Cooling demand for Islamic mortgages cap household debt
A slowing economy and stricter lending rules are cooling demand for Islamic mortgages in Malaysia, helping cap Southeast Asia’s highest level of household debt. Shariah-compliant home loans increased 17% in the first nine months of 2015, rising an average 29% annually in the past five years. Measures taken to cool the property market include raising property gains tax, cut maximum tenor on lending and foreign ownership limitations in order to check speculation. Industry experts forecast Islamic mortgage growth will drop to below 10% in 2016, which is bad news for Malaysians seeking to get on the property ladder, but a healthy development in easing Malaysia’s household debt. (The Edge Markets)

No sharp rise in housing prices next year
Housing prices are not expected to rise significantly in 2016, due to numerous economic challenges including the weakening ringgit. Deputy Finance Minister Datuk Chua Tee Yong was quoted as saying that increases in housing prices have been seen but it was on a single digit percentage, and expected the trend to continue into 2016 given the cooling measures that were implemented. (New Straits Times Online)

China, Hong Kong stocks rise on improving home price data
China stocks reversed early losses and ended firm on Wednesday, with market sentiment raised by surging property shares as October home price data strengthened expectations of a bottoming economy. Both the CSI300 index and the Shanghai Composite Index rose 0.2% by midday, to 3,765.28 points and 3,611.10 points, respectively. Real estate accounts for 15% of China’s gross domestic product (GDP), and any signs of a recovery in the sector are a welcome boost for the country’s struggling economy. Hong Kong stocks also went up in morning trading, with the Hang Seng index adding 0.1%, while the Hong Kong China Enterprises Index gained 0.4%. (The Malaysian Insider)

Vivekananda Ashrama against heritage site gazette, seeks RM60m compensation
The Vivekananda Ashrama Kuala Lumpur is seeking a certiorari order (judicial review) to cancel the decision and notice issued by the Department of National Heritage to gazette the 0.4 hectare plot of land as a heritage site pursuant to the National Heritage Act 2005. It is seeking a declaration that only the Vivekananda Ashram building be listed as a heritage site, and that the surrounding site would not be gazetted so that development could be carried out. The company is also seeking RM60 million in compensation for being denied the right to develop the land. The controversy was first highlighted in the press following an announcement that a 23-storey residential tower would be constructed on the site. (The Rakyat Post)

The company caretaker of Vivekananda Ashram wants a certiorari order to invalidate the National Heritage Department’s decision and notice dated July 15, 2015 on the gazetting of the area surrounding the buiding as a heritage site under the National Heritage Act 2005. — Picture by Haresh Deol/The Malay Mail

Penang exco accuses Putrajaya of delaying 10 housing projects
Penang state exco Jagdeep Singh Deo said that Putrajaya’s delay in approving the advertising permit and developers licence (APDL) for projects has affected 10 affordable housing schemes in Penang, which inclde low- and low-medium cost units. He also claimed that Penang was repeatedly sidelines by the government when it comes to PR1MA housing, maintenance allocation under the 1Malaysia Maintenance Fund (TP1M), strict loan requirement along with the delay in APDL approvals. (The Malay Mail Online)

Mah Sing to launch RM1.2bil worth of projects in 2016
Mah Sing Group Bhd is set to launch over RM1.2 billion worth of projects in Penang next year. Its upcoming launches will include the RM735mil Ferringhi Residence 2 (1Q2016), the RM350mil Icon Residence at Lebuh Pykett, and an unnamed RM150mil project in Southbay City, Batu Maung. The Penang properties are expected to contribute between 10% to 12% to the group’s total sales for 2015. The group had launched RM2 billion worth of housing projects nationwide in 2015, with 84% of the units costing below RM1 million. (The Star Online)

Paramount 3Q earnings 6% higher
Paramount Corp Bhd reported a 6% increase in net profit to RM15.53mil for the third quarter this year against RM14.64mil a year ago. Its revenue also jumped 23% compared to the same quarter last year due to higher contribution from its property and education divisions. (The Star Online)

IKEA Cheras launched, mulls opening Johor branch in two years
Swedish furniture giant IKEA plans to open its third Malaysian store in Johor Baru in the next two years. However, the plan is still at a preliminary stage, said IKEA Malaysia, Singapore and Thailand managing director Christian Rojkjaer. The company has land in Johor and Penang, and is open to the idea of setting up a manufacturing plant in Malaysia as the nation has become more competitive. Having a factory here would lower transportation costs and be more sustainable if there was increased volume. The new 42,000 sqm Cheras store on Jalan Cochrane was opened yesterday. (The Star Online)