Developers can apply for Bumi-quota release six months after property not sold
The improvement of the Perak State Housing Policy (DPNP) 2019 which comes into effect on April 1, will allow developers to apply for the release of the Bumiputera quota if the property cannot be sold within six months, compared with two years earlier. The levy penalties paid by the developer would be channelled to the Perak Housing and Real Property Board (LPHP) and be used as funds to build ‘Rumah PerakKu’ targetting the B40 home buyers. Developers who sold Bumiputera lots to non-Bumiputera buyers before getting the approval from the State authorities or LPHP would be subject to fines or double levy payments. (The Edge)
Fast-growing e-commerce driving demand for industrial properties
The demand for industrial properties, particularly mega distribution centres, inner-city distribution centres and purpose-built, industry-focused facilities, is expected to remain strong this year. Despite lower public investment curbs domestic demand for goods and services, industrial properties will continue to be sought after, in line with the fast growth in e-commerce in the region, where consumers demand either same-day or next-day deliveries from online-exclusive and online-inclusive retailers. According to Axis REIT Managers Bhd CEO Leong Kit May, “This will continue to drive demand for warehouses in Malaysia. Recent major land transactions and tender awards point to a healthy landscape of high local and foreign investor interest in developing large logistics hubs and managed industrial parks.” (The Edge)
Loophole means errant Rumah Selangorku owners are untouchable
The Selangor government cannot evict or act against Rumah Selangorku owners who rent these out as there is no official restriction on the matter. Pelabuhan Klang assemblyman Azmizam Zaman Huri then urged the state government to review its Rumah Selangorku selection process in order to close this loophole. “It seems that the terms and conditions we put in place before selling the units are merely [guidelines]. After the homes have been purchased and when the tenants start residing there, we realise we cannot do anything,” he said. In January, a Malay daily reported that around 10 of the 240 apartments in Azaria Apartment in Klang were rented out, with some turned into hostels for foreign workers, much to the chagrin of the residents there. (Malay Mail)
UEM Sunrise targets RM1.2 billion sales in 2019
UEM Sunrise Bhd is targeting to achieve RM1.2 billion sales this year, driven by several new launches and its plan to clear up its property inventory. Managing director and CEO Anwar Syahrin Abdul Ajib said UEM Sunrise was planning to do small launches consisting of 200 property units compared to an average 400 units of new launches in the past years. He said the GDV for new launches this year would be in the range of RM1.5 billion to RM1.6 billion. “We are planning some new launches in Kepong, Bangi and Gerbang Nusajaya. There will be a lot of pocket and smaller size launches. Before this, we go for 400 units. Now we go with 150 to 200 units launches with smaller GDV.” On its property inventory, Anwar said 60% of its property inventory attributed by unsold properties in Johor. (NST Online)
‘Govt takes over Pan Borneo Highway, removes PDP’
The federal government has decided to ditch the project delivery partner (PDP) model for the entire RM29 billion Pan Borneo Highway project in favour of the turnkey contractor model. Sources said the works ministry will take over the project and turnkey contractors will be hired to replace the PDP to complete the remaining construction works for the 2,324km Pan Borneo Highway project. It is understood that the decision was made in light of cost overruns under the existing PDP structure. It is unclear whether the existing PDPs for the Pan Borneo Highway will be shortlisted by the government as candidates for the turnkey contractors moving forward. (The Edge)
