The Malaysian Budget 2021 (Belanjawan 2021) is being tabled by finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in parliament today. Below are some of the highlights pertaining to housing:

1. Full stamp duty exemption on Memorandum of Transfer (MOT) and loan agreement for the first home priced below RM500,000. This is for agreements inked in January 2021 to December 2025;

2. The extension of the stamp duty exemption on loan agreement and MOT given to rescue contractors and original buyers of abandoned and houses for another five years. This exemption is effective for the loan agreements and MOT executed from January 2021 to December 2025 for abandoned housing projects certified by the Ministry of Housing and Local Government (KPKT);

3. RM1.2 billion provision for the construction of comfortable and quality housing for low-income earners:

• RM500 million to build 14,000 housing units under People’s Housing Project (PPR);
• RM315 million for 3,000 units of Rumah Mesra Rakyat built by Syarikat Perumahan Negara Bhd (SPNB);
• RM125 million for maintenance of low and medium-low cost strata-housing and also for upgrading of old houses and those damaged by natural disasters;
• RM310 million for Malaysia Civil Servants Housing Programme (PPAM)

4. Government to cooperate with selected financial institutions to provide a Rent-to-Own scheme. This programme will be implemented until 2022 involving 5,000 PR1MA houses with a total value of more than RM1 billion and reserved for first-time homebuyers.

Source: EdgeProp.my

Roadblocks reported in Waze as at 11:30am today

Penang police yesterday announced a list of 10 roadblocks to be mounted as part of the conditional movement control order (CMCO) to be enforced at the larger Bayan Baru-Bayan Lepas area from today until Nov 19.

Southwest district police chief A Anbalagan said a 328-strong team of officers from the police, armed forces, civil defense, and Rela would be involved.

At the press conference, he urged those living outside the CMCO area but who had to travel into the area to apply for travel permits at their nearest police station.

Those working in the area would only need to show their work passes and authorised letters from their employers, he said.

The CMCO begins at 12.01 am today and end at 11.59 pm on Nov 19. The CMCO covers a 2,670ha area in Mukim 12, Southwest district on the island.

The roadblocks are as follows:

1. Second bridge (entry ramp to Batu Kawan and exit ramp coming out of Batu Kawan into the island)
2. Queensbay (in front of Putra Marine Condominium and Putra Place Condominium)
3. Tun Dr Lim Chong Eu Expressway (Bayan Baru roundabout and across Eastin Hotel)
4. Sungai Nibong (near Shell petrol station towards Pesta grounds)
5. Jalan Datuk Ismail Hashim (both directions; in front of Setia Triangle)
6. Jalan Teluk Kumbar (both directions; near Pavilion Resort)

Source: FreeMalaysiaToday.com

Mekarsari Anggun, the latest addition to Mekarsari by Hunza Properties Berhad, a gated and guarded development at Northern Seberang Perai. Only a mere minutes drive to Bandar Putra Bertam, about 6 minutes’ drive from North-South Expressway via Bertam Toll Plaza.

This development comprises a mix of 2-storey garden home and super-link with built-up size ranges from 2,136 sq.ft. – 2,394 sq.ft. Key features  include spacious built-up and land area, centralised park concept, garden at doorstep, family-oriented facilities, with low maintenance cost.

Project Name: Mekarsari Anggun
Location : Bertam, Kepala Batas
Property Type : Gated & guarded
Tenure : Freehold
Land Area: 1,540 sq.ft. – 1,680 sq.ft.
Built-up Size: 2,136 sq.ft. – 2,394 sq.ft.
Indicative Price: Below RM500k
Developer : Bandar Kepala Batas Sdn. Bhd. (Hunza Group)

Location Map:

Ageson Bhd will launch Prins Bay, a mixed development project comprising a hotel, serviced apartments, and retail shops in Penang next year.

The property and construction company is launching the project in Batu Ferringhi, and the estimated gross development value is RM178 million.

Executive director Datuk Sri Chin Kok Foong told NST Property there will be about 80 units of luxury hotel-managed serviced apartments in Prins Bay.

Chin is upbeat on the development which is located along the seaward side of Jalan Batu Ferringhi.

The location has other well-known hotels and resorts such as Bayview Beach Resort Penang, Hard Rock Hotel Penang, Parkroyal Penang Resort, Holiday Inn Resort Penang, Lone Pine Hotel, Golden Sand Resort Penang by Shangri-La, and Shangri-La’s Rasa Sayang Resort & Spa.

Find out more about Prins Bay

Chin said the target market for the Penang project is young professionals, including engineers, financial accountants, legal advisors, and enterprises.

He said Ageson will introduce the Internet of Things (IoT) concept for the development to get the buyers in.

According to him, IoT features will be a necessity in property development in Penang, using new construction technology such as Building Information modelling (BIM) for better manage construction timeframe and costing.

“IoT features provide an obvious competitive advantage such as better property valuation and user-friendliness, Gen X living styles, safety and luxury feel for the residences,” he said.

Chin said it will take about two to three years to complete the project.

Current projects by Ageson include Sri Gombak, comprising condominium units worth RM50 million collectively, and an affordable housing project in Pahang, with a GDV of about RM100 million

Chin said the two projects are developed using IBS (Industrialised Building System) and they also feature the IoT concept to create value for the purchasers.

“The IBS method and BIM will reduce construction cost, time, and future maintenance cost,” he said.

On future plans, Chin said Ageson will focus on forming a collaboration with government agencies to jointly develop land on a profit-sharing structure.

Chin said Ageson’s next major developments will come from various states.

He said the company is also exploring overseas ventures to expand the property development division.

On the outlook, Chin said despite the economic headwinds, the local property market is expected to remain resilient in the coming year.

“Developing affordable houses and finding the right solutions to the property overhang will continue to be the main agenda of the government,” he said.

Chin said the close monitoring of the implementation of programmes under the National Housing Policy 2.0 (2018 – 2025) and various incentives introduced to promote homeownership among Malaysians are expected to contain the overhang situation in the coming year.

“The competitive advantage that Ageson possesses is our flexibility in the project launches. The joint venture structure allows us to be flexible in the type of projects that we are going to launch, as well as the pricing of the property.

“We have a profit-sharing structure with the landowner and partners with the latest construction technology companies to jointly develop our on-going project,” he said.

Source: NST Online

While no one would know when the COVID-19 will be effectively contained, the pandemic is definitely further dampening the already sluggish property market in Penang since its outbreak in March.

To hear some views from industry experts, an email interview was conducted with Ms. Christina Choong (MIEA Penang Branch Chairman) to discuss the impact of COVID-19 on the property industry and some tips for property buyers.

Q1. As the Penang Branch Chairman of MIEA, from your perspective, how is the Penang property market disrupted due to the Covid-19 pandemic?

Due to the pandemic, the property market is seen to be one of the most impacted among the many business concerns. In Penang, the hospitality industry came to almost a standstill with many related to this industry losing their jobs.

Due to the closed border and traveling being affected and the MM2H program temporarily suspended, the foreign investors have come to a standstill and the rental market is facing a drop in demand.

Rentals for commercial and retail lots have dropped due to the closure of businesses and its demand has decreased and in view of this, the existing tenants are requesting for lower rentals.

Many developers have deferred their project launches as many people are more concerned about their businesses, jobs and income losses than purchasing a property now. We expect some projects under construction to be delayed due to the disrupted MCO period.

Although the Federal and Penang Govt has announced few incentives packages for the property sector, the demand for properties is still dampened resulting in prices to ease slightly.

As they say in any adversity there is an opportunity and the investors may be in for a good bargain as the price easing begins. We see that demand for investment will go up because investing in Real estate is the best hedge against inflation.

For first time buyers, there will never be a better time to invest now because of lower pricing, low interest rates, government incentives and etc.

Q2. It is observed that some developers will be facing strong headwinds ahead, especially those selling midrange products with low-profit margins. What are your thoughts on this?

Developers are facing tough times and the overhang is adding pressure to them. Nevertheless, many developers are taking measures to give incentives & discounts and all these are good for buyers who are looking for opportunities.

Q3. Some are in the opinion that buying directly from the developer is a better option. Can you please share your views?

It all depends on which perspective they come from.

From our perspective, the agents are appointed by developers to reach the consumer, market the product highlighting salient points, and help you to select the best units that meet your needs. They are independent as such they can do a lot more running for you.

The developers know their product well and are more familiar with the location of the development. Sometimes they also help the agents in selecting units for their customers. Most of the developers’ salespeople are housebound and can only do so much as they are mostly salaried. So they may not be able to do a lot more running for you or present different views on other products nearby.

The benefits you get will be the same as the prices and discounts are prefixed.

And now with the State and Federal Govt introducing the economic stimulus packages e.g. reintroducing HOC which received good response in 2019, RPGT exemption, we believe that it would be able to stimulate the property market.

For the secondary market, purchasers are assured that the properties are completed and may be handed over upon completion of sale. Owners are selling it at a competitive price as they are competing with developers.

PART 2: Common property pitfalls and preventive measures.