There is no reason to believe that Malaysia has seen the formation of an asset bubble that is about to burst, as the country has addressed many of the issues and risks related to it, Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz (pic) has said in a Bernama report.

She said three series of macro prudential measures had been introduced this year to avoid the very risk of the formation of such a bubble asset.

“Conditions between now and in 1997/1998 are different. We are now on a growth path,” she told a press conference in conjunction with the South East Asian Central Banks (Seacen) 30th Anniversary Conference on Greater Financial Integration and Financial Stability and launch of the Seacen Financial Stability Journal, here yesterday.

She was responding to a question on whether Malaysia was experiencing an asset bubble that would burst if China’s economy tumbled and as global interest rates rose, as reported recently by the foreign media.

“We believe that credit growth has moderated to a sustainable pace that supports the growth of the economy. In this regard, we continue to monitor conditions,” Zeti added.

Meanwhile, in her opening address at the conference, Zeti said the modernisation of the Asian financial system had been accompanied by a significant strengthening of the regulatory and supervisory frameworks.

“These reforms supported the transition towards more market-oriented financial systems that are anchored in stronger institutions, risk management capacity and governance,” she added.

She also said these developments continued to support the region through the recent episodes of turbulence in the global financial markets.

“The region has also made important strides in enhancing monetary and financial cooperation arrangements to address regional financial stability issues and global policy spillovers.

“Much has been accomplished in the areas of surveillance arrangements, financial safety nets and crisis prevention, management and resolution,” she added.

Source: StarProperty.my

Micheal Geh

The Federal Government should leave real property gains tax (RPGT) alone in the 2014 Budget.

New Bob Group director Dr Lee Ville said that if the RPGT is increased, then it will dampen the property market, which has already started to cool.

Lee is also president of ERA Malaysia, which is the world’s leading real estate brand.

It is expected that the Federal Government will raise the RPGT rate to 30% from 15% for properties sold within two years, and 15% from 10% for properties sold within three to four years.

For properties sold in the fifth and sixth year, the RPGT is expected to remain unchanged at the current 10% and zero RPGT respectively.

“The anticipated RPGT will not deter foreigners from buying, as they are allowed to dispose their properties only after the third year,” he said.

Lee said the anticipated RPGT would work in the initial stages, curbing speculation in the short term.

“If implemented, developers will respond by reducing their delivery of residential housing projects.

“This will eventually lead to a shortage, triggering demand and causing property prices to rise up again in the long term,” he said.

Lee said the Federal Government should look into controlling price, other than cement, of essential building materials, as the rising price of raw materials was a reason for soaring property prices.

Meanwhile, Raine & Horne Malaysia director Michael Geh said the RPGT would hurt current speculators who had already bought properties, and not the future ones who had yet to buy properties.

“If the existing speculators are hurt, the banks will also be dragged down.

“The Federal Government should look at curbing speculation through other means such as providing middle-income homes with an effective delivery mechanism that ensures only the eligible income category benefits,” Geh said.

Source: StarProperty.my

Heavy load: Trailer trucks ferrying concrete boulders along the 240m stretch of the main span of the cable-stayed bridge during the load test.

The second Penang bridge is now 99% complete and the launching date will be determined by the Federal Government some time next month.

Jambatan Kedua Sdn Bhd (JKSB) managing director Datuk (Ir) Dr Ismail Mohamed Taib said they hoped to wrap things up by Nov 8.

The Batu Maung interchange ramp that collapsed in June was rebuilt earlier this month.

“Motorists will get to enjoy free trips of the bridge for one month after its launch,” Dr Ismail told reporters during a load test at the bridge’s main navigational span yesterday.

The load test was carried out at the 475m cable-stayed bridge, to ascertain the load capacity of the bridge.

“It is important to ensure that the cable-stayed bridge is built according to the design and specifications,” Dr Ismail said.

A total of 17 trailer trucks ferrying concrete boulders weighing 595 tonnes were placed along the 240m stretch at the main span of the cable-stayed bridge.

Dr Ismail said even an earthquake would not affect the bridge.

“It was specially designed to withstand quakes measuring 7.5 and above on the Richter scale.”

Dr Ismail also said the project’s cost, which was earlier stipulated at RM4.5bil, was RM50mil lower and the excess funds had been used for landscaping and decorative lights.

The colour and tempo of the lights could be changed according to the country’s major festivities or celebrations, similar to the Incheon Bridge in South Korea.

The toll rate for the bridge has yet to be determined.

Source: StarProperty.my

Hijauan Valdor, an upcoming residential development by Asas Dunia within Sungai Bakap township, Penang. It is strategically located along federal road, about 10 minutes drive to Penang Second Bridge. The initial phase of this project comprises various design of 1 & 2-storey terrace and semi-detached houses. The launching price is likely to be much lower than the indicative price as stated below.

Phase 4: Semi-detached

Property Project : Hijauan Valdor
Location : Sungai Bakap, Penang
Property Type : 1& 2-Storey Terrace/Semi-detached
Tenure : Freehold
Total Units : 132
Indicative Price: RM 550,000 onwards
Developer : Asas Dunia Berhad

Work in progress: Tong says red tape also hampers efforts to reduce property prices.

Real Estate and Housing Developer’s Association (Rehda) national treasurer DatukN K Tong recently said that the escalating prices of properties, was significantly caused by the supply and demand factor.

“As land prices continue to rise, there is also the issue of not producing houses fast enough to cater to the increasing demand.

“We need to accelerate the number of units being built and this can be done when all parties work closely,” said Tong, adding that a property market report by the National Property Information Centre (Napic) showed the existing stock nationwide in the first quarter of 2013 was 4.6mil residential units (excluding kampung and estate houses).

The report also said the average housing completion yearly was 100,000 units relative to the average annual household formation, which was 140,000.

Tong also noted that the delay in issuing approvals was also a reason why property prices had increased tremendously over the years.

“When there is a delay in issuing planning approvals, development costs, which include utility costs, tend to increase, resulting in more costs passed down to house buyers,” he said.

He added that Rehda had been continously engaging with the Government and utility companies like Tenaga Nasional Bhd, Telekom Malaysia and Indah Water Konsortium Sdn Bhd, among others, to find ways to resolve the matter.

“Unfortunately, despite all these issues, the public still has the misconception that the developers are to be blamed for escalating property prices,” said Tong, adding that the best way to tackle the issue was to hasten approval time, decrease red tape and utility costs, as well as building more affordable houses to cater to the population.

While everyone has a role to play, Tong suggested that the Government should also look at ways of relocating some of the subsidies and allocate the sum for more affordable homes to be built instead.

On Aug 29, Selangor Development Corporation (PKNS) general manager Othman Omar had also said that delays in issuing planning approval can lead to an increase in development costs of about 20% to 30%, which, in turn, increases the development cost from RM5 per sq ft to RM30 per sq ft. The cost would then be passed down to the house buyer.

Othman also mentioned that outdated and inconsistent requirements from local councils also contributed to the contrasting cost of houses in different jurisdictions.

Meanwhile, Tong said the second Malaysia Property Expo (Mapex) of the year would be held from Oct 25 to 27 and it was expected to generate RM300mil in sales.

He said REHDA was confident that the property event would be more successful than the first Mapex in April, which recorded RM200mil in sales.

He said about 92 property developers would be participating in the event, which would also include several free public talks on a variety of subjects.

Source: StarProperty.my