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‘Positive for property sector’

Extract from Business Times (11/10/2014)

KUALA LUMPUR: Real Estate and Housing Developers Association Malaysia (Rehda) president Datuk Seri FD Iskandar Mansor says the 2015 Budget was fairly positive for the property sector and hopes banks will ease their lending rules for first-time house buyers.

“We are happy as the issues faced by youths were addressed in this budget. We hope the banks will take to lending. It is their job to lend. We developers want to build more affordable houses. But if people can’t borrow, then how are we going to build?” FD Iskandar told Business Times.

The government is increasing house ownership with the Youth Housing Scheme, which offers a funding limit for a first house not exceeding RM500,000 for married youths aged between 25 and 40 years and with household income not exceeding RM10,000.

Under the scheme, the government will provide a RM200 monthly financial assistance to borrowers for the first two years to reduce the burden of monthly instalments. 


Report: More funds for building affordable houses

Extract from Bernama (10/10/2014)

KUALA LUMPUR: The government will continue to allocate funds to build affordable houses in an effort to provide adequate housing for the low-income group.

The Economic Report 2014/2015 said the houses were being built under various government programmes such as Rumah Mesra Rakyat (RMR), Rumah Mampu Milik (RMM), Rumah Idaman Rakyat (RIR), Rumah Mesra Rakyat 1Malaysia and the 1Malaysia Housing Programme (PR1MA).

The new category, Rumah Mesra Rakyat, was introduced in Budget 2013 with the sale prices ranging from RM45,000 to RM65,000 per unit.

The new category comes with a government subsidy of RM15,000 and RM20,000 per unit. The government has also allocated RM1 billion under PR1MA to build 80,000 units.


Mixed developments poised to gain from Budget 2015

Extract from Borneo Post (10/10/2014)

KUCHING: Property players with mixed development projects under their belt are poised to benefit from housing measures slated to be announced during Budget 2015.

The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) said amongst the key beneficiaries would be companies with good mix of medium to low-end pricing properties such as Mah Sing Group Bhd, IJM Land Bhd and LBS Bina Group Bhd.

To a lesser extent, the research firm said UEM Sunrise Bhd could also benefit from their product mix and landbank sale.

On the flip side, companies with sizable exposure to high-end properties such as Eastern & Oriental Bhd, SP Setia Bhd and Sunway Bhd could face some setbacks.


Developer’s experience as architect pays off

Extract from The Star (10/10/2014)

As a young architect, Datuk Roslan Khalid learned about the aspects of designing, managing and building residential projects. This experience was what drove him to be a successful developer.

Today, he is the head of developer at RK Group (Malaysia) Sdn Bhd, which was set up in 2000.

RK Group is also an investment holding company with wholly owned subsidiaries in property development, construction, project and property management, and property and retail complex management.

With more than three decades of industry experience, RK Group has successfully completed RM225mil worth of projects to date, and has another RM505mil worth of projects to be launched over the next five years.


More perks for My First Home Scheme

Extract from The Sun Daily (10/10/2014)

PETALING JAYA: The government is expected to announce more measures for the affordable housing segment in Budget 2015 including the return of the full loan facility under the My First Home Scheme, said MIDF Research.

"We anticipate some of the measures introduced in prior years to make a comeback (full loan facility under My First Home Scheme) or extended (50% exemption in stamp duty for first-time buyers of houses worth RM400,000 and below) and broadened (better incentive to encourage private developer participation to build low to medium cost properties, and more 1Malaysia People's Housing Scheme/People's Housing Programme units built in 2015)," its analyst Annuar Rahman said in a report yesterday.

He said further relief targeted at first-home buyers such as zero-rated goods and services tax (GST) for properties worth RM400,000 and below as lobbied by the Real Estate & Housing Developers Association Malaysia, can be expected.

"The floor price of properties accessible to foreigners could also be raised and providing cheaper funding for first-time buyers. We are not expecting another round of hike in real property gains tax," he added.


MIDF ‘neutral’ on property sector

Extract from Business Times (9/10/014)

MIDF Research expects to see more measures focused towards affordable housing in the 2015 Budget, to be tabled later today.

This follows the rationalisation in petrol subsidy and the imminent Goods and Services Tax (GST) imposition next year.

“We anticipate some of the measures introduced in prior years to make a comeback or extended and broadened,” MIDF Research said, citing full loan facility under the My First Home Scheme, 50 per cent stamp duty exemption for first-time house buyers for units worth RM400,000 and below, as well as better incentives to encourage private developers to build low- to medium-cost properties and more PR1MA/PPR (low- cost houses) units built next year.

“We also expect further relief targeted at first-time house buyers such as zero-rated GST for properties worth RM400,000 and below as lobbied by the Real Estate and Housing Developers Association,” it added.


Ireka unit wins RM276.79mil contract from KL Eco City

Extract from The Star (9/10/2014)

KUALA LUMPUR: Ireka Corp Bhd’s infrastructure arm, Ireka Engineering and Construction Sdn Bhd, has bagged a RM276.79mil construction contract from KL Eco City Sdn Bhd.

Under the contract, Ireka will be responsible for the main building works of the retail podium, office Block A and the remaining works for the basement levels at the KL Eco City’s mixed development project. — Bernama

Housing affordability not addressed in Budget 2014

Extract from The Sun Daily (9/10/2014)

PETALING JAYA: Property developers and real estate agents feel that measures announced in Budget 2014 failed to address the affordability and hope that the government will announce more effective measures in Budget 2015.

"Budget 2014 only managed to slow down the number of property transactions but values remain high," Malaysian Institute of Estate Agents (MIEA) president Siva Shanker told SunBiz.

"We wish the government would be more inclusive in policy making decisions and engage all stakeholders or else they miss out on the big picture, and end up setting policies that cause knee-jerk reactions," he said.

MIEA, which represents registered real estate practitioners in the country, wants the government to focus more on affordability especially for young, first-time house buyers in Budget 2015.


Ireka wins RM276.79m building contract

Extract from The Sun Daily (9/10/2014)

PETALING JAYA: Ireka Corp Bhd's unit, Ireka Engineering and Construction Sdn Bhd, has bagged a RM276.79 million contract from KL Eco City Sdn Bhd for the construction of a mixed development project.

The job for the construction of retail podium, office block main buildings and basement levels is for a mixed development project located in Bangsar. The project is a joint venture between Kuala Lumpur City Hall and KL Eco City.

Work is to start on Oct 15, 2014 and completed in 29 months.

"We are delighted and proud to have won this contract. This second contract shows the recognition and confidence that KL Eco City has on Ireka," said its managing director Datuk Lai Siew Wah.


LBS to continue focus on innovation, affordability

Extract from Business Times (8/10/2014)

KUALA LUMPUR: LBS Bina Group Bhd (LBS) says it will continue to focus on innovative lifestyle products and affordable housing to meet increasing demand from first-time buyers and young single professionals.

Managing director Datuk Seri Lim Hock San said more and more young buyers are looking at housing developments with innovative designs and features that meet their contemporary lifestyles.

Affordability remains a key concern, but he is confident that buying momentum will pick up in the second half of the year, driven by continued demand from first-time buyers as well as those buying ahead of the implementation of the six per cent Goods and Services Tax next year. 

“Buying your first property is very exciting. So, invest in good value properties instead of deciding based on the price factor,” he said in a statement yesterday.