12,000 new houses in Perak this year

Artist’s impression of double-storey linked houses in Bandar Seri Botani

IPOH: Around 12,000 new houses are expected to be delivered to buyers in Perak this year, a 20%-30% increase from 2009.

According to Real Estate Housing Developers’ Association Perak chapter chairman Datuk Francis Lee, the estimated figure of 12,000 was based on the number of applications submitted to the local authorities for planning, building and earthwork approval in the first quarter of 2010.


»The delivery for last year was 9,000 to 10,000 houses« DATUK FRANCIS LEE

“Although the latest Property Market Report by the Valuation Department for 2009 is not out yet, the delivery of new houses in Perak for last year is expected to be between 9,000 and 10,0000, compared to 6,412 in 2008,” Lee added.

Perak-based developers that will be launching new property development projects in Ipoh starting from mid-2010 include Taiko Properties Sdn Bhd, Kinta Properties Holdings Sdn Bhd, Namcom Development Sdn Bhd, Pyhomes Realty Sdn Bhd and Morubina Sdn Bhd.

Collectively they are launching some 836 units of residential landed and high-rise properties with an estimated gross sales value of RM337mil.

The selling price of these new residential projects are between 10% and 15% higher than last year’s pricing, due to better demand and higher land, construction and marketing costs.

The launches with the highest gross sales value comes from Taiko Properties’ Bandar Seri Botani and The Thompson projects in southern Ipoh and Ipoh city, with an estimated gross sales value of RM194mil.

“To be launched for Bandar Seri Botani in the third and fourth quarters of 2010 are 317 units of double-storey semi-detached houses, double-storey linked houses, and bungalows, with an estimated gross sales value of RM79mil.

“These properties have buit-up areas of between 1,287 sq ft and 2,180 sq ft, priced between RM155,000 and RM365,000,” Taiko project manager Lau Eng Pun said.

The RM115mil Thompson project, scheduled for launching in mid-2010, comprises 46 bungalows in a guarded community with built-up areas ranging between 6,900 sq ft and 8,100 sq ft, priced from RM2.4mil onwards.

“The project, located on a 13-acre site, is between Jalan Tun Dr Ismail and Lorong Tun Dr Ismail, the most prestigious area of Ipoh city,” Lau said.

Kinta Properties is launching 136 units of landed properties, comprising linked and semi-detached houses, with an estimated gross sales value of RM31.9mil from mid-2010 onwards in Bandar Baru Sri Klebang.

“The linked properties have built-up areas ranging between 1,500 sq ft and 2,160 sq ft, priced between RM205,000 and RM298,800,” Kinta Properties chief executive officer Bernard Tan said.

In February, Kinta Properties launched 21 bungalows priced between RM449,800 and RM788,000.

Namcom Development Sdn Bhd is launching in the third quarter RM65mil worth of landed and high-rise properties comprising 158 semi-detached, double-terraced, and terraced houses in Klebang Ria, and 37 condominium units in Jalan Tun Dr Ismail.

Its managing director Chan Nam Sing said the landed properties with built-up of between 1,000 sq ft and 2,500 sq ft are priced between RM138,000 and RM368,000.

“The condominiums, with built-up of 1,500 to 3,400 sq ft, are between RM420 and RM450 per sq ft,” said Chan.

Pyhomes Realty Sdn Bhd is launching 142 units with an estimated gross sales value of RM46.4mil in Sg Siput, Batu Gajah, Pasir Putih Selatan and Gopeng in the third quarter.

They comprise semi-detached and double-storey terraced properties with built-up of between 1,980 sq ft and 3,180 sq ft, priced between RM208,000 and RM491,000, according to managing director Chan Hoong Mun.

Meanwhile, one of the largest commercial schemes in Perak being carried out now is Morubina Sdn Bhd’s RM80mil Kinta Riverfront Hotel & Suites project.

Its project coordination manager Anuar Abu Hassan said the project, comprising a five-star hotel and a 20-storey block of 249 condominum units, was 40% completed.

“We have sold 75% of the condominiums since the launch last year,” he said, adding that the project is scheduled for completion in 2011.

The condominiums with 808 sq ft in built-up are sold from RM215,000 onwards, while the 7,393 sq ft penthouses are priced from RM780,000 onwards.

By The Star

Ipoh landed properties to cost 10%-15% more in second half

IPOH: The selling price of landed properties targeted for launch here in the second half of this year will be priced between 10% and 15% higher than last year due to better demand, rising raw material and land cost.

Real Estate Housing Developers’ Association (Perak) chairman Datuk Francis Lee said that since the Asian Financial Crisis in 1997, property prices had been stagnant.

“Presently profits reached sub-normal levels in Ipoh, with margins of about 10%.

”For example, the cost to construct which include the land and raw materials, and to market a landed property with a built-up of 1,800 sq ft, is around RM200,000.

“When sold in the market, such a property is priced between RM210,000 and RM225,000, depending on its location.

“The profit should be at least 20% as there are risks that the developer have to encounter, such as late delivery due to unforeseen circumstances and the liability period for claims on defects,” he said.

Lee said that for the past six months, the property development market in Ipoh had picked up.

“The demand is rising gradually,” he added.

“The growing demand in the property market, rising raw material prices, and land cost are likely to push property prices up in the second half by 10% to 15%.

“However, if the demand drops, there will be no new projects launched because of the abnormal returns.

“This will eventually force prices to move up to a more equitable level,” he said.

Lee said the present home ownership in Ipoh is about 60%, while the remaining 40% comprised those who stay as extended families or in rented premises.

“The potential for home ownership to grow in Ipoh is there, as it has a population of about 710,000,” he said.

Lee added that the purchase of primary and secondary residential properties in Ipoh was largely driven by effective home ownership demand. And only a fraction of which is in the form of property asset investment.

“As property prices in Ipoh are largely determined by economic fundamentals devoid of speculative investment, prices of properties are relatively stable even through the recent recession,” he said.

By The Star

More foreign investors targeted for Nusajaya

GELANG PATAH: UEM Land Holdings Bhd is targeting more international investors to participate in the development of Nusajaya this year.


»Nusajaya will have enough content to attract investors and residents« DATUK WAN ABDULLAH WAN IBRAHIM

Its managing director Datuk Wan Abdullah Wan Ibrahim said the company was eyeing investors from China, India, Europe, Singapore, South Korea and the United States.

“Nusajaya is progressing well and moving on the right track and we are confident of keeping the momentum going as planned,’’ Abdullah told StarBiz.

He was speaking at the launch of “Green Programme”, a collaboration between UEM Land and Universiti Kebangsaan Malaysia at SK Taman Nusa Perintis 1, near here on Saturday.

The Green Programme is outlined under the Nusajaya Green Plan launched in December last year to ensure a sustainable development of the country’s first economic growth corridor.

Abdullah said the company was unfazed by the Dubai World saga and now the Greece debt crisis as the two were unlikely to affect the global economy.

“Even during the global economic slowdown in the last two years, Nusajaya attracted interest from both local and foreign investors,’’ he added.

Abdullah said the company believed there were always opportunitie,s even during times of economic uncertainty, as there were investors and individuals with funds.

He said the company’s high-end residential projects, East Ledang and Horizon Hills, a joint venture between UEM Land and Gamuda Bhd, had attracted a large number of foreign buyers.

Abdullah said foreigners made up 65% and 56% of the buyers at East Ledang and Horizon Hills respectively and that the projects had recorded good take-up rates.

UEM Land is the master developer of the 9,308ha Nusajaya, the key driver of Iskandar Malaysia which was launched on Nov 4, 2006.

Nusajaya comprises eight catalyst developments – Kota Iskandar (Johor State New Administrative Centre), Southern Industrial and Logistic Clusters, Puteri Harbour Waterfront Development, EduCity, Medical City, International Destination Resort and Nusajaya Residences.

Nusajaya is one of five flagship development zones in Iskandar. The other four are the JB City Centre, Western Gate Development, Eastern Gate Development and Senai-Kulai.

Abdullah said works on infrastructure and several development projects in Nusajaya were on schedule and were expected to be completed in the next three to five years.

These include the RM1.4bil Coastal Highway linking Johor Baru city centre to Nusajaya, Asia’s first Legoland Theme Park, Indoor Theme Park @ Puteri Harbour, Marlborough College, Newcastle University Medical Faculty and Pinewood Studios.

“On completion of these projects, Nusajaya will have enough content to attract investors and residents,’’ he said.

Abdullah said it would be much easier to convince and attract investors to Nusajaya as they could witness the developments taking place.

He said another contributing factor was that Iskandar received continuous support and commitment from the Federal and Johor governments.

“The support from the Federal and Johor governments is important to ensure the success of Iskandar, which in turn will ensure that Nusajaya succeeds too,’’ Abdullah said.

He said other stakeholders, namely Iskandar Regional Development Authority and Khazanah Nasional Bhd-backed Iskandar Investment Bhd, also played crucial role in determining Nusajaya’s success.

Abdullah said its close proximity to Singapore was another added advantage for Nusajaya as it would not only able to attract Singaporean investors but also expatriates and multinational corporations there.

“As the master developer, UEM Land has an enormous task to ensure that Nusajaya succeeds and looking at its progress, we are well on our way to achieving it,’’ he said.

By The Star

Aptec project civil work to start this year

Property firm, Malaysia Pacific Corporation Bhd (MPCorp), plans to start the civil work of the Asia Pacific Trade and Expo City (APTEC) in Iskandar Malaysia this year.

The combined cost of the project, including Nusa Paradis and factory outlets is expected to cost RM2.6 billion.

"We have the masterplan and are waiting for some special incentives from the Iskandar Regional Development Authority (IRDA). We hope to be granted soon," its president and chief executive officer Datuk Bill C.P. Ch'ng told reporters at the National Chamber of Commerce and Industry of Malaysia forum titled "A Strong China: Its Implications and Challenges" in Kuala Lumpur today.

APTEC, billed as the largest trade exposition and distribution centre in the region is located within its flagship Lakehill Resort City. It will comprise a trade and expo centre, shopping mall, office towers, hotels and a halal centre.

The entire project -- APTEC and LakeHill Resort City -- is expected to cost RM4.5 billion and has an estimated gross development value of between RM6.5 billion and RM8 billion.

Covering three million sq ft of exhibition space, APTEC will have the widest selection of products from China and the Asian region, with the state-of-the-art facilities and infrastructures in a one-stop sourcing and trading centre.

APTEC will serve as a catalyst in the development of Iskandar Malaysia into a regional and distribution hub, targeting Asia-Pacific's population of 800 million.

"We are also negotiating with various potential joint-venture partners as we want to look for people with the expertise to operate APTEC. We need various expertise as it is an international trade centre," Ch'ng said.

APTEC, he said, would showcase a wide variety of mass consumer products such as garments, souvenirs and high-tech electronic goods from China, India and Asean countries, at competitive prices and comparable quality options for buyers.

Ch'ng said Asean was a good alternative market as the world was also looking at China and Asia to kick start the global recovery.

"In terms of affordability, it will still be the Asia and China because by tradition and culture, we tend to save more money and spend," he said.

APTEC will also have an impact on the economy as the expo centre will serve as a direct source from suppliers and factories, Ch'ng said, adding that it will have an enormous economic spin-offs.

"You will get the price directly from the source and there is no middlemen and agents. The cost will then can be brought down which will help contain inflation and reduce the cost of living," he added.

APTEC and LakeHill Resort City are developed by LakeHill Resort Development Sdn Bhd, a joint venture between MPCorp and Amanahraya Development Sdn Bhd, which holds 22 per cent.

By Bernama