MASPEX Malaysia 2013 | Penang Property | MIEA | New Homes To Cost More? Option For Buyers.

On Tuesday this week Malaysia government announced 20 sen rise in the price of RON95 petrol and diesel. Before the revision, the price for RON95 was RM1.90 per litre and RM1.80 for diesel. The price increase for RON95 was in 2010. The chain reaction has been fast with newspaper announced new homes to cost 10% more as been reported by Real Estate and Housing Developers Association of Malaysia president Datuk Seri Michael Yam Kong Choy. To solidify his statement further he mentioned that it's compounded by absenteeism among foreign workers because of the nationwide crackdown on illegal immigrants as developers have to pay more for labour to meet contractual deadlines, failing which they will be penalised. That's true if the sales and purchase agreement(SPA) been drafted towards HDA guidelines. Commercial building won't have that effect.

It was reported that the Penang Master Builders and Building Materials Dealers Association says it expected construction costs to rise by 3% to 5%. Association president Datuk Lim Kai Seng said the cost of transportation was likely to rise 10% to 20%, and the prices of sand and cement by between 5% and 10%. He said that cement now cost RM17.50 per 50kg while sand sold for RM70 per cubic metre.

While new developments might increase in price, the sub sale(secondary property) might stabilize in price at the moment. There'll be MASPEX on 27-29 September 2013 at Penang Times Square, Penang(2nd launch: northern region).

MASPEX or Malaysian Annual Secondary Property Exhibition is a new platform organized by MIEA to further its memberships through consolidating under one roof of Real Estate Agencies to offer their services and listings to public in general.

PS: 1st launch: central region was held from 12-14 April 2013 at Tropicana City Mall, Petaling Jaya. 

Malaysia's Petrol Trend: From 1990s to 2013(updated)

(Sen Per Litre)

DATE	RON97	RON95	RON92	DIESEL
Before 1990s	110		106 ( )	65.1 ( )
20-Oct-2000	120 (+10)		116 (+10)	70.1 (+5)
20-Oct-2001	130 (+10)		126 (+10)	70.1 ( )
01-May-2002	132 (+2)		128 (+2)	72.1 (+2)
01-Nov-2002	133 (+1)		129 (+1)	72.1 ( )
01-Mar-2003	135 (+2)		131 (+2)	76.1 (+4)
01-may-2004	137 (+2)		133 (+2)	78.1 (+2)
01-Oct-2004	142 (+5)		138 (+5)	83.1 (+5)
01-Apr-2005	142 ( )		138 ( )	88.1 (+5)
01-May-2005	152 (+10)		148 (+10)	108.1 (+10)
31-Jul-2005	162 (+10)		158 (+10)	128.1 (+20)
28-Feb-2006	192 (+30)		188 (+30)	158.1 (+30)
05-Jun-2008	270 (+78)		262 (+74)	258 (+100)
23-Aug-2008	255 (-15)		240 (-22)	250 (+8)
25-Sep-2008	245 (-10)		230 (-10)	240 (-10)
15-Oct-2008	230 (-10)		220 (-10)	220 (-20)
01-Nov-2008	215 (-5)		205 (-5)	205 (-5)
18-Nov-2008	200 (-15)		190 (-15)	190 (-15)
03-Dec-2008	190 (-10)		180 (-10)	180 (-10)
16-Dec-2008	180 (-10)		170 (-10)	170 (-10)
12-May-2009	180 ( )	175		170 ( )
01-Sep-2009	205 (+25)	180 (+5)		170 ( )
16-Jul-2010	210 (+5)	185 (+5)		175 (+5)
02-Nov-2010	215 (+5)	185 ( )		175 ( )
01-Dec-2010	230 (+15)	190 (+5)		180 (+5)
05-Jan-2011	240 (+10)	190 ( )		180 ( )
01-Feb-2011	250 (+10)	190 ( )		180 ( )
02-Apr-2011	270 (+20)	190 ( )		180 ( )
05-May-2011	290 (+20)	190 ( )		180 ( )
16-Jun-2011	280 (-10)	190 ( )		180 ( )
05-Apr-2012	290 (+10)	190 ( )		180 ( )
07-Jun-2012	280 (-10)	190 ( )		180 ( )
05-Jul-2012	260 (-20)	190 ( )		180 ( )
24-Aug-2012	270 (+10)	190 ( )		180 ( )
06-Sep-2012	300 (+30)	190 ( )		180 ( )
27-Feb-2013	270 (-30)	190 ( )		180 ( )
07-Mac-2013	290 (+20)	190 ( )		180 ( )
22-May-2013	270 (-20)	190 ( )		180 ( )
03-Sep-2013	270 ( )	210 (+20 )		200 (+20)
05-Sep-2013	285 (+15 )	210 ( )		200 ( )

16-Jul-2010 – No more subsidy for RON97, the price will be subjected to the current price of crude oil (RM2.10 as of 7/23)

This article has been written by VULCAN INT'L Real Estate Research Institute http://www.vulcanresearch.blogspot.com for VULCAN INTERNATIONAL Real Estate Investors Club http://www.vulcaninternational.blogspot.com .

VulcanInternational could be contacted at +6 016 451 1321 .

You're welcome to write your constructive comment below.

Back to Main Page: www.VulcanPenangProperty.blogspot.com | International Page:www.VulcanInternational.blogspot.com

Malaysia Property Bubble | Penang Property | Property Guru Forum |Ringgit Exchange Rate, RPGT Trend: Where're we heading from here?

A week ago, our local newspaper mentioned that our neighbour, Thailand has been in recession mode. The indicative way of measuring as yardstick is GDP(Gross Domestic Product). It was mentioned that the country has been twice consecutively performing below its GDP forecasted numbers.

On our home front, last week we saw the weakening of ringgit which is noted to be at its three-year-low against the greenback(US dollar). The ringgit lost as much as 0.4% to 3.272 per US dollar, it's weakest since June 2010 and predicts by analysts that ringgit could soften to 3.3 against greenback over the next six months. As at noon yesterday, ringgit had slid about 8.17% year-to-date against the greenback to 3.33 per dollar.

The Star newspaper article also mentioned that our students in UK and their parents are having to work harder to counter the weakening of ringgit as ringgit has also slid against the British pound, the euro and most major currencies. 

On the contrary it was mentioned that it's not all bad news though as inbound tour operators and exporters are laughing their way to bank. Malaysian Association of Tour and Travel Agents(MATTA) vice-president (inbound) Tan Kok Liang said it would now be cheaper for foreigners to come to Malaysia with their increase spending power.

Federation of Malaysian Manufacturer(FMM) president Tan Sri Yong Poh Kon said Malaysian goods would be more competitively priced aboard. Exporters will benefit as they will earn a higher revenue for the same amount of goods sold previously.

Is Real Property Gains Tax (RPGT) in Malaysia in the rising trend? It seems to be happening. As we can see from the data on below, the RPGT rate has been increased progressively by government from 0% to 5%, 10% and 15%, in year 2010, 2012 and 2013, respectively. Will there be another incremental coming this Budget 2014 tabling? 

RPGT was one of the government's initiative that had a big and immediate impact on curbing housing speculation. 

In order to ensure the sustainable housing delivery system, the RPGT was reintroduced in 2010(see table below) to curb speculation and prevent the housing market from overheating.

However, reference to the House Price Index by National Property Information Centre(NAPIC) showed that in 2011 and 2012 the house price index recorded the highest increase for the last five years especially in Selangor, Kuala Lumpur, Penang, Pahang, Sabah, Perak and Terengganu.

Property flipper or short-term investor must be cautious on the rising RPGT. You may want to take (as per Real Property Gain Tax Act 1976) into your consideration, meaning 15% tax will be imposed on chargeable property gain for disposal within first two years as of year 2013. 

Will there be property bubble or rather property correction moving forward? While we're in this conundrum, developers seem to do stockpile on their land bank.

Vulcan Salute: Live Long And Prosper

This article has been written by VULCAN INT'L Real Estate Research Institute http://www.vulcanresearch.blogspot.com for VULCAN INTERNATIONAL Real Estate Investors Club http://www.vulcaninternational.blogspot.com .

VulcanInternational could be contacted at +6 016 451 1321 .

You're welcome to write your constructive comment below.

Back to Main Page: www.VulcanPenangProperty.blogspot.com | International Page:www.VulcanInternational.blogspot.com

Malaysia | Penang Property Guru | Penang Property Talk | Industrial Parks In Malaysia For Sale Or Rent

Penang | NEW ! Double storey semi-detached light industry units in Penang for sale or rent in the established Industrial Park at the south of Penang Island.

Project Details:

Location: Batu Maung

Property Type: Industrial

Tenure: Freehold

Total Units Available: 3 units

Suitability: Light Industry, factory, warehouse, logistic transporter

Unit 1: 

Land Area: 10,890 sq ft

Built-Up Area: 11,650 sq ft

Unit 2: 

Land Area: 20,078 sq ft

Built-Up Area: 16,167 sq ft

Unit 3: 

Land Area: 19,865 sq ft

Built-Up Area: 16,167 sq ft

P.S. Close to second Penang Bridge, Penang International Airport, close to Free Industrial Zone, Penang

Interested do call Vulcan Lau, mobile: +6 016 451 1321 for details.

Back to Main Page: www.VulcanPenangProperty.blogspot.com | International Page:www.VulcanInternational.blogspot.com

Malaysia | Penang Property Guru | Penang Property Talk | A freeholdplot of land in Jalan Ampang been sold for RM495mil, is it realistic?

Kuala Lumpur | Malaysia | It has been reported out in local newspapers yesterday that the trustees of Loke Wan Yat estate have sold a plot of land near Petronas Twin Towers(see picture below) as well as properties collectively known as the Asian Heritage Row.

A friend of mine sent me a whatsapp about it. Reason of him sent me the news is that (1) foreign buyer is coming into our country to purchase "triple-A rating property" and this time the price tag been transacted at RM3,325 per sq ft and (2) our piece of land for sale at Jalan Raja Chulan should be competitive in pricing. I took sometimes to digest it and trying to see for this basis of transaction what fundamental is instrument to this "high selling price." Total transacted value was reported at approximately RM495.34mil which covers 1.38ha freehold plot in Jalan Ampang, sandwiched between Wisma Central and a Chinese temple(see picture below) highlighted in green shading. It covers Nasi Kandar Pelita, Restaurant Chef Choi and four bungalows.

It was also reported Loke Wan Yat Realty Sdn Bhd confirmed the sale of both but declined to give further details other than that “they were done around the same time”.

As for the buyer of the plot, it is believed that they could be the parties involved in the development of Taipei 101, which until 2010 was considered the tallest building in the world. The Taipei 101 project was undertaken by a consortium comprising Kumagai Gumi, Taiwan Kumagai, RSEA and Ta-Yo-Wei.
According to industry observers, the transacted price of RM3,325 per sq ft would make the sale one of the highest in the capital to date.

Valuer Das Gupta of Stocker Roberts & Gupta Sdn Bhd pointed out that the property may well be the only plot available within close proximity to the Petronas Twin Towers, hence the “on the high side” transaction. To me this is "willing buyer willing seller" as no fundamental of transaction under JPPH that supported it. What makes the selling price feasible is also due to 1.38ha freehold plot. If the plot is much smaller I believe it won't command that high value.

Now let me bring back my earlier statement that we're selling a plot of land at Jalan Raja Chulan for only RM1,100 per sq ft. Take note that both lands of Loke Wan Yat Realty Sdn Bhd and ours are in "golden triangle." It's three times more in value. Ours is 15,054 sq ft. Any enquiry about it please call Vulcan Lau @ mobile: +6 016 451 1321.

Also been mentioned is the 40-year-old Wisma Central could also be redeveloped but the challenge would be to convince the owners of the apartment and retail units there to sell.
The sale of the Asian Heritage Row, sited in Jalan Doraisamy, meanwhile, comprises around a dozen properties with each measuring more than 1,000 sq ft.

A real estate consultant estimated the transacted price of each property at between RM1,000 and RM2,000 per sq ft. Henry Butcher chief operating officer Tang Chee Meng said a similar property in the neighbourhood sold for RM2.2mil recently.

The Asian Heritage Row properties were sold to William Ng, an entrepreneur and chief lessee of the properties. He turned the once derelict row of pre-war buildings there into one of Kuala Lumpur’s most visited nightspots by establishing a collection of food and beverage outlets as well as clubs.

Ng, a philosophy graduate from the National University of Singapore, worked for Arthur Andersen for three years before pursuing an MBA at the University of Chicago. He returned to Malaysia in 1997 after 20 years abroad.

Industry observers noted that the sale of both properties, especially the Jalan Ampang plot, has created a stir in the real estate fraternity as the property market has been “pretty quiet” of late. These transactions will be take into consideration when valuer making their valuation for vicinity properties.

Beside this sale, the other high-profile deal in recent times have been the putting up for sale on a tender basis of the German ambassador’s 0.73ha residence at 16, Jalan Kia Peng, at an indicative price of about RM2,500 per sq ft or RM200mil.

This article has been written by VULCAN INT'L Real Estate Research Institute http://www.vulcanresearch.blogspot.com for VULCAN INTERNATIONAL Real Estate Investors Club http://www.vulcaninternational.blogspot.com .

VulcanInternational could be contacted at +6 016 451 1321 .

You're welcome to write your constructive comment below.

Back to Main Page: www.VulcanPenangProperty.blogspot.com | International Page:www.VulcanInternational.blogspot.com