Malaysian housing market may have bottomed out
Industry experts are of the opinion that the Malaysian housing market may have bottomed out, as developers reponded quickly when it began to slow down. In a report by The Edge, real estate services provider Savills (M) Sdn Bhd executive chairman Christopher Boyd was quoted as saying the market was expected to improve by the end of this year or early next year. There is still a lot of pent-up demand across the market, but property sales within the RM1 million to RM1.5 million price segment had been slow. Despite the slowdown in the property market, launches for affordable homes below RM500,000 in particular have been very successful. Meanwhile, real estate consultancy firm VPC Alliance (M) Sdn Bhd managing director James Wong was quoted as saying residential property prices had fallen amid poor economic sentiment, weak economy and tight lending guidelines by banks. He predicted residential property prices in the Klang Valley would see a single-digit drop, and office prices to decline. (The Edge Markets)

Penang mulling rent control for heritage properties
The increase of eviction cases within the George Town Heritage Zone has spurred the Penang state government to consider reviving the abolished Rent Control Act. Penang Chief Minister Lim Guan Eng announced the state executive council’s decision to evaluate the option as a way to allow existing residents to remain within the heritage site. The Rent Control Act that used to keep rental rates at a minimum was abolished in 1997, and since then, the rental rates have increased dramatically. It was earlier reported by the media that existing residents were evicted due to inability to pay the exorbitant rental rates, especially after the pre-war houses were bought over by foreign investors. (The Malay Mail Online)

Photo from The Star

TTDI Segaris first duplex residences in Taman Tun Dr Ismail
TTDI Segaris, the first duplex residences in Taman Tun Dr Ismail, is expected to attract buyers who have been waiting for the opportunity to own a home in the affluent and well-connected neighbourhood. The 28-storey development has a total of 185 units, of which 153 are duplexes. The project is a joint venture between Naza TTDI and Prasarana Malaysia Bhd, and is located close an MRT station and various key highways in the Klang Valley. Built on a 0.4ha leasehold land, TTDI Segaris is priced at RM1,100 per sq ft with an expected completion date of 48 months from the sale and purchase agreement. (The Star Online)

I-Bhd anticipating a record financial year
I-Berhad is confident of a record financial year ending Dec 31, 2016 (FY16) and expects its good performance to continue for the next two years. The confidence stems from its unbilled sales of RM691.7 million for property development, as well as revenue following the completion of its high-rise properties’ foundation stage where it can start billing customers. The group’s activities are focused on i-City in Shah Alam and 8KiaPeng in Kuala Lumpur City Centre, but does not expect significant sales contribution from these two projects until 2017 onwards. It expects sales to hit RM500 million this year from i-City and 8KiaPeng. Property development and leisure operations contributed 80.2% to the group’s pre-tax profit for FY15. It does not see any major contribution from property investment until 2018. (The Sun Daily)

Real estate agent shot dead in OUG
A lunch outing for a real estate agent ended in tragedy when she was shot dead at close range on Wednesday. The victim and her five children, aged between 2 and 13 years old, had finished lunch at a restaurant in Overseas Union Garden (OUG) and were in their car when two suspects on a motorcycle stopped and fired at least five shots at the driver’s window. One of the bullets hit the victim’s neck, who died at the scene, while one of the victim’s daughter also got hurt in the process. Police are yet to determine the motive of the shooting. (The Sun Daily)

Yong Tai signs MoU for RM510mil mixed development in Ijok
Yong Tai Bhd has entered into a memorandum of understanding (MoU) with PGCG Assets Holdings Sdn Bhd to jointly develop and construct mixed development properties in Puncak Alam, Ijok with a GDV of about RM510mil. The JV will jointly develop 1,039 mixed development properties on the 22 hectares of leasehold land. However, the agreement is meant to only serve as a statement of intention for both companies, with detailed terms and conditions to be further negotiated. (The Star Online)

MQREIT buys Menara Shell for RM640mil cash
MRCB-Quill Real Estate Investment Trust (MQReit) is acquiring Menara Shell in Kuala Lumpur from its major unitholder Malaysian Resources Corp Bhd (MRCB) for RM640 million in cash. Menara Shell is a two-year-old building with 99.9% occupancy rate and gross rental income of RM46.36 million for FY15. The proposed acquisition of Menara Shell would strengthen MQReit’s position as a sizeable, geographically well-diversified office REIT in the Klang Valley, and increase the REIT’s asset size from RM1.63bil to RM2.27bil, raising its position from 8th to 7th out of 16 players in the Malaysian REIT industry. (The Star Online)