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Property outlook seen cautious but not bleak

Extract from The Star (11/3/2017)

Demand for affordable housing will support industry, say industry players

While a cautious stance will likely be the general stand for most local property developers this year, industry experts have ascertained that the sector will be anything but bleak in 2017.

With the high cost of living, CBRE|WTW managing director Foo Gee Jen says there is rising demand for affordable housing.

“This will create genuine demand and lead the market,” he said in his presentation during Rehda Institute’s economic and business outlook conference 2017 last month.

Foo says the market is expected to cool down and stabilise, with prices therefore becoming more realistic.

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Long-term property play

Extract from The Star (11/3/2017)

The euphoria surrounding the corporate development at Iskandar Waterfront City Bhd (IWC) is evident.

However, the value creation for the listed company that would sit on prime parcels of land in Kuala Lumpur and Johor Baru would come over time.

In a nutshell, IWC is a proxy to the new look Iskandar Waterfront Holdings Sdn Bhd (IWH) and offers investors a longer term property play that is safe.

The reason is simple: The land that IWH would eventually own large tracts of land located in cities after it takes over the listing status of IWC.

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Country Garden shifts sales and marketing efforts

Extract from The Star (11/3/2017)

Developer says closure of sales centres in China temporary

JOHOR BARU: Country Garden Pacificview Sdn Bhd (CGPV) said the closure of its sales centres in China is a temporary measure in line with the shift in its sales and marketing efforts.

Chief of strategy Yu Runze said the change in strategy had started early this year. “It is not a knee-jerk reaction to Chinese government’s policy implementation,” he said.

CGPV is the developer and operator of Forest City project, which is a joint venture between Country Garden Group and Esplanade Danga 88 Sdn Bhd. CGPV is 66% owned by the China-based giant through Malaysian registered subsidiaries Country Garden Waterfront Sdn Bhd, Country Garden Danga Bay Sdn Bhd and Country Garden Real Estate Sdn Bhd.

The Johor state government’s share of the project, or more specifically KPRJ, is via Esplanade Danga 88 Sdn Bhd, which holds a 34% stake in CGPV.

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Penang developers plan mega projects

Extract from The Star (11/3/2017)

They are preparing for the next upturn

The economic climate has not deterred developers from planning multi-billion ringgit projects in Penang.

The general consensus is that the current slow period is part of the property cycle and not something sinister like the 1997/98 Asian Financial Crisis.

In time, the situation will turn around and they are preparing for the cycle to turn. Among some of these positive thinkers are SP Setia Bhd, Eco World Development Group Bhd, Hunza Properties Bhd, Ideal Property Development Sdn Bhd and Aspen Vision All Sdn Bhd.

These companies are planning multi-billion ringgit schemes for launch in the near future.

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JPPP initiative gets thumbs up from Johor Rehda

Extract from The Star (13/3/2017)

JOHOR BARU: Johor Real Estate and Housing Developers Association (Rehda) welcomes the setting up of the Housing Advisory Panel committee (JPPP) by the state government.

Johor Rehda branch chairman Datuk Steve Chong Yoon On said the association was willing to assist the state authorities to further improve the delivery system.

He also lauded the decision to include former Housing and Local Government committee chairman Datuk Ahmad Zahri Jamil and state secretary Datuk Obet Tawil to sit on the board.

“Their vast experience in state ad­­­ministration is good for the advisory panel and JPPP should also have a good mix of members,” said Chong.

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Residential properties – those above the rest

Extract from The Star (11/3/2017)

Some are indeed above the rest. The most sought-after residentials on the island with consistent price appreciation for the past three years are those priced below RM1mil.

There are at least six hot addresses on the island which have experienced strong subsale transactions with price appreciation of 5% to 10% per annum since 2014, the year the local property market started to soften.

These include One Imperial in Sungai Ara, All Seasons Park in Bandar Baru Farlim, The Spring, Palm Court in Tanjung Tokong, Sri Impian in Bandar Baru Farlim, and Permai Jaya in Tanjung Tokong, which are all priced currently around RM300,000 to RM600,000.

“Their value has risen higher than other sub-sale properties on the island,” Raine & Horne Malaysia senior partner Michael Geh says.

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400 PPR units to be build in Dengkil soon - Noh Omar

Extract from Bernama (12/3/2017)

DENGKIL: The Federal government, as promised, will soon build 400 units under the People's Housing Scheme (PPR) in Ampar Tenang, Dengkil, at a cost of RM60 million, especially for plantation workers who are currently living in Taman Permata.

Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar said an open tender for the construction of the houses will be out soon.

"The allocation for the construction of the PPR houses has been provided and consultants have also been appointed. Advertisements for the open tender will be conducted this month.

"However, at the moment I cannot give an exact answer when construction will start and completion date," he told reporters after presenting special school assistance to 50 parents Sekolah Menengah Kebangsaan Dengkil students here, today.

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IW City surges past RM1.50 reference price

Extract from The Star (10/6/2017)

KUALA LUMPUR: Shares of Iskandar Waterfront City Bhd (IWC) surged to a high of RM2.25, or 75 sen above the reference price of RM1.50 in the proposed merger with major shareholder Iskandar Waterfront Holdings Sdn Bhd (IWH).

At 11.29am, IWC was up 49 sen to RM2.25. There were 103.66 million shares done.

The FBM KLCI fell 3.09 points to 1,714.33. Turnover was 1.26 billion shares valued at RM972.97mil. There were 295 gainers, 398 losers and 371 counters unchanged.

The corporate exercise involved IWH taking over the listing status of IWC via share swap.  

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LBS Bina, YPJ to undertake RM2.6bil property project in Johor

Extract from The Star (8/3/2017)

KUALA LUMPUR: LBS Bina Group Bhd and YPJ Plantation Sdn Bhd are set to jointly develop a 219ha leasehold land in Kota Tinggi, Johor, with a gross development value of RM2.6bil.

In a filing with Bursa Malaysia today, LBS said it was entering the venture via its indirect unit, Biz Bina Development Sdn Bhd, which has entered into a joint development agreement (JDA) with YPJ Plantation.

LBS said the development of the land, about 46km from Johor Baru town and approximately 29km from Senai International Airport, would take over eight to 10 years.

“This JDA fits into the group’s property development strategy in enhancing its portfolio in township development and further strengthen its presence by allowing capitalisation of its branding Johor,” it said.

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Mah Sing sets up RM1b debt note programme

Extract from The Star (6/3/2017)

KUALA LUMPUR: Property company Mah Sing Group Bhd is setting up a RM1bil debt programme to acquire land, for working capital and to speed up its construction of projects which have good take-up rates.

It said on Monday it had signed an agreement to establish an unrated senior perpetual securities programme of up to RM1bil.  

The first call option date at the end of year five from issuance, will carry a semi-annual fixed rate coupon of 6.90%  per annum for the first five years.

The first issuance of RM650mil in nominal value, which was oversubscribed, is expected to be issued out of the programme by end-March 2017. 

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