Home News

Public Laud Budget Announcement On Home Ownership

Extract from Bernama (16/10/10)

KUALA LUMPUR -- Prime Minister Datuk Seri Najib Tun Razak's 2011 Budget announcement at the Dewan Rakyat yesterday, in which he said more houses will be built for the low-income group, has received positive reaction from the public.

They also held the view that the government should go one step further and allow bachelors a chance to own houses in this category.

"The government's plans are timely, especially in helping the poor and people in the low-income group to be able to afford homes," 24-year-old clerk Masjaya Andi told Bernama here Saturday.

While fully supporting the government's wish, he, however, expressed the hope that government could ease up house ownership conditions so more people can enjoy the facility.


100- Storey Tower Will Be A Catalyst For Tourism Growth - Yen Yen

Extract from Bernama (16/10/10)

GUA MUSANG -- The Tourism Ministry welcomed the proposal to construct a 100-storey tower as announced in the 2011 Budget by Prime Minister Datuk Seri Najib Razak in Parliament yesterday.

Its minister Datuk Seri Dr Ng Yen Yen said the tourism sector would flourish with the tower as it would attract tourists to Malaysia.

"It will not only be beneficial to the tourism industry, but also for the domestic trade sector.

"Malaysians should take this suggestion positively because this 100-storey tower is for the good of the country," she told reporters at the MCA elections operation room here Saturday.


Budget 2011 Helpful For Home Ownership - Rehda

Extract from Bernama (16/10/10)

KUALA LUMPUR -- The Real Estate and Housing Developers' Association (Rehda) Malaysia views Budget 2011 as positive and helpful for home ownership.

In a statement on Saturday, Deputy President Datuk FD Iskandar Tan Sri Mohamed Mansor said Rehda was grateful that the previously anticipated increase in real property gains tax and imposition of a loan-to-value mortgage ratio that was being weighed by the government, was not finalized during the budget.

"Rehda thanks Prime Minister Datuk Seri Najib Tun Razak for giving heed to our proposals and feedback on the above," he said.

He said the "Rumah Pertamaku" scheme was good news for the housing sector, as just over 73 per cent of property houses transacted fell under the category of below RM220,000.


Property Sector Driven By Liquidity

Extract from The Edge (15/10/10)

Property sector
Maintain trading buy: Malaysia’s residential property absorption rates are still below the eight-year average. Overhang rates in Selangor and Johor have improved due to stronger demand and a decreasing number of new launches. General affordability is still looking good. All price segments are reporting improved sales, driven by low interest rates, liquidity, innovative financing schemes, high savings rates, favorable lending environments, property as a preferred inflation hedge, EPF Account 2 monthly withdrawals for the repayment of one house and pent-up demand from the up-graders market. We expect the residential sector to register a new record sales level of RM52.9 billion (+26% year-on-year) in 2010. Large developers under our coverage, like S P Setia, IJM Land and Mah Sing Group, are reporting record high 2010 sales.

Malaysian house price index (HPI) trends indicate general residential prices have grown steadily and are moving in tandem with the consumer price index. But we do observe landed residential prices have gained momentum though we think it is confined to certain “hot spots”. Anecdotal evidence indicates a growing divergence between primary and secondary market prices. Already, some slight price corrections are observed, which we think is healthy for the long run. Nonetheless, residential prices will continue to maintain their long-term uptrend since replacement costs continue to rise.

The Klang Valley commercial segment’s looming incoming supply of circa 18 million sq ft in the medium term should limit rental growth. There is significant incoming supply for both retail and office space over next three or four years. Retail expects another three million sq ft supply in 2H10, or 13% of existing supply, and there will be 14.9 million sq ft of new office spaces in the next three or four years, equivalent to 21% of existing supply. This will add pressure on occupancy rates while potential tenants are spoilt for choice.

The government is mulling over capping loan-to-value (LTV) ratios for third property purchases onwards, progressive real property gains tax (RPGT) and cessation of international accounting standards (IAS) financing. We think implementation of progressive RPGT and cessation of IAS financing will be detrimental to property sales and sentiment.


IJM Land: Second Wave Of NAV Expansion

Extract from The Edge (15/10/10)

IJM Corporation Bhd
Maintain buy with fair value at RM3.88: We raise our fair value from RM3.60 per share to RM3.88 based on an unchanged 10% discount to our revised fully-diluted (FD) NAV of RM4.31 per share, which takes into account an estimated accretion of 31 sen per share (50% stake) from the acquisition of 2,000 acres of land at Canal City (GDV: RM6.5 billion).

The acquisition price of about RM5 psf is very attractive. Payment will be staggered over four years.

The maiden launch is expected to be in 4Q11.

The deal will give it a strong foothold in the lucrative township development in the Klang Valley.


Govt To Spend RM100m On Karambunai Resort

Extract from Business Times (16/10/10)

DEVELOPER and resort operator Karambunai Corp Bhd will build an integrated eco-tourism resort (IR) in Kota Kinabalu, Sabah, for over RM3 billion.

In unveiling the 2011 Budget yesterday, Prime Minister Datuk Seri Najib Tun Razak said the government will allocate RM100 million to part-finance the development.

Najib said the project will start next year.

The IR project is now under planning and it will take about five years to complete.

It is learned that the project, which may look like Singapore's Marina Bay Sands, will be developed over 200ha of land in the Karambunai peninsula.


Mixed Reaction To PNB's Tower Plan

Extract from Business Times (16/10/10)

Pemodalan Nasional Bhd plans to build a 100-storey tower which is due to be completed in 2015; the Petronas Twin Towers is 88-storey high.

Pemodalan Nasional Bhd's plan to build Malaysia's tallest tower on a 7.2ha area in the vicinity of Stadium Merdeka and Stadium Negara was met with mixed reaction from property experts.

Prime Minister Datuk Seri Najib Razak yesterday announced in his budget speech of PNB's plans to spend RM5 billion on an integrated development by 2020.

The development includes a 100-storey tower which is due to be completed in 2015. The Petronas Twin Towers is 88-storey high.

One property consultant, who declined to be named, said the developer of the tower will have to be very resourceful in order to secure tenants for the space. It is understood that the tower alone will have 3.5 million square feet of space.


Budget: Consumer Groups Laud Pertamaku Housing Scheme

Extract from Bernama (15/10/10)

KUALA LUMPUR -- Consumer groups have lauded Pertamaku housing scheme designed to help the young earning less RM3,000 monthly to buy houses as announced in Budget 2011.

Malaysian Muslim Consumers Association (PPIM) executive secretary Datuk Nadzim Johan said the government should be lauded for guaranteeing 10 percent down payment for first time buyers of houses costing less RM220,000.

"Coming up with the 10 percent down payment is not easy for middle income families," he added.

Pertamaku housing scheme to be implemented with cooperation of national mortgage company Cagamas Berhad which give qualified house buyers 100 percent loans.


Budget: Developers Positive On Stamp Duty Exemption For First-Time House Purchasers

Extract from Bernama (15/10/10)

KUALA LUMPUR -- Property developers are positive on the 50 per cent stamp duty exemption under Budget 2011 for first-time purchasers of houses priced under RM350,000 as this will enable lower-income groups to enjoy affordable homes.

This will reduce the cost of purchasing a house by up to RM3,000, and directly and indirectly benefit the buyers of properties in this price range, said Mah Sing Group Bhd's managing director Tan Sri Leong Hoy Kum.

"In the Klang Valley, we have double-storey homes in Bayu Sekamat, Hulu Langat, priced from RM271,000 and residential suites in Garden Plaza, Cyberjaya from RM228,800 as well as our lifestyle township Perdana series in Johor Baharu," he said in a statement Friday.

Leong said the government has been proactive in providing a conducive and streamlined business environment, and the Stamp Act 1949 was amended to enable the Valuation and Property Services Department to assess properties after the payment of stamp duty to the Inland Revenue Board.


Four-In-One Development

Extract from The Star (15/10/10)

SET to be the tallest building to date in Cyberjaya and geared towards obtaining Multimedia Super Corridor (MSC) status, Shaftsbury Square is the latest development to look out for.

It is developed by Shaftsbury Capital Sdn Bhd, a company wholly owned by Ikhasas Sdn Bhd, with a total land area of approximately 5.3ha (13.09 acres) and is expected to be completed within three years.

The freehold development comprises three office tower blocks, two blocks of luxury SOHO/Serviced apartments and 150 units of high-end retail shop-lots.

It is located within the Cyberjaya flagship zone with easy access via major expressway such as the LDP, SILK, South Klang Valley Expressway (SKVE), North-South Expressway.
Model: Tan (left) and Ikhasas Sdn Bhd executive director Roslan Zainal at the launch.