Penang Property Malaysia | Penang Properties | Penang Apartment |Property For Sale | German envoy's bungalow for sale - at RM200mil

Property Prices in Jalan Kia Peng transactions | British High Commission RM295mil(134,075 sq ft) | 14 Persiaran Stonor RM72mil(43,082 sq ft)

VulcanInternational: We've a piece of this kind of prime land at Jalan Raja Chulan, Kuala Lumpur with asking price of RM1,200 per sq ft. Interested please contact Vulcan Lau, mobile: +6 016 451 1321
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KUALA LUMPUR: It has long been an iconic landmark in the prestigious Jalan Kia Peng area. However, the sprawling residence of the German ambassador, well known for its huge receptions and cocktails, will soon be no more.

The 80,000 sq ft plot on which the residence stands is being put up for sale.

Interested bidders will need deep pockets – the asking price is a whopping RM200mil.

There will be no shortage of bidders, though, going by the interest generated by the sale of the British chancery located a stone’s throw away in Jalan Ampang. It was was sold for RM294.97mil last year.

The German Embassy’s head of the cultural and press department Kathrin Heidl confirmed that the German Foreign Ministry had decided to give up the landed property.

She said the embassy would process the sale with the assistance of an agent.

The residence is now empty following the departure of Ambassador Dr Guenter Gruber on June 30.

Heidl said Gruber’s successor, Holger Wilfried Michael, would move into a rented property at Jalan Langgak Golf when he arrives on Aug 9.

The bungalow, resembling a clubhouse with a pitched roof, was built in such a way that the various portions of the house are seamlessly connected to each other, with huge rooms and entertainment areas.

Guests were able to move from one area of the house to another while the private quarters remained out of bounds.

The sale signals the changing sign of times for the local diplomatic corps.

Many of the larger missions prefer to sell off their landed properties and move into high-rise buildings.

Besides raking in a huge profit, there is also the advantage of added security available at the high-rise buildings and huge savings in terms of maintenance cost.

The British High Commission will be relocated to the nearby high-rise Menara Binjai.

A property agent said the Germans may be selling the grounds for the same reason as the British. “They want to monetise the land,’’ he added.

Land prices in the Kuala Lumpur City Centre (KLCC) area have stabilised and continue to generate interest from foreign parties from Singapore, Japan, South Korea and Taiwan.

Several land deals in the KLCC area last year were clinched within RM1,600 to RM1,700 per sq ft.

Pic below: Bungalow belonging to the German Embassy in Kuala Lumpur at Jalan Kia Peng put up for sale with asking price of RM200 mil or RM2,500 per sq ft.

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Penang Property Talk | Penang Properties | Property In Sale | CondoApartment | G Residences Ara Damansara

Malaysian Property | For Sale Condo | Vegamark Sdn Bhd under HCK Capital Group brings to you G Residences Ara Damansara with Lifestyle Mall concept. The Ara Damansara series was opened for purchase on late October 2012.

Situated at excellence location which is 3 mins away from LRT station. The G Residences Ara Damansara scheduled to be completed by mid 2005. The LRT will be completed on the same year.

The stylish and modern G Residences at Ara Damansara offers a wide range of delights and luxuries. With the unbeatable combination of lifestyle and leisure shops below, the distinction of having it all under one roof belongs solely to G Residences Ara Damansara.

Contemporary desires are fulfilled by intricate luxuries. Here, at G Residences, the range of amenities and facilities are immense. It follows a happening design with trend-setting appeal. With this concept, what is ordinary is simply transformed into extraordinary.

Lifestyle facilities include: Swimming pool, Gymnasium, Multi-purpose Hall, 24 hours security.

Ever wondered what a population catchment of 1,000,000 pupils can do for your property investment?

Today G Residences Ara Damansara offers exceptional RENTAL RETURNS(6%) driven by HIGH DEMAND through high catchment with super strategic LOCATION above Lifestyle Shopping Mall.

As the heart of nucleus of convenience and reach, G Residences Ara Damansara within short walking distance to Ara Damansara LRT station(expected completion 2015), high accessibility to major highways(NKVE, KESES, LDP, ELITE, FEDERAL Highway, GUTHRIE Highway), 5 mins Bandar Sunway, 10 mins to The Curve, 20 mins to KLCC, 30 mins to KLIA.

G Residences Ara Damansara comprises of 180 units with two types of build up(933 sq ft and 1,184 sq ft). It's housed in 14-Storey condo from 5th Floor to 14th Floor. 5,000 car parks is allocated for G Residences Ara Damansara.

Interested please contact Vulcan Lau, mobile +6 016 451 1321 for more details.

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Penang Property Talk | Singapore Property Market News | S’pore homeprices up again

VulcanInternational : Contrary to Malaysian's property market sector, Singapore's property market sector is much more volatile in buying up by investors although few measurements as been in place by Singapore government.
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SINGAPORE: Singapore home prices rose for a fifth straight quarter in the three months to June, and analysts said owners and developers of private apartments in the outer suburbs appear most at risk should the property market correct.

Singapore’s central bank on Friday introduced rules to cap a property buyer’s monthly payments at 60% of income in a bid to stabilise the housing market and to ensure those buying homes would not be caught out by a rise in interest rates.

Based on flash estimates released by the Urban Redevelopment Authority (URA) yesterday, prices of apartments in Singapore’s core central region, which includes the posh Orchard Road district popular with foreign investors, have risen by 49% since the end of the global financial crisis in 2009.

In contrast, prices of homes outside the central region, which are areas more popular with ordinary Singaporeans on lower budgets, have increased by 70%.

Wilson Liew, a property analyst at Maybank Kim Eng, said the large majority of property transactions in recent quarters had been in areas outside the city-centre, whereas activity in the core central region had been muted. “Our view is that the mass market residential segment is the most vulnerable to downside price pressure,” he said.

Shares in Singapore property developers fell yesterday on concerns the latest government measures would crimp demand for apartments, with South-East Asia’s biggest real estate company Capitaland Ltd down 1.6% by 0240 GMT and City Developments Ltd dropping 1.2%.

National Development Minister Khaw Boon Wan, in remarks reported by local media yesterday, said the tougher rules were aimed at property investors rather than potential home owners.

“It’s not really a cooling measure as such… It is a structural measure which is good to ensure a more stable property market,” he told the Straits Times, adding that current low interest rates were not sustainable.

“We do have buyers stretching themselves, buying second or third properties,” Khaw said.

The URA flash estimates showed private residential property prices rose 0.8% in the second quarter from the first three months of the year, accelerating from the preceding period’s 0.6% gain.

The rise in the index hid a divergence in the housing market, however, as prices of non-landed homes in the core central region fell, while prices outside central region rose 3% quarter-on-quarter, more than double the previous quarter’s 1.4% pace. — Reuters

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Penang Property Forum | Malaysia | DIBS | Curbs on property scheme?

Vulcaninternational: Is DIBS scheme good for purchaser? Are there any negative impact to purchaser? What about to property speculator or investor? Why only now the Bank Negara (Malaysia Central Bank) is re-looking into DIBS? What about RPGT effectiveness in serving its purpose?

In light of the above questions, do read through to find the answers.
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DIBS property 2013 | Bank Negara said to be relooking at popular, easy developer interest-bearing scheme.

PETALING JAYA: Bank Negara is studying the risks arising from the developer interest-bearing scheme (DIBS) with a view of potentially imposing curbs on it, sources said.

Although it is unclear if or when such curbs would be put in place, Hong Leong Investment Bank (HLIB) said that it may be “later this week”, adding that such a move would be a negative for future sales in the primary property market.

Other industry players think that the measures might be introduced in the second half of the year.

DIBS has become a popular easy financing package offered by property developers in joint-promotion activities with banks in recent years.

Under the scheme, buyers need not fork out much initial downpayment to buy properties, as the developer supposedly absorbs the initial interest. This is until the buyer takes possession of the property.

A high number of buyers enter this scheme with the intention of flipping the property when they gain possession of it, making a profit without having to come up with much capital in the process. Such a scenario fuels speculation.

“Typically, under the scheme, buyers only foot between 5% and 10% of the house price upon signing the sale and purchase (S&P) agreement and only begin payment when the project is completed,” a property consultant told StarBiz.(DIBS definition)

“There are caveats to this scheme, as buyers commit to a financial obligation upon the signing of the S&P and the interest cost has actually been already passed on to buyers via the higher selling prices.”

DIBS is mainly offered to the high-rise residential segment. Some property consultants have opined that the presence of DIBS in the market has caused prices to be set on an artificially higher trajectory.

Notably, the Singapore government banned DIBS in 2009.

“While the exact measures are yet to be revealed, we believe the curbs would impact this easy financing scheme,” HLIB said in a note yesterday.

According to analysts, most of the sales in the recent property bull cycle were tied to the attractive DIBS scheme at the expense of the secondary property market which has remained sluggish. And given the persistent rise in household debt, the Government is mulling over measures to limit it.

“In the recent past, Bank Negara has been compiling information on the scheme and studying its impact on the sector,” a source said.

Bank Negara had yet to respond to StarBiz’s queries as at press time.

“The difference between the non-DIBS and DIBS pricing can range from as low as 5% to as high as 30% if other incentives like early-bird discounts, stamp duty waivers and cash payments are taken into account,” said Elvin Fernandez, managing director of Khong & Jaafar group of companies.

He advocates regulators to compel developers to be transparent on the various incentives, as it may be difficult to do away with DIBS packages.

“Developers should inform buyers and bankers of the actual value of the discounts they are getting so that house buyers know the true value of the house they are buying,” he said.

UOB Kay Hian Research noted that new launches in selective high-rise projects in the suburbs of the Klang Valley were transacted at over RM1,000 per sq ft (psf) vis-a-vis RM450 psf two years ago.

“Household debt has risen to 80.5% of nominal gross domestic product as at end-December 2012, up from 60.4% as at end-2008.

“We also note that outstanding banking sector loans in the household sector has risen 3.6% year-to-date as at end-April to RM638.5bil from RM616.5bil as at December 2012. As the rise in consumer credit is partly linked to housing, curbs may be introduced to dampen speculation,” UOB Kay Hian said in a report yesterday.

On the financial impact of curbing DIBS on property companies, HLIB said that it would be “negative for future sales in the primary market but the extent of damage varies with the degree of exposure to the high-rise segment for each individual developer”.

UOB Kay Hian reckons that if DIBS or similar schemes were to be tightened, it could “significantly dampen new property launches as speculators will be filtered out”.

The company also does not rule out the possibility of a further upward revision in real properties gains tax (RPGT) to dampen speculation.

In Budget 2013, the Government had raised the RPGT for the second time since 2011, stipulating a 10% to 15% tax for the disposal of properties within two years of purchase, and 5% to 10% for the disposal of properties within three to five years. However, properties sold five years after purchase are exempted from the RPGT.

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Penang iProperty Talk | Auction Property | Auction House | MalaysiaProperty Bubble | Save your home from being auctioned

Those who take loan should be more aware of the conditions that could lead to their houses being auctioned off. Borrowers must educate themselves on foreclosure procedures.

Generic Foreclosure Procedure For Properties With Individual Titles:

1. A letter of demand is issued to the borrower informing him of his breach (of the loan agreement), with a demand to remedy that breach.

2. If the borrowers fails to satisfy the bank, it will issue a notice in Form16D of the National Land Code (a Notice of Default with respect to a charge).

3. The bank files an Originating Summons(OS) and a affidavit in support of the OS to apply for an Order of Sale. Both will be served on the borrower.

4. At the hearing of the OS, the court must be satisfied that the legal documents have been served on the borrower, before granting an Order for Sale.

5. The bank files a notice of application and an affidavit in support with the valuation report to apply for an auction date and the appointment of an auctioneer.

6. Once the court has fixed an auction date and appointed an auctioneer, the auctioneer will prepare a Proclamation of Sale(POS) and advertise the POS in a local newspaper two weeks before the auction date.

7. On the auction day, the property will be sold to the successful bidder.

8. If there are no bids for the property above the reserve price, the auction will be called off. The bank will file a new notice of application and an affidavit in support to apply for a reduced reserve price and new auction date. (Typically a reduction of 10% of the reserve price. However it's up to jurisdiction of the bank to also not reduce reserve price).

9. Process step 1 to 8 is repeated until the sale of the property at an auction.

Note: (a) Step 3-4 will take 6 months.
(b) From step 4-7 will take another 6 months.
(c) Process of public auction or sale of a property (in the case of a property with a separate title) is governed by Section 256 to 269 of the National Land Code.
(d) Where a property has no individual title (with the loan made by way of Deed of Assignment), and there is a default on the loan, then the auction would be a private one.

Picture below: Scene during public auction day in Penang.

This article been written by VULCAN INT'L Real Estate Research Institute(Penang iProperty) for VULCAN INTERNATIONAL Real Estate Investors Club.

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