Separate waste or face fines from Aug 1
Penang residents who still do not comply with the waste segregation policy have until the end of July before they face fines. Local enforcers are checking on the garbage bins of households and buildings, and if recyclable waste is found in them, the officers will slap a big sticker on the bins to remind people to recycle. Besides checking on landed homes, the authorities will also go to high-rise schemes to check. One major concern was that low-cost flat blocks could not afford to provide a recycling area. The segregation at source policy was implemented June last year and enforced since early this month. (The Star Online)
Slowdown in luxury property transactions ‘temporary’
There is a slowdown in transactions for properties above the RM1 million mark in Malaysia and a greater cooling off in interest for those priced more than RM2 million, but this phenomenon is temporary. The drop in property transactions was mainly due to consumers adopting a wait-and-see approach. “Save for a few exceptions, during property downturn conditions, luxury properties are the first and most to be impacted. Buyers usually opt for more economical alternatives or just hold back till the market improves.” Moving forward for the luxury property segment, developers would typically look to sell the lifestyle experience and the glamour factor, which is the prestige of the address and its future investment value as well as the proven track record of the developer. (NST Online)
Iskandar on track to be ‘Shenzhen’ of Malaysia
Malaysia and Singapore’s optimism for the Iskandar region in Johor could see it become a manufacturing and technology hub that could rival China’s Shenzhen, according to the Financial Times. The Monetary Authority of Singapore (MAS) previously proposed an integrated economic zone that would encompass both the island state and Iskandar Malaysia. While the area will only be completed in 2025, its importance for the economic well-being and prosperity of both countries is not lost on either administration. However, there are issues such as the large-scale property developments in Johor contributing to a property glut, as well as Malaysia’s push to become a high-income nation may negate the cost savings hoped for by Singaporean firms shifting to Iskandar. (Malay Mail Online)
Tiger Synergy to launch 9 projects worth RM2bil
Property developer and construction company, Tiger Synergy Bhd is expected to launch nine property projects with a total GDV of RM2 billion within the next five years. The company’s developments ratio between affordable and high-end housing projects is 40% and 60% respectively. The company has plans to develop various types of housing projects, mainly in the Klang Valley. It plans to develop two affordable housing projects this year, the first in Telaris Gombak, while the second project is still at the initial planning stage. Meanwhile, Tiger Synergy’s wholly owned subsidiary will be developing an affordable condominium with GDV RM100mil under the “Rent-to-Own” scheme in Telaris Gombak. (NST Online)
Menara TSR in Mutiara Damansara
TSR Capital open to selling Menara TSR to fund future projects
Construction and property development group TSR Capital Bhd said it is open to selling its office tower Menara TSR in Mutiara Damansara, Petaling Jaya, and will use gains from the sale to fund future property development projects. Menara TSR, about two years old and comes with 16 floors, is 94% occupied, mostly by international firms. The company has been approached by agents expressing interest to purchase the building due to its strategic location. Menara TSR is valued at about RM170 million “based on market valuation presented by the agents”. (The Edge Markets)
Seacera in talks for potential property joint venture
Seacera Group is in talks with several companies to jointly develop a township in 501 acres that is expected to support the ceramics maker’s revenue from mainstay tiles business. “We expect the deal can be done earliest by the third quarter, and subsequently we will announce our detailed development plan and joint venture partner,” said its Corporate Finance and Business Development Manager Mohamad Suffian Ismail. The company currently owns half of the targeted land and expects to complete acquisition of the remainder in 3Q this year. The project has an estimated GDV of RM10 billion over 15 years of development, and expected to begin in 1H2019. (Nikkei Asian Review)
Firms build indoor arenas to boost revenues
Developers like SP Setia, IJM Land, BBCC Development and Genting Group are creating multi-purpose indoor arenas to spice up their development and generate new business. A multi-purpose indoor arena has many functions. It can be used for MICE (meetings, incentives, conventions and exhibitions), concerts, sporting and lifestyle events such as gala nights, weddings and wellness programmes. Malaysia is experiencing steady growth in hosting business and lifestyle events, as well as international festivals, despite global challenges. Such venues in the country have well-developed infrastructure facilities including excellent connectivity via air, rail and road, extensive MICE expertise and venues with high-tech features, which attract enquiries from around the region. (NST Online)
Developers urged to redevelop old buildings, leave green spaces alone
An environmentalist says a comprehensive development plan should be drafted before any construction is done on green and public spaces. Centre for Environment, Technology and Development Malaysia (Cetdem) executive director Anthony Tan Kee Huat says property developers should lay out detailed construction plans which would ensure society’s green lungs were not jeopardised. According to Tan, property developers should strike a balance between catering to demand and preserving nature. Plans to commercialise spaces such as Bukit Kiara Park have raised public concerns and angered local residents. (Free Malaysia Today)
