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Showing posts with label Rehda. Show all posts
Showing posts with label Rehda. Show all posts

Tuesday, September 30, 2014

Hunting for dream homes at MAPEX


Some 20,000 visitors made their way to the Malaysia Property Exhibition (Mapex) 2014 at the Subterranean Penang International Convention and Exhibition Centre (SPICE) in Relau, Penang, in search of their dream home.

From landed properties to high-rise units, the Mapex City 2014 showcased projects by reliable developers with prices which ranged from RM346,000 to RM15mil.

Event organising chairman Ng Chin-U said the three-day exhibition held from last Friday to Sunday saw developers generating RM48mil worth of sales.

It was the second Mapex this year. The first, which was held during Chinese New Year in February at the G Hotel Penang, saw about 30,000 visitors and a total sales of RM130mil recorded.

Ng said buyers might be adopting the wait-and-see approach as the Budget 2015 was just around the corner.

“The cooling-off measures on the property market may be one of the factors as well, as generally buyers are more careful,” he said.

Cooling-off measures include 70% loan policy for third property purchases, requiring the housing loan limits calculated based on net income instead of gross and loan tenure reduced from 45 years to 35 years.

Ng added that those who missed the exhibition this time around could look forward to next year’s Mapex, which is scheduled to be held during Chinese New Year in February.

Organised by the Real Estate and Housing Developers’ Association (Rehda) and Henry Butcher Malaysia (Penang), the exhibition was participated by a total of 16 exhibitors who took up 30 booths.

Penang Chief Minister Lim Guan Eng who opened the exhibition on Saturday, urged Bank Negara to reinstate the developers interest-bearing scheme (DIBS) for first-time buyers as well as increase and extend the scheme by Syarikat Jaminan Kredit Perumahan (SJKP) to buyers of affordable homes costing from RM72,500 up to RM400,000.

“Ever since DIBS was abolished, many first-time buyers of affordable housing could not obtain bank loans to buy their own homes.

“Up to 70% of the housing loan applications for low-cost and low medium-cost homes have been rejected by private banks,” he said.

He added that legal fees should be part of the DIBS package and stamp duty should be waived to lower the initial entry cost for first-time home buyers.

Rehda Penang chairman Datuk Jerry Chan said the exhibition was largely focused on Penang properties.

He said Rehda Penang had been trying to help first-time house buyers.

Besides that, Chan said that during the recent Mapex, organisers donated RM50,000 to six charitable organisations namely DHome Mental Health Association, The Salvation Army Penang Children’s Home, Grace Harmony Home, Children Protection Society , Penang Cheshire Home and St Nicholas Home Penang.

Also present during the opening were state Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo, state Agriculture and Agro-based Industry, Rural Development and Health Committee chairman Dr Afif Bahardin, state Religious Affairs Committee chairman Datuk Abdul Malik Abul Kassim and state Tourism Committee chairman Danny Law.

The developers who took part in the exhibition were Eco World Development Sdn Bhd, SP Setia Bhd Group, IJM Properties Sdn Bhd, Asas Mutiara Sdn Bhd, Chong Company Sdn Bhd, Sunway Grand Sdn Bhd, BSG Property, Ivory Properties Group Bhd, Ideal Property Group, Airmas Group, Tambun Indah Land Bhd, Tropicana Macalister Avenue (Penang) Sdn Bhd, MTT Properties & Development Sdn Bhd, Palmex Industries Sdn Bhd, Inspirasi Elit Sdn Bhd and Plenitude Bayu Sdn Bhd.

Kwong Wah Yit Poh and Property Guru were the Chinese media partner and online partner respectively.

Source: The Star/Asia News News Network

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Saturday, September 8, 2012

Making all housing more affordable in Malaysia


WHEN I watched Usain Bolt cross the 100m line in an Olympic record of 9.63 seconds during the recent concluded Olympic Games, I saw a young focused sprinter with only one objective in mind; to cross the finish line in the shortest possible time. He amazed the world with his stunning performance again.

This reminds me of our journey in making all Malaysian housing more affordable. It is a race that requires the same amount of focus from all relevant stakeholders including public sector which is the Government, and private sectors, i.e. the property developers, home buyers and NGOs. Furthermore, like in a race where the sprinters have a sight on the direction and goal, all stakeholders in the housing industry should be aligned to the same goal before starting the race.

To understand what exactly drives up property prices, we need to analyse the various factors that influence the price of a housing development in Malaysia. This may help us identify the root cause and provide us with the correct remedies to make Malaysian housing more affordable and sustainable.

Let's begin by looking at what are the major cost components of a property project. Twenty or 30 years ago, land acquisition was only about 5% to 10% of a project cost, but nowadays, it can take up to a sizable 20% to 30% of the whole development budget before any value-added works are carried out on the land itself.

Land prices are ever rising due to scarcity of urban land especially in the major cities. For example, a piece of land that used to cost RM10 per sq ft in Mont' Kiara during the late 80's now can cost up to RM300 per sq ft. With rising land cost “eating” up a significant portion of the development budget, house prices automatically increase as a result.

The next major cost is the holding cost and construction financing cost of the project. The longer it takes to complete a project, the higher the financing costs of the project which will then increase the price of a home.

I mentioned this before in my earlier articles that property projects are sometimes subjected to one, two or more years of gestation period to obtain all the necessary approvals from the relevant authorities before they can be launched. The lengthy approval period will definitely affect the holding costs, and slow down the supply of housing units. If this approval time is not shortened, the rising demand will only further push the prices up. This is the basic market influence of supply and demand.

Another factor that influences the cost of housing, as highlighted by developers surveyed during the recent Real Estate and Housing Developers' Association (Rehda) media briefing, is the unsold and unreleased Bumiputra units.

According to the latest half-yearly property industry survey by Rehda, the number one reason for unsold properties comes from unreleased bumiputra units and has been so for the past two years.

With the requirement to hold on to the unsold bumiputra units, the additional holding cost is inevitably spread out to all the other house buyers in the form of higher priced units. Unreleased bumiputra units may also create a false impression of supply shortage in the market, and these can cause the prices to increase again. While we recognise the need for a bumiputra housing policy, the various states should agree on a transparent, auto-release mechanism to release bumiputra units if unsold beyond 18 months of launch, to make houses more affordable for everyone.

Apart from land cost, holding, and construction financing costs, another cost component that adds to the price of properties is utilities costs. In the past, utility companies would be expected to build substations and water storage towers as well as lay electrical cables and water pipes. Today, all these are required to be completed by developers themselves.

In a roundtable discussion on housing affordability, Housing Buyers Association secretary-general, Chang Kim Loong highlighted that the privatisation of utility companies have turned them into profit-oriented companies. Taxpayers' monies are no longer utilised to provide the basic necessities that they have paid for. This ends up making houses cost more because home owners end up bearing the cost of the infrastructure for these utility services.

In the illustration mentioned at the start of this article, a sprinter must stay focused on the targeted goal of winning the race without mental and physical disadvantages before and during the sprint. Imagine if Bolt needed to run against a headwind and carried a few pounds on his back all along the race. Would he still able to break the Olympic record and become a legend?

In the race to make the price of all housing units more affordable, the issues of high land cost, lengthy approval period, additional utilities expenditure and unreleased bumiputra lots are the burdens that are holding houses back from becoming more affordable. Solve these dilemmas and we will begin to break records.

FIABCI Asia-Pacific Regional Secretariat chairman Datuk Alan Tong has over 50 years of experience in property development. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com

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Wednesday, September 5, 2012

Malaysian property market remains resilient: housing robust but commerical glutted

Developers optimistic of H2 but not sure about 2013

PETALING JAYA: The Real Estate and Housing Developers' Association Malaysia (Rehda) expects the housing and property market to plateau in the second half of 2012, but will remain resilient.

According to a survey Rehda conducted, property developers are optimistic of the second half and more respondents plan to launch projects.

The survey is based on a sample size of 180 companies, out of the 1,003 Rehda members.

Property developers are less optimistic of the first half of 2013 due to certain factors, including the outcomes of the 13th general elections and Budget 2013. The current global economic situation also contributes some uncertainty.

The results of the survey show that the property market in the first half of this year is still driven by the domestic market, despite beliefs that foreigners are buying more local properties. Last year, only 2% of total properties transacted were from foreigners.

Rehda president Datuk Seri Michael Yam said the Government should review building less low-cost homes. In 2011, 1.04 million units out if the total 4.51 million total residential stock were low-cost homes.


 
“As Malaysia moves towards striving to reach developed nation status by 2020, the Government should review if there is a need for so many low-cost homes,” Yam said.

Rehda national treasurer N.K. Tong said: “Perhaps the Government should consider implementing a limitation to low-cost homes like what Singapore has done with the HDB (Housing and Development Board) flats.”  See Singapore moves to discourage shoebox apartments

HDB flat owners-to-be are not allowed to own any other properties in Singapore, or in any other part of the world. Tong said if such a plan was implemented in Malaysia, there would be less abuse of these properties, unfairness caused to developers and to a larger extent the people.

“I'm more concerned with the supply factor. It is moving downwards due to the shortage of prime land and rising building costs. Come 2015, if the Government is serious about implementing the build-and-sell plan, the supply (of houses) will reduce by about 80%,” Rehda past president Datuk Ng Seing Liong said.

His main concern if the plan was implemented was that property prices would continue to trend upwards due to the supply and demand equilibrium.

“In terms of the property sector, we must look at a long-term scenario,” he said in regards to future plan implementations.

Rehda public relations, communications and publication committee member Che King Tow said the Government usually owned the best-located properties.

He said it would benefit the public if the Government could consider releasing its land in high-density areas such as Jalan Duta and Selangor Golf Course in the upcoming budget.

“Those are suitable prime land for mass housing. They can cut down on ownership of cars, and use public transport instead,” he said.

Yam also urged the Government to establish an automatic-release mechanism to enable the release of unsold bumiputera units. Although Rehda has not complained about allocating a portion for bumiputera buyers, the unsold properties are affecting the developers.

“More projects are having unreleased unsold bumiputera lots which impact the developer's cash flow. An auto-release mechanism should be put in place to automatically release the unsold properties after a stipulated time to prevent this,” he said.

By WONG WEI-SHEN weishen.wong@thestar.com.my

Housing market robust but commercial property glutted


Malaysia's residential property sector will continue its upward momentum thanks to ample supply and demand as well as a change in the demographic structure, according to figures from the National Property Information Centre (Napic).

Last year, 269,789 residential deals valued at RM61.83 billion were recorded, the largest in the past five years.

Napic's statistics also showed that demand for units priced below RM150,000 was strong, accounting for 145,785 deals, or 54 percent of all the residential transactions for 2011. Moreover, this is an increase of 12.6 percent compared to the previous year's 129,441 transactions.

"On a similar upward trend, the demand for high-end units priced above RM500,000 increased gradually to 21,905 transactions from the 16,782 transactions recorded in 2010," said the Napic report, adding that the Malaysian All House Price Index soared to 154.6 points from 140.7 points in 2010.

"This was (also) attributed to the increase in affordability level and supported by the ease in borrowing and attractive loan packages offered by the financial institutions," commented Datuk Ng Seng Liong, Past President of Real Estate and Housing Developer's Association of Malaysia (REHDA).

However, there are concerns that Klang Valley's commercial property sector is facing a supply glut, said Dr Ernest Cheong, Principle of Ernest Cheong PTL Sdn Bhd. He believed that the problem can be solved by creating additional demand or stopping construction of commercial property.

La-Brooy, Chief Executive Officer at Axis REIT Managers Bhd, concurs. He explained that rental and occupancy rates will be pressured later this year because as much as five million sq ft of office space are scheduled for completion for the remainder of 2012.

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit http://www.propertyguru.com.my today.

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