Developers still upbeat about market
Six developers will launch more than RM6.29bil worth of properties in the country this year amid a backdrop of property glut and rising bank interest rates. Ideal Property Sdn Bhd will launch properties with GDV of RM550mil, IJM Land Bhd with RM987mil, Mah Sing Group Bhd with RM2.2bil, Aspen Group with RM959mil and E&O Bhd with RM1.6bil. Eco World Development Group Bhd has yet to finalise the GDV for its new projects in the country, while SP Setia Bhd is still deciding on a new launch. They are optimistic enough to offer fresh housing schemes this year citing the growth in GDP, strengthening ringgit, rising oil prices, and the growing number of young people who have yet to own a property. (The Star Online)
MIEA requests authorities to reduce property financing requirements
MIEA has requested the authorities to relax and alleviate some of the financing requirements guidelines imposed on buyers as many find difficulty in securing financing from banks. Its president Eric Lim said many buyers, especially the first buyers, complained to their members about the difficulty in securing housing loans from banks. “Despite Malaysia’s strong economic growth of 5.9 percent last year and low unemployment rate of 3.4 percent, the positive indicators has not been translated into the property sector,” he said. Homebuyers were advised not to use services of unregistered real estate agents as it is against the law. (NST Online)
Malaysia loans growth expected to improve in 2018
Loans growth in 2018 is expected to improve compared to the previous year, following the slight pickup in loans growth recorded in January. According to Bank Negara Malaysia, the banking system’s total loans for January 2018 amounted to RM1.59 trillion, up 4.2% year on year. MIDF Research said all major loans segment were steady especially for the purchase of residential property. The research arm believed that this bodes well for industry loans growth as the backlog in loans demand will spill over into the coming month. For 2018, it expected a loans growth of 6% y-o-y. (The Borneo Post)
Low-density condo Damansara Fifty6 launched in Damansara Heights
Damansara Fifty6 Sdn Bhd, a wholly-owned subsidiary of Allstones Group Asia Sdn Bhd has launched Damansara Fifty6, a low-density condominium project in Damansara Heights. Featuring 56 units including four duplex units, the 1.11-acre leasehold project has an estimated GDV of RM75 million. The condos will be housed across two separate blocks, and the gated-and-guarded development, will have a four-tier security system as well as facilities such as a 25m infinity pool, sauna, barbeque area, hammock garden, hybrid vehicle charging stations and a gym. The developer’s past developments include Taragon Puteri YKS in KLCC, Taragon Puteri Cheras, Taragon Puteri Bintang, Plaza Taragon Kelana and Seremban Prima Mall. (The Edge Markets)
OSK Holdings expects quiet year for property development unit
The property development segment, which dragged OSK Holdings Bhd’s 4QFY17 down by 20% to RM63.38 million, is expected to remain relatively quiet for 2018 due to fewer ongoing projects. The developer said performance for the segment would be led by sales and progress billings from its existing projects and new projects launched in Malaysia. It launched Ryan & Miho in Section 13, Petaling Jaya in 4Q17 and Phase 1 of Iringan Bayu in Seremban in January 2018 with a combined GDV of RM720 million. For FY18, it would continue to focus on delivering its current order books in a timely manner. (The Edge Markets)
ECRL making good progress in 13 months, says CEO
Malaysia Rail Link Sdn Bhd (MRL) says that the RM55 billion East Coast Rail Link (ECRL) is making remarkable progress since its launch in just 13 months given the excellent cooperation between both state and federal agencies. Its CEO, Datuk Seri Darwis Abdul Razak, said the rail link, spanning 688 km connecting Kelantan to Port Klang, was on schedule for completion in 2024. work has commenced on all eight sections from Kota Bharu in Kelantan to the Integrated Transport Terminal (ITT) in Gombak under Phase 1, which involves the development of a 600.3km rail line and 12 passenger stations. (Malay Mail Online)
Felda to regain ownership of Jalan Semarak land by next week
Felda is expected to regain possession of its land at Jalan Semarak by next week. The change of ownership in the land title was due to be completed within a week. It took two months to settle the ownership of the land after signing an agreement with Kuala Lumpur Vertical City (KLVC) developer Synergy Promenade Sdn Bhd (SPSB). However, the police investigation would continue, as the police and internal investigations by Felda believed there was a dubious element in the land transfer process previously. (Malay Mail Online)
