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Foreign investors favour Malaysian property market, says analyst

Extract from Bernama (22/4/2016)

SERI KEMBANGAN: Property investors are positioning themselves to capitalise on renewed confidence in Malaysia's economy despite global volatility, an economist with a Dubai-based property and investment company said.

IQI Group Holdings chief economist/investment strategies Shan Saeed said the country's property market was growing in a very structured manner and would continue to attract investments from European countries, China, Japan and South Korea.

"We advise our clients on the global scale and they are looking at Malaysia's property market from a very favourable perspective.

"The investors consider the economic growth, investment pattern and domestic growth when deciding to invest in a country," he told reporters on the sidelines of the International Business Review Summit 2016 organised by AMG Holding International Sdn Bhd here Friday.


Prasarana plans 7 property projects with GDV of RM4 billion

Extract from The Sun Daily (20/4/2016)

KUALA LUMPUR: Prasarana Malaysia Bhd plans to develop seven property projects here and Selangor with a gross development value (GDV) of RM4 billion in the next four years.

Chairman Tan Sri Ismail Adam said this is in line with the company’s mission to increase non-fare revenue contribution to 50% by 2020.

“Currently, non-fare income contributes less than 10% to revenue,” he told reporters after the groundbreaking ceremony of the Latitud8 transit-oriented development (TOD) project here yesterday.

Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor officiated at the ceremony.


Commercial property transactions down

Extract from The Star (20/4/2016)

PETALING JAYA: Commercial property transactions were down in both value and volume last year compared to the previous year.

According to the National Property Information Centre’s (Napic) 2015 Property Market Report, a total of 31,776 transactions worth RM26.4bil were recorded in the commercial property segment last year.

This was down by 10.6% in volume and 17.1% in value compared to 2014.

Penang was the only state that held strong despite fallen market activity, having registered an increase of 19% in terms of transaction value, while other major states succumbed to double-digit declines.


FOMCA supports NUBE's interest-free housing loan proposal

Extract from Bernama (20/4/2016)

PETALING JAYA: The Federation of Malaysian Consumers Associations (FOMCA) supports the National Union of Bank Employees'(NUBE) proposal of interest-free housing loans for its members in the middle- and lower-income groups.

FOMCA's Deputy President, Mohd Yusof Abdul Rahman, told Bernama Wednesday the banking industry should consider this as its corporate social responsibility and provide such facilities to the workers.

He said this will also spur and motivate the workers to work harder and increase their productivity which in turn will benefit the banks.

Mohd Yusof said housing loan repayment was a major component of the workers' monthly expenses and if this could be reduced it will go a long way to help them.


High Court strikes out claim against Mah Sing

Extract from The Sun Daily (20/4/2016)

PETALING JAYA: The Seremban High Court has allowed Mah Sing Group Bhd’s application to strike out a claim by seven people who claimed they were undivided registered proprietors/beneficial owners to the land.

In a Bursa Malaysia filing yesterday, Mah Sing said the court struck out the claim made against its unit Grand Prestige Development Sdn Bhd with costs of RM3,000.

Grand Prestige, which seeks to launch a project with a potential gross development value (GDV) of RM7.5 billion on 960 acres in Seremban, was served with the writ and statement of claim in August last year.

The seven plaintiffs had sought a declaration that the agreement to sell and acquire the land is invalid, among others.


UEM Sunrise revises downward sales target

Extract from The Star (19/4/2016)

KUALA LUMPUR: UEM Sunrise Bhd has revised its sales target to RM1.5bil from RM2bil for 2016 in light of the current scenario in the property market.

“It’s rather conservative but we want to be realistic and not over-promise.

“If there would be a strong recovery in the market this year it would likely happen in the fourth quarter driven by strong sales growth in the Klang Valley,” managing director and chief executive officer Anwar Syahrin Abdul Ajib told StarBiz recently.

The property developer was eyeing land for acquisition in the Klang Valley worth up to RM3bil.


Projects in line with Penang government's planning guidelines, says PR1MA

Extract from Bernama (19/4/2016)

GEORGE TOWN: Perumahan Rakyat 1Malaysia (PR1MA) Bhd's project development plans are in line with Penang state's planning guidelines.

In a statement today, PR1MA said, it has landed and high-rise developments in Penang and all homes were priced at an average of 20 per cent below market prices in surrounding areas.

"Some of the projects have been submitted to the Penang state government and more will be submitted as part of the required approval processes. We shall wait for the state's comments before making any necessary adjustments," it said.

To-date, PR1MA said, its Members of Corporation had approved 246,410 units comprising 212 projects to be built nationwide of which 84,132 units were now in different stages of construction.


Property sales recovery likely in H2

Extract from The Star (19/4/2016)

PETALING JAYA: Property sales are expected to recover in the second half of 2016, driven by higher consumer confidence and improved economic outlook.

CIMB Research in a report said it is maintaining an “overweight” call on the local property sector, adding that the situation was “not as dire as initially thought.”

Following a meeting with analysts and fund managers, the research house said that the property sector’s fundamentals are better than its initial perception.

“The majority of investors agreed with our view that the sector’s valuation is cheap and its fundamentals are not as dire as initially thought. However, many prefer to stay on the sidelines as there are no visible near-term catalysts for property sales.


More contract wins to come for SunCon, said Affin Hwang

Extract from The Star (19/4/2016)

KUALA LUMPUR: Sunway Construction Group Bhd (SunCon) may see further major contracts in its pipeline as the firm has already submitted tenders worth RM18bil for highway and building projects, said Affin Hwang Capital Research.

In a note today, the research house said SunCon is currently bidding for civil work packages for both the Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) and the Damansara-Shah Alam Highway (DASH) projects.

“We gather that the indicative value is over RM1bil for one of the packages. Few contractors can execute the work due to the complexity of the high elevated highway section, and thus we see less competition,” it explained.

Additionally, Affin Hwang has revised its new contract wins assumption for SunCon to RM3bil from RM2bil for this year as the implementation of major public infrastructure projects continue to accelerate.


Affordable houses to dominate property market in 2016, says Chua

Extract from Bernama (19/4/2016)

PUTRAJAYA: Affordably priced houses are expected to dominate new property launches this year based on last year's performance, says Deputy Finance Minister Datuk Chua Tee Yong.

He said last year, residential units priced RM500,000 and below accounted for more than 50 per cent of houses launched.

"Overall, new launches are expected to slow down this year to ensure that the market can, from time to time, absorb unsold units," said Chua when launching the 2015 Property Market Report here today.

He said 362,105 transactions, worth RM149.9 billion, were recorded last year compared with 384,060 units, worth RM163.0 billion, sold in 2014.