Malaysia Property News Today

KLSE Announcment: BOLTON BERHAD

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 12:47:00 +0000

DISPOSAL BY NOBLE ACCORD SDN. BHD. ("NASB"), A WHOLLY OWNED SUBSIDIARY OF BOLTON, OF ALL THAT PARCEL OF FREEHOLD LAND HELD UNDER H. S. (D) 80171, PT NO. 68, SECTION 69, BANDAR KUALA LUMPUR, DAERAH WILAYAH PERSEKUTUAN, TOGETHER WITH AN EXISTING BUILDING KNOWN AS "HOTEL MIDAH" ERECTED THEREON, FOR A TOTAL CASH CONSIDERATION OF RM26.0 MILLION ("HOTEL DISPOSAL")- DISPOSAL BY BOLTON OF ITS 100% EQUITY INTEREST IN NASB FOR A TOTAL NOMINAL CASH CONSIDERATION OF RM1,000 ("NASB DISPOSAL")(COLLECTIVELY "THE DISPOSALS")

(KLSE 31-3-2008)

KLSE Announcement:HUA YANG BERHAD

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 12:45:00 +0000

- Acquisition of a piece of vacant land by Grandeur Park Sdn Bhd, a wholly owned subsidiary of HYB for a cash consideration of RM7,000,000.00 only (“Land Transaction”)

The Board of Directors of HYB is pleased to announce that its wholly owned subsidiary company, i.e. Grandeur Park Sdn Bhd (Company No. 201863-A) (“GPSB”) has on 28 March 2008 entered into a Sale and Purchase Agreement (“SPA”) with Saratogoa Sdn. Bhd. (Company No. 52341-P) (“SSB”) (Receiver Appointed) (In Liquidation) to acquire a piece of vacant land held under title bearing PTD 119789, HSD 261477, Mukim Plentong, District of Johor Bahru, State of Johor (“the said Land”) for a total cash consideration of RM7,000,000.00 only. GPSB has successfully tendered for the said Land on an “as is where is” basis, as a result of a tender exercise under taken by SSB.

(KLSE 31-3-2008)

MAH SING GROUP BERHAD

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 12:41:00 +0000

A) PROPOSED EN BLOC SALE OF 263,435 SQUARE FEET IN THE EAST WING OF THE ICON@TUN RAZAK, FOR A TOTAL CASH CONSIDERATION OF RM237,091,500 ("PROPOSED JTR EN BLOC SALE"); AND(B) PROPOSED EN BLOC SALE OF 380,510 SQUARE FEET IN THE ICON@MONT KIARA, FOR A TOTAL CASH CONSIDERATION OF RM285,382,500 ("PROPOSED MTK EN BLOC SALE").(COLLECTIVELY REFERRED TO AS "PROPOSED EN BLOC SALES")

(KLSE 31-3-2008)

KLSE Announcement: Mah Sing Group Berhad

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 12:37:00 +0000

We refer to our announcements on 29 January 2007 and 27 April 2007 in relation to the Proposed Development.The Proposed Development is conditional, inter alia, upon the fulfillment of the following Conditions Precedent ("CP"):i) That within six (6) months from the date of the development agreement (“DA”) in respect of the Proposed Development (or such extension as may be agreed in writing by SPD), FBSB shall procure the issuance of Form 5A and SPD agrees to pay all payments in relation to the Form 5A on behalf of FBSB to the appropriate authorities within three (3) months from the issuance of Form 5A;ii) That within three (3) months from the date of full payments to the appropriate authorities pursuant to the Form 5A (or such extension as may be agreed in writing by SPD), the issue of land title in the name of FBSB for a lease term of 99 years and free from all encumbrances and FBSB shall deposit the land title on issue thereof with SPD; andiii) That within six (6) months from the date of issue of land title and the deposit of the same with SPD (or such extension as may be agreed in writing by SPD), the procurement of the written consent of the Foreign Investment Committee (“FIC Approval”) on the Proposed Development.Save for the FIC Approval which was received on 27 April 2007, the other CPs which were critical to the Proposed Development have not been fulfilled within the six (6) months period from the date of the DA and the subsequent extension of time granted by SPD to FBSB. The Board of Directors of Mah Sing (“Board”), after due deliberation and consideration, is of the opinion that the prolonged delay on the fulfillment of CPs is deemed not to be in the interest of SPD to proceed further with the Proposed Development. Hence, the Board wishes to announce that SPD has, on 28 March 2008, exercised its rights under the DA to call for a termination of the DA (“Termination”).Pursuant to the Termination, the deposit of RM420,000 paid by SPD upon execution of the DA will be refunded by FBSB to SPD in accordance to the terms of the DA. The Termination is not expected to materially affect the future earnings of the Group.This announcement is dated 31 March 2008.

(KLSE 31-3-2008)

MEDA INC. BERHAD

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 12:11:00 +0000

PROPOSED SALE BY MEDA DEVELOPMENT SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF MEDA INC BERHAD, OF ALL PROPERTY UNITS OWNED BY MEDA DEVELOPMENT SDN BHD LOCATED WITHIN THE COMMERCIAL MIXED DEVELOPMENT BUILDINGS KNOWN AS “THE SUMMIT SUBANG USJ” COMPRISING, INTER-ALIA, A RETAIL PODIUM, AN OFFICE TOWER BLOCK, A HOTEL BUILDING AND CAR PARKING BAYS TO MAYBAN TRUSTEES BERHAD, BEING THE TRUSTEE FOR AmFIRST REAL ESTATE INVESTMENT TRUST FOR AN AGGREGATE CASH CONSIDERATION OF RM260.0 MILLION ("PROPOSED SALE")
Contents
:
We refer to the announcements dated 1 August 2007, 29 August 2007, 31 October 2007, 30 November 2007, 31 December 2007 and 13 March 2008 made by Kenanga Investment Bank Berhad (“KIBB”), on behalf of the Board of Directors of Meda (“Board”), in relation to the Proposed Sale (“Announcements”). Unless otherwise stated, terms used in this announcement shall carry the same meaning as defined in the Announcements.KIBB, on behalf of the Board, is pleased to announce that the Proposed Sale was completed on 31 March 2008 in accordance with the terms of the Revised Agreement. This announcement is dated 31 March 2008.

(KLSE 31-3-2008)

LION DIVERSIFIED HOLDINGS BERHAD

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 12:08:00 +0000

Proposed acquisition of 4 pieces of land measuring a total of 200,610 square metres by Changshu Lion Enterprise Co., Ltd located on Parcel No. 6A, 6B, 8A and 8B, Yin Feng Road, Changshu Southeast Economic Development Zone, Changshu City, Jiangsu Province, the People’s Republic of China (“Changshu Lands”) for a total cash consideration of approximately Rmb330 million (equivalent to approximately RM151.68 million)
Contents
:
The Board of Directors of LDHB wishes to announce that Changshu Lion Enterprise Co., Ltd, a wholly-owned subsidiary of Well Morning Limited, which in turn is a wholly-owned subsidiary of LDHB had entered into the following sale and purchase agreements upon the successful tender of the Changshu Lands: (i) a conditional sale and purchase agreement dated 4 January 2008 with the Land Department of Changshu City, Jiangsu Province for the acquisition of 1 piece of land (Parcel No. 6A) for a cash consideration of approximately Rmb157.59 million (equivalent to approximately RM72.49 million); and (ii) the respective conditional sale and purchase agreements all dated 28 March 2008 with the Land Department of Changshu City, Jiangsu Province for the acquisition of 3 pieces of land (Parcel No. 6B, 8A and 8B) for a total cash consideration of approximately Rmb172.13 million (equivalent to approximately RM79.18 million).

(KLSE 31-3-2008)

LION DIVERSIFIED HOLDINGS BERHAD

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 12:08:00 +0000

(KLSE 31-3-2008)

LION DIVERSIFIED HOLDINGS BERHAD

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 12:08:00 +0000

(KLSE 31-3-2008)

KLSE Announcment: AXIS REAL ESTATE INVESTMENT TRUST

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 11:38:00 +0000

AXIS REAL ESTATE INVESTMENT TRUST ("Axis-REIT" or "the Fund") - PROPOSED ACQUISITION OF A FREEHOLD INDUSTRIAL FACTORY ON PART OF LOT NO. 211 MUKIM OF SENAI-KULAI, JOHOR BAHRU FROM WELL-BUILT HOLDINGS SDN BHD FOR RM14.0 MILLION
Contents
:
PROPOSED ACQUISITION BY Axis-REIT OF A FREEHOLD INDUSTRIAL FACTORY WITH ANCILLARY BUILDINGS WITH AN APPROXIMATE BUILT-UP AREA OF 11,657.10 SQ. METRES ERECTED ON PART OF LOT NO. 211 MUKIM OF SENAI-KULAI, DISTRICT OF JOHOR BAHRU MEASURING APPROXIMATELY 5.335 ACRES (2.159 HECTARES), HELD UNDER MASTER TITLE GM 1171 FOR LOT 211, IN TEMPAT SEELONG, MUKIM SENAI-KULAI DAERAH KULAI STATE OF JOHOR (THE “PROPERTY”) FROM WELL-BUILT HOLDINGS SDN BHD (NO. 366020-V) FOR A TOTAL LUMP SUM CASH CONSIDERATION OF RM 14.0 MILLION (“PROPOSED ACQUISITION OF THE PROPERTY”)

(KLSE 1-4-2008)

KLSE Announcement; UOA REAL ESTATE INVESTMENT TRUST

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 11:36:00 +0000

ACQUISITION BY OSK TRUSTEES BERHAD (“TRUSTEE”) (ON BEHALF OF UOA REIT) FROM MAGNA TIARA DEVELOPMENT SDN BHD (“MAGNA TIARA” OR THE “VENDOR”) OF A FREEHOLD LAND HELD UNDER PT 7525 H.S.(D) 112996, BANDAR KUALA LUMPUR, DAERAH KUALA LUMPUR, WILAYAH PERSEKUTUAN MEASURING APPROXIMATELY 3,883 SQUARE METERS TOGETHER WITH A 5 STOREY OFFICE BUILDING WITH 2 MEZZANINE FLOORS AND 3 LEVELS OF BASEMENT CAR PARK KNOWN AS “WISMA UOA PANTAI” AND LOCATED AT NO.11, JALAN PANTAI JAYA, 59200 KUALA LUMPUR (“UOA PANTAI”) (“ACQUISITION”)
Contents
:
Further to the announcements dated 6 November 2007 and 16 January 2008, UOA Asset Management Sdn Bhd, the management company of UOA REIT wishes to announce that the Acquisition has been completed.All conditions precedent as contained in the Sale and Purchase Agreement has been fulfilled. This announcement is dated 2 April 2008.

KLSE Announcement: SELANGOR DREDGING BERHAD

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 11:35:00 +0000

Proposed acquisition of three (3) parcels of land in Bandar Batu Feringgi, Daerah Timor Laut, Pulau Pinang for a total cash consideration of RM24,567,960.00 by Crescent Consortium Sdn Bhd (“CCSB”), a wholly-owned subsidiary of SDB Properties Sdn Bhd, which in turn is a wholly-owned subsidiary of SDB
Contents
:
We refer to the announcement made on 18 January 2008 and would like to announce that the Foreign Investment Committee (“FIC”) has approved the Proposed Acquisition, subject to the condition that, CCSB is required to increase its paid-up capital to at least RM100,000.00 within six (6) months from the date of the FIC’s approval. This announcement is dated 2 April 2008.

(KLSE 2-4-2008)

KLSE Announcement: Mah Sing

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 11:32:00 +0000

Proposed acquisition of eight (8) pieces of contiguous Prime Freehold Land (“Land”) in Johor Bahru measuring approximately 60.43 acres through Mah Sing’s wholly-owned subsidiary company, Mah Sing Properties Sdn Bhd for a total cash consideration of RM21,059,853.05 or approximately RM8.00 per square foot ("Proposed Acquisition")
Contents
:
Further to our announcements on 3 January 2008 and 28 February 2008, the Board of Directors of Mah Sing wishes to announce that save for one (1) piece of Land held under GM 383, Lot 1910, Tempat Kangkar Pulai, Mukim Senai-Kulai, Negeri Johor (“Outstanding Transaction”), the sale and purchase transactions for all the other seven (7) pieces of Land pursuant to the Proposed Acquisition have been duly completed.The Outstanding Transaction shall be completed upon the delivery of vacant possession by the vendor at a later stage.This announcement is dated 3 April 2008.

(KLSE 3-4-2008)

Will Penang’s property market continue to boom?

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 10:44:00 +0000

A couple of weeks ago, the Penang state government created a stir when it said it would review the billion-ringgit Gurney Paragon project if there were “justifiable grounds”.Chief Minister Lim Guan Eng said the state government would get views from all quarters and welcomes any objection.“We will revisit the projects approved by the previous administration and if necessary, review them if these projects are adversely affecting people’s lives,” says Lim.Lim was responding to calls by the Penang Heritage Trust (PHT) and Bar Council Legal Aid Centre to review and hold an open hearing on the project.Gurney Paragon is a mixed integrated development by Hunza Properties (Penang) Sdn Bhd comprising a mall, two blocks of high-end condominiums and a heritage building spread over 4ha of freehold land on Gurney Drive fronting the sea.The land was formerly occupied by the Uplands International School.The company bought it in 2004 for RM97mil.For several years, Penang’s property market has drawn buyers from far and wide. Be it a holiday home for Malaysians or a retirement home for foreigners under Malaysia, My Second Home (MM2H), the island’s properties have exchanged hands at a premium compared with Kuala Lumpur’s prices.Read more

(The Star 5-4-2008)

New Development: Bindev to unveil final phase of Bukit Istana

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 10:40:00 +0000

KUANTAN: Bindev Sdn Bhd is offering properties worth about RM70mil under the final phase of its upmarket and low-density residential project Bukit Istana.The units would have a land size of 4,000 sq ft and built-up areas of 3,000 sq ft, said branch manager Lim Yoke Kim.“The third and final phase will comprise 148 double-storey semi-detached units and four bungalows. The units are priced from RM480,000,” he said.The last phase boasts features such as high ceiling, high-panel glass windows to allow more natural sunlight into the house and three-phase electrical wiring.A subsidiary of PJ Development Holdings Bhd (PJD), Bindev commenced construction of Bukit Istana during the 1997 financial crisis and has completed 150 bungalows, 226 double-storey semi-detached units and 72 single-storey units, of which about 92% are sold.
The project covers 54.4ha and has a gross development value of about RM250mil. Read more

(The Star 5-4-2008)

Asia Real Estate (Part IV)

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 07:14:00 +0000

Real Estate Trends

The real estate industry has seen rapid growth across Asia post-crisis, with varying stages of development within each country. Nevertheless, we have identified several similar trends/patterns, unique throughout the region, as follows:
> The real estate sector in Asia is driven mainly by rapid and dynamic growth in the offices and high-end residential segments.
> Prices for residential and non-residential properties in many major cities and smaller cities continued to rise, despite higher interest rates across the region.
> Asia’s REITs markets continued to grow with many companies converting their assets into REITs. The total number of Asian REITs at the end of 2007 stood at 86 with a total market capitalisation of US$74.8bil.
> The overheating property markets in many countries across the region led governments to enforce stricter rules to cool down the situation.
The Chinese government further tightened measures by increasing taxes, requiring developers to build more low-cost houses and tightening rules on property purchase by foreigners. South Korea and India also tightened rules in relation to borrowing.
> In most markets (Singapore, Hong Kong, Malaysia, China, India) demand for office space is highest followed by hotel/resorts, retail, industrial/distribution, homebuilding and apartments residential.
> The strong capital inflow into Asia real estate particularly China leads to the problem of demand exceeding supply. Although the Asia market has unparalleled potential for growth, in most cases, it lacks depth. The lack of a solid investment base to absorb current levels of incoming capital lead to the reflection of the current scenario, therefore increasing the risk of overheating.

Looming subprime issue

We expect the US subprime issue to continue to rear its ugly head well into the year as write downs continue.However, we expect the impact on Asian markets to be minimal (safe the export sector) given that the region’s financial institutions have relatively limited direct exposures to US subprime mortgages.In the region, China is the largest overseas holder of US mortgage-backed securities, at around US$260bil, which is held mostly through its international reserve holdings and through holdings of commercial banks.We take the view that Asia remains relatively insulated from the US subprime issue for the following reasons:
> Asia’s huge pool of international reserves at US$3tril (including Japan and China)
> Asian banks’ exposure to subprime debt instruments is minimal and manageable
> Asian corporate sector leverage is very low
> The banking system has been strengthened and is strongly capitalised
> The financial sector’s direct exposure to equity markets also appears relatively limited
> Asian central banks have taken steps to improve the regulation of high-leveraged activities
> Asian economies have become more resilient to shocks to their capital accounts as external vulnerabilities have been reduced
> Companies depend less on the more risky capital inflows
As such, we expect the contagion from the US subprime crisis to be limited to the capital markets. An indirect effect of the subprime crisis on the region is that it has increased the cost of raising capital for banks, corporate and investment bodies.New bond issues will have to be priced slightly higher to reflect rising credit market volatility and the anticipated temporary decline in investors’ demand for these products both globally and in the region.Liquidity on capital markets in Asia remains vast although a re-rating of risk will see some liquidity being sapped out of equities/real estate in the medium term.Credit market spreads that reached record low levels pre-subprime crisis are likely to widen and remain high into 1Q08, both in the region and for emerging markets as a whole. In the medium to longer-term, as deals get bigger in size and more complex, access to cheap international capital is becoming more important.The crisis will continue to affect the region indirectly in that it has heightened uncertainty and resulted in a reassessment of risk, as reflected in the periodic declines seen in stock market in 2007.We expect frequent and large reassessments of risk and high volatility in asset prices to figure largely in Asian economies for the most part of 2008.Inflation poses a key challenge for the region, which has enjoyed robust expansion in the last few years amidst muted price pressures. Oil prices, which are expected to remain firm in 2008, have raised the spectre of global inflation trending even higher this year.This poses a key threat to the region’s inflation outlook. We expect oil to trend higher this year to average at US$80 per barrel, vs US$72.4 per barrel in 2007.A different set of rules will apply moving forward as policy makers strive to balance the need for tighter monetary conditions to rein in rising costs even as growth weakens.

(The Star 5-4-2008)

Asia Real Estate (Part III)

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 07:12:00 +0000

We expect interest rate cuts in the US to push prices up further in the residential segment. In Japan, land prices advanced 0.4% y-o-y in 2007, an indication that the Japanese residential property market is recovering from its 15-year price slump.Moving forward, we expect the Asia’s residential market to sustain growth, albeit in the long term, underpinned by the following factors:
> Strong economic growth in most markets in Asia will support the strong performance in the residential segments.
> Rising income per capita will enhance purchasing power and therefore boost consumer spending. High economic growth, improved employment levels and positive wealth effects arising from equities in most parts of Asia Pacific have led to higher disposable incomes.
Average per capita income for the region rose to US$14,371 in 2006 from US$12,906 in 2004. Per capita income is expected to average US$15,217 in 2007 and US$15,886 in 2008 that in turn, will boost demand for residential properties.
> In most Asian markets (China, India, Singapore, Malaysia) the high-end residential property market has witnessed increased demand spurred by the influx of expatriates and skilled professionals, the region's increasing attractiveness as a second home (retirement) and higher rental yields.
> The demographic profile of Asia is relatively young. Asia’s young population (aged 15 to 59) continues to increase, creating strong demand for housing for ownership occupation and rental increases. India’s population is expected to increase from 1.1 billion to almost 1.5 billion by 2025. In 2006, the working age group of those aged between 15-64 years stood at 64.3% and expects to increase moving forward.The Asian real estate market capitalisation stands at approximately US$4.9tril, mainly dominated by Japan followed by China and the rest of Asia. We expect this ratio to alter moving forward with strong growth in Asian markets. Apart from Japan, real estate activities are focused in Singapore and China.A common practice that is picking up in the region is the number of sale and leaseback transactions particularly in Singapore and Japan. We expect this trend to spread across the region over the medium term.

(The Star 5-4-2008)

Asia Real Estate (Part II)

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 07:10:00 +0000

Rent and value
Capital flows to the Asian region have increased tremendously since 2005, mainly into major economic sectors such as manufacturing, services and oil and gas, and opportunities remain abundant in the property sector.The US is among the largest sources of investment inflows into the region; nevertheless, the largest increases in the availability of capital for real estate are expected to come from the Middle East, China and India. The main sources of capital for property investments in 2007 and 2008 remain private equity investment funds, institutional investors and real estate investment trusts (REITs).Since 2006, the Asia region has experienced strong demand in the residential sector despite high interest rates that led to higher house prices. In mainland China and Hong Kong, strong economic growth continues to support the residential market. Beijing and Shanghai continued to attract high levels of foreign investment that entailed a higher number of expatriate professionals which led to higher demand for luxury residential property.Residential real estate prices have shot up particularly in Singapore. Singapore’s residential price change in 4Q07 stood at 31.4%. Concurrently, Malaysia witnessed stable prices and rentals for 1H07. Strong demand for high-end residential units in prime cities such as Hong Kong, Kuala Lumpur and Singapore has escalated with the launch of new high-end residential units throughout 2007.The most expensive residential segments in Asia continue to be Hong Kong, Tokyo and Singapore at over US$10,000 per sq m.In Hong Kong, the real estate scene has not been very different from other countries in the region with house prices trending higher at 8.78% y-o-y in 2Q07 compared to 0.65% negative growth in 2Q06. The real estate market has been gradually recovering since the country’s downturn in the property market last year, following the housing slump in the US.

(The Star 5-4-2008)

Navigating the storm: Asia’s real estate (Part 1)

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 07:04:00 +0000

THE confluence of economic uncertainty brought on by the deepening subprime crisis has posed a real risk of a systemic financial event and a prolonged global economic slowdown. This, coupled with another round of de-leveraging in the structured credit market has led to further pressure and deterioration in real estate prices, predominantly in the US and Europe. Given that the pendulum swung as far as it could in the direction of reckless mortgage lending, it will now swing back towards the quaint notion of buyers being lent only the amount they can reasonably be expected to pay back.Whilst the rout has largely been confined to markets outside Asia, we see considerable softening in real estate markets with high foreign participation and in certain high-end segments. Opportunistic investors are pulling back from Asian property given more scope for acquiring distressed assets in their home markets, and loans remain elusive in Japan and Singapore, one of their favourite markets.In Hong Kong, strong economic growth continues to support residential market. Hedge funds have stopped dabbling in property in the region, and although private equity players will continue to develop property in India and China, they are more likely to buy buildings cheaply in Western countries than in Asia.We expect values for US commercial real estate to fall by 23% in the next five years from their 2007 peak, causing losses of about US$1,600bil, including those on commercial mortgage backed securities.London office values have dropped 12% from a peak in the middle of last year, and will be under further pressure from forecasts of a 15% decline in rental values through 2009.In 2007, total direct investment in Asia jumped 27% to US$121bil – a sixth of the global total –with approximately half invested in Japan and Singapore.Real estate stock in Asia currently stands at US$9.5tril, growing on average by 6% - 7% p.a (except in China which grew by 15% p.a). China and India make up 50% and 12% of the total stock respectively while Japan constitutes 20% of the total.

The demand for real estate is dependent on the health of the economy, which in turn is affected by financial markets.In 2008, we expect prospects for Asia’s real estate to remain lukewarm, especially in traditional FDI led markets like Singapore. The global economy still faces major uncertainties as to how a further unravelling of the credit crisis will affect the availability of credit and asset pricing.The resilience of Asian economies and the real estate market will be truly tested in 2008. Buoyant domestic consumption is expected to help the region weather a substantial economic slowdown as weaker global demand impacts Asian exports.Overall, despite the risks inherent in the region, we believe opportunities remain in Asia’s real estate market, mainly in grade-A office space, driven by sound GDP growth (projected at 8% y-o-y) underpinned by sustained private consumption, higher public and private investments; a re-rating of property as an asset class, sustained domestic demand and on-going infrastructure development.We remain bullish on India and Vietnam, with a cautious view on China, Malaysia and Singapore.

(The Star 5-4-2008)

Brisk sale of Plaza Damas 3

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 06:58:00 +0000

KUALA LUMPUR: Malaysia Land Properties Sdn Bhd (Mayland) registered sales of about RM160mil, or a take-up rate of 95%, for its 72 shop offices in Plaza Damas 3 project in Sri Hartamas.The one-to three-storey shop offices were soft launched last week.Bulk buyers Maximerge Capital Sdn Bhd and Koperasi Pendidikan Islam Malaysia Bhd took up 18 units worth RM45mil and eight units worth RM20mil respectively.Marketing manager Michelle Won said other purchasers were from the group's existing clientele. Read more

(The Star 4-4-2008)

Real Estate Cycle (Part II)

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 06:55:00 +0000

But the slower take-up rate for luxury properties should not be viewed as an across-the-board phenomenon as foreign individual buyers, experts said, were still scouting for local assets. A downside in demand for larger transactions like en bloc commercial property acquisitions by overseas institutional buyers is, however, possible as investors adopt a wait-and-see attitude to safeguard their portfolios. “Foreign direct investment is going to be sustained but definitely there will be a wait-and-see attitude in certain industries especially on the bigger ticket purchase items like en-bloc sales. “Foreign individual investors are still coming in,” real estate consultancy Zerin Properties chief executive officer Previndran Singhe told The Edge on the sidelines of a forum discussing the impact of the recent national elections on the country’s real estate sector. The forum was organised by the Malaysian chapter of the International Real Estate Federation or better known as Fiabci. Speaking at the event earlier, Asian Strategy & Leadership Institute chief executive officer and director Datuk Dr Michael Yeoh said foreign investors were still deliberating on the Malaysia’s investment climate following the unprecedented outcome of the recent elections. “We cannot exclude any possibility,” Yeoh said.

(The Edge 4-4-2008)

Real Estate Cycle (Part I)

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 06:44:00 +0000

KUALA LUMPUR: The country’s real estate cycle is expected to peak in late 2008 as the pace of rental increases begin to lag price increases, particularly in the high-end property segment in the vicinity of Kuala Lumpur City Centre. OSK Investment Bank said compression of rental yields from high-end condominiums could prompt existing owners to lock in capital gains in anticipation of more new luxury units hitting the market at a time when the real estate cycle was peaking. Its latest property market outlook report indicated that additional supply of condominiums in KLCC would make it more difficult for investors to rent out their residential units. “If most buyers are mere speculators and investors, risk of a potential bubble burst in KLCC condos will be rather high by late 2008,” OSK said, adding that the current upward trend in the local real estate cycle may begin to taper off in 2009 when more properties hit the market. It was reported in February that prices of upmarket condominiums may reach a new high of RM3,000 a sq ft this year as new products hit a niche market driven mainly by foreign demand for local luxury units which are deemed one of the cheapest in the region. According to property consultancy Knight, Frank, Ooi and Zaharin Sdn Bhd, residential properties in KLCC had fetched between RM1,300 a sq ft and RM2,000 a sq ft last year (2007) while rentals ranged between RM5.50 a sq ft and RM6.50 a sq ft. The rising prices of these top notch homes, essentially, translates into lower rental yields as prices advance at a quicker pace than rental hikes. Meanwhile, foreign demand for high-end real estate here may dip on investors’ cautious sentiments surrounding the country’s new political landscape following the recent general elections.

(The Edge 4-4-2008)

Dijaya's Tana buys more sunrise shares

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 06:42:00 +0000

TAN Sri Danny Tan Chee Sing, a major shareholder of property developer Dijaya Corp Bhd, has been buying more shares of Sunrise Bhd.Tan bought another eight million shares on March 26, bringing his total stake to 6.91 per cent of rival Sunrise.Tan's interest in Sunrise is via Phoenixflex Sdn Bhd.Tan emerged a substantial shareholder in Sunrise in October 2004 and has since been accumulating shares. Yesterday, Sunrise's shares fell three sen to close at RM2.07.

(New Straits Times 4-2-2008)

UAC counts on new system to push sales

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 06:32:00 +0000

KUALA LUMPUR: Cellulose fibre cement board manufacturer UAC Bhd, whose earnings has been slightly affected by high raw material costs, is focusing on new and innovative products and improving productivity to mitigate rising costs.Chief executive officer Koo Hock Fee said UAC would focus on its UCO SolidWall system, which would reduce to only one-third the time taken to put up a wall compared with a brick and plaster wall.The product would translate into cost savings because of the shorter time involved, he said, adding that the company would hold a series of seminars nationwide this month to market it to property developers.Speaking after the company AGM yesterday, Koo said 2007 had been challenging as the prices of raw materials such as pulp and cement had risen 10% and 12% respectively since December 2006, amid weak domestic demand. Read more

(The Star 3-4-2008)

High end properties still attracting foreigners

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 06:31:00 +0000

MALAYSIA'S property sector will continue to attract foreign investors, especially the high-end segment, despite the recent changes in the local political landscape, Asian Strategy & Leadership Institute (ASLI) chief executive officer Datuk Dr Michael Yeoh said yesterday.However, the foreign investors are bound to adopt a “wait and see” attitude for now until the political scenario is much more clearer, he said.The wait-and-see attitude is more likely to affect the high end properties that depend on foreign purchases like those in the KLCC areas or those above RM2,000 per sq ft.Presenting a talk in Kuala Lumpur yesterday on the “Impact of The Recent General Election on the Real Estate Industry”, organised by the International Real Estate Federation Malaysia (FIABCI-Malaysia), Yeoh said a more clearer political picture was expected after the UMNO General Assembly in December and this will result in a relatively more stable property market.

(Bernama 2-4-2008)

MPHB makes property thrust

noreply@blogger.com (Malaysia Property Research Inc) — Sun, 06 Apr 2008 06:28:00 +0000

MULTI-PURPOSE Holdings Bhd (MPHB) will use cash from the privatisation of its gaming subsidiary Magnum Corp Bhd to venture into property development in a bigger way, its top official said.The move will provide the group with a new earnings stream as it seeks long-term growth, managing director Datuk Surin Upatkoon (pic) said.He said MPHB, which stands to get up to RM731 million from the privatisation exercise, already has two hectares of prime land along Jalan Sultan Ismail in Kuala Lumpur on which it is planning a commercial development.The group expects to obtain the planning approval for it by year-end. It also wants to increase its landbank in Malaysia and has the first right of refusal to buy land owned by Magnum."It's still premature to say how much of the proceeds we'll use for property development, (but) it'll be one of our core businesses and will start contributing to the group from 2009 onwards," Surin told reporters after shareholders gave their approval for the privatisation yesterday.The Magnum buyout, which MPHB is undertaking with global private equity firm CVC Capital Partners Asia III Ltd, is expected to be completed by June this year, he said.MPHB is now on the brink of a growth phase after successfully cutting debt to some RM200 million today from a peak of over RM2 billion about five to six years ago.

(New Straits Times 2-4-2008)