UDA Holdings Bhd plans to further negotiate with the Government to provide funding for the build-and-sell housing initiative.

Chairman Datuk Nur Jazlan Mohamed argued that if the company was to develop property based on the build-and-sell concept without any aid from the Government, it would tremendously hurt its cashflow.

“Discussions are ongoing but we must find a middle ground where we will not be adversely impacted by our participation in this project.

“The issue here is risk and rewards. For many developers here, it is not a popular concept although it is a norm in countries like Australia and Canada,” he told reporters after a media briefing on UDA’s initiative in the commercial development of Seetee Aisah tanah wakaf (endowment land) – the first in the country.

UDA was among the four government-linked companies that had agreed to adopt the build-and-sell housing concept as part of efforts to counter the problem of abandoned housing projects.

On the update on the redevelopment of Pudu Jail, Nur Jazlan said UDA viewed that the Finance Ministry’s (MOF) plan was not attractive in terms of returns according to preliminary reports by its special committee.

“Our committee will finish the report on the redevelopment of the area in a few months’ time that would suggest a lower risk and better returns.

“We will present the report to our board for approval which then will be handed over to the MOF” he said.

Nur Jazlan said the redevelopment of the Pudu Jail seemed attractive a few years go but now with the Tun Razak Exchange project in the picture, it would pose stiff competition.

UDA is wholly-owned by the MOF.

Source: The Star

THERE is no doubt that the quality of life of Malaysians living in flats, apartments and condominiums can be improved. Part of the problem is poor management. As such, it is commendable of the Housing and Local Government Ministry to introduce a new law to improve management.

The Strata Management Bill 2012 was tabled in Parliament by Housing and Local Government Minister Datuk Seri Chor Chee Heung in September. When and if passed, the Strata Management Act will replace the Building and Common Property (Maintenance and Management) Act 2007 in regulating the management of strata-titled properties.

However, the proposed law has generated heated controversies. While the bill is supported by many valuers and the Board of Valuers, Appraisers and Estate Agents (BVAEA) Malaysia, it has attracted very strong objections from those managing strata-titled buildings, including the Building Management Association of Malaysia (BMAM).

According to S. Venkateswaran, the secretary-general of BMAM, the new law will increase the financial burden of the property owners because it requires companies that manage strata buildings to be owned by property valuers. In a letter to all members of Parliament, he wrote: “The bill, by restricting building management and maintenance to valuers, would create a monopoly, and be open to abuse and rent seeking.”

At present, the law does not require property valuers and it is fair to believe that most of the companies managing strata properties are not owned by them.
It is important to note that there are 749 property valuers in Malaysia, while it is estimated that there are about 3,600 strata-titled properties with more than two-thirds in the form of condominiums and apartments while the rest are low-cost and medium-cost flats. Gated communities are usually strata-titled properties. If the bill is passed without amendments, property valuers will be very well rewarded. The demand for valuers will be so great that those serving the government will be tempted to resign and set up their own companies. Existing managing companies not owned by property valuers will close shop or sub-contract from them.

The valuers have not been keeping quiet. For example, BVAEA has placed an advertisement to explain that the Valuers, Appraisers and Estate Agents Act 1981 (Act 242) does not prohibit Joint Management Bodies (JMBs), Management Corporations (MCs) and apartment owners from managing their own properties. It also states that it encourages owners of strata-titled buildings to manage their own properties.

While the board’s advertisement is correct, it is expecting too much to call on the JMBs and MCs to manage their own properties. Most members of these bodies have to take care of their day jobs. They need to engage private firms to manage their buildings and they should be given the freedom to choose any company they want, whether owned by property valuers or not.

There is no need to pass a law that provides for only property valuers to be involved in the management of buildings. Dr Ernest Y. Y. Cheong who writes a weekly column on property, also thinks so. In fact, he is against the bill. It is important to note that he is a property valuer who has experience in property management.
What is needed is a law to ensure that those who undertake the management of properties should be held accountable for their responsibilities.

While there is no doubt that those who manage strata-titled properties play an important role in the livability of the buildings, the bulk of the problems faced by the residents are caused by the building owners and occupiers. If the tenants believe that they can throw rubbish anywhere because they are paying property managers and the sweepers, then even the best and most qualified managers will not be able to keep the premises clean.

It is important to ensure that those who live in high-rise buildings and all strata-titled properties know their responsibilities besides paying their dues promptly. They should be duly punished if they flout the rules.

At a wider level, Malaysians must learn to behave properly when they are in public space. Unfortunately, there has been too much emphasis on rights and too little concern on responsibilities as citizens or dwellers of strata-titled buildings.

Source: The Sun Daily

PETALING JAYA: Property prices have shot up by about three-fold in Penang because of an increase in surcharges imposed by the Pakatan Rakyat-led government, claimed a former council official.

According to former Penang Municipal Council’s Town Planning Department acting director Khoo Boo Soon, the additional cost imposed on developers were eventually passed on to buyers, hence the drastic increase in property prices.

They include the increases in infrastructure contribution and re-zoning fees, and contribution of RM120,000 per unit in lieu of building low-cost homes.

The infrastructure contribution charge has been increased from RM5 per sq ft to RM15 each for housing projects exceeding 15 units per acre.

For commercial projects, the infrastructure contribution is increased from RM7 to RM21 per sq ft for every unit.

The re-zoning fee had been increased from 25% to 50% on the difference based on the current value, he said.

“The fee is imposed by the council. But the state government also charges the developer 50% on conversion of state-owned land.

“All these additional costs incurred by the developers are passed on to the house buyers,” he told The Star.

Khoo said the lack of affordable homes had adversely affected the low and middle-income groups which made up more than 80% of the population.

“It is also difficult for the younger generation to own homes as the price range in Penang is beyond their means.

“What is the point of building more high-end homes when the majority of Penangites could not afford them?” he said.

“During the era of (former chief minister) Tan Sri Dr Koh Tsu Koon, the Government compelled the developers to build low and medium-cost homes.

“But the current government under (DAP’s) Lim Guan Eng seems to be more interested in filling up the state coffers rather than meeting the needs of the people,” said Khoo.

The Property Stock Report for the first quarter of this year showed that the house prices in Penang had far exceeded the 2014 price projected by Penang Institute’s City, Urbanisation and Environment head Stuart MacDonald.

Valuation and Property Services Department data shows a drastic increase in residential property prices between the first quarter of last year and this year (see graphic).

In an immediate response, Penang Housing Committee chairman Chow Kon Yeow said he had forwarded the queries on surcharges to the Penang Municipal Council.

“The State Planning Committee can make such decisions, but ultimately it is the council that implements them,” he said.

Source: The Star

Beverly Heights, a luxury gated and guarded development located within Bukit Gambier township. Comprises 17 units of  3-storey bungalow houses selling from RM4.5 million onwards.

Project Name: Beverly Heights
Location : Bukit Gambier, Penang
Property Type :  Bungalow
Total Units: 17
Land Tenure: Freehold
Indicative Price: RM4,500,000 onwards
Developer : Metrio Development Sdn. Bhd.

Location Map:

TAMBUN Indah Land Bhd will develop the RM640mil Pearl City Business Park on 107 acres in Simpang Ampat in early 2013, the biggest commercial centre in the northern region.

Phase one of the project comprises a tenant-mixed control leisure mall with food and beverage and retail outlets, a karaoke and a cineplex.

“Phase one will also feature a RM140mil commercial project with 188 commercial lots, which will start construction in mid-2013, and an international school,” says Tambun Indah managing director K.S. Teh.

The Straits International School and the leisure mall are scheduled to start construction respectively in the first and second quarter of 2013.

“The Straits International School, which is under a Cambridge curriculum, is scheduled to commence the first intake in January 2014,” says Teh.

Phase one is scheduled for completion in 2016.

The group is now planning for phase two which will include a hypermarket, medical and wellness centres, gated landed properties, and a furniture village.

The Pearl City Business Park is located close to the second bridge, North South Expressway, and the double-tracking railway, connecting Padang Besar and Ipoh.

There are 12 established and growing industrial parks within a 15km radius of Pearl City Business Centre, providing support for the project.

The Prai Industrial Estate, Penang Science Park, Bukit Minyak Industrial Estate, Bukit Tengah Industrial Estate and Batu KawanIndustrial Park are among the well-known industrial estates.

“Seberang Prai will attract new home seekers who are looking for quality lifestyle living with pricing within their income range,” Teh adds.

The group is currently undertaking six residential projects, comprising 1,197 landed properties, and a commercial scheme, comprising 152 shop offices, with an RM840mil GDV for its Pearl City project on a 150-acre site in Simpang Ampat. The project is scheduled for completion in 2014.

The selling price for the Pearl City properties ranged between RM288,000 and RM800,000 and about 65% of the Pearl City properties have been sold to date.

Tambun Indah Land Bhd, a property development group with projects largely in Seberang Prai, still prefers the mainland to launch new projects this year, despite rising property prices on the island.

Of the five new projects, the group is undertaking in the second half of 2012, only one, the RM236mil Straits Garden, is located in Jalan Jelutong on the island.

The new projects Tambun Indah is undertaking in the second half in Seberang Prai include the RM204.38mil Pearl Residence and RM73.5mil Pearl Impian in Simpang Ampat, RM32.5mil Carissa Villas-Residence in Jalan Raja Uda, and RM51mil BM Residence in Bukit Mertajam.

These projects have a gross development value (GDV) of RM597.6mil.

The Pearl Residence comprises bungalows, double-storey terraced houses, and semi-detached houses, while the Pearl Impian project is made up of double-storey terraced houses.

The Carissa Villas-Residence is a three-storey terraced house project, while the BM Residence comprises apartments and landed properties.

The projects in Seberang Prai are priced between RM280,000 and RM500,000.

The Straits Garden on the island comprises 183 condominiums and 230 commercial suites, priced respectively from RM688,000 and RM318,000 onwards.

“The lower land price in Seberang Prai fits in well with our development philosophy of providing quality lifestyle living at affordable prices.

“Due to the high land prices on the island, concept options are basically limited to high-rise development, varied only in terms of pricing and unit sizes.

“In contrast, lower land prices on various parts of the mainland present an option for more innovative concepts and designs depending on its location and suitability.

“This option offers us more opportunities to innovate and provide our home buyers with higher quality living standards which they can afford.

“We have completed several landed strata gated and guarded projects as well as high-rise development in Butterworth and other areas of Seberang Perai,” he says.

The group still has about 700 acres of land in Simpang Ampat, which will be used for future development of mixed-development projects, Teh says.

Tambun Indah has sold 60% of the strategically located Straits Garden project since its launch in August 2012.

“This is due to Straits Garden’s proximity to the inner city of George Town, the Penang Bridge, and the Free Industrial Zone, which has enhanced the project’s appeal to home seekers,” Teh says.

The group will continue searching for strategic land bank on the island for its future development to deliver homes of quality, Teh adds.

Scheduled for completion in 2016, the Straits Garden is the group’s second project on the island after the Scotland Villas Condominium, completed eight years ago in 2004.

”Scotland Villa’s value has appreciated by about 80% since,” he added.

Tambun Indah is confident of getting good responses from home seekers due to the affordability and range of its products which are mostly priced between RM280,000 and RM500,000.

“Our purchasers also have a choice of owning gated or non-gated units depending on their preference.

“Sales statistics indicate that over 50% of the purchasers for the Pearl Villas gated and guarded parcel at Pearl City are from the island.

“Completion of the Second Bridge next year will offer them a choice of getting quality lifestyle living on the mainland at an affordable price with the convenience of easy travelling to work on the island in the near future,” he says.

On the impact of the global slowdown, Teh says the group expects to see property prices in Penang level off, as prices have escalated too fast on the island.

“We are not immune to the effects of the European crisis and the slowdown in the US and China property markets.

“Bank Negara’s loan regulations and requirements are also having an impact on cooling rising property prices, resulting in the decline of transactional activities,” he says.

Source: The Star