No further cooling measures from government
The government is not expected to implement further cooling measures for the property market in the upcoming Budget 2016, says industry players. Property transactions and loan approval have declined significantly, while bank rejection rates are high. Instead, the recent softening in the property market will see the government encouraging consumer spending, indirectly boosting the dampened property sector. Property Insight magazine’s MD KK Chua said the government might reintroduce the Developer Interest-Bearing Scheme (DIBS) to spur the sector, and may also reduce the Real Property Gains Tax (RPGT) to encourage first-time house buyers. LBS Bina Group suggested the government enhance development projects by supplying more land to private developers at a reasonable price through joint venture and sale agreement, grant inducements for second-time house buyers who need to upgrade, and ease restrictions for foreign property investors. (The Malaysian Reserve)
RM4,310 psf Imbi land deal could set record price in KL
Elite Starhill Sdn Bhd – which was recently acquired by the Hong Kong arm of Singapore-listed Debao Property Development Ltd – is in the process of buying an 8,362sqm (90,008sqft) parcel on Jalan 1/77B, near Berjaya Times Square, for RM388 million. Industry players say the deal, at RM 4,310 psf, may emerge as the most expensive in Imbi and is significantly higher than recent transactions in the Bukit Bintang and KLCC areas. Land prices in Imbi are typically between RM2,400 and RM2,500 psf, while land in Bukit Bintang and KLCC have gone for between RM3,100 and RM3,600 psf. The country’s land transaction record continues to be held by Tan Sri Desmond Lim Siew Choon, who paid RM7,209psf for a parcel on Jalan Bukit Bintang, next to Pavilion Kuala Lumpur. Elite Starhill has already secured a development order for the land, converting the land use from institutional to commercial. (The Malaysian Insider)
SRJK (C) Jalan Imbi, next to Club de Vegas, is expected to make way for a 69-storey commercial building. – Pic from theedgeproperty.com, October 7, 2015.
Ringgit jumps 4.6% on oil price hike, trade surplus report
The ringgit jumped the most since 1998 as Malaysia reported its biggest trade surplus in nine months and the price of crude oil went up. The ringgit jumped 4.6% to 4.1832 per dollar as of 4.04pm yesterday in Kuala Lumpur. (The Malaysian Insider)
Ex mayors: Open park but relocate golf club
The proposal to turn the iconic Royal Selangor Golf Club (RSGC) into a recreational park has drawn mixed reactions from two former mayors and a historian. Tan Sri Elyas Omar, the city’s third mayor, said that he was open to the idea of a park in place of the golf club, as long as the club was relocated, as it was part of the city’s history. There was no need to demolish the heritage buildings, and the 18-hole golf course could be retained privately, while the rest of the park was open to public. Another former mayor, Tan Sri Ahmad Fuad Ismail, a nature lover, called it a good move as having a new park in town would benefit more people and cater to those from Ampang, Cheras and Kuala Lumpur due to its accessibility. The biggest challenge would be sorting out the land ownership, along with compensating the members and relocating the club. However, historian Prof Tan Sri Khoo Kay Kim opined that the club’s operations should not be disrupted, and instead the government should focus on making existing open spaces and fields more active. (The Malay Mail Online)
A vehicle exits the iconic Royal Selangor Golf Club at Jalan Tun Razak. — Picture by Azneal Ishak/Malay Mail
Credit Suisse: TPPA could boost GDP by 5%
Malaysia could benefit economically in the long term from the Trans Pacific Partnership Agreement (TPPA) and see a 5% boost to its gross domestic product (GDP), second only behind Vietnam’s 10%, according to Credit Suisse. In its report, Credit Suisse said that while the details of the TPPA were still fuzzy, the manufacturing sector should see the most positive impact in Malaysia, followed by electronics, apparel and footwear. (The Edge Markets)
Clearer skies finally throughout Malaysia
Predictions of clearer skies by Oct 10 appear to be on track, with the haze vastly reduced in intensity nationwide. As of noon yesterday, the Department of Environment’s (DOE) readings showed that Port Dickson appears to be the only area with an ‘unhealthy’ Air Pollutant Index (API) reading at 102. (New Straits Times Online)
Merge Energy bags RM32.9mil East Coast job
Merge Energy Bhd’s (MEB) wholly-owned subsidiary Mewah Kota Sdn Bhd (MKSB) has been awarded a contract worth RM32.9 million from the East Coast Economic Region Development Council (ECERDC). The job involves building horizontal collector well and associated works for Loji Rawatan Air Kelar (Phase 1) for the Pasir Mas Halal Park in Kelantan. MEB is primarily involved in building, structural and civil engineering, property development and property investment. (The Edge Markets)
