Hatten property showcase (Aug 10-12)

By Ahmad Azrai of theedgeproperty.com Wednesday, 08 August 2012 12:28

Event: Hatten Group will be having two showcases, in both Kuala Lumpur and Melaka, to highlight its developments as well as launch its latest project, Terminal Pahlawan Melaka. Date: Friday to Sunday (Aug 10-12) Time: 10am-7pm Venue: The Boulevard, Mid Valley City, KL; Hatten Square, Jln Merdeka, Bandar Hilir, Melaka Contact: 012-719 1818; 017-888 3213

No property bubble in Malaysia, says Sunway

Despite the many issues plaguing Malaysia’s property industry, the sector is stable and is not heading towards a property bubble, according to Tan Sri Jeffrey Cheah (pictured), Chairman of Asian Strategy & Leadership Institute and Sunway Bhd.

“As a developer I’m convinced as of now that we shall not be experiencing any such property bubble, as our property prices are still affordable compared with some of our neighbouring cities in the region,” said Cheah at the 15th National Housing and Property Summit.

As proof, he cited Bank Negara Malaysia’s gross domestic product (GDP) data for Q2 2012, which showed a 5.4 percent year-on-year growth, indicating that private consumption remained stable despite external challenges. At the same time, the construction industry, which includes civil infrastructure and housing, surged 22 percent.

Cheah also explained that home prices are not driven up by the rise in property purchase among foreigners, since transactions by expatriates had historically hovered at three percent compared with 20 percent in Singapore.

Moreover, 54 percent of their total residential transactions last year were below the RM150,000 level.

Moreover, he pointed out that one of the challenges faced by the construction sector is the lack of skilled workers, which leads to project interruptions. To tackle this problem, the Construction Industry Development Board should continue to talk with non-governmental organisations and industry players.

Aside from that, he urges the government not to implement any “drastic measures” to cool the real estate market because this “can kill market sentiment and slow supply of housing further.”

EPF finalises land purchase for RM2.28 billion

By Bernama Monday, 27 August 2012 15:19

KUALA LUMPUR: Kwasa Land Sdn Bhd, a wholly-owned subsidiary of the Employees Provident Fund EPF), has finalised the purchase price at RM2.28 billion for 93.2 hectares (2,330 acres) of prime Rubber Research Institute (RRI) land in Sungai Buloh. Kwasa Land Chairman Tan Sri Samsudin Osman said the new Kwasa Damansara township development would incorporate plans that are befitting of a city, replete with infrastructure and modern facilities, both residential and commercial that aim to serve the entire Damansara area, if not the Klang Valley. The proposed township development is expected to create abundant opportunities for developers and contractors to participate in developing residential and commercial properties, main infrastructures and public amenities for an expected 150,000 population. "The development planning is now in an advanced stage, with the iconic township development expected to commence next year," he said. Kwasa Land has established itself as a master developer and as an investment holding company for the entire development of the township that has been given a 15-year construction lifespan. Among key features in the design and layout plans are a development hub comprising modern residential, commercial, recreation and education facilities. It will also incorporate an integrated transportation system that links the township via Mass Rail Transit (MRT) to the rest of the Klang Valley, Kwasa Land said in a statement today. The masterplan is being finalised for submission to the Selangor State Planning Committee for approval.-- Bernama

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Actual sale of residential properties declining

By THE STAR

PETALING JAYA: The residential property market may be cooling down in terms of actual sales due to credit-tightening measures by banks, according to real estate consultants and Bank Negara data.

Bank Negara’s website showed loan approvals’ percentage for residential properties in the country declined to 46.8% in the first half of this year from 50.1% during the same period in 2011.

The number of loans applied for purchases of residential properties increased by 2.9% year-on-year in the first half of this year to RM96.7bil.

However, the number of residential property loans approved during the six-month period declined to RM45.26bil from RM47bil in the same period in 2011.

It is also worth noting that the loan approval percentage for non-residential properties was stable at 52.3% in the first half of this year, compared with 52.4% during the same period in 2011.

The number of loans applied (RM50.35bil) and approved (RM26.35bil) for purchases of non-residential properties was also stable in the first half of this year.

CB Richard Ellis (Malaysia) Sdn Bhd executive director Paul Khong said if the housing loan approval rate continued to decline, it will affect residential property prices.

“In order to conclude transactions, residential property sellers may now need to realistically adjust their selling prices as many of the buyers cannot get their loan applications approved,” he said.

KGV International Property Consultants director Anthony Chua said although the demand for residential properties continued to be high, the credit-tightening measures by banks had resulted in the market “cooling somewhat”.

“We are still monitoring the situation. There is less transactional activity in the market this year for both new property launches and the secondary market compared with last year,” said Chua.

Property consultancy CB Richard Ellis (M) Sdn Bhd had, in its recent report on the Kuala Lumpur residential market for the second quarter of 2012, also noted that there was a significant decline in the loan approval percentage this year.

“The loan approval rate was as high as 60.5% during the first five months of 2008, and has declined steadily since,” said the report.

The CBRE report said that the lower rate of loan approvals this year could be attributed to the implementation of new lending guidelines by Bank Negara.

Effective this year, banks have started using net income instead of gross income to calculate the debt service ratio for loans.

“Anecdotal evidence from real estate agents suggests that transactional activity has also declined as a result.”

The property consultancy also pointed out that despite the lower loan approval rates, buyer interest in new property launches, typically of smaller housing units in secondary locations, during the second quarter remained strong with developers continuing to offer attractive incentives to the purchasers such as the developer interest bearing scheme (DIBS), early bird discounts, free built-in cabinets and free legal fees.

“We expect 2012 to be a period of stabilisation especially within the luxury residential market, with transactional activity depressed by uncertain economic conditions and the reduction in loan approval percentage, which remains well below 50%.”

The CBRE report also said speculative property purchases were expected to be reduced for the rest of this year, as a result of tighter lending conditions, uncertain economic outlook, and concerns about the outcome of the upcoming general election.

Meanwhile, another property consultant said the tighter lending conditions had taken a visible toll on the secondary residential property market.

“Newly-launched properties are selling well thanks to better financing access, especially with the DIBS offered by many property developers.”

The consultant said slower sales activities in the secondary residential property market had resulted in innovative offers from marketing agents.

“This includes transactions where buyers sign the sales and purchase agreement but take the bank loans only a year or twolater. In effect, the buyers lock in the unit price now (perhaps in anticipation of further increases in market prices) and defer payment until much later. This works just like an informal DIBS,” he said.

In a recent report, Kenanga Research also said based on its channel checks, the secondary market appeared to be very weak and prices of secondary and primary products have diverged further.

The research unit opined that buyers were more focussed on new launches due to financing and promotional schemes.

“From a bank’s perspective, we think there is a preference to lend to the primary market as it means better asset quality whilst banks can get all-in’ deals with developers (for example, end-financing to bridging to land financing) to ensure a more balanced systems loans growth.”

Kenanga Research also opined that as a result, property developers can continue to grab greater market share and chalk-up high sales, although it expected Malaysia’s overall residential transaction value growth to be relatively unexciting at 5% year-on-year.

It was noted that despite the tighter lending criteria, Malaysia’s total residential transaction values have remained stable in the first quarter of this year.

It said buying interest remained strong, due to residential property buyers hedging against inflation and the lack of alternative investments, but this will be reigned in by more prudent lending criteria and the banking system’s fear of real-estate tightening measures such as higher real property gains tax.

- Malaysia Property News

WCT pays RM180m for MBSB land and shopping mall

By Cindy Yeap of theedgemalaysia.com Friday, 24 August 2012 14:52

KUALA LUMPUR: WCT Bhd is buying a plot of commercial land with an abandoned shopping mall in Johor Baru for RM180 million cash, in a deal that potentially gives it recurring income. The deal nets the seller, Malaysia Building Society Bhd (MBSB), a one-time profit of about RM55 million. WCT, which won a public tender, intends to undertake a mixed development project on the land situated “in a mature area of Johor Baru”, the company said in a statement yesterday. The price WCT is paying MBSB’s wholly owned Idaman Usahamas Sdn Bhd, is 1.45 times the property’s net book value of RM124.55 million as at end-December 2011 and 1.13 times the RM160 million value ascribed by valuer Messrs Jordan Lee & Jaafar on Feb 15 this year. WCT’s winning bid was more than double the only other bid of RM89 million received for the property, according to MBSB’s statement to Bursa Malaysia. MBSB said the disposal is in line with its objective to sell non-income generating assets and other previously acquired foreclosed properties. Based on end-December 2011 numbers, the RM55 million estimated gain on disposal is expected to boost MBSB’s earnings per share by 5.5 sen and net assets per share by 5 sen to 98 sen. Its gearing ratio is also expected to fall to 0.084 times from 0.089 times, proforma numbers showed. For its part, WCT expects the acquisition, which is not subject to shareholder approval, to boost future earnings and improve shareholders’ value “over the medium to long term”. The acquisition also fits WCT’s desire to increase recurring rental income, which the company is attempting to grow with projects like the newly opened Paradigm Mall in Petaling Jaya and the upcoming klia2 Integrated Complex. The freehold land, measuring 5ha with a four-storey vacant retail podium and a two-level car park, is situated in Jalan Skudai, the main road linking the North-South Expressway to Johor Baru city centre, WCT said. The Employees Provident Fund, which owns substantial stakes in both WCT and MBSB, is deemed interested in the deal. WCT will partially fund the acquisition with borrowings, but said the debt is not expected to have a material impact on group gearing. The actual effect on gearing, however, will depend on the amount of borrowings, which have yet to be determined, WCT said. WCT shed two sen to RM2.66 yesterday while MBSB was unchanged at RM2.40 apiece.

HBA: How about old strata cases?

Although the proposed amendments to the Strata Titles Act of 1985 will deter property developers from abandoning their responsibility to apply for strata titles, it will not address the existing cases of non-compliance, according to Chang Kim Loong, Honorary Secretary-general at National House Buyers Association (HBA)

"The main purpose (of the Act) is to address issues of non-application of strata titles by developers, but what about existing cases?" he asked.

"What about strata property owners who are still waiting for their titles? How are you going to solve those cases where the developers have yet (to) apply for the strata titles?"

Chang cited the case of the properties at Chow Kit Road, Kuala Lumpur where the issuance of strata titles was long overdue, since the projects were already completed 20 to 30 years back.

"We've got cases where the developer went bankrupt or their firm was wound up prior to the issuance of the strata titles. What are we going to do about those (cases)?" he noted.

To tackle this problem, HBA has made various recommendations to the agency that oversees land matters, the Ministry of Environment and Natural Resources. However, the suggestions are still being deliberated on.

"There's a special task force now that looks into this matter. We've made numerous recommendations there, how to circumvent the existing problem, how the prosecution needs to be beefed up and how the severity (of punishment) for non-application (by developers) is going to be enhanced," explained Chang.

Nonetheless, Chang believes that the proposed amendments to the Strata Titles Act will safeguard the interest of future house buyers.

US buyers and sellers more dissatisfied

By Andrew Batt

A new study from the United States of America shows that home-buyer satisfaction is at an all-time low, and that home-seller satisfaction is also declining.

The Home Buyer/Seller Satisfaction Study, published by JD Power and Associates, found that overall satisfaction among home buyers is at its lowest level in the five-year history of the study, averaging 789 on a 1,000-point scale, compared with 797 in 2011. Satisfaction among sellers has declined as well, averaging 768, compared with 779 in 2011

Christina Cooley, senior manager of the real estate practice at JD Power and Associates, said: "Although home buyers and sellers are aware of continuing challenges in the real estate market, a key reason satisfaction is down is that customer expectations are not being met, either in terms of sellers having to compromise on their listing price, or for buyers who are compromising on the home's condition and size."

She added: "This is understandably frustrating all around. However, we also find that real estate companies that set themselves apart in terms of working closely with their customers and meeting their needs may play an important role in both managing expectations, but more importantly, exceeding them."

The study found that the highest-performing real estate companies are more consistent at capturing a greater proportion of the listing price. On average, sellers report receiving 89 percent of their listing price.

Notably, although the agent/salesperson has the largest impact on overall customer satisfaction among both home buyers and sellers, customer loyalty is stronger toward the real estate company than toward the agent. Less than 20 percent of customers say they "definitely will" switch real estate companies if their agent moves to another company.

Cooley added: "As customers continue to feel anxious about the current housing market, it requires a combination of a high-performing company, process and resources along with a truly exceptional agent to put home buyers and sellers at ease. At the end of the day, real estate companies may best satisfy their customers by keeping them informed, educating them on comparable sales information and following up with them after the closing."

The study included more than 2,990 evaluations from more than 2,790 respondents who bought or sold a home between March 2011 and April 2012. The study was conducted between March and May 2012.

Developers, utility companies must share public infrastructure costs

The cost of building public infrastructure such as flyovers, substations and reservoirs must be shared between property developers as well as utility companies, according to Chang Kim Loong, Secretary General of National House Buyers Association.

Chang emphasised that developers should share the costs with utility companies like Syarikat Bekalan Air Selangor Sdn Bhd, Perbadanan Urus Air Selangor (PUAS) and Tenaga Nasional Bhd.

Meanwhile, Datuk Seri Michael Yam Kong Choy, President of Real Estate and Housing Developers Association Malaysia (REHDA), said TNB can still recover the costs it paid through tariff collection.

"There must be an urban partnership between the master developer and the agencies. Right now there is no emphasis on on this. There has to be a mechanism," said Yam.

On the other hand, Datuk Seri Chor Chee Heung, Minister of Housing and Local Government, said the United Nations had recognised the housing sector in Malaysia with its successful status.

Unlike other dwellers which do not have car park areas, Malaysians have good spacious homes, he noted.

"Felda settlers for example, have no housing problems. So we are spoilt in some ways," Chor added.

Moreover, several industry players proposed to group the Syarikat Perumahan Negara Bhd and 1Malaysia People's Housing Programme (PR1MA) under one group.

Good move on Strata Titles Act but not sans problems: REHDA

The Real Estate and Housing Developers Association of Malaysia (REHDA) supports the government's decision to amend the Strata Titles Act 1985, enabling the concurrent issuance of strata titles and vacant possession (VP) to homebuyers.

Although the amendments will provide clearer regulations to the maintenance and management of strata properties, issuing strata titles simultaneously with VP present a number of challenges, said Datuk Seri Michael KC Yam, President of REHDA.

"Essentially, to be able to issue the strata titles simultaneously with VP, the registered surveyor would need to access the site well before practical completion."

"We understand that within three months of the completion of the superstructure, the surveyor must complete the survey, the survey drawings and make the requisite submission to the Land Office," said Yam in an email to The Sun Daily.

However, conducting the physical survey while construction work is still ongoing could pose health and safety hazards to the professionals involved. Nonetheless, the property industry is prepared to give it a try.

He also explained that the physical issuance of the strata titles is not fully controlled by the professionals and developers.

"Given the backlog of titles to be issued and staff shortage at the Land and Survey Department and the Land offices, what if there is a delay in the issuance of strata titles?" he asked.

Yam added that "if strata titles are not issued, VP cannot be effected and a delay in this may affect the timely delivery of the parcels to the owners. Developers may need to pay Liquidated and Ascertained Damages (LAD) to buyers through no fault of their own."

Chor asks PR1MA coordinating unit to fast-track low-cost housing projects

By Bernama Tuesday, 14 August 2012 18:55

PETALING JAYA (Aug 14): Housing and Local Government Minister Datuk Seri Chor Chee Heung has asked the unit coordinating the 1Malaysia Housing Programme (PR1MA) to fast-track their projects as many applicants are still on the waiting list. He said many low-income earners have applied for houses under the government's PR1MA programme. Information on PR1MA projects should also be published on the PR1MA website for the people's benefit. "We want the people to understand the programme so that eligible applicants can apply for the houses," he told reporters after opening a roundtable discussion on "Housing Affordability: Issues and Challenges" here on Tuesday. The PR1MA housing programme aims to provide middle-income earners in cities nationwide the opportunity to own their first home at reasonable prices of between RM150,000 and RM300,000, depending on the location. Chor said the government has done fairly well in providing a house for the low-income group under the People's Housing Project but the focus now was to build more houses for the medium-income group. "Owning a house in urban areas is urgent and the financial burden of supporting urban living is very high. So, the government is trying to help this people with the introduction of PR1MA and My First Home Scheme," he said. "The government sees the need to mitigate the financial burden of young middle-income earners due to the high cost of living, particularly in urban areas," the minister said. Chor said feedback from the roundtable discussion would be useful for his ministry. He said housing industry players must play their role in helping the people in need of houses. "We need to come up with innovative and holistic ways to build affordable houses for the people, especially with the expensive construction materials and land cost," he said. — Bernama

S P Setia launches Sky Oasis Residences with RM180 GDV

By Bernama Wednesday, 08 August 2012 18:14

JOHOR BAHRU (Aug 8): Malaysia's biggest property developer S P Setia Bhd has launched the "Sky Oasis Residences" luxury condominium project, which promises RM180 million gross development value. Setia City Development Sdn Bhd general manager Ricky Yeo said although the project was only launched recently and slated for completion in 2015, 60% of the international units have been snapped up. Project developer Setia City Development is S P Setia's wholly-owned subsidiary. "With the price range from RM300,000 onwards, it's reasonable to people who aspire for modern living under the 'Urban Lakeside Living In The Skies' concept," he told Bernama. Sky Oasis Residences is at the Setia Indah housing estate, also developed by S P Setia. Ricky said the 28-storey luxury condominium has 434 units, measuring 756 sq ft up to 1,003 sq ft, besides facilities like infinity swimming pool, Sky Terrace and a gymnasium. He said Sky Oasis Residences was the only condominium, with a panoramic 5.6ha (14 acres) lake view, a golf course, road and highway access. The condominium is also surrounded with various facilities such as a hypermarket, a private tertiary learning institution, a petrol kiosk and a bank besides proximity to the Tebrau Economic Corridor, he said. "As Sky Oasis Residences is located near a college and a higher learning institution, buyers can rent out their units to students," he said. Ricky said the majority of the buyers were Malaysians working in Singapore and those having a young family. He said Malaysians working in Singapore were interested in the condominium as it was linked with a good road and highway network leading to Singapore. "Sky Oasis Residences is only 20 minutes away from the Senai International Airport and the Customs, Immigration and Quarantine Complex at Sultan Iskandar building," he said. The condominium is also accessible by the North-South Expressway, Eastern Dispersal Link, Tebrau Highway and Pasir Gudang Highway, he added. — Bernama

Amendment to resolve strata title delays

Aug 10, 2012

PUTRAJAYA: An amendment to the Strata Titles Act is to be tabled at the next session of parliament to, among other things, resolve the delay in the issuing of strata titles.

The National Land Council today discussed the matter at its meeting chaired by Deputy Prime Minister Tan Sri Muhyiddin Yassin at the Perdana Putra Building, here.

A statement issued after the meeting said the amendment would provide for the reduction of the period for issuing of the strata title from 170 working days to less than 100 working days.

The Strata Titles (Amendment) 2012 Bill would also look at issuing strata titles and vacant possession simultaneously, it said.

The meeting also looked at the progress in the settlement of arrears of land transactions and performance of the transfer of land registration in one day in the administration of state land as well as the implementation of the standardisation of timber royalty rates in the peninsula in accordance with the decision of the National Forestry Council on Feb 13, 1996.

-- BERNAMA 

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Amendments to safeguard rights of strata-unit buyers

The National Land Council (MTN) has decided to amend the Strata Titles Act of 1985, reducing homebuyers' waiting time to move into their new houses, according to a report by The Star.

If the amendments are approved, buyers of strata units will be able move in following receipt of vacant possession from the developer. At the same time, the strata ownership will be duly registered in the land office so that the title can be transferred promptly to the buyers.

The amendments also seek to reduce the time required to process and issue strata titles to less than 100 working days from 170 working days, said MTN.

"The proposed amendments to the Act would, among others, aim to ensure the rights of buyers of stratified housing, especially strata titles that guarantee proprietary (keempunyaan) rights to an individual," explained the council.

"We will make sure developers do not abdicate their responsibility to apply for strata titles and ensure they subsequently transfer the ownership to the rightful buyers," said Deputy Prime Minister Tan Sri Muhyiddin Yassin, who chaired the council's meeting on the proposed amendment.

Muhyiddin noted that the amendments are expected to have a great impact on Malaysia property industry, adding that "the problem of late issuance of strata titles could be resolved by shortening the issuance period."

Meanwhile, MTN has achieved a 100 percent success rate in resolving backlogged applications related to land as of 31 December 2011, with only Selangor missing out 164 cases out of 1,965,867 cases.

S’pore HDB to offer 20,000 flats in 2013

SINGAPORE: The Housing Board (HDB) will deliver at least 20,000 new flats next year.

That is the promise National Development Minister Khaw Boon Wan has given to Singaporeans in a bid to increase home ownership.

“I expect this sustained supply to firmly stabilise the housing market. This will give Singaporeans many options as they make their flat purchases prudently and wisely,” said Khaw on his Housing Matters blog.

The latest infusion of flats comes on the back of the 50,000 flats already promised for the past two years.

The government was also making steady progress in helping newly-wed first-timers land their HDB flats, going by the application rates for the latest Build-To-Order launch, he said.

Application rates for first-timers, or those that have yet to take up a housing subsidy, is 1.7.

“This means that almost all first-timers will get the chance to select a flat when they apply for one, especially in non-mature estates,” he said.

By The Straits Times/Asia News Network

Top 10 luxury home developers

Property development has been and will always be a driving force in the market, and at the forefront of the industry is a select group of the most bankable developers to deliver on quantitative attributes such as shareholders’ funds, revenue and pre-tax profits, and qualitative attributes like innovation, creativity and brand image.

Our vote of the Ivy League of developers for prestigious luxury residential properties (in alphabetical order):

BANDAR RAYA DEVELOPMENTS BHD 
With The Troika cementing its status as a luxury property developer, Bandar Raya Developments Bhd clinched the Asia Pacific Property Awards for Best International High Rise Architecture. Located at the heart of Bangsar is its recently completed One Menerung – all units were sold out almost immediately after its launch. Due to the overwhelming demand of its completed CapSquare residences, BRBD has launched 6 CapSquare – a new condominium in the CapSquare mixed development.

The Troika

EASTERN & ORIENTAL GROUP 
Established in 1885, Eastern & Oriental Group is today a major player in the property arena. Not only is the 1000-acre Seri Tanjung Pinang the group’s current major project, it also one of the biggest property developments in Penang. With exclusive residences such as Dua Residency and Seventy Damansara in its portfolio, its upcoming St Mary Residences is set to affirm the developer's stamp in the luxury porperty market.

Dua Residency

IJM LAND BHD 
With the development of Ampersánd at Jalan Kia Peng, IJM has arrived in the luxury property market. And with its completed upmarket Bayu Segardevelopment setting new standards in Cheras, the developer is now reaching for greater heights with The Light – a luxurious waterfront living enclave integrated with commercial and leisure facilities in Penang.

L-R: The Light, Ampersand living room

MAH SING GROUP BHD 
Joining the wagon of developing large-scale high-end developments in Penang is Mah Sing with its impressive Southbay project. On the other hand, they continue to raise the bar in Klang valley with premium properties like the Garden Residences and One Legenda. Its Icon Residences at Mont Kiara, a luxury garden terrace in the sky that integrates the basic elements of the tropics, is a serviced apartment that is set to become an iconic landmark in the area.

L-R: Southbay, Garden Residences

NAZA TTDI SDN BHD 
Clinching The Brand Laureate Award 2008-2009 for best property brand and the Best Residential Apartment Award, Naza TTDI is no newcomer in the market. Moving forward with bigger plans, they are currently developing Platinum Park – a mixed development comprising of seven towering skyscrapers within the vicinity of KLCC. Its other impressive developments include the avant-garde garden enclave of Laman Seri in Shah Alam, and the luxurious The Valley TTDI homes set in the Ampang foothills.

Platinum Park

SIME DARBY PROPERTY BHD 
Ranked number one in the Property & Infrastructure category of Malaysia's Most Valuable Brands (MM VB), Sime Darby also records the biggest gain in terms of brand value by 82.6%. With many elite residential developments to boast such as Primo, Royale Palms, Planter's Haven and 3 Residen, it is evident that they are recognized as the leading top player in the luxury home market. Living up to expectations, Sime Darby is coming up with Seri Pilmoor, where each beautifully designed avant garde home is equipped a high-tech home automation system.

L-R: Primo, Royal Palms

SP SETIA BHD 
Noted for its massive projects across the country, SP Setia is taking it one step further with its plan to develop Kenny Hills Grande – super exclusive mansions with a hefty price of RM30 million. Among some of its other luxurious developments include the Setia Eco Park, an eco-friendly residential enclave in Shah Alam, and Setia Pearl Island, which is akin to a modern tropical island with beautiful homes and resort-like facilities.

Setia Eco Park

SUNWAY CITY BHD 
After its successful Kiara Hills project won itself the label of being the ‘Beverly Hills of Kuala Lumpur’, Sunway City has established its mark in the upmarket segment with Sunway South Quay, a lakeside metropolis of resort-style homes. Together with its upcoming posh Sunway Vivaldi and newly launched upscale Sunway Rydgeway, Sunway City looks set to scale new heights.

L-R: Sunway South Quay, Kiara Hills

TAN & TAN DEVELOPMENT BHD 
Operating as a subsidiary of IGB Corp Bhd, Tan & Tan is famous for high-end condominium living with its Hampshire Place, Cendana and U-Thant Residence. Its success story continues with the joint development of Sierramas, an exclusive guarded residential estate with KL-Kepong Property Holdings Sdn Bhd. Tan & Tan is now redefining luxury with its newly unveiled Garden Manor.

L-R: Sierramas, Cendana

YTL LAND & DEVELOPMENT BHD 
The Grand Winner of the Asia Pacific Property Awards 2009, YTL bagged seven awards for three projects – Centrio at Pantai Hillpark, Lake Edge at Puchong, and The Maple at Sentul West. With such a reputation to hold, YTL is stepping it up with an iconic architecturally sophisticated condominium known as The Capers.

L-R: Sierramas, Cendana

No additional stamp duty please: MDC

Developers are encouraging the government not to impose an additional stamp duty or amend the existing Real Property Gains Tax policy, according to Bernama.

In a statement, the Malaysian Developers' Association (MDC) said a policy revision will negatively affect the residential market and discourage foreign investment into Malaysia, at the back of a plateauing demand in housing as well as the growing supply of commercial office units.

They added that any change made to the policy may also dampen property sales and occupancy rates.

The MDC issued the statement following the recently concluded 16th MDC council.

Moreover, the association also noted that the increases in property prices may be attributed to the rising input costs, such as "increases in basic building materials which are major components of construction cost, land and compliance cost."

They also asked assistance from the government to guarantee fair pricing for cement, following the recent announcement of increase in cement prices.

Additionally, MDC praised some state governments for being responsive enough in implementing affordable housing, rather than low-cost housing.

"Whilst we empathise with the increasing housing price which is presently affecting the public, we would support any initiative to move away from the subsidy policy," added MDC.

Mah Sing grabs limelight from SP Setia

With growing interest from investors, Mah Sing Group Bhd is now emerging as a steady proxy to the Malaysian real estate sector, as market frontrunner SP Setia Bhd slightly loses interest, according to property analysts.

A report by The Star noted that in the past two weeks, the value of the company's shares increased by about 16 percent, even though it dropped by one sen to RM2.41 in Tuesday.

"Given a changed competitive landscape, Mah Sing's ascendancy under the stewardship of its major shareholder Tan Sri Leong Hoy Kum should now firmly solidify its valuation from long overdue market recognition of its entrepreneurial spirit in driving net asset value growth," said AmResearch.

Based on Bloomberg's survey of 14 analysts, Mah Sing garnered one "sell" call, three "hold" rating and 10 "buy" rating. Consensus target price stood at RM2.54, while consensus net profit for fiscal year ending 31 December 2012 is RM220 million.

Moreover, Mah Sing has two large township projects, the M Residence at Rawang, Selangor and the soon-to-be-launched Southville City at Bangi, which has a gross development value (GDV) of RM2.2 billion.

The group also clinched three parcels of land this year that will generate a GDV of RM3.6 billion, or 73 percent of its RM5 billion 2012 GDV replenishment target. Additionally, Mah Sing's total estimated GDV presently stands at RM16 billion, said AmResearch.

"The group's sales are very much secured with current unbilled sales of RM2.5 billion. It has achieved RM1 billion in new sales up to the middle of May, or accounting for 40 percent of its sales target of RM2.5 billion," added the research house.

Increasing compliance costs may hamper future earnings

The rise in compliance costs alarms property developers as it eats a portion of the gross development value (GDV) of their developments.

Compliance costs - which refer to costs spent by developers in providing facilities for public amenities and utilities in their projects - account for about 15 percent to 50 percent of their GDV. Bigger projects have lower compliance costs due to their economies of scale.

"Many people are not aware of the huge compliance costs that we absorb. When we buy a parcel of land, after setting aside land for water, power, roads and other required public amenities, we are only left with about 45 percent of our budget to build houses. We (also) don't get to build on the whole plot," said a senior property executive.

Industry players also question why for-profit, public utility entities such as Syarikat Bekalan Air Selangor Sdn Bhd and Tenaga Nasional Bhd are not required to share the compliance costs.

"We pay for the land. We then build the infrastructure and handover these facilities to the (utility) companies. These companies today operate for-profit, and are not state-owned entities. The time has come to relook at the arrangement," a developer said.

The issue will be tackled by industry players in a paper to be submitted to the office of the Real Estate and Housing Developers' Association (REHDA).

Property developers also plan to ask the Performance Management and Delivery Unit to conduct an independent study on the significance of compliance costs.

"The authorities know the cost that we absorb, but an independent study would best address the issue," said another property developer.

According to a REHDA survey, compliance cost for a project with RM100 million GDV would be around 20 percent.

Moreover, developers said that the rising compliance cost plus increasing prices of building materials poses a major challenge in boosting future earnings.

New guidelines to help high-rise apartment owners in Penang

New guidelines should be formulated to help owners of low- to medium-cost high-rise apartments in Penang, said Teng Chang Yeow, Chairman of Penang Barisan Nasional (BN).

There is a need for such guidelines because a study found that "these strata title home owners are facing maintenance and management problems," he said.

"The guidelines will include a rebate of assessment and land taxes to the apartments' management bodies or committees to be used for the purpose," he noted, during the opening the Bayan Baru High Rise Building Owners Seminar at Penang.

Moreover, a financial and management information scheme will also be created for the residential management bodies of condominiums and flats, he explained.

"This would include an allowance for the management body's chairman and secretary, similar to the allowance received by the Village Development and Safety Committee chairman, provided they were responsible for more than 300 units."