Property developer Eco World Development Group Bhd is confident of hitting its sales target of RM4bil this year after securing more than RM900mil in the first four months of the company’s current financial year ending Oct 31, 2017.

President and chief executive officer Datuk Chang Khim Wah said sales this year would be driven by 15 of the company’s ongoing projects, as well as several new ones planned for launch in the second half of this year.

The company plans to launch Eco Forest and Eco Business Park V in the Klang Valley, as well as Eco Sun and Eco Horizon in Penang.

“We plan to launch the projects either in the third or fourth quarter of this year,” Chang told reporters after the company’s AGM here.

Eco Forest has a gross development value (GDV) of RM3.5bil; Eco Sun and Eco Horizon have a collective GDV of RM7.76bil and Eco Business Park V a GDV of RM2.75bil.

“Going forward, we’re confident of meeting our sales target for 2017,” said Chang.

Eco World’s net profit surged 461% to RM116.17mil in the first quarter ended Jan 31, 2017 compared with RM20.67mil in the same period last year, due to a gain on dilution of its equity interest in Paragon Pinnacle, a unit of the company.

The developer saw revenue for the quarter jumping to RM592.71mil against RM463.51mil previously.

Eco World said the percentage increase in net profit was significantly higher than the percentage increase in revenue mainly due to the inclusion of a gain of RM94.8mil which arose from the application of FRS 10 – consolidated financial statements to recognise the impact of the change in the company’s interest in Paragon Pinnacle from a 100% subsidiary to a 60% joint venture.

This took place following the subscription by the Employees Provident Fund of 40% of Paragon Pinnacle’s enlarged share capital pursuant to the terms of the subscription and shareholders’ agreement between the parties.

Eco World said in the case of Paragon Pinnacle, the successful launch of Eco Grandeur, the development activities and other work performed since the acquisition of the land in Ijok had substantially enhanced the fair value of its underlying assets.

Accordingly, the value of the company’s retained 60% equity interest in Paragon Pinnacle has increased, resulting in the gain being recorded on the day the dilution took place.

For the first four months of the current financial year, the company secured RM955mil in sales, which was 57% higher than the RM607.8mil achieved in the first four months of 2016.

A total of RM797mil was contributed by projects in the Klang Valley, while the remaining RM158mil was from projects in Johor and Penang.

Chang said Eco World’s landbank stood at 8,000 acres, with 55% in the Klang Valley. The company has remaining landbank in Iskandar Malaysia, Johor and Penang.

“About 2,500 acres have already been developed,” he said.

Source: TheStar.com.my

Foreigners buying landed properties in Penang island can now only do so if the property is priced above RM3 million.

The Penang government has agreed to halve the approval fee for foreign purchasers of some stratified properties on the island from three per cent to 1.5 per cent.

The reduction will apply only to stratified properties on the island costing between RM1 million to RM1.5 million, said state executive councillor Jagdeep Singh Deo today.

The state housing development committee chairman said the state exco decided this today after considering proposals by Penang Real Estate and Housing Developers Association (Rehda) last week.

Rehda Penang had proposed to the state to reduce the approval fee to 1.5 per cent and for the state to reduce the minimum price for foreign purchase of stratified properties on the island to RM800,000.

“We will not reduce the cap price for foreign purchase of properties in Penang but instead, we will increase the minimum price for landed properties on the island from RM2 million to RM3 million,” he said.

The state government introduced the measures to curb property speculation by foreigners in 2015, limiting non-citizens to properties above RM2 million for landed properties and RM1 million for stratified properties on the island.

The minimum price for the mainland is RM1 million for landed properties and RM500,000 for stratified properties.

The Penang state government also introduced a three per cent approval fee for all foreign purchase of properties in the state at that time.

Jagdeep told a press conference in Komtar today that all landed property purchases by foreigners will continue to attract the full fee.

“We came to these decisions to protect the locals’ interests,” he said.

He stressed that this decision does not include any reduction in minimum price for industrial properties.

He again reiterated that there are no discounts given to foreigners to purchase properties in Penang, regardless if its industrial, residential or commercial.

Source: TheMalayMailOnline.com

Picture shows the existing Ariza Courtyard Terrace

Ariza Seafront Terraces, the final phase of landed property development by E&O within the mature neighborhood of Seri Tanjung Pinang Phase 1. Located next to E&O’s Sales Gallery, less than 5 minutes walk to Straits Quay retail marina.

This development will offer 32 units of 3-storey freehold terrace homes with a standard built-up of 3,800 sq.ft.. It is similar in architectural design to the highly successful Ariza Courtyard homes that marked Seri Tanjung Pinang’s debut launch in 2005.

More details to be available upon official launch. Register your interest now for early bird invitation.

Project Name: Ariza Seafront Terrace
Location : Seri Tanjung Pinang, Penang
Property Type : 3-storey terrace
Built-up Area: 3,800 sq.ft. onwards
Total Units: 32
Indicative Price: (to be confirmed)
Developer : E&O Property (Penang) Sdn. Bhd.

Location Map:

The sale and transfer of property valued at RM500,000 and below will now be subjected to a 1% conveyancing fee.

Taking effect today, it came about with the revision of the fee structure in the Solicitors’ Remuneration Order by the Bar Council last year.

The revision, which was approved by the Solicitors Cost Committee on Feb 28, will also see 0.8% conveyancing fee for properties worth above RM500,000 but below RM1mil.

Previously, only properties worth RM150,000 and below were subjected to a 1% fee while those costing above RM150,000 and up to RM1mil were imposed with a 0.7% charge.

However, like the old Order, property transactions from licensed housing developers will automatically get between 25% and 35% reduction in fees depending on the value.

This means that for a property worth RM500,000, the new conveyancing fee is RM5,000 but will only come up to RM3,500 following reductions. In the past, the fee was RM2,765.

For a RM1mil property, the fee is RM5,850, up from RM4,842.

According to the association, the sum is calculated by charging the 1% fee on the first RM500,000 before adding the 0.8% fee on the subsequent value. This total is then deducted with the 35% reduction.

Before the revision in March last year, the fee structure had remained the same for the past 11 years.

Bar Council’s conveyancing committee co-chairman Datuk Roger Tan said the revision was “minimal” considering the accumulated inflation in the past decade.

“The changes are minimal and reasonable,” Tan told The Star.

He said it was difficult to find a house worth RM150,000 nowadays, adding that most now sold for at least “half a million ringgit”.

This, said Tan, was the basis for raising the bar for the 1% fee from RM150,000 to RM500,000.

“Even affordable homes now cost around RM300,000,” he said. The previous amendment to the Solicitors’ Remuneration Order was made in 2006.

A calculation by the association also showed that with the revision, conveyancing fees were expected to rise between 8.1% and 26.6% depending on the value of property transaction.

However, this was still lower than the accumulated inflation, which, since 2006, had amounted to at least 33%, said its honorary secretary-general Chang Kim Loong.

“We are of the opinion that the increase in legal fees under the Order for sale and purchase, and loan agreements are still reasonable and justified, taking into consideration the rising costs of living and doing business since 2006,” he said.

Chang said he did not expect the slight rise to set off a “domino effect” on living costs or house prices.

“Most people can only afford to buy one property in their lifetime. A small minority may be lucky enough to afford a second property for long-term investment.

“Such a one-off increase is not expected to impact living expenses every day compared to, say, increase in toll or utility charges which are incurred on a daily basis,” he said.

In Malaysia, both buyers and sellers in a property transaction pay the conveyancing fees to their own lawyers.

However, in some cases where the buyers do not have their own lawyers, the property developers will offer to absorb the costs.

Source: TheStar.com.my

1 City, is an upcoming mixed use development with commercial and residential components by World Corporate Construction Sdn. Bhd. at Bukit Minyak. They are located off Jalan Pinang, just a stone’s throw away from Bukit Minyak Industrial Park.

This development comprises a total 102 units 2 and 3-storey shop offices with indicative price starting from RM750,000 onwards. The residential components of this development is yet to be confirmed.

More details to be available upon official launch.

Project Name : 1 City
Location : Bukit Minyak/Juru, Penang
Property Type : Mixed development
Total Units: 102 (shop office)
Indicative Price: RM750,000 onwards (shop office)
Developer : World Corporate Construction SB./Paramount Garden SB.

Location Map: