Malaysia’s housing market to pick up first half of year 2012

The Malaysian housing market is expected to pick up in the first half of 2012 with buyers and developers showing more confidence in the Malaysian market.

A Real Estate and Housing Developers’ Association Malaysia (Rehda) survey found that 79 per cent of the 148 developers who responded were optimistic of the first six months of this year compared with 81 per cent in the second half of 2011. Some 63 per cent said they will launch new projects in the first six months of this year, against 58 per cent in the preceding six months.

Seventy-four per cent of the respondents said they will increase their selling prices by five per cent to 20 per cent this year. The survey also showed that 38 per cent of respondents are facing challenges with building materials, particularly the pricing of bricks, cement and steel bars, and it is having an impact on their cash flow.

Datuk Seri Michael K.C. Yam, president of the Real Estate and Housing Developers’ Association Malaysia (Rehda), outlines what are the major challenges and reasons for increasing prices in the housing market.

“This is due to the high costs of building materials and labour, which continues to be major challenges for the industry. Land cost is also increasing and we have no choice but to pass it on to customers as our margins are eroding,” Yam said.

Link House At Bukit Sentosa Rawang For Sale

Subject Property:-

ID NUMBER : MYS - RLH(S) 2


SALE PRICE

• Ringgit Malaysian One Hundred Thousands ( RM100,000. ) only.    SOLD !!

LOCATION

• Located at Jalan Angerrik 3C/1 Section BS7 Bukit Sentosa township,within vicinity of upcoming new Tesco superstore completing in June 2011;
• Next to Bukit Beruntung development ;( Google Site Map link http: Unavailable )

PROPERTY DESCRIPTIONS

• Property Type : Terrace Link House;
• Occupancy : Vacant;
• Land Area : 20' X 70'; 
• Tenure : Freehold;
• Front  View Direction : North;
• Bedrooms :  4;
• Bathrooms : 3;

• Position : Intermediate;
• Number of Storey : Two;
• Condition : Repair Work Needed;
• Free from encumbrances 
• Amenities :  Eateries, Groceries Shops, etc;  
• Furnishing : Nil

Please quote ID number above when contacting us
Contact : Alvyn Goh at 6 016 3111313

                 Senior Real Estate Agent

Email: inter.realestate.network@gmail.com

Disclaimer of Liability

Note that any properties listed as available at this material time for sale or rent herein may at any time be withdrawn, sold or rented out without any prior notice for any reason(s) whatsoever and our real estate agency or our agents shall not be held any liability whatsoever to prospective Purchaser or Tenant for the reasons specified above of such withdrawal.

The photographs shown and informations provided herein are solely for general identification and genuinely in good faith provided to be true at this material time. However, our real estate agency and agents make no representation or warranty as to their absolute accuracy or the actual condition of the property(ies).

Link House At Bukit Sentosa Rawang For Sale

Subject Property:-

ID NUMBER : MYS - RLH(S) 1


SALE PRICE

• Ringgit Malaysian One Hundred Forty Thousands ( RM140,000. ) only.               SOLD !!              

LOCATION

• Located at Jalan Angerrik 3C/1 Section BS7 Bukit Sentosa township,within vicinity of upcoming new Tesco superstore completing in June 2011;
• Next to Bukit Beruntung development ;( Google Site Map link http: Unavailable )

PROPERTY DESCRIPTIONS

• Property Type : Terrace Link House;
• Occupancy : Vacant;
• Land Area : 20' X 70' with extra 826 sf back & side land; 
• Tenure : Freehold;
• Front  View Direction : North;
• Bedrooms :  4;
• Bathrooms : 3;

• Position : Corner;
• Number of Storey : Two;
• Condition : Minor Repair Work Needed;
• Free from encumbrances; 
• Amenities :  Eateries, Groceries Shops, etc;  
• Furnishing : Nil

Please quote ID number above when contacting us
Contact : Alvyn Goh at 6 016 3111313

                 Senior Real Estate Agent

Email: inter.realestate.network@gmail.com

Disclaimer of Liability

Note that any properties listed as available at this material time for sale or rent herein may at any time be withdrawn, sold or rented out without any prior notice for any reason(s) whatsoever and our real estate agency or our agents shall not be held any liability whatsoever to prospective Purchaser or Tenant for the reasons specified above of such withdrawal.

The photographs shown and informations provided herein are solely for general identification and genuinely in good faith provided to be true at this material time. However, our real estate agency and agents make no representation or warranty as to their absolute accuracy or the actual condition of the property(ies).

Will the slowdown in property prices continue?

Yes.

In all likelihood, there will just be slower growth across the board for the mere fact that the last three years have seen exceptional growth since 2008, when the global crisis hit. The following year saw a recovery and 2010 was a year of exceptional growth. Property professionals had never seen such price increases in their 30 years in the profession, where prices went up by double digits in a short period of time.

This year witnessed continued exuberance among developers, agents and property buyers. The final two quarters usher us into 2012, which will be the year of the “great slowdown”.

It will be perceived as such because of the remarkable growth experienced in 2010, but in reality, it is not really a slowdown. It is not possible for prices to go up, up and away until kingdom come.

There has to be a reality check. So we will see slower growth in the coming year. In some locations, prices may hold their ground, but unless something major happens, whether at home or abroad, prices are unlikely to recede in the Klang Valley and other major cities.

Hence, it is not that there will be no growth; price increases next year will be slower, and more subdued and stable. In some locations, prices may plateau.

If there is still growth, however small, why call 2012 the year of the great slowdown?

On the global front, we have the eurozone crisis, which is still unravelling. If the eurozone breaks up, it will affect sentiments. The stock market will be the first to be impacted by the dim outlook and this will spill over into the property sector.

Of greater concern are individuals who have over-invested. They may find it challenging to meet their commitments. These include those who have multiple property purchases, and young people who over-committed themselves with properties costing RM500,000 and more

Property Sector Moving To Readjust

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 this 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.

Affordable housing agenda

1MDB plans to bluild 10,000 affordable housing units in the Klang Valley in the next 10-15 years.

1MDB plans to start off Bandar M’sia project with units priced from RM220,000-RM300,000

PETALING JAYA: 1Malaysia Development Bhd (1MDB) will kick- start the development of the Bandar Malaysia project in Sungei Besi with the launch of affordable housing units within the next one to two years, said senior vice-president, of planning, development and real estate, Juraimi Azahar Taharin.

Juraimi said the 1MDB affordable housing concept, complete with a prototype unit, would be unveiled soon to seek input from the public as part of its information gathering exercise to find out the facilities that were needed to best serve the target buyers.

“One of the purposes of this feedback exercise is to align the developer's plan with what the market requires. What we have in mind is to build housing units of between 800 sq ft and 1,000 sq ft at an estimated price of RM220,000 to RM300,000. Both are subject to the findings of the survey,” Juraimi told StarBiz.

Juraimi says a protype affordable housing unit of Bandar Malaysia will soon be unveiled to the public.

He said 1MDB's affordable housing programme was aimed at providing modern and quality affordable living in the city for young families.

“One of the key focus will be on sustainable development and facilities for child care and transit centres for the young and older children,” he said. He added that 1MDB was working with PRIMA for its affordable housing schemes, and was looking to build 10,000 affordable housing units in the Klang Valley over the next 10 to 15 years.

The locations for the housing projects are currently being finalised, but one of the main criteria is that they have to be in areas that have easy accessibility and connectivity. The scheme is open to all Malaysians with household monthly income of less than RM6,000 and they are buying their first house for their own occupancy.

1MDB is a government-owned master developer for the redevelopment of the 495-acre Bandar Malaysia in Sungei Besi, which used to be the base for the Royal Malaysian Air Force (RMAF).

The developer signed a sale and purchase agreement in June with the Federal Land Commissioner for the transfer of the 495 acres of Sungai Besi airport land to 1MDB.

The mixed development project with livability and sustainability as its distinctive characters, aims to be a new and vibrant landmark that reflects the aspirations of a Greater Kuala Lumpur.

1MDB is working with the Malaysian Institute of Planners in organising an international master planning design competition for Bandar Malaysia that is open to local and international urban planners.

The key principles to be included in the plans are planning and design; ecological footprint; infrastructure; diverse housing solutions; transportation; open space, parks and green density; innovation in land structure; urban solutions; technology; history and culture.

The result, expected to be announced in July next year, will be the basis for Bandar Malaysia's urban planning. Juraimi said the priority was to ensure the relocation process of the RMAF base went on smoothly. The relocation process will be done over several years in several phases.

1MDB has to ensure that RMAF has an appropriate place to move their assets and operations, as well as they are comfortably functional at the new location.

“Discussions with regards to the relocation is on-going with the help of Malaysian Armed Force Fund Board and areas such as Subang, Sendayan, Butterworth as well as Kuantan have been identified for the purpose,” he added.

Australian property 'expected to recover in 2012'

The majority of property markets in Australia are expected to undergo a recovery during 2012, according to a new report. Australian Property Monitors (APM) has released its State of the Market survey for December this year, noting overall during 2011 "housing markets entered a correction phase with income growth required to catch up with the finance requirements for home purchases". The organisation added that natural disasters, coupled with low confidence among consumers and a mixed economic performance for the country, have resulted in fewer buyers entering the Australian real estate market. However, APM is predicting a better performance in 2012, citing anticipated economic growth and rising demand for residential properties as two catalysts that can boost the sector. Meanwhile, the firm also expects more interest from investors over the coming 12 months and has asserted average house prices in the country will climb by between three and five per cent in this period. However, Professor from the University of Western Sydney Steve Keen recently predicted in an interview with the Sydney Morning Herald that Australian property prices will fall in 2012, stating the "acceleration of mortgage debt" will push values lower.

Influx of office space in Klang Valley worsens oversupply situation

KUALA LUMPUR: An influx of office space in the Klang Valley is putting a downward pressure on yields.

Property consultants said the entry of more office space was making the oversupply situation worse.

However, they said the situation could be remedied should the economy perform better, thus keeping demand afloat.

“In certain areas, yields will be pressured downward because of the glut situation. But this is also highly dependent on the location of the offices. Those located in prime areas will have less chance of coming under yield pressure,” DTZ Debenham Tie Lung executive director Brian Koh told StarBiz.

Khong & Jaafar managing director Elvin Fernandez said that the slightly higher vacancies this time around was “not too abnormal a situation”.

“The thing about property cycle is that there can be a glut today but this oversupply condition can be offset if demand returns. I do not view it as being serious,

“However, there could be a lot more supply that would flood the office space sector in the medium to long term,” he said.

There were 20 million sq ft of vacant space in the Klang Valley, 22.5 million sq ft of office space under construction and 25 million sq ft which had been approved for construction.

The Government recently earmarked several areas for commercial development such as the KL International Financial District in Jalan Tun Razak, the 100-storey Warisan Merdeka, the Sungai Besi military airport and the Rubber Research Institute land in Sungai Buloh which are expected to come onstream within the next 10 years.

Meanwhile, a report by CB Richard Ellis released earlier this month revealed that office yields in Kuala Lumpur prime area had been flat from 2005 until 2011, ranging from a low of 6.25% to a high of 6.75%(see chart).

The report also showed the office space vacancy rate in the Klang Valley was under 13% on an average basis, which consultants said could rise once new space came in with the completion of several mega projects.

“With all the large-scale development projects coming in, we are looking at a potential oversupply situation but if the economy does exceptionally well despite the problems in the eurozone, this problem would ebb,” said Koh.

Vacancies had risen during the 2008 global financial crisis in prime office spaces and rental rates had been on a slight decline.

The prevalent trend among corporates was to move their bases away from the city centre into newer office buildings within other established suburbs such as Petaling Jaya and Klang as many of the workers lived in these suburbs.

“After the My Rail Transit has been completed, office development would focus back to the city centre as long as they are affordable and corporates can make a decent profit even after paying off these leases. I expect this trend to reverse and that Kuala Lumpur will remain at the primacy of development in the Klang Valley,” Fernandez said.

Angkasa Raya mixed-use tower is set to spice up KL’s skyline

The 65-storey Angkasa Raya tower is the newest mixed-use development to break Kuala Lumpur’s skyline, comprising hotel rooms, offices and apartments.

Designed by Ole Scheeren, the famed architect behind such landmarks as the CCTV headquarters in Bejing, envisaged the building to be constructed out of three interconnected slabs which wist into spirals, in hopes that the design will alter the perception of what a skyscraper can be.

The design is uniquely crafted to challenge the Petronas Twin towers and such in the vicinity, adding to the dramatic skyline of the city.

Angkasa Raya will feature 280 residential units including studios, one to three bedroom apartments and duplexes, along with penthouses, and amenities such as landscaped gardens.

The Agkasa Raya tower is due to be finished by 2016.