KUALA LUMPUR: Silverland Capital Sdn Bhd, in collaboration with Metier Pty Ltd, will develop the Silverlakes Brand Village, a lakeside street mall in the Kinta Valley, which will have a gross development value of more than RM1 billion.
The project, set over 206.8ha, is slated for completion in seven to eight years.
The first phase of the development will begin at the end of the second quarter of next year at a cost of RM250 million.
The Silverlakes project is a joint venture between Syarikat Maju Perak Bhd, the land owner, and Silverland Capital as the developer.
Metier will provide consultancy for the mall development, manage all leasing arrangements and, upon completion, undertake to manage the retail operations for 15 years.
Silverland Capital executive chairman Datuk Azizan A. Rahman said the initial phase of the development will not only spur tourism growth in Perak but also provides economic growth and employment opportunities to the greater Kinta Valley population.
"The Silverlakes Brand Village will host major brands like Gucci, Puma and Adidas. It will have a 220-room hotel and convention centre, that can cater to more than 1,000 people.
"We are optimistic of receiving both local and foreign tourists as the project is in a strategic location in the Kinta Valley, with a train station nearby, making it easier for people to visit," he said at a media briefing, here, yesterday.
The Silverlakes Brand Village will have between 15 and 20 food and beverage outlets and 180 units of retail space, catering not just for high-end visitors but also low and middle-income visitors.
Speaking on the first phase of the development, Azizan said the retail outlets will be divided into two sections - North Island and South Island.
"The project has its own strength and is quite different from the Johor Premium Outlet.
"For those who do not like to shop, they can seek out watersport activities as the village is surrounded by a lake," he added.
There are also plans to organise extreme watersport activities in the area to attract more visitors.
The second phase of the project will be known as Future Development while the final undertaking is the Cocoon@Silverlakes. Bernama
BANDAR Rimbayu Sdn Bhd, an associate company of IJM Land, is expecting to launch Phase 3 of Bandar Rimbayu by early next year, following good take-up rates in the first two phases.
Bandar Rimbayu, a township designed based on the green city concept, is spread over more than 761ha close to Kota Kemuning and the Kota Permai Golf Course in Shah Alam, Selangor.
IJM Land Bhd managing director and chief executive officer Datuk Soam Heng Choon said: "We have clocked in RM600 million in sales. Phase 3 is due to be launch early next year. We estimate the gross development value to top RM400 million."
On the whole, the RM11 billion Bandar Rimbayu is expected to cater for a population of 50,000. Its development is being stretched over the next 12 to 15 years.
The new township is currently framed by three highways - Elite, Kesas and the South Klang Valley Expressway.
Soam said a big part of Bandar Rimbayu centres on community interaction.
Dubbed the "Arc", a community facility with a field and a huge turfed roof houses the project's site office, sales gallery and space for kiosks and all manner of activities intended to foster community living.
"The whole covered area doubles as an activity area for the community, like flea markets, carnivals and recreational sports," he said at a briefing, here, yesterday.
Also present were IJM Corp Bhd executive deputy chairman Tan Sri Krishnan Tan Boon Seng and IJM Corp chief executive officer and managing director Datuk Teh Kean Ming.
Soam said crime prevention has being incorporated into the project in that the Bandar Rimbayu neighbourhoods are designed so as to prevent outside traffic from passing through.
"If (the residents of guarded neighbourhoods) want to put up fences, they can, provided the majority of the residents agree. So when they stay here, they must be ready for it. They must sign off from day one to say that they consent to such a scheme."
To encourage the use of public transport, shuttle service will be provided to the nearest light rail transit (LRT) and bus stations.
"The nearest facility will be the upcoming Putra Heights LRT station," he said.
"The other form of connectivity is Internet connection - there is fibre to high-speed broadband connections," Soam said.
To recap, Bandar Rimbayu was previously known as Canal City. The previous state government had offered the land to Kumpulan Europlus Bhd in exchange for a flood mitigation programme that would have entailed the construction of an 18km canal connecting Sungai Klang to Sungai Langat over 2,187ha.
The land was alienated to Canal City Construction Sdn Bhd, a unit of Radiant Pillar Sdn Bhd, which is undertaking Bandar Rimbayu.
Three months ago, IJM Land tightened its grip on Bandar Rimbayu to a 60 per cent stake, allowing it to consolidate the results of this development.
KUALA LUMPUR: Iskandar Malaysia expects to secure RM22 billion in investments next year compared with RM21 billion this year, said Iskandar Regional Development Authority (Irda) chief executive Datuk Ismail Ibrahim.
He said Irda was optimistic Iskandar Malaysia will continue to get more investments on a year-to-year basis.
"We have a target of RM383 billion worth of investments by 2025. This year onwards, we will be able to receive an average of between RM20 billion and RM22 billion," he said on the sidelines of the Land Public Transport Symposium 2013 here yesterday.
He said in the early years of its inception, Irda received more from foreign investments, at about 55 per cent, against domestic investments of 45 per cent.
But today, there is a gradual shift. Now, up to 65 per cent are domestic investments. This shows greater and stronger confidence in domestic investors, he said.
"There are two types of investments. One will be new projects which will be announced soon, and the other is expanding the current ones," he added.
Ismail said the opening of Legoland water theme park and hotel, and the addition of stores at the Johor Premium Outlets showed that investors were more confident of development in Iskandar Malaysia.
"In the past five years, we have been covering the education, tourism and healthcare sectors.
"With the opening of Primeworks Studios this year, we are hoping to get more investors in the creative industry next year," he said, adding that Irda was also looking for companies in the oil and gas, food- and agro-processing sectors.
Irda will be introducing its halal hub next year. Bernama
KUALA LUMPUR: TH Properties Sdn Bhd, the property arm of Lembaga Tabung Haji, is inviting the public to tap its exclusive RM37.5 million development compromising 35 freehold units on a 4.04ha site, branded as PEARL@enstek.
The luxurious property develpment is located at the company's 2,071.6ha integrated township known as Bandar Enstek in Sepang, which is billed as the "Prime Suburb of KLIA".
The township has registered a gross development value of RM9.2 billion since its inception and is expected to be completed by 2025.
"Pearl@enstek offers home buyers attractive and affordable scalability to bigger and more luxurious living," said senior manager of marketing and sales Mohd Adlee Yusof.
"Pearl@enstek homes offer luxurious living and attractive long-term investment for those contemplating suburban lifestyles, far enough from the hustle and bustle of the city and yet close enough to the airport, schools, educational and health institutions, leisure and other conveniences," said Mohd Adlee.
For the 4+1-bedroom and 5-bathroom semi-detached units, prices range from RM851,100 to RM1,671,300 each.
Prices for the 5+1-bedroom, six-bathroom bungalows range from RM1,227,900 to RM1,342,400.
Early completion of the project by April next year is also seen as strong proposition for potential home buyers.
SIBU: Property prices in Sarawak are expected to go up by five to 10 per cent from next year.
Sarawak Housing and Real Estate Development Association (SHEDA) vice-president Datuk Joseph Ting King Sung said this is due to normal factors such as property appreciation and higher construction, material, labour and land costs, rather than pure speculative activities.
He said this after announcing the three-day SHEDA Home and Property Roadshow 2013 from December 6 at Wisma Sanyan, here.
Ting added that it is fortunate there are no additional measures or restrictions on financing, which allows first/second-time buyers access to high financing at a low interest rate.
On the goods and services tax (GST) that will be implemented in April 2015, he believed that it will be a "boon for businesses" as corporate tax will be reduced from 25 per cent to 24 per cent, and 20 per cent to 19 per cent for the small and medium companies in 2016.
"This is positive for the economy as the GST, coupled with tax relief for the middle-income group and reduction in individual income tax rates by one to three per cent, will increase disposable income and increase consumption expenditure and spending.
"But overall, I believe the fundamental growth of the property market will have to be supported by population expansion and increased business activities," Ting said.
He hopes that more houses below RM380,000 will be built to meet affordability and growing demand.
On the roadshow, he said 19 developers from the state and one from Kuala Lumpur has confirmed participation.
He said they will showcase properties from residential homes to shophouses, apartments, condominiums and others.
"They will offer perks like special prices, legal fees and gifts. It is going to be an excellent opportunity for buyers/investors to review and make purchases," Ting added.
REAL estate agents in Ipoh are worried that several measures announced during Budget 2014, such as the Real Property Gains Tax (RPGT) hike, will dampen the already soft Ipoh property market.
PWP Properties (N) Sdn Bhd business development director Stephanie Chang said the announcement of the increase in RPGT, ranging from 30% to 15% of profits for properties sold within five years, had caused a scramble among several of her clients to sell off their properties before the new rates are imposed on Jan 1, 2014.
“The day after Budget 2014 was tabled, we started receiving calls from clients urging us to speed up sales of their properties.
“Some are even willing to sell their property at lower prices, but the process is not as simple as one thinks.
“You need a willing buyer and if the property is leasehold, you need to get the Mentri Besar’s consent and go through a lot of paperwork that will take at least a month to be finalised.
“By the time the sale can go through, it will already be next year and subject to the increased RPGT rate,” she said.
Chang said she foresees a drop in the number of second-hand property next year, while investors get accustomed to the new rates but said the extent of the impact on business will only be known when the time comes.
“Having been in the business of selling second-hand property for several years now, I have watched how the industry was affected by the announcement of the RPGT a few years ago and its gradual increments.
“However, the hike is quite drastic this time around but I cannot make an assumption on how big an impact it will make.
“The market will be more challenging when Budget 2014 measures take effect, but in spite of that, there is always business to be made in property and real estate,” she said.
Another policy changed during the Budget 2014 tabling that Chang expects to affect the property market is the increase in the minimum price of property that can be purchased by foreigners, from RM500,000 to RM1mil.
“Quite a number of Singaporeans and Chinese nationals contacted us after Budget 2014 announcement in the hope of buying Ipoh property before the RM1mil minimum price is implemented.
“Personally, I am a bit apprehensive about the increase because while the minimum price makes sense in areas such as Kuala Lumpur and Penang, with sky-high property prices, there are barely any properties for sale in Ipoh that reach RM1mil.
“I feel it would be better if the policy was amended to suit the market in each state,” she said.
As for Raine and Horne International Zaki and Partners Ipoh resident valuer James Chou, he feels that Budget 2014 policies will further soften the already slow property market in Ipoh.
“Just take a look around the city and you will see quite a number of shops lying empty, as the economy in Ipoh is not as strong as in Kuala Lumpur or Penang.
“With that in mind, I feel the RPGT hike is a little too drastic and not fair to smaller economies such as in Ipoh.
“There is practically no need to curb speculation in Ipoh since the market is already slowing down,” he said.
Instead, Chou felt that the Government should look into revising housing loan rates if it wanted to make property prices more realistic.
“The difference between maximum loan rates for first property purchases and subsequent purchases should be widened if the Government’s aim is to reduce speculation.
“On the whole, I believe the property market should be left to operate with as few government regulations as possible.
“While some regulations are needed, those announced in Budget 2014 are quite drastic,” he said.
D. Henry Valuers Realtor director D. Henrey Arther concurred that the second-hand property market in Ipoh has been quite slow this year, with the number of sales at his agency taking a 50% dip compared to last year.
“During the first half of the year, potential buyers were waiting for the general election to see if there would be any changes in the political landscape that would affect the property market.
“After that, they waited for the tabling of Budget 2014 before making any purchase decisions,” he said.
However, Arther said the recurring problem affecting property sales under his watch were not directly related to any policies amended in Budget 2014 and had to do with bank loans instead.
“Ever since Bank Negara tightened its regulations for housing loans early this year, banks have followed suit and this has resulted in quite a high rejection rate for such loans.
“While they were more accommodating with paperwork and the applicant’s financial history before this, I have faced many cases this year where the purchaser is more than capable of servicing their property loans, but a slight blemish in their financial records or income tax statement causes problems in their loan applications.
“Now, the simplest mistake such as neglecting to pay a RM100 instalment a decade ago can result in a housing loan being rejected.
“This has affected first-time property purchasers such as young families significantly.
“They neither have experience in dealing with stringent regulations for bank loans nor the cash to buy property without taking loans,” he said.
Arther said that if the Government wanted to help first-time property purchasers through its Budget
2014 policies, it should also look into providing financial consultation and education to such purchasers.
“None of these people are cash-rich and they need to go to financial institutions to be able to buy their first houses.
“The problem is quite distressing in Ipoh, as property prices are low compared to bigger cities, yet locals cannot buy homes due to red tape and paperwork problems.
“If the Government is serious in ensuring that everyone is able to own a home, they should guide the people through the complicated process of obtaining property loans,” he said.
KUALA Lumpur residents should hold off on their payment for the new assessment charges until March next year, Kepong Community Service Centre head Yee Poh Ping said.
Yee said city folk should wait until discussions with Kuala Lumpur City Hall (DBKL) were done and wait for further announcements before paying their assessment bills.
Set to be implemented next year, the proposed hike has drawn criticism from both city folk and members of Parliament who are outraged by the increase.
“It is a waste of public’s money to send out notification letters of the proposed hike in assessment fees twice.
“City Hall should have conducted public engagements, consultations or attempted to seek feedback from stakeholders before sending notices in the first place,” he said during a residents’ protest at Mutiara Magna Flats in Kepong yesterday.
Mutiara Magna Residents Association chairman Ahasrap Khan M. Aslam said residents there would wait until March before considering payment.
“These are low-cost flats and as such most of the residents here are already financially constrained,” he said.
There are about 3,000 residents occupying 1,200 units in the four blocks of Mutiara Magna flats.
Resident Khadiltul Zamani Khairudin, 58, said that if the new charges were applied, residents would have to pay RM252 compared to RM86.40 currently.
“This is an increase of almost 200%. This is definitely an amount that we cannot afford,” she said, adding that she had sent her objection letter to DBKL.
Another resident Abu Bakar KK Ibrahim, 48, said it would be impossible to support his family of 10.
“If DBKL wishes to increase the assessment fees for private homes and commercial properties to cover the increase in operating costs, then a reasonable amount would be an increase of not more than 10%,” Yee said, adding that he would be collecting residents’ objection letters to send to DBKL.
Yee also highlighted that DBKL’s services were not up to par to warrant such a drastic hike.
“For example, many residential areas do not have any fields or playground facilities and where there are, the equipment is not well maintained,” he said.
Ratepayers in the city have until Dec 17 to send their objection letters to DBKL, which will hold discussions from January to March next year.
SP SETIA Bhd's latest offering - Setia V Residences - has seen a strong take-up rate among local investors, with 70 per cent of its 178 units already sold.
The upscale development project, which straddles Penang's famous seafront promenade Gurney Drive, Lorong Burma and Jalan Kelawei, is set to be marketed in China, Hong Kong and Taiwan, said SP Setia North general manager Khoo Teck Chong.
"This project has been instrumental in helping us to exceed our revenue targets for this year. We hope to convince more local investors to check out our second tower, which each unit tagged at between RM1.7 million and RM2.5 million," he told Business Times during the official launch of the Setia Gallery and Suites on Gurney Drive.
The units in Tower B, each having a built-up area of between 1,300 sq ft and 1,800 sq ft, will offer either city or shoreline views.
In addition, there will also be facilities the that developer has tagged as "six-star".
They include a sky deck with an infinity pool, a pavilion and landscaped gardens, guest lounge and viewing decks, concept kitchen and barbeque area, as well as a large balcony with a dip pool in Tower A.
He said the company is targeting to chalk up RM250 million in revenues for its projects in the north next year.
On the island, SP Setia is also expected to focus on the Tanjung Bungah area, where it is planning to launch a RM1.1 billion mixed development project.
The proposed high-end project - tagged Setia Eco-Forest - will comprise landed properties and luxury condomiums.
It will boast of a green concept that is similar to the company's Setia Green project, which promotes eco-living.
PETALING JAYA: The credit cycle is at its best, with Malaysia’s economy enjoying full employment, but ratings agency Standard & Poor’s (S&P) believes that as household debt continues to rise, systemic imbalances will pose a risk to financial institutions.
S&P analyst Ivan Tan pointed out that imbalances had emerged, with property prices having risen 10% year-on-year since 2010 while household income had not kept pace.
“Household debt levels and housing price levels have very important implications on the ratings of the banks, as 55% of the household debt is on mortgages and 27% of the total loans (in the financial system) is on mortgages,” he told StarBiz.
He said the unemployment rate, at around 3%, was already near its lowest level, which meant that the country was already in full employment.
“What we are saying is that the credit cycle is at its best. Our outlook is for about one to two years and risk has built up in the financial sector, and we will continue to monitor the household debt levels in relation to the gross domestic product and look for consistent indications that the housing price escalation and consumer debt are moderating,” he said.
Tan believes that banks have sufficient financial buffer to withstand a 2% rate hike (in the overnight policy rate) in a hypothetical stress scenario despite the risks posed.
On Wednesday, S&P downgraded the outlook on four local financial institutions –CIMB Group Holdings Bhd, AmBank (M) Bhd, RHB Bank Bhd and RHB Investment Bank Bhd – to “negative” from “stable”.
CIMB Research analyst Winson Ng Gia Yann said the research house was negatively surprised by the downgrade, which was premised on the country’s high household debt. Nevertheless, it was still confident of the capabilities of Malaysian banks’ to keep their impaired loan ratios at bay.
“In fact, the industry’s gross impaired loan ratio has been falling from 3.4% in 2010 to 2.7% in 2011 and 2% in 2012. Also, banks had built up their loan-loss coverage to a strong 97.6% as at end-September 2013.
“For the industry, the household loan is mainly in the form of residential mortgages, which are mostly well-collateralised. Housing loans make up 27.9% of the industry’s loan base, compared with 4.8% for personal loans and 2.8% for credit-card receivables,” he said in a research note.
However, Ng said the downgrade could adversely affect sentiment on banking stocks in the near term.
“We are more concerned about top-line growth in the mature Malaysian market and pressures on margins. We do not see material risks for a significant uptick in impaired loan ratios, premised on a healthy economic climate, continuous improvemnt in bank loan approval and monitoring systems,” he said.
S&P also has lowered CIMB’s long-term Asean regional scale to axBBB+ from axA-.
AmResearch analyst Rachel Huang said the immediate impact from the outlook downgrade may be on funding costs.
“Based on industry checks, the banks have hinted that the change in outlook did not affect funding costs, as these were more reliant on ratings. For CIMB, the change in the Asean scale rating may affect funding costs, if these are raised in foreign currency, but we understand that there are no plans to do so.
“In addition, the company’s rating has been changed only at the holding company level, which thus does not affect its overseas subsidiary’s ratings,” she said.
In the report, Huang also said the latest downgrade implied a neutral impact on funding costs, as there was no change in ratings except for CIMB.
KUALA LUMPUR: The revised property valuation notices sent out by Kuala Lumpur City Hall (DBKL) to owners earlier this month will remain unchanged.
From Jan 1 onwards, they will receive their assessment bill which reflects the new rates even though they may still submit their letters before Dec 17 objecting to the increased rates.
However, Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor said ratepayers could choose to wait until March to pay, pending the outcome from consultation with its stakeholders on the increase.
“It is up to the people whether they want to pay the amount (based on the January bill) or wait until later,” he said after launching a RM48mil road project in Jalan Segambut here yesterday.
He said DBKL’s by-laws stated that the bi-annual assessment bill was required to be sent out in January and June of each year.
He said the 507,800 ratepayers in the city could still send their objection letters to DBKL as set by the local authority, but there would not be enough time for them to process them before the January bill.
“That is why we will discuss it (appeal and protests) with our panel and hold dialogues with our stakeholders before announcing the final rate that everyone has to pay sometime around March,” he said.
At a separate press conference, Deputy Minister Datuk Dr Loga Bala Mohan said NGOs involved in charity work in the city could apply for rebates for the assessment rates they are paying provided that they were registered with the Welfare Department.
“We will work out a system for this, (so that) even PPR (public housing scheme) residents who have purchased their units are entitled to the rebates as they are (considered) low-income earners,” he said after attending the Petronas CSR programme yesterday.
T. Kamaraj, a manager of the Selangor and Federal Territory Association for the Mentally Handicapped (SAMH) who was present at the event, expressed his concern that they might have to pay double assessment rates next year.
He said they owned a building and rented two others, adding that the increase in assessment rates would result in their landlords increasing the rent.
“Most of our funding comes from the public, so if there is an increase in assessment rates, our benefactors have to fork out more money and funds for our charity will reduce.”
Meanwhile, several Pakatan Rakyat MPs said at a press conference at the Parliament lobby that they would organise a gathering at 11am on Dec 16 where city residents affected by the assessment rate increase can submit their objection letters.
Batu MP Tian Chua said they had invited Barisan Nasional MPs to join the event and added that the date was chosen because the following day would be the deadline for the submission of objection letters.
Wangsa Maju MP Datuk Dr Tan Kee Kwong said they expected at least 200,000 letters to be given to DBKL that day.
Seputeh MP Teresa Kok said she hoped that the mass objection would be a form of political pressure on Putrajaya to come out with an acceptable solution which would not burden the people.