High-end high-rise residential prices may fall 15% this year
Prices of high-end strata properties could drop by 10% to 15% this year as the market cools down and prices become more realistic. According to CBRE-WTW managing director Foo Gee Jen, many buyers bought units under DIBS about two to three years ago, when prices were marked up a lot. These units are in the market now but the value is much lower than the selling price. For subsale properties, the gap between asking price and selling price is narrowing. He said the price correction this year would be more apparent in Johor, Kuala Lumpur and Kota Kinabalu. As for landed residential properties, Foo does not expect prices to drop more than 10%. (The Sun Daily)

Shift towards affordable housing as market stays flat
Local property developers are likely to venture more into affordable housing that is high in demand despite cooling elsewhere in the sector, according to real estate firm CBRE|WTW. Property remains a popular investment destination in Malaysia than most other sectors. If the government pushes up the supply of PR1MA homes and others, the residential market is likely to see a slight improvement, but overall commercial and other segments will be very flat. Developers would have no choice but to discount if demand was not present for their projects or shift attention to segments that are under supplied, such as affordable housing. (Malay Mail Online)

Artist's impression of M101 Skywheel

Artist’s impression of M101 Skywheel

China Huashi to fund M101 Skywheel project
Integrated property developer M101 Group will receive financial support from China Huashi Enterprise Co Ltd to build its iconic M101 Skywheel project. China Huashi, which has been appointed as the main contractor for the GDV RM1.8 billion M101 Skywheel project, will finance RM50 million in construction costs, which is equivalent to the cost of the project’s substructure. The M101 Skywheel is located in Kampung Baru and expected to be completed by 2020. The 52-storey mixed development skyscraper would house a Ferris-wheel on the 52nd floor, 220m above ground level. M101 Dang Wangi would be ready in September while M101 Bukit Bintang would be ready in September next year. (New Straits Times)

Public amenities mandatory for serviced apartments in Negeri Sembilan
The Negeri Sembilan government has made it mandatory for developers of serviced apartments to provide public amenities like halls and playgrounds with immediate effect. Such apartments must also be built within town parameters and on lots of not less than 0.8094 hectares. The move was said to be necessary, as some developers were taking the easy way out by categorising serviced apartments as businesses and not housing. (Astro Awani)

Owners, tenants of Ampang Park lose appeal
39 strata owners and tenants of Ampang Park Shopping Centre lost their appeal in regard to the land acquisition for the MRT Ampang Park station. The Court of Appeal ruled that ‘although the MRT line would run underground substantially, if not total, work would still have to commence and proceed above ground. (Astro Awani)

WCT to raise up to RM212mil through share placement
WCT Holdings Bhd has proposed placing new shares to raise up to RM212.5mil, which will be used to reduce its bank borrowings and for working capital. The construction and property company is proposing to place out up to 125 million new shares, about 10% of its existing issued and paid-up share capital. 40% of the proceeds raised would be used to partly repay bank borrowings, while 60% would be used to fund some of the group’s ongoing projects, including MRT2, Pan Borneo Highway Phase 1, Paradigm Mall in Johor, and projects in Klang and Kuala Lumpur. (The Star Online)

Penang govt not informed of port expansion plan
The Penang government has not been informed of any expansion plans the Penang Port Commission (PPC) has for the Swettenham Pier Cruise Terminal, said Chief Minister Lim Guan Eng. He said the state will nonetheless support any expansion plans to upgrade the Pier as long as the state was a partner in such a project, to ensure the state has a stake in the project. It was earlier reported that the Penang Port Commission (PPC) has a RM200 million plan to expand the Swettenham Pier Cruise Terminal (SPCT) pending the resolution of a land dispute with the Penang state government. PPC said there was a need to expand the terminal to meet with the increasing passenger arrivals. (The Sun Daily)

Swettenham Pier Cruise Terminal, Penang (Photo from Penang Port)

Swettenham Pier Cruise Terminal, Penang (Photo from Penang Port)