Govt to streamline quota, prices of affordable homes nationwide
The government is planning to streamline the quota and prices of affordable homes throughout the country. The Urban Wellbeing, Housing and Local Government Ministry is preparing a working paper to streamline the quota and house prices determined by state governments through the State Housing Policy. Currently, each state has different quotas and there are some who take this matter lightly, therefore the ministry aims to streamline both based on the house value proposed by the state governments under the quota determined for the construction of affordable homes. (Malay Mail Online)

Property market to resume uptrend only in 2018-19
According to Axis REIT Managers Bhd head of investments Siva Shanker, the property market will only begin its upward trend again in 2018/2019 before peaking in 2020/2021. “Everything is a cycle. 2017 will see the market finding its level and the kneejerk reaction will subside,” he said. Commercial space is expected to remain lacklustre in 2016 and 2017 and continue to be a tenant’s market, due to additional office space coming in this year on top of existing space in the Klang Valley. Although landlords and building owners may consider reducing rentals to attract tenants, Siva said rent reduction may not be the answer as lowered rents mean less money for maintenance. Commenting on foreign investments, Siva said Malaysia is still attractive but faces a serious perception problem due to various reports on corruption, which will affect Malaysia’s attractiveness to new foreign investors. (The Sun Daily)

Builders told to allocate 30% of project for affordable homes
Property developers are being urged to allocate at least 30% of their development portfolio for affordable housing to cater to growing demand. State governments should make it a condition for developers, said Rahim & Co executive chairman Tan Sri Abdul Rahim Abdul Rahman. He pointed out that inn the past, state governments used to impose a quota where 30% of the development should be for low-cost housing, so why wasn’t there a similar condition for affordable homes. He admitted that many developers avoid developing affordable homes because such projects yield low profits, but noted that many people do not want to live in low-cost homes because they want to upgrade as their salary increases, and also because they do not want to be associated with low-cost housing. (The Star Online)

PR1MA loan applicants’ Account 2 to be restricted
Applicants of the “step-up” end-financing scheme for the 1Malaysia People’s Housing Programme (PR1MA) — which was announced in Budget 2017 — will not be able to make any other withdrawals from their EPF Account 2, at least not until their PR1MA loan is settled. Details of the scheme are currently being worked out, but for EPF, the main aspect will be ring-fencing EPF Account 2. The move will provide assurance to banks and ensure applicants would be able to pay back the housing loan. Once they secure the financing, applicants will not be able to use their EPF Account 2 to make any other kind of withdrawal. Therefore, applicants will have to decide which course of action is more important, as the ring-fencing will only be removed once they have paid off or refinance their loans. (The Edge Markets)

KWAP seeking properties in France, Germany
The Retirement Fund Incorporated (KWAP) is eyeing new real estate acquisitions overseas in the medium term, particularly in France and Germany, despite the volatility in the global market. The fund is planning to grow investments abroad with higher asset allocation next year at about 10%, compared to 5% currently. Due to current economic uncertainties leading to lower returns, KWAP is willing to consider lowering its return ratio for real estate investments. The properties it is looking at, located in Paris and Germany, are below 5% ratio, but KWAP is willing to revise its minmum to 4% due to the current prolonged environment. (The Star Online)

(Photo from SCMP)

China Construction Bank gets Malaysian banking licence
China Construction Bank Corp (CCB), ranked as the world’s second-largest bank, has been granted a Malaysian commercial bank licence by the Minister of Finance. The licence was granted based on its prudential strength and ability to “bring in propositions that are in the best interest of Malaysia”. CCB’s unit is the third Chinese bank to be granted a banking licence in Malaysia after Bank of China (Malaysia) Bhd and Industrial and Commercial Bank of China (Malaysia) Bhd (ICBC). (The Star Online)

SP Setia expands Shah Alam convention centre
SP Setia Bhd has more than doubled the size of its Setia City Convention Centre in Setia Alam to cater to growing demand for exhibition facilities in the area. SP Setia president and CEO Datuk Khor Chap Jen said that while the existing convention centre catered to ballroom events and smaller meetings, the new extension would be able to cater for large-scale events such as exhibitions, motoring road shows and concerts with total parking bays of 2,000. The expanded facilities are called Setia City Convention Hall 1 & 2, measuring 11,800 sq ft in total, which is connected to the main centre with a covered walkway. (The Star Online)