Property Malaysia

Seems like end of the year makes everyone take things a little slower and more festive…

The property industry has slowed down just a little over the last 2 weeks, probably due to the school holidays and long weekends in a stretch.

But we did see a few notable new launches in the papers, like Metropolitan SQ and Armanee Terrace II, both newer phases in Damansara Perdana. January, things might pick up a little, but most people are targeting after Chinese New Year to see more action.

Anyway, we at Property Malaysia would like to wish everyone a Happy New Year, drive safely, and spend wisely… and don’t drink and drive!

We can almost here the verses of ‘Auld Lang Syne’ already…

See you in 2006!

We were reading the year end bumper issue of The Edge last weekend, and a short column caught our eye amidst the many interesting articles.

It was the Newsmakers section, highlighting the biggest movers and shakers in the industry, and included such power players like Tan Sri Lim Kok Thay, Soh Chin Wen and Tengku Tan Sri Mahaleel Tengku Ariff, formerly of Proton.

But the write-up that interested us most was on the Executive Director of Talam Berhad, Tan Sri Chan Ah Chye. We have been quite familiar with the wheeling and dealings of Talam and their many subsidiaries for many years now, mostly through our many contacts and associates who either work for them or with them.

We have highlighted Talam before here in Property Malaysia (mostly to strong feedback from readers!), you can read them here:

Talam’s Many Problems
Bright Future for IJM Properties

The write-up in the Edge pretty much confirmed some of the insider news we have been hearing months ago, especially since the entrance of IJM.

To quote the article:

…Talam Bhd and Kumpulan Europlus Bhd had shaky foundations. After the Asian financial crisis, with debts piling up and projects drying up, the group embarked on a restructuring exercise that bought it time to get back into the game. Big projects were lined up and more of Chan’s famed affordable houses were planned. The only thing was to convince buyers, partners and the market that this time, Talam-Europlus and Chan would get it right.

Unfortunately, it didn’t work.

The article went on the highlight the problems that IJM faced after acquiring some of Talam’s ‘best’ projects, these are actually listed in our earlier posting (here). The Edge hinted that there was a possibility of the IJM-Talam-Europlus deal may fall through, and that Chan “is unlikely that he will make another effort to go it alone“.

In reply to ’shoddy’ workmanship, a plight quite commonly associated with Talam homes, he had this to say,

“What shoddy work? Maybe a few, okay lah more than others, but we also build more than others. That’s what I told the minister.”

To all Malaysians and readers worldwide, Merry Christmas and enjoy your holidays!

Property Malaysia will resume after the long weekend, meantime, here’s to a good 2006!

We did an earlier post on a glossary of real estate and property related terms (you can read it here), and due to requests from some readers we are highlighting a few more…

Caveat emptor - A Latin phrase meaning “Let the buyer beware.”

Master plan - A comprehensive plan to guide the long-term physical development of a particular area.

Refinance - Obtaining a new loan to pay off an existing loan. Refinancing is a popular practice when interest rates drop.

Maturity - The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.

Fiduciary - One in whom trust and confidence is placed; a reference to a broker employed under the terms of a listing contract or buyer agency agreement.

Mortgage - A conditional transfer or pledge of real estate as security for the payment of a debt. Also, the document creating a mortgage lien.

Right of first refusal - Clause in a lease which gives the lesee (tenant) the right to purchase the rented property if during the term of the lease the lessor (landlord) receives an offer to purchase from a buyer. Usually the lessee must purchase on the terms and conditions of the buyer’s offer.

We got this from REHDA’s website, fairly useful for people who want to get nitty-gritty on certain particular issues.

Most or all of these books can be found in big bookshops like MPH or Times, if not, those old bookstores on Jalan Tuanku Abdul Rahman would have.

for starters, we recommend the HDA, Strata Titles Act, and Local Government Act. Not easy reading though, you need to know what you’re looking for…

LAWS AND REGULATIONS RELATING TO REAL ESTATE AND HOUSING DEVELOPMENT INDUSTRY

Ministry of Housing and Local Government

Housing Development (Control and Licensing) Act 1966
Housing Development (Control and Licensing) Regulations 1989
Housing Development (Housing Development Account) Regulations 1991
Housing Development (the Tribunal for Homebuyers Claims) Regulations 2002
Housing Development (Compounding of Offences) Regulations 2002

Local Government Department

Street, Drainage and Building Act 1974 (Act 133)
Town and Country Planning Act 1976 (Act 172)
Town Planners Act 1995 (Act 538)
Local Government Act 1976 (Act 171)
Road Transport Act 1987 (Act 333)
Control of Rent (Repeal) Act 1997 (Act 572)
Control of Rent Act 1966 (Act 363) (Revised 1988)
Federal Territory of Kuala Lumpur Land Rules 1995
Uniform Building By-Laws 1984
Malaysian Constitution, Schedule 9, Item 76(4) & 95(A)

National Housing Department

Street, Drainage and Building Act 1974 (Act 133)
Uniform Building By-Laws 1984

Fire Services Department
Fire Services Act 1988 (Act 341)
Uniform Building By-Laws 1984

Department of Town and Country Planning, Peninsular Malaysia

FMS Town Board Enactment (Cap 137) Chapter IX
National Land Code Act 56 of 1965
National Land Code (Penang and Malacca Titles) Act 1963 (Act 518)
Street, Drainage and Building Act 1974 (Act 133)
Strata Titles Act 1985 (Act 318)
Town and Country Planning Act 1976 (Act 172)
Uniform Building By-Laws 1984

Sewerage Services Department

Sewerage Services Act 1993 (Act 508)

Other Related Legislation

Communications and Multimedia Act 1998 (Act 588)
Continental Shelf Act 1966 (Act 83)
Electricity Supply Act 1990 (Act 447)
Energy Commission Act 2001 (Act 610)
Environmental Quality Act 1974 (Act 127)
Food Act 1983 (Act 281)
Land Acquisition Act 1960 (Act 486) (Revised 1992)
Land and Mining Plans and Documents (Photographic Copies) Act 1950 (Act 233) (Revised 1980)
Land Conservation Act 1960 (Act 385) (Revised 1989)
Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994 (Act 520) (Construction Industry Development Board / CIDB)
Malaysian Communications and Multimedia Commission Act 1998 (Act 589)
Mining Enactment (FMS Cap 137)
Municipal Ordinance S.S. Cap 133
National Land Rehabilitation and Consolidation Authority (Incorporation) Act 1966 (Act 398) (Revised 1989)
Occupational Safety and Health Act 1994 (Act 514)
Pengurusan Danaharta Nasional Berhad Act 1998
Real Property Gains Tax Act 1976 (Act 169)
Urban Development Authority Act (Act 46)
Waters Act 1920 (Act 418) (Revised 1989)
Waters Enactment FMS Cap 146

Yeah, I know our website is called ‘Property MALAYSIA‘, but we couldn’t help taking a short peek at the hottest luxury property in the region, Singapore’s Sentosa Cove. For the purists, don’t worry, normal service will resume tomorrow…!

We have seen this place being advertised in international magazines such as Forbes and Fortune, and it piqued our interests.

The website is very impressive, giving lots of information on the location, accessibility, types of units available and the facilities on offer.

In their words,

The Epitome of Waterfront Living

Unrivalled in location, quality and prestige, Sentosa Cove is a truly unique waterfront development that will change the shores and skylines of Singapore.

It is the first development of its kind to offer a marina-oriented lifestyle with quayside retail, marina and an upmarket residential enclave. Imagine the shimmering ocean as your neighbour. A world-class golf course in your backyard. The entire Sentosa Island as your playground. And more!

At the moment, they are offering hillside and bayside units, all top-notch luxury properties. We hear from our associates in Singapore that some of the sales team from a few big Malaysia property firms have gone down there to check our this impressive product.

Anyway, you can visit their site here, there are many in-depth FAQs and details for your perusal.

OK, now back to the regular programming…

Browsing the Internet, we found Malaysia’s listing on the website Property World, which is property magazine based in the Middle East.

The website concentrates on real estate for sale and onward rental including multi-country purchasing guidance, related service and special interest editorial. It is aimed at both expatriates and nationals who live and work in the Middle East Region as well as overseas residents interested in the Middle East Property Market. Anyway we found a few good articles and links there, but the thing that first caught our attention was the country property fact sheet.

They only mentioned 19 countries, with Singapore, Thailand and Malaysia the only SE Asian countries mentioned.

Anyway, the profile page showed a pretty blurry map of East and West Malaysia, and the info was quite interesting. An excerpt is shown below:

buying areas: High-end residential property in the affluent Klang Valley continues to dominate the residential market. Other favoured areas are Bandar Utama, Kota Damansara, Sunway Damansara, Mutiara Damansara and Langwaki (sic).

Price ranges: Vary as ever by quality and popularity of area but Malaysia offers a very wide spread of pricing bands. A 20% deposit of the house value is usually required.

Budgetary guide: Condominiums: US$ 66,000 to US$ 250,000, Bungalow: US$ 66,000 to US$ 225,000, Two Storey Bungalow (5 to 7 bedrooms): US$ 396,000 to $US 1.3 million, Luxury Villas: average US$ 925,000 upwards.

Overseas Investors: Foreign owners are permitted to buy up to two houses at a cost of not less than US$ 66,000 each, which also entitles them to a housing loan from a local bank. If selling a property they are subject to 30% Capital Gains tax.

And they cited 4 sites of source info – the Star (property section), Malaysian Ministry of Culture, Arts & Tourism, Malaysian Ministry of Home Affairs and Exchange.

Starhill Real Estate Investment Trust (REIT), made a decent debut on the first day of trading, and accounted for 31% of the total trading volume.

It opened at RM1.07, and closed at RM1.03, or seven sen above the retail offer price of 96 sen. There were 97.89 million shares done, representing about 40 per cent of the day’s total trading volume.at prices ranging from RM1 to RM1.07.

The Edge reports that:

TA Securities Research had accorded a fair value of RM1.17, given the tremendous growth potential of its assets.

YTL Corp raised RM513 million from the IPO, which is Malaysia’s largest property trust to be listed so far. Starhill’s IPO was 8.8 times subscribed when it closed Dec. 1. Some 94% of the IPO units were sold to institutional investors via book-building at MYR1.01 each.

Starhill, Malaysia’s first REIT to be marketed overseas in over a decade, also sold units to individual investors at MYR0.96 each. In total, Starhill sold 49% of the REIT, or 509.6 million units, raising about MYR513.2
million.

The diversified YTL Corp. (4677.KU) conglomerate, headed by managing director Francis Yeoh, controls 51% of Starhill post-IPO. Pintar Projek Bhd., a 70%-owned YTL unit, will manage the REIT.

Starhill has committed to paying out 100% of its earnings in dividends in 2006 and 2007. At MYR1.03 a unit, the REIT will yield about 6.1%, significantly higher than 12-month term bank deposit rates of 3.7%.

Other postings in Property Malaysia on Starhill REITs:
YTL launches Starhill REIT
YTL to Launch Starhill REIT in October

Other postings in Property Malaysia on REITs in general:
Axis REIT to Buy Two More PJ PropertiesUOA Offers REITs Today
Budget Boost for Malaysian REITs
Budget 2006: Effects on Housing & Property Sector
About Malaysian REITs
How Secure Are REITs?

Bukit Kiara Properties has won the ‘Best Overall SMB’ award, one of 5 companies at the recent Bukit Kiara Properties Sdn Bhd at the recent SMB Recognition Awards Series 2005 on Dec 15. The award was for the non-listed SMBs, which excel in all areas of their corporate performance.

It was the only property developer that won the award. The others were glove-make Riverstone Resources Sdn Bhd, lamp manufacturer Sirijaya Industries Sdn Bhd, Lee Soon Seng Plastic Industries Sdn Bhd and clean room designer IAQ Technology International Sdn Bhd.

According to a report,

The association said Bukit Kiara Properties was a niche property developer, which focused on building innovative and high quality homes for Malaysia’s elite group with its first high-end project – Aman Kiara. “Bukit Kiara Properties successfully completed Aman Kiara project which is the first residential property in Mont’ Kiara and developed Hijauan Kiara, the first spa-themed luxury condominium project there,” it said. Bukit Kiara properties managing director Tong Nguen Khoon, who accepted the award, described the award as a “milestone achievement for the company”.

Bukit Kiara Properties is headed by Dato’ Alan Tong Kok Mau and his son, NK Tong, formerly of the Sunrise group. For more info on the company, you can check out their website.

The Shah Alam City Council (MBSA) have drafted a Master Development Plan for villages and Malay reserve land in the outskirt areas of Shah Alam, as reported in Star Metro (Dec 13, page 6).

This includes the area around Paya Jaras and Sg. Buloh, with the idea of achieving a balance and systematic development. According to the report,

• The draft plan includes seven villages – Kg. Kubu Gajah, Kg. Merbau, Kg. Paya Jaras Hilir, Kg. Paya Jaras Hulu, Kg. Paya Jaras Tengah, Kg. Paya Jaras Dalam and Kg. Sg. Plong, covering an area of 1,425ha. The area is within a 2km radius of Sg. Buloh.

• According to the mayor, the plan has been prepared in accordance to the Town and Rural Planning Act, 1972 to ensure the villages benefit from the future massive development.
• MBSA plan to maintain the own identities of the villages, with emphasis on low-density development. The mayor also noted the villagers would be given a month to state their views on the plan before it is passed by the city council.

We applaud the council for taking the initiative to hold dialogue sessions like these with residents and villagers, and to draft a Master Development Plan for everyone to study. We hope that the more areas in the state will also be treated with such a plan, to ensure timely and structured development.