First time home buyers who are daunted by soaring prices of residential properties in the Klang Valley should not wait in the hope of a softening in the property market.

Prospective new home buyers may want to take note of rising construction costs that are driving up property prices, as well as possible further interest rate hikes in view of the consumer price inflation hitting a 22-month high of 2.9% in February.

On Wednesday, SP Setia Bhd president and chief executive officer Tan Sri Liew Kee Sin said he expected home prices to rise by at least 10% this year, depending on location, to reflect higher construction costs.

“Property prices will not drop as the costs do not allow this anymore,” said Liew during the Invest Malaysia 2011 conference in Kuala Lumpur.

Meanwhile, a recent report from Hwang DBS Vickers Research says that as a proven inflation hedge, property should remain in demand even with potential interest rate hikes.

The report says while it is believed that the 70% loan-to-value cap managed to cap speculative activities to a certain extent, strong underlying demand from first-second home owners and upgraders has continued to support recent property sales, even at new benchmark prices.

The 70% loan-to-value ratio satisfies Bank Negara’s ruling (announced last November) which requires buyers of third and subsequent residential properties to fork out 30% downpayment.

Also, a recent survey by the Malaysian Institute of Economic Research (Mier) on residential property in the country says an astounding 61% of housing developers who responded to the survey had adjusted their prices of their residential properties upwards in the first quarter of this year – the highest proportion garnered since the third quarter of 2008.

None of the respondents in the survey had lowered their prices.

However, the Mier survey report concludes that pressure exerted by high costs of raw raw materials, fears of rising oil prices, and the interest rate factor could all combine and impact negatively on the sector in the coming months.

“This is likely to impinge on the future growth of outlying areas, and may also dampen the revival process of developments

that are currently suffering from low take-up rates, low population inflow and an overhang problem,” said the report.

SOURCE: The Star

Relaxing bath: Models posing in a whirlpool tub by Modern Depot, which features a touch screen control panel and underwater lighting.

THOUSANDS of homeowners journeyed through a wonderland of great designs, fresh ideas and innovative concepts at Homedec 2011, which kicked off yesterday at the Penang International Sports Arena (PISA) in Relau.

Themed ?Discover Design?, the three-day exhibition provided visitors with vital home knowledge and design ideas, covering all the must-knows and steps to take in order to bring beautiful ideas to reality.

Touted as the most-anticipated event for local homeowners, the event features some 420 booths by 160 exhibitors. Half of those are from Kuala Lumpur, bringing with them the latest and most innovative products.

According to Vincent Lim, president of event organisers C.I.S Network Sdn Bhd, surveys showed that for the majority of homeowners, the renovation and decorating process was one filled with hiccups and setbacks.

?Renovating a home is not an easy task, and expertise is required. Thus, we wanted to equip homeowners with the proper knowledge to ensure that the journey towards their dream home is an enjoyable one.

?Homedec tells owners what they should know,? Lim said, adding that with the vast array of products on offer, it represented a great opportunity for homeowners to get everything they needed under one roof.

He also stressed on the importance of appointing a qualified interior designer who was able to select the right products to match the homeowners? vision, saving precious time and money.

Some 35,000 visitors and sales exceeding RM20 million are expected throughout the exhibition, which covers all aspects of the home.

This edition of Homedec also features ?Living Design?, a special segment on living room furniture which gives visitors ideas on optimum living room layouts. An array of new designs, models, materials, technology and concepts are on display at the Extended Hall, Main Arena Level of PISA.

Visitors should also look out for red stickers which denote new products only on the market since January this year, such as the collapsible attic staircases showcased by Bronte Attic and futuristic fan designs by Alpha Home Appliances.

Also making its debut are the Redux Fabric and Honeycomb Blinds by Curtain Culture. Currently only available in seven countries worldwide, its contemporary design is ideal for urban living while its insulation properties keep the tropical heat out and reduce the need for air conditioning.

In the Homedec Contest, the main sponsors LNP Retails Sdn Bhd will be giving away a grand prize of RM5,000 cash and RM15,000 in Arredo Furniture cash vouchers to one lucky visitor.

Apart from that, there are nine other prizes up for grabs, totalling RM22,000. To be in the running, visitors only need to spend a minimum of RM100 in a single receipt.

Contest participants who spend a minimum of RM500 in a single receipt will also automatically be in the running for RM80,000 in cash rewards.

Consisting of a RM50,000 cash grand prize and three, RM10,000 cash special prizes, it is open to visitors of Homedec exhibitions in Penang, Kuala Lumpur and Johor Baru from April till July 2011.

For more interactive home knowledge, do head over to the Homedec seminars at Function Room B.

Topics for today include ?Choosing the Right Sofa for the Living Room? at noon and ?Top 10 Decor Mistakes in the Living Room? at 2pm.

Tomorrow, talks will be on ?How to Select a Feng Shui Compliant House? at noon and ?Feng Shui in Architecture Interior Design? at 2pm.

The exhibition is open to the public from 11am to 9pm daily. Entry is free. For details, visit www.homedec.com.my or call 016-2332773.

SOURCE: The Star

GEORGE TOWN: The proposed Greater Penang Transformation Programme (GPTP), which is likely to include parts of Kedah and Perak, may study how to improve the agriculture supply chain and logistic efficiencies, among others.

Under the 10th Malaysia Plan, Greater Penang has already been earmarked to benefit from a total investment of RM17.9 billion to upgrade physical infrastructure to enhance access and connectivity.

"This needs to be synergised with the Entry Point Projects of the Economic Transformation Programme to prime Penang as the leading urban centre in the Bay of Bengal and the Indonesia-Malaysia-Thailand Golden Triangle," Minister in the Prime Minister's Department Datuk Seri Idris Jala told Business Times.

Jala is also chief executive officer of the Performance Management and Delivery Unit (Pemandu), which will arrange lab sessions to tackle the GPTP.

Pemandu will do this with the help of Khazanah Nasional Bhd and the Penang state government.

"We expect the four to six-week Greater Penang Transformation Programme (GPTP) lab to begin as soon as possible and have commenced preparations to determine the scope of the lab, organisational roles, processes and participants," he said.

The GPTP may also look at how to boost tourism and education.

"Medical travel and the George Town-Butterworth waterfront development will be a huge boost to the tourism sector," he added.

In education, the lab should review the current and future needs for human capital in the region and seek new initiatives by the private sector to address those needs.

Agencies that may be involved include the Economic Planning Unit, the Northern Corridor Implementation Authority, along with state and local authorities, such as the Penang State Economic Planning Unit and Penang Development Corp.

Others may include infrastructure and utilities firms, learning institutions like Universiti Sains Malaysia, heritage and public-interest bodies, along with industry and business groups such as those involved in property, tourism and industry.

SOURCE: Business Times

Shorefront Residences represents their maiden foray into the Penang market. Situated on Farquhar Road which is located within the Unesco Heritage buffer zone, Shorefront residents can be assured of both exclusivity and prestige wrapped around the charm of old Penang. Located next to the Historical Eastern and Oriental Hotel (est 1885).

Features:

• Prime freehold location
• Low rise, low density
• Own lap pool and view of the sea
• Two units per floor served by two private lifts
• Two car parks for each unit
• Clubhouse with pool, gym and function room facilities

Location : Georgetown, Penang
Property Type : Low rise condominium
Land Tenure : Freehold
Developer : YTL Land
Indicative Price : RM2,800,000 onwards

Aerial view of Seri Tanjung Pinang phase one, showing Straits Quay festive retail mall.The upcoming Quayside Seafront Condominiums is superimposed on this actual site photo.

PETALING JAYA: Eastern & Oriental Bhd (E&O) is targeting to commence reclamation work next year for 740 acres of land in Tanjong Tokong in the north-east coast of Penang for its RM12bil Seri Tanjung Pinang phase two (STP2) development.

Executive director Eric Chan said the group’s subsidiary, Tanjung Pinang Development Sdn Bhd, had received the approval in principle for the masterplan of STP2 from the Jabatan Perancangan Bandar dan Desa Pulau Pinang via a letter dated April 11.

“It should take two years from the start of the land reclamation before the first project launch can be embarked upon.

“Phase two will be a mixed integrated development comprising two islands of approximately 740 acres in size. At three times the size of phase one, phase two is expected to generate RM12bil in gross development value,” Chan told StarBiz.

As in phase one, he said residential property would be the key component in STP2, besides commercial and public spaces.

“In totality, Seri Tanjung Pinang phases one and two will embrace a range of residential, commercial, recreational and leisure properties within an integrated masterplanned development.

“We expect this iconic development to ultimately redefine Penang island on the world map as a vibrant new seafront resort destination to reside, holiday, work and invest,” he added.

Chan said STP2 would take the E&O brand to the next level and support the group’s aspiration to extend the brand regionally and globally.

“The development will also be a symbol of pride and progress, gaining worldwide publicity and prestige; and attract capital inflows and investment, employment and business opportunities, especially for Penang’s tourism. It will complement other major projects to turn the state into a world class city and an international property destination,” he added.

In 1992, TPD was granted the exclusive right to reclaim and develop approximately 980 acres of land in Tanjong Tokong.

It has to date reclaimed and is continuing to develop phase one of the project comprising about 240 acres of land.

The total GDV for phase one of Seri Tanjung Pinang is approximately RM4bil.

The E&O group, through TPD, had sought the state’s approval to reclaim the balance concession area of about 740 acres.

In a filing with Bursa Malaysia on Tuesday, E&O said while the in-principle approval was a vital step towards being able to reclaim the balance concession area, there were other steps still to be undertaken and approvals to be obtained before reclamation works could actually commence.

It said while it was too early to outline the detailed effects of the approval in respect of the masterplan or its implementation timetable, “the board of directors of E&O is of the view that in the longer term, the group will derive substantial benefits with a successful implementation of the in-principle approval.”

On the progress of Seri Tanjung Pinang phase one, Chan said more than 600 landed residential units and 217 serviced suites had already been completed and sold to date. There will also be seven condominium towers.

The landed properties include the Ariza range of courtyard and seafronting terraced houses, Avalon and Acacia semi-detached homes, and the Martinique, Skye and Abrezza villas by-the-sea.

Last February, the first tower of the 21-acre Quayside Seafront Resort Condominiums was launched and another two towers were launched in the last 12 months. The overall take-up of the launched condominiums is about 75%.

Meanwhile, the commercial area includes the Straits Quay festive seafront mall which has 270,000 sq ft of net lettable area; a 7-acre parcel of TESCO hypermarket development and a few other smaller plots.

Chan said since its soft opening last November, the Straits Quay mall had recorded a tenancy occupancy of close to 60%, comprising a myriad of marina-fronting food and beverage outlets, fashion, and lifestyle stores.

SOURCE: The Star