Residential property market to remain flat until 2017
The residential property market is likely to remain flat this year and extend into next year, due to local and overseas economic conditions, according to industry experts. Global factors such as China’s slowdown, lower domestic growth and uncertain global conditions are affecting Malaysia’s economy, which in turn is correlated to the property market. With plenty of incoming supply of residential properties, going forward, flattish is good, as long as it doesn’t drop. Outgoing Valuation and Property Services Department (JPPH) director general Datuk Faizan Abdul Rahman said the property market downtrend in 2015 continued in the first half of 2016 (1H16) and is expected to continue in 2H16. The reduction in cost of borrowing following the OPR cut is also not likely to drastically improve the market, as lending guidelines are still strict. (The Sun Daily)
‘Don’t expect cheaper homes despite downtrend’
Property experts warn that the prolonged slowdown in the residential housing sector is unlikely to lower prices, as demand for homes remain high. Instead, they said residential property prices would continue climbing as data showed a 5.1 per cent year-on-year rise in transactions for the second quarter of this year. “It is still increasing although at a lower rate,” said Datuk Faizan Abdul Rahman, director-general of the Valuation and Property Services. The property market experienced double-digit growth for almost a decade since the mid-2000s, but weak global growth as well as increasing supply of residential and commercial space have slowed the housing market. (Malay Mail Online)
KL Sentral LRT station (Photo from Backpacking Malaysia)
Prasarana to turn LRT stations into ‘smart compact cities’ to boost ridership
Rail operator Prasarana is looking to transform its LRT stations into “smart compact cities” that offer essential services so that they are more than just transit points for the public. Such services could include “laundry services, banking services, postal services, health and medical services, eating and meeting spots”. Prasarana’s head of media affairs Azhar Ghazali said, “The long-term plan is to create smart compact cities within the public transport network. With this concept, people will not need to travel outside the network to carry out their daily routine. Turning the stations into “smart compact cities” will definitely attract people to visit the stations during off-peak hours, and add to the convenience of people who already ride the trains. (Malay Mail Online)
Tabung Haji will not sell TRX land
Tabung Haji will not sell its plot of land in the Tun Razak Exchange (TRX) despite receiving a high offer for it, says CEO Datuk Johan Abdullah.The decision was based on Tabung Haji’s expectations of high value-added potential in the long term. “From the start, the land was bought based on commercial (consideration) and we’ve made an evaluation of its value in the long term,” said Johan. The pilgrim’s fund is currently in discussion with several architecture firms on development plans for the land. Tabung Haji bought the 0.631-hectare plot of land from 1Malaysia Development Bhd for RM188.8mil last year. (The Star Online)
WCT-KKB wins RM1.29bil Pan Borneo Highway contract
A joint venture between WCT Bhd and KKB Engineering Bhd has won a RM1.29 billion contract for phase one of the Pan Borneo Highway project. KKB will hold a 70% stake in the JV company and WCT the remaining 30%. The JV company will undertake and complete the proposed development and upgrading of the Pan Borneo Highway in Sarawak, from Sungai Arip Bridge to Bintulu Airport Junction. In addition to piling, the scope of work under the contract includes demolition and site clearance, earthworks, geotechnical works, drainage works, roads and pavings. The works are expected to be completed in 51 months. (The Sun Daily)
Kerjaya Prospek bags RM338.8mil Mont Kiara construction job
Kerjaya Prospek Group Bhd has bagged a RM338.8 million contract from Nusmetro-Naza TTDI JV for main building works for a proposed mixed development in Mont Kiara. Construction works at the Arte Mont Kiara serviced apartments are scheduled to begin in September, with completion slated for October 2019. The main building works comprise simplex and duplex serviced suites and serviced residences housed within three towers that range from 58-66 storey and a nine-storey car park podium. The French-retro themed project has a GDV of RM1.2 billion and is located within Naza TTDI’s Kuala Lumpur Metropolis development, which is envisioned to be an international trade and exhibition city. (The Edge Markets)
Datuk Seri Azmin Ali said the Selangor government did not have the jurisdiction to build schools on the land as that is the purview of the ministry, but added that his administration was willing to facilitate Putrajaya. — Picture by Saw Siow Feng/The Star
Use it or lose it, Selangor warns ministry on unused land
The Selangor government will take action to recover land given to the Education Ministry if there are no plans to develop the parcels, said Mentri Besar Datuk Seri Azmin Ali. He said the move was necessary to ensure that the land is not sold for commercial purposes or left vacant. If there are no plans by the ministry to build schools on the land given by the state government, the land will be taken back to build public facilities or left as an open space. The state government has identified several parcels of land awarded to the federal government for the construction of public facilities such as hospitals and schools, but no plans have been formulated for up to 10 years. This is to prevent instances where state land given to the federal government was in turn sold to private entities and then used for commercial purposes. (Malay Mail Online)
