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Steady property demand in Penang

Extract from The Star (21/7/2015)

PETALING JAYA: An increasing population in Penang coupled withlong-term property demand will be supported by major projects driven by public-private partnerships (PPPs), according to Affin Hwang Capital Research.

Among the PPP projects, the largest being the RM27bil Penang Transport Master Plan (PTMP), could be awarded by September. Singapore’s Temasek Holdings also has a proposed joint venture with Penang Development Corp (PDC) to develop an RM11.3bil business process outsourcing centre and an international technology park.

The research house said in a report that its top stock picks for infrastructure and property exposure to Penang were Gamuda Bhd, IJM Corp Bhd, and Eastern & Oriental Bhd (E&O).

It said the Penang government had pushed for the economy to move up the value chain by encouraging knowledge-intensive and innovation-led manufacturing and services.

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Nexgram’s Cyberjaya project gets development order

Extract from The Sun Daily (21/7/2015)

PETALING JAYA: Nexgram Holdings Bhd has obtained the development order from the Sepang Municipal Council for its Cyberjaya project.

Last December, Angkatan Koperasi Kebangsaan Malaysia Bhd (Angkasa) through its unit MyAngkasa Bina Sdn Bhd has entered into an off take-cum-sale and purchase agreement with Nexgram Holdings Bhd's subsidiaries, to take up two property development projects being developed by the group in Cyberjaya and Putrajaya respectively, for RM1.44 billion.

MyAngkasa Bina will pay RM1.15 billion for the Cyberjaya development, which consists of a mixed commercial development known as "Angkasa Icon City" to be undertaken by Nexgram Land Sdn Bhd on a freehold land measuring 5.906 acres owned by Nextnation Datacity Sdn Bhd.

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Penang Govt urged to re-impose 30 pct low medium cost quota on affordable projects

Extract from Bernama (21/7/2015)

GEORGE TOWN: Penang Gerakan Youth has urged the state government to re-impose the 30 per cent low-cost and low-medium cost (LC/LMC) quota regulation on the 100 per cent affordable projects.

Its legal and public complaints bureau chief, Jason Loo said the 30 per cent (LC/LMC) quota were needed by Penangites, especially youths as they could not afford to own a place here and ended up leaving their hometown.

He said state housing development committee chairman Jagdeep Singh Deo had earlier said it was impossible for developers who build 100 per cent affordable units to build the 30 per cent LC/LMC units at the same time.

He however, rebutted Jagdeep's claims and based on observation, said developers might only need to spend three per cent of the total sales amount of the affordable home units to build the 30 per cent LC/LMC units.

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Property mart set to see interests from local, foreign parties

Extract from Bernama (21/7/2015)

KUALA LUMPUR: Malaysia's property market is poised to see interests not only locally but from foreign parties capitalising on the weak ringgit, said global property consultant, Knight Frank Malaysia.

In a statement today, Managing Director, Sarkunan Subramaniam, said this was evidenced by recent activities in major commercial property investment transactions such as the acquisitions of Integra Tower and DoubleTree by Hilton among others.

"With the Fitch Rating maintaining Malaysia's long-term foreign currency issuer default rating at 'A-' and local currency at 'A' and added with an overall outlook revised from the previous negative rating to stable now, the ringgit is expected to strengthen in the long run and creating the absolute right time for foreign investors to be looking at Malaysia," he said.

He said the company has appointed James Buckley as Executive Director for Capital Markets.

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19,660 PKNS property buyers have yet to transfer ownership

Extract from Bernama (21/7/2015)

SHAH ALAM: Some 19,660 people who bought property from the Selangor State Development Corporation (PKNS) have yet to transfer ownership to their own names.

PKNS public relations manager Ishak Hashim said the situation left PKNS with the burden of paying quit rent on the properties since 1980.

"Reasons cited include the death of buyers, failure to locate next-of-kin, high stamp duty and legal fees," he told Bernama here, today.

PKNS had launched a campaign in June which ends in October to accelerate ownership transfer of terraced houses, bungalows and industrial lots.

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Second home lifestyle trend to increase in next five years

Extract from Bernama (21/7/2015)

KUALA LUMPUR: The concept of a second home, or lifestyle purchase, in Asia is slowly becoming more established and is expected to increase significantly in the next five years with major repercussions for global markets.

In a statement today, global property consultancy firm, Knight Frank, said the long-term prospects for capital appreciation could be positive if supply was constrained either due to strict planning controls or there was a sustained economic growth period.

"According to our recent Prime International Residential Index which tracks prices across 100 luxury residential markets worldwide, mainland second home markets recorded a 2.6 per cent fall in prices in 2014," it said.

Knight Frank said Asian interest in second home lifestyle purchases will strengthen but there will still be a desire to generate an income from their acquisitions via a commercial enterprise such as a holiday let or small vineyard.

Invest in MJC City’s high return residential and commercial properties

Extract from Borneo Post (20/7/2015)

KUCHING: MJC City Development Sdn Bhd’s (MJC City) established property portfolio include the Mutiara Villa exclusive bungalows, MJC Mutiara double storey semi-detached units, One Residency link villas as well as Courtyard and Upper Sanctuary lifestyle apartments — all of which are fully sold out, completed and occupied, are yet, still in demand.

However, it is still not too late for those who want to be a part of this booming Batu Kawah New Township, and at the same time, to earn good rental returns and capital appreciation.

Hence, for those intereseted, MJC City is proposing its award-winning project, the SkyVilla Residence, One Residency Phase 7.5 and Papillon New Street Mall.

This blooming township is located five kilometres (km) from the city centre and accessibility to this township is very convenient, even via public transport.

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Concern over abandoned houses

Extract from The Sun Daily (19/7/2015)

JOHOR BARU: Abandoned houses in Taman University, Skudai, are causing concern to residents in the area as they have become haunts for drug addicts as well as a dumping ground.

Retired welder Ho Yuen Hai, 57, who resides at Jalan Penyiaran, said the unit next to his double-storey house was abandoned eight years ago and is now used by drug addicts.

He said his house has been burgled three times since 2010, with losses of about RM10,000.

The latest incident was on July 13 when two men climbed over his fence from the abandoned house.

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CapitaMalls' net property income rises from East Coast Mall contribution

Extract from The Stars (16/7/2015)

KUALA LUMPUR: CapitaMalls Malaysia Trust (CMMT) posted a net property income (NPI) of RM52.4mil for the second quarter (Q2) ended June 30, 2015, up 2.4% from a year earlier.

“This was on the back of the full quarter contribution from East Coast Mall (in Kuantan) which completed its two-year asset enhancement programme at end-2014, as well as higher rental reversions from many new and renewed leases,” said the manager, CapitaMalls Malaysia REIT Management Sdn Bhd (CMRM).

However, the shopping mall-focused real estate investment trust’s Q2 net profit of RM88.63mil was 15.5% lower than a year earlier due mainly to a lower fair value gain of investment properties.

The valuation surplus recognised during the quarter fell 23.6% to RM52.1mil from the corresponding period a year ago.

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Sunway’s long-term prospects intact despite property sector challenges

Extract from Borneo Post (16/7/2015)

KUCHING: Sunway Bhd’s (Sunway) long-term prospects have been viewed as still intact despite headwinds in the property development sector.

AmResearch Sdn Bhd (AmResearch) yesterday believed that any blip in property revenue will not significantly hurt its long-term prospects, with its unbilled sales at RM2.5 billion (effective at RM1.8 billion) as at end-March while its other divisions will cushion the impact.

Nevertheless, it believed Sunway will likely see a decline in property sales in the financial year year 2015 forecast (FY15F) versus FY14’s RM1.7 billion (effective at RM1.3 billion) and its target of RM1.7 billion (effective at RM1.2 billion) for FY15F.

For the first half of FY15 (1HFY15), it posted RM500 million sales and targets the same for 2H, the research team noted.

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