property developer


Govt urged to set up price control mechanism for property market

KUALA LUMPUR: There should be a price control mechanism for residential properties to avoid the escalation of prices, suggested National House Buyers Association vice president Brig Gen (R) Datuk Goh Seng Toh (pix).

“We’re practising certain limit and price control when we dictate the prices of affordable houses and low cost houses so it’s a matter of extending that,“ he said during a panel discussion on “Housing in Malaysia: Policy Discourse” by Khazanah Research Institute (KRI) here today.

He said the country is stringent on controlling the prices of cooking oil and sugar, for example, but yet in the housing arena, it has allowed property developers to call the shots in setting house prices.

According to KRI’s latest publication “Rethinking Housing: Between State, Market and Society”, housing affordability worsened significantly between 2012 and 2014 as the housing supply does not cater to demand.

IBM shutting its Tampines plant, laying off more workers

SINGAPORE, April 12 — Nine years after it opened with much fanfare, global technology giant IBM’s manufacturing facility in Tampines will be shut, with the remaining workers to be laid off. The shutting of the IBM Singapore Technology Park comes…

Tambun Indah unit to buy Penang land

PETALING JAYA: Tambun Indah Land Bhd’s 70%-owned unit Mustiara Sdn Bhd has proposed to buy 27 parcels of freehold land measuring 209.54 acres in South Seberang Perai District, Penang from TPPT Sdn Bhd for RM131 million cash.

In a Bursa Malaysia filing today, the property developer said it has proposed to provide financial assistance of up to RM3.45 million via shareholder’s advances to Mustiara to fund the acceptance deposit in relation to the letter of acceptance and other costs related to the land acquisition.

The shareholder’s advances are subject to an interest rate of 5.12% per annum calculated on a monthly basis.

The group said Mustiara had paid the acceptance deposit of RM2.62 million, which was funded via the proposed provision of financial assistance.

The remaining balance of the purchase consideration will be funded via bank borrowings and/or additional financial assistance from the shareholders of Mustiara.

Tambun Indah said it intends to fund the shareholder’s advances via its internally generated funds.

The group’s share price was unchanged at 78 sen today with 168,300 shares changing hands.

LBS’ new Dengkil township, [email protected], launched today

KUALA LUMPUR, April 9 — A new 633 acre self-sustainable township was launched today in Dengkil by award-winning property developers LBS Bina Group Berhad (LBS). The new development, named [email protected], has already sold out its first and second…

Rehda expects better HOC-Mapex 2019 in Penang

GEORGE TOWN: The Real Estate and Housing Developers Association (Rehda) – Penang branch anticipates the upcoming Home Ownership Campaign – Malaysia Property Expo (HOC-Mapex), to be held from April 12-14, will be more successful than the previous edition.

Its chairman, Datuk Toh Chin Leong (pix) said during the last Mapex Penang, which was held from Feb 7-10 this year, many were still unclear about the stamp duty exemption for residential properties sold between Jan 1 and June 30, 2019.

He said residential properties priced between RM300,001 and RM1 million (before discount) were eligible for stamp duty exemption, while those priced above RM1 million would be charged a stamp duty of 3%.

“However, with the stamp duty exemptions being clearly announced, we now have more developers coming in to take part in the upcoming HOC-Mapex Penang to showcase their properties and offer attractive incentives,” he told a press conference yesterday.

Aside from the stamp duty exemption for residential units, Toh said the incentives include a minimum of 10% discounts for all properties, extra rebates, renovation packages and special packages by individual property developers.

Meanwhile, Mapex organising chairman Ng Chin U said 20 property developers would be participating in the upcoming event, showcasing more than 3,000 units of properties worth over RM3 billion in total.

He said that properties such as double-storey bungalows, double-storey semi-detached houses, larger double-storey terraces and condominiums on the island and mainland would be featured during the event.

“On the island’s side, the properties to be showcased are located in Balik Pulau, Teluk Kumbar, Georgetown and Jelutong.

“On the mainland, we have interesting projects such as the SP Setia’s integrated township in Seberang Perai, and some projects in Bukit Tambun, Batu Kawan, Sungai Bakap and Nibong Tebal,” added Ng.

Ecoworld’s Q1 net profit rises over threefold to RM30.32m

KUALA LUMPUR, March 28 — Eco World Development Group Bhd’s (EcoWorld) net profit surged to RM30.32 million for the first quarter ended January 31, 2019 (Q1 FY19), from RM9.77 million in the same period last year following a…

E&O has deep value, says Affin Hwang Capital

PETALING JAYA: Affin Hwang Capital reiterated its long-term “buy” call on Eastern & Oriental Bhd (E&O) with a reduced target price of RM1.44, after a visit to the property developer’s Seri Tanjung Pinang Phase 2A (STP2A) project.

“We reduce our RNAV (revalued net asset value)/share to RM2.88 from RM3.12 previously to reflect the dilutive impact of the private placement. Based on the same 50% discount to RNAV, our target price is cut to RM1.44 from RM1.56. We see deep value in the stock as it is currently trading at price/RNAV of 0.3 times,” it said in its report.

According to Affin Hwang Capital, overall reclamation work is 73% complete at STP2A and the group is on track for full completion by end of 2019.

The reclamation work was initially slated for completion in June 2018, but was delayed to December 2019 due to complications encountered in undertaking large scale reclamation projects namely a 253-acre island and 131-acre Gurney Wharf.

The 131-acre Gurney Wharf will be handed over to the government upon completion.

“We saw a substantial portion of development land on the island has surfaced during our visit. We gather that non-financial foreign parties, including several from Singapore, are exploring joint venture opportunities with E&O to develop part of STP2A,” said Affin Hwang Capital.

Meanwhile, the entry of Tan Sri Wan Azmi Wan Hamzah as a strategic partner is expected to support E&O’s fund raising efforts to accelerate the development of STP2A.

Rehda: Property developers turn positive on second-half outlook

PETALING JAYA: Property developers are more optimistic on the outlook of the property industry in the second half (2H) of 2019 on the back of improved consumer sentiment, according to Real Estate and Housing Developers’ Association Malaysia (Rehda).

For 1H 2019, the economic and business as well as property industry outlook remained neutral, president Datuk Soam Heng Choon (pix) said at a media briefing here today.

“Developers feel that there are more people walking in to their property gallery, thus they expect to have better chance to increase their sales compared with six months ago,” he added.

Based on Rehda’s Property Industry Survey 2H 2018, 41% respondents planned to launch 8,991 units in 1H 2019, comprising 3,637 strata units and 5,210 landed units.

However, 78% respondents with future launches in 1H 2019 are anticipating their sales performance to be 50% and below within that period.

A total of 121 Rehda members in Peninsular Malaysia participated in the survey.

Indonesia real estate market expands as residential construction hits new heights

For the first time since its inception, the Indonesian government’s One Million Houses (OMH) programme has hit its goal of constructing at least 1m units per year, with 1.13 million built in 2018 as part of efforts to reduce the country’s housing backlog. According to Khalawi Abdul Hamid, director-general of housing provision at the Ministry […]

SP Setia targets RM5.65b sales this year

KUALA LUMPUR, Feb 27 — Malaysia’s leading property developer, SP Setia Bhd, is targeting property sales of RM5.65 billion this year, up 10 per cent, from the RM5.12 billion sales achieved in 2018, said president and chief executive officer Datuk…