Singapore will seek compensation if Malaysia cancels rail plan
Singapore will seek compensation for all costs incurred if Malaysia cancels a planned multi billion-dollar high-speed railway link between the two countries. Transport Minister Khaw Boon Wan stated that compensation would be sought under the terms of the 2016 high-speed rail bilateral agreement between Singapore and Malaysia. The 350-kilometer line was targeted to begin operating in 2026. “We will deal with the question of compensation from Malaysia for costs incurred by Singapore in accordance with the bilateral agreement and international law,” Khaw said, adding that Singapore expected to incur costs of around S$300mil (US$221.5mil) by the end of the year. (The Star Online)
Tribunal settles 44,581 cases filed by homebuyers
The House Purchaser’s Claims Tribunal (TTPR) recorded almost 100% settlement in 44,308 cases out of a total of 44,581 cases filed by buyers for the period January 2003 to June 30 this year. Housing and Local Government Minister Zuraida Kamaruddin said that current statistics showed a pattern of significant increase in purchasers’ awareness in making claims regarding housing and strata cases. This is a result of increased awareness with promotional activities undertaken through the Tribunal for Housing and Strata Management (TPPS). Zuraida said most of the TTPR cases involved claims for damages for the delay in the handover of vacant possession of a home or common property, while the majority of TPS cases filed were claims for maintenance charges and issues of inter-level leaks. (NST Online)
Developers cautious in launching projects
Malaysian property developers are currently being cautious in launching new projects due to the challenging market conditions. To date, two property firms, Mah Sing Group Bhd and TA Global Bhd, have stated that they will defer their launches to later of the year up until next year. It is easier for developers to launch smaller developments with smaller units, as well as landed properties, because the can sell a limited number of units before launching the next phase, said Laurelcap Sdn Bhd property valuer Kit Au Yong. Meanwhile, township developers will be able to continue launching in the challenging time as the company can be flexible with its landbank. Developers with better financial positions will also be able to take the risk and launch their projects in the current market. (The Malaysian Reserve)
FT Minister to decide fate of field approved for condo
The site of a high-rise residential project on a former football field in Bandar Tun Razak, Kuala Lumpur has been sealed by Kuala Lumpur City Hall (DBKL). A stop-work order for the project, which received much protest from residents since last year, was also issued last Tuesday. DBJK said the move was because the early work permit to allow them to start work that was issued to the developer had expired. The 2.09ha land in Jalan Jujur was formerly a football field that was used by residents for various recreational activities. However, it was sold to a developer for the construction of a condominium last year. (The Star Online)
MREITs: Recovering share prices but unexciting outlook
After the KLREIT index recovery plunged to a low of minus 13% in March, MREITs share prices have been recovering. Kenanga Research reckons that the sector’s outlook is still unexciting as it continues to be plagued with unexciting reversions. The sell-down in 2018 may have been due to perceptions of a growing oversupply of office and retail spaces in the Klang Valley. Meanwhile, the recent recovery may have been due to investors gaining some confidence post positive performance in recent quarters, while investors may also be looking for flights for safety in MREITs in light of market volatility post GE14, said the research arm. However, the sector’s fundamentals continue to be unexciting due to low rental reversions. The issues of oversupply have made string rental reversions tough to come by in the last three years with many MREITs recording flattish to mild GDPU growth. (The Borneo Post)
