By Bernana
Friday, 11 January 2013 16:51
KUALA LUMPUR (Jan 11): Hap Seng Land Sdn Bhd, a wholly-owned subsidiary of publicly listed Hap Seng Consolidated Bhd, has unveiled its new project, The Horizon Residences Kuala Lumpur.
The project has a gross development value (GDV) of RM355 million. "To be fully completed in July 2015, The Horizon Residences is a 335-unit luxury residential development encompassing two 26-storey towers," said Datuk Edward Lee Ming Foo, Group Managing Director of Hap Seng Consolidated Bhd.
The Horizon Residences Kuala Lumpur is a stone's throw from the upcoming Tun Razak Exchange, a multi-billion ringgit world-class international financial district, while a planned Mass Rail Transit station is only 500 metres away. Lee said the location of the project provides an opportunity for investors to take advantage of significant potential value appreciation,
resulting from the infrastructure developments and investments taking place within its surrounding vicinity.
He said 40 per cent of the residential units had been sold even before the launch, with 30 per cent taken up by the locals and 10 per cent by foreigners.
"The foreigners are mainly from Asian countries like China, Taiwan, Korea and Singapore. Hap Seng is seeking the best contractor for the project, so that the residences built will be of high quality," he told reporters after unveiling The Horizon Residences Kuala Lumpur, here on Jan 11
Lee said those with a discerning taste and lifestyle for homes equipped with the very best in contemporary urban living, can also enjoy the facilities and amenities that have been incorporated in the Horizon Residences.
Designed to attain the Green Building Index certification once completed, The Horizon Residences Kuala Lumpur offers eight types of layout ranging from 549 sq ft to 4,316 sq ft
Prices start from RM700,285 and the show gallery for the project is on the ground floor of Menara Hap Seng in Jalan P.Ramlee here. "We have a few new projects on hand for this year and are looking for new land mainly in the Klang Valley and Sabah," Lee said.
Hap Seng Consolidated Bhd has a diversified business interest in plantations, property investments and development, credit financing, trading of fertilisers and the automotive sector. - Bernama
Tuesday, 15 January 2013
TM inks Mou with housing developer to provide high speed broadband
By Bernama
Thursday, 10 January 2013 17:45
SUNGAI PETANI (Jan 10): Telekom Malaysia Bhd (TM) has signed a memorandum of understanding (MoU) and a service agreement with Chinhinhome Sdn Bhd, to install its high-speed broadband service, UniFi, in housing projects to be undertaken by the company.
House buyers in projects undertaken by Chinhinhome will enjoy high-speed Internet, phone and Internet Protocol television (IPTV) using fiber optics.
Speaking after the signing ceremony on Jan 10, Kedah/Perlis TM Manager Noor Lela Baba said the MoU was the best way to create synergy between TM and dynamic housing developers in providing benefits to house buyers and residents in the state.
"This agreement is being inked at the right time given the keen interest expressed by house buyers and users. This is also in tandem with the government's aspiration to increase broadband penetration in the country.This is the third such collaboration that TM has entered into in the Kedah/Perlis area after Eupe Corp Bhd and Paramount Property Development Sdn Bhd," she told reporters, adding that TM hoped to emulate the effort with other housing developers in future.
Noor Lela said UniFi's service currently covered 94 areas and 1.32 million premises including economic and industrial zones in the Klang Valley, Cyberjaya, Putrajaya, Kulim Hi-Tech Park and Iskandar Malaysia.
"In Kedah, UniFi is available in housing estates and the industrial area of Kulim Hi-Tech Park, Sungai Petani, Ria Jaya and Bakar Arang. "Overall, UniFi has 490,000 customers, nationwide, and more than 1,700 in the state," he added - Bernama
Thursday, 10 January 2013 17:45
SUNGAI PETANI (Jan 10): Telekom Malaysia Bhd (TM) has signed a memorandum of understanding (MoU) and a service agreement with Chinhinhome Sdn Bhd, to install its high-speed broadband service, UniFi, in housing projects to be undertaken by the company.
House buyers in projects undertaken by Chinhinhome will enjoy high-speed Internet, phone and Internet Protocol television (IPTV) using fiber optics.
Speaking after the signing ceremony on Jan 10, Kedah/Perlis TM Manager Noor Lela Baba said the MoU was the best way to create synergy between TM and dynamic housing developers in providing benefits to house buyers and residents in the state.
"This agreement is being inked at the right time given the keen interest expressed by house buyers and users. This is also in tandem with the government's aspiration to increase broadband penetration in the country.This is the third such collaboration that TM has entered into in the Kedah/Perlis area after Eupe Corp Bhd and Paramount Property Development Sdn Bhd," she told reporters, adding that TM hoped to emulate the effort with other housing developers in future.
Noor Lela said UniFi's service currently covered 94 areas and 1.32 million premises including economic and industrial zones in the Klang Valley, Cyberjaya, Putrajaya, Kulim Hi-Tech Park and Iskandar Malaysia.
"In Kedah, UniFi is available in housing estates and the industrial area of Kulim Hi-Tech Park, Sungai Petani, Ria Jaya and Bakar Arang. "Overall, UniFi has 490,000 customers, nationwide, and more than 1,700 in the state," he added - Bernama
Hong Kong developer launches maiden project in JB
By Bernama
Friday, 11 January 2013 16:47
JOHOR BARU (Jan 11): One of the largest property developers in Hong Kong, New World Development Co Ltd, has joined hands with a local partner to launch its maiden real estate project in Malaysia.
The company, which commands a 15 per cent market share in the highly competitive property market in Hong Kong, picked Luen Yum Development (M) Sdn Bhd as its partner in launching the "New World Garden" project in Plentong, Johor.
The project, offering 96 units of high-end bungalows and semi-detached luvury villas on 4.86 ha. of land, has a Gross Development Value (GDV) of RM240 million.
Slated for completion in April 2014, it is undertaken by Taipan Eagle Sdn Bhd, a joint venture company set up by New World Development and Luen Yum Development.
Michael Tam, director of Luen Yum Development, said the 92 units of semi-detached villas and four exclusive bungalows are priced from RM2.4 million to RM4 million each.
"We are targeting a mix of buyers, locals and foreigners, Singaporeans and other nationalities," he told the media at the New World Garden's launch here on Jan 11.
Construction of the luxury houses, he said, is more than 50 per cent complete. According to Tam, besides the booming Johor Baharu property market, Taipan Eagle, the local arm of New World Development, is also looking to expand its footprint into other markets in Malaysia.
Besides Hong Kong, New World Development, which is owned by Chow Tai Fook Enterprise Ltd and listed in the Hong Kong bourse, also has property projects in major cities in China such as Beijing, Shanghai, Guangzhou and Wuhan.
Meanwhile, executive director of New World Development Chen Guanzhan said the company, with its wide experience in property development in Hong Kong and China, is looking for opportunities in other parts of Malaysia. - Bernama
Friday, 11 January 2013 16:47
JOHOR BARU (Jan 11): One of the largest property developers in Hong Kong, New World Development Co Ltd, has joined hands with a local partner to launch its maiden real estate project in Malaysia.
The company, which commands a 15 per cent market share in the highly competitive property market in Hong Kong, picked Luen Yum Development (M) Sdn Bhd as its partner in launching the "New World Garden" project in Plentong, Johor.
The project, offering 96 units of high-end bungalows and semi-detached luvury villas on 4.86 ha. of land, has a Gross Development Value (GDV) of RM240 million.
Slated for completion in April 2014, it is undertaken by Taipan Eagle Sdn Bhd, a joint venture company set up by New World Development and Luen Yum Development.
Michael Tam, director of Luen Yum Development, said the 92 units of semi-detached villas and four exclusive bungalows are priced from RM2.4 million to RM4 million each.
"We are targeting a mix of buyers, locals and foreigners, Singaporeans and other nationalities," he told the media at the New World Garden's launch here on Jan 11.
Construction of the luxury houses, he said, is more than 50 per cent complete. According to Tam, besides the booming Johor Baharu property market, Taipan Eagle, the local arm of New World Development, is also looking to expand its footprint into other markets in Malaysia.
Besides Hong Kong, New World Development, which is owned by Chow Tai Fook Enterprise Ltd and listed in the Hong Kong bourse, also has property projects in major cities in China such as Beijing, Shanghai, Guangzhou and Wuhan.
Meanwhile, executive director of New World Development Chen Guanzhan said the company, with its wide experience in property development in Hong Kong and China, is looking for opportunities in other parts of Malaysia. - Bernama
Hong Kong developer launches maiden project in JB
By Bernama
Friday, 11 January 2013 16:47
JOHOR BARU (Jan 11): One of the largest property developers in Hong Kong, New World Development Co Ltd, has joined hands with a local partner to launch its maiden real estate project in Malaysia.
The company, which commands a 15 per cent market share in the highly competitive property market in Hong Kong, picked Luen Yum Development (M) Sdn Bhd as its partner in launching the "New World Garden" project in Plentong, Johor.
The project, offering 96 units of high-end bungalows and semi-detached luvury villas on 4.86 ha. of land, has a Gross Development Value (GDV) of RM240 million.
Slated for completion in April 2014, it is undertaken by Taipan Eagle Sdn Bhd, a joint venture company set up by New World Development and Luen Yum Development.
Michael Tam, director of Luen Yum Development, said the 92 units of semi-detached villas and four exclusive bungalows are priced from RM2.4 million to RM4 million each.
"We are targeting a mix of buyers, locals and foreigners, Singaporeans and other nationalities," he told the media at the New World Garden's launch here on Jan 11.
Construction of the luxury houses, he said, is more than 50 per cent complete. According to Tam, besides the booming Johor Baharu property market, Taipan Eagle, the local arm of New World Development, is also looking to expand its footprint into other markets in Malaysia.
Besides Hong Kong, New World Development, which is owned by Chow Tai Fook Enterprise Ltd and listed in the Hong Kong bourse, also has property projects in major cities in China such as Beijing, Shanghai, Guangzhou and Wuhan.
Meanwhile, executive director of New World Development Chen Guanzhan said the company, with its wide experience in property development in Hong Kong and China, is looking for opportunities in other parts of Malaysia. - Bernama
Friday, 11 January 2013 16:47
JOHOR BARU (Jan 11): One of the largest property developers in Hong Kong, New World Development Co Ltd, has joined hands with a local partner to launch its maiden real estate project in Malaysia.
The company, which commands a 15 per cent market share in the highly competitive property market in Hong Kong, picked Luen Yum Development (M) Sdn Bhd as its partner in launching the "New World Garden" project in Plentong, Johor.
The project, offering 96 units of high-end bungalows and semi-detached luvury villas on 4.86 ha. of land, has a Gross Development Value (GDV) of RM240 million.
Slated for completion in April 2014, it is undertaken by Taipan Eagle Sdn Bhd, a joint venture company set up by New World Development and Luen Yum Development.
Michael Tam, director of Luen Yum Development, said the 92 units of semi-detached villas and four exclusive bungalows are priced from RM2.4 million to RM4 million each.
"We are targeting a mix of buyers, locals and foreigners, Singaporeans and other nationalities," he told the media at the New World Garden's launch here on Jan 11.
Construction of the luxury houses, he said, is more than 50 per cent complete. According to Tam, besides the booming Johor Baharu property market, Taipan Eagle, the local arm of New World Development, is also looking to expand its footprint into other markets in Malaysia.
Besides Hong Kong, New World Development, which is owned by Chow Tai Fook Enterprise Ltd and listed in the Hong Kong bourse, also has property projects in major cities in China such as Beijing, Shanghai, Guangzhou and Wuhan.
Meanwhile, executive director of New World Development Chen Guanzhan said the company, with its wide experience in property development in Hong Kong and China, is looking for opportunities in other parts of Malaysia. - Bernama
Wednesday, 9 January 2013
Property developers turn to fund raising for projects
By Farah Wahida:
SP Setia Bhd, UEM Land Holdings Bhd and Mah Sing Group Bhd, among other Malaysian property developers have embarked on a fund raising exercise in order to fund their respective projects, according to RHB Research Institute Sdn Bhd.
“But the fundraising would not be in the immediate term and we are comfortable with their purposes,” it added.
The research house also named other developers that would need financing in the medium term — IJM Land Bhd, Sunway and Eastern & Oriental Bhd.
“We also feel more comfortable given the financing purposes of these three companies,” it said.
It noted that IJM Land would use the proceeds primarily to “fund its The Light Phase 2 commercial project in Penang”, while Sunway will use it to fund the development of its property investment assets in the next three to four years, with Sunway Pinnacle, Sunway Pyramid 3 and Sunway Velocity Mall as the main property assets.
E&O, on the other hand, will use the money for the reclamation and development of Seri Tanjung Pinang 2.
The correction for the property sector ahead of the election will be less drastic considering that the 2008 selldown could be partially caused by the initial outbreak of the subprime crisis in the US, explained RHB Research.
“We expect the physical property market to recover this year, supported by our analysis on population growth cycle and our gross domestic product growth forecast of 5.4 percent for 2013, as well as the influx of liquidity,” it said.
The research house noted that foreign buying could also provide the needed boost in the overall market, as Singapore and Hong Kong continue to roll out measures to curb foreign purchases.
SP Setia Bhd, UEM Land Holdings Bhd and Mah Sing Group Bhd, among other Malaysian property developers have embarked on a fund raising exercise in order to fund their respective projects, according to RHB Research Institute Sdn Bhd.
“But the fundraising would not be in the immediate term and we are comfortable with their purposes,” it added.
The research house also named other developers that would need financing in the medium term — IJM Land Bhd, Sunway and Eastern & Oriental Bhd.
“We also feel more comfortable given the financing purposes of these three companies,” it said.
It noted that IJM Land would use the proceeds primarily to “fund its The Light Phase 2 commercial project in Penang”, while Sunway will use it to fund the development of its property investment assets in the next three to four years, with Sunway Pinnacle, Sunway Pyramid 3 and Sunway Velocity Mall as the main property assets.
E&O, on the other hand, will use the money for the reclamation and development of Seri Tanjung Pinang 2.
The correction for the property sector ahead of the election will be less drastic considering that the 2008 selldown could be partially caused by the initial outbreak of the subprime crisis in the US, explained RHB Research.
“We expect the physical property market to recover this year, supported by our analysis on population growth cycle and our gross domestic product growth forecast of 5.4 percent for 2013, as well as the influx of liquidity,” it said.
The research house noted that foreign buying could also provide the needed boost in the overall market, as Singapore and Hong Kong continue to roll out measures to curb foreign purchases.
Bright 2013 for property market
By Farah Wahida:
Spurred by the solid banking system and catalytic projects under the Economic Transformation Programme (ETP) and in the economic corridors, the property market will grow further in 2013, said TA Securities.
“Catalytic projects such as the Klang Valley MRT and public-private partnership developments like the PJ Garden Sentral in Petaling Jaya, Rubber Research Institute land in Sungai Buloh and Bandar Malaysia in Sungai Besi are envisaged to continue to excite the property market,” noted Thiam Chiann Wen, Research Analyst with TA Securities.
In TA Securities’ 2013 Annual Strategy: 2013 Outlook – Ride the Volatility report, it said, “We reiterate our view that the multibillion-ringgit MRT project will be a long-term driver for housing demand and property prices in the Klang Valley, particularly in Kajang and Sungai Buloh”
For instance, Johor has enjoyed an influx of investments into Iskandar Malaysia (IM), amounting to RM20.4 billion for the 11 months of 2012. This increased the total cumulative committed investments into the region and translated to high economic activity and jobs.
Currently, Iskandar is also enjoying boosted housing demand, said Thiam Chiann Wen.
Meanwhile, the Bank Negara Malaysia’s newly-introduced responsible financing guidelines have affected property growth, reflecting 48 percent decline in mortgage approval rates for the period up to October 2012.
Nevertheless, the total number of mortgage applications at the same period increased 3.4 percent year-on-year, which could mean that buyers remain optimistic amid stricter lending guidelines.
Spurred by the solid banking system and catalytic projects under the Economic Transformation Programme (ETP) and in the economic corridors, the property market will grow further in 2013, said TA Securities.
“Catalytic projects such as the Klang Valley MRT and public-private partnership developments like the PJ Garden Sentral in Petaling Jaya, Rubber Research Institute land in Sungai Buloh and Bandar Malaysia in Sungai Besi are envisaged to continue to excite the property market,” noted Thiam Chiann Wen, Research Analyst with TA Securities.
In TA Securities’ 2013 Annual Strategy: 2013 Outlook – Ride the Volatility report, it said, “We reiterate our view that the multibillion-ringgit MRT project will be a long-term driver for housing demand and property prices in the Klang Valley, particularly in Kajang and Sungai Buloh”
For instance, Johor has enjoyed an influx of investments into Iskandar Malaysia (IM), amounting to RM20.4 billion for the 11 months of 2012. This increased the total cumulative committed investments into the region and translated to high economic activity and jobs.
Currently, Iskandar is also enjoying boosted housing demand, said Thiam Chiann Wen.
Meanwhile, the Bank Negara Malaysia’s newly-introduced responsible financing guidelines have affected property growth, reflecting 48 percent decline in mortgage approval rates for the period up to October 2012.
Nevertheless, the total number of mortgage applications at the same period increased 3.4 percent year-on-year, which could mean that buyers remain optimistic amid stricter lending guidelines.
Wednesday, 2 January 2013
Transaction costs are very high in the Philippines
How high are realtors’ and lawyers’ fees in the Philippines? What about other property purchase costs?
TRANSACTION COSTS | ||
| Who Pays? | ||
| Legal Fees | 5.00% - 10.00% | buyer |
| Local Transfer Tax | 0.50% - 0.75% | buyer |
| Deed of Sale | 0.225% - 0.50% | buyer |
| Capital Gains Tax | 6.00% | seller |
| Real Estate Agent´s Fee | 3.00% - 5.00% | seller |
| Document Stamp Tax | 1.50% | seller |
| Costs paid by buyer | 5.73% - 11.25% | |
| Costs paid by seller | 10.50% - 12.50% | |
| ROUNDTRIP TRANSACTION COSTS | 16.23% - 23.75% | |
| See Footnotes Source: Global Property Guide | ||
How difficult is the property purchase process in the Philippines?
Foreigners cannot own land, but can own condominium units or apartments in high-rise buildings as long as the foreign proportion does not exceed 40%. They can also buy a house but not the land on which it is built. Leases on land up to 50 years, renewable for another 25 years, are available.
If a foreigner is keen on acquiring land, there are several options. One, if married to a Filipino citizen, is to have the ownership of the land under the Filipino’s name. However, in the event of death or separation, the land cannot be transferred to the foreigner. Another option is to acquire land through a corporation. Corporations can only be, at the maximum, 40% foreign-owned.
The maximum area that may be acquired for residential purposes is 1,000 square meters of urban land or one hectare of rural land.
When buying new property, it is important to look for properties backed by established developers and licensed real estate agents/ brokers, especially in cases of off-plan or pre-selling (the property is at the planning stages and non-existent during the time of the sale).
In general, property can be acquired by simple agreement. After deciding what property to buy as well as inspecting the premises and documents, the buyer usually signs a binding notarized Deed of Sale. Employing the services of a reputable sales agent is convenient because they not only provide vital information regarding the transaction and property, but also assist the buyer in getting mortgage loans.
Buying condominiums
A down payment of 10%-30% is usually required. Ownership of condominium units is evidenced by the Condominium Certificate of Title (CCT) but the transfer of title is usually not executed until the property is fully paid. Foreigners can only own up to 40% of a condominium project.
Holders of Special Resident Retiree’s Visa (SRRV), a non-immigrant resident visa, can get additional benefits aside from being allowed to buy a condo unit or lease a parcel of land or a house and lot. The SRRV holders can reside in the Philippines permanently, with multiple-entry privileges and zero travel taxes. Other benefits and information about the SRRVisa is available on the Philippine Retirement Authority Website.
Buying land
The process of buying land in the Philippines is cumbersome and tedious. Aside from the fact that foreigners are not allowed to buy land, the system of land registration and classification should make any investor think twice. The farther you are from the capital the more caution one must take.
However, serious land problems also exist in the NCR. There are 11 laws directly related to land registration and nine others indirectly related to land disposition and administration. Aside from the Department of Environment and Natural Resources and the Bureau of Lands, there are several agencies that have direct and indirect control over land. The courts also have the authority to award land ownership.
Legal Procedures in transfer of title (land and apartments)
- Owner and Buyer agree on sale of a piece of land. Through a lawyer, a Deed of Absolute Sale (DOAS) is created and notarized.
- A Land Tax Declaration is secured from the Bureau of Internal Revenue (BIR) and submitted to the city or municipal Assessor’s office.
- Buyer pays real estate tax to the City Treasurer’s Office.
- The Assessors office assesses the market value of the property.
- Transfer taxes are paid by the buyer to the Assessors Office.
- Capital Gains Tax and Documentary Stamp tax are paid to BIR.
- The Registry of Deeds (RD) cancels old title and issues a new one in the name of the buyer.
- The buyer, now the new owner, obtains a photocopy of the new title and requests tax declaration from the Assessors office.
Ownership is evidenced by the Transfer Certificate of Title (TCT) in the case of single houses and raw land, and The Land Registration Act requires the owners of property to register titles with the Registry of Deeds. The titles must be registered in the same province as the property. However, the records are inaccurate in such that overlapping might exist. There is a proliferation of fake and double titles. The completion of survey of all the lands in the country, mandated by the 1903 Public Land Law, is nowhere in sight.
The whole process of registering property may take around 33 days to complete eight procedures.
Value Added Tax
According to RA 9337, the following sales of property are VAT-Exempt
- Sale of real properties not primarily held for sale to customers or held for lease in the ordinary course of trade or business;
- Sale of real properties utilized for low-cost housing as defined by R.A. No. 7279, otherwise known as the “Urban Development Housing Act of 1992” and other related laws, such as R.A. No. 7835 and R.A. No. 8763 wherein the price ceiling per unit is P750,000.00 or as may from time to time be determined by the Housing and Urban Development Coordinating Council (HUDCC) and the National Economic Development Authority (NEDA);
- Sale of real properties utilized for socialized housing as defined under R.A. No. 8763, wherein the price ceiling per unit is P225,000.00 or as may from time to time be determined by the HUDCC and the NEDA and other related laws;
- Residential lot valued at one million five hundred thousand pesos (P1,500,000) and below, house and lot, and other residential dwellings valued at two million five hundred thousand pesos (P2,500,000) and below: provided, that not later than January 31, 2009 and every three (3) years thereafter, the amounts herein stated shall be adjusted to their present values using the Consumer Price Index, as published by the National Statistics Office (NSO).
Deed of Sale | |||
| Registration Fees | PHP 4,398 (US$88) + PHP 45 (US$0.90) for every PHP 20,000 (US$400) in excess of PHP1,700,000 (US$33,900) | ||
| Notarial Fees | PHP200 (US$4) per title or document | ||
| Registration Fees | PHP | US$ | |
| Property value | 12,500,000 | 250,000 | |
| Value in excess of 1,700,000 | 10,800,000 | 215,000 | |
| PHP45 for every 20,000 | 24,300 | 485 | |
| Plus fixed amount | 4,398 | 88 | |
| Plus notarial fees | 200 | 4 | |
| Total Fees | 28,898 | 577 | |
| as % of property value | 0.231% | 0.231% | |
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Currency:Philippines uses the Philippine Peso. The exchange rate was US$1 = PHP52.742 as of July 6, 2006.
Local Transfer Tax:Imposed by Municipal or City governments. 0.5% to 0.75% of the contract price, zonal value or fair market value, which ever is higher.
Legal Fees:Negotiable; generally at PHP20,000 and up. In some instances, legal fees can reach up to 10% of property value.
Capital Gains Tax:The capital gains tax on sale of real property is levied at 6% of gross selling price or fair market value, whichever is higher. What is referred to as Capital Gains Tax is actually a local transaction tax, which is usually based on zonal values. Who actually pays the transaction costs is also dependent on the agreement between the buyer and the seller. In some instances, either the buyer or seller pays all the taxes and fees but the cost is debited or charged to the sale price.
Real Estate Agent´s Fee:The Agent / Broker will usually do the registration process without any additional payments aside from the commission (3 -5%.)
Documentary Stamp Tax:PHP15 (US$0.30) per PHP1,000 (US$20) of consideration or 1.5%.
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