Leong Housing Agency

Developers: Foreign labour cut could lead to delay

admin — Thu, 29 Jul 2010 09:25:31 +0000

Developers: Foreign labour cut could lead to delay
Developers: Foreign labour cut could lead to delays and higher property prices
KUALA LUMPUR: Developers are concerned that the Government’s move to reduce the number of foreign workers in the country will result in project delays, leading to possible price increases in property.

Almost 100% of construction workers in the country are foreigners, according to International Real Estate Federation (FIABCI) Malaysia president Datuk Richard Fong.

“We have already seen the effect of tightening labour market five years ago when workers were sent home on an amnesty programme. We will have the same problem again,” he said at a press conference here after a talk by FIABCI World president (2010/2011) Enrico Campagnoli entitled Fiabci in front of Financial Crisis.

He said this resulted in delays in completion of projects which allowed buyers to claim penalties from developers for late delivery.

“When the workers finally returned, we had to retrain them because they were unskilled. So, it is a cycle which keeps repeating itself. The workers return but the issue that cropped up was quality, which in turn led to high rates of defects in the properties,” Fong, who is also Glomac Bhd group executive vice-chairman, said.

FIABCI World President Datuk Alan Tong said “with reference to reducing foreign workers, before the authorities come up with new rules, it would be prudent for more dialogue between the Government and the private sector to facilitate a better understanding of the sector, which today, depends almost 100% on foreign labour.”

“If the authorities want to reduce the number of foreign workers in the country, they must first think of the alternatives. Notwithstanding that, we laud the Government’s proposed plan to wean the country off subsidies,” added Tong, who is also Bukit Kiara Properties (BKP) group chairman.

Tong’s views are shared by See Hoy Chan Holdings group director Datuk Teo Chiang Kok, the developer for Bandar Utama township. Teo, who is also the first vice-chairman of the FIABCI Asia-Pacific Secretariat, said there must be safety nets for the lower income groups with the removal of subsidies.

“Do not look at subsidies as purely a setback suffered by consumers because flour and sugar prices are going to go up. The removal of subsidies also involves water, electricity and petrol which will impact the housing sector in no small way. We have to look at the bigger picture,” Teo said. Earlier, Campagnoli said the debt situation in the euro zone would affect the property sector in different ways because the countries have different economic strengths.
(The Star Property)

Penang cancels requirement for performance bond

admin — Thu, 29 Jul 2010 09:24:14 +0000

Penang cancels requirement for performance bond
Penang cancels requirement for performance bond for Class F contractors
PENANG: The Penang government has cancelled the requirement of performance bond for Class F contractors with immediate effect.

Chief Minister Lim Guan Eng, when announcing this on June 2, said this was in line with the state government’s decision to adopt the Treasury Circular No. 5/2009.

“Previously, contractors have to give 2.5% of their contract value, but from now on, the performance bond has been exempted in an effort by the government to assist small contractors,” he told reporters after a meeting with the state Class F Contractors Association here on June 2.

He said with the cancellation of the requirement on performance bond, the government would have to monitor projects to ensure their smooth implementation.

Lim said the state government had also decided to cease with the practice of contractors being allowed to send their representatives for site visits.

“We want to give more opportunities for other Class F contractors and only the company owners who bring along the original registration certificates be allowed to conduct site visits,” he added.

Lim said the decision was made to ensure only the genuine Class F contractors conduct the site visits and be offered jobs.
He also said that the registration fee for “ePerolehan” had been reduced to RM50 from RM100 previously. — Bernama

Property price increases to moderate as higher BLR

admin — Thu, 29 Jul 2010 09:23:28 +0000

Property price increases to moderate as higher BLR
KUALA LUMPUR: In mid-May, Bank Negara Malaysia (BNM) revised its key Overnight Policy Rate (OPR) by another 25 basis points, following a rate hike by the same quantum earlier this year.

Shortly after that, most banks revised their Base Lending Rate (BLR) accordingly to 6.05%. After a total interest rate hike of 50 basis points since the start of 2010, has this had any impact on the country’s property market and mortgage lending activities?

Mortgage Broker Sdn Bhd sales director Adrian Un sees no immediate impact on mortgage lending activities. This is because the effective interest rate is still hovering around 4% to 4.2%, making the borrowing cost still relatively cheap, he said. “Purchasers are still flocking to developers’ sales officers, and are dealing with various real estate agents,” he said.

According to Liew Swee Lin, executive vice-president, head of consumer banking of Alliance Bank Bhd, the recent BLR increase of 0.25% is considered marginal. “This translates to a 2% to 3% increase in monthly loan commitments which we deem to be within the tolerance of the homeowner. Consequently, we would neither expect any significant impact on mortgage lending activities nor have we observed any since the revision,” she said.

Property consultant James Tan of Raine & Horne International Zaki + Partners shares a similar view. “The increase in the BLR and OPR has had no effect at all on the property market. In fact, there has been an increase in prices,” he noted. Tan foresees that rising interest rate will only have an impact on property market when banks increase the spread to more than 2% to 3%, or when the BLR hits more than 7% to 8%.

However, are the rapidly rising prices sustaintable?

Group chief economist of RAM Holdings Dr Yeah Kim Leng said the spillover of escalating prices in high-end, niche segments to the broader housing market, especially the terraced and mid-range condominiums in urban areas, is a concern.

“We note that it is hard to agree on what constitutes a bubble, but clearly, double-digit price increases are unsustainable, especially if the price escalation is fuelled by excessive price mark-ups, speculative purchases, over-leveraging and easy credit conditions,” he said.

Meanwhile, Liew said the latest House Price Index (HPI) statistics released by Napic (Department of Valuation & Property Services) indicated an increase of only 1.5% for 2009, and 4.7% in 2008, which suggests that the sector was not heading towards a bubble.

But property consultant Tan said it was essential to get back to the fundamentals. “Incomes have not kept up with property prices at all. Prices have shot up across the board of more than 20% to 30% over the past one year. Yields are dropping drastically. The net return on shophouses tended to fetch around 6% to 7%, but it is less than 5% now,” he noted.

That said, Yeah reckoned that the local housing market has not reached the “bubble-like” state seen in other Asian countries such as China, Singapore and Hong Kong. Yeah predicted the recent acceleration in property prices and mortgage lending to moderate as the effects of higher OPR and BLR kick in.

“Higher lending rates have the effect of dampening speculative buying as well as overall demand as borrowing costs edge up,” he said, while predicting that genuine home buyers will be less pressured to rush their purchase decisions with the gradual dampening of rising house price expectations.

According to him, potential oversupply in a number of property segments, including in hot areas such as Klang Valley, together with the gradual pace of credit tightening and declining affordability, should help to dampen price run-ups.

These should help prevent a full-blown bubble from developing and subsequently collapsing, as experienced recently in the US and European property markets, concluded Yeah.

Nonetheless, Yeah doesn’t expect home sales to fall off sharply as lending rates have not peaked. “There will be buyers, especially owner-occupied ones, who are looking to lock in the low interest rates before they are raised.”

By Lim Siew May of Personal Money
Tuesday, 01 June 2010 12:23

White Lily @ Minden Heights

admin — Sat, 10 Jul 2010 05:35:53 +0000

White Lily @ Minden Heights, a freehold residential project by PPM Realty Sdn Bhd. The project is located in Minden Heights, Penang, just 10 minutes away from the Penang Bridge, Queensbay Mall and Bayan Lepas Industrial Area.

White Lily @ Minden Heights comprises 73 units three storey terrace house. It is a gated and guarded community with 24 hours security and a guard house at the entrance.

Property Project : White Lily, Minden Heights

Location : Minden Heights, Gelugor, Penang

Property Type : 3-Storey Terrace

Tenure : Freehold

Land Area : 22′ x 60′

Total Units : 73

Developer : PPM Realty Sdn Bhd

Photo taken by James – 15th May 2010

TK Residence

admin — Sat, 10 Jul 2010 05:33:55 +0000

TK Residence is located at Teluk Kumbar, a residential property project by VST Group. Ideally located with easy access to the Bayan Lepas Industrial Area, Penang International Airport and the 2nd Link Bridge.

TK Residence comprises 30 units of 2 storey terrace house. Each terrace house comes with land area measuring from 20′ x 60′ and built-up area of 1,780 to 1,953 sq.ft.

Property Project : TK Residence

Location : Teluk Kumbar, Penang

Property Type : 2-Storey Terrace House

Tenure : Freehold

Built-up Area : 1,780 – 1,953 sq.ft.

Land Area : 1,200 – 2,600 sq.ft.

Total Units : 30

Developer : VST Group

Website : www.vstgroup.com.my

Cordelia @ Taman Pantai Indah

admin — Sat, 10 Jul 2010 05:30:36 +0000

Cordelia @ Taman Pantai Indah is a freehold residential project by Chong Company Sdn Bhd, nestled in the well-established suburb of Batu Uban. It is strategically located with easy access from the Penang Bridge and the Coastal Highway.

Cordelia @ Taman Pantai Indah consists of 3-storey super link house. Each has a built-up area of approximately 3,600 sq.ft. and a land area measuring 22′ x 90′. There are 5 bedrooms, 4 bathrooms and comes with a roof top garden and private backyard.

Property Project : Cordelia @ Taman Pantai Indah

Location : Taman Pantai Indah, Bayan Lepas, Penang

Property Type : 3-Storey Link House

Tenure : Freehold

Built-up Area : approx. 3,600 sq.ft.

Land Area : 22′ x 90′

Developer : Chong Company Sdn Bhd

Website : www.chongcompany.com

Taman Sri Aman

admin — Sat, 10 Jul 2010 05:28:02 +0000

Taman Sri Aman is located in the heart of Batu Maung, Penang. It is strategically located and has easy access to Bayan Lepas Industrial Area, Penang International Airport and Penang 2nd Link Bridge.

Taman Sri Aman comprising 37 units of 2-storey terrace. Every terrace house come with a spacious land area measuring 22′ x 90′ and built-up area of approximately 2,200 sq.ft. All units are fitted with security system and quality finishing with 2′ x 2′ glossy tiles.

Location : Batu Maung, Penang

Property Type : 2-Storey Terrace

Tenure : Freehold

Built-Up Area : 2,200 sq.ft.

Land Area : 22′ x 90′

Total Units : 37

Developer : Lip Sin Group

Taman Nyaman Indah (Phase 2)

admin — Sat, 10 Jul 2010 05:25:42 +0000

Taman Nyaman Indah (Phase 2) is a residential project by Builders Network Sdn Bhd, comprising 42 units of 3-storey terraces. Each intermediate unit has a land area measuring 20′ x 70′ and built-up area of 2,460 sq.ft.

Taman Nyaman Indah (Phase 2) is located in Balik Pulau, just behind the Taman Nyaman Indah Phase 1 double storey terraces.

Location : Jalan Pondok Upih, Balik Pulau, Penang

Property Type : 3-storey terrace

Tenure : Freehold

Land Area : 20′ x 70′

Built-up Area : approx. 2,460 sq.ft.

Total Units : 42

Developer : Builders Network Sdn Bhd

For enquiries please contact :

May Ong (Senior Sales Admin Executive)

Builders Network Sdn Bhd

199 Macalister Road

10450 Pulau Pinang

(04)-2295650

(019)-4429898

Sunway Aspera

admin — Sat, 10 Jul 2010 05:23:11 +0000

Sunway Aspera is a freehold residential property project located at Sungai Batu, Penang. Developed by Sunway Grand Sdn Bhd (a subsidiary of Sunway City Berhad), the project comprises 2-storey and 3-storey terrace house with a total of 85 units.

The 2-storey terrace house come with land area measuring 20′ x 60′ (standard) & 20′ x 65′ (corner unit) and has a built-up area of 1,840 sq.ft. & 2,040 sq.ft. respectively. There are 4 bedrooms and 3 bathrooms in each unit.

Location : Sungai Batu, Teluk Kumbar, Penang

Property Type : 2-Storey Terrace House

Tenure : Freehold

Lot Size : 20′ x 60′ & 20′ x 65′

Built-up Area : 1,840 & 2,040 sq.ft.

Total Units : 85

Developer : Sunway Grand Sdn Bhd (a subsidiary of Sunway City Berhad)

Website : www.sunwaycity.com

Riverside Residences

admin — Sat, 10 Jul 2010 05:20:41 +0000

Riverside Residences is located in Relau, Penang with easy access to Penang Bridge and Bayan Lepas Industrial Area. Public amenities such as banks, hospital, schools and shopping mall are in the vicinity.

Riverside Residences comprises 3-storey terrace, semi-detached home and condominium. The terrace and semi-detached homes come with spacious built-up and land area. For condominiums, it is complete with condo and recreational facilities.

Property Project : Riverside Residences

Location : Relau, Penang

Property Type : Condominium, Terrace, Semi-Detached

Tenure : Freehold

Developer : G.I.M Smart Venture Sdn Bhd

Website : www.gim.com.my