KL airbase relocation works give TRX City a boost
R from www.theedgeproperty.com.my/content/829005/kl-airbase-relocation-works-give-trx-city-boost TRX City Sdn Bhd (formerly known as 1MDB Real Estate Sdn Bhd) saw a net profit of RM380.6 million in the financial year ended March 31, 2015 (FY2015). But it could have been a lot less had it not been for the income from the relocation of the Kuala Lumpur Air Force base (Pangkalan Udara Kuala Lumpur or PUKL). The company posted a net profit of RM858.3 million in the previous year. According to its CEO Datuk Azmar Talib, TRX City has three projects, including the development and upgrading of facilities for the Royal Malaysian Air Force, Rejimen Artileri Diraja and Royal Malaysian Police Air Wing. “In FY2015, Tun Razak Exchange (TRX) was in the midst of earthworks and infrastructure works, and we are finalising the Bandar Malaysia project master plan. Both projects did not contribute any revenue to the TRX City group. The PUKL project, meanwhile, was progressing well into the construction stage and contributed revenue of RM478 million,” Azmar says in an email reply to The Edge. The group has signed four deals with local and foreign companies for the development of TRX and Bandar Malaysia since 2014. According to TRX City’s FY2015 financial report obtained by The Edge, the real estate arm of the soon-to-be-closed 1Malaysia Development Bhd (1MDB) reported lower changes in the fair value of its investment properties during the 12-month period ended March 31 last year, which resulted in the lower profits. The lower changes were probably due to the group reclassifying its investment properties into land held for property development as it has started developing some portions of the land in Jalan Tun Razak. During the period, TRX City disposed of the freehold tract in Sungai Besi to its then wholly-owned subsidiary Bandar Malaysia Sdn Bhd for RM4.2 billion. Sixty per cent of Bandar Malaysia was acquired by a consortium comprising Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corp (M) Sdn Bhd late last year for RM5.28 billion. While TRX City was supposed to be the real estate developer of the strategic investment fund, actual works on the site, especially at TRX, commenced only about a year ago. The company has awarded two infrastructure contract packages to WCT Holdings Bhd — in 2013 and 2015. When The Edge visited the TRX site last Wednesday on the group’s invitation, infrastructure works were in full swing, with about 470m of the ingress-egress tunnel connecting the project to Jalan Tun Razak almost completed. Major earthworks and other utilities infrastructure work are also being carried out, while construction of the underground floors of the 90-storey Signature Tower has been completed. Mulia Group is the developer of the tower, which is set to become the anchor of the financial quarter of TRX. Despite some progress on the site, TRX is far from becoming a revenue-generating unit for TRX City. According to Azmar, due to the nature of the project as a property development, revenue and profit are recognised using the percentage of completion method, in compliance with the Malaysian Financial Reporting Standards. “TRX City entered into joint ventures and land sales transactions with Lendlease on March 19 last year. As at March 31, 2015, the agreement was subject to the fulfilment of conditions precedent, and neither revenue nor profit were available to be recognised. “Going forward, as the development activities of TRX intensify, the project is expected to contribute substantially to TRX City’s revenue and profit,” Azmar says in the email reply. It is thus certainly not by chance that the group is undertaking the relocation of the Kuala Lumpur airbase and the development of eight sites to house the armed forces throughout the country. To recap, in June 2011, 1MDB and the federal government signed a development and relocation agreement for PUKL for a total project cost of RM2.7 billion. Six million sq ft of new facilities will be built in eight different locations for the armed forces, which is three times more than the old airbase floor area. In return for 1MDB undertaking the construction of the new bases, the strategic development fund was given a cash payment and land. This includes the 480-acre Sungai Besi airport tract, to be developed into Bandar Malaysia, worth RM1.6 billion. The federal government has agreed to pay the remaining RM1.1 billion in construction cost upon the actual cost being incurred. Any cost overruns or penalties will be borne by 1MDB, with the cost to the federal government remaining at RM2.7 billion. Subsequently, 1MDB appointed Perbadanan Perwira Harta Malaysia, a unit of Lembaga Tabung Angkatan Tentera or the Armed Forces Fund Board, as the sole turnkey contractor to undertake certain construction works in the relocation of the Kuala Lumpur airbase. It is unclear what “certain construction works” entail. Azmar says the relocation is ongoing, with an overall completion progress of 50%. “There are eight sites and each has its own schedule.” Based on TRX City’s 2015 annual report, the group recorded revenue of RM478 million in FY2015, derived mainly from the construction contracts awarded by 1MDB to undertake the relocation of PUKL. TRX City has raised a substantial amount of money through debts to part-finance the relocation of the airbase, as part of the Bandar Malaysia development agreement. On Dec 20, 2013, the group accepted a RM550 million term-loan facility to partially finance the relocation works. The term loan was for a tenure of a year with a bullet repayment of the principal sum on Jan 7 last year. TRX City had redeemed the term loan in FY2015, which resulted in its cash and cash equivalents plunging to RM11.2 million from RM555.66 million in the preceding year. Besides the term-loan facility, the group also issued RM2.4 billion (nominal value) under a sukuk murabahah programme. The proceeds have been utilised to part-finance the cost of the relocation project and to fund its working capital requirements. Indeed, revenue from the relocation and development of the airbase has been keeping TRX City afloat as the development of TRX has not contributed much revenue or profit to the group. This is because the disposal of land in TRX to investors is subject to the master developer completing the required infrastructure. According to a TRX City official, some of the land deals the company has entered into with investors have long-term staggered payment periods. Besides Lendlease, which is developing a lifestyle quarter with TRX City, other companies that have purchased tracts within TRX include Lembaga Tabung Haji (1.6 acres for RM177.5 million) and Affin Bank Bhd (1.25 acres for RM255 million).
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Best Ways to Increase Home Value & Utilize SpaceWow! The innovation and creativity is amazing. For such small space 309sf, they can fit in 2 adults, 3 cats with bathtub, big kitchen, cats fun elements, huge TV & big home cinema, GYM etc... That's the best ways to increase home value and utilize the space. With announcement from Bank Negara Malaysia's (BNM) to reduce the Overnight Policy Rate (OPR) by 25 basis points to 3% days back, Maybank is the first bank to act on by reducing the interest rates for loans by 20 basis points. We expect the other banks will follow soon. This move by BNM will expect to give a positive boost to the current soft Malaysia Property Market. Not only that, Malaysian real estate investment trusts (M-REITs) also have more options on investment channel with the loosen from BNM. We hope that more good news coming to help to boost the Malaysia property market. Here's three news relate to the announcement and aftermath action from the banks & M-REITs. Maybank lowers interest rates to 3%Refer from StarProperty.my KUALA LUMPUR: Malayan Banking Bhd is lowering the interest rates for loans and savings by 20 basis points with effect from Friday. It said the base rate (BR) will belowered by 20 basis points from 3.20% per annum to 3% per annum while its base lending rate (BLR) will also be revised from 6.85% to 6.65% per annum. The Islamic base rate and base financing rate will be reduced by 20 basis points to 3% per annum and 6.65% per annumn respectively from 3.20% and 6.85% previously. The move by the country’s largest bank followed Bank Negara Malaysia’s (BNM) unexpected move to reduce the Overnight Policy Rate (OPR) by 25 basis points to 3% at its Monetary Policy Committee (MPC) meeting, citing rising risks from Britain’s exit from the European Union. BNM said the ceiling and floor rates of the corridor for the OPR were correspondingly reduced to 3.25% and 2.75% respectively. In a statement issued on Thursday, Maybank’s group president & CEO, Datuk Abdul Farid Alias said the revision in Maybank’s rates will benefit borrowers as all loans/financing pegged to the base rates or BLR/BFR would also be adjusted accordingly. “This revision will assist existing and potential borrowers contend with the current challenging environment and help spur economic and business growth in the country,” he said. “We believe it will also support the government’s efforts to ensure that the domestic economy can continue on a steady growth path.” In line with the reduction in BLR/BFR and base rates, Maybank’s deposit rates will also be revised downwards by up to 20 basis points. The last revision in Maybank’s BLR was in July 2014 when it was raised by 25 basis points to 6.85% per annum. OPR cut to boost demand in property sectorRefer from StarProperty.my KUALA LUMPUR: The 25 basis points (bps) key interest rate cut by Bank Negara is positive for property sector as it will help bolster flagging demand, said PublicInvest Research. The research house said on Thursday that it estimated that the 25bps cut would boost affordability as it will reduce mortgage amount by about 3.2%. “That said, the overall impact depends on banks’ pricing of the risks that affects credit spreads andvmargin of financing (especially for new loans). “All told, it is positive for property sector but weak demand currently is still a concern but sales recovery, which is expected in 2H2016 could provide a stronger rerating catalyst for the sector,” it said. Bank Negara has cut its key interest rate to 3.00% from 3.25% previously, the first cut since February 2009. PublicInvest Research maintained Overweight on the property sector. Although demand is still weak due to concerns over the slowing economy and tightening credit, property developers are expected to register better sales compared to 1H2016 with more launches expected in the next few months. “Also, most of the property developers’ earnings in the near term are also underpinned by healthy unbilled sales both locally and from overseas,” it said. It added that property stocks were trading near undeserving distressed valuations albeit recovering somewhat to trade at -1SD below the mean at c.0.7 times discount to book value currently. “As for the counters under our coverage, we maintain our recommendations except for Eastern and Oriental (E&O) which has moved close to our target price, and hence downgraded to Neutral,” it said. Interest rate cut gives fillip for Malaysian REITsRefer from StarProperty.my
PETALING JAYA: The overnight policy rate (OPR) rate cut, coupled with proposed measures for mature Malaysian real estate investment trusts (M-REITs) to diversify their investment options, such as embarking on property development, is giving a boost to the otherwise staid sector. Property stocks including M-REITs enjoyed a brief run-up on Wednesday but remained muted yesterday, although interest in the latter group is expected to emerge following the issuance of a consultation paper by the Securities Commission (SC) on 16 proposals “to facilitate growth of the maturing M-REITs market”. A key aspect of the proposed changes is to allow M-REITs to invest in a wider range of asset classes, one of which is to allow them to acquire vacant land and undertake property development. Currently, apart from investments in existing yielding property, REITs in Malaysia are allowed a 10% cap on acquisitions of properties under construction. This is due to the fact that REITs were not meant to carry construction risks, as their investors are typically yield seekers. However, the SC’s proposal is to now set a 15% cap on M-REITs’ total asset value for property development, acquisition of vacant land as well as property under construction. Despite the existing restrictions, a few M-REITs had in the past sought waivers from the regulator for the purchase of vacant land to extend their existing properties, such as Al-Aqar Healtcare REIT in 2012 when it bought land next to its KPJ hospital in Johor, and more recently, Sunway REITs’ purchase of land next to its Sunway Carnival Mall in Penang. According to the SC, the move to liberalise the requirements on M-REITs will enable them to create more value for their investors. Under the current requirements, M-REITs that hold old and outdated properties would have to sell these buildings back to their sponsors to be redeveloped, and then repurchase these properties later. “Allowing M-REITs to undertake redevelopment of their old properties will enable them to enhance the property yield for the benefit of unit holders. “Similarly, allowing M-REITs to acquire vacant land for purposes of developing new properties will enable them to grow their portfolio of income-generating real estate,” the SC said in the consultation paper. However, it said the M-REITs that undertake property development must continue to hold the completed property for at least two years from the date of completion. This, it said, was to ensure that the development activities were conducted purely to enhance its income-generating capacity. The move to allow property development is not new in the region, as Singapore, which had an earlier 10% limit on property development for its REITs, raised it to 25% last year. In Hong Kong, property development is limited to 10% of the gross asset value of the REIT. Another major change proposed by the SC is a fixed leverage limit of 50% for M-REITs. Currently, M-REITs are already subjected to a 50% limit on their debts, but this can be increased with the approval of unit holders via an ordinary resolution. “With the current flexibility, there is a risk that an M-REIT may over-leverage in pursuit of rapid growth,” the SC said. The regulator said the move to set a fixed leverage limit is to contain this risk as well as to ensure sustainable growth. The consultation paper was issued yesterday, with feedback from the industry due by Sept 13, 2016, following which, the proposals will come into effect. Meanwhile, following the cut in the OPR, some analysts have unsuprisingly turned more positive on M-REITs, which according to Hong Leong Investment Bank Research (HLIB Research) “is often the darling of equity investors during monetary easing”. This is because of the REITs’ “stability and high-yielding nature”, pointed out HLIB Research, which has upgraded its rating on the sector to “overweight”, noting that the average M-REIT yield stands at 6.2%. Affin Hwang Capital noted that “high-yielding sectors such as REITs and companies with high local debt” would be beneficiaries of the lower interest rates. HLIB Research added that another catalyst for the sector was the enhancement of the guidelines by the SC to enable M-REITs to embark on greenfield development. This could lead to “potential acquisitions of quality assets (by M-REITs) to achieve growth as a softer property outlook presents such an opportunity”. Analysts highlighted two other positive effects of the OPR cut on M-REITS. One is that lower interest rates should lead to lower interest payments by REITs which typically gear up to buy their assets. And secondly, the OPR cut should translate into more savings and thus larger disposal incomes for consumers who could be spending more in retail malls, which is a key asset base of a number of M-REITS. But HLIB Research pointed out that the lower interest rates are unlikely to lead to significant interest savings for M-REITs, as the majority of their borrowings are in fixed-rate loans. CIMB Research, however, pointed out that it estimates that the OPR cut could see “consumers pocketing an extra RM2.1bil a year due to lower interest payments. Nonetheless, we believe that there will not be a spike in consumer spending in the near term, given the uncertain global economic backdrop.” CIMB Research has maintained its “neutral” stance on the sector. Malaysia’s REIT market had a total market capitalisation of RM41.07bil as at June 30, 2016, accounting for 17 REITs, including four Islamic REITs. Wishing all Muslims Selamat Hari Raya Aidilfitri!
May you enjoy the joyous celebrations with your loved ones. Drive safe and steady. First Time Property Buyer... Still the strong sector in property sales thought market is soft6/30/2016 Yesterday we are talking about market soft but certain project still selling very well. Today we are looking into which group of buyer is the one moving fast. Basically, its "if you don't buy now, its hard to buy later" concept. Here's some good sharing from Christina Chin. Demand from first-time buyers still strong despite affordability challenge BY CHRISTINA CHIN Refer from TheStar Online PETALING JAYA: Instead of blowing their cash on pricey gadgets, young Malaysians are saving up for their first home. While most Gen Y shy away from owning property in developed countries and big cities, demand from millennials here is still holding, especially with parents assisting them with the downpayment, Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Seri F.D. Iskandar said. (Gen Y, also known as millennials, are commonly referred to those who are born in the early 1980s to 2000s. They are sometimes referred to as the strawberry generation). Demand from first-time buyers, including the younger generation, remains strong although housing affordability is a challenge, said Bank Negara. The central bank added that they accounted for 75% of 1.47 million borrowers. Owning and investing in a house remains a priority for many Malaysians. This is reflected in the household borrowing trend where the buying of homes continues to be the fastest growing segment of household lending, with annual growth sustained at double-digit levels (11% as at end-March 2016), said Bank Negara in a statement. Those who cannot afford it themselves, and do not have parents to help, turn to their friends. In his 30s, Daryl Toh, and two of his college mates own a condominium in Penang; they pooled their resources to purchase the unit five years ago. “It’s in a premium area and since we couldn’t afford a place on our own – at least not prime property, we became joint owners.” Financial adviser Yap Ming Hui said it makes perfect sense to own. “Of course the Gen Y here are still keen on buying. You pay the instalments and eventually own a home. Only those who can’t afford to buy are forced to rent.” Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector of Malaysia adviser Wong Kok Soo said property prices in Hong Kong have escalated beyond the purchasing power of the Gen Y but the trend hasn’t caught on here – yet. Wong, who is also a consultant with the National House Buyers Association, however, said there were signs that the Gen Y could no longer afford to live in big cities like Kuala Lumpur, Penang Island, Johor Baru and Sabah. “Parents are chipping in for the downpayment. And, commuting from the suburbs to the city centre is still an option. “But when prices get inflated far beyond their means, the same will happen here (as in Hong Kong),” said Wong, who, however, felt that even if demand dropped, it would not be substantial. Iskandar agreed, saying that although the property market was slow now, the drop was manageable. “Like everything else, it’s cyclical. “The property market goes up for years and after some time, begins falling before rising again.” He said the market would pick up with the completion of infrastructure development and public transportation facilities. Rehda, he said, was working closely with the Government to find ways to facilitate home acquisition especially among first-time buyers. “We proposed a review of the financing guidelines that have negatively impacted buyers’ ability to secure financing,” he said. MPIGHOME.com would like to show our gratitude towards your support over our facebook group and our websites. We have now reaching 6000 likes strong in our Facebook group with monthly more than 5000 unique visitors to our websites. Without your support, we wont be able to reach this milestone and keep going forwards.
Our facebook group is been active since 6th June 2013. Its marks our third anniversary when our facebook followers reach 6000. What a coincidence. Once again We thanks for your support and we wish you continue following us and support us. We will strive to provide more value and work it better in coming years. Thank You!!! Property market have been slowing down since mid of last year. Actually not only property but its overall market. Its also funny that we keep hearing certain projects sold high percentage, X amount of units within X days. Its not one but it happens quite frequent for the same period of slow market. So which is true? Here's another news that the latest launch in Kota Damansara is selling like hot cake. This news is pluck from Starproperty.my Buyers camp for Emporis launch PETALING JAYA: Purchasers queuing up overnight to buy a property seemed hardly news in the good old days of property market boom, but in these days, it is an increasingly rare phenomenon, especially in a soft launch event. SCland Group’s Emporis project at Kota Damansara, which has yet set a date for its official launch, had sold 90% of the duplex suites, 75% of the serviced residences and 70% of the three and five-storey retail shops. Emporis had held a soft launch event of its first phase of Block A on last Saturday, June 18 at the Emporis Sales Gallery. The event opened to registered buyers has seen buyers flying in from Kota Kinabalu and queuing overnight to seal the deal. Roy Ong, an investment consultant, 37, was the first buyer to purchase a RM700,000 unit at the event. He said he and his friend had waited there the night before to ensure they would not miss out on the deal. Location, price and future property demand in the area were among the factors of his eagerness to secure an Emporis unit. Pang Swee Foo, 34, said he learned of this event through other buyers and bought a 880-sq ft unit for investment purposes. He listed mature township, location, transport infrastructure, education facilities and affordability as the reasons of his investment. Situated at the bustling Kota Damansara, the 6.9-acre leasehold land will comprise of two blocks of serviced residence with 308 units each, retail shops of three and five stories, and one block of 204-unit duplex suites. The built-up areas of the residential units range from 750 sq ft to 1,047 sq ft with price ranging from RM561,720 to RM959,000. The price per sq ft starts from RM750. To ensure a good living environment, the facilities deck that spans more than two acres include a 50m Olympic pool, tennis court, basketball court, gymnasium, exercise lawn, seating nests, playground, BBQ terrace party deck, garden pavilion, games’ room, reading room, multipurpose hall, Jacuzzi lounge, herb garden and etc. The five-storey Market Place with retail spaces ranging from 12,000 sq ft to 20,000 sq ft poises to be a great location for supermarkets, restaurants, family entertainment centres IT marts and more. Situated at the township of Kota Damansara, Emporis is short drive away from the shopping precinct of Giza and Nexis, as well as comfortable close to the business and commercial area of Dataran Sunway the The Strand. Segi University, UniKL, Sri KDU and St. Joseph International School were all within easy reach of Emporis, while the established Tropicana Medical Centre promises convenient health care for the residents.y
The development is strategically located at the Persiaran Surian corridor and within close proximity to the Kota Damansara MRT station, which is reachable on foot or by feeder bus. Emporis is highly accessible via NKVE and LDP, while the proposed Dash highway interchange will provide easy passage to Mont Kiara and Shah Alam. The development is expected to be completed in 2020. How many of us seen a 7 Star hotel? This is how the claimed China's Richest Kid spent his family riches to build Shanghai's First 7 Star Hotel. This article also shows some of the design and facilities that is provided in the hotel. China’s Richest Kid Spent Over $500 Million to Build Shanghai’s First 7-Star Hotel Article refer from http://nextshark.com/wang-sicong-wanda-reign-7-star-hotel/ Many of us can’t afford to stay at five-star hotels, so chances are we don’t even know what a seven-star hotel looks like. The son of China’s richest man, Wang Sicong, recently spent $516.7 million dollars building Shanghai’s first seven-star hotel. Thanks to him, we can now gawk at the beautiful pictures online. The Wanda Reign on the Bund, conveniently located on the Bund, Huangpu River, is scheduled for its grand opening this Saturday, June 18, in Shanghai. Those who are able to fork out an arm and a leg to stay at one of their luxurious rooms can bask in its opulence and take in the scenic views of the Pudong skyline. The hotel features 179 rooms and 14 suites that are “digitally controlled and equipped with wireless control dashboards, valet services boxes, Hermes or L’Occitane amenities, and the “Bed of Reign” that features “exquisite bed linen.” Sicong, who is known as China’s richest son, gained publicity when he blew thirty grand at a nightclub and over$380,000 at a karaoke bar on another night. For his hotel, Sicong hired famous British architect Norman Robert Foster to design the Wanda Reign. According to Shanghaiist, Foster is known for his work on landmark office buildings in the U.K. The Wanda Reign on the Bund also boasts a number of restaurants that include buffet breakfasts, Shanghainese afternoon tea and all-you-can-eat dinners. MARC, a French fine-dining restaurant and club, is headed by two-star Michelin chef Marc Meneau. The hotel also has a grand ballroom, conference and multi-purpose function rooms for various events. Sicong is aiming to make the hotel both a business and recreation destination. The “Club Reign” is described as a private luxury club of Wanda Hotels and Resorts. “The extravagant recreational facilities and majestic views of the city will create an intimate, exclusive business and leisure environment. Club Reign will generate a profound sense of dignity for VIP members,” according to the hotel’s website. Photos from the website also show a dazzling pool and a well-equipped fitness center It is great to hear that this mega project is ready to construct. It will bring further excitement to the area which already happening enough. It will further appreciates the property values nearby. Lets read further from the news from The Edge websites Bukit Bintang City Centre project to start in September 2016 The development of the Bukit Bintang City Centre (BBCC) (pictured), the country's new iconic project in Kuala Lumpur, is expected to begin in September, UDA Holdings Bhd chairman Datuk Mohd Shafei Abdullah said. He said the project would be completed in stages, of which the first phase expected to be completed in four years' time. The first phase, with a gross development value (GDV) of RM4.7 billion, comprises a hotel, the bazaar people, offices, a condominium, a Mitsui Shopping Centre, a 2.43ha green park and a concert hall, he added. Personally I am very happy to hear this news as its the way of going towards a cleaner and beautiful environment. I do know a lot people don't like it such as "business loan", "Property agent", "Aircond, lorry, mover, etc"... What do you think this move? Will it help? DBKL: Advertisers now face harsher penalties BY SHALINI RAVINDRAN WHETHER they are tied up, glued on, nailed or framed, one can see illegal advertisements everywhere – on streetlights, trees, and even road signs. From advertisements of upcoming events, and moneylender services to the sale of adult toys, such advertisements have become an almost permanent feature of Kuala Lumpur’s landscape. Fed up with illegal “advertisers”, Kuala Lumpur City Hall (DBKL) is going hard on owners of premises where an event is to be held based on information stated in the illegal advertisements. Beginning June 1, the stakes are higher for these premises owners, such as management of shopping complexes and exhibition halls. Any commercial advertising via banners, bunting or posters without approval can result in the suspension or termination of their business licence. DBKL Licensing and Petty Traders Management Department director Datuk Ibrahim Yusof said the move was the next phase in its war against illegal advertisements. “Many of the advertisements put up are by private business owners and exhibition organisers. “Although the owners or event organisers put up the ads through a third party, the premises owner must still take responsibility. “Previously, if we saw any banner or poster with company names or highlighting events, we would send them two warning notices. “If they failed to comply, we would compound them. “Now, we will revoke their licences if they do not adhere to the set conditions,” he said. Ibrahim said commercial advertising on the streets was not legal. “Only the Government is allowed to advertise its events. “Those wanting to advertise their products and services have to go through the proper channels such as advertising in newspapers and on LED signboards on streets,” he added. “The perpetrators know that even if they are caught, the penalty is low. “That is why Kuala Lumpur mayor Datuk Seri Mohd Amin Nordin Abdul Aziz has called for a review of the fines imposed. “We want to review the existing compounds and make amendments to increase the maximum fine from RM2,000 to RM50,000 as a deterrent,” Ibrahim said. Currently a maximum of RM2,000 fine is imposed for the offence of putting up illegal advertisements in the city. The penalty is provided for under Advertisement By-laws (Federal Territory) 1982 and the Vandalism By-laws (Federal Territory Kuala Lumpur) 1991. Datuk Pardip Kumar Kukreja, a member of Pemudah (Special Taskforce to Facilitate Businesses), said illegal advertisements were one of the top three concerns raised by foreign investors, behind crime and traffic congestion issues. Pardip, who co-chairs the Illegal Advertisement Taskforce with Ibrahim, said sterner action was needed to deal with the issue. “The problem persists because the penalty is not harsh enough. “Even the cost of printing the materials is cheap, so the offenders do not feel the pinch when the advertisements are removed. “They will just reprint and put them up again,” he said. He added that DBKL could not act against companies caught printing illegal advertisements as there were no legal provision to do so. “As they are not violating printing laws by producing these materials, it remains a lucrative business for printing companies,” he said. However, Pardip said the authorities had seen a significant improvement in the seven months since the establishment of the taskforce. “We have 14 teams comprising six to eight personnel to remove illegal advertisements. “While the first few months were focused on the city centre, we are now targetting Segambut, Kepong and Seputeh,” he said.
Last year, DBKL removed 1.3 million illegal posters, banners, bunting and stickers and was close to reaching 500,000 in the first half of the year. DBKL also worked with the Malaysian Communications and Multimedia Commission (MCMC) to cancel the telephone numbers displayed on illegal advertisements. Since last year, 1,829 telephone numbers listed on illegal advertisements had been submitted to MCMC of which, 1,256 were terminated. Over 670 compounds were issued while 520 cases were taken to court. What’s interesting is that the illegal banners were not simply discarded, but upcycled. “Through the Local Agenda 21 (LA21), illegal banners collected in the city are made into reusable bags, aprons and stationery cases,” Pardip said. Bukit Bandaraya Residents Association advisor Datuk M. Ali said the community had been actively keeping their area free of illegal advertisements for the past 10 years. “We are totally against the display of bunting, whether legal or illegal, in our housing area. “For over a decade we have been pursuing DBKL to stop issuing licences and to take legal action against the culprits. “We also suggested that DBKL study the legal aspects and stipulate a condition in the annual permits or licences issued by them. “We are happy that it is being addressed now,” he said. However, Ali said digital display boards in lieu of traditional advertising being placed close to traffic lights junctions on the streetlamps were a traffic hazard. “DBKL must not only be concerned with revenue generation but must be proactive towards safety as well,” he said. The Mont Kiara Consultative Council (MKCC), comprising 48 entities including resident associations, management corporations and joint management bodies, said the communities must take an active role. Its chairman Carol Lee said each member would monitor a zone to ensure it was free of advertisements. “It is unrealistic to expect DBKL to continuously ensure there are no illegal advertisements. “So, whenever we see any posters or stickers, we will inform DBKL before removing them. “We must not have the perception that this is the authorities’ job and wait for them to take action,” she said, adding that the council had been actively removing illegal advertising since May. New Property Launch
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BY MAK KUM SHI makks@thestar.com.my ALTHOUGH economic sentiments have impacted various property sub-sectors in 2015, there have been silver linings, particularly in retail and offices. The National Property Information Centre (Napic) from the Ministry of Finance’s Valuation and Property Services Department had indicated a slight downturn in property market activity last year. Market volume recorded at 362,105 transactions worth RM149.9bil in 2015, a marginal reduction of 5.7% in volume and 8.0% in value, compared to 2014. The residential sub-sector recorded a slight downturn by 4.6% and 10.5% in volume and value respectively. The commercial, industrial, agricultural and development land sub-sectors were also down by 10.6%, 13.0%, 7.5% and 2.4% respectively. Bleak household sentiments In line with the market softening and bleak household sentiments, the primary market reacted accordingly, as the number of new launches reduced to 70,273 units, down by 19.2% against 2014 (86,997 units). Most states, particularly major ones, saw substantial declines in their new launches. New launches in Johor and Penang saw declines of 42.8% to 9,428 units and 47.5% to 2,348 units respectively. The overall sales performance for the country hovered at 41.4% (29,089 units sold), lower than 45.4% (39,491 units sold) in 2014. The residential overhang situation took a downturn as more units were recorded. There were 11,316 overhung units worth RM5.9bil, up by 16.3% in volume and 56.0% in value. Holding 21.9% of the national overhang, Johor saw its overhang increased to 2,483 units. This increased by 8.5%, compared to 2014, due to higher unsold units in terrace and service apartment types. On a similar trend, the unsold units under construction recorded an increase of 28.6% to 68,760 units, due to the large number of unsold condominium and service apartment units. The fewer number of new launches partly helped contain the unsold units that were not constructed, down by 20.5% to 10,704 units. Construction activities were generally on a low tone with the exception of starts. Completions were down by 25.0% (80,850 units), whereas starts recorded a 10.3% increase over 2014, as higher numbers of service apartments in Johor Bahru (20,914 units) and Kuala Lumpur (13,197 units) commenced construction. On the contrary, new planned supply was on a four-year low at 139,189 units, down by 31.8%. As at end-2015, there were 4.93mil existing residential units with nearly 0.89mil in the incoming supply and 0.64mil in the planned supply. The Malaysian House Price Index sustained its moderating trend. As at Q4 2015, the Malaysian All House Price Index stood at 227.5 points (at base year 2020), up by 5.8% on annual basis. The annual rate of increase for Malaysian House Price Index has been on a decelerating trend since Q4 2013, resulting from the various cooling measures to contain the spiralling prices. On quarterly movements, the index points contracted by 0.8% against Q3 2015. Lacklustre commercial sub-sector There were 31,776 transactions worth RM26.4bil recorded, down by 10.6% in volume and 17.1% in value. Major states recorded lacklustre performance with Johor recording the highest decrease of 21.9%, followed by Kuala Lumpur at 15.0%, Selangor at 11.1% and Penang at 10.7%. In terms of transactions value, Penang had an increase of 19.0%, in spite of fallen market activity. Other major states succumbed to double-digit declines. Dwindling business confidence The shop sub-sector recorded 17,181 transactions worth RM13.31bil in 2015. This consisted 54.1% of commercial property transactions and 50.4% of the total value. Compared to 2014, market activity was reduced by 14.7% in volume and 11.2% in value. Penang and Selangor contributed higher market volume to the national total, each with 18.8% and 16.9% market share. Performance-wise, Johor recorded a drop of 29.3%, while Selangor saw a 10.0% fall. The shop overhang recorded 4,972 units worth RM2.25bil, up by 15.0% in volume and 50.1% in value. Similarly, the unsold (units) under construction and not constructed were also on uptrend, nearly double the amount to record at 12,882 units and 2,459 units respectively. Improvements in retail occupancy The retail sub-sector recorded a slight improvement from 81.8% in 2014 to 82.4% in 2015, with a take-up amounting to more than 780,000 sq m. Higher take-up spaces were observed in Selangor with more than 200,000 sq m, while Sarawak and Penang each secured more than 100,000 sq m. Apart from Kelantan which recorded negative take-up rates, all other states recorded positive results. Occupancy rates remained encouraging with nine states securing above 80.0% mark. Kuala Lumpur saw a slight decline from 89.8% to 87.4%. Selangor improved further from 84.7% to 87.7%. Johor sustained at 74.8% compared to 74.9% in 2014. Penang improved to 71.8% from 66.1% in 2014. Construction activity continued to see new entrants in the year. In terms of space, completions declined by 9.2% to record at 645,878 sq m. Starts increased by 68.7% to 621,165 sq m as five complexes in Johor with a combined space of more than 200,000 sq m commenced construction. As at end-2015, there were 13.83 mil sq m of existing retail space from 932 shopping complexes. There were another 64 complexes (1.51mil sq m) in incoming supply and 38 complexes (1.03mil sq m) in the planned supply. Selangor dominated the existing retail space while Kuala Lumpur dominated the incoming and planned supply. Moderate performance for office sub-sector The office sub-sector saw a slight downturn in the overall occupancy rate at 83.7%, down from 84.9% in 2014. Although the annual take-up rate was positive at 262,202 sq m in 2015, it was lower than 867,979 sq m that was recorded in the previous year. Occupancy rates for government buildings was at 98.7%, which helped to cushion the moderate performance of private office buildings at 78.5%. Private buildings supplied nearly 75.0% of existing space and 70.0% of occupied space nationally. State performance was commendable with 14 states having secured more than 80.0% occupancy. Perlis obtained full occupancy and eight other states obtained more than 90.0% occupancy. The state office sub-sector was mostly dominated by government office buildings. The new office supply was on an uptrend. There were 27 new completions offering a total space of 520,718 sq m, an increase of 17.3% against 2014 (443,792 sq m). There were 16 buildings commenced construction (481,642 sq m), more than double the space recorded in 2014 (183,395 sq m). Seven of these starts were in Kuala Lumpur. New planned supply, on the other hand, recorded eight buildings against 13 last year but did not run far in terms of space. Six of these newly approved building plans are in the capital city. As at end-2015, there were 20.13 million sq m of existing office space from 2,434 buildings. There were another 62 buildings (1.67 million sq m) in incoming supply and 17 buildings (0.41million sq m) in planned supply. Kuala Lumpur dominated all three supply categories. Tourist arrivals drop impacting leisure sub-sector In tandem with the drop in tourist arrivals for 2015, the average occupancy rates of hotels saw a slight decline from 62.6% in 2014 to 61.0% in 2015, as reported by Tourism Malaysia. The hotel sub-sector recorded 40 new completions (4,716 rooms), down by 29.5% when compared to 2014. Starts recorded an increase of 12.3% to 4,340 rooms, but new planned supply decreased by 30.2% (4,342 rooms). As at end-2015, there were 2,857 hotels across the country offering 208,747 rooms. Another 116 hotels (24,069 rooms) were in the incoming supply at a national level. Kuala Lumpur led other states with an incoming supply of 5,125 rooms. There were another 85 hotels (16,341 rooms) at the planned supply stage. Plateau in industrial property sub-sector The positive performance for the industrial property sub-sector that was recorded in the first half of 2015 did not sustain till year-end. The industrial sub-subsector recorded 7,046 transactions worth RM11.97bil, down by 13.0% in volume and 17.5% in value. Selangor continued to dominate the market, with 28.9% of the nation’s volume, followed by Johor and Perak, each with 16.1% and 9.6% market share respectively. The industrial overhang saw a slight increase to record 243 units worth RM240.57mil, up by 7.5% in volume and nearly triple the value of 2014.
The significant increase in value was contributed by cluster industrial properties, which accounted for 45.6% of the national overhang value and were solely in Johor. The unsold units under construction also observed similar trends, up by 29.7% to 1,731 units, whereas unsold units that were not constructed reduced to 87 units, down by 41.2%. Remaining firm in 2016 While the global and local economic and financial environment is expected to be challenging this year, the recalibration of the Malaysian annual budget 2016 is intended to ensure the country remains firm to brave such challenges. The residential sub-sector is expected to experience further softening in 2016, in view of various internal and external uncertainties foreseeable in the coming year. Issues on affordable housing and affordability of home purchasers will continue to top the national agenda. The measure that states that all new housing projects priced up to RM300,000 be limited to first-time homebuyers was recently announced in the budget recalibration. The outlook for the commercial sub-sector is expected to be equally or more challenging when compared to the residential sub-sector. The retail sector is likely to moderate as cautious sentiment on consumers’ spending is expected to continue due to increasing costs of living. However, the performance of hypermarkets looks more positive due to the nature of goods, such as necessities, being sold in these premises. The performance of the office market is expected to plateau. Downward pressure on rental may be felt by buildings, particularly those with tenants that are related to the oil and gas industry. At the same time, the ample office space supply should send some cautionary signals to the authority before approving new developments. The leisure sub-sector is expected to remain positive. The allocation of RM1.2bil to the Ministry of Tourism and Culture to implement programmes and events to achieve the targeted tourist arrivals at 30.5mil in 2016 may help support the sub-sector and industries such as hospitality. The industrial property sub-sector is expected to remain moderate for the year. The establishment of Principal Hub scheme, which offers multiple advantages to multi-national companies that uses Malaysia as a base for their regional and global business operations, will entail better prospects for the industrial sub-sector. The flexibility of the scheme that allows companies to decide on the locations of their preference is another plus point for the sub-sector. The agriculture sub-sector is expected to remain stable in the coming year. RM5.3bil allocated to the Ministry of Agriculture and Agro-based Industry for the proposed 2016 programmes is expected to support the sub-sector. Several infrastructure projects such as public transport networks are expected to help boost values in areas where the networks run. Such networks include the Ampang-Putra Heights, Kelana Jaya-Putra Heights and Bandar Utama to Johan Setia LRT Lines, Sg Buloh-Kajang and Sungai Buloh -Serdang-Putrajaya MRT Lines, Kuala Lumpur-Singapore High Speed Rail, and the Pan-Borneo Highway. Although the property sector may see moderation in market activity for 2016, the slowdown would still be manageable. The property sector will be able to endure this challenging period with adjustments and corrections expected from both the demand and supply side. >> Mak Kum Shi is the content and consumer engagement manager for the property business unit of Star Media Group. EPF’s investment income falls 36% in Q1, braces for tough year The Star KUALA LUMPUR: The Employees Provident Fund (EPF) recorded an investment income of RM6.78bil for its fiscal first quarter (Q1) ended March 31, 2016, a 36.21% decline year-on-year compared with RM10.63bil in Q1 2015. Chief executive officer Datuk Shahril Ridza Ridzuan said in a statement: “The investment climate in this quarter was significantly different from the first quarter last year which benefited from better returns from our global investment, particularly from developed equity markets, which compensated for the weak domestic equity market.
“The first quarter of this year had almost all global equity markets, including the FBM KLCI, recording declines leading to lower income contribution from our total equity portfolio. Accordingly, the contribution of global assets to total income decreased to about 22% compared with 47% last year due to lower capital and foreign exchange gains.” During the quarter under review, equities, which made up 41.43% of the EPF’s total investment asset, contributed RM2.55bil, representing 37.56% of the total income. The income generated was 59.98% lower compared to RM6.36bil recorded in the same corresponding period in 2015. While income deriving from dividend payouts has been stable and consistent with last year’s first quarter, the drop in share prices globally and domestically has led to fewer opportunities for the EPF to realise trading income during Q1 2016. “The lower returns from our equity investments was mitigated by the income from our fixed income and inflation assets which remained resilient and stable throughout the quarter. Our strategic asset allocation, which allocates more than half of our investment asset in fixed income, played its role in providing sustainable long term returns for our investment,” added Shahril. As at end March 2016, fixed income instruments represented 51.72% of the EPF’s total investment size emerged as the main contributor of income for Q1 2016. The asset class contributed a total of RM3.74bil of investment income or equivalent to 55.15% of the quarterly income. Malaysian Government Securities generated RM1.87bil in income during the quarter under review, up 9.80% or RM166.74mil, compared with RM1.70bil in Q1 2015. Meanwhile, loans and bonds recorded an investment income of RM1.87bil compared with RM2.03bil in Q1 2015. The EPF’s investment in money narket instruments, which currently stands at a healthy RM22.58bil, contributed RM110.25mil of income while real estate & infrastructure, which made up 3.54% of the total investment asset, yielded a total income of RM377.84mil in Q1 2016 following income received from rentals and income recognised by its associate companies. “We are bracing for a difficult year in global and domestic markets given the ongoing investment climate and poor corporate results. The uncertainties in the world economy, following prolonged slower growth in major economies and high volatility in the equity markets and commodity prices, are expected to remain throughout the year. It is critical for us to continue to be disciplined in our multi-asset class and diversified approach to meet our strategic objectives,” Shahril said. According to him, the current economic condition presents some opportunities for the country’s biggest retiremenht fund to rebalance portfolios and simultaneously increase exposure to inflation asset classes, including real estate and infrastructure, which potentially are able to provide stable and continuous stream of income. “Our real estate exposure is relatively small at this point of time at less than 4%, but it is the fastest growing part of our business. The goal is for inflation linked assets to reach about 10 per cent of the total fund size in five to seven years,” said Shahril. Contrary to focusing on short term returns, the EPF, as a retirement savings fund, has always been focusing on sustainable long term returns by targeting a 2% real dividend over a three-year rolling period, it said. This is in line with the EPF’s investment objective of not only preserving but also enhancing the value of members’ savings. Great news!!! We are please to share something great to you.
And we don't want you to miss out this good deals. This week we have two projects to propose, that it build just right up front of MRT 2 station. Where is the location? How much is it? Whats so good about it? Here's the link to both projects: (Just click on the location to explore) Jalan Ipoh Puchong South Be Excited... Be Very Excited About What You Going To See... Yes, we are talking on you securing your family interest. Why you don't do this simple action? This money is belong to you. For all EPF holder, please do fill in the benefitial column so your family wont loss out RM2,500. Dont lost out. 2,For the attention of EPF account holders – RM2,500 is yours No matter how old you are, no matter how long you have held your EPF account, no matter how much money you have in you EPF account, and no matter how long you have contributed to EPF, as per law, EPF will need to pay RM 2,500 to an EPF account holder’s family when he/she died (family members need to claim the RM 2,500 within 6 months). Very few people’s family did actually receive this RM 2,500 when his/her family member died because not many people know about this. So please bombard this info to all your families, relatives, collegues and friends, let them know about this info and remember to claim RM 2,500 when his/her family members demise. Info from KWSP official website: Death Benefit (Death Withdrawal) The Death Benefit is paid to the member’s dependant or next-of-kin, subject to consideration by the EPF, when the application for Death Withdrawal is made. The amount for Death Benefit is RM2,500.00. This benefit will be given once only, subject to the following conditions: Malaysian citizen; Member has not attained the age of 55 years at the time of death; Application for Death Withdrawal is made within 6 months of the date of demise of the member. – source: www.kwsp.gov.my Read more here Isn't it Amazing that Malaysia is at such high rank for infrastructure investment. And this results is from Arcadis, global design & consultancy firm. Lets hope that this will continue and develop our country towards success. The articles is refer from www.NST.com.my Malaysia ranks No 2 in Asia and No 5 globally for infrastructure investment BY RUPA DAMODARAN - 3 MAY 2016 KUALA LUMPUR: Malaysia ranks number two in terms of its attractiveness for infrastructure investment in Asia. It now sits in fifth place globally in the third edition of the Global Infrastructure Investment Index, according to Arcadis, a global design and consultancy firm. According to the report, Malaysia’s strong economic performance and continued long-term investment in infrastructure have made the market attractive for private/inward investment. The government’s 11th Malaysia Plan, published in May 2015, emphasised the importance of infrastructure in achieving Malaysia’s transformation into a fully developed nation by 2020. The plan sets out a continued focus on the strengthening of enabling infrastructure to boost productivity and support economic expansion. Major projects to be completed by 2020 include the Klang Valley MRT Line, the 2,000km Pan Borneo Highway and the West Coast Expressway. "Completed projects include 93,000km of new roads, increasing the road network by 68 per cent, while investment in urban rail saw a 32 per cent increase." It said, in the race to achieve the 2020 goals, a key challenge faced by Malaysia will be to ensure that the quality and sustainability of the new infrastructure are not compromised. Also, in the short term, investment is threatened by a number of risks, including its currency depreciation against the dollar and a corruption scandal that has delayed some projects. Neighbouring Singapore retained its position as the world’s most attractive market for infrastructure investment, with its stable political situation, secure business environment and strong growth potential. By comparison, in terms of economic scores, China ranks first among the 41 countries analysed, yet its less attractive business conditions and higher risk environment keep it ranked at number 17 in the index. Better Traffic? Better Property Value? Will the operating of Kelana Jaya LRT extension help out?5/4/2016 Good news to Subang Jaya residents. The Kelana Jaya Line LRT extension is going to operate on 30th June. Will this help to smooth the traffic congestion? Will this further increase the property value in this region? Whats your thought? Here's the news refer from The Rakyat Post. Kelana Jaya Line LRT extension to start operations on June 30 Come June 30, Subang Jaya residents can leave their vehicles at home and hop on the Kelana Jaya Line LRT extension to get to their destinations around the Klang Valley. Prasarana Malaysia Bhd group communications and strategic marketing executive vice president Lim Jin Aun said the Kelana Jaya Line extension project (LEP, from Lembah Subang until Putra Heights) will commence its operations by mid-year. “The test runs or testing of the trains for the Kelana Jaya LEP had started in February this year and is scheduled to be completed by mid-June. “The testing hours are from 9am until 7pm daily. From now onwards, the test runs will be conducted 24-hours daily until mid-June. We would like to thank the residents living along the track for their patience and understanding during this period.” Lim said the tracks from Lembah Subang until Putra Heights had been electrified to accommodate the testing of the trains. “Only two trains (one 2-car and one 4-car trains) are being used during the train testing period. These are the type of trains that will be used when the Kelana Jaya LEP opens for operations at the end of June. “A 2-car train can carry 472 passengers while a 4-car train can carry 922 passengers.” Lim said the rates and fares for the Kelana Jaya LEP had been approved by the Land Public Transport Commission (SPAD) and had been made public. The fares can be viewed at www.myrapid.com.my. “We have introduced ‘MyRapid Smart 7 Weekly’ and ‘MyRapid Smart 30 Monthly’ which offer discounts between 18% & and 35% from the new cash fares for regular commuters. “With the various concession cards that we have, senior citizens, people with disabilities and students will enjoy 50% discount from the cash fares. You can find out more about how to apply via our website.” Currently, eight LRT stations under the Ampang/Sri Petaling Line extension project are already in operation. These stations are Awan Besar, Muhibbah, Alam Sutera, Kinrara BK5, IOI Puchong Jaya, Pusat Bandar Puchong, Taman Perindustrian Puchong and Bandar Puteri. I couldn't be more agree with the Ms Tan Ai Leng article in TheEdgeProperty.com. During the era of DIBS, there are many follower who are not ready for property investment joining in to this investment game. Some of them is hit by the current economy situation. Some trading business owner is hit by the weak Malaysia currency. Summary is there are many people would like to cash in during the tough time. Play safe better right? There are also owner who are desperate to sell their properties as they need the cash. In the other end, there is another batch of opportunist which look into this opportunity to enter the market by buying low from these desperate sellers. Here's what Ms Tan Ai Leng written about this situation. Investment opportunities abound as DIBS property owners seek exit By Tan Ai Leng / TheEdgeProperty.com | April 30, 2016 11:58 AM MYT KUALA LUMPUR (April 30): Investors should keep an eye on the market as buyers of properties under the Developer Interest Bearing Scheme (DIBS) seek to unload their properties this year, said JLL Property Services (Malaysia) Sdn Bhd country head and managing director YY Lau (pictured).
DIBS, where developers absorb the mortgage interest during construction, was halted by the government in 2014 over concerns that it encouraged speculation and pushed up property prices. “The impact of DIBS will be fully felt this year, and there will be a lot of choices for investors who are looking for opportunities,” she shared her view on “Market outlook: Where are we at the curve?” at The Edge Investment Forum on Real Estate 2016 (REIF 2016) today. Although investors are keen in buying properties but most of them are still reluctant to make any decision due to economic uncertainties. However, Lau pointed out that the current market condition is not as bad as most people imagine. “The economy is fundamentally sound and there will be no recession in the near term. We concur that the Malaysian economy will continue to grow but at a slower pace of 4% to 4.5% in 2016 as opposed to 5% in 2015,” she explained. She said the impact of the economic slowdown and the drop in transactions are already reflected in current property prices. For instance, prices of distressed assets or older high-end properties which are not well maintained saw their prices dip as much as 20% to 22% last year. Although property price growth has slowed down, Lau said the market is unlikely to see prices dropping as severely as they did during the Asian Financial Crisis (AFC) in 1998, where average property values plunged by a whopping 47.6%. She noted that the weakening ringgit has opened a window of opportunity to foreign investors especially for Singaporeans, but the weakening ringgit condition will not continue for long and investors should decide quickly if there are any good deals. Meanwhile, according to JLL’s data, Malaysia’s property market transaction volume fell by 8% in 2015. Lau expects the volume to continue to decrease this year due to dampened market sentiment, political uncertainties and a higher loan rejection rate. “The loan approval rate was about 50% in 2015, this means five out of 10 applicants for housing loans were rejected. The higher loan rejection rate has also prevented buyers from entering the market,” she added. She said although it is difficult to secure a loan but there are things prospective buyers can do to increase their chances of getting loans approved – such as managing their finances, reducing debts and having a joint income with others. Have you apply for MyDeposit yet? Don't loss out and miss this chances. Go apply for MyDeposit and enjoy the perks now! Action now, don't complain later that you can't afford any home. This is a great chance to own a home. I do advised my buyer to get their first home using this advantage. Bear in mind, this is solely for own stay. Not short term investment purpose as there is a catch on the lock in period from selling your unit. Here's the update on MyDeposit MyDeposit scheme attracts 1,046 successful applicants National Housing Department Director-General Mohamad Yusoff Ghazali announced that they have received 1,046 completed applications for the First House Deposit Financing (MyDeposit) scheme since it was opened on 6 April. But after the application deadline on 30 June, as much as 7,000 people are expected to take advantage of the programme, which will help people buy a home by providing a subsidy of up to RM30,000 or 10 percent of the property’s price. Most of the applicants so far are from Selangor, said Yusoff. The second most numerous are from Putrajaya, followed by Johor and Penang. “We give the public until the end of June and the incentive is given to those qualified, based on first come, first served basis,” he told reporters. But if there is strong demand for the MyDeposit scheme, the agency would urge the federal government to raise the allocation so more people can apply. Funded by a RM200 million allocation from Putrajaya, the scheme is open to first-time home buyers seeking to purchase a property with a maximum price of RM500,000, on the condition that the house must not be sold or rented out for 10 years. It is open Malaysians aged 21 and above whose families have a gross monthly income of RM3,000 to RM10,000. Those interested to apply, may submit their applications at http://ehome.kpkt.gov.my/ “The deposit is paid by the government directly to the developers for new projects or lawyers for the purchase of secondary houses and need not be repaid by the buyers.” “We expect it will take a month to process every application and the offer letter to the buyer will be given as early as the end of this month,” added Yusoff. Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story It's really good to hear that the line extension project (LEP) for the Kelana Jaya Line is going to operating very soon. It's been something that we waiting for a while. This will benefit not only the residence nearby but also boost for property value nearby. It's bring goods in overall. Kelana Jaya LRT extension to be ready by June
The line extension project (LEP) for the Kelana Jaya Line is poised to open as scheduled on 30 June, according to Prasarana. Datuk Zohari Sulaiman, CEO of Prasarana rail and Infrastruture Projects Sdn Bhd (PRAISE), revealed that the extension of the Light Rail Transit (LRT) is nearly complete and they are mostly doing testing, touch-up and cleaning works. “We have carried out the Emergency Response Plan (ERP) exercise as part of requirement set up by the governing authority for public transport, Land Public Transport Commission (SPAD).” The ERP, which was held at the Subang Alam station, aims to check the readiness of the facilities and system, as well as test the preparedness of the operations team Spanning 17.4 kilometres, the LEP began from the Kelana Jaya station and covered twelve new stations, including those in Ara Damansara, Subang Jaya and USJ before finishing at Putra Heights. Aside from the aforementioned stations, the development also involved the stations in Lembah Subang, Ara Damansara, Glenmarie, Subang Jaya, SS 15, SS 18, USJ 7, Taipan, Wawasan, USJ 21 and Alam Megah. To further improve connectivity, the extended line was also linked with the Bus Rapid Transit-Sunway Line at USJ 7 station and the KTM Komuter network at the Subang Jaya station. With this longer network, the Kelana Jaya Line will have an overall length of 46.4 kilometres, snaking through the high-populated areas of Bangsar, Taman Melati, Setiawangsa, Petaling Jaya and Kuala Lumpur’s central business district (CBD). Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. In a bid to diversify its assets, the Employees Provident Fund (EPF) plans to increase its property investments by two-fold over the next few years, reported Bloomberg.
According to its CEO Shahril Ridza Ridzuan, the fund is currently planning to acquire more real estate in continental Europe to add to its existing overseas properties, including the Battersea Power Station project and 11-12 St James Square in London. “Our real estate exposure is very small, less than four percent, at this point in time,” he said. “It’s the fastest growing part of our business. The goal is for private market assets to take about 10 percent of the total fund size in five to seven years.” With this uptick in foreign property acquisitions, the EPF joins other sovereign wealth funds with a similar strategy. The world’s largest wealth fund Oslo-based Norges Bank Investment Management plans to spend S$8 billion annually to acquire such assets, while Singapore’s GIC has set its sights on real estate in gateway cities and major markets. On average, the EPF’s investments in offshore properties and infrastructure projects have surged by over 50 percent per year, revealed its 2014 annual report. Notably, it has been purchasing real estate since 2009 to protect its money against inflation. As for the rest of its portfolio, 42 percent of its investments consists of equities as of December 2014, while fixed income instruments account for 51 percent. The EPF oversees the retirement savings of over 13 million Malaysians. Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. Written By Lianna Brinded Refer from Businessinsider.my The 17 countries with the highest level of government debt All eyes are back on Greece in April as the country tries to unlock more funds from international creditors to help mend its battered economy. But despite racking up huge amounts of government debt — Greece is not the most indebted country in the world. The World Economic Forum’s Global Competitiveness Survey looks at the financial health and risks of countries around the world. One of the most interesting and important rankings is actually the level of government debt. By looking at level of gross government debt as a percentage of GDP, it can indicate how able a country is to pay back debts without incurring further debt. Basically the lower the debt-to-GDP ratio the better. Take a look to see who made the top 17 and who beat Greece for the top spot 17. Iceland – 90.2%. Prior to the credit crisis in 2007, government debt was a modest 27% of GDP. Eight years on and the country is still dealing with the collapse of the banking system. 16. Barbados – 92.0%. The tax haven nation is the wealthiest and most developed country in the Eastern Caribbean but its growth prospects look weak due to austerity measures to combat the effects of the credit crisis eight years ago. 15. France – 93.9%. The eurozone’s second-biggest economy has been recovering “in fits and starts,” says country’s statistical agency. But this month it put out some good news — PMI services came in better than expected and retail sales are rising. 14. Spain – 93.9%. S&P is confident that Spain’s buoyant growth prospects and labour market reforms will boost its outlook. In the second quarter, Spain’s economy grew 3.1% year-on-year. 13. Cape Verde – 95.0%. The island nation is a service-orientated economy and suffers from a poor natural resource base. This means it has to import 82% of its food, leading to vulnerability to market fluctuations. 12. Belgium – 99.8%. The country is known as “the sick man of Europe” as although the government managed to reduce the budget deficit from a peak of 6% of GDP in 2009 to 3.2% — its debt is still incredibly high. 11. Singapore – 103.8%. It’s one of the wealthiest countries in the world but the island nation suffers from high debt. The government is now trying to find new ways to grow the economy and raise productivity. 10. United States – 104.5%. The US is on the cusp of raising interest rates for the first time in seven years. However, some analysts warn that this could trigger another financial crisis due to the hike in repayments people will face in paying back debt. 9. Bhutan – 110.7%. The small Asian economy is closely linked to India and depends heavily on it for financial assistance and foreign labourers for infrastructure. 8. Cyprus – 112.0%. The country’s excessive exposure to Greece hit it hard when the European sovereign debt crisis rippled across the world in 2010. Like Greece, it had to be bailed out by international creditors and enforce capital controls and austerity measures to get funding. 7. Ireland – 122.8%. The country exited its bailout programme two years’ ago but still faces a huge debt pile. But it’s on the right track. Ireland has already had success in refinancing a large amount of banking-related debt. 6. Portugal – 128.8%. Portugal exited its own bailout programme in the middle of 2014. However, GDP was still 7.8% lower than it was at the end of 2007. 5. Italy – 132.5%. The country’s proportion of debt to GDP is the second highest in the Eurozone. It spiked earlier this year because the Treasury increased its available liquidity. 4. Jamaica – 138.9%. The services industry accounts for 80% of GDP but high crime, corruption, and large-scale unemployment drag the country’s growth down. The International Monetary Fund said Jamaica has to reform its tax system amongst other things. 3. Lebanon – 139.7%. The country used to be a tourist destination but war against Syria and domestic political turmoil has led to a lack of an official budget for months. 2. Greece – 173.8%. The country has taken over €320 billion worth of bailout cash and it’s looking increasingly impossible to pay it all back – especially since it has had to implement painful austerity measures to get its loans. But it’s surprisingly not the worse country in the world for government debt. 1. Japan – 243.2%. The country is in a troubling spot. Its economy is growing very slowly and now the central bank has implemented negative interest rates. MPIG comment: It's a real surprise that Greece is not on the first spot where a traditional strong country like Japan taking the first spot. Anyone of you have guess on this? We know Japan is not having a good time lately but we don't expect them on the first spot. And to be relieve, Malaysia is not among the top 17. Thought we don't know about how transparency and how accuracy the data is. A country debt is closely relate to jobs, economy, happiness of the population, growth etc... So you can expect those in the list is having not a good time at the moment. Written by Jonathan de Ho MyDeposit is officially launch by Prime Minister Datuk Seri Najib Tun Razak on 7th April 2016. It is announced during Budget 2016, the scheme is aimed to help the lower income group with a household income of RM10,000 and below. The scheme, said a contribution of 10% from the sale price or maximum of RM30,000 (whichever is lower), will be given to first-time buyers looking for homes priced below RM500,000. First, the main issue now is high property price and many of the young Malaysian not afford to own a house. This you also can translate to many of them not able to get loan approval and root of the cause is the household income and commitment. The loan reject cases is higher than ever, many buyer cant get mortgage loan approve as Bank also become more cautious and thee regulation is more strict than ever. Why? Why would bank do that? Its because they too also feel its risky to approved mortgage loan to the lower income group or high commitment group. So the root of the cause is low income. Instead of giving some gimmicks (yes it will help some but not majority) in MyDeposit with contribution up to RM30,000 or 10% of sales price, it should focus on increase Malaysian economy and income. As nowadays a lot of new project launching come with No Money Down package or high rebates which you don't need to pay much up front. Another way of solution is increase awareness and more proper education on lifestyle changes and money management. Some family with RM10,000 still also cannot own a house as their expenses and commitment is also high as well. Perhaps government should focus on getting Malaysia economy back on track and also lesser intake of foreigner worker. Large intake of foreigner worker not only reduce the job opportunity but it also directly increase Malaysia social problems such as criminals. Back to topic, Malaysian education also should educate more on money management and living a modest lifestyles. MyDeposit from my opinion only help solve small portion of issue but not really treating the root of cause. Even if Bank Negara loosen the mortgage loan approval regulation also not really solving the issue. Property price is already at that so call "High" level, but if compare among the region we are still among the cheaper property price per square feet nation. So you can expect property price wont really going to reduce much even the market now is soft. Main solution is how to make Malaysia a high income country, how to educate majority to become high income group. That's all for my sharing today. Here's today news in The Star Online on MyDeposit: Najib launches MyDeposit Refer from The Star Online, 7th April 2016 KUALA LUMPUR: The First Home Deposit Funding Scheme (MyDeposit) has been launched. Announced during Budget 2016 last October, the scheme is aimed at helping the lower income group with a household income of RM10,000 and below. Prime Minister Datuk Seri Najib Tun Razak, who launched the scheme yesterday, said a contribution of 10% from the sale price, or maximum of RM30,000 (whichever is lower), will be given to first-time buyers looking for homes priced below RM500,000. He said they could apply for the scheme online starting today through the National Housing Department website. He also said his announcement under the Budget Recalibration 2016 that houses priced up to RM300,000 will be reserved for first-time buyers will take off this month. Najib was speaking to reporters after chairing the National Housing Council meeting at Parliament building yesterday. Also present was Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan. It’s a deal: PR1MA chief executive officer Datuk Abdul Mutalib Alias (left) exchanging documents with Tenaga Nasional Berhad (TNB) chief corporate officer Datuk Wira Roslan Ab Rahman during a memorandum exchange ceremony between PR1MA and TNB. Looking on from left are TNB chairman Tan Sri Leo Moggie, Najib and Abdul Rahman. The meeting was also informed that as of Dec 31 last year, 17% or 183,755 units have been completed out of the one million affordable homes under the project set to be achieved by 2018. Nineteen percent (214,011 units) were being built while 28% or 309,571 units were in various planning stages. Najib also witnessed the signing of an agreement between Tenaga Nasional Bhd (TNB) and Perbadanan PR1MA Malaysia (PR1MA) to develop a plot of land in Kajang owned by TNB. The project, mooted by the late PR1MA chairman Tan Sri Jamaluddin Jarjis, will see PR1MA working with a private developer. Two blocks consisting of 786 units, have been planned with 50% allocated for TNB employees and the other 50% for those eligible. The project is expected to be completed by the end of 2019. Sunway offers own loans up to 88% and deferred payment plan for homebuyers Refer from www.ptlm.com.my Property heavyweight Sunway Bhd has introduced special offerings under its Sunway Property Certainty Campaign today, which includes up to 88% financial assistance to home buyers under a unique ownership campaign as the developer seeks to boost sales. The campaign – which will offer (1) guaranteed loan, (2) deferred payment plan and a (3) voluntary exit plan – covers all Sunway projects in Malaysia from today until 31 September. "We are still seeing demand for good and well-located properties in the market. People are looking to upgrade, invest and own a home in a well-planned environment,” said Sunway Malaysia and Singapore property development division managing director Sarena Cheah. “However, with the uncertain times now, the timing of people's commitment in properties is something of great concern," she added. Stricter lending imposed by banks meant some buyers were unable to obtain the financing needed to complete their home purchases. According to Sunway Integrated Properties Sdn Bhd marketing and sales general manager Gerard Yuen, the guaranteed loan scheme is a 12:88 plan, with Sunway providing financing of up to 88% of the property price from its internal funds. Under the newly-introduced scheme, buyers are given the options to apply loan with commercial banks or with Sunway. The guaranteed loan by Sunway is offered on a first-come, first-served basis for Sunway’s launched and on-sale projects. It will have a fixed interest rate based on a commercial basis and subject to certain criteria. He said to qualify for the loans, applicants must be above 18 years old and not bankrupt, among other things. The loans are available to both Malaysians and foreigners. "For homebuyers who meet the basic criteria, we are happy to assist them by providing a certainty package, enabling them to own their dream home with a greater sense of comfort," said Yuen. "We are not trying to play the bank’s role, we just want to assist those who want to buy a Sunway unit but are having temporary financial difficulties," he stressed. Meanwhile, the deferred payment scheme offers zero payment for a period of 12 or 24 months following an inital downpayment of 3% or 6%. The voluntary exit plan allows buyers to withdraw or terminate from the sale and purchase agreement owing to unforeseen circumstances such as loss of employment. At the press conference, the Group also unveiled the third and final phase of the Sunway Geo Series in Sunway South Quay, where it has received an average of more than 95% take-up rates for its previous launches. Sunway is alo gearing up for more central region launches during the early half of the year with two brand new developments in Mont Kiara and Bangi. It is part of the Group’s plan to launch properties with a gross development value (GDV) of RM1.6 billion in the Klang Valley (central region), Iskandar Malaysia (southern region), Ipoh and Penang (northern region). The developer also has a presence in Singapore and China. Currently, Sunway has landbank of 3,304 acres, with a total GDV of RM47.7 billion and a development period up to 15 years. For this year, she said 70% of the launches will be focused in Klang Valley, totalling RM1 billion. It will launch Sunway Geo Residences 3 – which has a gross development value (GDV) of RM535 million – next month, and plans to launch Sunway Brook Residences (RM200 million GDV) in Mont’Kiara, a block of office suites at Sunway Velocity (RM200 million GDV) and 259 units of serviced apartments in Sunway Gandaria (RM200 million GDV) in Bangi. For the southern region, Sunway plans to launch RM400 million of mixed development in Iskandar Malaysia, Johor while in Ipoh, the group aims to launch Lost World Residences, comprising 262 units of serviced apartments with a total GDV of RM100 million. In Penang, the developer would be launching 48 units of two-storey semi-detached homes in Sunway Cassia, Batu Maung Phase 3 worth RM100 million. Sitting on a 6.64-acre freehold land within Sunway South Quay, the Sunway Geo Residences 3 is a 44-storey condominium project housing 420 units. It has built-ups ranging from 988 sq ft to 1,772 sq ft. It is slated to be completed by October 2019. Indicative selling price start from RM850,000. Sunway South Quay is a 178-acre international neighbourhood within the flagship Sunway Integrated Resort City, comprising a variety of residential and commercial developments. Facilities of Sunway Geo Residences 3 include a seamless infinity pool, kid's pool, rock jacuzzis, one-acre park and an award-winning landscape. The project will be directly linked to Sunway Geo Retail, with 200 outlets, and Sunway Geo Offices, with 600 offices, as well as to the bus rapid transit (BRT) SunMed station, and is just three stops away from the new Kelana Jaya LRT extension and Sunway-Setia Jaya KTM Station. It also has amenities nearby, such as an international school, two universities, a large regional shopping mall and a medical centre. As at today, the first two phases of Sunway Geo Residences have already achieved about 95% sales. Sunway Geo development recently won Excellence in 'The Just-Walk Award' under the best integrated development category at the inaugural StarProperty.my Awards 2016. The greater Sunway Resort City also won Excellence in 'The Five Elements Award' under the best township development category. Meanwhile, Sunway Brook Residences in the upclass surburb of Mont Kiara offers 288 units of luxury condominiums suitable for working professionals and upgraders. The Sunway Gandaria Residences in the heart of Pusat Bandar Baru Bangi offers 259 units of serviced apartments housed in a 38-storey tower and integrated with Sunway Gandaria Retail, consisting of 34 units of retail shops below. It will become the tallest landmark in Bangi. It was reported that Sunway Gandaria Retail has been fully taken up since its preview in mid-December last year. The residences which will offer sizes of 949 sq ft to 1,405 sq ft with an indicative selling price starting from RM500,000. It will have a number of facilities including a 50m lap pool, a gym overlooking the pool, and round-the-clock three-tier security. There is also a range of amenities nearby such as schools and universities, financial institutions, shopping malls, and overlooking the Cempaka Lake Gardens and the Bangi Golf Course. The development can be accessed via eight major highways and it is also expected to benefit from its proximity to the MRT Line 1 Kajang station, which is scheduled to be operational by 2017, the proposed MRT Line 2 Putrajaya Sentral station and the future Putrajaya-Kajang BRT line. In 2017, Sunway plans to launch the Phase 1 of its recently acquired 17-acre land in Kelana Jaya. Preliminary information shows that Phase 1 will consist of two blocks of 45- and 46-storey serviced apartments consisting of 442 units and 452 units respectively. The Group has plans for an integrated mixed development in the yet-to-be-named project comprising seven residential blocks and a commercial podium with a GDV of RM1.8 billion. - See more at: Link: http://www.ptlm.com.my/index.php/component/k2/11-insider/sunway-offers-own-loans-up-to-88-and-deferred-payment-plan-for-homebuyers More LRT Station is opening... Another four LRT stations in Puchong to open next week BY MENG YEW CHOONG Refer from http://www.thestar.com.my/metro/community/2016/03/24/puchonglrt/ Four more stations of the Ampang LRT line - IOI Puchong Jaya, Pusat Bandar Puchong, Taman Perindustrian Puchong, and Bandar Puteri - will open for service by next Thursday (March 31). The announcement was made during a presentation by the Malaysian delegation at the two-day Asia Pacific Rail 2016 conference that ended on Wednesday in Hong Kong. The delegation was led by Prasarana Malaysia Bhd’s president and group CEO Datuk Azmi Aziz, who came with Rapid Rail Sdn Bhds CEO, Ahmad Nizam Mohamed Amin. With 33 stations operational next week, the Ampang line promises to bring much relief to those living and working in Puchong, especially the Bandar Puchong Jaya area. Three of the four stations mentioned above are located parallel to Lebuhraya Damansara-Puchong (LDP), which is constantly congested at the Puchong stretch. However, some commuters feel let down that the opening of the final three stations - Puchong Perdana, Puchong Prima, and Putra Heights - are delayed. "Of course, I am disappointed. But then, I suppose that having four stations open next week is still better than not having anything at all," said Gloria Ngu, 21, a student who lives at Putra Heights. Puchong Perdana and Puchong Prima are the stations that will complete the LRT loop at Putra Heights via the Putra Heights interchange station. The Putra Heights interchange will seamlessly link the Ampang line with the Kelana Jaya line. According to sources familiar with the matter, the opening of the last three stations of Ampang line will most probably happen by June. June also happens to be the timeline for the 14 LRT stations of the Kelana Jaya to open for service. The opening of these 14 stations will mark the completion of the sorely-needed LRT extension programme first announced in 2006. Azmi, who fielded questions on customer management issues at the conference, reaffirmed the role of both social and mainstream media in managing expectations of an increasingly demanding customer base. "We recognise that it is important to communicate clearly and quickly in order to get our message across. In this regard, all forms of media have their place," he said. Asia Pacific Rail is an influential annual meeting or rail professionals that attracts over 1,000 attendees from across the globe each year. In Oct last year, four stations – Awan Besar, Kampung Muhibbah, Alam Sutera and Bandar Kinrara 5 (BK5) began operations. The Ampang Line Extension starts from Sri Petaling Station, passes through Kinrara and ends at Putra Heights in Puchong. The extension is 18.1km long with 12 stations. Combined with the existing line, the total length of Ampang Line after the completion of LEP will be 45.1km. |
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