Investors worried over abandoned Klang project
About 300 investors are left in the lurch, after construction work on The Boss, a multi-million ringgit high-rise residential hotel suite with commercial space in Klang, was abandoned halfway. The project, which started construction in 2012, was left abandoned middle of last year. What was to be a landmark building for the town has become an eyesore to residents, and the lack of information and uncertainty over the project’s status has frustrated buyers. They have been called for a meeting with the creditors and liquidator KPMG to discuss the next course of action to revive the project. (The Star Online)
MKH’s affordable homes strategy sets record high earnings
MKH Bhd reached a record high of RM843mil in unbilled property sales as at March 2015, 1.6 times its 2015 property revenue. Reports have concluded that the company’s strong earnings was due to robust demand for affordable homes in the local property market, which remain popular with buy-to-stay homebuyers. MKH’s affordable homes strategy has helped it to generate steady earnings over the past two years, particularly its flagship Kajang 2 development. (The Star Online)
Khind to diversify into property sector
Khind Holdings Bhd is set to diversify its business into the property sector via property development, construction and investment following the acquisition of land in Setia Alam. Initial plans to build a commercial office building – for own use and rental – were changed to a mixed used development, which will include offices, retail component and service apartments after considering the market demand and to maximise land utilisation. The development is estimated to be worth RM150 million and contribute over 25% to the group’s net profit. (The Sun Daily)
Ringgit erodes along with commodity prices
The ringgit once again dropped, as a decline in commodity prices erodes Malaysia’s export earnings. The already-weakened currency fell the most in more than two weeks since an all-time low on July 6, amid a drop in key exports of Brent and palm oil. Declining prices of crude oil and a strengthening dollar also contributed to the fall. (The Malay Mail Online)
Australia’s ANZ raises interest rates on investor home loans
Just days after tough new capital rules were announced, the Australia and New Zealand Banking Group (ANZ) will raise interest rates on investment home loans. On Monday, the Australian Prudential Regulatory Authority (APRA) announced that banks should have cash reserves equal to 25% of mortgage books by July 2016, up from the current 16%. APRA has warned banks to keep annual growth in investment home loans below 10% and tighten standards for interest-only loans. (The Star Online)
Indonesia to relax property rules for foreigners
Indonesia has levied taxes on luxury goods and lowered down-payments for homes and vehicles to revive growth. Next week, it will draft new rules that allow foreigners to own luxury apartments to bolster its economic growth. The new ruling will see conditions such as size restrictions on real estate purchases by non-Indonesians, effective in two to three months. Currently foreigners are not allowed to own property in Indonesia. (Bloomberg)
Foreigners can now own land in Maldives
Lawmakers have voted to allow foreign ownership of land in the Maldives for the first time, triggering concerns over possible landgrab especially by Chinese investors. The new law would allow foreigners who invest over $1 billion to own land in perpetuity, provided 70% is reclaimed land. Dozens of luxury resorts are already run by foreign companies on 99-year lease islands given by the government. (New Straits Times Online)
Seen here is Huvafen Fushi, one of the private islands in the Maldives. The Maldives is a popular holiday and honeymoon destination for visitors all over the world. (Photo from Wikipedia)
