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Steps taken by government to control house prices bearing results

Extract from Bernama (26/11/2015)

KUALA LUMPUR: The steps taken by the government to control the prices of houses and curb speculation have shown positive results, according to the signs the Urban Wellbeing, Housing and Local Government Ministry.

In a written reply in the Dewan Rakyat today, the ministry said the house price index change was recorded at 5.9 per cent with the average price of a house at RM305,075 in the second quarter of this year.

It said comparatively, the house price index change in the second quarter of 2014 was 8.4 per cent with an average price of RM302,716.

"This shows a drop of 2.5 percent in the house price index in the country," the ministry said in reply to a question from Datuk Ar Wan Mohammad Khair-il Anuar Wan Ahmad (BN-Kuala Kangsar).


Parliament: State governments, LAs must open up more land to build low cost houses - Johari

Extract from Bernama (26/11/2015)

KUALA LUMPUR: State governments and local authorities (LAs) must open up more of their land to build affordable homes for low income earners, said Deputy Finance Minister Datuk Johari Abdul Ghani.

He said the move was essential for low income earners who could not afford new houses which were priced at above RM300,000 each.

He said 79 per cent of newly launched housing projects in 2014 comprised units priced at more than RM250,000 each.

"With a median income of only RM4,585, they can only afford to buy homes priced at below RM200,000 each after taking into account other commitments like tax, Employees Provident Fund contributions and basic expenditure.


IGB earnings surges 37.6% to RM45mil in third quarter

Extract from The Star (26/11/2015)

PETALING JAYA: Property developer IGB Corp Bhd’s net profit surged 37.6% to RM45mil for the third quarter ended Sept 30 from RM32.8mil a year ago, on higher contributions from its property investment-retail and hotel divisions.

This translated to a basic earnings per share (EPS) of 3.30 sen from 2.44 sen a year ago.

The group’s revenue for the quarter dipped 5.2% to RM274mil from RM289.8mil a year ago on lower contributions from the property development and investment divisions.

IGB did not declare any dividend for the quarter under review.


Bright spots for WCT as construction picks up

Extract from The Star (26/11/2015)

KUALA LUMPUR: CIMB Equities Research expects earnings risks arising from the tough property market to be mitigated by a major recovery for WCT's construction prospects.

It said on Thursday the challenging visibility on the company’s property sales target for FY16 was unsurprising given current demand conditions.

However, it expected this to be compensated by a pickup in progress billings for the RM4.1bil outstanding order book. The outlook was anchored by RM2.7bn worth of jobs in tender with potential successful wins in the short term.

CIMB Research said targeted jobs over the next 12 months included the fourth package infra from Petronas's Rapid worth RM300mil to RM400mil.


Tropicana’s net profit soars on disposal gain

Extract from The Star (26/11/2015)

KUALA LUMPUR: Property developer Tropicana Corp Bhd posted more than three-fold increase in net profit to RM151.8mil in the third quarter ended Sept 30 compared with a year ago on gain from the disposal of a subsidiary.

The company said in a filing with Bursa Malaysia that revenue decreased 18.7% to RM244.6mil compared with the same quarter a year ago due to lower work in progress in its property development segment, as a number of the projects were in the early stages of construction.

For the nine-month period, net profit jumped 53.1% to RM194.2mil compared with the same period last year, while revenue rose by 10.9% to RM947.8mil. 

The company said cash proceeds received totalled RM1.07bil year-to-date, arising from the strategic disposal of non-core assets and investment properties undertaken over the past year.  


High demand for factory lots could push up space price

Extract from The Star (26/11/2015)

PETALING JAYA: Prices of factory space could be on an uptrend by next year, spurred by upcoming infrastructure projects outlined under Budget 2016.

CH Williams Talhar & Wong’s (WTW) managing director Foo Gee Jen said that several projects announced under the budget would boost demand for factory lots in the country.

“The industrial property sub-sector is poised for good growth. The various infrastructure projects lined up for Sabah and Sarawak, for instance, will open up opportunities for the (industrial) sector,” he told StarBiz.

Among the notable highlights was the RM12.8bil funding for the Pan Borneo Highway, beginning with the construction of the route linking Sindumin in the west coast to the east coast of Tawau.


Ivory Properties plans to start RM450mil phase 4 of Penang project soon

Extract from The Star (26/11/2015)

GEORGE TOWN: Ivory Properties Group Bhd (IPGB) is targeting to start its RM450mil phase four Penang Times Square project in the first quarter of 2016.

Group chief operating officer Goh Chin Heng (pic) said that the approval for the plans should be obtained by the end of this year.

“We will commence work for both phase four which comprises a retail mall, hotels, and commercial suites, and phase five, comprising another hotel,” Goh said.

Both the phases are expected to be completed in four years, according to Goh.


Icon unit bags RM51mil contract

Extract from The Star (25/11/2015)

KUALA LUMPUR: Icon Offshore Bhd’s wholly-owned unit, Icon Offshore Group Sdn Bhd (IOGSB), has secured a RM51mil contract from Borneo Seaoffshore Sdn Bhd.

In a filing to Bursa Malaysia, Icon said the contract was for the provision of one deepwater platform supply vessel for Kebabangan Petroleum Operating Co Sdn Bhd.

Icon said the contract, which commenced on Nov 12, 2015, would be completed in two years with an extention option of one year.

“The contract is expected to contribute positively to the earnings and net assets of Icon Group for the financial year ending Dec 31, 2015 and beyond. It is not expected to have any material effects on the share capital and shareholding structure of Icon,” it said.

Johor affordable housing scheme starts end of January

Extract from Bernama (24/11/2015)

NUSAJAYA: Johor affordable housing scheme to help the low income group obtain housing loans will strart from the end of January next year.

State Housing and Local Government Committee chairman Datuk Abdul Latif Bandi said the scheme, via the cooperation of the state government and Ambank Islamic Berhad, was a pro active initiative by the state government to support aspirations to own affordable houses in Johor.

"This scheme helps the target group obtain their housing loans that are difficult to be approved by other commercial banks.

"Through this scheme, Ambank Islamic Berhad will provide funds totalling RM300 million to ensure the target group in the state obtained financing for their houses," he said at the Johor state legislative assembly sitting here today.


Econpile bags RM95.5 million piling & basement contract from Nusmetro Property

Extract from Bernama (34/11/2015)

KUALA LUMPUR: Piling and foundation specialist Econpile Holdings Bhd has bagged a RM95.5 million contract for piling and related works for Arte Mont Kiara.

Econpile (M) Sdn Bhd, the group's wholly-owned unit, was contracted by Nusmetro Property Sdn Bhd to undertake earthworks, piling and basement construction works for the mixed development project in upscale Mont Kiara.

In a statement today, Econpile Holdings Executive Director/Group Chief Executive Officer Raymond Pang said the award reflects the continued confidence of Nusmetro in the group's piling and substructure services.

"Presently, we are near completion of substructure works for Arte+ at Jalan Ampang, another project awarded by the same developer.