Hunza plans RM3.5b mixed development project in Bayan Baru, Penang

March 14, 2013 By Leave a Comment

GEORGE TOWN: Hunza Properties Bhd plans to undertake a RM3.5bil mixed development scheme in Bayan Baru, the south-west district of the island, two years from now.

Group executive chairman Datuk Khor Teng Tong said the project on a 40-acre site would comprise a shopping mall, a hospital, an indoor amusement park and a college.

An auditorium with a seating capacity of 3,000 to 5,000 people and an automobile mall that featuring branded cars are also in the pipeline.

“About 55% of the scheme will comprise commercial properties managed by us.

“We are now working with consultants from Singapore on the concept,” he said.

Khor added that the group would develop 700 low-cost units for the squatters who would be relocated.

On the group’s projects in the pipeline, Khor said there were now about RM800mil worth of projects.

These projects would be undertaken from this year till 2016.

The projects include the RM350mil Alila II, RM250mil high-rise condominium scheme in Segambut and a RM204mil landed terraced property project in Bandar Putra Bertam, Kepala Batas.

On its Gurney Paragon office tower block in Gurney Drive/Kelawei Road, Khor said about 70% of the building with a total floor area of 100,000sq ft had been leased out.

“Each floor has a 10,000 sq ft of floor area.

“The Hunza corporate office occupies the first top two floors, while the rest is for leasing.

“We are renting out per sq ft for around RM3.20 to RM3.50.

“When fully occupied, we expect to generate from rental about RM3mil per annum,” he said.

On the RM500mil Gurney Paragon shopping mall scheduled for opening in July, Khor said he expected the mall to generate a yearly return of 10% to 12% of the mall’s total cost.

“We have leased out around 75% to 80% of the mall, which has a total lettable area of 700,000sq ft.

“There would be at least 270 to 280 retail outlets for the mall,” Khor added.

Hunza expects to generate returns on the investment for its Gurney Paragon shopping mall in eight to 10 years.

“All the retail outlets should be fully operational in the second year after the opening,” he said.

 

Source by: The Star

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Bank Negara: Some gold investments are just Ponzi schemes

September 6, 2012 By Leave a Comment

PETALING JAYA: Bank Negara Malaysia has cautioned the public against investment schemes especially in precious metals such as gold.

It warned that they could lose their money if they invest in illegal and fraudulent get-rich-quick schemes, also known as Ponzi schemes.

“The investment money collected is used to pay out as high returns to other investors. Such schemes are illegal and fraudulent,” it said in a statement yesterday.

Bank Negara said this in response to conflicting media reports on the Financial Consumer Alert List uploaded on its website.

The list was provided as a quick reference and guide for the public against various financial services offered by non-licensees.

It shows individuals and companies involved in unregulated activities, and had no licence or permit from relevant regulatory bodies such as the Securities Commission of Malaysia, Domestic Trade, Co-operatives and Consumerism Ministry and Companies Commission of Malaysia.

Bank Negara said the list was not exhaustive and would be updated regularly.

The central bank advised the public to check with the relevant authorities when dealing with companies offering seemingly attractive business opportunities or financial services, with no licence issued by the relevant authorities.

“We also like to advise the public that they are free to undertake outright buying and selling of gold.

“However, they should be cautious of various illegal deposit-taking and investment schemes, especially in precious metals such as gold that entice them with high returns.

“These schemes promise high returns over a short period of time with the option to buy back the gold,” it said.

For details, contact BNMtelelink at 1-300-88-5465, or refer to the Financial Consumer Alert List on www.bnm.gov.my.

 

Source : The Star

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Battersea project set to take off April next year

September 6, 2012 By Leave a Comment

SP Setia president is optimistic that the Battersea redevelopment would fetch good sales given that it is located in Chelsea, which is relatively London’s most expensive area.

Redevelopment of the iconic Battersea Power Station (BPS) here by a Malaysian consortium is expected to begin in April, after a soft launch in January.

The consortium comprising Sime Darby Bhd, SP Setia Bhd and Employees Provident Fund (EPF), on Tuesday took ownership of the 15.78ha site after paying STG400 million (RM1.98 billion) to BPS liquidators.

About STG300 million (RM1.48 billion) of the payment came from a bridging loan by CIMB Bank, while the remaining was from the stakeholders’ own cash based on their respective equities in the new joint venture called Battersea Project Holding Co Ltd (BPHCL), senior Sime Darby and SP Setia executives said.

Sime Darby and SP Setia each own a 40 per cent stake in BPHCL, while the balance is held by EPF.

“As of 10.25am today, we are the owner of this old power station. We have worked so hard on (getting) the site,” SP Setia president and executive officer Tan Sri Liew Kee Sin told Malaysian reporters here.

There were several failed attempts to redevelop the site by previous owners but Liew is confident that the consortium will not fail like others before it. For one, the consortium’s scheme comes with good public amenities and transport solutions.

“None of the schemes before this had a solid public transport solution. That is why we firmly believe the project can become a reality,” he said.

Liew is optimistic that the Battersea redevelopment would fetch good sales given that it is located in Chelsea, which is relatively London’s most expensive area.

He cited that the recently-completed Chelsea Wharfbridge project nearby had fetched sales of STG1,000 (RM4,940) per sq ft (psf) for its apartments, while certain developed areas in Chelsea can fetch as high as STG2,000-STG3,500 (RM9,880 to RM17,290) psf.

Battersea Power Station, with its four iconic 350-foot (105-metre) chimneys, has been dormant since 1983, and the consortium expects the project to have a gross development value (GDV) of STG8 billion (RM39.5 billion) over its planned 15-year redevelopment.

Sime Darby chief operating officer Datuk Abdul Wahab Maskan suggested that the consortium had paid reasonably cheap for the site given that the STG400 million (RM1.98 billion) price tag is equivalent to just five per cent of the project’s expected GDV.

“This is low compared to the land cost in other cities. In Kuala Lumpur for example, the land cost accounts for about 25 per cent of the GDV,” Abdul Wahab said.

The Battersea site was placed into administration with Ernst & Young last year after Lloyds Banking Group and Ireland’s National Asset Management Agency called in debt against the struggling Irish developer, Real Estate Opportunities, which controlled the asset.

The Grade II listed former power station is situated on the south bank of the River Thames and is within the larger 119-hectare Nine Elms corridor regeneration, BPHCL officials said.

The BPS is arguably the last significant piece of prime central London land remaining for redevelopment, BPHCL chief executive officer Robert Tincknell said.

The Wandsworth Council had granted the planning consent (equivalent to development order in Malaysia) for a masterplan for the power station redevelopment in December 2010, Tincknell noted.

The approved scheme comprises 3,500 private and affordable homes, 160,000 square metres of new office space, 56,000 sq m of retail space and nine hectares of public realm.

The plan includes a sustainable mixed development comprising residential and commercial units while the power plant with its chimneys will be conserved and preserved, Liew said. There will also be a hotel and two new London underground stations, which would extend from the Northern Line.

Source : Business Times

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Exclusive Private Sales Preview for Rafflesia @ Damansara Perdana

September 5, 2012 By Leave a Comment

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House price hike likely

September 3, 2012 By Leave a Comment

GEORGE TOWN: The selling price of properties in Penang will soon surge by 5%-10% following the recent move by Lafarge Malayan Cement to raise cement prices by about 6%, according to housing developers here.

Following Lafarge’s announcement, a 50kg bag of cement is now priced at RM17.50, compared to RM16.50 before the hike.

Penang Master Builders & Building Materials Dealers Association president Lim Kai Seng said 60% to 80% of the materials used for a building comprised cement and cement-related materials.

“This is why an increase in cement price will have a significant impact on property prices.

“The other cement manufacturers in the country have sent signals that they will raise prices very soon,” Lim said.

There are six cement producers in Malaysia, namely YTL Cement Bhd, Tasek Corp Bhd, Cement Industries of Malaysia Bhd, Lafarge, CMS Cement Sdn Bhd, and Holcim (M) Sdn Bhd.

Only Sarawak-based CMS Cement has confirmed it would keep prices at the current level.

Lim said the price of other essential building materials such as sand and aggregate had also increased.

“The price of sand is now between RM40 and RM43 per cu yard, depending on the grade, compared to RM38-RM40 earlier this year.

“The price of aggregates is now at RM21 per tonne, compared to RM20 per tonne earlier this year,” he said.

House prices on the island are expected to rise by 10%, while in Seberang Prai, housing prices are expected rise by 5%, following the hike in cement price.

Kuala Lumpur-based developers such as Mah Sing Group Bhd and SP Setia Bhd with projects in Penang will continue to absorb the cost of the cement price increase.

Ideal Property Development Sdn Bhd managing director Datuk Alex Ooi said the company was now revising the selling prices of its new projects upwards, due to the hike in cement price.

“There will be at least a 10% hike in the selling price of properties on the island.

“A hike in cement price means the price of all cement-related products such as concrete and bricks will rise. Construction cost will go up by between 15% and 20%.

“We expect the rest of the cement manufacturers in the country to adjust the price of cement upwards in the next one to two months,” he said.

In addition to the rise in cement prices, the cost of labour and transportation charges have also increased this year.

Tambun Indah Land Bhd managing director K.S. Teh said the cost of labour had increased to RM45 per day this year, compared to RM35 a year ago.

Transportation charges for sand have increased to RM450 per truck load this year from RM400 a year ago.

“There is also a labour shortage, as many Indonesian workers have gone back to Indonesia, which is booming currently.

“The selling price of properties will be impacted by the hike in raw materials and labour costs.

“However, Tambun Indah will absorb the increase in the price of raw materials until year-end.

“We will revise our pricing next year,” he added.

Teh said the selling price of properties on the island would increase more because of the additional transportation charges to ferry the raw materials to the island.

“This is why the increase in property prices on the island will be around 10%, compared to about 5% in Seberang Prai,” he said.

Tambun Indah will be launching next month the Straits Garden@Jelutong on the island, the Pearl Residence@Pearl City and Pearl Indah@Pearl City projects in Simpang Ampat.

The Straits Garden is a high-rise project comprising 183 condominiums priced from RM688,000 onwards, while the Pearl Residence@Pearl City and Pearl Indah@Pearl City schemes comprise landed properties priced between RM353,000 and RM508,000.

Mah Sing managing director and chief executive Tan Sri Leong Hoy Kum said the cement price hike would have less than a 1% impact on construction cost.

“Most of our projects have been tendered out and the construction costs are already locked in,” he added.

SP Setia property (north) general manager Khoo Teck Chong said the group would absorb this impact for now to be competitive.

”If other raw material prices such as bricks, rebar and tiles were to increase drastically, we may then have to review and adjust our property selling price accordingly,” Khoo added.

Meanwhile, the Malaysian Competition Commission (MyCC) chief executive officer Shila Dorai Raj had said the price hike by cement manufacturers did not at this juncture warrant a formal investigation.

“Price increases are by themselves not anti-competitive in nature. However, if there is evidence of collusion among the competitors to increase prices, this would be of concern to MyCC and may merit an investigation,” she said.

 

Source : Star Property

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Buying your first home is a big step and can be exciting

September 3, 2012 By Leave a Comment

Let’s say one morning you wake up and realise that, yes, buying your first home is the right thing to do for yourself.

You’re tired of throwing away money on rent and figure that it’s time to get into a home of your own.

In most cases, first-time home buyers would opt for apartments due to convenience and the abundance of choices in accordance to one’s budget.

Apartments enjoy a reputation synonymous with city living, stylish open-plan space and great views.

But choosing and buying an apartment can be an arduous task (or maybe it was just me), and there are plenty of things you need to think about at each and every stage of the investment process.

This guide is what I put together to help highlight those key points you need to be thinking of at each and every stage of your quest for the perfect apartment. It was what I used to consider my purchase.

Spend some time thinking about the kind of apartment you’re looking for. This will help you narrow down your options and enable you to determine some ‘must haves’ in your apartment choices.

* Location, location, location! - Narrow down the areas that you are most interested in living in, and make a list of these locations. Similarly, make a note of all the areas you definitely don’t want to live. This way, property agents will know immediately which properties to offer and which to discard. This process narrows down your search and save you time when viewing.

* Money matters - Consider your finances carefully and decide on a maximum budget – narrowing down your search field in this way will ensure that you only view properties you can afford. Don’t forget to bear in mind your income and outgoings – factoring in not just the monthly payments, but the apartment’s montly service charges as well.

* Space - How much space will you need in your apartment? How many bedrooms? How big a kitchen? Do you need an office?

* Style - Studio apartments merge all your living space into one area, while open-plan design means that your kitchen, dining area and living room will be contained in one open space. Do you want separate rooms within the apartment? Would studio living be too cramped? For me, I had to give up on the idea of an open-concept kitchen mainly because I placed top priority on my apartment’s location and the apartment that suited my budget did not have an open-concept kitchen.

* Specifics - Are there certain criteria on which you are unwilling to compromise? Do you want wooden floors? High ceilings? An open-plan design? Designated parking spaces? In my case, besides the location being a priority, I wanted to have the smallest room in the apartment to be right next to the master bedroom. That way, I would be able to hack the wall to create an opening for my walk-in wardrobe.

It would be pointless for me to look at layouts where the smallest room would be at one end of the apartment, and the master bedroom be at the other end of the apartment.

The middle room would be too big to house my wardrobe and the smallest room would have been too small for my guest room and office.

 

Things to look out for

1. Noise - If you’re seriously thinking of investing in a particular apartment, take the time to research those living above and below as well as next-door to your property.

A week into your new apartment-life is not the time to discover a neighbour’s penchant for heavy metal or playing the drums!

2. Accessibility - Take a minute to think of those who will be visiting you at home – are there people for whom access could be a problem? Is there a functional lift for older visitors or family?

3. Outside Space - One of the sacrifices of apartment living can be the loss of outdoor space. I’m not so much of an outdoors person, but I made sure the apartment I purchased had a reasonably-sized balcony.

4. Pets - If you have pets, consider them in your property search.

This can be a major consideration for those wishing to move into an apartment, as you must be fair to both your pets and your neighbours.

Is your dog’s barking likely to irritate neighbours? Will you be able to give the pet adequate fresh air and exercise?

When you’ve found an apartment you’re really keen on, you may want to ask around people who live there or nearby to ensure there are no hidden problems which may affect your interest.

These efforts in research goes a long way in giving you peace of mind, should you finally decide to put in an offer, and can help you to avoid making an unsound investment.

I was passively looking at properties and being indecisive for three years before making a choice and sticking to it.

 

Source : Star Property

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EPF’s investment creates fresh competition

August 29, 2012 By Leave a Comment

THE entry of the Employees Provident Fund (EPF) as a big investor in real estate will create more challenges for the sector, said Country Heights Holdings Bhd founder Tan Sri Lee Kim Yew.

“With the recent land acquisition in Sungai Buloh, the EPF is going to be one of the biggest developers here. There is also competition from boutique developers and government agencies that have embarked on property development,” Lee said.

The EPF’s wholly-owned unit, Kwasa Land Sdn Bhd, has acquired 932ha of Rubber Research Institute (RRI) land in Sungai Buloh from the Malaysian Rubber Board for RM2.3 billion.

Lee said other challenges faced by the industry included inconsistent government policies by both federal and state governments.

 

He also said the building of low-cost houses is creating a slump in the market place and does not fulfil the requirement of a quality lifestyle.

Since the 1980s, developers are required to build low-cost houses priced RM42,000 a unit and below. But rising cost of raw materials is causing them to lose money from each house built and the take up by the lower income group has been slow.

The issue has been raised numerous times by the Real Estate And Housing Developers’ Association (Rehda), which comprises more than 1,000 members, for several years now.

“Developers are also at the mercy of bankers. I don’t think the property market can be sustained like this, unless the government does something soon. Local developers are capable of building healthy properties to avoid a property bubble here,” Lee said yesterday at the 15th National Housing and Property Summit 2012.

Rehda president Datuk Seri Michael Yam added that there should be a shift from low-cost hou-sing to affordable homes.

He said there is a lot of demand for properties priced between RM150,000 and RM300,000 and Rehda is appealing to the government to study the current market demand and situation.

Rehda is urging the government to freeze imposition of policies, guidelines and laws that add to the cost of development.

“We also hope the government will free up more land that they own for development. The government should consider developing Malay reserve land and building properties over existing infrastructure,” Yam said.

Glomac Bhd group managing director and chief executive officer Datuk Fateh Iskandar Mohamed feels that the property market will face new challenges going forward.

“Banks are still overzealous in end financing. The cost of doing business has also shown an increase in compliance cost, which is now about 30 per cent of total construction expenditure, not related to enhancement of property,” he said.

Source : Business Times

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French consumption down slightly, housing starts fall

August 1, 2012 By Leave a Comment

French household spending fell by 0.2 percent in the second quarter but rose slightly in June, while new housing starts continued to fall sharply, official data showed Tuesday.

Household spending was up 0.1 percent in June following a 0.5 percent increase in May, the INSEE national statistics office said.”The very slight increase in spending in June was due to increased spending on foodstuffs, which offset a decline in energy spending”, it said.

Purchases of food were up 1.0 percent in June, though down 1.3 percent over the second quarter.

Energy consumption was down 1.3 percent in June, after a 2.9 percent fall in May, though it was up 2.7 percent overall in the second quarter after unseasonably cold weather kept gas and electric spending high.

Data published by France’s housing ministry meanwhile showed new housing starts were down 14 percent between April and June, after plummeting 19.9 percent between March and May.

The number of permits issued for new builds was also down 1.9 percent between April and June, after a 2.0 percent decline in the previous period.

For April to June, the number of new housing starts was 69,937 units. Over the 12 months between July 2011 and June 2012, housing starts remained slightly positive, with a gain of 2.7 percent.

 

Source by: The Star

Picture by: telegraph

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Timely lifeline for Bukit Kiara

August 1, 2012 By Leave a Comment

KUALA LUMPUR: Housing and Local Government Minister Datuk Seri Chor Chee Heung has ordered a halt to all construction in Bukit Kiara until further notice.

He has also promised to work closely with Friends of Bukit Kiara (FoBK) and other NGOs and concerned members of the public to repair the damage done by the construction of a fence to demarcate the park.

Chor announced the stop-work order when he, together with National Landscape Depart­ment representatives, met concerned members of the public and NGOs here.

“Although 80% of the fencing work is complete and much damage has been done, we will work from now on to preserve (the forest) as well as repair the damage. More public engagement sessions would be held on the development of Bukit Kiara to make it a big-scale public park over the next 25 years.”

Chor also said the delay in gazetting Bukit Kiara was because more than 64 of the 187ha land had been leased to two corporations.

Former prime minister Tun Abdullah Ahmad Badawi and his wife Tun Jeanne Abdullah, who is Landscape Malaysia chairman, were also present.

 

Source by: The Star

Picture by: berjaya

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Another volatile week expected

May 28, 2012 By Leave a Comment

IT is expected to be yet another volatile week in the local stock market, with investors keeping a close watch on a potential Greek exit from the eurozone – news that spooked global markets last week.

At home, eyes will also be on the two-day Invest Malaysia conference that starts in Kuala Lumpur tomorrow, with investors looking for potentially juicy news that could stir market sentiments.

Besides 40 public-listed companies that are expected to present their prospects to local and foreign fund managers, there will also be Prime Minister Datuk Seri Najib Razak’s address on the first day that could potentially include announcements that move the market.

At last year’s Invest Malaysia conference, for instance, the prime minister announced that Felda would list its sugar business in what would be the first-ever listing within the Felda group.

Meanwhile, analysts and dealers say investors should exercise caution as there could be potential downward volatility for the world’s indices in the next few weeks, which would also drag down the Malaysian market.

“The adage ‘Sell in May and Go Away’ will still hold true in 2012. We still prefer to sell any low-volume rebound rallies on the index, due to the FBM KLCI’s mostly negative signals,” Maybank Investment Bank Research said in a note to clients last Friday.

“A break below 1,566.55 would spell further sustained downside towards 1,451, 1,477, 1,510 and 1,521,” it added.

The FBM KLCI was resilient last week despite the global economic uncertainties, rising by 1.2 per cent over the week to close at 1,551.12 points. On Wall Street, the Dow Jones Industrial Average was down by 0.6 per cent on Friday but closed the week 0.7 per cent higher to 12,454.83.

In the United States, the latest jobs and manufacturing data is expected to be released this week.

Stocks that could be in the spotlight this week include RHB Capital and the OSK Holdings, as the former unveils details today of its plan to acquire OSK group’s investment banking business.

 

Source by: Business Times

Picture courtesy of: 123rf

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