with mature forest views.

Chong said properties at its Rawang and Mimaland projects will start from RM500,000.

SOURCE: Business Times

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Exco man: 95 people offered Sri Saujana units

August 31st, 2011 No comments

THE Penang Housing Department has offered 95 people units at the Sri Saujana flats on Macal- lum Street, and they will move in after their bank loans have been approved.

State Town and Country Planning, Housing and Arts Committee chairman Wong Hon Wai said these people were squatters and residents affected by the Sungai Pinang flood mitigation project.

He was responding to a query by Pengkalan Kota Barisan Nasional coordinator Loke Poh Chye on why 324 low medium-cost units at the Sri Saujana flats had been left empty.

Wong in a statement said the remaining units would be offered to eligible applicants next month.

Loke had said that it was important for the state to fill up the empty units, as they would not only turn into breeding grounds for mosquitoes but also attract drug addicts, who might use the units as their haunt.

Source: The Star

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Patriotism on display Revellers usher in National Day in style at Auto-City

August 31st, 2011 No comments

BUKIT MERTAJAM: Thousands of people converged at the Auto-City in Juru here to usher in National Day.

Merrymakers, shoppers and diners gathered at the venue as early as 7.30pm yesterday to be part of the celebration which was among the highlights of the three-day 2011 GLANZ Merdeka Living Green, Beauty and Health Carnival which ends tomorrow.

A host of events was held to keep the crowd entertained till the countdown which began 10 seconds before midnight.

Penang Health, Welfare, Environ-ment and Caring Society Committee chairman Phee Boon Poh joined Highway Auto-City managing di-rector Gary Teoh and representatives from several sponsors on stage to lead the countdown while waving mini Jalur Gemilang.

The crowd was also thrilled with celebrity appearances and perfor-mances by, among others, Miss World Malaysia 2008 winner Soo Wincci, Bossa Princess Z Yan, and singer, songwriter and TV host Gary Yap.

The three-day carnival was orga-nised by Junior Chamber Interna-tional (JCI) Butterworth City and managed by Glanz Event Manage-ment in conjunction with the National Day.

Other highlights of the carnival is the Miss Glanz beauty contest, a teh tarik competition, a song composing competition and a recycling competition for children.

There is also an exhibition featuring more than 30 booths which, among others, showcase healthcare and lifestyle products, properties and automative supplies. The carnival will be open from 4pm to midnight today and tomorrow. Admis-sion is free.



SOURCE: The Star

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