Solid demand for Kuantan homes despite Lynas

By Farah Wahida:

Kuantan is expected to attract more house hunters and renters despite the controversial Lynas Rare Earth Plant, according to the Real Estate Housing Developers Association (REHDA Pahang branch).

Not a single buyer was concerned about Lynas when they acquired a property in Kuantan, said Cheoh Chee Guan, Chairman of REHDA Pahang.

“Nobody asked any question about it (Lynas) at all. This is reflected in brisk demand for houses in areas like Balok which are priced between RM150,000 to RM180,000 per unit.”

Moreover, Kuatan’s property market is generally stable and prices are growing slightly since 2011, noted Cheoh, adding that 8,000 houses (new and old) were sold in 2012. In particular, “Balok (near Gebeng) is popular among house buyers as most of the units are single storey and within their budget.”

Aside from the establishment of new industries and factories in Gebeng, the launch of the Malaysia-China Kuantan Industrial park (MCKIP) is also expected to cause an influx of workers, which would fuel the demand for residential properties.

Specifically, top executives and highly-qualified technical employees would prefer expensive units in the town area that are priced from RM180,000 to RM420,000, while the more costly apartments and bungalows will be sought-after by expatriates.

“As for general workers, they will normally seek affordable houses in Gebeng and Balok, and with-in the next three to five years, there will be a significant rise in demand when MCKIP is in full operation.”

The rental market is also expected to flourish thanks to the entry of general workers.

“At present, rental fees are stable at between RM700 and RM2,000 per unit but this will change as new workers come and seek temporary residence in Kuantan,” he added.

KL to release rules on affordable housing

By Farah Wahida:

In a bid to invite more people to live in Kuala Lumpur, a set of guidelines for affordable housing in the city will be released by the end of February, said Kuala Lumpur Mayor Datuk Seri Ahmad Phesal Talib.

The Kuala Lumpur City Hall (DBKL) and The Federal Territories and Urban Wellbeing Ministry are now in the final stage of preparing said guidelines.

“The concept of affordable housing is meant for the middle-income earners as they are not entitled to buy low-cost houses and, at the same time, cannot afford high-end units... Therefore, controlling the price and setting specific sizes are among the guidelines,” noted Ahmad Phesal.

“Developers will be required to build units priced below RM300,000, with a built-up area of at least 800 sq ft.”

“We have started imposing such guidelines for some joint-venture housing projects,” he noted.

Three areas across KL have been identified as sites to develop affordable homes. Among these is a 1.6ha land in Sungai Besi that will yield around 300 affordable homes.

“Other projects in the midst of discussions include a joint-venture with Berjaya Group in Desa Tasek, and with another company developing more than 250 units in Setapak.”

Over at Setapak, a developer would set aside 50 percent of a project’s units for affordable homes leaving the rest as luxury homes, he added.

Property sector to pick up after GE

By Farah Wahida:

Malaysia’s property market is expected to improve after the 13th general election (GE), according to Tan Sri Leong Hoy Kum, Group CEO and Group Managing Director of Mah Sing Group.

“After the GE, I believe the property market will be more vibrant. There’ll be government land ready for tender such as the Rubber Research Institute Malaysia land in Sungai Buloh that we’re keen.”

Malaysia is also doing well compared to other countries, and as far as Mah Sing is concerned, it is business as usual, he said after the group’s extraordinary general meeting (EGM) held yesterday.

At the meeting, shareholders also approved the company’s proposed renounceable rights issue with free warrants to raise up to RM400 million. This also includes a one for every five share bonus issue for stockholders.

The fund raising exercise will partly finance the group’s property projects, including working capital and land acquisition costs. The new warrants and shares are also expected to be listed by March.

Presently, Mah Sing is Malaysia’s second biggest developer by sales value, and is eyeing RM3 billion worth of sales this year.

For 2013, its sales will be boosted by six new property launches with a combined gross development value of RM7.4 billion. They include Sutera Avenue in Kota Kinabalu, The Meridin@Medini in Iskandar, Mah Sing iParc@Tanjung Pelepas, Ferringhi Residence in Penang, as well as Klang Valley’s Southville City and M Residence 2.

The group is also assessing new landbanks in Penang, Klang Valley, Johor Bahru, Kota Kinabalu and Greater Kuala Lumpur for new acquisitions this year.

MBSB eyes new product for foreign property buyers

By Farah Wahida:

Spurred by hot buying demand, Malaysia Building Society Bhd (MBSB) will offer ringgit-denominated loans to locals and expatriates keen on overseas properties, particularly in the UK and Australia markets.

According to MBSB President and Chief Executive Officer Datuk Ahmad Zaini Othman, they are now exploring the possibilities of launching a new product, probably by this year.

“We are just exploring the market right now. So, we cannot give a number at present. I think there would be potential for the niche market, the high net worth individuals.”

Notably, MBSB achieved a 53 percent gain in pretax profits to RM656.2 million for 2012. This was buoyed by the culmination of transformation initiatives done in four years, said Ahmad Zaini.

Moreover, opening new income streams in 2010 through a new retail business has supplied the bulk of fee-based income. Recovery and collection was also supported by the computerisation process as well as technological upgrades.

“We are able to dissect and understand our customer base better. Earlier, we did not have this capability. It was like flying a plane without radar,” noted Ahmad Zaini.

Malaysian SPV to put up RM2.4bil Bangladesh project

By Farah Wahida:

Two Malaysian companies will form a special purpose vehicle (SPV) to undertake a RM2.4 billion development project in Bangladesh, according to Datuk Seri S. Samy Vellu, Special Envoy to India and South Asia.

Samy Vellu said the SPV would sign two memoranda of agreement (MoA) for the construction of the development which will comprise 140 blocks of 16-storey flats at Uttara in Dhaka, Bangladesh.

“We have identified the two companies. Within the next two to three months, we would be signing the memoranda,” he said in a report by Bernama.

He also said that Malaysia is currently under the final stage of submitting the drawing plans for the development of a 40.5ha land in Andra Pradesh, adding that the RM3 billion project would be a milestone for Malaysian contractors following its approval.

“I have spoken to India's Minister of Housing and Urban Poverty Alleviation. He was very interested with our plan and I am hopeful that it will be approved.”

Meanwhile, Malaysian contractors are also said to secure a 1,400km road construction project in South Sudan which would connect Juba with Djibouti and Ethiopia.

Subang Jaya Giant hypermarket gets new life

By Farah Wahida:

The Giant hypermarket in Subang Jaya, Selangor will reopen today following the completion of a RM80million renovation that lasted nearly two years, according to GCH Retail (M) Sdn Bhd, the supermarket’s owner and operator.

The former one-storey outlet was redeveloped into a three-level one-stop shopping centre, with anchor tenant Giant hypermarket now occupying almost 80,000 sq ft, said Ian Cruddas, Commercial Director at GCH Retail.

Notably, the shopping complex was the first local hypermarket in Malaysia and was known as the Giant Cash & Carry during its opening in April 1994. However, its owner decided to redevelop it in 2010.

“The needs of our customers have evolved over the years. So have their tastes and shopping habits,” noted Cruddas during the opening preview of Giant Hypermarket yesterday.

“We assigned our team to create and design a new mall that would offer complete retailing solutions in a holistic manner to cater to everyone in the family including the young and the old.”

Thanks to its significant makeover, Giant Subang Jaya Mall will continue to be the choice one-stop shopping destination for Subang Jaya residents as well as those from nearby areas, said the company.

Beside Giant hypermarket, the shopping complex also houses 60 other tenants, which offer various products such as apparels, beauty care, hi-tech gadgets, food and beverages and financial services.

Cruddas revealed that GCH Retail eyes seven new Giant outlets this year and will also upgrade 15 existing Giant outlets in Malaysia.

Iskandar woos investors from Surabaya, Indonesia

By Farah Wahida:

A delegation from the Iskandar Regional Development Authority (IRDA) is headed to the business community of Surabaya, Indonesia between 31 January and 1 February to promote Iskandar’s investment potential.

This follows IRDA’s active promotion of the economic region to Indonesia’s business communities in Jakarta, Bali and Makassar. Notably, IRDA Chief Executive Datuk Ismail Ibrahim and Johor Chief Minister Datuk Abdul Ghani Othman will head the delegation.

The mission aims to brief Indonesian investors on areas of Iskandar where they can invest, said Syahril Syazli Ghazali, Economic Advisor at the Malaysian Embassy in Jakarta.

“Among the areas with potential to attract investments from Indonesia are the creative industries, hospitality, theme parks, logistics as well as financial and health services.”

The delegation will also meet up with individuals from the local business community including members of trade councils and business chambers, he said, adding that Iskandar can easily attract investments from Indonesia if IRDA can offer special incentive packages for the investors.

At present, many Indonesian tourists are visiting Iskandar Malaysia, especially after the opening of the LEGOLAND, Johor Premium Outlets and the Puteri Harbour Family Theme Park.

Specifically, tourist arrivals from the country rose to 2.3 million in 2012 compared to 2.1 million during the previous year.