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Increasing interest in high-rise property seen in Sarawak

Extract from Borneo Post (25/8/2014)

KUCHING: The property buying trend in Sarawak, which has seen consumers opening up to the option of purchasing apartment or condominium units, have most likely been triggered by the rising prices of properties in general and safety concerns.

At the Sarawak Housing and Real Estate Developers Association (Sheda) Property Expo 2014 yesterday, exhibitor Lee Onn Construction Co (Lee Onn), highlighted that the main factor is pricing and that it sees more people willing to accept apartment concepts.

“In the past, many years ago, when we started doing apartments, you can see the older generation cannot take the concept, the idea.

“But nowadays, even the older generation, they will buy for their retirement. I think, living in an apartment, at least (tenants) will get the gated and guarded (environment),” a spokesperson at Lee Onn commented.

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Sarawak property market booming, says Sheda

Extract from Borneo Post (23/8/2014)

Sarawak Housing and Real Estate Developers’ Association (Sheda) president Zaidi Ahmad disclosed that the demand for properties has far exceeded supply.

“Over the last few years, the property market in Sarawak has experienced a boom.

“Whilst this is good news for our economy, we cannot escape the fact that rising house prices prevent a section of our population from enjoying the privilege of owning a home.

“The public perceives that there is a property bubble in Sarawak. They cannot imagine house prices any higher than they already are.

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UEM Sunrise net profit down on lower revenue

Extract from The Star (26/8/2014)

KUALA LUMPUR: UEM Sunrise Bhd has recorded a lower net profit of RM74.5mil in the second quarter ended June 30 against RM107.3mil a year ago due to lower sales.

The property developer’s revenue for the quarter also fell to RM447.6mil compared with RM475.9mil in the same quarter in 2013.

For the six-month period, its net profit was lower at RM136mil from RM318.4mil in same period last year due to lower revenue, which stood at RM849.2mil, a decrease from RM1.17bil last year when it included the strategic sale of 17.6ha in Puteri Harbour worth RM400.7mil.

Excluding the land sale, revenue from property development activities increased by 14% from RM689.2mil in 2013 to RM784mil, largely contributed by progress billings from its projects in Nusajaya namely East Ledang, Imperia, Nusa Bayu and Nusa Idaman as well as those in the Klang Valley, specifically Summer Suites and Symphony Hills.

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UEM Sunrise lowers sales target

Extract from Business Times (26/8/2014)

UEM Sunrise Bhd has scaled down its sales target for this year to RM2 billion from RM3.2 billion due to the property cooling measures.

Group executive director Datuk Izzaddin Idris said the measures have caused concern over potential oversupply in Iskandar Malaysia, particularly for high-rise units, resulting in a slowdown in buying momentum.

“This year has proven to be a challenging year for UEM Sunrise but it enables us to consolidate and seize the opportunity to strengthen our core competencies and tighten the quality of our delivery so that we are well-positioned for the next property up-cycle,” he said in a statement yesterday.

UEM Sunrise recorded a net profit of RM74.52 million on the back of RM447.63 million revenue in its second quarter ended June 30 2014.

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IOI Properties posts RM413mil net profit, 8 sen dividend

Extract from The Star (25/8/2014)

KUALA LUMPUR: IOI Properties Group Bhd posted a RM413mil net profit for its fourth quarter ended June 30, 2014.

In a statement to Bursa Malaysia on Monday, the group said revenue for the period stood at RM417.16mil.

Earnings per share was at 12.75 sen and the group has also declared an eight sen dividend per share.

For its full year, IOI Properties posted a RM913.39mil net profit while revenue stood at RM1.45bil.

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The impact of GST on property

Extract from The Star (23/8/2014)

Of late, there has been concern on how the impending Goods and Services Tax (GST), effective April 1, 2015, will impact the property sector.

Broadly, property buyers can be divided into two groups - those who want to buy before April 1 and those who want to buy post-GST.

There is an explanation for both groups for their decision. The main concern is the GST effect on prices.

According to three tax consultants, GST will result in an overall price increase, less on the residential sub-segment, but more on the commercial sub-segment.

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How will the GST affect rental income?

Extract from The Star (23/5/2014)

There is bound to be some confusion on the effect of the goods and services tax (GST) on the rental income of properties once the value-added tax takes effect on April 1, 2015.

It has been announced that the sale or leasing of residential property will be spared the value-added tax as it is categorised exempt-rated, while the leasing of commercial property will be subject to GST at a standard-rated 6%.

But it may not be that straightforward as some residential properties could be used for commercial purposes, and vice versa.

Currently, the Government is still pending a decision on the treatment of GST on rental income.

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Build-then-sell in 2015?

Extract from The Star (23/8/2014)

We are close enough to 2015 that the market is already speculating on Budget 2015. April 1, 2015 will see the introduction of the consumption-based goods and services tax (GST).

While we are hopeful of a reduction of the corporate and personal income tax rate and even more hopefully for the adjustment to the real property gain tax in light of the imposition of the 6% GST, there are something else looming in the backdrop of all real estate investors and home buyers alike.

Guided by the then minister’s speech in the parliament, 2015 is suppose to be the year where the build-then-sell (BTS) model shall be made mandatory for all housing developers to replace the ever-popular sell-then-build (STB) model that has certainly played a significant role in the rapid nation building in the last two decades.

In fact, the STB model of housing development is so significant to the extent that real estate investment has captured the imagination of the nation and abroad as the preferred tool in gaining wealth, hedging against inflation and shielding against any potential economic downturns.

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UEM Sunrise posts lower Q2 pre-tax profit

Extract from Business Times (25/8/2014)

KUALA LUMPUR: UEM Sunrise Bhd chalked up a lower pre-tax profit of RM91.23 million for the second quarter ended June 30, 2014 from RM136.84 million registered in the same quarter last year.

Revenue also declined to RM447.64 million, during the period under review, from RM475.93 million previously, due to lower property development revenue, said the company in a filing to Bursa Malaysia today.

The group said the outlook for the property market was expected to remain challenging for the rest of the year particularly in Johor where concerns of a potential oversupply and other factors have significantly dampened investors’ interest. - BERNAMA

‘Perdana Quay progressing well’

Extract from Business Times (24/8/2014)

Tradewinds Corp Bhd’s massive Perdana Quay development is progressing well with the latest component, the RM60 million modern fishermen activity centre called the Nelayan Pier, unveiled recently.

Perdana Quay Development chief operating officer Muhd Najib Mohd Rawi said the new fisherman wharf and related facilities in the Nelayan Pier will be located next to the proposed marina extension at Perdana Quay.

“Construction of Nelayan Pier on 2.8ha site will start soon and is expected to be completed by 2016,” Muhd Najib said after the ground-breaking, which was officiated by Kedah executive councillor and State Tourism Council chairman Datuk Mohd Rawi Abdul Hamid, here, on Saturday.

Also present was Tradewinds Corp chief operating officer Arief Nasran Abdul Wahab.

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