MONTH: SEPT 2011 ISSUES: 09/2011 Property News PA International Property Consultants is a registered real estate firm committed to providing a comprehensive range of property solutions to meet the needs of investors, occupiers and developers. The Research Division provides core real estate information to clients and internal departments in order to ensure accurate real estate decision-making. Our research team has completed market studies and research work for various ongoing development schemes within Klang Valley, providing comprehensive economic analysis, property PA INTERNATIONAL market information, forecasts and consulting advice based PROPERTY CONSULTANTS (KL) SDN on reliable sources. Phone: 03-7958 5933 Fax: 03BHD-7957 5933 We constantly strive to present the most up-to-date Website: http://www.pa.com.my market knowledge in order to ensure clients are well- Email: [email protected] armed with sufficient data to make the right property decisions. Issues 6: 1-31September 2011 GENERAL ECONOMIC & PROPERTY MARKET 1. Redha optimistic Over 2H 2011 property outlook (Bernama, 26-Sept-2011) . The Real Estate and Housing Developers’ Association Malaysia (REDHA), is optimistic over the property market for 2H 2011, given the positive growth outlook of Malaysia’s economy. According to the REDHA president Datuk Seri Michael Yam, the property sector has a direct correlation to the economic condition as demand for properties increase during a booming economy. The association anticipated the new launch of properties to scale upward in 2H 2011, property prices are also expected to move up during that time. Based on the Property Industry Survey for 1H 2011, conducted by REDHA, property developers were anticipating a 20% increase in the price of new launches in 2H 2011. MARKET ECONOMICGENERAL & PROPERTY . The projection took into consideration the increase in the cost of production, due to the increasing cost of labour and building. Despite the positive outlook for the 2H 2011, Yam add that demand for properties is expected to feel the impact on implementation of the 70% loan-to-loan value (LTV) mortgage cap on third properties. This is supported with evident from the survey where 50% of respondents (147 property developers) reported experiencing the impact on sales from the LTV mortgage cap implementation during the 1H of 2011. 2. Inflation may have peaked, says Zeti (Business Times, 27-Sept-2011) . Malaysia’s inflation has probably peaked and price pressures may ease as the global economy deteriorates, central bank governor Tan Sri Dr Zeti Akhtar Aziz said, joining neighbours in signaling less pressure to tighten policy. She add that, interest rates are still at a level that is supportive of growth, which may be about the same or slightly better in the 2H of 2011 compared to 1Q 2011. Europe’s debt crisis and a weakening US recovery are threatening growth in Asia as demand for the region’s export eases. Central banks from South Korea to Philippines have refrained from rate increases in recent months, with Bank Negara Malaysia keeping the benchmark overnight policy rate at 3% this month after four increases from early March 2010 to May 2011. Tan Sri Dr Zeti Akhtar Aziz also mentioned that, Malaysia’s inflation slowed in August for the second straight month to 3.3%. Consumer prices will probably rise 3% to 3.5% in 2011. 3. Selangor records RM5.2 billion investments in first six months of 2011 (Bernama, 9-Sept-2011) . Selangor recorded investment of RM5.2 billion the first 6 months of 2011. In a statement, the Selangor Menteri Besar’s office said the state received foreign investments of RM3.1 billion with local investments at RM2.1 billion. A total of 135 projects were approved from January to June this year and this will be opened up 9,847 job opportunities. According to the breakdown by sector, the electronics manufacturing industry posted the highest investments at RM1.3 billion. Japan was the biggest investor in Selangor with 13 projects involving an investment value of RM1.136 billion, followed by South Korea at RM652 million with 3 projects and Singapore with RM510 million with 8 projects. Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 1 Issues 6: 1-31September 2011 4. Malaysia likely to maintain key rate (Business Tines, 7-Sept-2011) . Bank Negara Malaysia (BNM) is expected to keep the main interest rate steady at 3.0% amid rising concern the global economy could slip into recession again. The monetary policy will have to be pro-growth until the global economic outlook brightens up again. As such, expectations are that BNM will leave Overnight Policy Rate (OPR), the benchmark key interest rate, unchanged as well as the statutory reserve requirement (SRR) at 4%. BNM, now has even more justification to maintain its wait-and-see stance given the negative impact on global sentiment from recent developments in the United State and Europe. LAND TRANSACTIONS 5. Development land sale in Tempat Sungei Kandis, Selangor (Bursa Malaysia, 29-September-2011) Location Tempat Sungei Kandis, Klang, Selangor Vendor Aus-Land Properties Sdn Bhd Purchaser Pembinaan Terasia Sdn Bhd (wholly-owned subsidiary of Tiger Synergy Bhd) LAND TRANSACTIONS LAND Land tenure Freehold Title details GM 2502, Lot 185 Mukim/ District Mukim of Klang, Tempat Sungei Kandis, District of Klang, State of Selangor Description N/A Land area 196,021.57 sq ft Price RM5,684,580 @ RM29.00 per sq ft Date of SPA 28 September 2011 6. Development land sale in Tempat Teluk Kumbar, Pulau Pinang (Bursa Malaysia, 7-September-2011) Location Tempat Teluk Kumbar, Pulau Pinang Vendor Puan Che Siah Bt Ibrahim Purchaser PLB Land Sdn Bhd (wholly-owned subsidiary of PLB Engineering Bhd) Land tenure Freehold Title details Lot 908 GM 579 and Lot 1178 GM 447 Mukim/ District Mukim 9, Tempat Teluk Kumbar, Daerah Barat Daya, State of Pulau Pinang Description N/A Land area 254,006.75 sq ft Price RM4,200,000 @ RM16.53 per sq ft Date of SPA 6 September 2011 Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 2 Issues 6: 1-31September 2011 7. Development land sale in Tempat Batu Gajah, Selangor (Bursa Malaysia, 6-September-2011) Location Tempat Batu Gajah, Klang, Selangor. Vendor Rima Waja Land Services Purchaser Pembina Terasia Sdn Bhd (subsidiary of Tiger Synergy Bhd) Land tenure Freehold Title details GM 1927, Lot 1888 Mukim/ District Mukim of Klang, Tempat Batu Gajah, District of Klang, State of Selangor Description The land is currently a vacant land Land area 196, 020 sq ft Price RM5,880,600 @RM30.00 per sq ft Date of SPA 6 September 2011 8. Development land sale in Semenyih, Selangor (Bursa Malaysia, 5-September-2011) Location 1917, Off KM 29, Jalan Semenyih, 43500 Selangor. Vendor Taiyo Resort (KL) Berhad LAND Purchaser Tropicana City Service Suites Sdn Bhd (a wholly-owned subsidiary of Dijaya Corporation Bhd) Land tenure Freehold TRANSACTIONS Title details H.S.(D) 68253, PT No. 14533, H.S.(D) 68256, PT No. 14536, Geran No. 63194, Lot 12683 (formerly HS(D) 68257, PT 14537), Geran No. 53170, Lot 1258 and Geran No. 27675, Lot 32 Mukim/ District Mukim of Semenyih, District of Ulu Langat, State of Selangor Description The land is currently known as Kajang Hill Golf Club. Land area 8,648,383 sq ft Price RM228,000,000 @RM26.36 per sq ft Date of SPA 5 September 2011 Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 3 Issues 6: 1-31September 2011 RESIDENTIAL PROPERTY IN KLANG VALLEY 9. Freehold boutique bungalows amid green landscapes (The Star, 23-Sept-2011) PROJECT NAME Templer Hills Location Selayang, Selangor Developer Rentak Arena Development Sdn Bhd Type 2½ to 4-storey bungalows Tenure Freehold No. of units 45 Built-up area 3,500 - 6,600 sq ft (vary in 5 designs) Selling price RM1.5 - RM3.0 million Completion Date June 2012 Features . Gated and guarded community with 24- hours security system. Some units will have private pools. The bungalows are nestled against a green landscape with its surroundings comprising primary and secondary Templer Hills jungle. Incentives . Free 5 years maintenance fee. RESIDENTIAL . Free iPads to buyers upon successful loan approval and signing of Sales and Purchase agreement. Special home buyers’ deal with savings on interior design package. Notes . Templer Hills is located about 20 minutes away from Kuala Lumpur city centre, and is accessible via major roads and highways such as Jalan Kuching / KL-Ipoh Federal Road, MMR2 as well as DUKE Highway and LATAR Expressway. It is located close to Selayang Hospital, Selayang Mall, Tesco Rawang, Pasar Borong Selayang, Templer’s Park, Commonwealth Forest Reserve and Park and Templer Perangsang Golf and Resort. The bungalows are 50% to 80% completed. 10. Seringin Residences sees brisk sales (The Edge Property, 23-Sept-2011) PROJECT NAME Seringin Residences Location Off Jalan Klang Lama, Happy Garden. Developer See Hoy Chan Sdn Bhd GDV RM500 million Type Condominiums and garden villas Development land area 6.4 acres Tenure Freehold Level / Block 25-storey / 2 blocks No. of units Condominium : 542 Garden villas : 10 Built-up area Condominium : 1,707 - 2,638 sq ft Garden villas : 2,928 - 4,024 sq ft Selling price RM530,000 - RM4,300,000 Maintenance fees RM0.26 per sq ft including sinking fund Selling performance 75% An Artist’s impression of Seringin Residences Facilities 3-tier security, swimming pool, gymnasium and racquet sport courts. Features . The project also offers a 2-storey Sustainable Application of Green Energy (SAGE) building Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 4 Issues 6: 1-31September 2011 featuring green building technologies, eco-friendly fittings and an organic roof garden.