Malaysia 1H 2016 Auction Cases

1H2016 Auction Market

1H2016 Auction Market

 

 

Penang Property Market

 

 

 

ALYA Kuala Lumpur

The 360-acre ALYA is nestled in a prime neighbourhood that includes Damansara Heights and Bangsar, with the lush Bukit Kiara forest reserve just next to it. It has good road connections to the city centre and Petaling Jaya but step inside, and it feels like a sanctuary from the hustle and bustle of the city.

The centrepiece of ALYA is the 36-hole TPC Kuala Lumpur golf course. There are eight development parcels with residential, commercial, retail and hospitality components. The gross development value of the project is estimated at RM8 billion.

ALYA Kuala Lumpur is envisioned as a new international destination for Malaysia and it further underscores Sime Darby Property’s continuing contribution to the development and growth of the capital city. It is also a key component of Greater Kuala Lumpur’s goal of becoming a top 20 liveable global metropolis by 2020 as well as one of the economic drivers under the Economic Transformation Programme (ETP).

Solving Inter-Floor Leakages Step-By-Step

The Strata Management Act 2013 offers some help in resolving inter-floor leakage problems with prescribed procedures to follow and the statutory presumption that a leakage originates from the upper floor parcel unless the owner of the upper floor can prove otherwise.

The Act works by, firstly, placing the burden of proof on the strata owner to show that there is indeed a leakage in the strata owner’s parcel. The Act defines “inter-floor leakage” as any evidence of dampness, moisture or water penetration in the ceiling and/or any furnishing materials attached to the ceiling that form parts of the interior of a parcel, common property or limited common property.

Besides the vertical definition, there are similar provisions for horizontal “damage to a party wall”, meaning any evidence of dampness, moisture or water penetration on the wall and/or any furnishing materials attached to the wall that form parts of the interior of a parcel, common property or limited common property. As such, whether the leakage emanates from the ceiling or the walls, the strata owner can notify the management body of such leakage.

Upon receipt of the notice, the management body has to carry out an inspection to investigate the cause of the leakage within seven days. This is to determine the cause of the leakage/damage and to find the responsible party who has to rectify the defect that caused the leakage/damage. To facilitate the inspection, the management body is allowed to inspect the neighbouring units of the leakage and these unit owners are obliged to allow access to the management body for such purpose.

Upon completion of the inspection, the management body shall then issue a certificate of inspection stating the cause of the leakage and the responsible party that should rectify the problem. In the event the party responsible fails to carry out the rectification work within seven days of receipt of the certificate of inspection, the management body may also carry out the rectification work provided all cost and expenses are borne by the party responsible.

Strata owners sometimes refuse to grant access to the management body to conduct inspection of their parcels.

However, under the Act, whoever fails to give access to the affected unit or any other units to the person or body carrying out the inspection shall, on conviction, be liable to a fine not exceeding RM50,000 or to imprisonment for a term not exceeding three years, or both. Even with the penalties in place, some stubborn strata owners may still deny access for inspection of their units until the very last minute, and the affected parcel owner has to suffer for the entire time access was denied.

Nevertheless, strata owners can take heart from the knowledge that inter-floor leakages can now be solved step-by-step and that there are prescribed obligations on the management body and adjoining strata owners to cooperate.

A leakage problem should be addressed early, otherwise an enormous amount in cost may be required for restoration later while the value of the property may also be affected.

Residential Property: 1H 2014 to 1H 2016

This is the latest statistic for Malaysia primary market residential property units launched & units sold from 1H 2014 to 1H 2016.

The market seem very slow for 1H 2016. Just compare the 1H 2015 with 1H 2016, you will see how bad the market was.

1H 2016 vs 1H 2015 at each price range:

For RM250k - 300 units sold are 224 units, only 8.8% at the same period of 1H 2015.

For RM300 - 400 units sold are 724 units, only 21% at the same period of 1H 2015.

For RM400k - 500k units sold are 536 unit, only 30% at the same period of 1H 2015.

For RM500k - 1mil units sold are 7037, only 7.3% at the same period of 1H 2015.

For > RM1mil units sold are 28, only 1.5% at the same period of 1H 2015.

Auction: Bungalow at Bandar Mahkota Cheras

4-8-16

Sungai Buloh-Serdang-Putrajaya MRT2

MRT2 will link Sungai Buloh to Serdang and Putrajaya, through KL city. The SSP line’s first phase, which will connect Kwasa Damansara to Kampung Batu, is expected to be completed by July 2021. The second phase, which would go all the way to Putrajaya, is scheduled for a July 2022 completion.

The SSP line will be 52.2 km in length, of which 38.7 km will be elevated and 13.5 km underground. There will be 37 stops along the line.

Sunway buys PJ land for RM286mil

Conglomerate Sunway Bhd is boosting its land bank close to its flagship development Sunway township by buying 17 acres worth RM286mil.

The parcel, which is situated next to Western Digital in the Sungei Way Free Trade Zone, works out to about RM386 per square foot.

It is believed to have belonged to a politician who used to be active in the 1980s in Selangor and his partner.

With the acquisition, the company plans to roll out a mixed project that entails service apartments and retail shops, with a total gross development value of RM1.8bil.

Sunway said the purchase from a private company, Kelana Resort Sdn Bhd, was in line with its target to buy land ready for immediate launch. It expects the first launch of the project to be in the financial year ending Dec 31, 2016, with a development period of five years.

Sunway said the residential units would be designed to capture the view of the 18-hole golf course of Kelab Golf Negara Subang and a 15-acre water retention pond.

It planned to improve the pond’s landscape by working with local authorities.

“In addition, the land is located about 600m from the Setia Jaya KTM and Bus Rapid Transit Sunway Line stations which provide residents access to public transportation networks to Kuala Lumpur City Centre, Subang Jaya, Sunway Resort City, Shah Alam and Klang,” it said.

The Lebuhraya Damansara-Puchong is on the northern boundary of the land.

Much of the 17 acres is leasehold while 0.2 acre is freehold.

The land was purchased through an open tender. It took into consideration the development potential of the land, which met its required internal rate of return.

“Given Sunway’s knowledge of the market value of the surrounding properties and the potential development value of similar land within the vicinity, i.e. Kelana Jaya, no valuation was carried out on the land,” it added.

It will buy the land through bank borrowings and/or internally generated funds and expected the acquisition to be completed by the second half of the year.

Sunway’s net gearing stood at 0.3 times as at end-December 2014.

“Properties in Petaling Jaya are welcomed due to scarcity of land and continuous population growth. Petaling Jaya, being one of the most developed areas in terms of population and economy, has long been an area of focus by Sunway.

“Sunway is confident that the project will receive positive response when it is launched,” the company said.

It had conducted a feasibility study before bidding for the land while it also studied surrounding projects to assess the viability of the project.

Other nearby integrated projects include WCT Holdings Bhd’s RM1.8bil Paradigm commercial development and Mah Sing Group Bhd’s RM3.2bil Icon City.

Paradigm at Kelana Jaya consists of a shopping mall, corporate offices, serviced residences and hotel suites.

Meanwhile, Icon City, located at SS8, Petaling Jaya, comprises serviced apartments, retail shops, mall, offices and hotel on a 20 acres.

Sunway closed 1 sen lower to RM3.40 with a market cap of RM5.94bil.