Datuk Lim Hock San

The introduction of the 6% Goods and Services Tax (GST) in April will be the biggest agenda for the property market this year and will pose a challenge for property developers.

“The implementation of GST come April 1 will present a challenge in terms of inflation, but it’s just a matter of adjusting and doing right by the market. For example, while residential properties will be exempted from GST, it does not mean that the cost of supplying these properties, namely constructing, developing and selling, will be free from GST as developers will still have to pay this tax on nearly all areas involved, especially materials, to construct a home,” said Trinity Group Sdn Bhd managing director Datuk Neoh Soo Keat.

Property prices are expected to rise due to cost-push inflation factors such as shortage of workers following more construction projects and infrastructure works that are currently ongoing, while cost of construction materials may rise after the implementation of GST.

“Once GST has been implemented, cost of doing business will increase for property developers. Property players will have to brace themselves for greater competition in terms of product offerings and pricing, targeting buyers and financing facilities. This will lead to property developers putting in more investments into product development and marketing innovation to stay ahead of the competition.

“Developers should not raise their property prices arbitrarily for fear of pricing themselves out of the competition,” he told SunBiz.

LBS Bina Group Bhd managing director Datuk Seri Lim Hock San concurs, adding that the implementation of GST has created an uncertain sentiment in the property market.

“There are bound to be some buyers who will wait on the sidelines pending the implementation of GST. However, we remain optimistic about the Malaysian property sector this year, with more transactions expected in the affordable housing segment following the incentives announced in Budget 2015,” he told SunBiz.

“We foresee overall steady demand for mass market properties in 2015, mainly for mid-range properties ranging below RM500,000, driven by increased demand from first-time home buyers, upgraders, new household formation and various government incentives to spur home ownership,” he said.

On the buyer’s side, Neoh foresees home buyers and investors trying to complete transactions before April 1, with most property buyers opting for second-hand properties until the full impact of the GST is known.

However, commercial properties may experience a slow down as incomplete properties will also be taxed.

“We envisage that the third quarter of the year will pick up due to price adjustment and public acceptance of GST.

Projects with strategic location and easy access to public transport and major highways coupled with good facilities and amenities will still be the preferred choice.

“We anticipate that the delivery system and pending approvals from authorities will improve in various areas in order to cut down on holding cost of developers,” he said.

Despite the anticipated challenges, Trinity Group still foresees a positive year for the group with the various launches in its pipeline.

“We just celebrated our 10th anniversary and we will be launching two new properties this year, in Sg. Besi (March) and Mont Kiara (July),” said Neoh, adding that the group aims to expand its presence further both in the domestic and international markets.

“We are partnering with Sunway Group, Oxley Holdings and Macau Glory for a big scale project in Xuan Cheng, China; we will develop a few parcels of residential projects under the big umbrella project.

“We’ve also purchased parcels of land on Bukit Antarabangsa and near Matrade area where we will be developing residential and integrated developments. Similar to all our award winning projects in the past, these two projects will also host a range of innovative designs that will set it apart from other projects in the area,” he said.

Neoh said the group’s key goal this year is to expand its business presence by moving closer to the city centre and forming joint ventures on big projects with reputable companies, similar to what it is doing in China.

“We already have our eyes set on a few things, which will be announced once everything is confirmed. We will continue to expand our landbank by leveraging on the current market situation whereby land would be available at a relatively cheaper price,” he added.

Meanwhile, it is business as usual for LBS Bina whose pipeline of launches this year comprise mostly of properties below the RM500,000 mark.

“In view of the market sentiment, about 60% to 70% of our planned launches for this year are priced below RM500,000. Homebuyers can also expect more diverse offerings from us in key areas such as the Klang Valley, Cameron Highlands, Johor and Pahang,” said Lim.

He said some of the projects it will be busy with this year include Bandar Saujana Putra, Cameron Centrum, Bandar Putera Indah and Sinaran Mahkota.

Source: TheSunDaily.my

The Malaysian Institute of Estate Agents (MIEA) wants the Royal Malaysian Customs Department to clarify Goods and Services Tax (GST) requirements and issues within the secondary property market and how it will affect the investment community.

“Members have been complaining to us that nobody seems to know very much about GST. It is a situation where it is neither here nor there. There’s been some focus on developers and how it affects properties. There’s a lot of news reports where Real Estate & Housing Developers’ Association Malaysia (Rehda) and other developers have said that property prices are expected to go up 3% to 4% in the grand scheme of things once GST is imposed. But nobody has done any analysis or survey on how property prices are going to be affected in the secondary market,” MIEA president Siva Shanker told reporters at a press briefing yesterday.

“We’re talking about how it is going to affect secondary properties, how is it going to affect the individual owner who only has one shoplot, one office lot or one factory to sell. If you are not a property player and you don’t own multiple properties, you’re probably not equipped to answer any of these questions. How do you pay, how much do you pay, when do you pay, who do you pay to, at which point do you pay? There are so many questions and nobody has answers,” he added.

KP Bose Sdn Bhd tax consultant KP Bose Dasan, who was at the briefing organised by MIEA, said the guidelines from customs has not taken into account the investment community and does not provide a clear guideline for them.

“If I own a shoplot worth RM2 million, should I register? I’m renting it out now for RM100,000 per year, am I subject to GST? No, because the rent does not reach threshold of RM500,000 per year. If want to sell it? Do I collect GST from the buyer if the selling price is more than RM500,000?” he questioned.

Bose said all countries that have implemented GST have made it very clear, with four elements that have to be met before one is subjected to GST namely, the goods or service has to be a taxable supply, it must be made in the country, it must be in the course of business and the business or owner must be registered for GST in order to collect GST.

“We should have a clear idea from customs, whether as an investor owning a commercial property that’s worth more than RM500,000, do I have to register and at which point do I register? When I sell my property? When my property rental exceeds RM500,000? Or now that I have held it as an investment, it is not a business asset so when I sell it, it is a capital disposal and not subject to GST. All countries have worked on this idea. We need a clear guideline,” he added.

Bose said a lot of sales have been aborted because buyers are holding back while investors are unsure on whether to collect GST or not. He said Customs should clarify this to avoid damaging the property market.

“The government wants the revenue, so they should make it easy to follow. GST should be straight forward. What we want is a guideline for the secondary market. For developers and contractors there are no problems, it is all clear,” he added.

Siva said to date, Customs have had sessions with property developers but have not engaged MIEA. He said the issues have to be clarified before April 1 as it is affecting the market.

Source: TheSunDaily.my

The RM27 billion Penang Transport Master Plan will be rolled out in stages beginning 2017, the state government said.

Penang traffic management exco Chow Kon Yeow announced today that the state government had received proposals from six bidders to be project delivery partners (PDP) of the master plan.

Of the six, two are foreign consortiums and three are local public-listed construction giants, he said, without revealing the companies.

The state has appointed consultancy firm KPMG to lead the evaluation of the bids.

“By May, we should be able to decide which firm to pick and sign an agreement with.

“After that, there will still be work to refine the plans before tenders can be called to appoint companies to start the physical work. They will need to take a couple years to finalise engineering plans before rolling out the projects.

“We expect that the first project from the master plan will be able to roll out in 2017,” he said at a press conference at his Komtar office.

The closing date for bidders to submit their proposals was yesterday.

The Penang Transport Master Plan, completed in 2012, aims to resolve traffic woes in the state, especially on the island.

It involves massive infrastructure works and a comprehensive public transport system incorporating light rail transit (LRT), trams, buses and catamarans, expanding roads and building new highways.

It also includes an ambitious undersea tunnel linking George Town and Butterworth.

Instead of appointing only one PDP as initially planned, Chow said due to the size of the master plan and the many projects and packages involved, two PDPs may be appointed and split up the projects for better management.

Bidders must propose implementation plans as well as financing for the projects, he said, adding that this may include land swaps and land reclamation rights.

“This is the method used by Konsortium Zenith BUCG Sdn Bhd, which is undertaking the undersea tunnel project.

“We will have to study the proposals by the bidders first to see what funding method is viable,” Chow said.

Konsortium Zenith BUCG was awarded a 30-year concession on the tunnel. The company will also get 44.5ha of reclaimed land from the Penang government for building the tunnel.

The feasibility study for the 6.5km undersea tunnel reportedly started last month and work on the multi-billion ringgit project could begin next year.

Source: TheEdgeMarkets.com

Vervéa, the first phase of Aspen Vision City’s development at the heart of Bandar Cassia, Batu Kawan. Located on a 35-acre freehold land, claimed to be the largest gated and guarded commercial precinct developed in Penang.

Located in the center of Bandar Cassia, this development comprises 451 units of 3 & 4-storey shop offices with practical layout and sizable built-up ranging from 3,300 sq.ft. to 12,150 sq.ft. Each unit is equipped with a private life. It is only a stone’s throw away from the upcoming IKEA store, with direct connectivity to North-South Expressway and Second Penang Bridge.

Property Project : Vervéa @ Aspen Vision City
Location : Batu Kawan, Penang
Property Type : 3 & 4-storey shop offices
Built-up Area: 3,300 sq.ft. – 12,150 sq.ft.
Tenure : Freehold
Total Units: 451
Indicative Price: RM 1,200,000 onwards
Developer : Aspen Group

Towering sight: Sonny (right) admiring the scale model of Moulmein Rise with business associates.

The Penang-based Belleview Group will launch its biggest commercial-cum-residential project to date, in Seberang Prai in June.

Managing director Datuk Sonny Ho said the mixed development project, to be located on a 8.09ha (20-acre) site, will comprise the largest shopping mall in the northern region with a RM2.5bil gross development value (GDV) and 1.2mil sq ft built-up area.

“There will also be a four-star hotel, an Olympic size skating rink, a 20-screen cineplex, and a highrise residential lifestyle condominium component with 978 units,” he added.

Known for its innovative residential projects in prime and strategic locations on the island, the group has gradually diversified into developing large scale commercial projects over the last few years.

>> Upcoming development @ Jalan Baru by Belleview Group <<

“Another one of our commercial project in Kedah, the RM500mil Aman Central shopping mall, will be ready in July.

“Retailers in Malaysia realise that there is a huge untapped population in Alor Setar and in the whole Kedah state.

“But there isn’t a reputable mall with the attraction and facilities that can bring the crowd together at the moment.

“This is why we developed Aman Central to serve as the regional mall for the north, which has an untapped four million shopping population, and Southern Thailand.

“The mall will have some 357 shoplots,” he added.

The Aman Central, with a total built-up area of two million sq ft, has a net lettable area of 800,000sq ft, of which 85% has been leased.

“It will be the largest shopping mall in Alor Setar and one of the largest in the northern region.

“The Aman Central shopping mall is strategically located in the heart of Alor Setar city centre, with good connectivity from all directions,” Ho said.

The Aman Central is located near the state mosque, court building, Dewan Negeri and Royal Palace leading till the Alor Setar Airport.

The Belleview Group is currently occupied with the Moulmein Rise Shoppes project in Pulau Tikus, Penang, a prime residential cum commercial area.

“The two-level boutique shopping mall, with a 27-storey of 84 luxurious suites, is designed to offer a personalised and yet vibrant boutique retail environment that meets today’s business dynamics.

“Designed by a renowned architect and interior designer, each suite is designed with its own private lift lobby and has broad balconies to exemplify the modern urban lifestyle and high-end finishes.

“The suites are 50% sold,” Ho said.

The Belleview Group has recently completed the AEON Big Hypermarket Mall in Kedah, which opened its doors to the public on Dec 5, last year.

“The project, which is located at the intersection of Jalan Gangsa and Jalan Tambang Badak, attracts shoppers from all over Alor Setar and its adjacent towns.

“The two-level hypermarket mall has a gross development cost of RM100 million with a built-up area of 280,747sq ft,” he added.

The Belleview Group is known for its All Seasons Place commercial project in Bandar Baru Air Itam, the first and largest strip mall in Penang, strategically located to tap into a shopping population of 350,000 in Air Itam.

“The three-level strip mall has a net lettable area 240,000sq ft, accommodating 120 shoplots, and a Giant Superstore of 45,000sq ft,” he said.

On the group’s residential projects for 2015, Ho said Belleview will launch the final phase of the Kulim Techno City project on Saturday.

“The final phase comprising 127 single-storey terraced and 22 one and a half-storey terraced units has a gross development value of RM37mil.

“The units are priced from RM220,900 onwards.

“The project is 33% complete and is scheduled for completion by March 2016,” he said.

The showrooms of the project will be available for viewing at the Kulim Techno City on Saturday.

“For the Chinese New Year sales package, we are providing zero entry cost on all legal fees for sales and purchase agreement, loan agreement and memorandum of transfer.

“For selected units, we are giving attractive rebates,” he said.

In 2014, Belleview completed and sold 144 units of terraced, semi-detached, and bungalow properties priced from RM350,900 and RM390,900.

“Since their launch in 2013, the price has appreciated by about 30%,” Ho said.

In Alor Setar, Belleview Group will be offering a Chinese New Year sales package on Friday for the remaining units of the Amansuri Residences Tower.

“The project is centrally located along the well-connected Lebuhraya Darulaman and among Alor Setar’s most exclusive residential and commercial district.

“It is just within 5-10 minutes away to amenities like schools, hospital, post office and the celebrated Alor Setar Tower, State Art Gallery, Royal and State Museum, and a walking distance to the upcoming Aman Central shopping mall,” Ho said.

The units are priced from RM528,800 onwards, while the price for the penthouse units starts from RM1.5mil onwards.

The show units will be available for viewing at the Belleview Gallery in Alor Setar on Friday.

For this Chinese New Year sales which starts on Saturday, Ho said Belleview would also be selling the remaining 5% of its All Seasons Park project.

“The Spring & Summer Tower of the All Seasons Park project was completed in December 2013, while the Autumn & Winter Tower in April 2014.

“The pricing for All Seasons Park has doubled since the launch three years ago.

“The units, with built-up areas ranging between 856q ft to 1,359q ft, are now priced between RM620,900 and RM893,900.

“The penthouse units, 1,602 per sq ft to 2,333 per sq ft, are priced between RM1.1mil and RM1.6mil,” Ho added.

Source: StarProperty.my