Govt may double minimum price of houses foreigners

prop99 — Tue, 10 Apr 2012 08:07:45 +0800

If this is implemented, I think it is good for own stayers but bad for investors? What impact it will have on the market, your opinion?

Report from Star Business today.

http://biz.thestar.com.my/news/story.asp?f...17&sec=business

RM1mil floor price?

KUALA LUMPUR: The Government is considering raising the minimum floor prices of houses foreigners are allowed to buy to RM1mil from the current RM500,000 in an effort to control the rise in property prices, sources said.

They said such a decision was “in the pipeline” and the implementation would be made by the economic planning unit (EPU) under the Prime Minister's Department currently headed by Minister Tan Sri Nor Mohamed Yakcop.

“From what I understand, these revised guidelines have been discussed at the ministerial level and should this be enforced, it will mean that foreigners will only be allowed to buy properties priced above RM1mil. For now, the base price is set at RM500,000 for foreigners. This base price is a bit low looking at present circumstances,” a government source who requested anonymity said.

“The current trend in the property market indicates that prices are still continuing to climb despite measures by Bank Negara to curb property prices from spiralling out of control. We need to act before it goes further out of hand,” the Putrajaya source added.

Another source said the revised guidelines would also consider a slightly lower base price threshold of RM800,000 for residential properties in selected economic corridors such as Johor's Iskandar Malaysia to ensure the development and success of these corridor hotspots.

“This base price will also be subject to reviews by the Government from time to time depending on the inflationary situation of the economy and to keep overall inflation in check,” the source said.

Deputy Finance Minister Datuk Donald Lim had recently told the press that the Government would take “strict measures” to avoid a US subprime mortgage financial crisis after average house prices jumped almost 7% in the fourth quarter of last year despite measures announced by Bank Negara to rein in property prices.

“The Government is worried about property prices causing a bubble and we don't want banks to overlend to the property sector,” Lim said.

Industry sources surveyed by StarBiz said foreigners that tend to buy properties in Malaysia were those from South Korea, Japan, China and Singapore.

“This move will give an advantage to locals, especially those in the middle-income category as locals will not need to compete with foreigners. I am not surprised by this move, but our agency has so far seen mostly people from China and Singapore buying properties above RM1mil anyway,” a KL-based licensed real estate negotiator who did not want to be named said.

“However, we may see fewer transactions from the Koreans and Japanese. Westerners such as those from the United States and Europe won't usually buy. They prefer to rent instead,” the real estate negotiator added.

Meanwhile, the implementation of the higher floor price is expected to have a minimal impact on the property market in Malaysia as official statistics show that only 2.4% (worth RM1.45bil) of transactions conducted in the residential sector last year were worth RM1mil and more.

The Finance Ministry's Valuation and Property Services Department Property Market Report 2011 released last week showed there were 269,789 residential property transactions worth RM61.83bil transacted last year, the highest recorded in the last five years.

“Both volume and value recorded double-digit growth of 18.9% and 22.1% respectively. The All House Price Index surged to 156.9 points in the fourth quarter (Q4) of 2011 against 147.2 points registered in Q4 2010,” the report said.

The report said that landed housing was on a “general upward trend” in Malaysia and also attributed the rise in property prices to the Sungai Buloh-Kajang My Rapid Transit project.

“Across the board, terraced houses in KL recorded increases of 8%-13%. Increased prices of landed houses on Penang island were apparent. The highest transacted price of two- and three-storey detached (houses) were at RM2.05mil and RM5.15mil respectively,” the report said.

Sunrise unveils RM1.3 billion project in

prop99 — Thu, 10 Nov 2011 12:17:49 +0800

KUALA LUMPUR: Sunrise Bhd, a wholly-owned unit of UEM Land Holdings Bhd, has unveiled plans for its new landmark project, Angkasa Raya, which has an estimated gross development value of RM1.3 billion and is poised to be the group’s new flagship development.

Situated at the intersection of Jalan Ampang and Jalan P Ramlee, directly across the Petronas Twin Towers, the building will be on the 1.59-acre site of the former Wisma Angkasa Raya, which was demolished in August 2011.

“There are obviously challenges in the world and the property market now but we believe that this building will not only be iconic in Malaysia but also the world over. Everywhere in the world, the primest of prime properties will always be sought after,” said Datuk Tong Kooi Ong, chairman of Sunrise at the unveiling of the building’s design yesterday.

Tong, who is also on the board of UEM Land, added that the development is scheduled to be launched in the fourth quarter of 2012. At a construction cost of more than half a billion ringgit, work will start early next year and the development is expected to complete in 2016.

Despite the global economic uncertainty, Tong is confident Angkasa Raya will perform well.

Standing at 268 metres with 65 floors, the development will integrate a Grade A premium office, a luxury hotel with over 200 five-star suites, over 280 high-end serviced residences, signature retail spaces and three sky levels.
“With the unobstructed view of the Petronas Twin Towers and the KL skyline, it offers a unique dinning experience.,” said Ong Chou Wen, general manager of projects, Sunrise.

Designed by renowned architect Ole Scheeren, founding principal of architecture firm Büro Ole Scheeren, the building comprises five distinct elements — three floating elevated tower blocks and two multi-level zones of open horizontal slabs.

The challenge, said Scheeren, was to design a building that is both respectful to and harmonious with the Petronas Twin Towers, and yet with a very different idea and qualities of architecture.

“The design of Angkasa Raya was inspired by Malaysia’s multicultural and diverse society. It proposes a new model of urban and cultural inclusiveness,” he said.

The offices, designed in alignment with sustainable architectural principles, are targeted at multinational companies, while the high-end serviced residences are sized from 500 to 2,000 sq ft.

The development is aiming for a Green Building Index certification. In line with its green practices, the tower facades are clad with modular aluminium sun-shading, geometrically optimised and carefully oriented to reduce solar heat gain.

KUALA LUMPUR: Sunrise Bhd, a wholly-owned unit of UEM Land Holdings Bhd, has unveiled plans for its new landmark project, Angkasa Raya, which has an estimated gross development value of RM1.3 billion and is poised to be the group’s new flagship development.

Situated at the intersection of Jalan Ampang and Jalan P Ramlee, directly across the Petronas Twin Towers, the building will be on the 1.59-acre site of the former Wisma Angkasa Raya, which was demolished in August 2011.

“There are obviously challenges in the world and the property market now but we believe that this building will not only be iconic in Malaysia but also the world over. Everywhere in the world, the primest of prime properties will always be sought after,” said Datuk Tong Kooi Ong, chairman of Sunrise at the unveiling of the building’s design yesterday.

Tong, who is also on the board of UEM Land, added that the development is scheduled to be launched in the fourth quarter of 2012. At a construction cost of more than half a billion ringgit, work will start early next year and the development is expected to complete in 2016.

Despite the global economic uncertainty, Tong is confident Angkasa Raya will perform well.

Standing at 268 metres with 65 floors, the development will integrate a Grade A premium office, a luxury hotel with over 200 five-star suites, over 280 high-end serviced residences, signature retail spaces and three sky levels.
(From left) Tong, UEM Land Holdings Bhd MD/CEO Datuk Wan Abdullah Wan Ibrahim, UEM Group MD/CEO Datuk Izzaddin Idris and Scheeren.

“With the unobstructed view of the Petronas Twin Towers and the KL skyline, it offers a unique dinning experience.,” said Ong Chou Wen, general manager of projects, Sunrise.

Designed by renowned architect Ole Scheeren, founding principal of architecture firm Büro Ole Scheeren, the building comprises five distinct elements — three floating elevated tower blocks and two multi-level zones of open horizontal slabs.

The challenge, said Scheeren, was to design a building that is both respectful to and harmonious with the Petronas Twin Towers, and yet with a very different idea and qualities of architecture.

“The design of Angkasa Raya was inspired by Malaysia’s multicultural and diverse society. It proposes a new model of urban and cultural inclusiveness,” he said.

The offices, designed in alignment with sustainable architectural principles, are targeted at multinational companies, while the high-end serviced residences are sized from 500 to 2,000 sq ft.

The development is aiming for a Green Building Index certification. In line with its green practices, the tower facades are clad with modular aluminium sun-shading, geometrically optimised and carefully oriented to reduce solar heat gain.

This article appeared in The Edge Financial Daily, November 9, 2011.

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Govt may double minimum price of houses foreigners

Sunrise unveils RM1.3 billion project in