Condominium and apartment units priced between RM200,000 and RM300,000 dominate the list of property overhang in the country, mainly contributed by those in Perak and Kedah.

Deputy Finance Minister Datuk Wira Amiruddin Hamzah said condominium and apartment units made up 43 per cent of the total property overhang in the country, whereby a majority of these real estate were in the ‘affordable’ range.

“The indicators of overhang property are important to ensure that the housing supply is consistent with the demand, while the mismatch issue can be minimised.

“Hence, I urge the developers and authorities, who approved project developments and their selling prices to pay attention to the overhang data,” he told a press conference after announcing the real estate market performance in the first half of this year, here today.

Property overhang units must not be confused with unsold stock. The government has defined overhang units as properties that are completed and issued with Certificates of Fitness for Occupation or Temporary Certificates of Fitness for Occupation, but remain unsold despite having been put on the market for at least nine months.

Amiruddin urged developers to build houses that caters to the demand of buyers in terms of the property type, location and price range.

In the first half of this year, 23,591 new residential units were launched, which were 49.4 per cent lower over the same period last year.

Perak recorded the highest new launches with 4,557 units, capturing almost 20 per cent of the national total, followed by Johor (4,233 units), Penang (3,216 units), Kuala Lumpur (2,565 units), and Selangor (2,387 units).

Amiruddin said the residential subsector alone contributed 32,810 units worth RM19.76 billion to the overhang, while the shop subsector overhang contributed 5,760 units valued at RM4.98 billion.

He said the government’s main agenda going forward is to address the need for more affordable housing and finding the right solutions to the property overhang.

The government had taken steps towards that direction with the launch of the National Housing Policy 2.0 and introduction of incentives under the Home Ownership Campaign 2019.

At the event, Amiruddin also launched the Valuation and Property Services Department’s Unsold Property Enquiry System Malaysia (UPESM) 2.0, a system that allows users to get information on real estate in the country.

Soource: Bernama

While the Real Property Gains Tax (RPGT) is not likely to be removed in the upcoming Budget 2020, Alliance Bank Malaysia Bhd expects the rate to be reduced amid the current lacklustre property market conditions.

Group’s chief economist Manokaran Mottain said the current rate at 24% was slightly higher than the average capital gain tax rate in Asean, which stands at 23%.

“We do not expect the RPGT to be removed during Budget 2020 since the RPGT has only been revised recently. The government requires the additional revenue stream from the RPGT, ” he said.

“Removing RPGT will not likely be helpful to address the large property overhang as well, given that the government has already introduced various home ownership programmes to tackle the overhang issue, ” he told StarBiz.

Apart from that, the digital tax that would be implemented next year would likely be introduced at a single-digit rate of around 5% to 7% during the initial stage of implementation, Manokaran said.

He said the digital tax should be implemented at a moderate rate during the initial stage so as not to hinder the growth of the digital economy in Malaysia.

It was noted that the digital economy had been growing at a rapid pace, averaging at 9% annually in value-added terms, between 2010 and 2016.

According to Manokaran, the minimum wage issue would likely be another matter to be considered.

He said the government would likely look into increasing the minimum wage once again to tackle the rising cost of living.

Recall, the minimum wage was last revised in Budget 2019 to RM1,100 per month, effective Jan 1,2019, from RM1,000 per month for Peninsular Malaysia and RM920 per month for Sabah and Sarawak.

On Malaysia being a potential beneficiary over the trade conflict between the United States and China, Manokaran said the government should focus on its developmental budget for the external trade segment, particularly with the infrastructure and trade systems to encourage more trade diversion through Malaysia, as well as ease complications and regulations for foreign investors to reallocate their production and businesses in the country.

Meanwhile, in line with the potential relocation of production facilities outside of China due to trade tensions, OCBC Ltd chief economist Selena Ling expected some tax incentives in Budget 2020 to increase Malaysia’s attractiveness as a foreign direct investment (FDI) destination.

“While Malaysia may not be able to compete well with the likes of populous Indonesia and Vietnam, it has carved out a niche in medium-to-high-end manufacturing sector that is more technologically-focused, such as chipmakers.

“That should be safeguarded and enhanced further with potential tax breaks, among other initiatives.

“This would not only capitalise on the China-relocation impetus, but would also allow the country to ride on the secular technological shift towards the Internet-of-Things era, ” she said.

Ling also expected a degree of fiscal consolidation posture from the government in the upcoming budget, with fiscal deficit coming in at about 3.2% of gross domestic product (GDP) in 2020, which would strike the right balance between fiscal consolidation and the reality of growth slowdown.

According to Manokaran, Malaysia’s GDP would likely to expand 4.5% in 2020, from the expected range of 4.5% to 4.7% this year, driven by the steady services sector and manufacturing sector growth.

“The manufacturing sector is expected to remain resilient and supported by the electrical and electronics industry, despite the fact that the sector is currently being weighed down by headwinds arising from the US-China and Japan-South Korea trade wars, ” Manokaran said.

The agriculture and mining sector, on the other hand, was expected to remain subdued, given the volatility in commodity prices, he added.

As for construction, Manokaran said the sector would likely trend higher in the second half of 2020, due to short-term boosts from approved mega projects such as the East Coast Railway Link, land reclamation works of the Penang Transport Master Plan and Pan Borneo Highway.

Source: TheStar.com.my

Sinaran Avenue @ Utropolis is the third phase of 44.3-acre master-planned Utropolis development by Paramount Property at Batu Kawan, Penang. Strategically located along Bandar Cassia Expressway, about 5 minutes walk to Design Village outlet mall and KDU University College, the first intake of which will commerce Q1 next year. It is only 29km to the Penang International Airport.

This development will feature 16 units of 2-storey shop offices, with a standard built-up size of 3,875 sq.ft. Each unit has an indicative price of RM2.3mil onwards, expected to be ready by 2023.

Project Name : Sinaran Avenue @ Utropolis, Batu Kawan
Location : Batu Kawan, Penang
Property Type : Shop office
Built-up Area : 3,875 sq.ft.
Total Units: 16
Indicative Price: RM2.3mil onwards
Developer : Paramount Property

Location Map:

SITE PROGRESS

SITE PROGRESS: Suasana @ Utropolis (July 2020)

SITE PROGRESS: Utropolis @ Batu Kawan (Dec 2019)

Celesta Residency is a modern and low density with 89 units condominium that exudes a high level of opulent sensation for those who seek for distinctive and luxury lifestyle.

Filled with opulence in every aspect, Celesta Residency exudes great excellence in style fits for individuals and families that long for ultimate luxury and relaxation in lifestyle. The gated and guarded living environment provides soothing freedom with serenity.

Celesta Residency offers a strategic development located along Jalan Sultan Azlan Shah, diagonally opposite three public schools, namely SJK(C) Kwang Hwa, SJK(C) Shih Chung and SMK Sungai Nibong, in the established township of Sungai Nibong.

As the development is under the privilege of Home Ownership Campaign (HOC), it offers an amazing experience to all house buyers. Despite its limited 89 units of residential condominium and the mix of commercial components surrounded, Celesta Residency is a freehold property with residential title.

Celesta Residency takes this opportunity to invite you to their Official Launch on 21-22 of September 2019 (11.00am – 5.00pm) at 1-2-10, Elit Avenue, Jalan Mayang Pasir 3, 11950 Bayan Baru, Penang, understand more of this perfect residency for yourself.

Project Details

• Project Name: Celesta Residency
• Location: Sungai Nibong, Penang
• Property Type: Condominium
• Indicative Price: RM652,800 onwards
• Developer: Red Blue Development Sdn. Bhd. (Subsidiary of TGB Group)

Key features

• Freehold with Residential Title.
• 25-storey Condominium equipped with polished facilities.
• Super low density with 89 units only.
• With only 6 units per floor.
• Gated & guarded development.
• Located exclusively along Jalan Sultan Azlan Shah in the heart of Sungai Nibong is in close proximity to Penang International Airport and Georgetown.
• Prime location of ultimate convenience with amenities such as Queensbay Mall, Setia SPICE Arena, schools, petrol station and many infrastructures located nearby.

If there is any enquiries, feels free to contact us or visit our website:

Contact number: 012-497 0009
Website: www.tgbgroup.com.my

Ideal United Bintang International Berhad (IUBIB) has announced to Bursa Malaysia its proposed acquisition of 1st Avenue Mall in George Town at RM153 million last week.

The company’s subsidiary, I Homes Properties Sdn Bhd (IHomes), entered into a conditional sales and purchase agreement with 1st Avenue Mall Sdn Bhd (1AMSB) for the proposed acquisition of the property located along Magazine Road based on a willing-buyer willing-seller basis.

IUBIB, in a statement issued last week, said the agreement was signed after taking into account the market value of the property of RM220 million and the purchase consideration was at a 30.45 per cent discount of the market value.

1st Avenue Mall, opened nine years ago, has 407,076 sq ft of net lettable space and is sited within the inner city of George Town. It is connected to Komtar and another mall, Prangin Mall, through indoor pedestrian bridges.

In the same announcement, IUBIB said the proposed acquisition will result in the diversion of 25 per cent or more of its consolidated net assets into property investment holding, which is different from its core business of property development operations.

“As such, IUBIB will seek approval from the shareholders of the company at an Extraordinary General Meeting (EGM) for the proposed diversification in conjunction with the proposed acquisition,” it said.

It added that the proposed acquisition is the group’s first venture into property investment holding and it is confident that it will generate positive returns from appreciation in real estate prices and also from rental income from the mall which currently has a 90 per cent occupancy rate.

“The group intends to continue renting out 1st Avenue as a source of income and recognises that the property has potential to be redeveloped in future as it is in a prime location within the city of Penang,” it said.

The proposed acquisition and diversification are subjected to approval of shareholders at an EGM and other relevant authorities.

Source: MalayMail.com