MALAYSIA | Monday June 11, 2012 KUALA LUMPUR land price too high?

Freehold land along Jalan Bukit Ceylon selling for RM700 per sq ft

KUALA LUMPUR: The three parcels of freehold land along Jalan Bukit Ceylon, Kuala Lumpur that was recently put up for sale are priced on the high side, property professionals said.

Last week, advertisements appeared for the sale by tender of three parcels totalling 36,563 sq ft with a reserve price of RM26mil, or about RM700 psf.

“On an as-is' basis, this is quite high. I would reckon a price of RM500-RM550 is more realistic considering its residential use status,” a valuer said.

Sources familiar with the sale said interested parties have to pay more if they were to convert it for commercial use.

“Commercial status fees can vary and it depends on a case to case basis by the authorities. It could be that after conversion, the cost of this piece of land may rise up to RM1,500 psf or more, which further adds to the costs of development,” sources said.

“If you are a developer, you must ask yourself whether you will be able to make a profitable sum,” he said.

However, a valuer said RM700 seems fair and the residential status was a non-issue.

“A developer can still build residential units and owners will not have to pay commercial rates for utilities. Although it may not be close to rail links, it is located in the city,” said a source.

StarBiz understands that the piece of land, which is located at the intersection of Jalan Bukit Ceylon and Jalan Ceylon, is situated on a hilly area and prospective developers who may be eyeing the piece of land will need to carry out additional levelling works, which will further add to the costs of development.

“I would reckon a 20% margin is comfortable before developers actually decide to do this (carry out development work).

“Ground works will definitely add a substantial amount to the costs as well,” a developer said.

Another property consultant used the example of a piece of prime freehold land measuring 50,063 square feet located in nearby Jalan Tengah, which is just next to Eastern & Oriental group's St Mary's Residences.

This piece of land is being transacted at about RM100mil, which prices it close to RM2,000 psf.

However, this piece of land has a commercial status, which does not require any additional costs for conversion.

It is also located in a relatively more centralised area nearer to public transport facilities.

Picture below: The piece of land, which is located at the intersection of Jalan Bukit Ceylon and Jalan Ceylon, is situated on a hilly area.

Source reference link:
http://biz.thestar.com.my/news/story.asp?file=/2012/6/11/business/11447665&sec=business

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M’sian investment in Aussie properties to grow

Wednesday June 6, 2012

By DAVID TAN
davidtan@thestar.com.my

GEORGE TOWN: Investments from Malaysia in the Australian property market is expected to grow by about 15% this year from RM125mil in 2011.

Property Talk director Steven Cheah said in an interview that for the past two years the investment in Australia had remained flat at about RM125mil per annum.

“This was due to the stronger Australian dollar. But since March, the Australian currency had weakened slightly and so we are anticipating more property investments in Australia.

“We have also been getting a lot more enquiries since March 2012 about investing in properties in Sydney and Melbourne,” he said.

Cheah said every year many Malaysians go to study in Australia, thus creating a severe shortage of property for rental.

“Many parents find that buying property for their children make more economic sense than renting. Once their children completed their education, the property can be rented as rental income or they can sell with good capital income,” he said.

According to Cheah, Melbourne was the top destination for Malaysian property investment funds.

“This is because many Malaysians have relatives who have migrated to Melbourne, where you can find a variety of Malaysian restaurants.

“According to the latest research by Australian Property Monitors, of the major capital cities, Melbourne has been the standout performer for house price growth over the last five years, with prices increasing almost 30% in just 15 months.

“Perth was the worst performing city, with the median house price unchanged in five years, which is largely a hangover from a resource-fuelled boom in prices in the early 2000,” Cheah said.

He added that Sydney and Melbourne were always voted as the top three most livable cities in Asia by ECA International, a research firm with its Asia headquarters in Hong Kong.

On Mirvac's new project in Melbourne, Cheah said the Array project, comprising 169 condominiums was next to the Yarra River.

“The project, introduced in Shanghai recently, received very positive response. Some 35 units were sold in one week,” he said.

The Array condominiums, positioned on the north-facing bank of the Yarra River, with built-up areas from 55 sq m onwards are priced from A$513,000.

“A limited number of three bedroom, deluxe Sky Residence options, priced from A$1.41mil, is also available,” Cheah said.

The project will be exclusively previewed at Hilton Kuala Lumpur on June 9 and June 10.

“Construction work on the Array project has started and is scheduled for completion in end-2014,” Cheah added.

Source reference link: http://biz.thestar.com.my/news/story.asp?file=/2012/6/6/business/11405667&sec=business

Picture: Artist impression of the Array project in Melbourne by Mirvac.

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Penang Property | Property Penang | Buildings only on land below76m(250feet) in height

Wednesday June 6, 2012

GEORGE TOWN: Hillslope development in Penang will only be approved if the land is less than 76m high.

However, State Local Government and Traffic Management Committee chairman Chow Kon Yeow said developers who had obtained planning permission from the Seberang Prai Municipal Council and Penang Municipal Council prior to 2007 were exempted from the ruling.

“Yes, we have approved hillslope development but our approval is subject to scrutiny by the high-risk land development committee as well as over 10 other relevant authorities, including the local councils' internal departments,” he said.

Chow said the local councils were finalising their reports on hillslope development approvals for submission to the Housing and Local Government Ministry.

“We will submit a full report by this week,” he said.

State Public Works, Utilities and Transportation Committee chairman Lim Hock Seng said recommendations of the high-risk land development committee, which he heads, were not binding on the local councils.

The committee comprises professional bodies such as the Mineral and Geo-Science Department, Public Works Department, Drainage and Irrigation Department and Public Works Institute.

State Town and Country Planning, Housing and Arts Committee chairman Wong Hon Wai said hillslope development was necesssary as the Penang population of 1.6 million was expected to reach two million by 2020.

Source reference link: http://thestar.com.my/news/story.asp?file=/2012/6/6/nation/11426213&sec=nation

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Malaysia | Hassle-free Land Split

>Public can go online for speedy division of small estates<

BY HEMANANTHANl SIVANANDAM
newsdesk@thesundaily.com

8-June-2012

PUTRAJAYA: The public can now submit online applications for the division of small estates (valued bdow RM2 million). Natural Resources and Environment Minister Datuk Seri Douglas Uggah Embas said the online application service is an alternative platform to help heirs dealing with claims for the division of property bypass the hassle of having to go to the Office of Small Estate Distribution for due procedures.

"This platform allows for anywhere, as long as there is internet access," said Douglas when launching the service at his ministry yesterday.

He said the Department of Director- General of Lands and Mines (Federal), which is offering the service, is responsible for handling and solving the division of estates valued at RM2 million and below, as stipulated under the Small Estate (Distribution) Act 1955.

The Act, Douglas said, was established to help people solve the problem of estate distribution without much hassle.

"With this Act, all small estate settlement processes can be done at the Inheritance Division Unit of the Department of Director-General of Lands and Mines (Federal).

"Therefore, beneficiaries will no longer have to deal with the matter in the High Court," said Douglas.

He said the service also allows all parties involved to check the status of registration, property valuation, confirmation from the High Court, and notice of trial.

The Department of Director-General of Lands and Mines (Federal) has also set a target of three months to settle each claim.

Douglas said that last year the department received 53,928 cases nationwide and managed to solve 63.3% of them within the five-and-a half-month deadline.

He also said that from January to April this year, the department disposed of a total of 73.3% of the cases, with an average of 4,000 to 5,000 applications processed every month.

FOR MORE INFO visit: www.kptg.gov.my

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Malaysia | Small Estate (Distribution) Act 1955

The public can now submit online application for the division of small estate(valued below RM2 million)
as stipulated under the Small Estate (Distribution) Act 1955 MALAYSIA.

For more details refer to: http://www.kptg.gov.my/ms/small-estate-inheritance.html

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