Sunway City in Cheras JV property project with RM2bil GDV
Sunway Property’s unit has purchased an 8.45 acre leasehold land in Jalan Peel, Cheras where it will jointly undertake a property project with an estimated GDV of RM2.5 billion. Sunway City Sdn Bhd (SunCity) had inked a joint venture agreement with Austral Meridian Property Sdn Bhd (AMP) to develop the leasehold land, which is opposite its iconic Sunway Velocity development. The RM2bil project would comprise service apartments, retail shops and offices to be developed over 10 years. The development site also ensures easy connectivity via a short walking distance to the Cochrane MRT Station and underground Maluri MRT Station & LRT Interchange. (The Star Online)
MK Land to build 500 affordable homes in Ipoh
MK Land Holdings Bhd is planning to build 500 affordable housing units in Klebang and Meru, Ipoh this year. The single-storey affordable houses would be priced below RM300,000 per unit. However, it would also depend on how fast approval can be obtained for the projects, as the ‘holding cost’ would escalate the home prices. The company had already handed over the keys to owners of 171 MK Land affordable housing units in Klebang Putra earlier this week. (The Star Online)
Household debt may increase, warn economists
The high level of household debt in Malaysia may still increase, although latest data by Bank Negara showed slower growth in household loans last year. Economists and analysts said that sustainability for further improvement over the next few years could be tough. They agreed that apart from external headwinds and the state of the economy, home buyers scheme like the 1Malaysia People’s Housing Programme (PR1MA), higher loan limits for civil servants under Budget 2017 and higher inflation could raise household debt. Higher inflation in 2017 could be a risk to debt service ability, as higher inflation adds to the cost of borrowing. In terms of property, demand will tend to go towards the affordable segment and sub-sale landed properties where prices are expected to hold. (The Star Online)
The first Premium Outlet was opened in Johor in 2011. (Photo from Simon Property Group)
Genting Highlands to host Malaysia’s second Premium Outlet
Genting Highlands Premium Outlets, the second Premium Outlet in Malaysia, is expected to open by the second quarter this year up in Genting Highlands. It is a 50:50 joint venture between Genting Plantations Berhad and Premium Outlets, the outlet division of Simon Property Group, which opened Johor Premium Outlets in 2011. This first hilltop Premium Outlet Centre in South-East Asia will have 150 designer and brand-name stores, and is expected to draw local and international shoppers to Genting Highlands, which already boasts 20 million visitors annually. The Premium Outlet Centre was a key component of the Genting Integrated Tourism Plan. (The Star Online)
RM4.3bil not missing after all, says Felda chairman
Felda chairman Tan Sri Shahrir Abdul Samad clarified that the agency had not lost RM4.3 billion as reported, adding that he had a list of how the money was utilised, mainly for long term investment locally and abroad. From the RM6 billion received when Felda Global Ventures Holdings Bhd was listed, RM1.7 billion was used for Felda settlers to pay each family RM15,000. The remaining RM4.3 billion was used for various reasons, including one off payments to the governments of Sabah (RM300 million), Pahang RM250 million, housing loan for Felda settlers RM400 million, management expenses RM883 million plus investments in property, both here and foreign countries, to buy shares and many others.(Malay Mail Online)
Gerakan wants low-cost housing on reclaimed Gurney Drive land
Penang Gerakan has urged the state government to build low-cost housing on part of the land that has been reclaimed for a seafront public park project off Gurney Drive. Since there were no plans revealed for the land, it was suggested that low-cost and affordable housing be built on it. 131 acres off Gurne Drive will be reclaimed and surrendered to the Penang state government. 60 acres out of the 131 acres will be used for My Gurney Wharf project, the seafront public park, which will include the proposed eight-lane highway, a man-made beach, viewing deck, low-rise retail center and coastal grove. (Malay Mail Online)
Govt to consider ceiling for oil price
The government is considering setting a ceiling price to tackle the issue of escalating oil prices. Second Finance Minister Datuk Seri Johari Abdul Ghani said in certain countries, the government would leave oil prices afloat and O&G industry players would determine them. He said the government has also to be mindful whether the policy would be a problem for those living outside the city. The government will continue to monitor oil prices and would come out with a mechanism to offer assistance to the lower-income groups. (New Straits Times Online)
