Executive chairman Hamidon Abdullah said he was bullish on next year's outlook, describing the market as buoyant.

Mutiara's new projects in Bandar Sunway, Kajang and Cyberjaya in Selangor and in Butterworth, Penang, are gated communities targeting the middle-to upper-income groups.

They are expected to appeal to buyers looking for a safe and secure environment.

"In my belief, properties are not being offered to the public in a wholesome manner. We have to create a community with proper amenities and landscaping. Then the products will move.
"I do not expect a bubble if we put decent properties in the market for people to live in rather than flip," Hamidon said yesterday in Kuala Lumpur after the company's shareholder meeting.

Mutiara is launching flagship project Nadayu 92 in Kajang, Nadayu 28 in Sunway, Nadayu 290 in Butterworth and an un named project in Cyberjaya.

Hamidon said Nadayu 92 is its attempt to deliver an affordable range in a gated environment and is optimistic of a good response.

Hillside development Nadayu 290 will feature three condo-minium blocks with more than 150 units and seven bungalows, worth more than RM400 million.

Nadayu 290 is touted to set a new benchmark for Penang where green technology is concerned.

"We are working with big international names to integrate green technology into the development. It will be a reference project for Penang, placing us on the map with the big boys," Hamidon said.

In the financial year ended April 30 2010, Mutiara posted RM3.2 million net profit on revenue of RM52.6 million.

SOURCE: Business Times

Bank Negara Malaysia is likely to pause rates again at its next meeting on Nov 12, says Senior Economist at AmResearch, Manokaran Mottain.

"With Bank Negara having frontloaded rate hikes in the earlier part of the year, we see greater flexibility in keeping to a neutral stance. In our opinion, there will be no more hikes over the next three to six months," he said in an economic update report today.

The central bank at its last meeting in September, held the overnight policy rate (OPR)steady at 2.75 per cent.

Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz had cautioned yesterday, that the central bank would not hesitate to intervene in the currency market, if movements in the ringgit became "disorderly".

The ringgit this morning, traded at 3.1000 against the US dollar compared to 3.0940 on Tuesday closing. Year-to-date, the local unit has strengthened nearly 10.5 per cent against the dollar, as investors pump cash into higher-yielding emerging market assets.

"More and more emerging countries are beginning to tighten the noose around speculative activities, as inflow of hot money can cause their currencies to appreciate beyond fundamentals, damaging competitiveness.

"We do not think Bank Negara will resort to any more capital controls, as it will certainly affect investor confidence, at a time when we are attempting to lure foreign direct investments," Manokaran added.

Instead of capital controls, Malaysia, he said, can strengthen the financial market and its reserves while adopting a firmer policy to deter speculative activities in the property market such as putting a cap on the third housing loan or tightening rules on foreigners purchasing residential properties.

This, he explained, can likely discourage the inflow of hot money and the creation of a bubble in certain asset classes.
"The central bank may have to consider unorthodox counter-cyclical measures, even if it means a rate cut," he said.

He highlighted that recent data showed inflation moderating to 1.8 per cent in September, from 2.1 per cent in August, and this further supported Bank Negara's flexibility in containing any asset bubble in the system. — Bernama


SOURCE: Business Times

GEORGE TOWN: SP Setia Bhd plans to launch four new residential projects with an estimated gross sales value RM546mil on the island beginning this December and next year.

SP Setia property (North) general manager S. Rajoo told StarBiz that the projects comprised the RM175mil Setia Greens, RM60.5mil Brook Residences, RM170mil Setia V Residences, and the RM139mil Pearl Villas in the Setia Pearl Island scheme.

Setia Greens, comprising 149 three-storey terraces and 18 semi-detached houses with dual frontage in Sungai Ara, would be launched in December.

“The selling price starts from RM918,000 onwards for terraced units with built-up areas ranging from 2,400sq ft and 3,200sq ft.

“The selling price for the semi-detached units, with built-up areas of around 3,300sq ft, is around RM1.6mil onwards,” he said.

Subsequently the group would launch Brook Residences in February 2011 and the Pearl Villas in April, and Setia V Residences in the second half of next year, Rajoo said.

“The Brook Residences in Brook Road, a prime residential area near Jesselton Road, comprises 11 luxurious bungalows priced from RM5.8mil onwards, while the Pearl Villas comprise 35 bungalows priced from RM2.8mil onwards.

“The Setia V Residences project in Kelawei near Gurney Drive, comprising 67 luxurious condominiums, tentatively priced from RM2.8mil onwards,” he said.

Rajoo said Setia Greens would be the northern region’s first Green Building Index-rated project.

“What makes the project unique are the environmental features such as solar water heater, rain-water harvesting system, water efficient fittings, and cool roof system for each unit.

“We are using a special low-volatile organic compound paint for the project,” he said.

Rajoo said these new projects were targeted at the executives working in the south-west district of the island as well as investors.

For the nine months of SP Setia’s fiscal year ended July 31, 2010, the group’s projects from Penang contributed close to RM150mil or about 10% of the RM1.95bil revenue posted for the nine month period.

“We are confident that the contribution from Penang this fiscal year closing Oct 31, 2010 will hit over 10% of the targeted RM2bil revenue of the group.

“Setia Vista, Reflections condominium, and the new semi-detached launches in Setia Pearl Island contributed significantly from Penang,” he said.

Rajoo said Penang would continue to play an important revenue generating role in the group’s property development business.

“We will continue to look for land in prime locations either to develop on our own or on a joint-venture basis,” he added.

Meanwhile, Henry Butcher (Malaysia) Penang director Dr Teoh Poh Huat said high-end properties were still sustainable in Penang, as there were now overseas Malaysians investing in the island’s property market.

“These are overseas Malaysians earning pounds and US dollars, who are buying high-end properties with the view to come home to stay one day.

“This segment is playing an increasingly important role in the Penang high-end property market developed by branded developers,” he said.

SOURCE: The Star

KUALA LUMPUR: The Housing and Local Government Ministry will propose that the ceiling price of homes that do not require a down-payment for purchase be raised to RM350,000.

Minister Datuk Chor Chee Heung is expected to table the proposal at next week’s Cabinet meeting.

Chor said that raising the ceiling price would benefit more people.

“The request is not unreasonable because for someone to own a house below RM220,000, one would have to travel a bit further even with the highway,” he told reporters yesterday after opening the property fair Mapex 2010.

In his Budget 2011 announcement, Prime Minister Datuk Seri Najib Tun Razak proposed that first-time house buyers with a household income of less than RM3,000 be allowed to obtain a 100% loan if they buy a house for RM220,000 or less.

Yesterday, Real Estate and Housing Developers Association (Rehda) deputy president Datuk Fateh Iskandar urged the Government to consider increasing the ceiling to a more realistic figure like around RM350,000.

“Houses priced at RM220,000 are really hard to come by these days and if this price ceiling is not increased, this particular incentive and inducement will not benefit the rakyat, especially those living within the Klang Valley and Penang,” said Fateh.

He also suggested that instead of looking at the buyers’ household income, their disposable income should be considered.

On another matter, Chor said his ministry was working with the Natural Resources and Environment Ministry on amendments to the Building and Common Property Act.

“We aim to table the amendments in Parliament by March next year with the goal of detailing the boundaries, roles and responsibilities of strata title owners, property managers and developers so that the rights of home owners can be better protected,” he said.

He said the amendments were needed because they would spell out how house owners could exercise their rights under the Act and how many votes a house owner would have if he or she owned more than one unit in the entire building.

SOURCE: The Star

GEORGE TOWN: The state government is reviewing the various charges imposed on residential projects priced between RM300,000 and RM350,000 per unit on the island, and RM200,000 and RM250,000 on the mainland.

Chief Minister Lim Guan Eng said that the move would encourage developers to build more affordable housing.

“Developers should look at areas outside the traditionally popular development spots and focus on new areas such as the southern part of mainland Penang and Batu Kawan, where the second Penang bridge is being built.”

He added that to streamline the development of housing and plan more affordable housing, the state government would be setting up a Penang Housing Board at the next state assembly sitting beginning November 1.

“The proposed housing board will deal with all issues relating to government housing and also play an active role in private housing development,” he said in his speech at the 36th annual dinner of the Real Estate Housing and Developers’ Association (Rehda) last night.

Lim said that for the first half of 2010, the property market activity showed a marginal decline of 0.6% from the second half 2009 which saw 11,858 transactions.

“The value of transactions registered 15.3% growth in the first half 2010 against the second half 2009. “

Rehda (Penang) chairman Datuk Jerry Chan in his speech said Rehda’s theme this year is ‘Greater’.

“This is what we want for the state. Greater in development, greater in job and wealth creation, greater in security and transportation and greater in the delivery system.

“Of course all of us want greater profits (too). However, recently we are seeing greater charges, fees and levies. Greater pain!” he quipped.

Chan said Rehda also wants a better format to process approvals, not speedy rejections because of insufficient time for compliance.

SOURCE: The Star