Archive for the ‘Property News’ Category

More Malaysians now living in posh areas

December 17th, 2012 No comments

PETALING JAYA: Many Malaysians are now occupying high-end condominiums and apartments in prime locations in the Klang Valley, including the KLCC and Mont Kiara areas, which were previously exclusive to mostly expatriates.

The Malaysian Institute of Estate Agents (MIEA), which said it has been seeing a demographic shift in the past 10 years, said gone were the days when areas such as the KLCC and Mont Kiara were home to mostly expatriates.

“Previously, condominiums in the Klang Valley were mostly purchased by investors and rented out to expatriates.

“But in the last 10 years, we have been seeing a shift in this,” said MIEA deputy president Siva Shankar during the MIEA’s 2013 Property Outlook last week.

He said in the past, many Malaysian families preferred to live on landed property.

But that has changed and many Malaysians are now end-users of condominiums in prime locations including the KLCC and Mont Kiara areas.

MIEA president Nixon Paul also said it was a misconception that expatriates were mostly concentrated within the city centre, especially in locations such as KLCC and Mont Kiara.

“Many expatriates today are choosing to live near the international schools.

“Previously, many of these schools were concentrated in the city but now there are a few in the outskirts.

“So we are actually seeing a lot of expatriates moving away from the city centre,” he said.

On the apartment and condominium, residential terraced/detached market in Penang, Raine & Horne Malaysia director Michael Geh said new launches in prime locations are being snapped up at the developer sale price.

He added that strong banking support for developer direct sales made this segment the “strongest moving segment.”

“The secondary condominium and apartment market are facing challenges due to loans offer at lower margins of 70%,” he said in a note at the same event last week.

He said that the commercial and shophouse segment in Penang also experienced strong take-up and steep capital appreciation this year, adding that there was also strong take-up for industrial land and facilities in Penang.

Geh added that asking and transacted prices of development land reached record high levels this year.

“However, newly imposed regulations and guidelines on development have hampered the planning and development process.

“But we believe that this will stabilise in 2013,” he said.

Source: The Star

Categories: Property News Tags:

Property market to remain strong

December 13th, 2012 No comments

THE property market in 2013 is expected to remain strong with prices not likely to drop, said Malaysian Institute of Estate Agents (MIEA) president Nixon Paul. 

He said this year, despite the many misconceptions surrounding the property market, the second half of the year showed that investors were returning, especially in the last two months and the transactions were still strong.

One of the misconceptions which surfaced this year was the oversupply of office space as manufacturing based companies were moving to China.

“And then there was Bank Negara Malaysia’s responsible lending guidelines which affected the market initially but the market bounced back eventually,” he said.

The biggest frustration facing the property market, said Paul, could be the valuation part where banks do not agree with the price already agreed upon by the buyer and seller.

“But other than that, it has been a good year for the property market and will remain that way next year. Prices will generally be stagnant and not likely to drop. In areas where there is land scarcity, prices will go up a bit,” he said.

Paul said this in a MIEA press conference here yesterday.

Echoing his views were Reapfield Properties chief executive officer Gerald Kho who said the last six months have seen an optimistic market sentiment when the property is offered at the right price.

“In the last quarter of 2012, we noticed that investors were starting to come back. My view is that the market will remain strong next year where prices will continue to increase if the stock availability remains tight,” he said.

Kho added that since the responsible lending guidelines were imposed, the quality of buyers remained strong with the last month being a very active month for real estate agents.

“If this continues into the first half of 2013, there is no reason the second half can’t be stronger,” he said.

He pointed out that in 2012, properties were transacting higher by 10 per cent or more than 2011 and this is expected to continue into 2013, especially in the Klang Valley residential property market for both landed and condominium units.

As for the supposedly lack of availability for houses between RM250,000 and RM500,000, Paul said developers maybe shying away from this market but in the secondary market, houses of these prices are still aplenty.

On the Johor market, MIEA state chairman Loo Kung Hoe said the prices for high-end houses have gone up between 20 and 40 per cent this year and he expects an increase of about 10 to 20 per cent next year.

Stephen Tew from Hectares & Stratas said demand for industrial land and buildings have been improving and land values have begun moving-up, albeit slower as Johor is a huge state with plenty of land.

Commenting on the the industrial space and rentals in Penang, he said there is a shortage as the biggest demand comes from the electrical and electronics industry.

Source: Business Times

Categories: Property News Tags:

2013 start for IJM’s RM5bil Penang project

December 12th, 2012 No comments

GEORGE TOWN: IJM Land Bhd will commence work for its RM5bil commercial precinct next to the Penang Bridge in the second half of next year.

Its chief executive officer Datuk Soam Heng Choon said the commercial precinct located on a 102-acre site would comprise four hotels, a shopping centre, a convention centre, and an international business district.

The commercial precinct would be developed in stages and would take seven to eight years to complete, Soam said.

He spoke after signing an agreement with Singapore’s Suntec International to jointly develop the convention centre, known as the RM346mil Penang Waterfront Convention Centre (PWCC).

Also present was Suntec Penang chief executive officer Arun Madhok, who signed for Suntec, and IJM Corp chief executive officer Datuk Teh Kean Ming.

Penang Chief Minister Lim Guan Eng was present to witness the signing ceremony.

Soam said the PWCC was designed by Larry Oltmanns, design director of Vx3, a London-based architectural firm specialising in large scale urban developments and convention centres.

“His impressive portfolio includes landmarks such as NATO headquarters in Brussels and Hong Kong Convention Centre in Victoria Harbour,” Soam added.

The highlight of the convention centre was a 10,000 sq m column-free multi-purpose hall that could be divided or used as a single space for exhibitions, conventions, corporate events, and private functions, Soam said.

“It can be converted into a 9,000-seat arena for world-class concerts that can be held in Penang for the first time.

“The PWCC is expected to be completed in early 2017,” he added.

Meanwhile, Teh said the PWCC would serve as an alternative to renowned convention venues in places such as Kuala Lumpur, Bangkok, Singapore, and Hong Kong.

“The strategic partnership with Suntec will further attract higher investments and spur Penang’s economic, social, and environmental development,” Teh added.

On PWCC, Madhok said Suntec would advise on the design and functionality of PWCC.

“We will also manage the project upon its completion,” he said.

Source: The Star

Categories: Property News Tags:

So are we experiencing a property bubble?

December 10th, 2012 No comments

* Article by Freemen *

It’s official. The property market is sizzling hot. Recent property launches on Penang Island saw Penangites queuing up in the wee hours of the morning hoping to secure a unit. Not surprisingly, all units are snatched up like hot cakes.

It amazes me that these properties are snatched up (sold out) regardless of the ridiculous pricing and the current property market. I admit I was once like that until I met a Property Coach who asked me these questions: “Have you ever asked yourself what you are investing into? Are you investing into fundamentals or are you one of the speculators that contributes to the escalating property prices?”

To know how to invest into fundamentals regardless of the current market, click here

How true! This is a supply and demand market. When the “demand” (that’s us) accepts the asking price, the “supply” usually delivers it.

Now the next question, which properties to buy – primary or secondary market? Both markets seem to be very hot now, aren’t they?

Properties from secondary market are viewed as ready to be occupied and based on “what you see is what you get”. In Malaysia, both primary and secondary property markets offer many choices in terms of property types and range of prices.

On the other hand, primary markets are project developments not yet build up but are already sold and marketed by property developers. If you look around, you will notice that developers are building up more and more new development in the market. Is it good to buy from primary market? Some may perceive it as higher risk compared to secondary market; i.e. risk of developer abandoning projects, fraud, and economy downturn that will affect the completion of the properties.

According to statistics published by National Property Information Centre (NAPIC), the total residential property transactions in 2010 was 181,024 units, with 151,862 units transacted in the secondary market, and 29,162 units from the primary market. Overall, 84% of the units transacted were completed properties from the secondary market.

Landed houses remain the preferred choice of residential accommodation for Penang. The overall existing supply of houses in Penang Island is approximately 35,600 units. Although most of the units are located within the North East District (56%), comparatively larger housing schemes have been launched and completed within South East District (82%).

The condominium market in Penang Island has been bullish. Prices continue to be on an uptrend with brisk sales for most of the newly launched projects. With rentals remaining stable, yields have decreased further amidst the increasing market prices. In the near future, market resilience will be tested as more units are expected to be completed in 2013.

With property prices on the rise and Bank Negara introducing measures to curb property speculation, I tell myself that I must learn how to buy properties. And that is when I meet my Property Coach at a Property Seminar. He taught me how to buy my first property from the Penang market for FREE, even though many said it cannot be done.

At the same, I make almost RM10,000 from this deal. The good news is – I’m not the only one who bought my properties for FREE and made money. My team mates too bought their properties for free AND make money. The recent batch of participants at the No Money Down seminar, has a success rate of 100 % i.e. or every 10 people that attended the property seminar, 10 will buy a property for free.  The Graduates are now working together to negotiate deals with developers and we are establishing a Real Estate Tycoon Club (RTC) in Penang.

My dear friend and Property Coach will be in Penang this coming Saturday, 15th Dec to share with you about the 2013 property market Outlook. To know more about the property sentiments as well as how we buy our properties for free, come on over to Vistana Hotel at 9.30am.

Freemen is an organization which has been training investors since 2008 to benefit from any market. We’ve made 200 individuals more than RM3Million in profit, investing in over RM30Million worth of properties, ALL with no money down! Property Coach from FREEMEN will be in Penang 15 Dec, 2012 in Vistana Hotel at 9.30 am onwards. Book early as we will be expecting a full house.

*SPECIAL OFFER: 1st 17 people to register in for this event will get a FREE map from Ho Chin Soon.

So hurry, learn from the guru and take action now to register here as seats are limited


Categories: Property News Tags:

PR1MA projects in Penang

December 8th, 2012 35 comments

GEORGE TOWN: The dream of middle-income group earners in Penang to own a home will come true in three years, thanks to Prime Minister Datuk Seri Najib Razak and the 1Malaysia People’s Housing Scheme (PR1MA).

Najib is expected to announce several projects for Penang to address the housing shortage in the state during his visit here today at the Jelajah Janji DiTepati carnival at Universiti Sains Malaysia’s (USM) main campus here.

He is also expected to launch the registration exercise for the PR1MA project nationwide, after which online applications can also be made. PR1MA chief executive officer Datuk Abdul Mutalib Alias told a media briefing here yesterday
that the affordable housing project would cover several plots of federal land in Bukit Gelugor.

He said the site, which currently had upscale property developments around it, would see several high-rise units complete with amenities ranging from a day-care centre, open spaces, easy access for public transport and a commercial component.

“The units are expected to be tagged lower than the market price of similar properties in Penang. It’s going to take many by surprise when the prime minister announces the price of the units, considering that similar properties by private developers in the vicinity are between RM500,000 and RM600,000,”he said, adding that it would take 36 months for the project to be completed.

Mutalib also said there would be no quota for Bumiputera buyers as the proposed units were being offered at below market price.

He added that PR1MA had identified seven more locations on Penang island and Seberang Prai for future affordable housing projects.

“We will carry out these projects either via partnerships with other federal agencies or enter into joint ventures with private companies,” he added, saying that PR1MA is discussing with Penang Regional Development Authority and JKP Sdn Bhd.

“We are anticipating a huge demand and the take-up rate may end up being oversubscribed as they do with blue-chip shares,” he said, adding PR1MA was looking to engage with developers to make their properties more affordable.

Illustration of the concept design:

More details available at PR1MA Berhad Official Website

News Source: New Straits Times

Categories: Property News Tags: