Despite the trying times, the Penang government is confident that the Penang Real Estate and Housing Developers Association (Rehda) will be able to surmount the challenges.

Chief Minister Chow Kon Yeow said he believed Penang Rehda, through its experiences, would be resilient to face whatever adversities or hardships.

“I think overcoming the challenges will make us all even more resilient. And you are not new to challenges. This industry has always been facing challenges. You have built up resilience,” Chow told a Penang Rehda delegation, led by newly-elected chairman Tan Hun Beng, during a courtesy call on him in Komtar today.

“How to bring Penang Rehda forward despite all these challenges will now rest on Mr Tan’s shoulder.

“For the past 10 over years, Penang Rehda has been a very important stakeholder to the state government and we hope that you will continue to play this role as a bridge between the government and the industry and ultimately to the consumers.”

Also present were state Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo, Penang Rehda immediate past president Datuk Toh Chin Leong, recent past chairman Datuk Jerry Chan Fook Sing, and several other office bearers.

Tan said he was happy to have the opportunity to lead a team to meet up with the chief minister.

“In these challenging times, the housing industry is not doing very well and we’ve to work very, very hard and closely with the state,” said Tan, who is also the IJM Perennial Development Sdn Bhd general manager.

“It’s a very highly regulated business; everything that we are doing needs approval from the authorities, like from road to street lighting, building, planning and infrastructure.

“As we all know, the basic need for every human being is food and shelter.

“So, housing is one of the most essential things and nowadays it is very expensive. We actually have to think of how to make it work for everybody.”

Tan said in Singapore, they allow house buyers to utilise their CPF (Central Provident Fund) to foot their instalment.

He said he had highlighted this creative move in a recent meeting with housing officials, including Bank Negara personnel, so that Malaysians, especially first-time buyers, could be permitted to do the same with their EPF (Employees Provident Fund) and have a comfortable home.

Jagdeep said the state government understands Rehda’s predicament and would come out with a guideline following certain requests made by the association.

He, however, stressed that affordable housing is still the state government’s priority.

Chan thanked the state for considering the difficulties faced by the housing sector at the moment.

“They have come out with certain incentives which we hope will be implemented as soon as possible,” Chan said.

The Penang Rehda office bearers for 2020-22: Tan Hun Beng (chairman), Khoo Teck Chong (deputy chairman), Chan Soo How (secretary), Ron Loh Chin Chuen (assistant secretary), Lau Eng Sim (treasurer); Committee members: Datuk Chan Fock Seng, Datuk David Fong Chin Chong, Datuk Seri Dr Lee Ville, Kelvin Ong Choon Kiat, Ooi Khang Chow and Ng Chin U.

Source: Buletin Mutiara

The widely debated Vacancy Tax on unsold high-end properties will likely not be imposed next year as it is still being reviewed by the Housing and Local Government Ministry (KPKT).

Minister Zuraida Kamaruddin said the proposed tax, which has been presented to the Economic Council meeting for discussion, is not an urgent matter for the ministry to resolve.

“We are reviewing it and it is not our priority currently. Let the developers manage it.

“The Vacancy Tax idea only came around when we thought about unsold high-end properties…and it is not going to be implemented in 2021, we have other mechanisms,” she said.

She was speaking to reporters after launching the Cagamas SRP Bhd’s Digital Skim Rumah Pertamaku (Digital SRP) here today.

According to Zuraida, there are currently 29,000 unsold high-end units worth RM29 billion ringgit.

She said KPKT’s utmost priority is to ease house ownership for the people.

“We want to make sure that the B40 and the M40 income groups will be able to purchase houses in a much easier way through the banks,” she added.

Source: The Edge Market

The Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) has decided to maintain the Overnight Policy Rate (OPR) at 1.75 per cent, the lowest level since it was implemented in 2004.

In a statement, it said the global economy continues to improve, with the easing of containment measures across more economies and strong policy support.

“The re-opening of production facilities has led to a resumption of manufacturing and trade activity, however, the recovery in the services sector has been slower. Financial conditions have improved, although risk aversion remains elevated.

Penang has spent more than RM256mil on maintenance projects involving public housing, local government housing and eligible private housing schemes since 2008.

State housing committee chairman Jagdeep Singh Deo said the amount includes public housing maintenance scheme (RM195mil), state’s Housing Maintenance Maximum 80% Fund (TPM80PP) (RM35mil) and also the maintenance schemes under both local councils (RM25mil) as of September this year.

“Under TPM80PP, the state government has spent RM35.36mil covering 240 applications involving 393 projects.

“The highest scope of work is upgrading or replacing elevators, which accounted to 215 projects, ” he said at a press conference at Mutiara Heights Apartments in Jelutong on Sunday.

Jagdeep added that the state had approved applications for the upgrading of 10 lifts costing RM310,000 at Mutiara Heights Apartments.

“Under the TPM80PP, the joint management body will have to fork out 20% of the project costs to qualify for the 80% state subsidy.

“The JMB will fork out RM62,000 and the state will provide RM248,000.

“The project began last month and is expected to be completed by Feb 8, ” he said.

Mutiara Heights Apartments has two blocks with 1,075 units and was built 16 years ago.

There are 10 lifts and four of them are faulty most of the time.

Meanwhile, Jagdeep also said that the state government is considering increasing the number of affordable housing schemes in view of the current unhealthy economic situation brought on by the Covid-19 pandemic.

“Due to the movement control order, the economy is affected and so has people’s buying power.

“The state government’s target is to provide 180,000 affordable housing units by 2030.

“I have discussed matters with the Chief Minister and we are still in the planning stage.

“We will make an announcement soon, ” he said.

Also at the press conference were Jelutong MP RSN Rayer, Sungai Pinang assemblyman Lim Siew Khim, resident association chairman Muhd Arshad Abdul Rahman and IM Global Property Consultants Sdn Bhd property manager (northern region) Khairuddin Ahmad Khalil.

Source: TheStar.com.my

Suasana @ Utropolis, Batu Kawan

Property developer Paramount Corporation Bhd (PCB) remained bullish on the prospects for the second half of the year despite a rocky first half due to the Covid-19 pandemic and the Movement Control Order (MCO).

“In a nutshell, for the first six months of the year, it’s a washout. But the good news is, as of Aug 31, we recorded sales of RM370 million and a high booking of RM490 million.

“Hence, we are quite surprised by the demand. Mainly, this is thanks to sales agents who are hard at work generating sales even during the MCO,” said PCB CEO Jeffrey Chew at a media briefing today.

He also highlighted that the current low interest rates are a major deciding factor for the homebuyers.

For the 2H2020, Paramount is looking at RM640 million worth of residential property launches (121% higher than 1H2020) that include Greenwoods Salak Tinggi, Sepang; Berkeley Uptown, Klang; Sejati Lakeside, Cyberjaya and Bukit Banyan, Sungai Petani, Kedah.

For 4Q2020, the developer will be looking to launch the new Arinna high-rise development in Shah Alam equipped with smart features.

Future projects in the pipeline include a high rise development in the ‘Embassy Row’ off Jalan Ampang, KL; a transit oriented development in Section 14, PJ; a residential development in Damansara Jaya and the expansion of the Bukit Banyan township.

To recap, PCB had recorded RM193 million of sales for 1H2020. Majority of the sales were contributed by its landed residential developments – Sejati Lakeside (28%), Cyberjaya; Bukit Banyan (20%), Sungai Petani; Greenwood’s Salak Perdana (16%), Sepang, Selangor and Utropolis Batu Kawan (15%), Penang.

Meanwhile unbilled sales stood at RM873 million as of 2Q2020.

Profit before tax and revenue for the property division during 1H2020 stood at RM3.3 million and RM182 million respectively, down 94% and 46% year-on-year. This is attributed to lower construction activities and sales achieved due to the MCO.

Main contributors to 1H2020 revenue for the property division include Bukit Banyan (25%), Greenwoods Salak Perdana (24%) and Utropolis Batu Kawan (19%).

Average take-up rates for the properties stood at 72% for the period.

As for land acquisition, Chew noted that the current stand is Paramount will be looking at RM200 million to RM300 million of acquisition over the next six months to a year.

“We will be sticking to about RM500 million over the next five years from this year, focusing on Klang Valley and Penang,” he said.

As at June 30, 2020, Paramount had 505.1 acres of undeveloped land in the Klang Valley, Kedah and Penang.

Source: EdgeProp.my