Thursday, October 16, 2008

17-10-2008, Puzzle over Issuance of Land Titles

By ELAN PERUMAL and LIM CHIA YING

THE Selangor State Foreestry Department is puzzled over some 30 land titles issued to individuals and an organisation for lots in a forest reserve in Sungei Janggut near Jeram in Kuala Selangor.

It is believed to be the first time the department has come across what appears to be legalised land encroachment into its territory.

In the past, there have been cases of illegal encroachments by squatters and smallholders.

The fact that Sungei Janggut foreest reserve occupants had been given individual land titles smacks of irregularity and is a breach of rules and procedures.

It was during the Forestry Department’s recent exercise to curb encroachment into the Kapar forest reserve that it discovered that the Kuala Selangor district land office had issued the titles without the consent of the Selangor government.

All mapped out: Yussainy with the Kapar forest reserve land map which shows the plots issued with titles.

Investigations by the department revealed that the titles had not been recorded in the state gazette’s plan as required by the procedure.

StarMetro visited the area and found that the occupants of the forest reserve land had been issued with land titles in 1999.

Besides 30 houses that have the individual land titles, the area also houses five blocks of multiple-storey buildings and red-brick buildings used as bird houses by businessmen extracting the bird-nest delicacy.

There is also a fishermen’s jetty operated by the Sementa Fishermen’s Association. A few houses of worship have also been built.

The occupants have planted crops such as banana trees and oil palm in a section of the forest reserve after felling the forest trees.

There is also a prawn breeding pond in the area.

The houses and farming areas are all in an area with forestry department signboards declaring it to be a forest reserve.

For birds: The multiple-storey red-brick buildings are used by businessmen to extract the bird-nest delicacy.

Some of the houses are built of timber and many are concrete structures with compounds, and water and electricity supply.

There are also tarred roads connecting the settlement to Jalan Kapar.

The Forestry Department had apparently initiated a RM144,500 10ha mangrove tree planting project in 2006 at the site where the fishermen’s jetty currently is, as a protective wall against waves from the sea.

However, the construction of the jetty had upset the ecology of the mangroves, with nearly an acre of the mangrove land from the 10ha project already gone.

Some of these trees were believed to be illegally logged for use as wood piling for the jetty.

An application dated July 14 this year was submitted on the construction of the jetty, which was received by the forestry department from the Kuala Selangor land office.

But it seemed that construction works on the jetty had started on July 8, a week before the application was submitted.

State forestry department assistant director (enforcement and operations) Mohd Yussainy Mohd Yusop confirmed that land titles had been issued to occupants of the forest reserve land.

“Our investigation revealed that the state executive council has not approved such titles and the titles are therefore not in conformation with the state’s gazette plan,” Yussainy said.

“We are shocked this has happened and the matter has been brought to the attention of the state agriculture chairman Yakob Safari,” he said.

Yussainy said that they had submitted a comprehensive report on the finding to the state.

One of the occupants, Lau Swee Chin, said she had been living in the area for 10 years now and was given a title for the land she was occupying.

“We also pay assessment for our land but are not aware that we are occupying forest reserve land,” she said.

Fishermen’s jetty: This is operated by the Sementa Fishermen’s Association

Currently, rangers from the Port Klang Forest Ranger Office have been deployed to patrol the area as part of the enforcement exercise.

The 138.2ha forest reserve is said to be among the more attractive and unique ones in Selangor as it faces the beach front.

At one time, there was a proposal to turn the area into the first one-of-its-kind beachfront forest reserve.

However, it is not known whether the plan is viable now that some 50ha of the total forest area had been cleared for the settlement.

Yakob said the state was investigating the complaint from the Forestry Department.

He said the titles had been issued many years ago and it would take time for a thorough investigation.

“It appears that the land office did not follow the procedures and this is a very serious matter. We also believe that this is just the tip of the ice berg,’’ he said.

Yakob said that the state government would take firm action on the culprits responsible for the fiasco.

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17-10-2008, Property fair attracts a large crowd


At your service: An employee of a property firm providing information to some of the visitors.

KUANTAN: A four-day property fair at the East Coast Mall here recently attracted scores of people, who checked out the properties up for sale.

The event was the second to be organised by Yes City Sdn Bhd.

Besides the exhibition, there was a host of activities including a colouring contest, children

singing contest, blood donation drive, clown performances. and an inflatable figurine playground for the kids.

Among the developers, who participated were Alam Tenggara Sdn Bhd, Bindev Sdn Bhd, Pasdec Holdings Berhad, Winfast Corporation Sdn Bhd and financial institution Public Mutual.

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Monday, July 14, 2008

Investors divided on timing of purchase

Monday July 14, 2008

By Angie Ng and Eugene Mahalingam

WITH inflation expected to have surged to 6% in June from 3.8% in May and looming recession, investors are unsure whether to enter the property market.

S.K. Brothers Realty (M) Sdn Bhd chief executive officer Charlie Chan said political concerns, high cost of living and rising inflation were affecting the real estate sector.

“Investors and purchasers are divided over what is the right thing to do. Some people believe that the time is right to buy for fear that prices will escalate further while some feel that now is the right time to sell,” he said.

Chan said while there were still a lot of uncertainties, he was optimistic that property in the RM150,000 to RM400,000 bracket would still experience brisk sales.

“Transactions within the Kuala Lumpur city centre should remain steady and relatively unaffected,” he said, adding that due to the fuel price hike, people were more likely to buy property that was either within or close to the city.

“We see an increase in demand for property closest to the city as transportation cost has become an issue after the oil price increase and more people will be looking to live closer to their workplace,” he said.

Workers pour concrete at a construction site in Kuala Lumpur. Some experts believe property prices are determined by demand and not by raw material prices – Reuters

Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz had said last week that she expected inflation to hit 6% in June following the increases in fuel prices and that domestic inflation was expected to rise until early next year.

She had said the inflationary pressure was also following the increase in electricity tariffs from July 1, with tariffs up to 18% for households and an average of 26% for some commercial and industry users.

DTZ Nawawi Tie Leung Sdn Bhd investment executive director Brian Koh believes sentiment towards the property sector is generally negative and properties costing below RM250,000 would be most affected.

He said those planning to buy houses below RM250,000 might hesitate as their household income had shrunk due to high food and fuel prices.

Reapfield Properties Sdn Bhd president David Ong did not foresee a drastic fall in property transactions, as there would always be some people who would still buy while others might remain cautious.

“Property is one of the best investments in time of inflation. Any time is a good time to buy,” he said.

According to Ong, the high cost of living would impact property within the low-end and medium-end range.

However, sales of high-end properties should continue to remain stable as the wealthier investors were unaffected by the high cost of living, especially with the recent fuel price hike.

Ong said there were also “pros and cons” on purchasing residential properties within the city as it might help to minimise transportation cost but properties in such locations were also too expensive for the average city worker.

On property prices, PPC International Sdn Bhd executive director Thiruselvam Arumugam said they were determined by demand and not by raw material prices.

“Transactions are slowing down because of the cautious approach by investors and buyers. Developers can increase the property prices but the demand will just not be there.

“This will result in an overhang and eventually, prices will have to come down,” he said.

On the market outlook, Thiruselvam said the industrial and manufacturing sectors would be most affected whereas the commercial and residential sectors were still in good demand despite the current situation.

Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng said as a result of weaker market conditions, the take-up rate for homes could drop in 2008 as buyers took a more cautious stance.

“Confidence in the economic climate is vital for a buoyant property market. People will buy property if they see that there is room for capital appreciation,” he said, adding that investors and purchasers were more likely to invest in established locations where demand was strong.

“Popular and prime locations like Bangsar, Damansara Heights, Mont Kiara, Bandar Utama and Mutiara Damansara will continue to receive strong interests as investors can still enjoy decent yields while waiting for the market to improve.”

Opportunities in high-end segment

Monday July 14, 2008

By ANGIE NG and EUGENE MAHALINGAM

ALTHOUGH the increase in the price of petrol and escalating cost of living has affected sentiment in the property market, especially for the lower to medium-priced property, there are still pockets of opportunities to be tapped.

Developers said housing products priced at less than RM300,000 a unit now take more than nine months to be fully taken up while those priced between RM300,000 and RM800,000 take about six months to a year.

However, demand for houses priced at more than RM1mil remains good and these high-end units usually take only a week to be fully taken up.

According to Glomac Bhd group managing director Datuk F.D. Iskandar, since the 30% rise in construction cost and 40% fuel hike in the past six months, developers of medium-range residential properties priced between RM250,000 and RM300,000 were the worst hit.

“This is because 60% to 70% of the country's population belong to the middle class. Potential buyers have turned cautious since the rising inflation and they have changed their priorities to lower their financial commitments.

“With interest rates expected to start rising in the coming months to curb rising inflationary pressure, market sentiment is expected to soften further for the lower-to-medium property sector.”

Mass townships such as Setia Alam that are equipped with all the elements for healthy living, learning, work and play will become more sought

On sustaining interest for properties in the Kuala Lumpur City Centre (KLCC) area, Iskandar said given the competitive pricing of residences around the KLCC compared with other global cities, investors saw good upside potential for these properties and the response had been good.

Concurring with Iskandar, SP Setia Bhd group managing director Tan Sri Liew Kee Sin said higher-end property buyers were more resilient and recession-proof.

“While buyers in the medium-range market comprised mainly end users now, high-end investors are driven by the opportunity to invest in property as a hedge against rising inflation.

“Those who are serious investors always have an eye for premium properties at attractive entry price to enjoy good capital appreciation potential or rental yields,” Liew said.

He foresees that the fuel price hike would result in more pronounced demand for properties in areas that provide integrated amenities in a single location.

“Mass townships such as Setia Alam that are equipped with all the elements for healthy living, learning, work and play will become more sought-after, as residents and businesses find it more cost-effective to move into well-connected suburban townships with main highway arteries,” Liew said.

Mah Sing Group Bhd president Datuk Sri Leong Hoy Kum said developers should look into offering good value products to help ease the people’s burden.

To suit the needs of the current times, Mah Sing is redesigning its property offerings which has given rise to new trendy design elements such as the use of windows extension to promote cross ventilation and lower electricity consumption.

Leong said innovative and cost efficient designs that embrace practicality and sustainability were important considerations for house buyers these days. “Ecologically friendly and passive, low energy designs will make their way into homes,” he added.

Sunway City Bhd managing director Ngian Siew Siong said the property market was getting more competitive and newer properties with facilities that promote quality lifestyle, well-designed and sustainable products, as well as safe environment would be much sought after.

“By offering value innovation in our product offerings and consistent delivery of quality products and services, we aim to set new benchmarks in new growth markets,” Ngian said.

Gamuda Land Sdn Bhd managing director Chow Chee Wah said the company also placed much importance on sustainable living environment in its developments.

These include providing efficient road network systems with dedicated interchanges, reliable traffic management systems, modern facilities and commercial centres.

Sunday, July 13, 2008

Strategies to survive the property slowdown

Monday July 14, 2008

By ANGIE NG and EUGENE MAHALINGAM

MOUNTING inflationary pressures following the sharp rise in the price of construction materials, oil and food are creating much anxiety among the property and construction industry fraternity.

To mitigate the adverse impact of the rising cost and softening market sentiment, developers are resorting to more ingenuous strategies and measures to ride out the tough times.

The threat of stagflation – high inflation without demand growth – is also looming and developers are faced with rising costs and slower take-up of their property products.

The big jump in the price of key construction materials, especially steel and cement by between 30% and 40% in the last six months, has resulted in slower progress of work on site.

It looks like the high cost environment will be here to stay for a while unless global demand and speculative activities for some of the key commodities such as oil and steel slow down.

A filepic shows the crowd at a property fair in Penang. The high cost environment will be here to stay for a while unless global demand and speculative activities for some of the key commodities such as oil and steel slow down

According to SP Setia Bhd group managing director and chief executive officer Tan Sri Liew Kee Sin, the company has incorporated cost escalation clauses into fixed-price contracts for a few key construction materials (steel and cement) to alleviate cost pressures on contractors while avoiding over-pricing of overall contracts.

“We will also take advantage of our strong financial position to offer to purchase construction materials on behalf of our subcontractors to enable works to progress expeditiously on site.

“By doing bulk material purchase, we can enjoy the economies of scale and command better bargaining power with suppliers,” Liew told StarBiz.

Concurring with Liew, Sunway City Bhd managing director Ngian Siew Siong said: “To lessen the impact and to help contractors contain costs, we encourage them to buy materials in advance and have enough materials in stock so that there is a lesser impact on rising costs.

“We also leverage on our financial capability and pay our contractors in advance to buy their materials. In the long run, we want to ensure that all parties are affected as little as possible.”

Mah Sing Group Bhd president and group chief executive Datuk Sri Leong Hoy Kum said competitive funding costs and good payment terms for land acquisitions have helped the company to keep costs in check.

“We have set up a specialized material sourcing team which works together with suppliers and contractors to ensure the best pricing and bulk purchase discounts,” he added.

SP Setia's Liew said the company has restructured and streamlined its operations to strive for higher cost efficiency and productivity improvements.

“We are also expediting the provision of key infrastructure and amenities in the company's various townships and improve our product offerings to achieve greater value creation for customers.

“This will facilitate justifiable price increases to be passed on to purchasers,” Liew said.

Workers pour concrete at a construction site in Kuala Lumpur. Some experts believe property prices are determined by demand and not by raw material prices – Reuters

Meanwhile, Glomac Bhd group managing director Datuk F.D. Iskandar has called for more proactive measures to address the country's high prices of construction materials and attract greater interest in real estate.

He said tax discrepancy between the import and export of steel has contributed to the high price of steel in the country. In the last six months, the price of steel bars jumped 45% to RM3,000 per tonne.

“While imported steel products are subjected to a 20% tax, steel products bound for the export market are not taxable.

“Political will and more concerted efforts are necessary to address the steel issue. More priority should be placed on local needs. It will certainly help if both import and export of steel are subjected to the same quantum of tax rates,” Iskandar said.

On measures to promote greater demand for the country's real estate, he said concerted efforts to attract more multinational corporations to set up regional offices in the country would create demand for a broad section of properties, including office space and residences.

“Malaysia My Second Home (MM2H) programme has great potential to attract high net worth and other potential foreigners to invest in the property market.

“However, to reap its full potential, the programme has to come under the purview of the Prime Minister's Department and get full co-operation from all the other agencies,” he said.

Another area that offers great potential is turning Malaysia into a reputable Islamic financial hub to attract the huge reserve of “oil money” from big institutions and investors in the Middle East.

“There is growing competition for these investments from other neighbouring countries and Malaysia should leverage on its position as a model Islamic country to attract more such funds,” he said.


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Cost crunch: Property and construction players are maintaining vigil over soaring costs.
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Wednesday, March 19, 2008


Call for appointment to view..... Sale and Rent Negotiable

Call for appointment to view .....Taman Sri Bahagia
Rennovated Double Storey Corner House for Sale RM350,000= neg.

Renovated Double Storey House for Sale RM250,000= neg .
Kuala Lumpur Cheras






Tmn Sri Watan Double Storey End - lot for sale Rm
330,000 = neg. Rent Rm1,200=
Condo Sri Angsana 20th Floor for Sale RM155,000=
neg.



Am

g


Selangor







Single Storey Semi Detached House for Sale RM250,000=
Rent 800=
Shop House for sale - Price neg..... Rental also neg

Megan Avenue 2



Prime Building near KLCC area - a grd flr. commercial Unit, freehold & issued with strata title 2,200sf , ideal for Motor Vehicle & other Service Center. Fronting highway, easy accessibility,ready catchment & ample parking. Mininum Selling price at RM400psf. Call without obligation 6- 012- 2696 389

Prime Building near KLCC, upper grd commercial unit, 2000sf, issued with freehold title. Can give more than 7% rental returns . Net Sale Price@3.80 psf

Prime Building near KLCC area - a corner upper grd flr. commercial Unit, 3699sf , ideal for SPA ,& Health Club business.Easy accessibility,ready catchment & ample parking. Rent @ RM3.50 psf...Sale @ 280 psf . Call 6- 012- 2696 389

Prime Building near KLCC area, near LRT - 2 adjoining lower grd flr. commercial Units, approx 3,000sf & 2,000sf with 2 adjoining equally big open terrace garden space. Ideal for Pub, Cafeteria, Restaurant & Business that require open outdoor space. Rent Negotiable.

Prime Building near KLCC , upper grd commercial unit, 2000sf , big & ready catchments. Ideal for Showroom, Cafeteria & Retail Business. Rental @ RM3.50 psf.

Other Commercial lotsof various sizes for Rent available. Approximately 820sf , 1570sf , 2000sf, 2300sf, 4700sf, are available. Pls call 6- 012- 2696 389

Enbloc Sale of 14 units ( Ground to Level 14 ) , currently tenanted to various Corporate tenants, giving a rental return of RM55,000 plus. Total flr area is approx. 26,000sf , freehold with individual strata tieles. Sale Price @ RM 8.9 million

Megan Avenue 2


Call for appointment to view. Prime Building near KLCC area, near LRT - 2 adjoining lower grd flr. commercial Units, approx 3,000sf & 2,000sf with 2 adjoining equally big open terrace garden space. Ideal for Pub, Cafeteria, Restaurant & Business that require open outdoor space. Rent Negotiable

Tuesday, March 18, 2008

Megan Avenue 2 .......................... 012 2696 389


all for appointment to view. Prime Building near KLCC area, near LRT - 2 adjoining lower grd flr. commercial Units, approx 3,000sf & 2,000sf with 2 adjoining equally big open terrace garden space. Ideal for Pub, Cafeteria, Restaurant & Business that require open outdoor space. Rent Negotiable

Megan Avenue 2 ........................... 012 2696 389






Call for appointment to view. Prime Building near KLCC area, near LRT - 2 adjoining lower grd flr. commercial Units, approx 3,000sf & 2,000sf with 2 adjoining equally big open terrace garden space. Ideal for Pub, Cafeteria, Restaurant & Business that require open outdoor space. Rent Negotiable

GLOBAL MARKETS-Wall Street surges on rate cut, oil rebounds



NEW YORK, March 18 (Reuters) - U.S. stocks surged on Tuesday as investors overcame initial disappointment that the Federal Reserve cut its benchmark interest rate less than expected and focused on the likelihood of future cuts, driving the S&P 500 to its biggest percentage gain in more than five years.

Oil prices surged 3 percent, while the dollar reversed earlier losses and strengthened against the euro. And U.S. gold futures turned lower after the Fed slashed its target interest rate by three-quarters of a percentage point to to 2.25 percent.

The S&P 500 had its best daily percentage gain since October 2002, rising more than 4 percent. The technology-rich Nasdaq also jumped more than 4 percent for its biggest percentage gain since October 2003, while the Dow industrials jumped more than 400 points.

Earlier, European benchmark indexes gained more than 3 percent.

Investors had expected a cut of a full percentage point but analysts said the Fed's recent actions showed it was prepared to do what it takes -- such as its intermediation in the sale of investment firm Bear Stearns on Sunday -- to get its hands around a simmering global credit crisis.

Better-than-expected earnings from Wall Street banks Goldman Sachs (GS.N: Quote, Profile, Research) and Lehman Brothers (LEH.N: Quote, Profile, Research) also provided relief to the battered financial sector on both sides of the Atlantic.

"The Fed has shown that they are focused on getting the economy back on its feet first and foremost, and they will worry about inflation later," said K. Daniel Libby, senior portfolio manager at Sands Brothers Select Access Fund in Greenwich, Connecticut. Continued...