Wednesday 27 March 2013

Kota Kinabalu property prices up and now match KL’s

27th March 2013


PETALING JAYA: Property prices in Kota Kinabalu (KK) have now matched those in Kuala Lumpur and Penang.
According to HwangDBS Vickers Research, there is strength seen in KK with new condo launches hitting RM600-RM900 per sq ft and some breaching the RM1,000 per sq ft mark.
The research house which recently conducted a site visit there noted that the peak pricing in the secondary market was RM1,400-RM1,800 per sq ft.
It said in a client note that demand was driven by strong monies made from the plantation sector despite softer crude palm oil prices, improving household income and to a certain extent non-locals.
“The value of property transactions in Sabah had more than doubled over eight years to a record RM4.4bil in 2011 (3% of Malaysia’s total).
“Transaction volume has also surpassed 10,000 per annum since 2008, with 2011 chalking an average transacted price of RM429,000 (about 34% higher than Malaysia’s average of RM319,000),” the research house added.
Other factors which have contributed to the increase include continued rising urbanisation as greater KK hosts 20% of Sabah’s total population of 3.1 million people.
HwangDBS also noted that despite the rise, rental yields were still “relatively attractive” at 4%-5% for terrace houses and 5%-6% for condos.
“Launches in greater KK also saw healthy take-ups, for example the Lido Four Seasons Residences in Penampang (leasehold; 90% take-up; average selling prices (ASP): RM360per sq ft), Taman Rimba phase 2 terrace houses in Bandar Sierra, Menggatal (56% at RM400,000 per unit), and Loft C at KK Times Square phase 2 in town (50% with ASP at RM900 per sq ft),” it said.
The research firm also noted that there was a new trend where condos were becoming more popular with their variety of facilities and because they were more affordable than landed properties which had appreciated significantly in the secondary market.


http://www.starproperty.my/index.php/property-news/kota-kinabalu-property-prices-up-and-now-match-kls/




Thursday 14 March 2013

Disconnect in price vs yield

March 13, 2013
By DAVID TAN


THE rental yield for residential and commercial properties in Penang is expected to decline this year, as property prices are expected to rise by another 7% this year.
Raine & Horne Malaysia director Michael Geh says the problem is that rents and property prices have been increasing disproportionately over the past three years, which influences yield returns.
To calculate the yield per year, rent per month is multiplied by 12 months and divided by the market value of a property.
“In 2010, for example, the rent for a 856sq ft condominium in a prime area like Gurney Drive was around RM1,800 per month, while the market value was RM450,000.
“This would result in the yield per year of 4.8% in 2010.
“Today the rental has increased about 22% to RM2,200, while the market value has increased by about 44% to RM650,000 from RM450,000.
“The yield currently is 4.06%, registering a drop of 15.42%,” he said.
For heritage properties in a prime area of George Town like Muntri Street, the yield per year is currently 2.4%, compared to 2.67% in 2010.
“The rent in 2010 was RM2,000 and the market value of the property RM900,000, generating a yield of approximately 2.67%.
“At present, the rent is RM2,800, while the market value is around RM1.4mil, resulting in a yield of 2.4%.
“We expect property prices to rise about 5% to 7% this year, while rents should increase slightly, causing rental yields to plunge further, as it never keeps pace with rising property prices,” Geh said.
For office properties with built-up areas of 700sq ft to 3,000sq ft, the drop in yield has been slight, as their increase in market value has not been that rapid.
“In 2010, the rent for office properties was around RM2.20 to RM2.90 per sq ft, while the market value then of RM250 per sq ft to RM350 per sq ft generated yield of 6% to 6.5%.
“At present, the rents are still more or less the same as in 2010, while the market value is now RM300 per sq ft to RM450 per sq ft, generating yield per year of 5% to 6%,” Henry Butcher Malaysia (Penang) vice-president Shawn Ong said.
Ong said the market value of modern office properties had increased because of the preference to buy them rather than to rent, because of the attractive selling prices of such properties.
“The market value has also risen due to the limited supply of modern office properties,” he said.
Ong said about 70% of the office space on the island was currently occupied.
“The rents for modern office space will remain stable this year while the rents for older office buildings will decline further to attract new tenants as they are suffering from poor occupancy,” Ong said.
On actual property prices for residential properties in the secondary market, Ong said the transacted prices are usually about 30% more than the initial price tag of the property.

“This means a property bought originally for RM500,000 is likely to be sold for around 30% higher than the original price.
“The asking price is usually around 40% to 50% more than the original price,” Ong added.
Lim Chien Aun, proprietor of registered and chartered valuer C.A. Lim & Co, said rental returns on the island are unattractive because most investors buy properties in Penang for capital appreciation and not for rental returns.
“In other words, they buy for speculative purposes.
“The fact that rents in Penang are not rising as fast as property prices reflect also on the income levels of Penangites.
“The poor demand in Penang for rental properties also explains why rents are unattractive,” he said.
For retail properties, Lim said, generally, the monthly rent in prime shopping malls on the island starts from RM20 per sq ft for retail lots on the ground floor and RM10 per sq ft for the first floor.
“There are instances of shopping malls that have leased out their retail lots on the ground floor for monthly rent of RM35 per sq ft and RM30 per sq ft for the first floor.
“This is normally for a contractual rental period of three years with the option to rent another for three years under more or less the same terms and conditions.
“Every year the rent increases by about 5%,” he said.
Meanwhile Henry Butcher Retail managing director Tan Hai Hsin said, similar to Klang Valley and Johor Bahru, Penang has been facing an oversupply of retail properties for many years.
“Similar to these two cities, the supply situation for retail space is extreme. Popular shopping centres remain popular with car park full on weekends.
“On the other hand, poorly occupied shopping centres continue to suffer due to poor occupancy and shopper traffic.
“The situation has not worsened, because there has been no major retail supply entering the Penang market in the last few years,” Tan said, adding that later this year, the Gurney Paragon shopping mall should be opening up.
“Over the next two to four years, several shopping malls should be opening in Penang.
“These include the AEON Mall in Bayan Baru, Penang Times Square Phase 3, the shopping mall by IJM Land planned next to the Penang Bridge, the shopping mall at Southbay Plaza in Batu Maung, The Landmark in Tanjung Tokong, and a 1,000,000 sq ft mega mall in Prai by the Belleview Group,” he said.
According to Tan, the retail market in Penang is already very competitive and rather saturated, .
“New mall developments near the existing bridge and the new bridge will offer more potential as they can draw shoppers from the mainland as well as residents from northern region of Peninsular Malaysia,” Tan added.
Meanwhile Penang Times Square general manager C.C. Yeap said the rents for the shopping mall increased slightly over 2012.
“We are 71% occupied and progressing well. The daily traffic for the mall registered at 6,528 for 2012,” he said.


http://www.starproperty.my/index.php/property-news/disconnect-in-price-vs-yield/


Wednesday 13 March 2013

Strong appetite for foreign properties

Wednesday, 13 March 2013


Malaysia's high net worth individuals (HNWIs), those with US$30 million (RM93 million) or more in net assets, are expected to continue investing in properties abroad over the next decade.

London, Sydney and Melbourne will remain the favourite investment destinations for this group, which is growing in number despite the economic headwinds last year, says global property consultant Knight Frank LLP.
It also expects the number of Malaysian HNWIs to increase by 51 per cent to 1,294 over the next 10 years.
If traditionally they were more inclined to buy residential properties, the focus is now shifting to commercial properties for better yields and capital growth, the consultant said.
Knight Frank head of research for Asia Pacific Nicholas Holt said while the Kuala Lumpur market had been fairly subdued last year with only 1.0 per cent growth in prime values, the Malaysian HNWIs still have a strong appetite for real estate investments and are looking abroad for opportunities.
Knight Frank, which was founded in London in 1896, released its Wealth Creation Report here yesterday.
Locally, the company partnered with CIMB Preferred to conduct the Knight Frank's 2013 Attitude Survey. Among others, the survey revealed that the most popular investment portfolio among CIMB's clients last year was properties, followed by cash and equities.
Knight Frank Malaysia managing director Sarkunan Subramaniam said Malaysians' active investment in properties in London and Australia is mainly driven by their familiarity with these places, either having been educated there or their children are studying in the respective cities.
"Last year alone, Malaysians represented five per cent of foreign property purchasers in London and we can expect this to continue in the years to come," he said in a panel discussion, chaired by Holt.
He said London is the top choice because of its currency, which is at its lowest and investors are anticipating the pound sterling to appreciate in the near future.
Sarkunan said the trend among Malaysian HNWIs now is buying into commercial properties as these have better yields and low risks.
CIMB Investment head of research Terence Wong said Malaysian HNWIs have no hesitation in investing in London properties that are being developed by trusted Malaysian companies.
"Like the recent SP Setia Bhd's launch of the Battersea project. Of the 850 apartment units, 400 reserved for Malaysians were all taken up and with prices starting from STG1 million (RM4.6 million). This could easily get them a bungalow in prime KL areas," he noted.
On the outlook for the local property market, Sarkunan said in the next 12 months, he expects Iskandar Malaysia to continue to attract investments, especially from Singapore investors.
"We can expect more activities from them after the elections," he said.
Asked by a member of the audience if these Singaporean investments are actually "recycled Malaysian money", Wong said the investments are "genuinely from Singaporeans and not like some conspiracy theory Malaysian equities are usually associated with".
"UEM Land has for many years been trying to lure investors from Singapore and it was not easy. Only after Legoland, interest from Singapore came in and with THE rising cost of living in Singapore, Iskandar has a lot to offer for them," he said.
Speaking to reporters later, Wong said he is upbeat about the country's property sector this year, especially in Iskandar Malaysia, the Klang Valley and Penang.
He said the rise in property prices in the last three to four years have been fair considering that the market was quite depressed prior to that.
-btimes.com







Monday 4 March 2013

鄭福成:公司兩個月沒售出一間‧“大選未定房產難賣”

4th March 2013

(吉隆坡3日訊)大馬建築商公會前副總會長丹斯里鄭福成說,基於政府至今依然未宣佈大選日期,導致國人在購屋方面保持觀望的態度,申請房屋貸款活動出現了放緩的情況。

他說,他們的公司在近兩個月沒售出一間房屋,為此他促請政府儘快宣佈大選日期。

工地安全主任“錢”途佳
也是大馬青運名譽總會長的他,今日出席青運新會所啟動暨禮堂命名儀式致詞時,也鼓勵華裔子弟踴躍投入建築業工地安全主任(Safety Officer)行列,目前建築業依然缺乏華裔安全主任。
他說,鑑於必須以馬來語參加考試,導致許多華人退考,放棄投入這個行業。
他說,安全主任擁有不錯的前景,底薪可達4千500令吉,工作5年後,更可獲得上萬令吉的薪水。
陳沛良:青年須具備3特點
青運總會長陳沛良說,在國際化、科技迅速發展及競爭激烈的環境下,青年需要提高及增強個人知識與技術外,也應具備3個特點,以具備更強的競爭力。
他說,青年應該敢於設定理想,也要為自己所有的決定、想法、做法、看法及言論等負起責任。
大廈命名“青年成才之家”
青運大廈將以“青年成才之家”命名,也象徵了為27年前提出的“青年成才之家”概念,同時,該會也正式把禮堂命名為“丹斯里鄭福成禮堂”。
為了慶祝青運新會所正式啟動,該會也在今早舉辦了一場馬拉松比賽,約150名參賽者從舊會所跑至新會所之處,全長7公里。
(星洲日報)