Some developers at the Star Property Fair 2015 were able to register RM79.2mil in sales despite the current economic challenges.

Eco World Development Group Bhd (RM14mil), Asia Green Group (RM5.4mil), Tambun Indah Land Bhd (RM6.8mil), Ideal Property Group (RM10mil), Numestro City Sdn Bhd (RM3mil), and the developers represented by Zeon Properties Sdn Bhd were the ones which recorded good sales.

Zeon chief executive officer Leon Lee said the company sold about RM40mil of properties from the developers it was representing.

The projects exhibited by Zeon were Ewein Zenith’s City of Dreams in Gurney Drive, Aroma Development Sdn Bhd’s Starhill in Sungai Ara, Bionic Land Bhd’s Prominence in Butterworth, Trimension Properties’ GMansion in Bukit Gambier and KB Group’s Sang Sarang in Lumut.

Eco World Development Group Bhd general manager Khoo Teck Chong said the group sold about RM14mil worth of properties in its Eco Meadows (Bukit Tambun) and Eco Terraces (Paya Terubong) projects.

Asia Green Group director Tan Li Mei said the group sold RM5.4mil worth of properties in its project called The Clovers in Sungai Ara.

“We have set a sales target of between RM18mil and RM20mil for the Clovers at the fair.”

Tambun Indah Land executive director Teh Theng Theng said the group had sold about RM6.8mil worth of properties in The Rain Tree and Pearl Harmony projects.

Ideal Property has sold approximately RM10mil worth of properties in its Forest Ville and One Foresta condominium projects in Bayan Lepas.

Nusmetro senior marketing executive Ng Jo Wen said RM3mil worth of properties in the Arte S project in Bukit Gambier were snapped up.

He said about 30% of the Arte S properties exhibited at the fair were priced below RM1mil.

Meanwhile, a Tropicana Ivory Sdn Bhd spokesperson said the more than 80% of the 1,343 Tropicana Bay Residences units had been sold.

“We are now trying to obtain feedback from the public on the popularity of retail and office properties.

“The feedback will help to determine what should be developed for the commercial phase of Penang World City,” the spokesperson said.

Sunway Bhd is showcasing RM628mil worth of properties in its projects in Batu Maung, Bukit Mertajam and Kuala Lumpur.

The projects in Penang are Sunway Cassia double-storey semi-detached houses in Batu Maung, which will be launched in 2016, and Sunway Wellesley three-storey semi-detached houses in Bukit Mertajam.

In Kuala Lumpur, the project is called V Residence Suites with a RM378mil gross development value located in Sunway Velocity, an integrated development.

Source: TheStar.com.my

A proposed mixed residential development by Palmex Industries Sdn. Bhd. (a subsidiary of IOI Properties) in Sungai Ara, Penang. Located along Changkat Sungai Ara 2/A (map shows approximate location), just a stone’s throw away from Setia Pinnacle by SP Setia. This development comprises the following components:

• 3-storey bungalow (1 unit)
• 3-storey semi-detached (6 units)
• 32-storey luxury condominium (198 units)

The condominium will consists of a 5-level multi-story car park with recreational area and facilities located at level 1, 6 & 32.

This project is still pending for approval. Details to be available upon project launch.

Property Project : (to be confirmed)
Location : Sungai Ara, Penang
Property Type : Landed and condominium
Tenure : Freehold
Indicative Price: (to be confirmed)
Total Units : 1 (bungalow), 6 (semi-detached), 198 (condo)
Developer : Palmex Industries Sdn. Bhd.

There are 47 residential projects in Penang with a gross development value of over RM10bil still waiting for the advertising permit and developer licence (APDL) to be released by the Urban Wellbeing, Housing, and Local Government Ministry.

Penang Master Builders & Materials Dealers Association (PMBBMDA) president Datuk Lim Kai Seng said that without the APDL, the developers could not advertise and sell their units.

“If they can’t sell yet, the developers will delay starting construction work, impacting the construction industry.

“In fact since the delay in APDL’s issuance to developers started a year ago, the building and material supply industry has been affected,” he said during the recent PMBBMDA 138th anniversary celebration.

The celebration was launched by state Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow.

Kai Seng said that usually the APDL would be issued within a month after the application.

“Since last year, developers have been waiting several months for it.

“Early this year, there were 87 residential projects in Penang without the APDL.

“Now the number has gone down to 47,” he said.

The PMBBMDA also seeks from the state government job opportunities to be generated by the implementation of the Penang Transport Master Plan.

“In view of the numerous mega projects coming up over the next few years in Penang, we are appealing to Chief Minister Lim Guan Eng to consider allocating certain jobs for local contractors and building materials suppliers.

“We assure him that our members have the necessary contractors and expertise to undertake some of the mega project contracts,” Kai Seng said.

He added that Bank Negara should relax the current stringent loan policy for first-time home buyers.

“Bank Negara should consider allowing banks to provide 100% financing for first-time buyers of affordable homes,” Kai Seng said.

He added that in early 2016, the Penang Island City Council and the Seberang Prai Municipal Council would use the WhatsApp Messenger for monitoring projects through mobile phones.

“This application will enable the council to monitor our construction works more efficiently through photos or videos taken on site.”

Kai Seng also said the Federal Government would adopt the Quality Assessment System in Construction or QLASSIC to measure the quality of workmanship in the construction industry in 2018.

“The QLASSIC is one of the initiatives under the Construction Industry Transformation Programme to improve the construction industry by 2020.

“It’s a method to evaluate the quality of workmanship in construction work,” he said.

Source: TheStar.com.my

Quick chat: (From right) Jagdeep, investPenang general manager Loo Lee Lian, exco member Phee Boon Poh, Penang Chinese Chamber of Commerce vice-president Datuk Finn Choong and Rehda Penang deputy chairman Datuk Toh Chin Leong sharing a light moment after the press conference.

The Penang government has finalised the application procedure and criteria for employees with talent and skills in Penang to own affordable housing units in the state.

State Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said investPenang proposed that the Selection Process Enhance-ment Committee waive the requirement that employees from other states had to have a minimum of five years’ working experience in Penang to qualify for affordable housing.

“The committee has agreed to this as long as the other criteria are met.

“Successful applicants must, however, undertake to work in Penang for a minimum of five years from the date of the handover of keys to their housing unit,” Jagdeep Singh told a press conference at his office in Komtar on Tuesday.

An eligible applicant must also be a registered voter in Penang.

“The applicants must be Malaysians, have not owned any house before and have a maximum household income of not more than RM10,000 per month,” he said.

He said the talent and skills category was launched on Monday after the criteria and application procedure were finalised.

investPenang general manager Loo Lee Lian said applicants for this category must be a degree or diploma holder from a government-recognised institute of higher learning.

They must also have at least two years of working experience, and be employed by companies registered and operating in Penang.

Several representatives from Real Estate & Housing Developers’ Association Penang, Penang Chinese Chamber of Commerce, Penang Indian Chamber of Commerce, Federation of Malaysian Manufacturers Penang branch and others were present at the press conference.

For details, call investPenang at 04-6468833 or state Housing Department at 04-6505241.

Source: TheStar.com.my

They must meet the affordability criteria to avoid debt burden

First-time home buyers should ensure they meet the affordability criteria before buying a home to avoid taking on a debt burden they cannot handle.

Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said banks had provided individuals “many flexible ways” for them to meet the affordability requirements.

“They must, and if they can, demonstrate even if they are sole proprietors and they are not employed in any organisation or corporation that they can prove that they have met the affordability criteria in many different ways. Banks have given that flexibility.

“It’s worse when somebody buys a house and in the end, he or she is not able to have the basic needs because of the debt burden they have taken on,” she said on the sidelines of the Malaysia-OECD High-Level Global Symposium.

She added that it was worse if the first-time home buyer was not able to service the loan in the end. “The house will be repossessed and they can end up in bankruptcy. We certainly don’t want that to happen,” she said.

There have been increasing calls for the central bank to ease the stringent lending policy, especially for first-time home buyers. This is in efforts to reduce the rising number of unsold properties in Malaysia.

National House Buyers Association honorary secretary-general Chang Kim Loong had earlier told StarBiz that Bank Negara could allow a directive for banks to provide 100% financing for first-time house buyers, subject to conditions.

At the moment, property financing for first-time home buyers was based on a case-to-case basis.

However, Zeti said that Bank Negara had always had more flexible policies for first-time home buyers. “What we want is to ensure that the measures we have taken is that houses remain affordable for such first-time home buyers. Therefore, the loan-to-value ratio for first-time home buyers is different,” she said.

Meanwhile, she also said the redemption by foreign investors of maturing Malaysian Government Securities would not impact the country’s foreign reserves.

“No, it won’t impact our foreign reserves because the bonds are ringgit-denominated instruments,” she said.

Malaysia’s domestic institutional investors would support the bond market if there should be a sell-off by foreign investors, she added.

Market talk is that foreign investors might decide not to reinvest, following the expiry of some RM11bil worth of the Government bonds.

“We have our own domestic institutional investors like the Employees Provident Fund, Permodalan Nasional Bhd and Lembaga Tabung Haji. Also, the insurance industry is a major player in the bond market. So, our own institutional investors will step in to purchase these bonds.

“So, we don’t expect any collapse in our bond market,” Zeti said.

She added that the country’s financial system was able to intermediate inflows and outflows very well.

The outflows during the global financial crisis in 2008 and 2009 were much more significant, and Malaysia was able to intermediate those flows, she said.

Source: TheStar.com.my