EcoWorld’s upcoming development @ Batu Kawan, Penang

Premier lifestyle developer Eco World Development Group Bhd (EcoWorld) is optimistic about the overall property market this year, which it expects to improve, partly anchored by factors that include low interest environment and positive buying sentiment.

“I acknowledge that the property market is still challenging. But this year is going to be a positive year, as compared to last year. Despite volatilities from the goods and services tax, we still managed to garner good sales.

“This year, we are confident of achieving our sales target of RM4 billion,” its chief executive officer Datuk Chang Khim Wah (pictured) told reporters, after the company’s extraordinary general meeting here today.

In the financial year ended Oct 31, 2016 (FY2016), EcoWorld clocked in RM3.8 billion sales, with unbilled sales at RM4.9 billion. To date, the group’s unbilled sales, inclusive of subsidiary Eco World International Bhd’s numbers, is at RM6 billion.

“The low interest regime is stable and attractive for the current property market for now,” he added. Currently, Malaysia’s interest rate level, as measured by the overnight policy rate, stands at 3%, after Bank Negara lowered it by 25 basis points on July 13, 2016.

This year, Chang said EcoWorld will be focusing on 17 of its core developments projects that spans across three growth areas: Penang, Klang Valley and Iskandar Malaysia in Johor.

EcoWorld’s upcoming development @ Batu Kawan – Eco Horizon

“We have our hands full with the current projects and that is going to keep us busy for this year,” he said, adding that for now, Eco World has no plans to make a foray into Sabah and Sarawak.

EcoWorld is currently developing some 8,052.7 acres of land, with total gross development value (GDV) of RM87.5 billion. Its undeveloped landbank stands at about 5,500 acres, which an estimated GDV of RM77.5 billion.

“If we are to acquire and replenish more of our landbanks, the price has to be right and the location has to make sense. The land must be situated closer to highways,” Chang said, adding EcoWorld is always on the lookout for exciting opportunities.

On gearing, EcoWorld chief financial officer Datuk Heah Kok Boon said it is still accomodative and relatively stable for the company at the moment, but Eco World is always mindful of it and that it will pare down debts to ensure a healthy balance sheet.

“We will always ensure that our debt and gearing level will be at a comfortable level to ensure the sustainability of our financial position. As and when the need arises, we might want to either gear up or gear down, but we must do it cautiously to ensure that our financial health is always at an optimal level,” Heah added.

As at end-Oct 2016, Eco World’s total interest-bearing borrowings stood at RM2.86 billion, equivalent to 0.76x or 76% in gearing ratio.

Meanwhile, Chang was tightlipped when asked about speculations that Eco World was in talks over a potential merger with Sime Darby Bhd’s property arm.

“No comment,” he said, adding that EcoWorld “does not comment on rumours and market speculation.”

Source: TheEdgeProperty.com.my

Imperial Grande, a mixed development by Modular Platinum Sdn. Bhd. (Ideal Property Group) in Sungai Ara, Penang. It is located along Jalan Fettes, surrounded by Iconic Skies, Gardens Ville and Imperial Residence.

This development will offer a mix of landed and high-rise properties, with 2 level of shop offices located below the residential tower:

• Parcel 1: 3-storey bungalow (37 units), 3-storey semi-detached (6 units)
• Parcel 2: 2 blocks of 46-storey condominium (938 units), shop offices (65 units)

More details to be available upon official launch.

Project Name: Imperial Grande
Location : Sungai Ara, Penang
Property Type : Mixed dveloment
Land Tenure : Freehold
Total Units: 938 (condo), 65 (shop office)
Built-up Area: 1,000 sq.ft. onwards (condo)
Indicative Price : RM475,000 onwards
Developer : Modular Platinum Sdn. Bhd. (Ideal Property)

Location Map:

Progress update by our reader (15 Oct 2018)

Progress update by our reader (26 March 2019)

SITE PROGRESS

SITE PROGRESS: Imperial Grande (Nov 2020)

SITE PROGRESS: Imperial Grande (July 2020)

SITE PROGRESS: Imperial Grande (Mar 2020)

SITE PROGRESS: Imperial Grande (Oct 2019)

The Penang government has extended by six months the validity period of the award letter for SRS Consortium, the project delivery partner (PDP), of the Penang Transport Master Plan (PTMP) project.

The award letter was to expire by the end of this month but will now be valid until June to allow the PDP more time to obtain the necessary approvals from the relevant authorities.

State Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow said the state did not anticipate the long time needed in getting the approvals.

“This is just a technicality and we will continue to extend the award letter until they obtain the necessary approvals from the various authorities for the project,” he said in a press conference yesterday when asked about the issue.

The RM27 billion PTMP is an ambitious undertaking to link Penang Island and the mainland with rail transit systems, new highways, trams, rapid bus routes and water taxis.

Funding the project hinges on reclaiming some 1,618ha of land but approval has to come from the federal government as reclaiming more than 100ha must be referred to the National Physical Planning Council.

In April last year, the state submitted plans for a light railway transit (LRT) system linking Komtar and Bayan Lepas to the Land Public Transport Commission (SPAD).

The LRT line, a Pan Island Link (PIL) highway and the proposed reclamation are the first phase of the PTMP.

In a related issue, Chow said the public display of the PDP request for proposal (RFP) documents has been extended until Feb 28 at the Dewan Sri Pinang.

He said 70 people have viewed the documents to date and feedback from 13 people, questions and suggestions have been recorded.

“Out of the 13, four suggested the display period should be extended,” he said.

Source: TheSunDaily.my

Developers in the state can now choose to settle 60% of contribution charges using corporate guarantees.

Real Estate & Housing Developers Association (Rehda, Penang) chairman Datuk Toh Chin Leong said previously 60% of the contribution in the form of development and infrastructure charges had to be settled using bank guarantees, while the remaining 40% by cash.

“This new policy allow 60% of the amount to be settled using corporate guarantees, while the remaining 40% is settled by cash.

“This help to ease the cash flow situation of developers and will also reduce the risk bridging loans for their projects,” Toh said.

Toh said at a Rehda Chinese New Year dinner that Kuala Lumpur-based and Penang-based developers were now exploring how to best implement projects under the new density guideline, which had increased the density per per acre to 128 units from 87 units.

“The additional 41 units per acre allows the developer to build more 600 sq ft to 700 sq ft units.

“The pricing for these properties is over RM400,000.

“Under the old guideline, developers, due to the lower density of 87 units per acre, have to focus on building larger units of 1,000 to 1,400 sq ft to sell at a higher price to generate a reasonable margin.

“If they build more smaller size units with a lower selling price under the old guideline, they would not be able to generate a decent margin,” Toh said.

On property prices in 2017, Toh expected prices to remain stable.

“There are two factors influencing property prices.

“On the one hand, the development charge of RM15 per sq ft to be paid, and the high cost of land and raw materials will influence developers to raise property prices.

“On the other hand, in order to stay competitive, however, developers would not raise prices drastically.

“They are likely to absorb these charges to be competitive.

“Prices would remain stable due to the soft property market and the difficulty in obtaining a bank loan,” Toh said.

There is also the forthcoming measure requiring the early payment of the stamp duty fee, which requires buyers to fork out the fee – which is usually over 2% of the purchase price of the property upon the signing of the S&P agreement.

Source: TheStar.com.my

More than 60% of potential 1Malaysia Housing Programme or PR1MA homebuyers had to give up their booked units due to problems with end-financing.

Hence, Perbadanan PR1MA Malaysia has come up with a special end-financing scheme to help increase PR1MA homebuyers’ chances of getting home loans.

The new scheme called the Special PR1MA End Financing Scheme (SPEF) is exclusively for PR1MA homebuyers. It is established in collaboration with Bank Negara Malaysia, the Employees Provident Fund (EPF) and four local banks, namely Maybank, CIMB Bank, RHB Bank and Ambank.

“In the first few years, we were very much focused on finding out where the demand was and how many houses we had to build. Today, we are shifting our focus on how to help homebuyers get the financing for their purchase,” said PR1MA CEO Datuk Abdul Mutalib Alias at a media briefing on the new scheme today.

He added that last year, about 60% of PR1MA homebuyers gave up their booked units as they failed to secure housing loans or because the approved loan margin was too low.

“PR1MA has never been about just building homes. By launching this scheme, we hope those who thought that they were not financially eligible to own a PR1MA home previously would give it a try now,” he said.

The cornerstone of SPEF is the step-up financing and the step-up financing with EPF Account 2 withdrawal options. For both of these schemes, in the first five years, only the interest needs to be paid as the principal amount only kicks in from year six onwards until the loan is settled.

The step-up option combined with withdrawals from EPF Account 2 means that homebuyers can have access to a larger loan amount. The partner banks will take the loan applicant’s EPF Account 2 monthly contribution into consideration when calculating the final eligible loan amount. (See example below.)

However, the interest fee for this new scheme will be higher at 4.75% than the average conventional loan of 4.45%.

Abdul Mutalib also stressed that the scheme is subject to certain terms and conditions while eligibility will still depend on the borrower’s risk profile and credit assessment by the banks.

“I hope with this new scheme, we can achieve this year’s target of having 15,000 sales and purchase agreements signed,” he said.

As of January 2017, a total of 260,188 units have been approved by the PR1MA board while some 132,352 units are being constructed. A total of 1.377 million people have registered for PR1MA homes nationwide.

Example of loan eligibility calculation

Special PR1MA end financing scheme

Source: TheEdgeProperty.com.my