Malaysia Property | Singapore Property | Priming, pricing KL propertyfor future

VulcanInternational's comment: good write up and those in town planning department/developers/government's real estate agencies should give it a thought/consideration.

Saturday May 5, 2012

COMMENT
By KUMAR THARMALINGAM

THE debate on the RM1mil price tag for foreign buyers is only relevant in the capital city of Kuala Lumpur and some of the more affluent Selangor neighbourhoods, parts of Penang and small parts of Iskandar. The rest of the country is pretty much stuck in the RM300,000 RM600,000 category.

The current unhappiness expressed by Malaysian house buyers however, are not those in the lower income bracket as there is an overhang of property in the lower price range. It has to do with the middle-income earners who would like to buy a house in a good location for less than RM1mil. The availability of prime residential land within KL is declining very rapidly and there has been an increase in conversion from residential to commercial. As KL becomes more commercially vibrant, this trend will continue. As a consequence, the price of land within the central part of KL is rising. Land owners are acutely aware of this and are profiting from the few available pieces of land in the city as developers bid for these scarce resources.

In the case of Johor, foreign property owners are mainly from Singapore. This is no surprise since the largest diaspora of Malaysians are Singaporeans. Given the proximity, close investments and business ties Malaysia has with Singapore, Singaporeans are the biggest real estate investors in Malaysia and vice versa.

On top of the rising cost of land, construction material and labour costs have been rising. Building material cost in KL increased by +50% since 2002. Developers try to sustain profit margins by raising prices of new launches and testing new grounds for affordability. Should demand be weak, new launches will be re-priced to ensure take-up. Very often, incomplete sales of high-end condominiums which are the less desirable to locals in terms of feng shui, etc are being marketed to foreigners. To raise the value of their projects, developers also add in features to make the development more eco-friendly.

More city housing

Greater KL is embarking on a path to increase its population from 6 million to 10 million by 2020. To ensure a smooth transition, Malaysia could learn from Singapore's experience which increased its population from 4.0 million to 5.2 million in 2011 in just a decade. One of the solutions that Singapore sought was to provide high density mass housing that replicates American skyscraper development. Built at densities of 6000 or more persons per sq km, a growing number of new public housing stock is more than 12 storeys. Under directions of upgrading and density intensification, old low-rise blocks in mature public housing estates are being demolished to make way for new taller developments. The latter ranging from 25 to 50 storeys is developed at higher plot ratios.

Approximately 85% of Singapore's 3.4 million resident population has moved to reside in public housing. While there are fears that high density housing reduces privacy in Singapore, this social loss is balanced with high levels of security that is easier to implement in dense cities, which has a higher-skilled workforce and an educated public that contributes actively to crime prevention. Also, point blocks release more land at ground level for gardens and Singapore has a zero car park policy.

What will the impact of a RM1mil limit on foreigners be?

n It could curb rising house prices that are targeted at foreigners but may not curb the demand from locals. In addition, there are unintended consequences on the business climate if foreign-investor sentiment is affected by random changes in policies.

n Whether it will push developers to sell prices below RM1mil will depend on the cost of their land purchase, the plot ratio, construction and labour costs.

n Those assets that are selling at slightly below RM1mil may rebrand themselves, above RM1mil to say that they are now targeting the foreign market.

Long-term solutions

Before implementing any drastic changes to curb foreign investment purchases, it is important to ascertain the contributory factors leading to price increases in KL. Malaysia can learn lessons from policy makers in other cities that have successfully grappled with rising city migrants within a short duration. For instance, Malaysia could consult the Singapore Housing Board and policy makers on how they have attempted to plan for the increase in expatriate population. With the proposed solutions, a public-private dialogue can be set up between developers, state housing agencies, Invest KL, Talent Corp, consumer bodies, both local and foreign, to look for long lasting solutions.

The dialogue should lead to a shared solution, which ensures future supply of mid-priced condominiums in the city. For instance, through a consultative approach, the government can give a higher plot ratio to help increase the margin of the developers and make it worth their while to target domestic buyers in the land-scarce city.

Striking a balance

At the same time, the Government can allow developers who have contributed to building mid-range products in the city to sustain their business operations by allowing the liberalisation of foreign ownership in the city ie have no Bumiputra content and no limitation on the sale of units to foreigners. Developers could then target entire projects in the city for foreign direct investment (FDI) and not exclude locals from paying the premium price for the asset. In other words, a 2-part structure like Singapore and Hong Kong.

To continue to attract FDI, which is critical for job-creation within KL, Malaysia can adopt the Dubai model, a very simple but effective model. Anyone can open an office in Dubai or buy a Dubai asset. Within a set boundary, work permits are given on demand and business registrations are on a one-day basis. You have to have your office in a designated area but you can live anywhere in Dubai.

What if we designated the Federal Territory of KL as a liberal international property investment zone. We can carve out parts that cannot be touched for FDI like Kampung Bahru. The opening of an Investment Zone could be similar to KLIFD, which is still a decade away from fruition. It should be for the whole of KL City Centre say a 10 km radius from KLCC as most of KL is in private sector hands.

It will certainly give a boost to our Invest KL and Talent Corp as Malaysia is walking the talk and is inclusive of everybody in the city of KL. It fits in with the 1Malaysia plan, liberalising KL to form an Asean Financial Centre.

More developed nations and some of the middle-income countries have been able to balance between development and using FDI to make better options for their people.

There are several possible ways of making housing more affordable. However, it is important to examine the consequences of taking such action. For instance, a house price control in the city may stop developers from building within the city. Other alternatives to explore could include, a housing trust that can be set up to acquire a land parcel through purchase, foreclosure, or donation. The trust arranges for a housing unit to be built on the parcel, then sells the building but retains ownership of the land beneath. The new homeowner leases the land for a nominal sum, generally for 99 years or until the house is resold.

This model keeps housing affordable for future buyers by controlling the resale price of houses on Community Land Trust (CLT) through a ground lease and resale formula. The CLT keeps the property affordable in perpetuity by restricting the profit buyers are able to take when they sell the house.

Liberal city policies

Up to March this year, Malaysian pension funds have spent US$2.4bil purchasing London property assets. That's RM7.3bil. Was there are any concern from the British press? Or the government? Actually they welcomed sovereign wealth funds coming into the country as they are seen to be passive investors. Why have western sovereign funds not bought passive assets in Malaysia? What has London got that we don't have. The answer stares at us in our face. It's a total lack of government control on who buys what in London. They understand that you can't take the buildings away. So they can happily enjoy the taxes they get from the funds.

Canary Wharf which is London's newest financial district has 100 countries fighting to have a share of it everyday. The UK government does not interfere in property transactions. Only collects the taxes and fees that comes with it. London has seen waves of investment from the 70s with the Japanese, Korean, Arab, Russian and now the Asian wave. The city is open to all investors and builders. It is now an international city.

The people of London have seen their salaries and fortunes grow as they participate and learn from the legions of investors that have occupied London over the past few decades. There is recession in UK but not in London.

We need to make Kuala Lumpur the city of choice to live, work and grow for Asean investors.

Kumar Tharmalingam is the CEO of MPI. MPI is a public-private initiative set up by the EPU to promote and facilitate foreign investment in Malaysian real estate. MPI raises Malaysia's profile in the international investment radar through constantly updating foreign investors on Malaysia and real estate information.

Source reference link:
http://biz.thestar.com.my/news/story.asp?file=/2012/5/5/business/11219979&sec=business

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Property Developer | Penang Property | Batu Ferringhi | Weld Quay |Tanjong Tokong | Batu Maung | Prices climbing even higher

Friday April 20, 2012

Early Bird By Johnni Wong
metrobiz@thestar.com.my

Despite talk that the condo market on Penang island may experience slowing demand due to new supply and unsold units of previous launches, we highlight five developments that seem to prove otherwise.

RECENTLY the vivacious director of a public-listed company remarked that almost everyone she meets on the social circuit these days, is a “property developer”.

“It seems that everyone I bump into at a social event is calling themselves a developer,” said the immaculately-dressed boss of a property group, referring to those in the manufacturing sector and in the service industry.

Seemingly, anyone of any financial standing is jumping on the property bandwagon and coming up with boutique developments regardless of their experience or track record.

Her remark struck me as being profoundly true and indicative of another promising trend for the ambitious. But at the back of my mind, was the spectre of abandoned projects.

When I mentioned this remark to the CEO of an international property agency, he sheepishly admitted that he too, has a small share in a property venture.

His reckoning is that, with the pooling of resources with like-minded talent and with the right piece of land and concept, one really can’t go wrong. And looking at his project’s location, architectural concept and selling price, he may be on the right track.

Batu Ferringhi

And speaking of trends, Penang island continues to attract property buyers despite escalating prices, and consequently, more developments. Despite the fact that the Tanjung Tokong-Tanjung Bungah-Batu Ferringhi stretch of road is always congested with traffic during festive seasons, the north-eastern part of the island continues to attract holiday-makers and property investors.

In fact, the most expensive condo development on the island is on Batu Ferringhi beach, next to Hard Rock Hotel.

The By The Sea luxury development comprising 138 suites undertaken by SDB Properties (a subsidiary of Selangor Dredging Bhd) is commanding over RM1,400 psf for the sea-facing units. This residential development is SDB’s maiden project in Penang.

A lower-level unit which spans 107sq m (1,160sq ft) is available at RM1,723,000 or RM1,485 psf. But executive suites of 282 sq m (3,038sq ft) each, are available for RM3,489,000 or under RM1,200 psf.

The project is a commercial development and involves 1.9ha of freehold land.

Farquhar Road

The high price level of By The Sea may yet be topped by YTL Land & Development Bhd’s Shorefront condominium project. Soon to be launched, the latest word is that the premium units will top RM1,500 psf. This is also YTL’s first property development in Penang.

Sited next to the E&O Hotel along Farquhar Road in George Town, the initial proposal of 75 duplex units on six storeys, is being revised right now.

Originally, the plan was to have low-rise condominium units of between 345sq m and 380sq m (3,720sq ft to 4,100sq ft) — with only two units on each floor.

Word has it that some of the 380sq m units will likely be halved to become smaller units. But overall, the total number of units will stay below 100 to maintain exclusivity.

At present, the indicative selling price is between RM1,200 and RM1,500 psf. What’s most attractive about this development is the location. The 1.2ha of freehold land next to the sea is one of the best spots in the city.

Weld Quay

Also, located in George Town is another interesting high-priced development that capitalises on Penang’s colonial architecture. While the larger residential units are selling about RM1,250 psf, the smallest units surprisingly even exceed RM1,400 psf.

Located in Weld Quay, within the Unesco World Heritage site in George Town, the RM250mil Rice Miller mixed-development project offers another luxury living option. This development — in the old harbour area — is said to be modelled after other waterfront developments such as in Boston, New York, Baltimore, London and Sydney.

Undertaken by Asian Global Business Sdn Bhd (AGB), the development is sited on four adjoining parcels of freehold land totalling 1.2ha.

Spearheaded by AGB chairman Kate Lim and managing director Dr Noraini Abdullah, this maiden property development includes a serviced-residence component plus a boutique hotel with 48 suites, two office buildings, retail space as well as food and beverage outlets. The concept is colonial architecture with modern amenities.

Lim is the great-granddaughter of Lim Choo Guan (1884-1901), who is better known as Phuah Hin Leong, a pioneering and wealthy rice miller in Penang. Puah was also the grandfather of former ambassador and illustrious lawyer Tan Sri P.G. Lim.

Touted as low-density, the Rice Miller City Residences will comprise 99 serviced residences within two residential blocks of five-storey height.

With 16 layout designs, the units range from studio homes to one-bedroom, two-bedroom and three-bedroom units as well as duplexes. The built-up areas range between 71sq m and 322sq m (766sq ft and 3,472sq ft). The units are priced between RM1.13mil and RM3.7mil.

When opened, the Rice Miller Hotel will reportedly charge RM1,000 a night for its luxury suites of 51sq m (550sq ft).

Tanjong Tokong

Meanwhile, Eastern & Oriental Bhd (E&O) has been in the news quite a bit recently. Property-wise, the company has just launched its Andaman at Quayside condominium project in Seri Tanjung Pinang, Tanjong Tokong, at an average price of RM1,200 psf.

However, only Tower 1F of the three residential tower blocks is open for sale. There will be a second launch in July. Other phases will eventually include four more residential towers.

Located within the 8.5ha Quayside resort development, Andaman at Quayside takes up 2.6ha of the freehold land and is near a marina at Straits Quay. The architectural firm for the project is GDP Architects.

Among the unique attractions at the Quayside development is a 1.8ha private waterpark designed by Seattle-based landscape architects at Geyer Coburn Hutchins.

From the how units, its seems that the,two-bedroom Type D (190sq m / 2,046sq ft) layout offers a more luxurious feel, especially with the two equally spacious bathrooms. And the extra large balcony is a bonus.

The other layout options include two types of one-bedroom suites (85sq m and 105sq m / 914sq ft and 1,127sq ft) and another one-plus-one bedroom unit as well as two types of three-bedroom suites (258sq m and 262sq m / 2,776sq ft and 2,824sq ft).

Batu Maung

For more affordable condos, we have to look further afield. On another part of the island, in Batu Maung, is Mah Sing’s Southbay Development. The site spans 35.6 ha (88 acres) of freehold land and comprises three main components:

Southbay City (on 14ha, the commercial and tourism component will include residential suites, mall, Grade A office units, hotel and resort);

Legenda @ Southbay (on 11.2ha, there will be 76 resort bungalow units of three- and four-storey height. Built-ups are from 600sq m or 6,460sq ft); and

Residence @ Southbay (on 10.4ha, a total of 284 super-linked houses of three-storey height have been built and sold. Built-up is from 290sq m or 3,130sq ft).

Within Southbay City, the Southbay Plaza project is one of the eight parcels of development and comprises retail outlets and residential suites, which have yet to be launched. It is now open for preview for early birds. The residential suites offer a total of 206 units, while the retail outlets number 47 units. The average cost is RM568 psf.

38 projects

Of late, Mah Sing has been phenomenally active. To date, the Mah Sing Group is involved in 38 property developments. It has completed six projects and is currently selling 16 projects while working on launching 11 more. Five more projects are in the planning stages.

Besides, the Southbay projects mentioned earlier, its Penang developments include Icon Residence and Ferringhi Residence. The latter involves low-rise condo villas and high-rise resort condominiums. The Ferringhi site is accessed via Jalan Sungai 1 (opposite the Parkroyal Hotel) off Jalan Batu Ferringhi.

Located at Pykett Avenue in George Town, Icon Residence involves 1.3ha and offers waterfront living. There are four condo towers between 24 and 30 storeys. There are six layout options ranging from 120sq m to 325sq m (1,300sq ft to 3,500sq ft) at an average cost of RM700 psf.

But it is in the Klang Valley, where Mah Sing has been most visible. Its latest projects include:

M City, Jalan Ampang, KL (Phase 1, 401 SoHo units at RM919 psf have sold out. Phase 2, 546 serviced apartments at RM1,080 psf have sold 40%);

Icon City, PJ (The Icon Residence will be launched in May. The 249 units of the residential tower will have an average price of RM830 psf. And the Central Park and Gourmet Street shops totalling 20 units will sell for RM1,200 psf this weekend);

Ambrosia @ Kinrara Residence, Puchong (a new launch of 79 executive bungalows of 521sq m [5,608sq ft]. Prices from RM2.93mil with an average of RM486 psf);

M Residence, Rawang (a new launch of 6.7m by 23m [22ft x 80ft] double-storey, linked houses with a built-up of 221sq m [2,380sq ft]. Total of 165 units with 75% sold. Average cost is RM241 psf);

Icon Residence, Mont’ Kiara, KL (residential tower with 260 serviced apartments costing between RM1,200 and RM1,300 psf. Some 40% has been sold); and

Aman Square 2 @ Aman Perdana, Klang (two- and three-storey shops and office suites).

So, if you are keen on the property industry and looking for new job opportunities, Mah Sing is one company that is definitely going somewhere — fast.

Visit www.starproperty.my for updates on the prime projects mentioned in the article.

Source reference link:
http://thestar.com.my/metro/story.asp?file=/2012/4/20/north/11141255&sec=north

Pictures below:
Seaview: Selangor Dredging Bhd's By The Sea project will be the second beach front property for residential purposes along a stretch dominated by hotels.

Luxurious: The RM250mil Rice Miller development in Weld Quay is AGB's maiden project.

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Useful information on FAQ for Sale and Purchase of Houses

Malaysia Property Market | Sale and Purchase of Houses
Source: The Malaysian Bar
http://www.malaysianbar.org.my/content/view/1382/218/
_____________________________
VulcanInternational's advice: if you're not sure do consult your lawyer.
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1. Information which a buyer should obtain when buying a house

1. Does it have a separate title?

2. Take a photocopy of the title.

3. Get a photocopy of :-
(a) current quit rent receipt;
(b) current assessment receipt.
4. Make sure you deal with owner of house or his duly authorised agent. (such authority should be in writing). Any other person will not be able to make any binding commitment to you.

5.1. If the house/apartment does not have any title, then get evidence of the seller's ownership i.e. a copy of the Sale & Purchase Agreement (SPA) made by the seller with the developer when he purchased the house/apartment.

5.2. If the seller is a Second/ Third hand owner, then he would have to give you:-
(a) 1st SPA made by 1st owner with developer;
(b) 2nd SPA made between 1st owner and seller, (if 2nd hand); and
(c) 3rd SPA between 2nd owner and 3rd owner seller, (if 3rd hand).
as proof that the seller is the owner of the house/apartment.

6. Did the seller take a loan to buy the property?

For most cases, the answer is "yes". In such a case, you should get the seller to provide you with the bank's statement of how much he still owes the bank (redemption statement). With the redemption statement, you would know how much money you can release to the seller and how much is to be paid to his bank to obtain a discharge of the property from the bank.

2. Information relevant to apartment

1) Maintenance and other charges that need to be paid to developer/management committee. You should check that seller is up to date with his payments and there are no arrears due to developer/management corporation.

3. Housing Schemes that are developed by Statutory bodies e.g. Penang Development Corporation (PDC), Perda, PKNS, etc

1) The SPA of such schemes may have restriction on the buyer selling the property i.e. it could not be sold within a stipulated period or without the consent of the government.

2) The title to the property may have restrictions. (the restrictions could be read from the title or search of the title) e.g. property cannot be transferred or charged without State consent.

3) The consent application may take a few months to be approved.

4. Documents you need to sign

1) Sale & Purchase Agreement;

2) CKHT form (form required to be submitted by Vendor and Purchaser to Inland Revenue Board Malaysia

3) Stamp Duty form;

4) Transfer form 14A. (If title is issued);

5) Deed of Assignment (if title is not issued).

5. The process involved in getting you registered as the owner of the property (in cases where title is issued)

1) Both seller and buyer sign transfer form 14A.

2) Lawyer sends transfer form to Stamp Office for adjudication to ascertain how much stamp duty is to be paid.

3) Stamp Office then stamps 'transfer form' for a nominal value of RM10.00 and returns transfer form to lawyer.

4) Stamp Office then informs Valuation Department of transaction. Valuation Department then values property and informs Stamp Office of valuation.

5) Stamp Office then issues PDS form to the lawyer. Buyer is normally given three (3) to four (4) weeks to pay stamp duty failing which, a penalty would be imposed.

6) Lawyer collects stamp duty from purchaser and proceeds to stamp transfer form. It may take about a week for the Stamp Office to return the lawyer the duly endorsed form. After stamping transfer form, lawyer presents the transfer form to the Land Registry/Office for registration. On presentation, you would be the registered owner of the property. However it may take several months (depending on which Land Office) before the physical title is returned by the Land Registry/Office. With the computerization process recently implemented in all Land Offices/ Registries in the country, the process is expected to be shortened.

If you obtain a loan from a bank to buy the property, the title would be sent to the bank. You should get a photocopy of the title from the lawyer for your record.

6. How is stamp duty calculated?

For the transfer/assignment (if no individual title is issued), based on the adjudicated value by the Stamp Office:

Amt charge (RM) %tage Duty(RM)

On the First
100,000.00 1% 1,000.00

On the Following
400,000.00 2% 8,000.00

More than
500,000.00 3%

For Charge
Stamp duty on a Charge is RM5.00 per RM1,000/- or part thereof of the loan amount e.g. Loan of RM100,000/-, stamp duty is RM 500/- on the original. The stamp duty per copy of the document is RM10/-.

The assessed value is the value assessed by the Valuation Office based on the purchase price or the market value of the property, whichever is higher.

7. Appointment of Lawyers

1. You have the right to appoint a lawyer of your choice to act for you in any transaction whether it is a purchase from a developer or an individual. After all, legal fees etc, are borne by you. You should ascertain that:-

(a) he is a lawyer;

(b) that he has a valid practising certificate for the current year.

Verification of the above can be done with the Bar Council.

Each party to the transaction is advised to retain separate lawyers to protect their respective interests.

A lawyer can:
(a) advise, prepare and /or vet documents such as SPA, deed of assignment, deed of reassignment, deed of mutual covenants, deed of reassignment and loan document. However, the SPA for purchases of residential properties from a developer is a standard form agreement fixed by law;
(b) conduct land, bankruptcy/insolvency and company searches to ensure that there are no surprises, such as a different registered owner, encumbrances (charges, caveats), conditions or restrictions on the title (important for a buyer), or that a party is bankrupt/insolvent;
(c) if there is an individual title, to enter a private caveat to freeze all dealings in the property until it is transferred to the buyer;
(d) send documents/instruments to the Stamp Office for adjudication and arrange for their stamping;
(e) act as stakeholder, to hold all money paid, retain 5% of the purchase price for the purpose of Real Property Gains Tax; and/or to hold the balance of the purchase price;
(f) prepare and witness the execution of statutory forms;
(g) for a sub-sale where the individual title has not been issued, get the consent of the developer to the sale of the property to the new buyer and to undertake the registration of the property in the name of the new buyer. The lawyer should also get an undertaking from the developer not to further encumber the property, and for a development project with a master title, a letter of disclaimer from the chargee of the master title confirming no right or interest in the individual property;
(h) if the buyer takes a loan, get a letter of undertaking from the lender. The undertaking will include an undertaking that it will not foreclose the property if the loan, interest, etc has been repaid/paid; and
(i) present the transfer (Form 14A) and if applicable, the charge (Form 16A) for registration at the land office.
Can a lawyer act for the seller, buyer and the buyer's lender?

A lawyer may only act for one party in one transaction, but may witness the execution of any documents/instruments by any party. A sale and purchase is one transaction and a loan is another separate transaction. Therefore a lawyer can act for a seller or buyer, and also a lender or borrower. However, the solicitor concerned should have regard to any possible conflict of interest situation.

Lawyers are bound by the Solicitors' Remuneration Order 1991 (SRO) and there are scale fees for all conveyancing transactions and secured banking transactions done by a lawyer.

Lawyers are not allowed to give any discount. If any lawyer gives a discount on the scale fees, he could face disciplinary action.

There are fixed scales for lawyers' fees if you, as a seller or buyer, engage a lawyer. (stated herein is for fees only and does not include disbursements).

8. Lawyers' Fees

Solicitors Remuneration Order 2006 (click to view or download)

9. House Seller's Guide

Documents/ information you must provide buyer/buyer's solicitors
(a) Copies of your previous Sale & Purchase Agreement and Loan Agreement/Title.
(b) Current year quit rent receipt.
(c) Current year assessment receipt.
(d) Redemption Statement from your bank (if you have charged your house to the bank).
(e) Letter of Undertaking to purchaser's bank to refund purchaser's bank loan released to you in the event the transfer/deed of assignment signed by you in favour of purchaser cannot be registered/is defective.
(f) Income Tax file reference number.
10. CKHT form (required to be submitted by Vendor and Purchaser to Inland Revenue Department under provisions of the Real Property Gains Tax Act 1976 (Act 169)(RPGT))

(1) Under the RPGT Act, you have to submit CKHT form 1 (for seller) and CKHT form 2 (for buyer) within 30 days from date of your Sale & Purchase Agreement.

(2) You can fill in the form and submit it yourself, or instruct the legal firm acting in the Sale & Purchase Agreement to fill and submit same for you, in which case you would have to pay its professional fees. If you submit the form on your own, you must provide evidence of such submission to the purchaser's solicitors i.e. an acknowledgment of receipt of the form by the Inland Revenue Department.

(3) Some material information needed to be included in the form:-
(a) your income tax reference number;
(b) copy of your previous Sale & Purchase Agreement to prove the price at which you bought your house;
(c) your IC No. and correspondence address;
(d) expenses which you want to claim as deductions:-
e.g. receipt for your legal fees and disbursements incurred to buy your house;
receipt for renovations done to house and receipts for agent's commission, etc.
(4) An individual is entitled to claim exemption from RPGT in respect of the disposal of one private residence only in his lifetime.

Please consult your tax consultant on matters relating to RPGT.

11. Utility deposits

Make sure you make arrangements with purchaser to obtain refund of the remaining deposits i.e. water, electricity, telephone etc.

12. For Apartments

Make sure you make arrangements to obtain the refund of deposits which you have paid the developer. You would be required to provide the necessary original receipts to obtain the refund.

13. Notification of Change of Ownership of House/Apartment to Local Authority i.e. Majlis Perbandaran.

You or your lawyer must notify the Local Authority of any change in the ownership of any house/apartment so that its assessment record could be updated. It is an offence if you fail to notify the relevant authority.

14. Receipt of Balance Purchase Price

Generally, there would be a short time lapse between the payment of the balance purchase price by the purchaser to your lawyer and the date when you receive the balance purchase price from your lawyer depending on the completion of documentation. Please seek clarification from your lawyer.

Source reference link: http://www.hba.org.my/faq/sale_and_purchase.htm

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Malaysia Property Market | Property News | Property continues climb

Wednesday April 18, 2012

By THOMAS HUONG
huong@thestar.com.my

The price of homes expected to advance 5% to 10% this year

PETALING JAYA: Overall price appreciation for residential properties is expected to range between 5% and 10% this year, according to CIMB Research.

In a report, the research unit said residential properties' price appreciation could be even higher but it believed that the Government would continue to remain vigilant on “runaway” property prices.

CIMB Research said in terms of house price appreciation, despite the slower real GDP (gross domestic product) growth projection of 3.8% compared with 5.1% in 2011, it believed that 2012 would be another good year due to several factors.

“Buying momentum continued to be strong, driven by inflationary fears.

“Supply growth should remain depressed as developers have only just started to focus more on affordable homes costing not more than RM500,000 in the Klang Valley.


“Major infrastructure improvements in the Klang Valley such as the MRT (My Rapid Transit), River Rehabilitation and covered walkway projects will help boost property prices.”

CIMB Research said although the residential property market would continue to set new records in 2012, it was expected that there would be a slowdown in the increase in overall transaction values in 2012 after two years of high growth that averaged around 30%.

“In view of credit-tightening measures by the central bank, we believe that the growth in transaction value should slow to 10% to 12% this year.”

CIMB Research noted that in 2011, the growth of residential property supply in Malaysia fell to 1.5%, which was the lowest on record.

The slowdown in supply growth was most pronounced in the big three markets (Johor, Penang and Klang Valley), which recorded an average growth of 1.2%.

The only states to buck the slowing trend were Terengganu, Kelantan and Perlis.

“If supply growth continues to lag behind population growth, house prices can only head in one direction.”

It was noted that major developers such as SP Setia Bhd, UEM Land Holdings Bhd, Mah Sing Group Bhd and UOA Development Bhd were all gunning for sales records this year and growth rates ranging from 10% to 35%.

It was also pointed out that the risks to CIMB Research's volume and price projections for 2012 included the global economic outlook and the local stock market performance.

However, CIMB Research is not optimistic about the commercial property market in the Klang Valley as oversupply will plague the sector for many years to come.

It noted that occupancy rates for the office and retail sector had started to drop.

Meanwhile, future supply of hotel rooms (under construction) in the Klang Valley is likely to depress occupancy rates in the coming years.

According to CIMB Research, UOA Development would be the biggest winner in a Klang Valley property boom as the company has no exposure elsewhere.

The research unit is also optimistic about the prospects for Johor, particularly Nusajaya, as 2012 would see the completion of various catalyst projects.

“The biggest beneficiaries of a property boom in Johor would be UEM Land due to its vast holdings in Nusajaya and SP Setia which is the dominant developer in the state.”

CIMB Research maintained its “trading buy” call on the property sector, but pointed out that property stocks could be sold down heavily in the event of an unfavourable general election outcome.

Source reference link: http://biz.thestar.com.my/news/story.asp?file=/2012/4/18/business/11123352&sec=business

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Singapore Real Estate News | Buyers snap up units at Singapore’spriciest suburban condo

Wednesday April 18, 2012

SINGAPORE: It may be Singapore's most expensive suburban condo, but more than 100 units of CapitaLand's Moshe Safdie-designed Sky Habitat in Bishan were snapped up on the first weekend of its launch.

Out of the 180 units released for sale, 125 units were sold last Sunday. Eighty-three per cent of the buyers were Singaporeans who intend to live in the units, said chief executive of CapitaLand Residential Singapore Wong Heang Fine.

Average prices range from S$1,747 per sq ft (psf) for a one-bedder to S$1,642 psf for a four-bedder. This works out to S$1.11mil for a 635 sq ft one-bedroom unit.

Visitors at the showroom told The Straits Times they were attracted to the design and location, despite the pricing and it being a 99-year leasehold project.

There was even a buyer, a sales executive who wanted to be known only as Danny, who toured the showflat only after he had bought two three-bedroom units - on the 33rd and 35th floors.

“Location-wise, it's very ideal. There's huge potential (for property) in Bishan - it's breaking records. Recently, there was a five-room (HDB) flat which was sold for S$950,000.”

The 32-year-old, who intends to rent out both units, added he had “not 1% of regret” about his purchase after visiting the showroom.

Public servant Patrick Bay, who bought a two-room plus study pool-facing unit, said he was drawn to the project's unique design, especially its “iconic structure”.

“The price is steep, yes, but it's comfortable with the incentives given,” Bay, 35, said, referring to the 3% early bird promotion.

He intends to live in the unit with his wife for “at least 10 years”, and is confident that the value will be higher if he eventually decides to sell it.

Ku Swee Yong, chief executive of International Property Advisor, said the sales figures were a “very good achievement”, given that the average valuation of other 99-year leasehold condominiums in Bishan is between S$1,000 psf and S$1,200 psf.

But he had expected more robust sales given the initial hype.

He suggested: “Perhaps there is some investor fatigue in chasing up the high psf prices in the outskirts of Singapore.”

Meanwhile, new private home sales in the city state powered past the 2,000 mark again in March, just shy of February's equally robust numbers, setting the stage for a record quarter with sales in the three months alone eclipsing even that of some full-year tallies.

Developers sold 2,393 private homes last month - slightly down from February's 2,417 units - as the blistering pace of sales continued unabated in light of the flush of liquidity in the market and low interest rates.

This brings total sales in the first quarter to a record 6,682 units - even more than the number of homes sold in years such as 2009, 2003, 2004 and 2000.

Experts say that the unusually high number of launches boosted sales as Housing Board (HDB) upgraders and local investors entered the suburban market in droves. Including executive condominiums, a hybrid of public and private housing, developers sold 3,032 homes last month. - The Straits Times

Picture below:
Record breaking: Out of the 180 units of Sky Habitat released for sale, 125 units were sold. Eighty-three per cent of the buyers were Singaporeans who intend to live in the units.

Source reference link: http://biz.thestar.com.my/news/story.asp?file=/2012/4/18/business/11123230&sec=business

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