Parts of the old Sungai Besi airport site will be used for property development as part of the government’s quality housing programme, said Prime Minister Datuk Seri Najib Tun Razak.
1Malaysia Development Bhd (1MDB) is tasked to develop the land after the airport is closed.
“A certain portion of the land will be used for quality affordable housing for the rakyat,” he said at One FM interview on 23 June.
The government-owned development company acquired the land site, which it plans to develop into a commercial, residential and recreational area called Bandar Malaysia.
PM Najib said the housing programme, called Perumahan Rakyat 1Malaysia (Prima), will offer homes at discount value, as part of an effort to provide affordable housing.
Sime Darby, SP Setia, Putrajaya Corporation and other property developers had been invited to participate in the programme. He pointed out that the development will be conducted under a social business model.
“The developers are not there to make money but to provide quality affordable housing,” said PM Najib.
“They have to present their business model and costing and we will do an analysis to make sure they don’t make but don’t lose money either.”
He also recommends that home buyers take advantage of the government’s My First Home (MFH) scheme with its 100 percent financing home loan programme.
Prima is expected to be launched in July, said PM Najib.
Friday, June 24, 2011
Thursday, June 23, 2011
Analysts have said that those who expect property prices to ease soon should rethink their assumptions.
“Against the backdrop of rising inflationary pressure, we believe that home prices cannot afford to stay at the current level owing to rising land cost and cost of raw materials,” said Tan Kam Meng, a Senior Analyst at TA Securities Holdings Bhd (TA Securities), in a report by The Borneo Post.
“Such outlook is underpinned by the accommodative mortgage rate at 4.4 percent, as well as the higher living standard on the back of rising affluence of Malaysian population which in turn, would encourage buyers to switch to properties that offer security such as those in gated and guarded communities and smart home features,” he said.
For Q1 2011, sales of residential properties in major cities climbed 9.7 percent year-on-year to 34,659 units, led by Johor, Penang and Selangor.
The total value transacted in these major cities grew at a faster pace in the first quarter than total transactions, a sign that the mix of product was favouring the high-end segment.
“From January to March, total transactions done at the RM500,000-RM1 million per unit, and those less than RM1 million per unit rose by 0.8 percentage point (ppt) and 0.3ppts, respectively; against the previous year’s corresponding period,” said Tan.
Correspondingly, bigger developers maintained an optimistic outlook in the market by launching new projects, particularly in Greater Kuala Lumpur.
“Longer term, the roll-out of high-impact MRT (Mass Rapid Transit) projects is expected to enhance land value and support property prices in Klang Valley. The implementation of goods and services tax (GST) in the future is expected to lift property prices higher too,” he said.
“Given the concerns over land scarcity at prime districts within the Klang Valley, we expect landbanking exercise to divert from the central of gravity (Kuala Lumpur City Centre) to Cyberjaya, Kajang and Seri Kembangan within Selangor.”
Regarding the recent announcement by Housing and Local Government Minister Datuk Chor Chee Heung about the tougher requirements for aspiring housing developers, Tan noted that the proposed guidelines will work to safeguard buyers’ interest against delayed and abandoned projects.
“It will be positive to the sector,” he said.
“To combat abandoned projects, the most effective tool is to make the ‘build-then-sell’ concept mandatory — such as the one proposed for the new housing act.”
“Against the backdrop of rising inflationary pressure, we believe that home prices cannot afford to stay at the current level owing to rising land cost and cost of raw materials,” said Tan Kam Meng, a Senior Analyst at TA Securities Holdings Bhd (TA Securities), in a report by The Borneo Post.
“Such outlook is underpinned by the accommodative mortgage rate at 4.4 percent, as well as the higher living standard on the back of rising affluence of Malaysian population which in turn, would encourage buyers to switch to properties that offer security such as those in gated and guarded communities and smart home features,” he said.
For Q1 2011, sales of residential properties in major cities climbed 9.7 percent year-on-year to 34,659 units, led by Johor, Penang and Selangor.
The total value transacted in these major cities grew at a faster pace in the first quarter than total transactions, a sign that the mix of product was favouring the high-end segment.
“From January to March, total transactions done at the RM500,000-RM1 million per unit, and those less than RM1 million per unit rose by 0.8 percentage point (ppt) and 0.3ppts, respectively; against the previous year’s corresponding period,” said Tan.
Correspondingly, bigger developers maintained an optimistic outlook in the market by launching new projects, particularly in Greater Kuala Lumpur.
“Longer term, the roll-out of high-impact MRT (Mass Rapid Transit) projects is expected to enhance land value and support property prices in Klang Valley. The implementation of goods and services tax (GST) in the future is expected to lift property prices higher too,” he said.
“Given the concerns over land scarcity at prime districts within the Klang Valley, we expect landbanking exercise to divert from the central of gravity (Kuala Lumpur City Centre) to Cyberjaya, Kajang and Seri Kembangan within Selangor.”
Regarding the recent announcement by Housing and Local Government Minister Datuk Chor Chee Heung about the tougher requirements for aspiring housing developers, Tan noted that the proposed guidelines will work to safeguard buyers’ interest against delayed and abandoned projects.
“It will be positive to the sector,” he said.
“To combat abandoned projects, the most effective tool is to make the ‘build-then-sell’ concept mandatory — such as the one proposed for the new housing act.”
Monday, June 20, 2011
Tranformation in Puchong? Property price rise? perhaps.... after 2014
Millennium Land Sdn Bhd will launch a RM1.5 billion mixed development called M Square, which will become Puchong’s new commercial centre and transform it into a modern township.
Located on a 10.12 ha site, M Square features a 380,000 sq ft shopping mall situated in the podium block below the 18-storey, 255-room Hilton Garden Inn. The development also includes a 2.1 million sq ft street mall that features 13 six-storey blocks of retail and office units.
Benjamin Tan, Executive Director at Millennium Land, said the company has drawn up plans to build high-end residential units.
“Puchong is one of the fastest growing districts in Malaysia in terms of growth especially in three key areas: population, monthly household income and commercialisation.”
“The primary catchment in Puchong reaches an estimated 420,000 people while its secondary catchment area, some 10 minutes away, reaches some 1.2 million people,” he said.
Mr. Tan said that once the project is complete, it will be the largest street mall in Malaysia, placing it in the regional mall category.
“It ties in together with today's lifestyle trend with alfresco dining and outdoor live performances amid a conducive environment.”
Given its size, the mall will have a diverse tenant mix and its street mall atmosphere will make it unique.
“Our design, being modular, allows for flexibility as it does not have lift shaft in the centre like other conventional shop lots. Instead it is served by glass lifts on the exterior of the building.”
“For the convenience of shoppers, every block was planned to cater to specific target markets, such as a Kids' Corner, Japanese Street and Digital Centre that can take up an entire block or a large portion of it, and by itself serves as an anchor tenant,” he added.
The development is slated to commence next quarter and is expected to be completed by 2014.
Sungai Besi airport becomes township?
Multiple agreements were signed on 15 June within the Economic Planning Unit of the Prime Minister’s Department to begin the transformation of the old Sungai Besi airport into the Bandar Malaysia township.
1Malaysia Development Berhad (1MDB) announced that the strategic development will contain a number of interesting elements to further fortify Kuala Lumpur’s worldwide competitiveness and to draw in foreign businesses and investors.
Some of the documents signed were the sale and purchase agreement (SPA) with the Federal Land Commissioner for the handover of a 200.3 ha plot of airport land to 1MDB as the master developer. The agreement also covers the acquisition of a 303.5 ha land parcel in Sendayan to replace the site.
Furthermore, a master relocation agreement was signed with the Defence and Home Ministries to develop eight replacement sites.
The signing was witnessed by Tan Sri Lodin Wok Kamaruddin, Chairman of 1MDB and Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop.
1Malaysia Development Berhad (1MDB) announced that the strategic development will contain a number of interesting elements to further fortify Kuala Lumpur’s worldwide competitiveness and to draw in foreign businesses and investors.
Some of the documents signed were the sale and purchase agreement (SPA) with the Federal Land Commissioner for the handover of a 200.3 ha plot of airport land to 1MDB as the master developer. The agreement also covers the acquisition of a 303.5 ha land parcel in Sendayan to replace the site.
Furthermore, a master relocation agreement was signed with the Defence and Home Ministries to develop eight replacement sites.
The signing was witnessed by Tan Sri Lodin Wok Kamaruddin, Chairman of 1MDB and Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop.
Monday, June 13, 2011
NEW HDA Protecting Purchasers
The Housing Development Act (HDA) will be amended to make sure that developers are held liable for their actions, according to Housing and Local Government Minister Datuk Chor Chee Heung.
Mr. Chor said the amendment, which will be tabled in Parliament before the end of the year, would bring in criminal liability for developers who abandon their projects.
“This would include a jail term and fine,” he said.
“We will see fewer abandoned projects,” he commented without elaborating on the details of the fines.
Currently, 161 projects were abandoned nationwide. “Of the number, 72 have been revived,” noted Mr. Chor.
He also said that developers are required to pay a deposit of RM200,000 to the ministry prior to the issuance of permits.
“This deposit will be increased,” said Mr. Chor.
Additionally, the act would be revised to ensure that developers are professionals who have a good understanding of the business.
“We do not want purchasers to end up suffering,” he said, adding that to date, errant developers are only blacklisted.
Mr. Chor said the amendment, which will be tabled in Parliament before the end of the year, would bring in criminal liability for developers who abandon their projects.
“This would include a jail term and fine,” he said.
“We will see fewer abandoned projects,” he commented without elaborating on the details of the fines.
Currently, 161 projects were abandoned nationwide. “Of the number, 72 have been revived,” noted Mr. Chor.
He also said that developers are required to pay a deposit of RM200,000 to the ministry prior to the issuance of permits.
“This deposit will be increased,” said Mr. Chor.
Additionally, the act would be revised to ensure that developers are professionals who have a good understanding of the business.
“We do not want purchasers to end up suffering,” he said, adding that to date, errant developers are only blacklisted.
Friday, June 3, 2011
Govt. mulling incentives for green buildings
The Malaysian government is planning to provide incentives to developers who build homes and facilities that adhere to the Green Building Index (GBI).
“The design and technology used in such eco-friendly buildings may cut power consumption by up to 60 percent and save water usage by 65 percent,” said Deputy Prime Minister Tan Sri Muhyiddin Yassin.
He said that more “green” buildings should be developed in Malaysia, as they can save costs and contribute to promoting better environmental quality.
“Building constructions in our country should consider going down this road,” he said at the opening of the Diamond Building.
Mr. Muhyiddin said the Diamond Building is a state-of-the-art development which features green building elements to permit an efficient usage of water and energy, a step up from conventional buildings.
The Diamond Building is the recipient of a certification issued by green building technology authorities in Malaysia and Singapore.
Furthermore, it is the government’s third green building, following the Low Energy Office (LEO) building, which houses the Energy, Green Technology and Water Ministry, and the Green Energy Office (GEO), which houses the Malaysian Green Technology Corporation.
“The design and technology used in such eco-friendly buildings may cut power consumption by up to 60 percent and save water usage by 65 percent,” said Deputy Prime Minister Tan Sri Muhyiddin Yassin.
He said that more “green” buildings should be developed in Malaysia, as they can save costs and contribute to promoting better environmental quality.
“Building constructions in our country should consider going down this road,” he said at the opening of the Diamond Building.
Mr. Muhyiddin said the Diamond Building is a state-of-the-art development which features green building elements to permit an efficient usage of water and energy, a step up from conventional buildings.
The Diamond Building is the recipient of a certification issued by green building technology authorities in Malaysia and Singapore.
Furthermore, it is the government’s third green building, following the Low Energy Office (LEO) building, which houses the Energy, Green Technology and Water Ministry, and the Green Energy Office (GEO), which houses the Malaysian Green Technology Corporation.
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