New quit-rent ruling for high-rises charges unit owners
Joint management bodies (JMB) and management committees of stratified buildings in Shah Alam were briefed on new individual quit-rent in Selangor. The individual quit-rent replaces the quit-rent charged to JMBs of stratified buildings on June 1. Instead of billing the building management, the Selangor Land and Mines Department will charge the quit-rent to each unit owner. Previously, the quit-rent was divided and paid by unit owners through maintenance fees collected by each building management. But there were many cases of unit owners not paying the monies owed, and the burden fell onto the building management. Many problems that cropped up in strata buildings had increased yearly. They comprised limited parking spaces, high maintenance cost, expensive utility repairs and poor strata management due to lack of cooperation between management and unit owners as well as poor cleanliness. (The Star Online)
Al-Salam REIT aims to acquire assets worth RM1bil
Al-Salam REIT, one of the two REITs in the Johor Corp group, is aiming to acquire almost RM1 billion worth of commercial and industrial assets over the next three years. In its bid to attract more investors by increasing the number of high-yield assets in its portfolio, Al-Salam will buy properties not only from JCorp but also external and third parties. Should the REIT manage to acquire RM1 billion of assets over the next three years, its portfolio would more than double in size from RM928 million at present. The target is to make the REIT, which is one of the smallest on Bursa Malaysia, more attractive to fund managers and sophisticated investors. The REIT is in the process of acquiring RM270 million worth of properties this year, which comprise a Mydin hypermarket in Gong Badak, Kuala Terengganu, for RM155 million and 22 restaurants across Malaysia for RM115 million. (The Edge Markets)
e-TOL system in Cameron Highlands from next year
The electronic-Temporary Occupation Licence (e-TOL) system will be fully implemented in Cameron Highlands next year, according to Pahang Mentri Besar Datuk Seri Wan Rosdy Wan Ismail. The implementation of the system is temporarily on hold for data cleaning and data updating work. It will be fully implemented after the e-Land system is launched in Pahang. The e-TOL is part of the e-Land system which is scheduled to be launched in 2019. The e-TOL system is a pilot project undertaken by the Ministry of Natural Resources and Environment in 2016 with the aim of expedite the TOL approval process. (Malay Mail Online)
IDEAS: Get ready for property bubble burst
Local think tank Institute for Democracy and Economic Affairs (IDEAS) said the government needs to be ready for the property bubble — generated during the property market peak between 2012 and 2013 — to burst and for the risk that this could lead to an economic crisis. The property bubble in 2012 and 2013 was brought about by spectacular growth in property transactions, particularly in the high-end segment. This was ignited by rising profit expectations, growing demand and at a later stage by a supportive credit market. The government could respond with market-oriented solutions, and downplay its role in the property market by reducing the number of government agencies and encourage the private sector to get involved in the affordable housing market. (The Edge Markets)
Penang seeks RM1bil for PTMP
The Penang government will consider requesting a RM1bil soft loan from the Federal Government to expedite its implementation of the Penang Transport Master Plan (PTMP). The amount would be used as a bridging loan to carry out both the Bayan Lepas Light Rail Transit (LRT) and the 19.5km Pan-Island Link I (PIL I) from Gurney Drive to the airport simultaneously. The success of the PTMP, which is the state government’s multi-billion ringgit public transport project, involving LRT, monorail, cable cars and water taxis, depends on funding from property development on a proposed trio of man-made islands known as the Penang South Reclamation (PSR) scheme. The PSR is a massive plan to reclaim the islands totalling 1,800ha off the southern coast of Penang. (The Star Online)
