Tuesday, 21 February 2012
Friday, 17 February 2012
Property Prices Trending Now
Strategies for developers, investors and homebuyers
By Peter Yee
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It is envisaged that KLCC and Mont’ Kiara properties will experience a price correction and yield lower rental rates this year. |
This development can be attributed to the simultaneous financial measures adopted by countries near and far, during the global financial crisis of 2008-2009, namely:
- the quantitative easing QE1 of US$1.3 trillion and QE2 of US$600 billion by the US
- economic stimulus package of US$570 billion by China
- Singapore’s US$13.7 billion
- Malaysia’s RM67 billion (US$21.4 billion)
The simultaneous financial measures and economic stimuli flooded the supply of money and increased global liquidity. This caused the real value of money to depreciate relative to property. As such, the real value of money is getting “smaller” in comparison to property.
High liquidity, low interest rates and higher costs of land and construction materials are some of the factors pushing up property prices in Malaysia.
Curbing effects
Recently, property prices in China and Hong Kong have begun to decline due to measures to curb speculative buying by their governments.
Singapore has imposed an extra stamp duty of 10% on homes bought by foreigners in early December 2011.
In Malaysia, since Nov 2010, the maximum loan-to-value ratio of 70% for the third and subsequent property has affected housing loan borrowings.
Real property gains tax as outlined in the 2012 budget has increased to 10% for the first two years and 5% from the third year to the fifth year.
Bank Negara has also introduced guidelines to rein in Malaysian household debt by assessing potential borrower’s nett income in their evaluation process from Jan 1st this year.
Gross Domestic Product (GDP) is estimated to be around 4.8% for 2012. Household debt to GDP ratio is expected to balloon to above 78% in 2012. Household financing facilities account for more than 55% of the total banking system’s loans.
Oversupply
Malaysia’s property market has begun to cool down during the second half of 2011 due to an oversupply of high-rise properties in the Kuala Lumpur City Centre and the Mont’ Kiara area.
General market sentiment has also cooled due to the slowdown in China, Europe’s debt crisis, stagnation in Japan and the US economic crisis.
The general trend for Malaysia’s property market in 2012 will be a slowdown due to declining liquidity, borrowing capacity and sentiment. It is likely the KLCC and Mont’ Kiara area will experience a price correction and lower rental rates for 2012.
Demand for newer, high-end landed residential properties such as semi-detached and bungalow units with prices above RM1mil may also decline in 2012. This is partly due to the relative rental yield to investment which does not justify the monthly loan repayment. For example, a RM2mil bungalow fetches only a monthly rental of about RM5,000 while the monthly bank repayment is approximately RM12,000 (depending on the duration of the loan).
Property prices in the city and its fringes may be stable but property located far from the city, may decline in price as the property market extends outward from the city during a booming market and contracts inwards towards the city during a market decline. The right type of property located in a good location will be stable in prices.
Investment strategies
There are certain property investment strategies that developers, homeowners and investors in Malaysia can adopt.
For developers, the demand for properties above RM500,000 from foreigners is likely to reduce, due to property prices “correcting” in their own country, such as China and Hong Kong.
Properties priced above RM500,000 is beyond the affordability of most Malaysians whose average monthly income is about RM6,000.
The Malaysian population by July 2011 was 28.7 million. The new wave of baby boomers born during 1979-1985 (aged 26-32) are now in the workforce. Currently, 60% of the population is below 30. Low interest rates of 3% and the low unemployment rate of 3% will sustain the demand for properties below RM500,000 in 2012 by this generation. Developers may choose to develop more properties priced below RM500,000, phase out development to avoid oversupply, build property with attractive and innovative design, give more freebies to attract purchasers or build and sell a few years later.
Rent now, buy later
For homeowners, the strategy may be to rent first in a preferred or selected area and buy later. They may also selectively, “bargain-hunt” the secondary residential market for renovated property below market price or buy from established developer with all the freebies.
In recent years, most investors invest for capital gain, for 2012, the probability for capital gain is reduced due to the high prices and changing global economics which has dampened sentiment.
Buy-and-hold
The upside for capital gain may be limited for 2012. Property investors may consider changing from a capital gain strategy to a cash flow strategy - change from buy- and-sell to buy-and-hold for rental income.
Investors can choose to reduce or sell property that have appreciated in value, such as no-income property or low-income yield residential properties such as vacant land, bungalow lots, super-link, semi-detached and bungalow homes.
They can then choose to reinvest in high-rise residential properties (apartments and condominiums) with yield of more than 8% in a high-occupancy area. Reinvest in commercial properties which can yield more than 6% in a high-occupancy area such as shop-offices, shophouses, shoplots, retail lots and factories.
Financial defence
The above observations and proposed measures to adopt are only my opinion of the probable trend in the property market.
However, during times of uncertainty, one’s financial defence measures become more important.
For a developer, a contingency financial plan should be in place for the worst-case scenario.
A specific and targeted group of purchasers and their needs should be identified. And the suitability of a project location with innovative design and quality building materials should be vital points to consider to attract various segments of purchasers.
For a home buyer, the monthly loan repayment should preferably, be less than 30% of one’s household income.
And one should also allocate money for an emergency fund to cover three to six months of one’s expenses.
Credit line
For a property investor, a specific credit line such as over-draft facility should be in place for a period of low occupancy. There is always opportunity in property, if you know how to prepare and match your own financial capacity with the possible changes in the property market in 2012 and beyond.
We cannot change the direction of the property market but we can adjust our property investment fund and portfolios to prevent possible setbacks and capture the opportunities that arise from the changes in the property market.
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Over the years, Peter Yee has taken on many roles including as a management consultant, stock broker, restaurant owner, property investor and investment coach. Yee is the author of You Can Become Rich in Property and The Certain Way to Life’s Riches.
Star Property
Strong property demand in Q4
Strong property demand in Q4
 |
| Metro Homes has about 500 representatives including real estate agents and negotiators. |
The first quarter of the year would be “quiet”, pointed out See, 41, a director of Metro Homes Sdn Bhd. The nett income of most people such as property buyers would not increase substantially. But banks were likely to be more stringent in assessing borrowers due to prevailing economic factors. (See related article on “Property prices trending now” in StarProperty.my )
Price increases
Therefore, property transactions in the second and third quarters of the year would generally be quite “flat”. In the past two years, there have been quite substantial increases in property prices. So, property prices were already quite high compared to what the market could afford, explained See, who holds a master’s degree in business administration as well as an accounting degree from Universiti Malaya.
The costs of construction material and development land would not likely come down, he added. Faced with a soft market situation, the bigger developers who were financially strong, might delay any project launch this year.
But the last quarter of the year, would see a significant price movement – upwards, predicted See.
And due to such a scenario this year, he rationalised that the more speculative type of property purchases including high-end condominium units will be affected.
But he advised property buyers who intended to buy for their own use or “with a purpose” to proceed.
“The supply side is still plentiful. Projects that were launched in 2009 and 2010 would have been completed or are nearing completion by now, therefore contributing to quite a significant supply.”
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| Prestij @ Kota Damansara is another project marketed by Metro Homes. It offers three-storey, semi-detached shop-office units with an average starting price of RM3.8mil. The units come with individual titles with lift facility and private parking space and land. |
See said that every completed project would take time before buyers or tenants started to occupy the units. The occupancy rate would initially be low due to the time lag. Therefore, property buyers shouldn’t be unduly influenced by such a situation when assessing a project to buy in.
“Everyone in the industry worry about the occupancy rate,” said See, when asked to comment on the seemingly high number of vacant units in many high-end condominium developments in the Klang Valley.
“If there is 30% occupancy rate in the first year of the project’s completion, the developers would be very happy.
“Normally, the rate would increase to 60% to 70% in the second and third year.
“Our property market is not as active as in Singapore or Hong Kong. Over there, residents will start moving in within two weeks of vacant possession or when the property is ready to be occupied as the rental market is active.”
See explained that many people who buy such condominium property were cash rich. And therefore, were not in a hurry to occupy the units or to rent out.
“Such property purchases represent only a small investment in their total portfolio. And some would be only waiting for capital gains.”
Infrastructure
When it comes to picking the right developments or areas to invest in property, See advised prospective buyers to look at the overall picture.
All prime areas were popular and one should also look at the infrastructure of the developments. For instance, Damansara, Puchong and Cheras represent the more matured areas.
When linked-houses were launched in Puchong a couple of years back, the price was RM600,000 per unit, now the asking price is about RM1mil.
Buyers of newer areas of development have to take greater risks.
For example, demand for Setia Alam property in Shah Alam were rather slow between 2006 and 2008 but the market picked up later. The township was launched in 2003 and subsequently, the New Klang Valley Expressway was opened in 2006. Today it is quite a popular residential area with access from the Federal Highway and Klang Town via Jalan Meru.
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| Each Metro Homes representative has at least 50 property listings, says K.L. See |
See, who is licensed by the Board of Valuers, Appraisers and Estate Agents in Malaysia, said property agents and negotiators needed to be trained in order to provide professional services.
“We have close to 500 representatives including agents and negotiators. And each of them has at least 50 listings. While other agencies have franchised their business, we don’t do that. We are stakeholders of our branches and we own the operations. So, we are able to mobilise all our offices for any marketing project,” said See who cited economy of scale as one his company’s advantages in operation.
Since Metro Homes was established in Petaling Jaya in 1995, it now has offices in Sri Hartamas, Damansara Utama, Kota Damansara, Subang, Puchong, Shah Alam, Cheras, Klang, Setia Alam, Serdang as well as Penang and Kota Kinabalu.
“Last year, we conducted a fair bit of project marketing by bringing developments from here to East Malaysia. For instance, we were involved in projects by Glomac and Mah Sing. We are exclusive agents for such projects in East Malaysia,” said See whose company also market projects by smaller developers and overseas properties.
“Our business comprises 70% transactions involving property in the secondary market and 30% from new developments. We also have special teams to handle luxury property as well as industrial projects and property put on auction.”
See advised property owners to have a written agreement with agents tasked with selling their property, stating whether it would be an exclusive, ad hoc or joint listing.
Owners need to check the relevance of the information on their property. They cannot leave it to the agent with a “freehand”.
- StarProperty
Sunday, 1 January 2012
Property Market Outlook 2012 by Ho Chin Soon
Rapid speed transportation linking key growth areas of Malaysia will propel demand for properties in locations currently deemed less desirable or accessible.
Speaking on “Property market outlook 2012” and “Why you should buy now,” at the recent Star Property Fair in Kuala Lumpur, well-known map maker, research consultant and author Ho Chin Soon pointed out key indicators to detect locations where demand for properties would likely to go up.
The foreseeable and probable factors that could affect the property market next year, include:
-the proposed high speed rail link between Greater KL to the southern tip of the peninsula
-the proposed MRT link between Singapore and Malaysia
-the stock market
Ho Chin Soon presenting his talk on "Property Market Outlook 2012 & Why You Should Buy NOW"at Star Property Fair 2011
MRT link
Ho highlighted the Entry Point Project (EPP) under the Economic Transformation Programme ( ETP) which will focus on new MRT lines and MRT stations.
With the completion of such transport facilities, residents will have access to almost every major development site of Greater KL where you are not able to enjoy for the time being.
The proposed MRT line will not just pass through major residential developments to your work place but will also be connected to major commercial and entertainment centres such as 1Utama shopping centre. However, such details have yet to be confirmed.
This development will be made possible when MRT Co, a government-linked company under the Ministry of Finance - overseeing the proposed MRT line - finalise details.
Citing from his book, Greater KL: The Rise of Bukit Bintang, Ho was optimistic of the further growth of Bukit Bintang, due in part to the proposed MRT stations to be built at:
Bukit Bintang-Pudu (West Bukit Bintang )
Pavilion (East Bukit Bintang)
and most importantly, an interchange station in the Kuala Lumpur International Financial district.
According to Ho, with a more convenient mode of transportation, property prices in those areas will be “healthy”.
High-speed rail
Another key factor under the Entry Point Project is the reduction in travelling time to Singapore from Greater KL via the high-speed rail. Ho envisaged that with a train travelling up to 350km per hour, one would be able to reach Johor Baru in 70 minutes.
He said high speed rail transportation will be crucial in the development of a mega region comprising Greater KL, Iskandar Malaysia in Johor and Singapore. Such a region will have a combined population that could reach 20 million. Formerly known as the Iskandar Development Region and South Johor Economic Region, the Iskandar Malaysia site is the main southern development corridor in Johor.
With charts to illustrate cross-border traffic data, Ho pointed out that up to 126,000 vehicles cross the Johor-Singapore Causeway daily where 70% of them are Singapore-registered cars.
He highlighted the fact that Singaporeans own up to 40% of the properties being constructed in Iskandar Malaysia.
Malaysia will likely experience greater spillover effects from Singaporeans travelling here, especially when the proposed rapid transit system linking Tanjung Puteri in Johor Baru to Singapore commences operations in 2018.
Compound Annual Growth Rate
On determining property value, Ho said a useful tool would be the Compound Annual Growth Rate (CAGR) calculator, essentially to calculate the annual growth rate of an investment over a period of time.
Using the calculator and the housing price index spanning 10 years - provided by Valuation and Property Services Department - Ho concluded that the best Compound Annual Growth Rate last year was surprisingly registered in Sabah with 8.06% and not Kuala Lumpur, which only came in second place, with 4.75%.
The lowest growth rate tabulated was in Johor, with minus 0.2% due to an oversupply situation in the south which depressed property prices.
In Sabah and Sarawak, it was a different scenario because people there benefited from their respective state government policy that emphasised cultivating agricultural land that brought good returns. Another factor was due to the increase in palm oil prices, and astute Sabahans used the money to invest in property.
Crash
On the price levels for various types of property in Malaysia, Ho found that condominium prices were mostly flat and stable due to ample supply. But landed property prices continued to increase and if this situation continues in 2012 than a crash in landed property prices could likely occur.
Ho said property prices would normally be on the rise if the stock market was doing well and vice versa, citing the 1997 Asian Financial crisis as an example.
Speaking on “Property market outlook 2012” and “Why you should buy now,” at the recent Star Property Fair in Kuala Lumpur, well-known map maker, research consultant and author Ho Chin Soon pointed out key indicators to detect locations where demand for properties would likely to go up.
The foreseeable and probable factors that could affect the property market next year, include:
-the proposed high speed rail link between Greater KL to the southern tip of the peninsula
-the proposed MRT link between Singapore and Malaysia
-the stock market
Ho Chin Soon presenting his talk on "Property Market Outlook 2012 & Why You Should Buy NOW"at Star Property Fair 2011
MRT link
Ho highlighted the Entry Point Project (EPP) under the Economic Transformation Programme ( ETP) which will focus on new MRT lines and MRT stations.
With the completion of such transport facilities, residents will have access to almost every major development site of Greater KL where you are not able to enjoy for the time being.
The proposed MRT line will not just pass through major residential developments to your work place but will also be connected to major commercial and entertainment centres such as 1Utama shopping centre. However, such details have yet to be confirmed.
This development will be made possible when MRT Co, a government-linked company under the Ministry of Finance - overseeing the proposed MRT line - finalise details.
Citing from his book, Greater KL: The Rise of Bukit Bintang, Ho was optimistic of the further growth of Bukit Bintang, due in part to the proposed MRT stations to be built at:
Bukit Bintang-Pudu (West Bukit Bintang )
Pavilion (East Bukit Bintang)
and most importantly, an interchange station in the Kuala Lumpur International Financial district.
According to Ho, with a more convenient mode of transportation, property prices in those areas will be “healthy”.
High-speed rail
Another key factor under the Entry Point Project is the reduction in travelling time to Singapore from Greater KL via the high-speed rail. Ho envisaged that with a train travelling up to 350km per hour, one would be able to reach Johor Baru in 70 minutes.
He said high speed rail transportation will be crucial in the development of a mega region comprising Greater KL, Iskandar Malaysia in Johor and Singapore. Such a region will have a combined population that could reach 20 million. Formerly known as the Iskandar Development Region and South Johor Economic Region, the Iskandar Malaysia site is the main southern development corridor in Johor.
With charts to illustrate cross-border traffic data, Ho pointed out that up to 126,000 vehicles cross the Johor-Singapore Causeway daily where 70% of them are Singapore-registered cars.
He highlighted the fact that Singaporeans own up to 40% of the properties being constructed in Iskandar Malaysia.
Malaysia will likely experience greater spillover effects from Singaporeans travelling here, especially when the proposed rapid transit system linking Tanjung Puteri in Johor Baru to Singapore commences operations in 2018.
Compound Annual Growth Rate
On determining property value, Ho said a useful tool would be the Compound Annual Growth Rate (CAGR) calculator, essentially to calculate the annual growth rate of an investment over a period of time.
Using the calculator and the housing price index spanning 10 years - provided by Valuation and Property Services Department - Ho concluded that the best Compound Annual Growth Rate last year was surprisingly registered in Sabah with 8.06% and not Kuala Lumpur, which only came in second place, with 4.75%.
The lowest growth rate tabulated was in Johor, with minus 0.2% due to an oversupply situation in the south which depressed property prices.
In Sabah and Sarawak, it was a different scenario because people there benefited from their respective state government policy that emphasised cultivating agricultural land that brought good returns. Another factor was due to the increase in palm oil prices, and astute Sabahans used the money to invest in property.
Crash
On the price levels for various types of property in Malaysia, Ho found that condominium prices were mostly flat and stable due to ample supply. But landed property prices continued to increase and if this situation continues in 2012 than a crash in landed property prices could likely occur.
Ho said property prices would normally be on the rise if the stock market was doing well and vice versa, citing the 1997 Asian Financial crisis as an example.
Property sector to correct
The steep increases seen in the last two years expected to sputter to a halt on weak global sentiment
THE overall weak global sentiment is expected to cast a pall over the property sector, which is expected to undergo some downward correction next year, agents, property consultants and developers say, with the steep increases seen in the last two years sputtering to a halt. Virtually all segments of the property market will be affected.
International Real Estate Federation (Fiabci) Malaysia president Yeow Thit Sang says the slowdown, though gradual, will be seen in the pricing and take-up rate of all housing segments, particularly more so in the high-end category.
“Whether it is Penang or the Klang Valley, we don’t have that many multinational companies coming in to occupy some of our high-end properties. Rentals with yields of between 6% and 8% are no longer achievable,” he says.
This slower rate of growth is expected to be more apparent after the new ruling by Bank Negara kicks in. Effective Jan 1, new lending guidelines require banks to use net income to calculate the debt service ratio for loan approvals.
The new guidelines cover all consumer loan products including housing loans, personal loans, car loans, credit-card receivables and loans for the purchase of securities.
While this latest round has the objective of reducing overall household debt, it will affect the property sector, a branch manager of a local bank says.
Previous lending guidelines capped monthly mortgage repayment at 1/3 of net pay instead of gross pay. This new ruling, and the requirement to have a 30% downpayment on the third and subsequent property, introduced in 2010, will result in the banking sector being more stringent when it comes to mortgage loan approvals. The re-imposition of the real estate property tax, at 5% flat within five years of purchase, was another measure to curb speculation.
These measures, together with the global concerns over the United States and the eurozone, will affect sentiment. However, there will be opportunities in the affordable housing segment, which is part of the Government’s Economic Transformation Programme.
Says Ireka Corp Bhd executive director Lai Voon Hon: “We see strong growth potential in these ‘under-served’ sectors such as mid-market residential and commercial as well as ‘green’ developments located close to infrastructure nodes. Market movement in recent months had observed major developers acquiring parcels of land outside the Klang Valley such as in Kajang, Semenyih and Nilai which are destined to be the next “hot spots”.
“With 65% of the Malaysian population falling under 35 years old, we trust that the demand will pick up as consumer confidence recovers. Close to 10 million people are expected to work, live, learn and play in the Greater KL metropolis by 2020.
“Burgeoning young and middle-class population also means the demand for mid-market properties will remain steadfast,” Lai said, adding that the mid-market will receive strong support in terms of demand, and this will be Ireka’s primary focus in 2012.
Other developers to move into affordable housing include the Sime Darby group and Mah Sing group. Sime Darby recently launched affordable housing in Bandar Ainsdale in Seremban. Mah Sing Group Bhd, too, is moving away from high-end housing to go into the affordable housing segment.
Mah Sing group managing director and group CEO Tan Sri Leong Hoy Kum says: “The high-end sector, both landed and high-rise, will be more challenging with the RM4mil and above units taking longer to sell.”
Ireka’s Lai says the company will be developing a 28-acre freehold land in Bandar Nilai Utama, Negri Sembilan into a trendy mid-market neighbourhood, consisting of landed houses and apartments. Another five acres of prime land in Kajang will be developed into a mixed development. consisting of two mid-market apartment blocks and a retail precinct.
Ireka will also embark on a modern industrial park development on its 21-acre freehold land in the established Sungai Chua industrial area near Kajang.
Aside from these three mid-market developments, in the pipeline is the launch of its boutique hotel and serviced residences project in Jalan Kia Peng, within the Kuala Lumpur City Centre (KLCC). This 30:70 joint development project between Ireka and Aseana Properties Ltd is slated for launch in the second half of next year.
On the overall market, Lai says launches and sales take-up rate will be generally slower. However, Malaysia’s property sector (will be) resilient, he says.
Property consultant DTZ Debenham Tie Leung’s executive director Brian Koh says “properties will have to be sensibly priced” with smaller units (if they are condominiums), selling better than larger ones. DTZ will be launching Naza TTDI Sdn Bhd’s Platinum Park around the KLCC area next year.
Over in the office segment, the current glut is expected to persist into next year which will put pressure on rentals.
The overall view of property professionals is that the office market in Kuala Lumpur will remain soft next year unless the global economy recovers sufficiently to spur business expansion to take up the current supply in the city. With the eurozone the way it is, that seems unlikely.
Y. Y. Lau of YY Property Solutions expects Grade A office buildings in KL (existing and new) to face intense competition to secure tenants next year.
“Demand for prime Grade A office buildings held up well last year. But we are expecting an estimated five million sq ft of office space to come onstream in the Kuala Lumpur Commercial Business District and city fringes by end-2012, with KLCC and the Golden Triangle area providing over 90% of the new supply in the first half of next year. “In the second half, the bulk of the supply will be coming from the fringes of Kuala Lumpur.
“We opine that KL Sentral, Bangsar South and Mid Valley City will play a catch-up game in attracting eminent companies seeking MSC status and green building features, as well as conveniences in terms of availability of public transportation, ample eateries and amenities, and upgrading of corporate image. Good building quality and property management services provided are expected to attract companies to set up its businesses here,” Lau says.
Star property
THE overall weak global sentiment is expected to cast a pall over the property sector, which is expected to undergo some downward correction next year, agents, property consultants and developers say, with the steep increases seen in the last two years sputtering to a halt. Virtually all segments of the property market will be affected.
International Real Estate Federation (Fiabci) Malaysia president Yeow Thit Sang says the slowdown, though gradual, will be seen in the pricing and take-up rate of all housing segments, particularly more so in the high-end category.
“Whether it is Penang or the Klang Valley, we don’t have that many multinational companies coming in to occupy some of our high-end properties. Rentals with yields of between 6% and 8% are no longer achievable,” he says.
This slower rate of growth is expected to be more apparent after the new ruling by Bank Negara kicks in. Effective Jan 1, new lending guidelines require banks to use net income to calculate the debt service ratio for loan approvals.
The new guidelines cover all consumer loan products including housing loans, personal loans, car loans, credit-card receivables and loans for the purchase of securities.
While this latest round has the objective of reducing overall household debt, it will affect the property sector, a branch manager of a local bank says.
Previous lending guidelines capped monthly mortgage repayment at 1/3 of net pay instead of gross pay. This new ruling, and the requirement to have a 30% downpayment on the third and subsequent property, introduced in 2010, will result in the banking sector being more stringent when it comes to mortgage loan approvals. The re-imposition of the real estate property tax, at 5% flat within five years of purchase, was another measure to curb speculation.
These measures, together with the global concerns over the United States and the eurozone, will affect sentiment. However, there will be opportunities in the affordable housing segment, which is part of the Government’s Economic Transformation Programme.
Says Ireka Corp Bhd executive director Lai Voon Hon: “We see strong growth potential in these ‘under-served’ sectors such as mid-market residential and commercial as well as ‘green’ developments located close to infrastructure nodes. Market movement in recent months had observed major developers acquiring parcels of land outside the Klang Valley such as in Kajang, Semenyih and Nilai which are destined to be the next “hot spots”.
“With 65% of the Malaysian population falling under 35 years old, we trust that the demand will pick up as consumer confidence recovers. Close to 10 million people are expected to work, live, learn and play in the Greater KL metropolis by 2020.
“Burgeoning young and middle-class population also means the demand for mid-market properties will remain steadfast,” Lai said, adding that the mid-market will receive strong support in terms of demand, and this will be Ireka’s primary focus in 2012.
Other developers to move into affordable housing include the Sime Darby group and Mah Sing group. Sime Darby recently launched affordable housing in Bandar Ainsdale in Seremban. Mah Sing Group Bhd, too, is moving away from high-end housing to go into the affordable housing segment.
Mah Sing group managing director and group CEO Tan Sri Leong Hoy Kum says: “The high-end sector, both landed and high-rise, will be more challenging with the RM4mil and above units taking longer to sell.”
Ireka’s Lai says the company will be developing a 28-acre freehold land in Bandar Nilai Utama, Negri Sembilan into a trendy mid-market neighbourhood, consisting of landed houses and apartments. Another five acres of prime land in Kajang will be developed into a mixed development. consisting of two mid-market apartment blocks and a retail precinct.
Ireka will also embark on a modern industrial park development on its 21-acre freehold land in the established Sungai Chua industrial area near Kajang.
Aside from these three mid-market developments, in the pipeline is the launch of its boutique hotel and serviced residences project in Jalan Kia Peng, within the Kuala Lumpur City Centre (KLCC). This 30:70 joint development project between Ireka and Aseana Properties Ltd is slated for launch in the second half of next year.
On the overall market, Lai says launches and sales take-up rate will be generally slower. However, Malaysia’s property sector (will be) resilient, he says.
Property consultant DTZ Debenham Tie Leung’s executive director Brian Koh says “properties will have to be sensibly priced” with smaller units (if they are condominiums), selling better than larger ones. DTZ will be launching Naza TTDI Sdn Bhd’s Platinum Park around the KLCC area next year.
Over in the office segment, the current glut is expected to persist into next year which will put pressure on rentals.
The overall view of property professionals is that the office market in Kuala Lumpur will remain soft next year unless the global economy recovers sufficiently to spur business expansion to take up the current supply in the city. With the eurozone the way it is, that seems unlikely.
Y. Y. Lau of YY Property Solutions expects Grade A office buildings in KL (existing and new) to face intense competition to secure tenants next year.
“Demand for prime Grade A office buildings held up well last year. But we are expecting an estimated five million sq ft of office space to come onstream in the Kuala Lumpur Commercial Business District and city fringes by end-2012, with KLCC and the Golden Triangle area providing over 90% of the new supply in the first half of next year. “In the second half, the bulk of the supply will be coming from the fringes of Kuala Lumpur.
“We opine that KL Sentral, Bangsar South and Mid Valley City will play a catch-up game in attracting eminent companies seeking MSC status and green building features, as well as conveniences in terms of availability of public transportation, ample eateries and amenities, and upgrading of corporate image. Good building quality and property management services provided are expected to attract companies to set up its businesses here,” Lau says.
Star property
Property market welcomes new group of buyers
BEGINNING tomorrow, new guidelines from Bank Negara Malaysia to curb rising household debt are going to kick in. The guidelines cover all consumer loan products including housing, personal and car loans, credit card receivables as well as loans for the purchase of securities.
Instead of loan approvals being based on gross pay, they will be based on net pay, after income tax, social security deductions and the Employees’ Provident Fund contributions. These are the three main items. The objective of this ruling is to reduce the household debt which has been on the rise.
In all likelihood, property sales will be affected but what is interesting is, how this ruling will affect an increasingly younger generation of buyers who are entering the market for the first time.
In the last 24 months, developers have seen a new group of buyers. They are young and aggressive, upbeat and have a huge appetite for risk. Many of them are in their 20s or early 30s. Many buy with joint names and they are not related to each other. They buy studio units and two-bedroom condominiums, with a built-up of between 600sq ft and 800sq ft with a price tag of averaging RM500,000. When the mortgage payment kicks in, that RM450,000 loan (based on a 10:90 scheme) will equate to a monthly repayment of about RM2,500.
A developer says this scenario is due to a combination of factors. The steep rise in property prices the last two years, coupled with the gains, have spurred this young group of buyers to take on the responsibility of shouldering this long-term commitment.
More than 10 years ago, during the stock market bull run of the 1990s, the market was on an uptrend for a good number of years before the Asian Financial Crisis hit the region. At that time, many young people, including college students, began dabbling in the stock market. Just as that period prompted young people to learn about stocks, the last two years have introduced them to another investment instrument. The difference between the two is the outlay, and the duration of that commitment with stocks needing a smaller capital and more liquid.
Developers say there are essentially two groups of young people who have entered the market in the last two years. The first group are those who, seeing the gains made by earlier purchasers, enter the market with the objective of making a quick gain. Another group ventures into the market before prices go up further and they plan to hold the property for the longer term.
A major factor that encourages this group of aggressive young buyers is the availability of easy credit. The introduction of the 10:90 schemes induces them to make the decision. Many of them hope they will be able to flip that property on completion and make that 25% to 30% gain.
For this group who are buying to flip, they may find the gains not worth the while for the simple reason that the premise of making a 25% to 30% gain is based on a rising market. Prices are today stabilising and there is a glut of high-rise condominiums.
Lawyers and property professionals say investors are unlikely to make that 20% gain going forward. Furthermore, the 5% real property gain tax will also shave off gains. In the event they are unable to off load their units fast enough, they will have to rent them out, but they may encounter another problem – a glut of condominiums and few tenants.
Star Property
Instead of loan approvals being based on gross pay, they will be based on net pay, after income tax, social security deductions and the Employees’ Provident Fund contributions. These are the three main items. The objective of this ruling is to reduce the household debt which has been on the rise.
In all likelihood, property sales will be affected but what is interesting is, how this ruling will affect an increasingly younger generation of buyers who are entering the market for the first time.
In the last 24 months, developers have seen a new group of buyers. They are young and aggressive, upbeat and have a huge appetite for risk. Many of them are in their 20s or early 30s. Many buy with joint names and they are not related to each other. They buy studio units and two-bedroom condominiums, with a built-up of between 600sq ft and 800sq ft with a price tag of averaging RM500,000. When the mortgage payment kicks in, that RM450,000 loan (based on a 10:90 scheme) will equate to a monthly repayment of about RM2,500.
A developer says this scenario is due to a combination of factors. The steep rise in property prices the last two years, coupled with the gains, have spurred this young group of buyers to take on the responsibility of shouldering this long-term commitment.
More than 10 years ago, during the stock market bull run of the 1990s, the market was on an uptrend for a good number of years before the Asian Financial Crisis hit the region. At that time, many young people, including college students, began dabbling in the stock market. Just as that period prompted young people to learn about stocks, the last two years have introduced them to another investment instrument. The difference between the two is the outlay, and the duration of that commitment with stocks needing a smaller capital and more liquid.
Developers say there are essentially two groups of young people who have entered the market in the last two years. The first group are those who, seeing the gains made by earlier purchasers, enter the market with the objective of making a quick gain. Another group ventures into the market before prices go up further and they plan to hold the property for the longer term.
A major factor that encourages this group of aggressive young buyers is the availability of easy credit. The introduction of the 10:90 schemes induces them to make the decision. Many of them hope they will be able to flip that property on completion and make that 25% to 30% gain.
For this group who are buying to flip, they may find the gains not worth the while for the simple reason that the premise of making a 25% to 30% gain is based on a rising market. Prices are today stabilising and there is a glut of high-rise condominiums.
Lawyers and property professionals say investors are unlikely to make that 20% gain going forward. Furthermore, the 5% real property gain tax will also shave off gains. In the event they are unable to off load their units fast enough, they will have to rent them out, but they may encounter another problem – a glut of condominiums and few tenants.
Star Property
Tuesday, 16 August 2011
BLand to buy land from Penang Turf Club
PETALING JAYA: Berjaya Land Bhd (BLand) has entered into a conditional sale and purchase agreement with Penang Turf Club to acquire 57.3 acres of prime freehold land for RM459mil cash for high-end residential property projects.
In a filing with Bursa Malaysia yesterday, BLand proposed development that includes (but not limited to) the construction of bungalows, semi-detached houses, condominiums and apartment units on the newly acquired land.
“The salient features of the development are a low-density exclusive guarded and gated-up housing development comprising bungalows, semi-detached houses, condominiums and low medium cost housing (as required by the local regulations) cum abundance of landscape and greenery,” it said.
BLand added that estimated GDV of the project was RM1.52bil, However, the total development cost and the source of funds for the development would only be ascertained once the development plans were finalised. The property development is expected to be developed over five years.
Prime land: Tan says the development on the 57-acre site will not affect the turf club horse-racing activities.
Upon the execution of the sale and purchase agreement, BLand has to pay a deposit of RM20mil to Penang Turf Club while the balance of the deposit of RM25.9mil to be paid within 14 days after obtaing the planning approval. Subsequently, BLand will make the first payment of RM137.7mil within 12 months from unconditional date of the sales and purchase agreement while second payment to be paid within 12 months after the first payment followed by a third payment at a 12 months interval from the second.
BLand said the purchase price at about RM8.01mil per acre or RM184 per square feet.
“The purchase price will be funded through the internally generated funds of the BLand group and borrowings. The actual mix will be decided at later stage after taking into consideration the BLand group's gearing, interest costs and other working capital requirements,” it said.
Meanwhile, Bernama quoted Berjaya Corp Bhd founder Tan Sri Vincent Tan as saying: “We've won the bid to buy 57 acres of land and we're now planning to develop the land into an exclusive residential area comprising bungalows, semi-detached houses and low-rise condominium.”
Given the strong demand for high-end landed properties in Penang, Tan hoped the exclusive homes could further boost value of suburban housing in the area.
“In fact, at first, I wondered whether we've overpaid the price for the land, but we believe in the long term, it will turn out to be a good investment. We're confident that with Berjaya's commitment, this property will be developed into an important residential landmark in Penang,” he said.
Tan said Berjaya established its first property and hotel development in Penang in mid-1990s. “We're happy to be back here again and to be associated with an established and reputable name like Penang Turf Club,” he said.
He said development of the 57 acres would not affect the turf club horse-racing activities which would be held on the newly repaired and rejuvenated main racing track.
Tan also said BLand was looking for other strategic and attractive places in Penang for investment.
In 2004, BLand has won the bid to relocate the Selangor Turf Club in Sungei Besi for RM640mil, and in return BLand gets the club's land in Sungai Besi and plans to carry out a mixed development project valued at RM6.3bil.
By TheStar
In a filing with Bursa Malaysia yesterday, BLand proposed development that includes (but not limited to) the construction of bungalows, semi-detached houses, condominiums and apartment units on the newly acquired land.
“The salient features of the development are a low-density exclusive guarded and gated-up housing development comprising bungalows, semi-detached houses, condominiums and low medium cost housing (as required by the local regulations) cum abundance of landscape and greenery,” it said.
BLand added that estimated GDV of the project was RM1.52bil, However, the total development cost and the source of funds for the development would only be ascertained once the development plans were finalised. The property development is expected to be developed over five years.
Prime land: Tan says the development on the 57-acre site will not affect the turf club horse-racing activities.
Upon the execution of the sale and purchase agreement, BLand has to pay a deposit of RM20mil to Penang Turf Club while the balance of the deposit of RM25.9mil to be paid within 14 days after obtaing the planning approval. Subsequently, BLand will make the first payment of RM137.7mil within 12 months from unconditional date of the sales and purchase agreement while second payment to be paid within 12 months after the first payment followed by a third payment at a 12 months interval from the second.
BLand said the purchase price at about RM8.01mil per acre or RM184 per square feet.
“The purchase price will be funded through the internally generated funds of the BLand group and borrowings. The actual mix will be decided at later stage after taking into consideration the BLand group's gearing, interest costs and other working capital requirements,” it said.
Meanwhile, Bernama quoted Berjaya Corp Bhd founder Tan Sri Vincent Tan as saying: “We've won the bid to buy 57 acres of land and we're now planning to develop the land into an exclusive residential area comprising bungalows, semi-detached houses and low-rise condominium.”
Given the strong demand for high-end landed properties in Penang, Tan hoped the exclusive homes could further boost value of suburban housing in the area.
“In fact, at first, I wondered whether we've overpaid the price for the land, but we believe in the long term, it will turn out to be a good investment. We're confident that with Berjaya's commitment, this property will be developed into an important residential landmark in Penang,” he said.
Tan said Berjaya established its first property and hotel development in Penang in mid-1990s. “We're happy to be back here again and to be associated with an established and reputable name like Penang Turf Club,” he said.
He said development of the 57 acres would not affect the turf club horse-racing activities which would be held on the newly repaired and rejuvenated main racing track.
Tan also said BLand was looking for other strategic and attractive places in Penang for investment.
In 2004, BLand has won the bid to relocate the Selangor Turf Club in Sungei Besi for RM640mil, and in return BLand gets the club's land in Sungai Besi and plans to carry out a mixed development project valued at RM6.3bil.
By TheStar
Wednesday, 3 August 2011
THE LIGHT Waterfront Penang
THE LIGHT Waterfront Penang
Designed as Penang’s first integrated leisure, retail and cultural destination within an upmarket and luxurious waterfront enclave, THE LIGHT Waterfront Penang promises a totally new experience for its residents and visitors.
Location
Located along the eastern coastline of Penang island, the project is easily accessible via Lebuhraya Tun Dr Lim Chong Eu. This exclusive development is also ideally located beside the Penang Bridge.
It is a mere 15 minutes drive to Penang Free Trade Zone and Penang International Airport, 10 minutes to George Town and 15 to 20 minutes to mainland Penang via the Penang Bridge.
PHASE II consists of shopping malls, waterfront alfresco dining, hotels, Cultural & Performing Arts Centre, marina, corporate gallery offices with office naming rights, grade A offices, a high tech business park and an IT Precinct which consists of an IT Mall, IT offices and IT incubators.
Built-up area
THE LIGHT Residential, featured under PHASE I, is a semi-furnished development with tastefully done fittings. It consists of six projects as follows:
THE LIGHT LINEAR comes with inverter air condition units, water heaters for all bathrooms and a centralised water filtration system while THE LIGHT COLLECTION (THE LIGHT POINT, THE LIGHT COLLECTION I, II, III & IV) come complete with fittings such as kitchen cabinets with hood, hob & oven, centralised vacuum system, inverter air condition units, water heater for all bathrooms and a centralised water filtration system.
The indicative price starts from as low as RM639,800.
Facilities and amenities
THE LIGHT LINEAR offers a comprehensive range of special amenities and facilities to suit a luxurious lifestyle, including a swimming pool, wading pool, jacuzzi, tennis court, gymnasium, games room and study area. Other facilities include a sky lounge, putting green, reflexology path, jogging and cycling path, and a children’s playground.
For those who enjoy entertaining guests, there’s a BBQ area and community hall to cater to various functions and events.
Facilities for THE LIGHT COLLECTION (THE LIGHT POINT, THE LIGHT COLLECTION I, II, III & IV) comprise of 8 swimming pools, 5 gymnasiums, marina facilities, tennis and squash courts, basketball court, children’s pool, and sauna and steam bath.
Additionally, it also has games room, kid’s play room, children’s playground, coral waterways, reading rooms, multi-purpose halls, sky lounge and a linear park.
Launch
The soft launch for THE LIGHT LINEAR was held in August 2009. Approximately 80% of the units were sold within the first two days of launch. THE LIGHT POINT saw over 65% of the units sold within the first few hours of its soft launch in December 2009 .
Launched in May 2010, THE LIGHT COLLECTION I which consists of 24 units of Water Villas was the talk of the property market in Penang. So far, 65% of the units have been sold.
The most recently launched project is THE LIGHT COLLECTION II. The uniqueness of the Pier Apartments was a hit with buyers. Within the first day of soft launch in December last year, 60% sales was achieved.
THE LIGHT COLLETION III is scheduled for soft launch in August this year while THE LIGHT COLLECTION IV is scheduled for soft launch in early 2012.
The first series of residences is targeted for completion in the third quarter of 2012, and the rest will be staggered for completion every six months after that. The last phase featuring THE LIGHT COLLECTION IV will be ready in early 2015.
There will be a 5% rebate for Bumiputra purchasers.
The Developer
The RM6.5bil project is undertaken by Jelutong Development Sdn Bhd - a subsidiary of IJM Properties Sdn Bhd. THE LIGHT represents IJM’s pioneering challenge to showcase the biggest and the best integrated waterfront living, with residential, recreational, entertainment, business, hospitality, education and commercial components all in one dynamic hub.
IJM Land Bhd is the listed property development arm of IJM Corp Bhd. It is a product of a merger between IJM Properties and RB Land, and now stands as one of Malaysia’s leading property developers with a presence in prominent locations in Penang, Klang Valley, Negeri Sembilan, Melaka, Johor, Sarawak and Sabah. IJM Land is a reputable developer of a wide range of property products including integrated developments, townships, residential projects, offices, retail and recreational facilities.
--------------------------------------------------------------------------------
Developer Information :
Jelutong Development Sdn Bhd ( a subsidiary of IJM Properties Sdn Bhd)
THE LIGHT Sales Gallery
16-01, Menara IJM Land,
1, Lebuh Tunku Kudin 3,
11700, Gelugor,
Penang, Malaysia.
Tel: +604 - 2961 333
Email: tansh@ijm.com
Website: http://www.thelightwaterfront.com/
Disclaimers:
All information contained in this website are subject to change by the property developer and/or amendments as required by the relevant authorities without prior notice and cannot form part of an offer or contract. While every reasonable care has been taken in providing the said information, this website or the property developer cannot be held responsible for any inaccuracies. All illustration are artist's impression only. Please contact the property developer for more details.
By http://www.starproperty.my/
Foreign firms keen to build major roads in Penang
INTERNATIONAL contractors from several countries have indicated that they are interested to build four proposed major road projects in Penang.
Chief Minister Lim Guan Eng said the contractors were from China, Singapore, Hong Kong, Japan and Korea.
He said the state government would invite those interested to bid for the projects via request for proposals (RFP) at the end of the year.
“The RFP will be out at the end of the year. It will take another six months before the contracts can be awarded to the successful bidders,” Lim said in an interview on Friday.
He said the time was needed for the state to evaluate the bids and for the bidders to conduct feasibility studies for the projects.
The proposed projects are the 4.2km Gurney Drive-Lebuhraya Tun Dr Lim Chong Eu by-pass, the 4.6km Lebuhraya Tun Dr Lim Chong Eu-Bandar Baru Air Itam bypass, the 6.5km Penang-Butterworth Tunnel, and a 12km proposed road connecting Tanjung Bungah and Teluk Bahang.
The Beijing Urban Construction Group (BUCG) is now carrying out a study for the 6.5km Penang-Butterworth Tunnel project that will connect Gurney Drive on Penang island and Bagan Ajam in north Seberang Prai.
Lim has said earlier that BUCG had stated that they had secured RM10bil in funds should the project move forward.
The Penang-Butterworth Tunnel project stemmed from a memorandum of understanding between BUCG and the state government signed in Putrajaya in April.
It was one of eight agreements signed between Malaysia and China in the presence of Prime Minister Datuk Seri Najib Tun Razak and Chinese premier Wen Jiabao.
Lim had earlier also said that while the state welcomed all proposals, the project would be awarded by open tender.
BUCG is an established state-owned company in China whose projects included the Bird’s Nest Olympic Stadium in Beijing.
By TheStar
Chief Minister Lim Guan Eng said the contractors were from China, Singapore, Hong Kong, Japan and Korea.
He said the state government would invite those interested to bid for the projects via request for proposals (RFP) at the end of the year.
“The RFP will be out at the end of the year. It will take another six months before the contracts can be awarded to the successful bidders,” Lim said in an interview on Friday.
He said the time was needed for the state to evaluate the bids and for the bidders to conduct feasibility studies for the projects.
The proposed projects are the 4.2km Gurney Drive-Lebuhraya Tun Dr Lim Chong Eu by-pass, the 4.6km Lebuhraya Tun Dr Lim Chong Eu-Bandar Baru Air Itam bypass, the 6.5km Penang-Butterworth Tunnel, and a 12km proposed road connecting Tanjung Bungah and Teluk Bahang.
The Beijing Urban Construction Group (BUCG) is now carrying out a study for the 6.5km Penang-Butterworth Tunnel project that will connect Gurney Drive on Penang island and Bagan Ajam in north Seberang Prai.
Lim has said earlier that BUCG had stated that they had secured RM10bil in funds should the project move forward.
The Penang-Butterworth Tunnel project stemmed from a memorandum of understanding between BUCG and the state government signed in Putrajaya in April.
It was one of eight agreements signed between Malaysia and China in the presence of Prime Minister Datuk Seri Najib Tun Razak and Chinese premier Wen Jiabao.
Lim had earlier also said that while the state welcomed all proposals, the project would be awarded by open tender.
BUCG is an established state-owned company in China whose projects included the Bird’s Nest Olympic Stadium in Beijing.
By TheStar
Tuesday, 2 August 2011
'Property bubble burst unlikely in Malaysia'
A property bubble burst is unlikely to happen in the Asia Pacific, including Malaysia, as there are no signs to indicate such a trend in the next two years, says AmInvestment Bank Group.
Director for Retail Funds Ng Chze How said real estate investment trusts (REITS) would also not experience a burst including those acquired by the group.
"I don't see a burst or a crash in the property market. "You have high wages, ample liquidity, small percentage of non-performing loans and these plus steps taken by the government to prevent the economy from
overheating, augur well for the property market.
"I don't see a property burst (happening) in the next six months, one year or two years down the line," he told reporters at the launch of Malaysia's first
Asia Pacific REITs fund, AmAsia Pacific REITs, here today.
He said with these factors in place coupled with an economic recovery, there
would be more upside in the market. AmAsia Pacific REITs invests in a diversified portfolio of REITs listed in the Asia Pacific region.
Ng was optimistic the REITS selected by the group would see high occupancy
rate and increasing rental.
"Selected Asian properties have yet to reach their previous peak, as such,
there is room for potential growth," he said, adding that properties were seen
as a good hedge during the current inflationary period. -- Bernama
By Business Times
Director for Retail Funds Ng Chze How said real estate investment trusts (REITS) would also not experience a burst including those acquired by the group.
"I don't see a burst or a crash in the property market. "You have high wages, ample liquidity, small percentage of non-performing loans and these plus steps taken by the government to prevent the economy from
overheating, augur well for the property market.
"I don't see a property burst (happening) in the next six months, one year or two years down the line," he told reporters at the launch of Malaysia's first
Asia Pacific REITs fund, AmAsia Pacific REITs, here today.
He said with these factors in place coupled with an economic recovery, there
would be more upside in the market. AmAsia Pacific REITs invests in a diversified portfolio of REITs listed in the Asia Pacific region.
Ng was optimistic the REITS selected by the group would see high occupancy
rate and increasing rental.
"Selected Asian properties have yet to reach their previous peak, as such,
there is room for potential growth," he said, adding that properties were seen
as a good hedge during the current inflationary period. -- Bernama
By Business Times
Property bubble building up but still at the comfortable level
KUALA LUMPUR: There is a property bubble building up in Malaysia and the region but it is nowhere near alarming levels as the main indicators are still at comfortable levels, AmInvestment Bank Group said.
"As an investor, I love bubbles because that's where the money is. At this juncture, I see a small bubble in the property market, it's no where near big yet and I'm not seeing any property bubble bursting soon," AmInvestment Bank Group director of retail funds Ng Chze How said.
"For that to take place, I think you need to see a few factors taking place. Firstly, you need to see very high overall borrowings and leveraging, which is currently not happening. Secondly, is to look at the non-performing loans (NPLs). Across this region, the NPLs are still very healthy. Thirdly, you need to look at the liquidity in the market. There's so much liquidity, so much cash sitting in the system."
Ng was speaking to the media after the launch of the country's first Asia Pacific REITs unit trust fund by AmMutual here yesterday.
The unit trust funds will be solely investing in REITs in Asia.
For a start, it is looking at Australia, Hong Kong, Singapore, besides a minimal exposure in Malaysia. The fund will be managed by Funds Management Division (FMD) of AmInvestment Bank Group.
"When we are creating this fund, we want it to be riskier than bonds but safer than equities. This fund does that. It offers investors opportunities to diversify away from stocks and bonds and thus, reducing investors' overall portfolio risks," said FMD chief executive officer Datin Maznah Mahbob.
She added that investors will receive high dividend yields from investing in REITs as the fund is structured to distribute a high percentage of its profit to shareholders.
Over the past five years, the performance of REITs in Asia had outperformed global REITs by more than three times. During the period, REITs in Asia grew 46.2 per cent, while REITs globally grew 14.4 per cent.
"We are comfortable with Asian properties, in line with the region's continued growth, which will lead to an increasing demand for commercial occupancy rates in Asia, which are averaging to above 90 per cent.
"For certain countries in Asia Pacific, we are seeing an uptrend in rental rates for both offices and the retail sector, which will bode well for unitholders of REITs as this translates to higher income distribution," said Andrew Wong, chief investment officer of equity, asset allocation, and fund management.
The approved fund size is 200 million units with an initial offer price of 50 sen per unit. The initial offer period ends this Sunday, and its minimum investment being RM1,000 for Malaysian residents and the minimum additional investment for Malaysian residents is RM500.
The fund is distributed by all AmBank branches, AmBank Agency sales force, AmPriority Banking, AmPrivate Banking and Hong Leong Bank.
By Business Times
"As an investor, I love bubbles because that's where the money is. At this juncture, I see a small bubble in the property market, it's no where near big yet and I'm not seeing any property bubble bursting soon," AmInvestment Bank Group director of retail funds Ng Chze How said.
"For that to take place, I think you need to see a few factors taking place. Firstly, you need to see very high overall borrowings and leveraging, which is currently not happening. Secondly, is to look at the non-performing loans (NPLs). Across this region, the NPLs are still very healthy. Thirdly, you need to look at the liquidity in the market. There's so much liquidity, so much cash sitting in the system."
Ng was speaking to the media after the launch of the country's first Asia Pacific REITs unit trust fund by AmMutual here yesterday.
The unit trust funds will be solely investing in REITs in Asia.
For a start, it is looking at Australia, Hong Kong, Singapore, besides a minimal exposure in Malaysia. The fund will be managed by Funds Management Division (FMD) of AmInvestment Bank Group.
"When we are creating this fund, we want it to be riskier than bonds but safer than equities. This fund does that. It offers investors opportunities to diversify away from stocks and bonds and thus, reducing investors' overall portfolio risks," said FMD chief executive officer Datin Maznah Mahbob.
She added that investors will receive high dividend yields from investing in REITs as the fund is structured to distribute a high percentage of its profit to shareholders.
Over the past five years, the performance of REITs in Asia had outperformed global REITs by more than three times. During the period, REITs in Asia grew 46.2 per cent, while REITs globally grew 14.4 per cent.
"We are comfortable with Asian properties, in line with the region's continued growth, which will lead to an increasing demand for commercial occupancy rates in Asia, which are averaging to above 90 per cent.
"For certain countries in Asia Pacific, we are seeing an uptrend in rental rates for both offices and the retail sector, which will bode well for unitholders of REITs as this translates to higher income distribution," said Andrew Wong, chief investment officer of equity, asset allocation, and fund management.
The approved fund size is 200 million units with an initial offer price of 50 sen per unit. The initial offer period ends this Sunday, and its minimum investment being RM1,000 for Malaysian residents and the minimum additional investment for Malaysian residents is RM500.
The fund is distributed by all AmBank branches, AmBank Agency sales force, AmPriority Banking, AmPrivate Banking and Hong Leong Bank.
By Business Times
Monday, 25 July 2011
Ivory wins Bayan Mutiara project
GEORGE TOWN: Ivory Properties Group Berhad will develop the Bayan Mutiara mixed development project tendered out by the Penang Development Corp (PDC).
In a press release, its board of directors announced that the group had received and accepted the letter of acceptance from PDC on July 25.
“We received the letter for the proposal for purchase and development of 102.56 acres of land located in Bayan Mutiara of which 67.56acres are existing land and 35 acres are to be reclaimed for a proposed mixed development.
“The proposed project shall be subjected to the terms and conditions to be mutually agreed upon between the parties in an agreement to be entered into at a later date. Ivory will undertake to make the necessary announcements in due course.
“None of the directors or substantial shareholders of Ivory or persons connected with them has any interest, whether direct or indirect in the proposed project,” the statement said.
It was earlier reported that Ivory and SP Setia Bhd were bidding for the Bayan Mutiara mixed-development project via a request for proposal, which set the reserved price at about RM200 per sq ft.
Ivory won the project as it had submitted a higher bid to develop the site.
In a recent talk at the ninth Star Property Fair 2011, investPenang executive committee chairman Datuk Lee Kah Choon said the Bayan Mutiara mixed-development project would see the building of offices, special medical facilities, commercial blocks, residential enclaves, retail and public spaces.
In a press release, its board of directors announced that the group had received and accepted the letter of acceptance from PDC on July 25.
“We received the letter for the proposal for purchase and development of 102.56 acres of land located in Bayan Mutiara of which 67.56acres are existing land and 35 acres are to be reclaimed for a proposed mixed development.
“The proposed project shall be subjected to the terms and conditions to be mutually agreed upon between the parties in an agreement to be entered into at a later date. Ivory will undertake to make the necessary announcements in due course.
“None of the directors or substantial shareholders of Ivory or persons connected with them has any interest, whether direct or indirect in the proposed project,” the statement said.
It was earlier reported that Ivory and SP Setia Bhd were bidding for the Bayan Mutiara mixed-development project via a request for proposal, which set the reserved price at about RM200 per sq ft.
Ivory won the project as it had submitted a higher bid to develop the site.
In a recent talk at the ninth Star Property Fair 2011, investPenang executive committee chairman Datuk Lee Kah Choon said the Bayan Mutiara mixed-development project would see the building of offices, special medical facilities, commercial blocks, residential enclaves, retail and public spaces.
A rousing success for ninth year
EXHIBITORS at the Star Property Fair 2011 in Penang enjoyed good response to their projects over the four-day event held at Level 2 of G Hotel and the ground floor of Gurney Plaza.
Ivory Properties Group Bhd assistant manager (corporate property) Michael Wong said they had a lot of enquiries over the first two days and began closing sales on the third day.
At press time yesterday, he said the company recorded about RM7.2mil in sales of its Moonlight Bay, The Peak Residences and Island Resort, and received enquiries and registration for The Latitude.
IJM Land Bhd senior sales and marketing manager Patsy Lee said the crowd was good and the company enjoyed good response at its booth over the four days.
“We have sold RM17mil of our Pearl Regency project and are also collecting registration for our other projects such as The Address and Permatang Sanctuary,” she said.
Eye-catching design: Visitors checking out a project of Mah Sing Group Berhad at G Hotel in Penang during the Star Propoerty Fair 2011
Belleview Group senior manager (sales administration) Anne Lee said the response was very encouraging and they received hundreds of enquiries, especially for their Winter Tower at All Seasons Park and three-storey terrace houses at Bukit Dumbar Residences.
“Many also went to check out our sales gallery after making enquiries at our booth,” she said, adding that they closed sales on the spot for the two projects by receiving booking fees.
The ninth Star Property Fair 2011, which ended yesterday, was touted as Penang’s premier property expo.
Organised by The Star in collaboration with Henry Butcher Malaysia (Penang) Sdn Bhd, the fair, in its ninth edition, featured 36 exhibitors.
Among them were DNP Land Sdn Bhd, Nusmetro Venture (Pg) Sdn Bhd, Sunway Grand Sdn Bhd, Mah Sing Group Bhd, MTT Properties and Development Sdn Bhd, Reka Indah Development (Pg) Sdn Bhd, Ideal Property Sdn Bhd, SP Setia and Boon Siew Group (BSG Property).
There were also Plenitude Heights Sdn Bhd, Triental Land Sdn Bhd, GD Development Sdn Bhd, Lone Pine Group of Companies, ResCom Asia Sdn Bhd, Capitawealth International Sdn Bhd, KPWG International Sdn Bhd, Tambun Indah Development Sdn Bhd, Bukit Kiara Properties Sdn Bhd, E&O Bhd and Jalin Realty.
Henry Butcher also featured projects by Magna Putih Sdn Bhd and several property in Australia and England by various developers.
While most people would love to have their own landed property, there are many others who opt for apartments. Among them was university lecturer Rosli Saad, 51, who was visiting the fair for the first time with his daughter Athirah, 12.
“We’re looking for an apartment on Penang island. I don’t like landed property. The main reason I prefer apartments is because there is better security, with only one entrance to the whole place. And it’s easier to maintain an apartment unit without having to worry about the compound and all that,” said Rosli.
Dr R. Sentil and Dr S. Karthik, both 27, were seen checking out the Meridien Residence project in Sungai Ara by Reka Indah Development (Pg) Sdn Bhd.
“We read about the fair and wanted to check it out. The property market in Penang is good and we are looking for either a place to stay or to invest in.
“Looking around, we find that some of the property have sold out,” said Dr Sentil.
Dr Karthik said he preferred to live further from town, “away from the hustle and bustle”, although he would probably have to brave the traffic jam to go home.
Many visitors also attended the various talks held over the duration of the fair. The talks were, among others, related to property, investment, financing, law, heritage and feng shui. There was also an exhibition of restored heritage buildings carried out by George Town World Heritage Inc.
A popular feature of the fair was the ‘Surf, Click & Win’ contest sponsored by IJM Land where visitors stood a chance to win prizes totalling RM30,000, including a 32” Samsung LCD television, Acer Iconia Tabs, Samsung Galaxy Tabs and Parkson vouchers daily.
Visitors also got to redeem mystery gifts, on a first-come-first-served basis, with cut-out coupons printed in The Star over the four days. Hong Leong Bank Bhd sponsored RM5,000 worth of mystery gifts.
By TheStar
Ivory Properties Group Bhd assistant manager (corporate property) Michael Wong said they had a lot of enquiries over the first two days and began closing sales on the third day.
At press time yesterday, he said the company recorded about RM7.2mil in sales of its Moonlight Bay, The Peak Residences and Island Resort, and received enquiries and registration for The Latitude.
IJM Land Bhd senior sales and marketing manager Patsy Lee said the crowd was good and the company enjoyed good response at its booth over the four days.
“We have sold RM17mil of our Pearl Regency project and are also collecting registration for our other projects such as The Address and Permatang Sanctuary,” she said.
Eye-catching design: Visitors checking out a project of Mah Sing Group Berhad at G Hotel in Penang during the Star Propoerty Fair 2011
Belleview Group senior manager (sales administration) Anne Lee said the response was very encouraging and they received hundreds of enquiries, especially for their Winter Tower at All Seasons Park and three-storey terrace houses at Bukit Dumbar Residences.
“Many also went to check out our sales gallery after making enquiries at our booth,” she said, adding that they closed sales on the spot for the two projects by receiving booking fees.
The ninth Star Property Fair 2011, which ended yesterday, was touted as Penang’s premier property expo.
Organised by The Star in collaboration with Henry Butcher Malaysia (Penang) Sdn Bhd, the fair, in its ninth edition, featured 36 exhibitors.
Among them were DNP Land Sdn Bhd, Nusmetro Venture (Pg) Sdn Bhd, Sunway Grand Sdn Bhd, Mah Sing Group Bhd, MTT Properties and Development Sdn Bhd, Reka Indah Development (Pg) Sdn Bhd, Ideal Property Sdn Bhd, SP Setia and Boon Siew Group (BSG Property).
There were also Plenitude Heights Sdn Bhd, Triental Land Sdn Bhd, GD Development Sdn Bhd, Lone Pine Group of Companies, ResCom Asia Sdn Bhd, Capitawealth International Sdn Bhd, KPWG International Sdn Bhd, Tambun Indah Development Sdn Bhd, Bukit Kiara Properties Sdn Bhd, E&O Bhd and Jalin Realty.
Henry Butcher also featured projects by Magna Putih Sdn Bhd and several property in Australia and England by various developers.
While most people would love to have their own landed property, there are many others who opt for apartments. Among them was university lecturer Rosli Saad, 51, who was visiting the fair for the first time with his daughter Athirah, 12.
“We’re looking for an apartment on Penang island. I don’t like landed property. The main reason I prefer apartments is because there is better security, with only one entrance to the whole place. And it’s easier to maintain an apartment unit without having to worry about the compound and all that,” said Rosli.
Dr R. Sentil and Dr S. Karthik, both 27, were seen checking out the Meridien Residence project in Sungai Ara by Reka Indah Development (Pg) Sdn Bhd.
“We read about the fair and wanted to check it out. The property market in Penang is good and we are looking for either a place to stay or to invest in.
“Looking around, we find that some of the property have sold out,” said Dr Sentil.
Dr Karthik said he preferred to live further from town, “away from the hustle and bustle”, although he would probably have to brave the traffic jam to go home.
Many visitors also attended the various talks held over the duration of the fair. The talks were, among others, related to property, investment, financing, law, heritage and feng shui. There was also an exhibition of restored heritage buildings carried out by George Town World Heritage Inc.
A popular feature of the fair was the ‘Surf, Click & Win’ contest sponsored by IJM Land where visitors stood a chance to win prizes totalling RM30,000, including a 32” Samsung LCD television, Acer Iconia Tabs, Samsung Galaxy Tabs and Parkson vouchers daily.
Visitors also got to redeem mystery gifts, on a first-come-first-served basis, with cut-out coupons printed in The Star over the four days. Hong Leong Bank Bhd sponsored RM5,000 worth of mystery gifts.
By TheStar
Two Hot Areas In Penang
BAYAN Lepas and Batu Maung in Penang’s southwest district and Batu Kawan in the south Seberang Prai district will be the new corridors of growth to boost the state’s development, said investPenang executive committee chairman Datuk Lee Kah Choon.
He said projects coming up at these places were the RM300mil Subterranean Penang International Convention and Exhibition Centre (sPICE), the Bayan Mutiara mixed-development project and Batu Kawan’s planned development as an integrated city.
“sPICE, under a public-private partnership agreement with SP Setia Bhd, will have a Penang People’s Park that includes the country’s first subterranean convention and exhibition centre,” he said in his talk titled ‘Live Market Update — What is the future for Penang’ at the Star Property Fair 2011.
“There will also be a seven-acre public park on the rooftop, a refurbished Penang International Sports Arena, an aquatic centre and a four-star hotel with retail outlets.
“The project is scheduled for completion by 2014.”
Big plans for the state: The audience listening to Lee during his talk on the future development of Penang
“The Bayan Mutiara mixed-development project on a 40ha site will see the creation of presti-gious offices, special medical fa- cilities, commercial blocks, resi-dential enclaves, and retail and public spaces meeting contemporary and iconic global standards,” Lee said.
He said the planned development of Batu Kawan included the next Penang industrial park.
“The plan is to turn Batu Kawan into an integrated city with residential, commercial and business zones incorporating education, leisure and medical facilities.
“These developments will create new jobs and spillover economic effects,” he said.
Lee also said recent investments by Bosch Solar Energy, Aviatron and Ibiden would generate new jobs for small-medium vendors in Penang.
“Last month, Bosch announced a RM2.2b investment in a crystalline solar cells plant in Batu Kawan.
“Aviatron and Ibiden announced their investments in avionics components and a printed circuit board facility respectively in April,” he said.
By TheStar
He said projects coming up at these places were the RM300mil Subterranean Penang International Convention and Exhibition Centre (sPICE), the Bayan Mutiara mixed-development project and Batu Kawan’s planned development as an integrated city.
“sPICE, under a public-private partnership agreement with SP Setia Bhd, will have a Penang People’s Park that includes the country’s first subterranean convention and exhibition centre,” he said in his talk titled ‘Live Market Update — What is the future for Penang’ at the Star Property Fair 2011.
“There will also be a seven-acre public park on the rooftop, a refurbished Penang International Sports Arena, an aquatic centre and a four-star hotel with retail outlets.
“The project is scheduled for completion by 2014.”
Big plans for the state: The audience listening to Lee during his talk on the future development of Penang
“The Bayan Mutiara mixed-development project on a 40ha site will see the creation of presti-gious offices, special medical fa- cilities, commercial blocks, resi-dential enclaves, and retail and public spaces meeting contemporary and iconic global standards,” Lee said.
He said the planned development of Batu Kawan included the next Penang industrial park.
“The plan is to turn Batu Kawan into an integrated city with residential, commercial and business zones incorporating education, leisure and medical facilities.
“These developments will create new jobs and spillover economic effects,” he said.
Lee also said recent investments by Bosch Solar Energy, Aviatron and Ibiden would generate new jobs for small-medium vendors in Penang.
“Last month, Bosch announced a RM2.2b investment in a crystalline solar cells plant in Batu Kawan.
“Aviatron and Ibiden announced their investments in avionics components and a printed circuit board facility respectively in April,” he said.
By TheStar
Great Demand For Penang Landed Homes
LANDED homes in Penang are still in great demand despite their high prices.
SP Setia Bhd’s sales and marketing executive Eunice Lee said many people were eyeing landed property due to expected limited and costlier supply in future.“We have sales every day for our Setia Greens and Setia Pearl Island projects comprising terrace and semi-detached and villa units,” she said.
She said the number of visitors to the fair had been “fantastic”, especially during the weekend.
BSG Property’s sales and marketing executive Chong Hock Aun said the company was getting more enquiries on the landed segment as visitors felt that such pro- perty were likely to be more expensive if they did not buy them now.
Strategically located: Lee (left) showing B.C Lok, his wife and daughter the units of a project available at the SP Setia booth
Chong said there seemed to be more young couples who visited the fair during the weekend while older folk were the bigger crowd on the first two days.
Ideal Homes Properties Sdn Bhd sales and marketing manager Teh Yeow Jin said many visitors preferred landed property but their prices were generally out of reach.
“Take for example a landed property in Batu Maung. It could easily cost between RM700,000 and RM800,000,” he said.
The fair was an eye-opening experience for the director of Australian real estate agent Uniq Property, a first-time exhibitor at the event.
“We received enquiries from some 200 qualified buyers throughout the event for all four apartment projects in Melbourne showcased by us. Many of them had children studying in Australia or holders of permanent residence status there,” said Veki Brdjanin, adding that they sold two units of apartments.
By TheStar
SP Setia Bhd’s sales and marketing executive Eunice Lee said many people were eyeing landed property due to expected limited and costlier supply in future.“We have sales every day for our Setia Greens and Setia Pearl Island projects comprising terrace and semi-detached and villa units,” she said.
She said the number of visitors to the fair had been “fantastic”, especially during the weekend.
BSG Property’s sales and marketing executive Chong Hock Aun said the company was getting more enquiries on the landed segment as visitors felt that such pro- perty were likely to be more expensive if they did not buy them now.
Strategically located: Lee (left) showing B.C Lok, his wife and daughter the units of a project available at the SP Setia booth
Chong said there seemed to be more young couples who visited the fair during the weekend while older folk were the bigger crowd on the first two days.
Ideal Homes Properties Sdn Bhd sales and marketing manager Teh Yeow Jin said many visitors preferred landed property but their prices were generally out of reach.
“Take for example a landed property in Batu Maung. It could easily cost between RM700,000 and RM800,000,” he said.
The fair was an eye-opening experience for the director of Australian real estate agent Uniq Property, a first-time exhibitor at the event.
“We received enquiries from some 200 qualified buyers throughout the event for all four apartment projects in Melbourne showcased by us. Many of them had children studying in Australia or holders of permanent residence status there,” said Veki Brdjanin, adding that they sold two units of apartments.
By TheStar
Tuesday, 19 July 2011
Set for value appreciation
Cool design: An artist's impression of Permatang Sanctuary in Bukit Mertajam, one of IJM's projects.
FUTURE residents of the Pearl Regency Condominium can look forward to a luxurious and cosmopolitan sky-high lifestyle when IJM Land Bhd’s iconic development at the MetroEast Udini is completed at the end of 2013.
Located on a 2.78-acre parcel of land and a stone’s throw away from Tesco and e-Gate along the coastal highway, the 35-storey freehold mixed-development project comprises residential and commercial components with a gross sales value of RM244mil.
Its residential units, in 10 different layouts ranging in size from 1,313sq ft to 2,131sq ft and priced between RM734,000 and RM1.4mil, have been well received thus far. Currently, only limited units are still available.
According to IJM Land northern region general manager Toh Chin Leong, 15% of those already taken up are from foreign buyers, testament to the project’s centralised location, innovative design and luxurious finishing.
A gem: Toh showing off a model of the company's Pearl Regency Condominium.
“For today’s lifestyle, people also like to live close to amenities such as supermarkets, F&B and retail outlets, and our location makes it very convenient for them.
“Most places on Penang island are also within easy reach, while the Penang Bridge and the mainland is also nearby,” he said.
All units come semi-furnished with quality fittings — from air- conditioners to kitchen cabinets, ovens, refrigerators, gas hob and hoods, water heaters and wardrobes — that saves residents the headache of hunting for furniture later on.
A comprehensive set of facilities ensures that residents will always have a haven where they can return to. These include a swimming pool, Jacuzzi and pool bar, children’s playground, barbeque pit, gymnasium, reflexology path, putting greens, games room, reading room and community hall.
One is also in touch with nature, with a maze and sky gardens adding a touch of lush greenery. Otherwise, one can simply admire gorgeous panoramas of the channel from the viewing deck.
“On top of that, units have unobstructed views of the sea,” Toh added.
Toh believes that with their nearby The Light waterfront development poised to be a small city in itself and change the entire skyline, it will have positive knock-on effects for the entire area, especially in terms of value appreciation.
“For most of our projects, from the day they’re launched till the day we hand over the keys, we’ve seen appreciation of easily between 30% and 50%.
“Together with our excellent after sales service, buyers have great confidence in our projects,” he said.
As land on the island is scarce and prices of materials on an upwardly trend, in addition to Penang become more well-known internationally, he is optimistic about market prospects and advises prospective home owners to take the plunge once they’ve found something that fits their budget and location needs.
Patsy Lee, the senior manager of sales and marketing, added that specially for the four-day Star Property Fair, the company is offering zero-interest during construction, and free legal fees on sales and purchase agreement and loan. Buyers also get a free utility room averaging 40sq ft, located at the basement, for convenient storage purposes.
Also, the commercial component of Pearl Regency is set to be launched in the fourth quarter of the year, with a GSV of RM80mil. It comprises 76 lots ranging in size from 377sq ft to 2,852sq ft and priced from RM310,000 to RM2.2mil.
Upcoming projects targeted to launch by year-end are The Address at Bukit Jambul comprising low density Boutique Condos and four-storey Duplex Loft, and Permatang Sanctuary at Bukit Mertajam, a 131-acre township, with seven phases and four themed parks.
IJM Land is also sponsoring RM30,000 worth of prizes for the ‘Surf, Click & Win’ contest at the Star Property Fair.
Touted as Penang’s premier property expo, the fair’s ninth edition will be held at Gurney Plaza and the adjoining G Hotel from July 21 to 24.
To date, 28 major developers — representing almost all the big boys in the industry — along with several financial institutions, have taken up booths in the fair.
The fair, to be open to the public from 10am to 10pm daily, is organised by The Star in collaboration with Henry Butcher Malaysia (Penang) Sdn Bhd. Admission is free.
By TheStar
Monday, 11 July 2011
THE 24km-long second Penang bridge is 54% completed
THE 24km-long second Penang bridge is 54% completed and it is on track to be completed by Nov, 2013, said former Prime Minister Tun Abdullah Ahmad Badawi.
He said this assurance was given by the host of contractors involved in constructing the super structure linking Batu Maung on the island to Batu Kawan in Seberang Prai.
Abdullah also said that the project would also incorporate a uniquely designed technology known as High Damping Rubber Bearing (HDRB).
The RM4.5bil project is the first to use the HDRB technology which is designed to withstand the effects of earthquakes.
Super structure: Abdullah on a boat passing under the half-completed second Bridge at Batu Maung on the island “HDRB is an innovative tool to protect not only the structure but also the materials and contents inside the structure,” Abdullah said.
“This feature is useful for critical structures as it can stand the test of time.
“I an also proud that the HRDB is designed by a Malaysian and like all Penangites, I am eagerly awaiting the completion of the bridge.
Project on track: Part of the ongoing construction work at the second Penang bridge linking Batu Maung on Penang Island to Batu Kawan in Seberang Perai “The bridge will definitely be breathtaking,” he said.
He was speaking after attending a briefing session on the bridge’s progress work at the China Harbour Engineering Co Ltd (CHEC) (M) Sdn Bhd office in Batu Maung yes-terday.
Present was Jambatan Kedua Sdn Bhd managing director Datuk Dr Ismail Mohamed Taib.
Abdullah also expressed satisfaction with the progress of the construction which comprised five packages. including the RM2.2bil substructure by China-based CHEC and the RM1.5bil superstructure by Malaysia’s own UEM Builders Bhd.
The three main contractors for overland connections are Cergas Murni Sdn Bhd (for the RM67mil Batu Maung link), IJM Corp Bhd (RM350mil Batu Kawan link) and HRA Teguh Sdn Bhd (RM152mil link to North-South Highway).
The bridge is set to be the longest in South-East Asia
By The Star
He said this assurance was given by the host of contractors involved in constructing the super structure linking Batu Maung on the island to Batu Kawan in Seberang Prai.
Abdullah also said that the project would also incorporate a uniquely designed technology known as High Damping Rubber Bearing (HDRB).
The RM4.5bil project is the first to use the HDRB technology which is designed to withstand the effects of earthquakes.
Super structure: Abdullah on a boat passing under the half-completed second Bridge at Batu Maung on the island “This feature is useful for critical structures as it can stand the test of time.
“I an also proud that the HRDB is designed by a Malaysian and like all Penangites, I am eagerly awaiting the completion of the bridge.
Project on track: Part of the ongoing construction work at the second Penang bridge linking Batu Maung on Penang Island to Batu Kawan in Seberang Perai He was speaking after attending a briefing session on the bridge’s progress work at the China Harbour Engineering Co Ltd (CHEC) (M) Sdn Bhd office in Batu Maung yes-terday.
Present was Jambatan Kedua Sdn Bhd managing director Datuk Dr Ismail Mohamed Taib.
Abdullah also expressed satisfaction with the progress of the construction which comprised five packages. including the RM2.2bil substructure by China-based CHEC and the RM1.5bil superstructure by Malaysia’s own UEM Builders Bhd.
The three main contractors for overland connections are Cergas Murni Sdn Bhd (for the RM67mil Batu Maung link), IJM Corp Bhd (RM350mil Batu Kawan link) and HRA Teguh Sdn Bhd (RM152mil link to North-South Highway).
The bridge is set to be the longest in South-East Asia
By The Star
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