Rehda hopes Budget 2024 will address housing affordability issue

Property News/ 2 October 2023 No comments


The Real Estate and Housing Developers’ Association (Rehda) hopes that the government will address the affordability, or rather the unaffordability of houses in the nation, as well as introduce measures to alleviate challenges developers continue to face in the upcoming Budget 2024.

In its budget wishlist, the association’s president Datuk NK Tong said that as housing affordability remain a major issue for the people and industry alike, it hopes for the reintroduction or introduction of incentives that would allow more Malaysians to buy a house to call their own.

“These include incentives in the form of tax deductions, grants, as well as lower interest rates that will surely lessen the burden of future homeowners, particularly first-time buyers.

“We also request for the Home Ownership Campaign to be continued, as its two iterations in 2019 and 2020-2021 have not only helped thousands of Malaysians own their dream home but also contributed significantly to the country’s gross domestic product,” he said in a statement.

Other than the cross-subsidy method developers have to undertake to build affordable housing, another major factor contributing to the issue is the rising input cost for building materials, which correlates directly with rising house prices, Rehda said in the statement.

It said the government’s intervention, such as temporary reduction or removal of import levy, would go a long way in mitigating the problem.

“Similarly, the rising land cost is adversely impacting house prices,” it said.

Rehda pointed to a recent interview in which the Employees Provident Fund’s chief strategy officer Nurhisham Hussein had said that for housing to be truly affordable, state finances should be overhauled.

Nurhisham has said that 95% of state income was derived from some form of property tax, such as land conversion premiums, and therefore, reforming state finance is essential when discussing affordable housing.

“As developers, we concur that should charges imposed by state governments and local authorities be reduced, house prices will most likely be reduced to levels that make homeownership attainable for more people,” said Tong.

Aside from that, Rehda is also encouraged by Prime Minister Datuk Seri Anwar Ibrahim’s numerous calls for a fair and transparent government at all levels, including state and among privatised utility companies.

Meanwhile, PropertyGuru Malaysia country manager Sheldon Fernandez hopes that Budget 2024 will not only look at ways to increase income and wages but also at how it could effectively manage and execute initiatives around affordable housing.

He said this was due to income disparity, and that median income needs to catch up with property prices, as it only grew 2.5% last year, instead of over 3% during pre-pandemic times.

“We are seeing targeted approaches by the government towards affordable housing, subsidies and addressing the rising cost of living.

“But more importantly, we want to see more effective planning and implementation. We want to see that it is done well, so that the income gap could be closer,” Sheldon told Bernama.

Source: TheEdgeMalaysia.com


SITE PROGRESS: Green City Residence (Oct 2023)

Property News/ 1 October 2023 No comments


About Green City Residence

A 29-storey luxury development in the heart of George Town by Green City Garden Development Sdn. Bhd. Located on a half-acre land along Macalister Road, it is only 2km away from KOMTAR and less than 15 minutes drive to Penang Bridge.

This project features 52 units of luxury suites and a 100-room hotel. An automated robotic parking system will be built to allow more car parking bays.

*Photo taken in Sep 2023

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MIDF Research: Property sector outlook brightens

Property News/ 1 October 2023 No comments


The property sector’s outlook is improving amid the downwards trend in the property overhang and inventory levels of developers, says MIDF Research.

The unchanged overnight policy rate is also positive for property companies, which helps to support recovery in demand, the research house added.

Given the improving outlook for property developers, MIDF Research has narrowed its revised net asset value discount and target prices for property companies under its coverage.

After the adjustment to valuations, the research house’s stance on property companies remained unchanged.

However, it has upgraded the sector to “positive” from “neutral” in line with the improving outlook.

Both Mah Sing and Matrix Concepts are its top sector picks.

MIDF Research said it remains sanguine on property developers that focus on mid-market and affordable segments amid resilient demand for affordable homes.

It also likes S P Setia, Glomac and IOI Properties as their valuation remains undemanding.

According to the National Property Information Centre, among the top five states with the highest residential overhang in the second quarter of 2023 (2Q23), Penang and Johor showed a downtrend.

The residential overhang in Selangor and Kuala Lumpur improved marginally while it has worsened in Perak.

The residential overhang in 2Q23 was below the three-year average of 31,000 units.

The decline in residential overhang was due to renewed buying interest for property after the reopening of Malaysia’s international borders, it added.

The overhang in serviced apartments in Malaysia eased to 22,497 units in 2Q23 from 23,267 units in 1Q23.

It said the overhang in serviced apartments spiked to a peak of 24,267 units in 3Q20 from 16,942 units in 1Q20 due to the Covid-19 pandemic.

The flattish figures for the overhang in serviced-apartments in recent quarters were mainly due to the rise in serviced apartments in Kuala Lumpur and Selangor, which mitigated the lower overhang in Johor.

It said the declining residential overhang in Malaysia is in line with the lower inventory levels of property companies, as they had been actively monetising inventories over the past few years.

The inventory monetisation helped to generate cash flows amid a challenging operating environment due to the pandemic.

It said the inventories of Eco World Development Group Bhd fell significantly by 58% in 2Q23 since 2019.

Similarly, Mah Sing, S P Setia and Glomac saw double-digit declines in their inventory.

However, MIDF Research believed the declining inventory levels would improve the financial position of property developers and give better pricing power to them in terms of new launches.

Source: TheStar.com.my


Iconic Vue @ Batu Ferringhi – Last 3 units from RM450k onwards

Batu Ferringhi/ 30 September 2023 No comments


Iconic Vue, nestled in the vibrant heart of Batu Ferringhi. Here, you can relish the beauty of a 4km-long Batu Ferringhi beachfront, day and night, brimming with excitement, entertainment, and unmatched convenience.

Act fast to secure your slice of paradise – only 3 units left!”

Project Highlights:

– CCC obtained
– RM450k onwards
– 850sqft (3 Bedrooms + 2 Bathrooms)
– Low Density (232 units)
– Freehold

Register your interest here

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Iconic Marjorie Hotel set to open in middle of 2024

Property News/ 29 September 2023 No comments /中文版


Iconic Penang Sdn Bhd will complete a RM180 million five-star hotel under the Marriott brand in Penang by the middle of next year.

The Iconic Marjorie Hotel will be a 298-room property near Sungai Nibong, touted to be the first five-star Peranakan-inspired hotel of its kind and scale, with designs borrowed from Penang’s cultural heritage.

Iconic Penang director Tan Kean Tet said the hotel would be part of Marriott’s Tribute Portfolio, joining several top properties under the range.

“Marriott International is the world’s largest hotel company and has consistently delivered the highest levels of service.

“I believe our partnership will further unlock the potential value of Iconic’s property and hotel assets, leveraging Marriott’s brand and presence,” he said at the signing of a franchise agreement between the company and Marriott here yesterday.

Marriott International Asia Pacific (excluding China) senior vice-president Kevin Chen said it was excited to have Iconic Marjorie onboard, which fits into its Tribute Portfolio hotel range and offers enjoyable stays for both leisure and business travellers.

iconicmarrriottChief minister Chow Kon Yeow, who witnessed the signing, said the project would help Penang pivot further to high-end tourism and boost the local economy.

He said Marriott’s expanded presence is a testament to Penang’s position as Malaysia’s primary tourism gateway.

The hotel, which is 60% complete, will be the first in Penang to achieve the gold standard under the Green Building Index.

The Lone Pine at Batu Ferringhi had become the first local property to be included in Marriott’s Tribute Portfolio in Penang in July.

It was learnt that another Marriott property is expected to open near Gurney Drive this year, besides the Marriott Courtyard, which opened on Macalister Road two years ago.

The Iconic Marjorie is the company’s second foray into hotels, with the first one near Juru in 2016.

Source: FMT Online