PETALING JAYA: While house buyers are seeking more affordable homes, developers do not want to be bound into building low- and medium-cost homes.

In its memorandum to the Finance Ministry, Real Estate and Housing Developers Association (Rehda) said it wanted to develop affordable homes in line with the increased household income instead of being compelled to build low- and low-medium cost units, which it said consumers did not want.

“Unoccupied and excess low-cost units are a waste of resources. They are cross-subsidised by both developers, through lower profit, and lower tax collected by the Government and buyers of non-low cost units, in additional tax,” said Rehda president Datuk Seri Michael Yam.

“They are either vacant or abused by being rented to foreigners. The hardcore poor group, which is falling in numbers, can be housed in the government-built social housing (PPR).”

He said Rehda had also proposed a lower stamp duty, with buyers of cheaper units paying less.

“The ceiling for higher priced units should be lifted as inflation and higher costs have increased the prices of even affordable homes,” he said, adding that more incentives were needed to encourage faster adoption of the Green agenda.

Yam said Rehda had also suggested an auto release mechanism for Bumiputra units, which were not sold after a certain period.

“Penalties should not be imposed for such releases as it is caused by low demand,” he said.

National Housebuyers Associa-tion (HBA) secretary-general Chang Kim Loong said the organisation had not submitted a memorandum for the upcoming Budget as its previous request for the enforcement of the “build-and-sell” system had yet to become a reality.

“Although Sharia-compliant housing using the BTS system was announced in Budget 2012, it is yet to be implemented,” he said.

It was reported that the ministry had approached HBA early this month for recommendations on how to reduce the price of homes.

Among its 10 recommendations, HBA urged the Government to unlock its land banks in various locations and give priority to affordable housing projects instead of high-end properties.

Source: The Star

THE Star Property Fair 2012 from July 12 to July 15 looks set to be a highly visited event with representatives from 40 property developers in-cluding major players like IJM Land Berhad and SP Setia Group attending a briefing.

IJM sales and marketing assistant manager Wan Zahrah Wan Abdullah said the company had been participating in the fair since its inception 10 years ago.

“We are taking part in the fair because it provides us with really good publicity.

“We do not have any new property to launch at the fair but we are expecting a lot of interest for our upcoming projects,” she said after the briefing at the G Hotel yesterday.

SP Setia sales and marketing manager Susie Loh said the company was looking forward to the fair.

She said the company had been taking part in the fair for 10 years.

“The fair always draws in the crowd as it is the largest such fair in the northern region. We have lined up a host of attractive promotions and packages for at least four projects.”

Ivory Properties Group Berhad corporate communications manager Ann Tan said the company would focus on the sale of its project, The Latitude in Mount Erskine, as well as the registration of The Wave at Penang Times Square.

“We look forward to the good turnout at the fair which is the best platform for us to showcase our quality and iconic homes to potential buyers.

“We have also not missed taking part in the fair as it is been a brand of its own and a yearly must- visit event for property buyers and investors,” she said.

Mah Sing Properties Sdn Bhd group central marketing head Jennifer Chow said visitors to the fair would be spoilt for choice as the company’s 11 projects would be featured.

“The fair conincides with our 18th anniversary celebration which started on June 16 and it will carry on until Sept 15.

“One of the highlights of the programme is the 2% ‘low downpayment’ for potential purchasers,” she said.

Chow added that selected banks would also offer pre-approved loan assessment services on the spot.

Sunway Bintang Sdn Berhad senior manager Venus Ho said the company would be featuring six projects in Penang, Ipoh and the Klang Valley during the fair.

“Visitors can register for their preferred projects. We will also be offering special packages for them.”

The briefing was conducted by Star Publications (M) Bhd marketing services executive Eric Voon.

Touted as Malaysia’s premier showcase for stylish living, the three-day property extravaganza will be held at the Gurney Plaza and adjoining G Hotel.

Organised by The Star for the 10th year, the fair will be opened to the public from 10am to 10pm daily. Admission is free.

To date, 43 exhibitors, including financial institutions and investment companies, have confirmed their participation.

Other major players included DNP Land, Oriental Realty, Modular Platinum (Ideal Property), Bukit Kiara Properties, Andaman Property, Henry Butcher, KPWG International, Magna Putih, Province Valley and Tambun Indah Land.

This year’s new faces include Elite Forward, Sunrise Manner, Solid Tribute (Asia Green Group), GSD Land, Quantum Metro Deve-lopment, Zetapark Development, East West One Consortium, PJD Eastern Land, Airmas Management, Property Talk, Avenue Properties and Popular Realty.

A special ‘Star-IJM Contest’ has been lined up for the fair. IJM Land is the official sponsor while Hong Leong Bank is the sponsor for the talks and forums.

Visitors who fill in the form published in the newspapers will be entitled to a lucky dip offering prizes including digital devices and tablets.

A booth will also be set up for those wanting to subscribe to The Star’s newspaper and ePaper bundle.

Source: The Star

GEORGE TOWN: Ivory Properties Group Bhd (IPGB) plans to launch RM1.6bil worth of properties on Penang island in the second half of 2012.

IPGB executive director and chief operating officer Murly Manokharan said these projects comprised the first phase of Bayan Mutiara, which has a gross development volume (GDV) of RM800mil, the third and fourth phases of the residential towers for Penang Times Square (RM300mil GDV), a RM130mil sea-fronting condominium block in Batu Ferringhi, and the RM400mil City Mall and City Residence in Tanjung Tokong.

He said the first phase of Bayan Mutiara involved the development of some 1,500 high-rise units with built-up areas of between 500 sq ft and 600 sq ft each.

“We are negotiating with investors from Japan and Singapore to explore possible joint-venture projects for the commercial portion of this project,” Murly said. The total built-up area for the commercial portion is 2.5 million sq ft to 3 million sq ft.

“We should be able to conclude a deal in the next three months,” he added.

For the condominium block, Murly said the group would position it as a medium to high-end scheme in line with the current demand.

The group plans to build 700 condominium units with sizes ranging from 400 to 1,200 sq ft for its Penang Times Square residential towers. It will develop 80% residential units and 20% commercial lots under the City Mall and City Residence project.

“We are looking at selling each unit of the City Mall and City Residence at between RM700,000 and RM750,000.

Murly said the group would submit the master plan for the entire RM10bil Bayan Mutiara project and reclamation reports to Penang Development Corp in September.

Meanwhile, IPGB chairman and group chief executive officer Datuk Low Eng Hock said the group expected a significant contribution in profit and cash flow from the acquisition of associate company Ivory Villas Sdn Bhd.

“We foresee the positive effect arising from acquisition of the remaining 51% equity interest in Ivory Villas Sdn Bhd for RM40mil upon completion on April 2,” he said.

On the recently launch The Latitude, Low said the response was overwhelming and it had sold out all non-bumiputra units of Tower A of the freehold residential development in Tanjung Tokong. The Latitude has a gross development value of RM163.7mil.

“This luxurious 45-storey tower is conceptualised as an abode that promotes affordable luxury by making mid-sized condominiums in the suburbs an attainable reality for those craving understated elegance.

“The take-up rate for The Latitude is now 70%. The two towers are poised to be the most affordable luxury condominium in Penang,” he said.

Low said construction of the project had begun early this month and scheduled for completion in three years.

For the first quarter ended March 31, the group posted RM3.77mil in pre-tax profit on RM24mil revenue, compared with RM6.3mil and RM27.3mil respectively in the previous year’s corresponding period.

Source: The Star

GEORGE TOWN: Asas Dunia Bhd is launching 1,356 units of landed properties worth approximately RM300mil in gross development value in Seberang Prai from now until the end of 2013, due to the growing interest to invest in properties in Seberang Prai.

The properties comprise largely single- and double-storey properties, priced between RM200,000 to RM600,000.

“We are launching more properties because on top of the trend to buy properties to stay in Seberang Prai, we are also seeing more people buying properties on the mainland for investment.

“They are gradually realising the investment potential of properties in Seberang Prai, as the second bridge is scheduled to be completed soon, and more investments are coming into the industrial park of south Seberang Prai.

“The state government will probably need to expand the Penang Science Park in Bukit Minyak and the industrial estate in Batu Kawan, as there are more small and medium enterprises from Singapore coming into the country,” group managing director Datuk Jerry Chan said after the company’s AGM.

As a result of the demand for properties in Seberang Prai, the price for a double-storey semi-detached house in Bukit Mertajam, for example, has increased to RM1mil from about RM500,000 three years ago.

The price of a double-storey terraced house in Bukit Mertajam town is now about RM450,000, approximately 70% higher than the price three years ago.

“But the RM1mil price for a semi-detached house in Bukit Mertajam is still more attractive than that of a semi-detached property on the island, which is priced between RM2.5mil to RM3.5mil.

“The price of a vacant land per sq ft is between RM20 to RM50 per sq ft, double of what it was two years ago, depending on the location,” he said. For the first quarter ended March 31 2012, the group posted pre-tax profit of RM12mil on the back of RM36.4mil revenue, compared with RM8.6mil and RM29.8mil achieved in the corresponding period the previous year.

Source: The Star

GEORGE TOWN: The Penang Chinese Town Hall (PCTH) has called on the Penang Government to overcome the worsening traffic congestion on the island.

When addressing the town hall’s annual general meeting, its chairman Datuk Lam Wu Chong said this escalating issue was of grave concern to many Penangites.

“It is always a point of contention for Penang. Rapid economic development has not been met with an equal amount of attention given to proper long-term traffic planning.

“Various steps should be taken to manage the traffic,” said Lam.

The issue was raised as one of the motions and it was supported unanimously.

During the dialogue session, a delegate who declined to be named, said Penang saw one of its worst ever road congestions during the recent school holidays.

“Penang is already congested with traffic and with the influx of visiting vehicles, the situation is getting critical. The state and the Federal Governments should do something about this as it is a major turnoff for tourists,” he said.

Lam responded by saying that the state and the Federal Governments should cooperate and find a solution to ease the congestion.

“The funding to construct the proposed Penang Outer Ring Road and the Light Railway Transit or other possible options will ensure a continued pace of development so the people can benefit from them,” he said.

The Government should also restore Penang’s free port status in promoting the state as a centre of international investment. This can further stimulate Penang’s economic growth, he added.

Source: The Star