Analysts: Budget 2016 ‘neutral’ for property sector
Analysts have described the recently tabled Budget 2016 as “neutral” for the property sector. The government is focusing more on affordable housing in this budget, but lower real property gains tax (RPGT), lower stamp duty and lower threshold for foreign ownership were not included. This may not be good news for developers but home buyers will have more choices to buy houses nearer to the city at a cheaper price. Property developer SP Setia said in a statement that it had hoped the budget would provide more initiatives to address the subdued property market, but lauded the focus on green technology. (The Edge Markets)
REITs a solid investment choice
Industry veteran Datuk George Stewart LaBrooy, who will be retiring at the end of the year from Axis REIT Managers Bhd, says REITs are steady investments when markets fall during volatile times. Over the last six months, REITs share prices have remained steady even when markets have weakened. Many people are looking to REITs as a mechanism to invest. The Malaysian market has low foreign shareholding, with large local institutional base for investors who don’t sell down like foreign ones, preferring to hang on and earn dividends every 3-6 months, which is good for insurance companies and pension funds. Asset quality is good as well, as most of the best real estate such as the KLCC Twin Towers, Midvalley and Sunway are listed REITs. (The Star Online)
Malaysian homes hit RM300,000 average mark in 1H15
According to the Economic Report 2015/16 released last Friday, Malaysia’s home values have more than doubled since 2000. The median home value in Malaysia has hit the RM300,000 mark in the first half of 2015 (1H15), with Selangor, Penang, Sabah and Sarawak exceeding the average mark since 2004. Median house prices in 2014 exceeded the median annual household income by 4.4 times, compared to the global norm of three times. Residential property transactions and value of transactions declined in 1H15, in comparison to an increase in both from the same half in 2014. Residential property transactions make up 64% of total property transactions. (The Edge Markets)
Singapore investors holding back on Malaysian property
Singapore property consultants say that Singaporeans are likely to hold off property purchases in Malaysia, particularly in Iskandar Malaysia, Johor. Although the ringgit has weakened against the Singapore dollar since August, Singaporean investors will not be flocking over to buy, as those who have purchased need time to digest and the risk-averse may be put off by the volatile currency. Buying may pick up once the ringgit stabilises. It has been crucial for Iskandar Malaysia to succeed with Singaporean investors, therefore the subdued market has affected Johor the most. Sales volume and prices have declined the most in Johor compared to Penang and central Kuala Lumpur. The trend is expected to continue given the oversupply in Iskandar, particularly Nusajaya. (The Star Online)
Smart transport system (Image from CNN)
Malaysia contemplating South Korea’s intelligent transport system (ITS)
Malaysia is looking to learn and possibly implement South Korea’s metropolitan intelligent transport system (ITS), said Deputy Transport Minister Datuk Aziz Kaprawi. South Korea has one of the most impressive ITS in the world, and Malaysia is keen to learn about the speedy, convenient and safe transport system. High-ranking officials from South Korea’s Ministry of Land, Infrastructure and Transport (MLIT) have endorsed its transport and traffic system for Malaysian highways and urban roads. South Korea’s ITS uses technologies such as electronic control and communications integration along with real-time traffic information to modify highway speed limits for better traffic flow, while in-vehicole GPS systems receive constant traffic updates and alternative routes. South Korea is also willing to share knowledge on high speed rail (HSR) construction and rail technology. (Paul Tan’s Automotive News)
University of Reading opens first overseas campus in Nusajaya
World-renowned University of Reading from the UK has opened its first overseas campus, measuring 6ha, in EduCity, Nusajaya in Iskandar, Johor. The University of Reading Malaysia (UoRM) will also house the internationally renowned, triple-accredited Henly Business School and its prestigious Henley MBA, and students can split time between the UK and Iskandar campuses. The cost of education here will be about half of that in the UK, which is one of the major selling points in drawing students from Malaysia and the region to study at UoRM. It currently offers the Foundation in Business, Foundation in Science, BSc Finance & Business Management, BSc Real Estate, BSc Quantity Surveying and BSc Psychology, with more courses to be made available next year. (The Rakyat Post)
University of Reading Malaysia campus in Nusajaya, Johor (Photo from The Rakyat Post)
Chong Wei wins French Open title
Malaysian badminton ace Datuk Lee Chong Wei has bagged his first Super Series title this season in the French Open held in Paris yesterday. He defeated Chou Tien Chen of Taiwan in straight sets of 21-13 and 21-18 in the final. This is his third French Open title after 2007 and 2011. (The Malaysian Insider)
Rainy season to bring relief from haze
The north-east monsoon season, or wet Landas season, that begun on Saturday is expected to bring relief from the haze plaguing the country for the coming weeks, if prevailing weather conditions stabilise, said the Malaysian Meteorological Department. Winds blowing from the east is expected to carry the haze further away from Malaysia, unless a typhoon forms over the Philippines. The level of humidity is expected to rise significantly, increasing the potential for rainfall which will help alleviate the haze problem. (The Malay Mail Online)
