SBC increases GDV of projects

Extracted from Propertyguru.com.my

SBC Corp could boost the gross development value (GDV) of its projects for the next 12 months to RM800 million from the current RM300 million, once the joint-venture (JV) agreement with Suria Capital Holdings Bhd is finalised.

Notably, the GDV of the group's projects within Peninsular Malaysia stands at approximately RM600 million, while its JV project with Suria Capital will add another RM200 million. This is based on the assumption that shareholders and the relevant authorities approve the project during the next six months, of which SBC is confident.

In May, the group entered into a JV with Suria Capital to develop around 16.25 acres of coastal land in Kota Kinabalu.

Set for launch in 1H2014, the project known as Jesselton Quay is poised to be one of the biggest for SBC and will add around 600m of private marina waterfront to the city coastline.

Previously known as Jesselton Waterfront Project, the project will be a redevelopment as well as an extension north of the old Kota Kinabalu city centre.

With its design taking cue from Singapore's Marina Bay Sands, the mixed integrated development will feature various tourist attractions, including hotel and world class retail components, convention centre and international cruise terminal. It will also have residential towers and several premium office towers.

Other upcoming projects of SBC are Kiara East and other stand-alone sites in Bandar Ligamas, Kuala Lumpur, Ulu Yam-Genting Road as well as the Peak Collection in Kota Kinabalu.

It also has ongoing projects in Kuala Lumpur, Kiara East, Kota Kinabalu, Bandar Ligamas and Kuantan.

New house prices to increase 10%

Extracted from Propertyguru.com.my

Prices of new houses in Malaysia are expected to increase by 10 percent, primarily due to the absenteeism of foreign workers and higher cost of construction materials.

According to Datuk Seri Michael Yam Kong Choy, President of Real Estate and Housing Developers Association of Malaysia, the failure of foreign workers to report for work has caused delays, adding to costs that will certainly be passed on to consumers.

Although acknowledging the need to clampdown on illegal immigrants, Yam noted that the shrinking supply of workers would hurt developers as they would have to “pay more for labour to meet contractual deadlines, failing which they will be penalised.”

Under the Sales and Purchase Agreement, developers are bound to pay buyers a compensation in case of late delivery. Notably, the contracts in the private sector does not include any provision for price adjustments.

Meanwhile, Association president Datuk Lim Kai Seng expects sand and cement prices to increase by five percent to 10 percent, while transportation cost could rise by up to 20 percent.

Shareda to build 10,000 homes in five years

by Propertyguru.com.my

Private housing developers in Sabah pledged to build 10,000 affordable houses in the next five years, according to media reports.

Francis Goh, President of Sabah Housing and Real Estate Developers Association (Shareda) revealed that the houses will be priced at not more than RM250,000 each. They will be built in 28 housing schemes, which will be located in the northern Kota Marudu district, including Keningau and Ranau in the interior as well as Beufort and Sipitang in the southern part of the city.

However, the government should also do its part, by setting up a one-stop centre to expedite the approval of developer's licence and building plans for these projects.

“This is our pledge to the government and the people of Sabah,” he said.

Over the last 10 years, Shareda had built at least 100,000 affordable homes, while another 15,000 homes were built and sold in the last three years.

“So we are not afraid to fulfill the pledge to build 10,000 such houses in the next five years,” added Goh.

Meanwhile, Goh attributed Sabah's high house prices to several factors. Notably, house prices in Sabah had become the second highest in the country.

“Firstly, the land price in Sabah had increased within 8km radius. Previously it cost RM1 million to buy an acre within eight kilometres, now it costs RM3 million along Jalan Bundusan in Kota Kinabalu for example,” he explained.

Moreover, “the building materials costs 30 percent more than peninsular Malaysia due to cabotage policy implemented in Sabah...Thirdly, the labour cost had increased, the workers now are demanding RM80 per day, compared to RM30 in earlier days,” he added.

First Forbes Tower set for Manila

Global media company Forbes and prominent Philippines developer Century Properties Group are set to build the world’s first Forbes-branded Forbes Media Tower in Makati, Metro Manila.

The commercial building will be designed to serve the world’s business leaders by providing an environment to conduct business with premium amenities. This initial tower is expected to be part of a network of Forbes Media Towers around the world.

“Century Properties is honoured to be working with Forbes Media for this project. Forbes is synonymous with success and business, and this partnership fits perfectly with our distinguished portfolio of local and internationally renowned brand partners,” said Jose E. B. Antonio (pictured), President & Chief Executive Officer of Century Properties Group.

“It is also an honour for us that Forbes has recognised the Philippines as one of Asia’s bright spots and showed its confidence by choosing Makati, Metro Manila as the first site of its landmark business tower.

Mike Perlis, President and Chief Executive Officer of Forbes Media, said: “We’re very pleased to be collaborating with Century Properties for the first Forbes Media Tower as we extend our brand into the global real estate development market.

“Forbes has always been an authoritative resource for the world’s business leaders, and this tower further reinforces our long-standing mission. The Philippines, with its rapidly growing market and strong relations with the U.S., is the perfect location to launch this effort.”

The Forbes Media Tower in Makati, Metro Manila will offer approximately 60,000 sqm of premium office space, which will be available for sale and for rent to business owners, entrepreneurs and companies by the first quarter of 2014. In addition to office space, the building will provide meeting and event space with plans for a fine dining restaurant, fitness centre and exhibition facilities.

The tower will be located in Century City, a mixed-use development of Century Properties in the central business district of Makati. Makati is comprised of premium residences, office buildings and the Century City Mall. The tower’s location is part of an IT zone, which will allow accredited locators to benefit from incentives from the Philippine Economic Zone Authority.