Puchong (North) BUDGET 2019 EDITION
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BUDGET 2019 EDITION by Henry Butcher Malaysia BUDGET 2019 AND ITS IMPACT ON THE PROPERTY INDUSTRY IN MALAYSIA PLUS When The Going Gets Tough, Selangor: Dip in New Value Map Series: KDN PP18893/11/2015(034373) Seek Wisdom Launches in H1 2018 Puchong (North) BUDGET 2019 EDITION by Henry Butcher Malaysia BUDGET 2019 AND ITS IMPACT ON THE PROPERTY INDUSTRY IN MALAYSIA PLUS The Pursuit Of Opulence With Selangor New Launches 8alue Map Series: KDN PP18893/11/2015(034373) Ritz Carlton Residences, KL H1 2017 vs 2018 Puchong (North) BUDGET 2019 EDITION Editor’s Note by Henry Butcher Malaysia Publisher Henry Butcher Malaysia Sdn Bhd 25, Jalan Yap Ah Shak, O Jalan Dang Wangi, 50300 Kuala Lumpur. T• (03) 2694 2212 E• [email protected] W• www.henrybutcher.com.my OUR SERVICES Valuation I recently attended a seminar conducted by take-up rates for those developments Tel :603-26942212 Fax: 603-26943484 Lembaga Perumahan dan Hartanah which are not conducive for the lower Email: [email protected] Selangor (Housing and Property Board, income households, the issue of mainte- Project Marketing Selangor) on the launch of their latest nance charge collection, the issue of Tel: 603-26942212 Fax: 603-26925771 policy guidelines on “aordable housing “ amenities and facilities for the open Email: [email protected] in Selangor titled “Dasar Perumahan dan market household and the “aordable” Real Estate Agency Hartanah Mampu Milik Selangor 2.0”. household. Tel: 603-26942212 Fax: 603-26941261 Aer 4 years in existence since January Email: [email protected] 2014, this is an update of the previous Malaysia is probably one of the few Market Research & Development Consultancy housing policy of the State known as countries in the world that have shied the Tel: 603-42702072 Fax: 603-42702082 “Rumah Selangorku”. responsibility of social housing to the Email: [email protected] private sector. e policies on “aordable is updated policy have some changes of housing” for each state diers but these Retail Consultancy Tel: 603-91305550 Fax: 603-91304003 which the rst was the reduction of regulatory housing have pushed the open Email: [email protected] provision of “aordable housing” in market housing sector to unsustainable Selangor from 50% to 40% for projects levels. It seems now that not only the B40 Facilities & Asset Management Tel: 603-62053330 Fax: 603-62062543 with land areas of more than 25 acres. e and M40 cannot aord to buy houses, but Email: [email protected] next change was the reduction in built-up those outside these bands are also facing of the units priced at RM200,000 from very tough challenges to aord the open Plant & Machinery Consultancy Tel: 603-26942212 Fax: 603-26943484 1,000 sq per unit to 900 sq . e next market housing. Most developers would Email: [email protected] was an additional type of “aordable nd diculty to reduce house prices house” that is type “E” introduced into because there are many factors that aect Auctions & Tender Sales selected areas which are MBPJ (Majlis the selling prices (high selling prices). Tel: 603-26942212 Fax: 603-26941292 Email: [email protected] Bandaraya Petaling Jaya), MPAJ (Majlis Over the past decade, it can be seen that Perbandaran Ampang Jaya) and MPSJ developers’ prots have eroded against Art Consultancy (Majlis Perbandaran Subang Jaya). is high land cost, high development expens- Tel: 603-26913089 Fax: 603-26021523 Email: [email protected] type "E" home is priced at RM250,000 with es, competition, mandatory housing, built-up area of 900 sq . is concession depleting gross developable land etc, and is to provide aordable housing for the two major contributors of high develop- OUR OFFICES most urban location of the State at a price ment cost from the authorities side are the | SELANGOR | Subang Jaya • Ampang • Mont’ Kiara | which is more inline with an urban development charges (such as utility NEGERI SEMBILAN | Seremban | KEDAH| Alor Setar • Kulim | PENANG| Island • Butterworth • Seberang location. charge rates) and mandatory “aordable Perai | JOHOR | Johor Bahru • Kluang • Muar • Pontian | h o u s e s”. PAHANG | Kuantan | MALACCA | Melaka | TERENGGANU | Kuala Terengganu | PERAK | Ipoh e State also has guidelines to provide | KELANTAN | Kota Bahru | SABAH | Kota Kinabalu aordable service apartments, aordable Developers now, in Budget 2019 are • Sandakan • Tawau | SARAWAK | Kuching • Miri SOHO/SOFO/SOVO in open market expected to reduce selling prices by 10% oriented developments with no due and given the above constraints many diligence on market demand for these developers will be hard pressed to give mandatory aordable units, given that any these discounts on top of other rebates that PAST EDITIONS development of serviced apartments and they have already given. SOHO/SOFO/SOVO have to provide 2018 aordable units within their development. Aordable housing is a problem not only e question is raised with regards to in Malaysia but also many other developed demand from the market place (the M40 countries in the world. By forcing develop- group) for these aordable units. When a ers to be the key drivers of these social developer builds these types of develop- housing should not be the main way of ments they would have studied the open producing the numbers the government is market with regards to demand, target targeting for. Even the numbers of aord- Feb 2018 Mar 2018 Apr 2018 May 2018 markets and selling prices etc, and then able housing that have been announced is decide to do the project if their analysis is questionable as to how are these numbers positive. By forcing developers to provide generated and if the demand is so high why “aordable” units within their develop- are there so many unsold units of aord- ment, the State can expect to have able housing still available? problems amongst which are with sales or Fahariah Abdul Wahab Jun 2018 Jul 2018 Aug 2018 Sept 2018 Director Printed by: Percetakan CL Wong Sdn Bhd AS-84, Jalan Hang Tuah 4, Taman Salak Selatan, 57100 Cheras, Kuala Lumpur. 1/ HERALD BUDGET 2019 EDITION Birth of the “Introduction To Property The 3-day in-house course itinerary is 3-day in-house course itinerary is packed Development” Course packed with property development with property development wisdom, wisdom, among others topics such as among others topics such as Property Due to the changing market trend and to Property Development Activity Flow, Development Activity Flow, Introduction bridge the gap for would-be developers Introduction to Land Laws & Land to Land Laws & Land Dealings, Evalua to be part of the game, a specially curat- Dealings, Evaluation of Property Devel- ed course on “Introduction to Property opment (Market & Feasibility Studies) The Course is designed for the junior and Development 101” was recently put and the likes were imparted with positive mid management sta of diering together and conducted by our Henry feedback from the participants. At the backgrounds, disciplines and depart- Butcher Ampang oce. The key objec- end of the course, participants would ments. As many in-house talents are new tives of the course was to share the also gather in groups for a practical or have limited knowledge about the property development process to session called the Property Development property industry, this Course can help enhance the understanding on how each Scenario Exercise to test and apply what better understand the terminology of the and every process relates to one and they have just learnt. They would bounce industry, authority requirements and another, not forgetting the where’s and o ideas and decisions from assessing processes, the key inputs in the value how’s of every process fit into the entire the feasibility of a sample land to crafting chain, decision making tools of the value chain. go-to-market strategies and the possible industry, major considerations in proper- action plans to unlock its value. ty development and a host of other Designed and presented by specialists essential development factors. with extensive hands-on experience in the dierent facets of the industry made Niche and Dedicated As one of the participants put it, the up of a lawyer, planner, valuer, property Course has presented everyone with “A market consultant, financial advisor and As can be observed, the human capital clear walkthrough of the model for marketing and branding consultant, the development market is swamped with Financial Assessment.” And because BUDGETinaugural course was presented to a conferences2019 on property market trends every business runs and thrives with a select client not too long ago. The and specific development topics such as sound financial outcome, it makes a lot ANDresponse, priceless. ITS IMPACTurban ON planning THE and design, PROPERTY infrastruc- of sense then toINDUSTRY invest just three days for ture and building engineering solutions, a longer term reward in one’s property “Good, lots of details and sharing of property market outlook etc. These development journey. experience for Methods of Valuation,” large-scale conferences and classes are INsaid MALAYSIAone participant while another good for keeping abreast with the latest praised for the “Informative with good trends and technologies whilst providing presentation skills and knowledgeable great opportunities for industry to 2ndfor Novemberthe Planning 2018 Process.” marked the first time comparednetwork but to thea more 5.9% growthstrategic achieved and The in enhanced accessibility as well as investors in 60 years that the country’s budget was 2017. This is against the backdrop of a or homebuyers who have invested in a presented by a Finance Minister who is slower global economic growth of 3.7% in property located near the proposed not from the Barisan Nasional govern- both 2018 and 2019. stations along these lines in the hopes of ment and the first time in 20 years that enjoying strong capital appreciation when the Finance Minister who presented the In view of the less favourable financial these rail lines become operational.