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REHDA seeks GST exemption for affordable housing construction materials

Extract from Bernama (28/9/2017)

KUALA LUMPUR: The Real Estate and Housing Developers' Association Malaysia (REHDA) has asked the government to exempt the Goods and Services Tax (GST) for affordable housing construction materials in its 2018 Budget wish list.

Its President, Datuk Seri FD Iskandar said the tax exemption would encourage more developers to take part in building more affordable houses priced RM500,000 and below.

"With the tax exemption, the building cost will be lower, leading to lower prices of affordable housing," he said at a media luncheon here, today.

Citing the prices of steel and cement as examples, he said not only the materials were taxed but levy was also imposed on them.

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Pavilion Group to launch two residential towers with GDV of RM2 billion

Extract from Bernama (27/9/2017)

KUALA LUMPUR: Property developer, Pavilion Group, plans to launch two residential towers consisting of 746 luxury units with gross development value (GDV) of RM2 billion by year-end.

1 Pavilion Property Consultancy Sdn Bhd Sales and Marketing Director, Datuk Tracey Lai, said the residential towers were part of the group's integrated development project, namely Pavilion Damansara Heights, with total GDV of RM9 billion.

"At the moment we have received an overwhelming response with up to 2,500 potential buyers for the units," she told reporters after the exclusive unveiling of Pavilion Damansara Heights here today.

She said the group hoped to capture at least 50 per cent take-up rate for both towers by year-end and between 80 and 85 per cent by first half of 2018.

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Property agents should adopt technology to keep up with industry trends

Extract from Bernama (26/9/2017)

KUALA LUMPUR: Property agents should equip themselves with technological knowhow to keep up with changing market trends.

iProperty.com Chief Executive Officer Haresh Khoobchandani said with the emergence of electronic gadgets such as smartphones, tablets and notebooks, more property buyers had shifted towards technology-driven methods in making their purchases.

"They (agents) need to understand how to deal with buyers online, new ways of marketing and how to use data pertaining to the market to serve their customers.

"Agents of the future will be those leveraging technologies in doing their jobs. They will not survive if they don't leverage it," he told reporters after introducing the new iProperty.com.my website here, today.

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Niche commercial property in good locations seen continuing to thrive

Extract from The Star (26/9/2017)

PETALING JAYA: Occupancy rates and rental reversions for strategically located niche offices will continue to thrive despite the sluggish investor appetite for Malaysian real estate investment trusts (REITs) currently.

According to UOB Kay Hian, offices in prime locations (typically grade A and with green building specifications) as well as niche (purpose-built) offices remain shielded from low occupancy and negative rental reversions.

“Offices held by KLCC Stapled Group, such as Menara Maxis, ExxonMobil, Petronas Twin Towers, Menara 3 Petronas and Menara Dayabumi, are all fully occupied with long-term leases and annual rental reversions in the mid single digits.

“Similarly, for MRCB-Quill REIT which has most of its offices based on a purpose built-to-suit basis, its portfolio occupancy rate remained high at 97.3%,” the research house said in a report yesterday.

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Property giant in the making

Extract from The Star (26/9/2017)

PETALING JAYA: Sime Darby Property Bhd, which plans to list on Bursa Malaysia by year-end, has 16,938 acres of remaining developable land with a gross development value (GDV) of RM101.1bil in Malaysia.

The property pure play said the current land bank is expected to continue contributing to its sustainable earnings over the next 15 to 20 years.

In its prospectus posted on the Securities Commission’s website, the company said property development contributed 92.1%, 90.1% and 93.3% of its revenue for financial year 2015 (FY15), FY16 and FY17, respectively.

The company also has a footprint in the United Kingdom through its 40% stake in the Battersea Power Station project in southwest London.

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Ho Wah Genting, Dufry to run duty-free shop in Genting Highlands

Extract from The Star (25/9/2017)

KUALA LUMPUR: Ho Wah Genting Bhd (HWGB) plans to jointly operate a duty and tax free shop in SkyAvenue mall, Genting Highlands Resort, with Dufry International AG.

The maker of wires, cables and power supply cord sets, which also provides travel and tour services, told Bursa Malaysia that it had inked a shareholders agreement with the member of Swiss-based Dufry Group.

The latter is a global travel retailer with operations in about 62 countries comprising more than 2,200 shops at touristic locations such as airports, railways and cruise liners.

A joint-venture company to operate the shop will be 51% owned by Dufry. 

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Skyworld hopes for govt to shorten Rumawip sell-off period

Extract from Bernama (25/9/2017)

KUALA LUMPUR: Property developer, SkyWorld Development Sdn Bhd, is hoping the government will consider shortening the sell-off period for the Federal Territories Affordable Housing (Rumawip) scheme to five years in the upcoming Budget 2018.

Founder and Group Managing Director, Datuk Ng Thien Phing said the gap should be similar to the 1Malaysia People's Housing Programme (PR1MA), which was reduced from 10 to five years.

"Affordable housing projects are our corporate social responsibility programme and we emphasise not just on affordability, but quality as well," he told reporters at the 'Topping Off' ceremony for the SkyAwani Residences.

The event was officiated by Federal Territories Minister, Tengku Adnan Tengku Mansor here, today.

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Special committee to investigate companies involved in false affordable housing schemes

Extract from Bernama (25/9/2017)

SUBANG: The Ministry of Urban Wellbeing, Housing and Local Government will set up a special committee to investigate companies allegedly involved in false affordable housing schemes.

Its minister, Tan Sri Noh Omar said the committee which is headed by the director-general of National Housing Department K. Jayaselan would be effective from tomorrow.

"This committee is set up through NBOS (National Blue Ocean Strategy) which besides the National Housing Department, will also include related agencies such as the police and the Ministry of Domestic Trade, Cooperatives and Consumerism.

"The committee is formed because I have received information and complaints from buyers who say they have been duped by several companies, when there is actually no house, even though payments have been made, while the company involved is not subject to the Housing Development (Control & Licensing) Act, 1996 (Act 118)," he told reporters after a working visit to the Taman Subang Perdana 3 apartments, here today.

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SP Setia issues RM434mil sukuk to pay for Penang land

Extract from The Star (25/9/2017)

KUALA LUMPUR: SP Setia Bhd which is buying 1,674.83 acres in Penang for RM620.12mil, has issued Islamic medium-term notes (sukuk murabahah) of RM434mil to part finance the purchase.

In a filing with Bursa Malaysia, the property developer said its unit Setia Recreation Sdn Bhd issued the 10-year sukuk on Monday.

Public Investment Bank Bhd is the principal adviser and lead arranger for the sukuk murabahah programme.

Setia Recreation had on Nov 9 last year won a tender bid for 1,674.83 acres in Seberang Perai Utara, about 18km from Butterworth, which was planned for an eco-themed mixed development township with a potential gross development value of RM9.6bil (spanning over 15 to 20 years). Setia Recreation had on Dec 22 inked into a sale and purchase agreement with CIMB Islamic Trustee Bhd (acting as trustee for Boustead Plantations Bhd acquire of the freehold land at RM620.12mil or RM8.50 per sq ft.

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Damansara Realty secures RM27m project for RAPID

Extract from The Star (25/9/2017)

KUALA LUMPUR: Damansara Realty Bhd has secured a RM27.62mil contract to provide medical services for the Petronas Refinery and Petrochemical Integrated Development (Rapid) in Pengerang, Johor.

PRPC Utilities and Facilities Sdn Bhd, a subsidiary of Petronas Refinery and Perochemical Corp Sdn Bhd, awarded the small medical facility project to a joint venture between Damansara Realty subsidiary TMR Urusharta (M) Sdn Bhd and KPJ Healthcare Bhd's Kumpulan Perubatan (Johor) Sdn Bhd.

The small medical facility project also includes an optional services contract for RM7.8mil, bringing the potential total contract value to RM35.42mil.

The project will boost Damansara Realty's integrated facilities management segment, which stood at RM285mil in contracts as at July 2017.

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