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January 26, 2023

Month: June 2018

Malaysians don’t mind small homes but make them spacious.

Tuesday, 26 June 2018 by vestcom_admin

In cities such as Kuala Lumpur where land cost is rising, space comes at a premium, leading to smaller homes being built. Whether one likes it or not, the small homes trend is a given within cities.

And as homes become smaller especially in city centres, urban homeowners tend to look at ways to make their homes look more spacious through interior design.

In the six-week-long Lafarge-EdgeProp MYHOME survey, which received close to 14,000 respondents, it was found that more than half of the respondents (51.9%) chose spacious interior as among the top three most important aspects of a home that Malaysian homebuyers want, along with good ventilation (65.6%) and security (63.5%).

 

Furthermore, according to the survey, most Malaysians want homes of 1,000 sq ft and above. A majority of respondents (45.5%) wanted a home with built-ups ranging between 1,000 sq ft and 1,999 sq ft while 33.2% prefer larger built-ups of above 2,000 sq ft.

 

According to Malaysian Institute of Interior Designers president Chris Yap, even though our homes are getting smaller, good interior design and creativity in space utilisation could still make our homes look more spacious.

“For small homes of less than 800 sq ft, owners could create the effect of spaciousness in the living room and bedrooms by breaking down barriers separating the different spaces for a more open layout,” he tells EdgeProp.my.

For instance, one could open up more space visually by keeping barriers minimal between the living room, kitchen and dining area. A mix of these three areas can provide a sense of spaciousness.

The use of storage cabinets as well as the choice of bright wall colours also help to make a room look airier and bigger than it is.

Besides this, the popular minimalist design style which gives no room for clutter and fussy decor could also be a good way to make the interior look bright and neat.

Yap adds that the minimalist concept has some obvious traits. These characteristics are seen in common repetitive elements used throughout the spaces, uniformity in finishes and colours, the light elements, consistent feel within the spaces as well as non-adherence to any particular period or style.

Yap: Minimalism is a translation of homeowners’ perception of life into an environment that is fuss-free yet comfortable and functions effectively. (Photo by Chris Yap)

“Minimalism is actually a translation of a way of life into an environment which is fuss-free yet comfortable and functions effectively,” he offers.

In designing a minimalist style home, Yap advises that “it is best to keep it simple”.

The earthy, natural look

Another interesting finding from the survey was the fondness for an “earthy and natural” ambience for our home interiors.

As many as 45.7% of respondents gave the thumbs up for the earthy/natural look. The next top choice was for a bright ambience (24.7%), followed by colourful/contrasting (10.1%).

 

The choice of floor finishes also reflected the preference for the earthy, natural look as over half of the respondents selected wood (58%) and marble (55.7%) as their top choices of materials for floor finishes. These were followed by tiles (36.9%), granite (29.4%) and carpet (11.4%).

 

However, 8.5% of respondents said they did not care about the floor finishes as they did not believe it would impact the liveability of the house.

According to Yap, based on the ideal home interiors gleaned from the survey, the current popular rustic industrial design trend could be adopted for both large and small spaces.

The survey was part of the Lafarge-EdgeProp MYHOME initiative organised by Lafarge Malaysia and EdgeProp.my. It sought to find out what the ideal home of the majority of Malaysians looks like, as it will form the basis for the design of homes to be built by the country’s top property developer S P Setia Bhd.

Meanwhile, Lafarge Malaysia Bhd president and CEO Mario Gross opines that a minimalist design requires the usage of good-quality and durable materials to create a sustainable home.

Although many might associate minimalist design or earthy and natural design with the generous use of wood finishes, Gross stresses that concrete — a material that is durable and versatile — is highly suitable as well.

“Concrete nowadays is no longer just grey; not all concrete is created equal. For instance, Lafarge’s Artevia — an innovative decorative concrete — offers a variety of designs, textures, finishing and colours to meet various design needs,” he says.

Gross: Concrete fits the criteria of durability and versatility, thus it is suitable for creating minimalist designs. (Photo by Lafarge Malaysia)

Besides this, Agila, Lafarge’s self-compacting and self-levelling concrete, is ideal for bare-faced concrete finishings and feature walls especially for those who like a touch of industrial design in their homes.

In terms of material selection to create minimalist style design, Yap concurs that various materials could be used depending on one’s creativity.

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Home owners cashing in on Airbnb.

Wednesday, 20 June 2018 by vestcom_admin

PETALING JAYA: His residential unit is located on the lower levels of the block near KL Sentral. Due to the hubbub, he could not find a long-term tenant. But when it was listed on Airbnb, it became a hit thanks to its strategic location.

The arrival of Airbnb in Malay­sia and its boom has brought new income for property owners and agents, who encourage clients to consider renting out their units on a short-term basis, instead of letting them stay idle.

 

Some developers are even known to construct smaller units to cater to this segment made popular by the online platform offering accommodation options to visitors and tourists.

A property agent, who wished to be known only as Chan, said those units were supposed to be re-sold or rented out to long-term occupants.

“With the slow market, agents have been quick to adapt. They help homeowners manage their units on Airbnb and earn money.

“Not only that, the move eases the problem of finding long-term tenants,” she said.

Another property agent, Lee, said he started helping owners manage their residential units on Airbnb about two years ago.

He now earns a management fee of RM300 to RM500 per month as a side income.

“My tasks include putting the keys into mailboxes, communicating with the Airbnb guests and hiring cleaners.

“This is a good way for owners to get some in­­come to cover their instalments,” Lee said.

“The returns could be higher than getting long-term tenants.”

An industry observer said more development projects in the Klang Valley are specially designed for short-term rental.

“The developers are trying to market and package their pro­ducts in such a way. They encou­rage potential buyers to put their units on Airbnb and other similar platforms. This has become their selling point,” he said.

These projects are usually conveniently located in city centre or near LRT or MRT stations.

“The units are smaller, about 400 to 500sq ft, and are partially or fully furnished. Some units are equipped with kitchen and some developers tell po­tential buyers they can get better returns if they become Airbnb hosts,” he said.

While owners are happy with the money-making venture, their neighbours, who often have to con­­tend with the noise and strangers, are naturally not.

National House Buyers Asso­cia­tion secretary-general Chang Kim Loong said its committee is still studying the pros and cons of legalising Airbnb.

It was reported last month that Airbnb was in talks with Malay­sian authorities to devise a possible regulatory framework for its services after Kuala Lumpur City Hall ordered owners or operators of residential properties under platforms like Airbnb to register the operations or face penalties.

It said short-term rentals through websites such as Airbnb, HomeAway and iBilik may bring safety and cleanliness problems to the surroundings.

Penang Island City Council He­­ri­­tage Buildings Technical Review Panel member Ng Wei Aik said under its by-laws, Airbnb is considered illegal lodging houses.

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These are the 5 issues impacting real estate right now

Thursday, 14 June 2018 by vestcom_admin

And the 5 issues to look out for in the future

The Counselors of Real Estate, an advisory organization that monitors real estate, released its latest report detailing the top 10 issues affecting the real estate industry. This year, the organization divided its annual list to focus on five issues currently impacting the industry and five issues to watch for potential long-term impact over the next three to seven years.

 

While speaking at the National Association of Real Estate Editors spring conference today, CRE Chair Joseph Nahas discussed the organization’s list and the issues it is raising red flags on.

Leading the list of current issues to watch is interest rates and the economy. While interest rates continue to climb, both the commercial and residential real estate markets are feeling changes.

 

Nahas explained that the issues the real estate industry will see in the future are beginning to happen today. Leading the list of long-term issues impacting real estate is infrastructure – and what the organization says is a lack of effort by the U.S. to address deterioration.

These are the five issues impacting real estate right now:

1. Rising rates and the economy

As we saw today, the Fed raised rates for the second time this year. CRE’s report said that increasing rates exacerbate the affordability crisis and has stakeholders concerned about a potential recession in 2019-2020, which would impact jobs. 

“Rising rates can actually be good – and bad – for the economy,” Nahas told the audience. “They’re bad when they increase costs. They’re good when they monitor business activity and keep inflation in check. The thinking in today’s environment by the Fed is the latter, he said “It may be painful in the short run. We may have a slower number of new home purchases or resales, or higher mortgage rates but inflation won’t get out of control.”

2. Politics and political uncertainty

Nahas explained to attendees that the mid-term elections could change the balance of power and with it, policy. “The 2018 elections are going to be telling because they’re going to determine whether or not the policies of the current administration are going to be maintained,” he said.

3. Housing affordability

The group pointed to wage stagnation, gentrification and a low supply of affordable homes and apartments, plus two decades of housing underproduction that has dramatically impacted the residential housing market. “The local control of housing decisions is problematic,” Nahas told the audience. “Decision makers … are beholden to voters and not to the economics of the housing market and as a result, they don’t respond to what is necessary from the perspective of housing that would be affordable and demanded by families, etc.”

Nahas told the audience that the solution is quite simple. “It’s a supply and demand problem,” he said. “If we can increase the supply of housing, we can lower the pricing.” The problem, he added, is convincing local officials to expand density. 

4. Generational change and demographics

The organization advised that for the first time in more than 50 years, there are four groups influencing both commercial and residential real estate: Millennials, Baby Boomers, Gen X and Gen Y.

On the rising tide of Millennial homeownership, Nahas said “We have more people today under 40 influencing real estate. That affect has not been fully felt yet. It’s going to take some time. It’s going to happen faster, because everything in this era happens faster.”

5. E-commerce and logistics

Technology is continuing to disrupt, and how we are buying things change, Nahas observed. The group said that there is concern of retail sector volatility, including the rise of e-commerce and logistics that support warehousing and delivery of goods.

And here are the 5 issues to look out for in the future:

1. Infrastructure

The group called out the United States’ recent D+ infrastructure rating from the American Society of Civil Engineers, stating that there is a “lack of serious effort” by the U.S. to address its failing infrastructure. New residential housing developments require new infrastructure, such as water, power and sewer services. The group also stressed that an absence of developed public transit hampers development, creates congestion and ultimately increases costs.

2. Disruptive technology

Nahas said this could be considered a current issue but “we’ve debated and determined that tech is moving so quickly that it’s an evolution,” he said. The organization’s report notes that the impact on residential areas include an increased demand for connectivity, smart homes, and can cause older structures to be less desirable. Nahas told attendees the tech wild card is blockchain, which he said has potential to disrupt real estate in a significant way, in different areas from transactions to titles.

3. Natural disasters and climate change

Despite all the data and press coverage, natural disasters are unpredictable and this plays havoc on homeowners and developer and increases risk to homes, both single-family and multifamily, the organization said.

4. Immigration

Immigration affects the skilled and unskilled labor pool, Nahas said. Additionally, immigration impacts both residential and commercial real estate and affects both urban and suburban areas, Nahas pointed out. Residentially, changes in immigration policy mean fewer new households, reduced rental/owner demand, reduced broker transactions, the organization said in its report.

“Policy as we know, is contentious,” Nahas said, adding that it’s an issue to be thought about today but will have larger implications in the next 3 to 5 years.

5. Energy and water

“Owners and developers and investors must consider what the state of energy and water is when building,” Nahas said. Residential real estate is impacted as the cost to extend utilities at the edge of urban areas increases, he said.

“On the heels of that, we have regulatory and environmental actions, which are unpredictable that impact, and therefore, projects that are being considered must be looked at relative to this implication.

The group also released a watch list of areas to keep an eye on, too. These include construction costs, tax cuts, urbanization/suburbanization and societal leadership and activism.

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How placemaking is reshaping Bangkok urban planning

Thursday, 14 June 2018 by vestcom_admin

Placemaking is based on a simple principle: if you plan cities for cars and traffic, you will get cars and traffic. If you plan for people and places, you will get people and places:  Southeast Asia, not the least Bangkok, is playing catch-up.

In a recent report, CBRE says sluggish retail sales and flat rental growth are contributing factors. Elsewhere, e-commerce—although in its infancy—is drawing millennial shoppers online. Coupled with the fact that consumers in Thailand have become more sophisticated and demanding, the traditional “bricks and mortar” shopping malls will remain stretched.

These factors have made ‘Placemaking’—like ‘Retailtainment’—a frequently-discussed topic and hot trend in the retail industry in Thailand, despite floating definitions.

Placemaking is about creating an environment that people choose or prefer to visit, and return to by incorporating and integrating several potential elements into a mall.

Thai retailers have been taking notice. So have developers, with a focus on placemaking now a genuine retail trend.

 

Placemaking is based on a simple principle: if you plan cities for cars and traffic, you will get cars and traffic. If you plan for people and places, you will get people and places. More traffic and greater road capacity are not the inevitable results of growth. They are products of very deliberate choices made to shape our communities to accommodate the private automobile.

 

One of the key elements of placemaking is the scale—the bigger, the better! Some smaller malls are declining simply because they cannot offer diversity and variety. We are now witnessing the trend of making a place a ‘destination’.

For example, Em District in Bangkok combines three shopping malls: Emporium, EmQuartier and the upcoming EmSphere. The concept is being undertaken by the same developer, using different concepts which complement one another. For convenience, all three locations are linked by a skywalk.

“Placemaking is something that makes a development quite unique and gives people reasons to go there that is different to what they can find elsewhere. It is making somewhere a recognizable landmark so that people want to live and stay there.”

The last key element happening in retail centers in Thailand is innovation and technology. Thailand’s first smart car parking system at EmQuartier is one example.

A leading coffee chain also implemented the “E-Wallet” mobile application where customers pay for their orders and collect points. The brand uses it to inform customers about new products and promotions. Many restaurants are now using tablets as a menu instead of traditional paper ones. Moreover, hi-tech IMAX theaters, digital-integrated lounges, and online booking are available for the convenience of movie lovers.

Another example is Gaysorn Group, who is combining three retail centers: Gaysorn, Gaysorn 2, and Amarin Plaza. These are to be linked by pedestrian bridges and named Gaysorn Village. Completion is expected around 2020.

Other elements which are being emphasized are experience, entertainment and excitement. New concept tenants such as Bounce Inc., an indoor trampoline park. are embracing this idea.

B2S, a local bookstore chain, has opened its first “Think Space” concept at Central EastVille with a total area of 30,000 sq. ft. as a place for new ideas, inspiration and networking.

For all its leadership moments in terms of live-work-play and multi-use developments, Bangkok still lacks the nuance of placemaking initiatives in other parts of the world, which often take into account concerns such as the number of social housing units. “In Bangkok, zoning and planning is still very broad-brush and is not micromanaged. So we’re very much driven by broad-brush approaches as to what can be built in terms of use.”

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Old Klang Road – a Klang Valley gem waiting to be unearthed

Wednesday, 13 June 2018 by vestcom_admin

Old Klang Road (OKR) is a neighbourhood that has established to become a mature suburb located on the fringes of Kuala Lumpur leading towards Port Klang.

This is a long trunk road was originally constructed by the British Federated Malay States in 1908 and presently, runs parallel to the Federal Highway and connects Mid Valley Mega Mall on its eastern end to Sunway Pyramid via LDP at Commerce Leisure Square.

Given its prominent location being close to KL city, it has now become one of the desired address for redevelopment and is a magnet for new high-rise residential property projects.

Various new developers like MRCB, UOA, Exsim Group, Bukit Kiara Properties, Binastra and many others are already here in this neighbourhood.

In recent years, we have seen many new areas being rejuvenated and rebuilt with high-rise condominiums such as Seputeh 9, The Verve Suites, The Petalz, Southbank Residence, Saville, Miller Square, Scott Gardens, The Sands Residences and various others.

The popular focus points of redevelopments are the existing old sites fronting onto Old Klang Road at the front eastern end near the Mid Valley vicinity, at MRCB’s Seputeh 9 vicinity where a new link is being built connecting to the NPE which is also near Sri Sentosa neighbourhood.

With the constant growth of the City and Klang Valley over the last few decades, OKR is a now well-connected major arterial road in a prime and strategic location within the heart of Klang Valley. It runs off from Mid Valley Megamall as its main landmark.

It is connected directly to various highways such as Federal Highway, New Pantai Expressway, LDP and leads directly to KESAS, NKVE, Bukit Jalil Highway and various others expressways.

There is no LRT or MRT line in the immediate vicinity and the closest station around is MRT Kuchai Lama which is presently under construction.

Over the years, commercial properties built here interspersed with dilapidated industrial developments and with matured residential neighbourhoods nearby including Taman Desa, Taman OUG, Taman United, Taman Sri Sentosa, PJS 5, to name a few.

Many of these areas and neighbourhoods have since aged and blighted. Old and dilapidated houses and abandoned or under-utilised industrial developments are seen in the vicinity.

It is no easy task to amalgamate sizeable plots of land for redevelopment purposes. It is a painful and expensive exercise to acquire lands for redevelopment from various individual owners who are generally not compelled to sell their lands and freehold land titles have been issued.

The old industrial plots around here are still an easier bet as they are more sizeable and especially when the old factories are badly under-utilised.

The newer projects here are now largely vertical in nature to counter the limited availability of lands in the city, especially in this OKR vicinity.

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Improving transport connections reshaping Bangkok’s condominium market

Wednesday, 13 June 2018 by vestcom_admin

Around 60,000 condominiums will be added to existing stocks this year, building on the 300,000 units that have entered the market since 2013

 

Rising prices and dwindling land banks, combined with improved transport connectivity, are changing the shape of Bangkok’s condominium market as new projects move away from the city’s centre; however, oversupply in some areas could continue to weigh on sales.

With the expansion of bus and rail transport improving connectivity in the capital, mid- and upper-range property developments are set to migrate away from traditional downtown areas, according to international real estate consultancy Colliers International Thailand.

Around 60,000 condominiums will be added to existing stocks this year, building on the 300,000 units that have entered the market since 2013, Phattarachai Taweewong, senior manager of the firm’s research department, told local press in April.

The extension of the Metropolitan Rapid Transit Blue Line connecting Tha Phra to Bang Sue, which is close to completion, has accelerated development in the city’s west. An estimated nine condominium projects are set to be launched in the area this year, bolstering supplies in the middle and lower end of the market.

Meanwhile, the upscale Thonglor district, which is already well connected by the Bangkok Mass Transit System, or Skytrain, will see the most activity this year, with around 3300 units to be added.

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New government, new hope for Malaysian property market?

Tuesday, 12 June 2018 by vestcom_admin
 

malaysia-housing-property-2018

Pakatan Harapan’s policies and programmes as outlined in The People’s Manifesto provide great anticipation for homebuyers, developers and investors alike. If done right, these strategies will go a long way in curbing the housing affordability conundrum. 

The 14th Malaysian General Elections (GE14) on 9th May 2018 will go down in history as one of the most memorable days for millions of locals nationwide. The majority voted in favour of the opposition alliance to serve as the country’s new government – the Pakatan Harapan (PH) coalition trumped Barisan National (BN), which has been in power for 6 decades.

We are all excited to see how PH will bring forth positive change; the new government has promised a reformation of Malaysia’s administration and politics as well as sustainable growth and economic development. On a more micro level, the rakyat is banking for a reduction in the cost of living in line with PH’s aim to build a more inclusive and moderate nation.

Various programmes and policies have been outlined in the new government’s manifesto, of which the Malaysian housing and property market at large received its fair share of attention. These promises mostly centre on combating the homeownership issue and systematic provision of affordable homes.

Proper definition of affordable housing required

We sought the opinion of industry heavy-weight and the champion of Malaysian homebuyers, Chang Kim Loong to share his thoughts on the overall manifesto.

A home is not just a physical asset but also a form of financial security in our golden years. It is the aspiration of every citizen to have a roof over their head and HBA hopes that the new Housing Minister will always put the interest of the rakyat and Country first before the interest of housing developers and does not become a “Minister for Housing Developers”. – Chang Kim Loong,  Secretary-General of HBA –

Chang-Kim-Loong

 

HBA views PH’s manifesto on affordable housing and home ownership with high optimism and anticipation. If implemented right, the well-thought-out proposals can go far towards increasing the supply of affordable housing and reducing the “Homeless Generation” threat.

 

What does proper implementation look like anyway?

According to HBA, there is a need to define what is affordable housing to ensure that this term is not abused by unscrupulous developers. HBA’s definition of affordable housing must meet the following 3 criteria:

 

  • Price– Affordable housing comprises of properties priced between RM150,000 – RM300,000 and must also be differentiated from “Social Housing Units” such as Low-Cost Housing or Medium Cost Housing priced below RM100,000 such as PPR units. According to Bank Negara Malaysia, the maximum price of an affordable home is estimated to be only RM282,000, given the median household income of RM5,228 in 2016 as published in the Household Income and Expenditure Survey by the Department of Statistics, Malaysia. HBA’s proposed price range falls within BNM’s recommended price.
  • Built-up – Affordable housing must be conducive for family living and have a minimum size of 800 sq ft (excluding balcony), with at least 2 bedrooms.
  • Location– Affordable housing must be located in areas that are accessible and served by good public transportation links such as buses and rail links (LRT, MRT, KTM) and located in areas with good public amenities including government schools, public hospitals, hypermarkets, etc.

house malaysia affordability

 

Chang also commented on the specific game-changing policies/programmes as outlined below:

Short-term policies (Promised to be implemented within a 100 days of PH taking office)

1) The Goods and Services Tax (GST) would be cancelled and replaced with the Sales Services Tax (SST).
HBA: We do not have the data to compare the impact of GST versus SST but if this policy can help reduce the cost of construction of properties, HBA is in full support of such a move.

READ: 4 types of commercial properties investors can consider

2) Allowing federal study loan PTPTN’s borrowers to delay repayment until they earn RM4,000 monthly, and no more blacklisting of defaulters.
HBA: This will certainly help to reduce the burden of young/millennial borrowers’ as they cope with the rising cost of living and stagnant wages.

However, the government must ensure that these PTPTN borrowers’ repay their loan amount in full. Also, we would disagree with the halting of blacklisting the defaulters. Should this be allowed, with no action being taken, 

  • It will reduce the ability of the government/PTPTN to provide loans to future borrowers.
  • These borrowers could also default on other loans in the future such as housing loans. 

Long-term policies (Over a span of the next 2-5 years)

1) To build 1 million affordable homes across Malaysia within two terms of the PH administration. 150,000 affordable homes in the low-cost category (below RM75,000) and medium-cost category (between RM150,000 and RM250,000) will be built in the first term.  
HBA: This target is achievable as it aims to spread the supply of new affordable homes to meet the masses’ demand throughout a consistent and sustainable period. The proposal aligns with our views that affordable housing must not be viewed as an end-game target but rather as a mission or a journey that is continuously adjusted to accommodate current trends.

2) To create a special housing loan scheme tailored for youths who want to buy their first property.
HBA: Good move – Some of the loan’s favourable terms could include a lower interest rate or a ‘step-up’ loan repayment scheme whereby the monthly repayments payments for say the first 5-years are lower than usual. These can be increased gradually in line with the (expected) rise in income level of the borrower. However, this must strictly be for:

  • First-time house buyers only
  • Affordable properties
  • Homes meant for “owner’s occupation” and not to be rented out or for investment purposes.

3) Work with state governments to convert land status if developers want to build affordable houses. The quota for affordable houses will be increased.
HBA: Definitely a step in the right direction as both land and religion matters (considering Malay Reserved Land) fall under the purview of the respective State Governments. For the affordable housing agenda to succeed, both the Federal and State Government must work hand in hand to achieve this one goal.

4) Tax incentives will be given to companies that focus on affordable housing, especially to encourage them to use the latest cheaper technologies such as the industrialised building system (IBS) so that cost to buyers can be reduced.

property-construction-malaysia.
HBA: Thums up to this initiative, as the best channel to deliver affordable homes to the rakyat is private developers. HBA has in fact provided a similar suggestion in the past for the government to provide more incentives such as a ‘special tax scale’ and ‘fast track approvals’ to facilitate the building of such affordable homes.

However, HBA believes that such incentives should not only be restricted to IBS, etc but should cover building affordable housing as a whole.

5) Widen the rent-to-own scheme nationally through cooperation with commercial banks by enabling such a scheme to be introduced in primary and secondary markets. Enable those who are currently renting to have the opportunities to migrate to a rent-to-own scheme if they qualify.
HBA: HBA supports such a move and had in the past suggested the introduction of a wider rent-to-own scheme that extends beyond the low-income earners to include the middle-income group as well, who are struggling to purchase their first house.

Current “rental housing schemes” are catered towards the lower income group in the form of social housing such as PPR units. Meanwhile, their middle-income counterpart who find it challenging to qualify for a traditional housing loan has no other option to fall back on.

6) Prevent landbank hoarding activity through setting a time limit for companies to complete their construction so no corporate giants can hoard land without developing them.
HBA: A great proposal as land left idle for a long period of time will not benefit the society. However, a reasonable period must be given to developers to launch their units as pressuring the developers to build too many units within a short period of time can adversely affect the property market. 

7) Incentives will be given to the smaller Bumiputera and non-Bumiputera developers so that they can compete with others on a level playing field.
HBA: It is not necessary for the government to provide such incentives. Housing development is considered as a “big capital business” and only financially sound companies should venture into them.

Instead, smaller developers should be encouraged to seek commercial and mutually beneficial partnerships among themselves in order to compete with larger developers. The former could merge or set up a consortium to embark on projects. They should not explore property development unless they are financially sound; otherwise, these developers risk abandonment of projects which will incur the wrath of house buyers.

8) Reform the PR1MA programme so that there is no more exploitation by crony developers who obtain government land at discounted prices but then reap high profits by building just a small number of affordable houses.

Source: www.pr1ma.my

HBA: This is a must for the rakyat’s sake – HBA has strongly criticised PR1MA for deviating from their original vision of delivering affordable Housing to the public. PR1MA is now partnering with private developers whereby only 50% of the allocated land area is reserved for affordable properties with the balance reserved for commercial and “lifestyle properties”.

9) Set up a National Affordable Housing Council, chaired by the PM, to bring together the work of the various agencies under one roof. This council will be tasked with overseeing affordable homes construction matters, coordinating a unified and open database on unsold affordable homes and organise a rent-to-own scheme for the B40 and M40 groups. It will ensure the sustainability of the national housing industry by ensuring fairness to the buyers and developers, including implementing the ‘build and sell’ concept more extensively.
HBA: We support this measure and have in the past called for a national task force to drive the affordable housing agenda, comprising of both federal and state government representatives as well as key regulators and agencies such as Bank Negara Malaysia and the Employees Provident Fund Board, etc.

In regards to the “build and sell” concept, HBA strongly urges the new government to make the build-then-sell (BTS) 10:90 system mandatory for all new housing projects to safeguard the interest of the rakyat and to eliminate the scourge of Abandoned Housing Projects

Under the BTS 10:90 system, house buyers only need to fork out the initial downpayment of 10% when booking a house and do not need to make any further payment until the vacant possession of the property is delivered to them. As such, the servicing of the end-financing loans do not kick in until the houses are completed with all the certifications obtained and keys with vacant possession are presented to the buyers. Perhaps, the government could consider a gradual ‘phase-in’ period, i.e:

  • BTS 10:90 mandatory for affordable housing category in 2019.
  • Subsequently, BTS 10:90 concept to be adopted for 50% of housing developments by 2020.
  • By 2022, all housing developments mandatorily adopt the BTS 10:90.

10) Remodelling the planning of the Klang Valley public transportation system from being MRT-centric, to an integrated plan involving MRT and buses to improve the existing network and access.
HBA: The public transportation system can only be successful if it is seamless and properly integrated. The key to this is having an efficient feeder bus system.  Taking Singapore as an example, there are feeder buses that run at a frequency of every 10-15 minutes during peak hours which ferries commuters from their houses to the MRT stations. Commuters are only charged minimal fares too.

Another issue that should be rectified is the MRT fares – it is currently pretty expensive and it is actually more economical for families to drive instead of taking the MRT. Although the MRT does offer discounted fares for senior citizens and children, the process of applying for such concession cards is just too troublesome as the application can only be submitted at selected MRT Stations. MRT fares must be reduced in order to encourage higher ridership and to reduce traffic congestion. An improvement in urban mobility will in turn, boost the quality of living in cities and the rakyat‘s well-being.

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Bangkok condo growth highest in ASEAN

Thursday, 07 June 2018 by vestcom_admin

The number of real estate projects, particularly condominiums, in the Thai capital is the highest in the ASEAN countries and triples that of Jakarta, which ranks second highest, according to the Thai Appraisal Foundation. Analysts around the region are closely monitoring the fast growing housing projects here.

In the first nine months of this year, new condominiums in Bangkok sprouted up at the rate of 42 per cent year-on-year.

According to the Real Estate Information Centre, skyrocketing condominium construction is caused by many factors–changing weather, flood-prone locations, more strict related law, urban lifestyles, and elevated and underground electric mass transit extension.
Government Housing Bank real estate information center director Samma Kitsin said four locations studded with condominiums are Huay Kwang-Chatuchak, the Bangna end of Sukhumvit Road in Bangkok, the tourist and industry-concentrated province of Chonburi and the seaside resort zone of Hua Hin and Cha-am.

More condominiums are on the way as developers and investors see a rising future housing demand, particularly after the formation of the ASEAN Economic Community in 2015.
Mr Samma said.Thai Appraisal Foundation president Sophon Pornchokchai sees condominium sales accounting for 70 per cent of housing market shares. The ratio of home buyers and speculators is 2:1 now.Real estate prices slightly increase by five per cent annually and there is no sign of a real estate bubble, he added. “Currently, finished condominiums are mostly occupied by the owners themselves. This is not a problem, but if it grows unstoppably, it is not a good sign and the growth is probably related to purchasing for speculation. In some countries, speculation can be prevented as banks do not give loans to speculators,“ he said.

Sourced: thailand-business

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Don’t Know Much About Property? Here Are The Top 4 Things Millennials Look For In A Property

Wednesday, 06 June 2018 by vestcom_admin

In the last decade the Generation Y (those born between 1980 and 2000) or the millennial generation, has become market dominant force with young earners who have fresh buying capacity including in the real estate market. Unlike their predecessors (Generation X), Millennials have very different tastes and lifestyle choices, which mean that they are setting new trends in home buying compared people of other generations.

In this article we will discuss the top 4 things that Millennials look for in household property.

1. Efficient, green and healthy technology

We live in an age of technology where almost everyone has a mobile device and going wireless has become the norm. Today’s buyers want their homes to be technologically fitted, with wifi capabilities and a fast internet connection. But that is not all, millennials are also adopting a more sustainable and healthy lifestyle and will thus be looking for homes with energy efficient systems, good waste management and use of recyclable materials to reduce their carbon footprint. Property development with a green footprint will certainly be a popular draw with this group of people.

2. Low Maintenance

Most millennials nowadays tend to work for long hours and are extremely money conscious, which is why they prefer homes that require little maintenance. Having low-upkeep features and fittings such as floors made of faux wood and granite countertops in the kitchen are looked upon as positives by millennials. Today’s millennials do not want to spend their spare time doing household chores; they would rather go on a nature hike.

3. Good location

Location has always been important in the real estate industry, and for most millennials the preferred location for a home is close to an urban centre where they may have easy access to services and amenities such as shopping, clinics, hospitals, public transportation, and movie theatres. Office goers may not want to travel long distances for work or for leisure. However, millennials with children may prefer someplace more open and residential.

4. Open and multifunctional interiors

During the time of Generation X, every house had spare rooms and every room was given its own key role; the dining room was for eating, the drawing room was for relaxing and entertaining guests and the kitchen was for cooking food. For the most part these rooms had their own boundaries and each room had only one function. However, millennials do not think the same way; they are looking for a home with open spaces where a dining room can also easily transition to a drawing room or kitchen. In smaller homes and condos, multifunctional spaces take on an even greater importance. Nowadays it is not uncommon to find exercise equipment or an office desk in a bedroom.

We should state that these points may not hold true for all millennial home buyers; rather think of this article as a guideline for what most millennials want from the property they looking at and what influences their decisions on whether they should invest in a property or not. Millennials will be the driving force for the real estate market in the future, so making yourself familiar with what they want now will work to the advantage of any serious real estate investor in the future.

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Malaysia Property Market Can Flourish Without HSR

Monday, 04 June 2018 by vestcom_admin

Experts believe the axing of the Kuala Lumpur-Singapore High Speed Rail (HSR) is likely to have a marginal effect on Malaysia’s real estate market, reported The Edge.

“I think some of the HSR’s hype (of bringing added value to locations along the alignment) was misplaced and might have been over-optimistic,” said Savills Malaysia Executive Chairman Datuk Christopher Boyd.

One reason is that there are already many good cross-border transport links between the two countries such as railways and air transportation. Moreover, the high expectations did not exactly result in large-scale investments within the vicinity of the HSR’s proposed stations likely due to its redundancy with existing transportation systems.

“Studies overseas have shown that in many cases, the benefits that HSR links are able to bring are often overestimated. Stations along the alignment can actually pull value away rather than bring value in.”

“It would have been a nice and convenient thing to have but it is not an essential or must-have thing to have now. It will come in time when the market is really ready for it. So (the scrapping of the HSR) is not a catastrophe or severe loss for either Malaysia or Singapore. I don’t think that is going to be a very big impact on land value,” he noted.

In agreement is Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) President Foo Gee Jen.

“Not many people are buying big tracts of land around the station locations. The investments are more small scale. The losses would be more in terms of time and planning. There was not much speculative buying around where the stations are supposed to come up.”

However, he expects the scrapping of the project to impact growth corridors like Melaka-Seremban and Muar-Batu Pahat, particularly the Negeri Sembilan’s Malaysia Vision Valley.

While the termination of the HSR could weaken investor confidence given the loss of potential spillover benefits, the government may reconsider the large-scale project when Malaysia’s debt is reduced from RM1 trillion.

“It is prudent to call off the HSR and other mega projects that can be revived when the government is in a stronger financial position.”

However, plans for major developments and infrastructure along the HSR are likely to be cancelled or put on hold.

“And for those who have paid high prices for the properties that had been planned along the alignment, they may suffer a setback. The properties in those areas are expected to lose their premium and the prices will be realigned to the level of the vicinity, but the drop of prices is not expected to be significant as our property market is still holding up,” he added.

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