Mah Sing optimistic on property market
Mah Sing Group Bhd managing director, Tan Sri Leong Hoy Kum, said that the worst may be over for the Malaysian property market. During the 12th Invest Malaysia 2016 (IMKL), he said all indicators appeared to have bottomed out, and no further cooling measures are expected. Contraction of residential property transaction have also bottomed out, with slower contraction in Q415 compared to Q3 and Q2 2015. House prices are also unlikely to contract, and is likely to grow at low-mid single digit levels. (New Straits Times Online)
41,880 applicants for PPA1M residences
A total of 41,880 applications have been received for 19,225 units of the 1Malaysia Civil Servants Homes (PPA1M) on offer, indicating high demand for the residential units. The idea was first raised in 2013 for civil servants to own affordable homes in Putrajaya. Putrajay Corporation stated that 7,872 PPA1M Putrajaya Phase One buyers would be signing their SPAs this month, and the development is expected to be completed by 2017. The homes have government-controlled prices between RM150,000 and RM300,00 with built-up areas of 1,000 sq ft to 1,500 sq ft. The next draw for PPA1M will be in June 2016, involving applicants who have not been successful previously. (New Straits Times Online)
Perak Sultan reprimands greedy housing developers
The Sultan of Perak, Sultan Nazrin Shah, has criticised private housing developers who are building luxury homes to rake in huge profits, instead of developing more affordable housing for the people. The sultan said developers should be equally responsible in providing housing to the common folk, especially the low-income group, and not just leave the task to the government or its agencies. He noted that the price of houses in Malaysia had risen by more than 100 per cent in the last 14 years, compared to the average annual salary increase of 2.6%. He also remarked that 72.8% of households in 2014 within the state earned less than RM5,000 per month. It was announced that the Perak Housing and Real Property Board will be set up to oversee real property development and public housing projects, in addition to building more affordable homes. (The Malay Mail Online)
Negeri Sembilan sets 50% affordable housing quota
The Negeri Sembilan state government, through the Affordable Housing Policy, has been tasked to ensure that 50% of houses built in every housing development project are affordable homes. The policy will ensure that youths have the opportunity to apply for affordable houses based on their income. Apart from increasing property prices, construction labour cost and building materials have increased, and demand is greater than supply. Menteri Besar Datuk Seri Mohamad Hasan said the MyDeposit scheme introduced by the government was a good move to help those who could not afford to buy houses, adding that Malaysia was the only country to introduce such a scheme. (The Rakyat Post)
Eco World confident of hitting RM4bil sales target
Eco World Development Group Bhd is confident of meeting the RM4 billion sales target for its current financial year ending Oct 31, 2016. The group recorded RM3 billion in sales in FY15, and has maintained its sales target of RM4 billion this year despite external headwinds and based on strong year-to-date groups sales of RM607.8mil as at February. It also received positive reception during the launch of its strata offices at Bukit Bintang City Centre (BBCC). (The Star Online)
Guocoland 3Q net profit up 15%
Property developer Guocoland (Malaysia) Bhd saw its net profit for 3QFY16 grow 15% to RM13.35 million from a year ago, mainly due to the disposal of its Changkat Kia Peng land and a major increase in contribution from its Damansara City residential project. This was partly offset by lower contributions from the group’s projects in Commerce One, Amandarii Kajang and PJ City. Revenue for 3QFY16 almost tripled to RM143.47 million. (The Edge Markets)
Malaysia sees high investment growth from MSC companies
Despite the challenging global economy, Malaysia Digital Economy Corporation (MDEC) recorded significant growth in investments and export sales from MSC Malaysia companies in 2015, registering 56% in Approved Investments and Foreign Direct Investments. Total investments inflow from MSC Malaysia companies reached RM19.8 billion last year, making it the highest increase in new investments since MSC was established in 1996. Export sales from MSC Malaysia companies contributed RM16.2 billion, up 18% from the previous year. The Global Business Services (GBS) cluster contributed the most, at 69%, to overall export sales. (Astro Awani)
