Malaysia’s Mutiara Goodyear buys prime Kuala Lumpur land

Malaysia’s Mutiara Goodyear Development is buying 1.42 hectares of prime land along Jalan Sultan Ismail in Kuala Lumpur from UDA Holdings for RM215.5 million (US$70.7 million) in cash.

The purchase of the land will be funded via internal generated funds and bank borrowings, said Mutiara in a statement Wednesday as reported by national news agency Bernama.

The site, strategically located next to the Sheraton Imperial Hotel and connected to the Medan Tunku Monorail Station is earmarked for a high-rise commercial development, the statement added.

The development is estimated to carry a gross development value (GDV) of more than RM1 billion (US$328.13 million) and will bring new breath to the development near the Asian Heritage Row.

Executive chairman Hamidon Abdullah described the acquisition as an opportune time to replenish the company’s land bank and further boost shareholders’ value.

Including the new land, Mutiara will have a total landbank of approximately 400 hectares with a GDV of RM6 billion (US$1.96 billion) when fully developed.

“This will be our maiden up-market high-rise project in Kuala Lumpur. We look forward to set a new record of excellence,” Hamidon added.

The development is expected to commence over the next 12 months and will be developed in phases over the next five years

Aussie homeowners adopt cautious view of property market

A new survey of Australian homeowners and investors has found that less than half of the country's population believe that now is a good time to buy real estate.

High living costs, interest rate rises and volatile prices are all weighing on potential buyers' minds and have helped to create a cautious environment.

The research, by Homeloans Ltd, comes after it was reported last week that house prices in Australia  are falling.

Meanwhile, property hunters looking for real estate down under may be interested to learn that Brisbane is the cheapest place in the country to purchase a home.

This is according to Australian Property Monitors, which noted that in the March quarter the average house price in Brisbane was $448,669, compared with $452,546 in Adelaide, the Australian reports.

It has been a slow and steady decline for Brisbane, with houses falling by 4.3 per cent over the past 12 months, a figure which has been compounded by the recent floods.

Hong Kong — The time to buy is high

Hong Kong real estate billionaire Li Ka-shing stressed that potential homeowners should act quickly to take advantage of low interest rates and inflation pushing prices higher, according to the South China Morning Post.

“For personal use, with adequate funds for a 30 per cent to 40 per cent down payment, buying property should not be a wrong move,” advised Li.

His comments may strengthen the nerves of potential buyers after Hong Kong’s Chief Executive Donald Tsang Yam-kuen expressed surprise at the rapid rise in home prices.  Speaking to the Legislative Council, Tsang said the government would do all it could to curb property prices.

Li’s conviction is based on currently low interest rates, rising inflation and construction costs.  “It is unlikely that interest rates will rise this year,” said the Cheung Kong (Holdings) chairman. “Even if the rate does increase, the maximum increase is 50 basis points.”

Deputy chairman Victor Li Tzar-kuoi said the positive market was supported by strong demand.

According to Centaline Property Agency, housing prices in Hong Kong are at 97.44 per cent of 1997′s peak level. This is 10 per cent higher than last November, when the government announced anti-speculation measures to cool home prices.

Chairman Li said the practical way to stabilise the market was to expand supply. “Apart from residential sites, [supplies of] commercial sites also need to increase,” he said.

But he also warned of the risk of oversupply and increases to a level that hurt the property market.

Hong Kong had enjoyed a low-tax environment for years because the property sector contributed a major part of the government’s revenues, he added. If the property market collapsed, the government wouldn’t have the revenue. Then other taxes would increase, Li said.

Li also said the company had no immediate plan to spin off the group’s other businesses. Even if it did, retail operations would not be considered in such a move, Li said.

Cheung Kong (Holdings) last month spun off Hui Xian Real Estate Investment – which owns Beijing Oriental Plaza in Hong Kong – as the first yuan-denominated share offering outside the mainland.

But it had a less-than-stellar debut, with shares dropping 9.35 per cent on their first day of trading.

Singapore home prices reaching record highs

With 1,788 homes sold in April, representing a 29 per cent increase and a five month high, Singapore is emerging as a safe destination for investment. Unaffected by the devastating earthquake in Japan and far away from the political revolt sweeping the Middle East, Singapore is seeing home prices reach record highs, according to Bloomberg.

With an annual growth rate projected at 23.5 per cent after the first three months of this year, the Singaporean government began to enact new rules and regulations to cut back speculation. However, the utility of these measures is questionable; with a similarly booming housing market in Hong Kong the government there put similar measures into place, but residential sites are still selling at exorbitant prices. Likewise, growth in Singapore has continued.

Part of the reason for this continued growth, despite government measures, is the nature of the regulations in that they are mainly targeting short-term buyers. For those looking for a long term investment the new rules will have little effect, but those who seek to “flip” the property shortly after buying may want to look elsewhere.

With prices still rising, the government has stated a plan to introduce further measures if the price of homes continues to grow. However, it is possible this may not be necessary. Even with home prices rising for seven straight quarters now, the most recent quarter saw the smallest rise.

Singapore premium development sites for sale

A number of high profile development sites have been put up for sale by tenders in Singapore. The sites include an ultra-prime residential development, Elizabeth Tower, in the Orchard Road area and a Shenton Way commercial property. Elizabeth Tower off Orchard Road is considered one of the two dozen ultra-prime residential sites in the area and has been put up for collective sale with an asking price of S$630 million (US$509 million). The development has a land area of more than 54,000 sq ft, with 80 units sized at 2,000 sq ft to above 3,100 sq ft.

Talking to Today, marketing agent Credo Real Estate said Elizabeth Tower would be ideal for a new super-luxurious high-rise condominium. Residents stand to receive between S$6.3 million (US$5 million) and S$9.7 million (US$ 7.8 million), with penthouse owners pocketing at least S$14.2 million (US$11.5 million) from the sale. If redeveloped, Elizabeth Tower can become a 132-unit apartment building with an average size of 2,000 sq ft per unit. The tender will close in the afternoon on June 22.

The Shenton Way commercial development site comprises a four-storey podium and a 17-storey office tower with an existing gross floor area of 210,729 sq ft. It sits on a land area of 19,737 sq ft. DTZ, the marketing agent said that the property could be redeveloped into a 32-storey “commercial and residential” project at a plot ratio of 10.677.

The tender closes on June 23.

Listing plan for Pavilion KL

Sources say that the assets under Pavilion Kuala Lumpur could be worth between RM4 billion and RM5 billion.

Kuala Lumpur: Datuk Desmond Lim Siew Choon is preparing to list Pavilion Kuala Lumpur, in what could be Malaysia's largest initial public offering of a real estate investment trust (REIT), sources said.

While details of the REIT are still sketchy, sources said that the assets under it could be worth between RM4 billion and RM5 billion.

Others, however, said the asset size may not be that large but its market capitalisation could be comparable to that of Sunway Real Estate Investment Trust (SunREIT).

SunREIT, listed last year, is the country's largest REIT with properties valued at about RM3.7 billion and a market capitalisation of RM2.98 billion as of yesterday.

Business Times understands that Pavilion KL's listing could happen as early as end-2011 and will include the retail portion of the mixed development.

It is also believed that CIMB Investment Bank, Credit Suisse and Maybank Investment will be involved in the deal.

Lim, who controls Malton Bhd, developed the mall via Malton's subsidiary Kuala Lumpur Pavilion Sdn Bhd.

The mall is owned by Urusharta Cemerlang Sdn Bhd, which is 51 per cent-owned by Urusharta Cemerlang Development Sdn Bhd and 49 per cent by Qatar Investment Authority (QIA).

A search with the Companies Commission of Malaysia revealed that a company by the name of Pavilion Reit Management Sdn Bhd had been set up.

Lim and his wife Datin Tan Kewi Yong each hold a share in this company, which was registered on April 7 this year.

The nature of business of Pavilion Reit Management is described as "management of real estate investment trust, investment holding and property management".

Officials of Pavilion KL, when contacted, did not say anything.

Valuers contacted to indicate the Pavilion KL asset size said that it would depend on the method used. It could be on the lower end if the comparison method is used (market price per sq ft) and on the upper end if the investment return method is used (income stream generated per sq ft).

While it is certain that the retail portion of the building, which has a total net lettable area of 1.37 million sq ft, will form part of the REIT, it is unclear if the corporate office tower with a nett floor area of 185,000 sq ft will be included in it.

Pavilion KL, opened in 2007, is said to be profitable. It is enjoying a 98 per cent tenancy.

Talk is that Fahrenheit 88, the shopping centre opposite Pavilion KL and managed by Pavilion KL, may later be injected into the REIT. The mall is now 92 per cent occupied.

Fahrenheit 88 belongs to Makna Mujur Sdn Bhd, which is owned by Pavilion International Development Fund Ltd, of which the principal is the QIA.

Last year, Urusharta Cemerlang (KL), owned by Tan Sri Zainol Mahmood and another individual, made history by paying RM7,209.80 per sq ft for the land in Jalan Bukit Bintang adjacent to Pavilion KL.

China property prices rise for eighth straight month in April

Residential property prices in China rose 0.40 per cent in April, slightly slower than March, according to recently released data from the China Real Estate Index System. The data collected from 100 major cities showed that prices have risen for eight consecutive months causing concerns about real estate inflation,Property Wire reported. The index is watched widely since China abandoned its national property price index in January.

Property prices grew in 77 cities, while 22 cities posted a decline and the remaining city saw no changes. Overall, average home prices in April rose to 8,773 yuan ($1,351) per square meter from 8,738 ($1,345) in March.

Meanwhile, the Chinese government are trying to bring down property prices. President Hu Jintao said China’s construction of public housing remains an important task and the authorities will continue to increase financing for such projects and prioritize the allocation of land for such projects.

Talking to Property Wire, Larry Hu, director of Knight Franks LLP’s residential department in Shanghai said, “the government’s policy is working but home prices nationwide are unlikely to fall this year. There is a bubble in China’s real estate market, because many people can’t afford homes here.”

About 40 cities said in March they will cap new home prices below annual economic and disposable per-capita income growth or keep them steady following the central government’s measures to rein in housing values.

HK group Cheung Kong wins bid for malls T

Tycoon Li Ka-Shing's Cheung Kong Group is believed to have won a bid to buy the three TMW Asia Property Fund's shopping complexes put up for sale in Malaysia.

Business Times was informed that the party would pay less than the RM500 million asking price set earlier but above the RM400 million level.



Sources say that the due diligence process by the Hong Kong bidder had been completed and it was a just a matter of signing on the dotted lines.

It is understood that a sale and purchase agreement will be signed very soon.

International property consultant Rahim & Co was appointed as the exclusive agent to handle the tender.

Real estate agent, Rahim & Co's managing director Robert Ang, when contacted by Business Times (BT) to confirm the news, declined to comment.

Last month, BT reported that Cheung Kong Group had emerged as the front-runner for tender which closed on March 8 2011.

The German-based TMW had put the Klang Parade in Selangor, Ipoh Parade in Perak and Seremban Parade in Negri Sembilan on sale.

It acquired theassets in 2005 from the Lion Group for RM340 million.

TMW is managed by Pramerica, the real estate investment management business of Prudential Inc from the US.

However, it is unclear which company or fund under the Cheung Kong group is purchasing the assets.

Cheung Kong helps manage AmFirst REIT in Malaysia via its affiliate ARA.

ARA Asia Dragon Fund, another affiliate of Cheung Kong, bought two properties in Malaysia last year - One Mont' Kiara in Kuala Lumpur and Aeon Bandaraya Mall Melaka - for RM710 million.

According to previous reports, Seremban Parade has a nett lettable area of 316,847 sq ft and sits on 1.97ha, Ipoh Parade has a nett lettable area of 594,414 sq ft on 4.14ha and Klang Parade has 696,045 sq ft of space.

Rate hike unlikely to impact on property market

PETALING JAYA: The property market will not be impacted by the recent increase in the overnight policy rate (OPR), said property consultants.

Last Thursday, Bank Negara raised the overnight policy rate (OPR) by 25 basis points to 3% and increased the statutory reserve requirement (SRR) by one percentage point to 3%.

Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng said the slight increase meant that borrowing cost was still reasonable.


Tang Chee Meng

“With banks offering base lending rate (BLR) minus 2%, this means effective interest rates are still below 5%. However, property investors will look at the slight rate hike with caution,” Tang told StarBiz.

He pointed out that demand in the property market might be curbed slightly if the central bank raises the OPR by another 25-basis points before year-end.

“Property investors look closely at micro situations and factors such as location, possible further interest rate hikes in the short-term, rental yields and capital appreciation,” he said.

Zerin Properties chief executive officer Previndran Singhe said the recent rate hike was not significant.

KGV-Lambert Smith Hampton Sdn Bhd director Anthony Chua said the rate hike would not “put brakes” on the property market.

“It will not have a significant impact, although there may be some minor adjustment in buying sentiment,” said Chua.

CB Richard Ellis (CBRE) Malaysia managing director Allan Soo said the impact on property buying sentiment would be negligible.

“At this level, the property market is not interest sensitive,” Soo pointed out.

CBRE Malaysia executive director Paul Khong pointed out that property prices, especially in the Klang Valley, still soared despite a rate hike last July.

“Property buyers will continue to make decisions based on their repayment capability, and also factor in their expected rental yields in view of the rate hike,” said Khong.

Brisbane is cheapest place to buy Australian property

Property hunters looking for real estate down under may be interested to learn that Brisbane is the cheapest place in the country to purchase a home, it has been revealed. In the March quarter the average house price in Brisbane was $448,669, compared with $452,546 in Adelaide, according to Australian Property Monitors, The Australian reports. It has been a slow and steady decline for Brisbane, with houses falling by 4.3 per cent over the past 12 months, a figure which has been compounded by the recent floods. Andrew Wilson, Australian Property Monitors senior economist, told the news provider that Brisbane is a housing market where confidence has been down for a while, with the Queensland economy underperforming for the past few years. "When that happens, people aren't as keen to buy and on the other end sellers decide to hold on to their house and not to sell," he said. "The floods in Brisbane were also a one-off factor in the March quarter, but I think their effect will be felt over the rest of the year."

Hong Kong property transactions drop drastically in April

The surge of the last 24 months in the Hong Kong real estate market appears to be coming to an end. Higher lending rates and government action has created a 38 per cent drop in property purchases in April compared to the same month last year and a 27 per cent decrease from March, reports MarketWatch.

Banned under its constitution from limiting incoming capital flow and with its currency still pegged to the weakening US dollar, the amount of money in circulation in Hong Kong has skyrocketed in recent years. This influx of capital created a veritable explosion in Hong Kong property values, rising 30 per cent in 2009 and 24 per cent in 2010, and resulting in yearly mortgage payments available from many banks at one per cent or even lower.

With the huge property value increases of the last two years, experts realized the impressive growth could not go on forever. The Hong Kong monetary authority sent out a letter last month, warning about the unsustainable nature of the flood of credit the city was experiencing.

Banking giant HSBC responded by raising mortgage rates on many customers, but not all have taken action; HSBC’s lowest offerings come in at 1.5 per cent higher than those still available from the Hong Kong interbank.

SS2 Petaling Jaya Selangor Double Storey Link For Commercial Rent

Subject Property:-

ID NUMBER : MYS - CS(R) 2

RENTAL PRICE

• Ringgit Malaysian Four Thousands Eight Hundred ( RM4,800. ) only.  Rented Out !!

LOCATION

• Located at SS2/75 main road at the heart of SS2 township,within vicinity of new opening SS2 Mall and same row as Wedding Couture Sdn Bhd bridal showroom;
• Strategically readily access from Lebohraya Damansara Puchong (LDP ) and near to Damansara Utama ,Damansara Jaya, Section 17 (Proposed where MRT Station located ) etc;( Google Site Map link http://goo.gl/maps/FvQv )

PROPERTY DESCRIPTIONS

• Property Type : Link House Convert for Commercial Use;
• Occupancy : Renovation in Progress;
• Land Area : 24' X 80" ( 1,920 sf ) ;
• Built Up : 2,568 sf;

• Availability :  1st April 2011;
• Entrance Direction : North East;
• Position : Endlot
• Number of Storey : 2
• Amenities : Clinics, Fast Food Chains, Travelling Agencies, Wet Market, Eateries, Boutiques, Public Transport, Banks, Pet Shops, Book Shops; 
• 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).

Johor Bahru becoming a boomtown

Residential property prices in Malaysia’s Johor Bahru have jumped 40 per cent during the past five years, The Business Times has reported.

Local developers have witnessed strong growth in transaction values of property projects in the city, which once suffered from new project launches.

Danga Sdn Bhd’s Casa Almyra project is a good example for this statement as  its prices have gone up to RM800,000 (US$270,040) from RM450,000 (US$151,899) in 2006.

According to Samuel Tan, executive director of KGV-Lambert Smith Hampton (Johor) Sdn Bhd, the property owners and buyers in Johor Baru should see another 10-20 per cent rise in prices by the end of this year.

Prices of commercial land and properties in areas such as Jalan Datuk Abdullah Tahir, Danga Bay and Tebrau, have more than doubled since 2006.

“People are land-banking in Johor Baru because they see something in Iskandar Malaysia,” Tan said.

Meanwhile, several Malaysia’s listed developers have recently launched its projects in the country’s second largest urban area. SP Setia Bhd have introduced at least four simultaneous projects in Iskandar, while Bandar Raya Developments Bhd and IOI Properties have also launched major developments.

Datuk Lim Kang Hoo, chief executive officer of Danga Bay Sdn Bhd said that the rising interest has brought about 90 per cent of stalled commercial and residential projects in Johor Baru back to life.