The weakening ringgit has resulted in an increase of 20-25% in the cost of some construction materials, said the Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Seri Fateh Iskandar Mohamed Mansor.

“The cost of certain construction materials has actually gone up. For residential units, if you talk about landed properties, it (the cost) shouldn’t be higher because the majority of the construction materials would be locally sourced.

“However, if you talk about high-rises, items like lifts, escalators, precisioning and air-conditioning are still imported,” he told reporters at a press conference last Friday at the presentation of Rehda’s Property Industry Survey for the first half of 2014.

Fateh Iskandar said the cost of these imported items has increased by 20-25% as suppliers are asking to review the rates due to the weakening ringgit, despite prices being locked in six months ago.

He said any increase in prices of landed residential properties would be minimal.

“For commercial and high-rises, there will be a little bit of increase. As you can see in the survey, 67% of developers said they try to absorb whatever increase they can. It’s only when we cannot withstand the cost that the price will eventually be passed on to consumers,” he said.

Fateh Iskandar said property developers should take the opportunity to promote Malaysia’s higher end properties to foreigners as they are good buys for them in view of the weakening ringgit.

“Definitely we should promote some of our properties to foreigners because it is a good buy for them, the properties have not actually gone down in value and usually when they buy in good areas, they will actually go up. Because of the strengthening of their currencies, definitely they’ve already made some gain in terms of currency exchange,” he said.

However, he stressed that these properties to be promoted to foreign buyers are only in certain areas and of certain types, and exclude affordable homes which are meant for locals.

“I’m talking about the higher end ones that Malaysians say are a bit expensive now due to the current situation. So allow the RM2 million to RM3 million condos (to be promoted to foreigners). We should promote this. We can also probably work with the respective agencies,” he said.

Rehda immediate past president Datuk Seri Michael Yam said the various conditions imposed by various state governments on foreign buyers do not encourage foreigners to buy in Malaysia.

“Yet Malaysians are buying in Melbourne and London. For every unit we buy there, 10 local units need to be sold. I think you have to make a fair statement in the sense that, since the foreigners are restricted from buying property of certain prices, this will not impact the affordable segment of the market.

“But when the government says foreigners are pushing prices up and comes up with these sort of regulations and changes the rules, it is flip-flop.

“Foreigners are discouraged. Our properties are cheap but people still don’t buy. They still prefer to go to Hong Kong, Singapore and Taiwan,” he said.

Source: TheSunDaily.my

“Unreleased Bumiputera lots and loan rejections by banks are the top reasons for the unsold units,” said Rehda president Datuk Seri Fateh Iskandar Mohamed Mansor

The number of unsold property units in Malaysia have increased due to unreleased Bumiputera lots and loan rejections, says the Real Estate and Housing Developers Association (Rehda).

The percentage increased by 14% in the first half of 2015 ended June 30, 2015 from the preceding half ended Dec 31, 2014, according to Rehda’s survey. Most of the units which were unsold were in Kedah, Penang, Selangor and Johor.

Also the Rehda Property Industry Survey for the first half of 2015, the number of unsold units rose to 78% from 64% in six months before and 57% in the first half ended June 30, 2014.

“Unreleased Bumiputera lots and loan rejections by banks are the top reasons for the unsold units,” said Rehda president Datuk Seri Fateh Iskandar Mohamed Mansor during a press conference on Friday.
He said the percentage of potential property buyers who had failed to secure loans had increased from 29% in the second quarter of last year to 35% during the first half this year.

Most of the loans rejected, he said, were those involving residential property priced between RM250,001 and RM500,000 and between RM700,001 to RM1mil.

Respondents of the survey were 125 property developers, who are Rehda members.

He said respondents of the survey indicated that the Goods and Services Tax (GST) had increased the overall cost of doing business, as well as pushed up property prices.

He said 80% of the respondents cited a cost increase of between 3% and 5% while 67% of the respondents indicated between 3% and 5% hike in house prices due to GST.

Respondents of the survey were pessimistic about the outlook for the property market in 2H 2015, but pessimism was expected to reduce in the following six months, he said.

Source: TheStar.com.my

GUH Holdings Bhd is buying land to develop a light industrial park in Seberang Perai — a plan to cultivate future earnings growth in its property division.

In a filing with Bursa Malaysia, GUH Holdings said its unit GUH Realty Sdn Bhd entered into a sale and purchase agreement (SPA) with Leader Holdings and vendor Thow Gooi Chee to acquire the pieces of land measuring 4.9ha in Ladang Valdor, Seberang Perai Selatan, Penang, for RM22.6 million.

It said the lands, one measuring 2.61ha at RM12.08 million and the other 2.27ha at RM10.5 million, are strategically located in the southern Penang district which has seen the initiation of several government economic programmes such as the Batu Kawan Industrial Park development.

GUH Holdings believes there would be a growing demand for light industrial factories from small and medium size suppliers who would want to be located close to their customers.

“The proposed acquisitions are in line with the ongoing plan of the GUH group to increase and diversify its property land bank in strategic locations with high development value.

“The subsequent proposed development of a light industrial park is part of the GUH group’s continuous effort to increase and sustain its earnings growth in the property development segment,” it said.

It estimated that the proposed acquisition would be completed in six months.

Source: TheEdgeMarkets.com

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Time to discover your dream home

The Star Property Fair 2015 will return to Penang’s Queensbay Mall from Oct 1 to 4, once again bringing together leading developers and agencies.

Home-hunters and investors can look forward to exploring choice offerings both in Malaysia and abroad.

The vast array of products by some 30 exhibitors range from luxurious landed and high-rise residences to affordable homes.

Be it your first home or an upgrade from an existing one, these developments, each offering unique lifestyle concepts, will spoil you for choice.

Complementing them are retail and office spaces, integrated developments and investment schemes, catering to those who seek growth opportunities.

Among the names slated to parti- cipate this time are BSG Property, EcoWorld Development, Seni Bahagia, Asia Green Construction, Nusmetro City, GSV Development and Reka Indah Development (Pg).

Also on board are Tropicana Ivory, Tropicana Macalister (Penang), Palmex Industries, OSK Properties, MPSB Venture, Sonata Resources, Atlantic Blue, ZEON Properties and UEM.

There is also Sunway Grand, BSB Land, Mah Sing Group, Oasis Garden Development, Ideal Property Group, Putra Nilai Development, Aroma Development, Innoceria and GIC Property.

Booths will be located throughout the mall’s ground floor at the centre concourse, centre zone, north zone and south zone, as well as lower ground level.

And just like previous editions, the fair, which is the biggest in Queensbay Mall, will also feature various exciting activities like pro-perty-related talks and contests offering great prizes.

Opening hours are from 10.30am to 10.30pm daily. Admission is free.

Source: TheStar.com.my