Property market to perk up

It seems that now is a good time to buy property.....

Written by Sharon Kam

Sunday, 05 April 2009 15:28

KUALA LUMPUR: The Malaysian property market is not heading towards slump even though there may be a slowdown now as attractive financing packages and more realistic prices from sellers should perk up sentiment, according to real estate industry experts. They said the current "wait and see attitude" by potential property investors and homebuyers may end soon, as sentiment is given a boost by the attractive purchasing environment. Besides low lending rates, the financial crisis has prompted sellers to become more realistic in their prices and developers are coming up with attractive investment deals. This was the view of real estate industry experts who spoke at "The Edge Investment Forum on Real Estate 2009: Residential property values: How low can we go?" on April 4. Most of speakers were optimistic and enthusiastic about the outlook of the property sector in the country despite the current slowdown. "Despite the current recession, the Malaysia real estate market is not headed towards a slump and there is still buying power in the marketplace," said Zerin Properties CEO Previndran Singhe. This was a marked improvement from the last quarter of 2008 when there was almost no transactions at all. "Thanks to the low interest rates, people now want to invest in real estate and are keen on landed properties," Previndran said citing a sale of a parcel of land in Damansara Heights for RM610 per square foot (psf) in February this year. "Transactions may be slow but they are happening. There is new capital inflow coming in. Even though it is very little, it's already flowing in," he added. Another speaker Ho Chin Soon, director of Ho Chin Soon Research Sdn Bhd found that the property market had not experienced a bubble and hence there would not be a bust. With commodity prices inching upwards again, there are visible signs that people are buying properties again, he said citing how a major developer managed to close RM25 million sales from one of its projects in just one day recently. Some developers offering attractive financing packages to customers such as Sime Darby Property Bhd and SP Setia Group Bhd for instance had garnered encouraging sales during two recent sales campaigns while developers are eyeing opportunities to acquire land, he added. The forum also included a panel discussion on "Property investment strategy in a recession with hyper-inflation - where should you put your money?" Members of the panel were Knight Frank Malaysia managing director Eric Ooi, property investor Kam Wei Tsung and Hectares & Stratas managing partner Stephen Tew. Ooi provided an outlook on high-end high-rise residential property in the Klang Valley where prices had generally declined between 10% and 20% from peak prices. The market, he said, while it would soften a bit more in the short term, should provide prospects to seek good deals. "We are seeing buyers starting to commit to purchases. This could signal the end of the wait and see period. Sales are starting to happen already because buyers see that the prices of the properties they have been eyeing have dropped to a level they like," said Ooi. Those still hoping for fire sales might want to rethink again as residential property investor Kam, who is also Platinum Property Ventures Sdn Bhd director, did not foresee fire sales. The supply and demand for housing were at an equilibrium while property prices in the country have been conservative compared with Singapore and Hong Kong. Speaking on the pros and cons of investing in property, Kam provided some tips to consider when investing during a recession, including a focused investment strategy. Tew, who is also founder shareholder/director of Axis REIT Manager Bhd, gave some pointers on the investment potential of industrial and commercial properties. Favouring semi-detached and detached factories for the space they come with and shophouses for the control owners can have over them; he said the yields were between 8% and 10% per annum for industrial property while commercial properties could offer fair yields of about 6.5% to 7.5% per annum. Managing partner of Chur Associates Chris Tan, who spoke on the topic "Nightmares of a Landlord", related some nightmarish situations landlords face. Resolving problems with tenants through the current set of legal remedies took a long time and in most cases, seem to favour the tenants. An association for landlords should be established to help level the playing field for landlords, Tan said. "An association will give landlords the opportunity to share information and set up a tenants database which will help in the tenant screening process," he said. He added that a landlords association could help lobby for better regulations on landlord and tenancy thus making Malaysia an attractive place for international companies to invest in Malaysian properties. Tan drew his experience in real estate from his involvement in the International Real Estate Federation, both regionally and locally. He was part of the technical committee of the Prime Minister's Department to devise strategies to stimulate the property sector in Malaysia. He helped formulate the blueprint of the Malaysia Property Inc (MPI) to position Malaysia as an international property investment destination. The Forum held at the Sime Darby Convention Centre on April 4 saw more than 600 participants. This is the third real estate forum organised by The Edge and presented by UOB Malaysia exclusively for The Edge readers. Several developers also showcased some of their latest developments and attractive deals for purchasers at the Forum including, SP Setia Group, Sunway City Bhd, Mah Sing Group, IOI Properties Bhd and Island & Peninsular Sdn Bhd. Several participants also took home 12 Ho Chin Soon Research wall maps worth RM36,000 in a lucky draw.

One Malaysia......... Sorry,not this One.........

Enter Najib, with baggage — The Economist

APRIL 3 — One could certainly say that Datuk Seri Najib Razak was born to be prime minister. He is the son of Tun Abdul Razak, the second man to hold that job following independence from Britain, and the nephew of his successor, Tun Hussein Onn. Elected to Parliament aged 23, on his father’s death, he rose to become deputy to the outgoing prime minister, Tun Abdullah Ahmad Badawi.

However, Najib, who became the country’s sixth post-independence leader today, enters under a cloud of allegations, including ones linking him to a murder case, all of which he categorically denies. But some Malaysians will be wondering if he is a fit person to lead them.

Facing a revitalised opposition, in an election last year the governing coalition, led by Umno, lost the two-thirds majority it needs to change the constitution. Since then, the knives have been out for Abdullah. Despite his efforts to cling on he was forced to quit. The contest to succeed him as party president, and thus prime minister, at first promised to be lively. But party officials, fearful of the challenge from the opposition leader, Datuk Seri Anwar Ibrahim (a former Umno deputy leader), chose to hang together rather than hang separately. By Nov 2 Najib had won enough nominations to block his only rival, Tengku Razaleigh Hamzah, a former finance minister, from getting on the ballot-paper.

Like Abdullah before him, Najib comes to the job promising reforms, including of the system of preference for members of the ethnic-Malay majority for state contracts and jobs. Abdullah achieved little, though he allowed a bit more freedom of expression than had his predecessor, Tun Dr Mahathir Mohamad. Expectations for Najib are lower still. It is possible, notes Edmund Gomez, a political scientist, that he will use the worsening economic outlook as a pretext for reverting to Mahathir-style repression.

Anwar has failed to carry out his threat to topple the government through a mass defection of parliamentarians. Even so, there is a palpable fin de régime air around Umno. Abdullah,Dr Mahathir and other leaders are publicly lamenting how corruption and cronyism are rife in the party. But his opponents say Najib is hardly the man to restore confidence. In the latest scandal to which they are linking him, the Defence Ministry (which he oversaw until recently) has deferred a big order for helicopters following questions about their high price. A parliamentary committee recently cleared the government of wrongdoing, but admitted not investigating whether “commissions” were paid.

In an earlier case, a company the opposition claimed was linked to Abdul Razak Baginda, an adviser to Najib, was paid juicy fees for services provided over a contract for the purchase of French submarines. A Mongolian woman, said to have worked as a translator in the negotiations, was shot dead and her corpse destroyed with explosives in 2006. Razak was put on trial over her killing, along with two policemen. The case has dragged on for months and seen various odd goings-on, including changes of judge, prosecutors and defence lawyers at the start of the trial. A private detective signed a statutory declaration implicating Najib, retracted it the next day, saying it had been made under duress. Calls by the victim’s family for Najib to testify were rejected. On Oct 31 the judge ruled that the prosecution had failed to make a prima facie case against Razak.

The policemen’s trial will continue. A blogger who linked Najib’s wife to the case is on trial for criminal libel. None of this, however, seems likely to interfere with Najib’s accession to the prime minister’s job. A bigger threat may yet emerge from the resurgent opposition and Anwar, who nurtures a long-thwarted ambition to take the job himself. — Economist

Please continue to vote for BN if.................

Three by-elections are just around the corner and by now I believe the voters have the answers in their hearts who to vote ...............

For those fence sitters, you might want to continue to vote for BN if you are willing to see this happening again:-

(1) Khir Toyo the ex- selangor menteri besar, using tax payers money to travel around the world, funded his wife to visit his son who is studying in Australia...... an infamous Muhammad Taib another ex-menteri besar of Selangor , caught red handed in Australia because of carrying few million in his luggage but still occupying cabinet post until now.......... a chief minister name Ali Rustam who was caught involved in money politics and was ban to contest in the party post but still survive as Melaka Chief minister .....

Read reports from Malaysiakini and the Malaysian Insider and the NST

http://www.malaysiakini.com/news/101420

http://www.themalaysianinsider.com/index.php/malaysia/21966-khir-toyos-disney-tours-cost-more-than-rm1-million

http://www.themalaysianinsider.com/index.php/malaysia/21258-state-paid-for-mbs-wife-to-visit-son-in-melbourne

http://www.themalaysianinsider.com/index.php/malaysia/21980-pnsb-ceo-admits-to-balkis-misuse-of-funds

http://www.nst.com.my/Current_News/NST/Wednesday/Frontpage/20090401195556/Article/index_html


(2) Allegations of corruptions in three French submarines and Russian Suhkoi Su-30 fighter aircraft purchase that remain unanswered and few hundred million USD commissions paid to companies such as IMT Defence and Perimekar Sdn Bhd

http://mt.m2day.org/2008/content/view/19930/84/


(3) Lopsided deals that favour companies such as Plus, water concessionaires companies and hefty payment of salaries to a fail CEO

http://anilnetto.com/accountability/puncak-niaga-paid-out-rm10m-for-directors-in-2007/

(4) Land given to kuncu-kuncu instead of ordinary folks that more deserve to get the land

See how Pakatan rakyat manage to prove to BN that nothing is impossible.............

http://www.mysinchew.com/node/8967

http://www.malaysianbar.org.my/legal/general_news/guan_eng_penang_has_eradicated_hardcore_poverty.html


(5) Rampants of money politics that have no end.........

http://www.themalaysianinsider.com/index.php/opinion/khalid-samad/21056-umno-money-politics-and-corruption

http://www.bernama.com/bernama/v5/newsindex.php?id=386123

Certainly there are many more issues that I can write...............

But one thing for sure , this nation will go no where if your votes go to BN..............

One Malaysia, my foot !!!!!!!!!! there is no way we can see the light at the end of the tunnel if this country is still governed by a same party ...................

The ever " evil " Mahathir is back.....

Oh No!!!!!

Please be mindful Malaysian citizens ....The ever evil Mahathir is back.....

Now he tried to stir up racial sentiments between Chinese and Malay again......

Beware this old man ...........and also watch out his son who is competing in this week 's Umno party election......

Read below articles and you will know what I mean...

http://www.themalaysianinsider.com/index.php/malaysia/20987-dr-m-says-malays-are-under-threat-

When Mat Taib talks cock again

When Umno deputy president aspirant Tan Sri Muham­mad Muhammad Taib Mat Taib was questioned about his English proficiency, these are his answers:-

"I am aware that there are people talking about it. But this will change when someone supports a certain party”

"All my previous exams were conducted in English: the London Cam­bridge Examinations and the Malay­sian Cambridge Examinations"

Mat Taib, we still remember when you were caught red handed when carrying million of dollars in your luggage in Australia, your answer to the court was:-

"Sorry, I do not understand English........"

So now you can imagine the quality of UMNO 's politicians..................

To my dear Umno members friends, good luck to you as Umno will never discharged from herself with corruptions if leaders like Mat Taib still can survive in Umno......

Najib, you must be crazy...........

It is confirm. Mohd Ali Rustam was found guilty of breaching the party's ethic and was barred from contesting the No.2 Post.

Nevertheless, as reported in Malaysiakini, Mohd Ali Rustam will remain as Melaka's chief minister as mentioned by Najib.

http://www.malaysiakini.com/news/100391


Hello Najib, money politics mean corruption and this is a very serious allegation against Mohd Ali Rustam . Hence, there is no way Mohd Ali Rustam can continue to helm the post.

Melaka need a clean leader. If Umno don't want corrupt leader, netizens in Melaka do not deserve one too......

Najib, there is no selective punishment and certainly you has no right to speak on behalf Melaka's citizen ..........

Mohd Ali Rustam, if you are a man with dignity, please quit the post immediately.....

Najib do you mean that Ali Rustam is not good enough to be a senior leader within the party because his agents breached campaign rules(and the worst thing is that to push all the fault to Ali's political secretary), nevertheless he is good enough to be chief executive of a state?

Najib....You must be crazy.....................

p/s we have not seen any action taken by the ever efficient MACC? why so slow this time?

Branson: Make money now

LONDON - FOUNDER of Virgin, Sir Richard Branson, said on Monday that despite the current economic crisis, now is the time to make millions of dollars.

A self-made millionaire, Sir Richard said the economic downturn has provided entrepreneurs with their greatest opportunity in years, reported The Times.

'Fortunes are made out of recessions. A lot of entrepreneurs get going in the economic depths because the barriers to entry are lower,' he said. 'There are a lot of Richard Bransons that will come out of the next three or four years.'

According to a report on news.com.au, Sir Richard highlighted financial liquidity as the most important area for governments to focus on during the financial crisis.

'We cannot allow perfectly decent companies to go to the wall just because they cannot get liquidity. And if your bank is behaving badly, then shout about it because no business can afford to lose that lifeline,' he warned.

He also urged business leaders not to panic and cut jobs unnecessarily.

Sir Richard also offered small and medium-sized business some tips on how to get through tough economic times.

'You have to come up with imaginative ways of saving cash, like signing every cheque yourself. You would be surprised how much you can save even in large companies if the boss questions every purchase order that goes out,' he said.

True stories from Bolehland

By James Chin

MARCH 9 – This is Malaysia, right? Bolehland, where if you know the right people, everything is possible. Strange stories of incredible things have happened in Bolehland. Bolehland is a “can do” attitude that we must all be proud of. Anything and everything is possible.

Just like Singapore with its “Kiasu” – afraid to lose – attitude, Bolehland means there are no obstacles too hard or difficult to overcome.

We like to laugh at the Singaporeans and their kiasu ways but I must say we are better off than our pesky neighbour since our antics are far superior to theirs.

I say this because there are a few stories in the past few weeks that confirmed that you can only make it if you have the right Bolehland attitude.

I shall repeat these stories here purely for illustration purposes. I do not know if they are true or not but all have been widely reported. Again, I need to stress I am merely repeating these allegations.

Case 1. Do you know that you have to see the Prime Minister to get a Perodua dealership? I am not kidding. It seems that a Perodua dealership is a licence to print money so only the highest political office can grant this patronage.

Don't believe me? Kindly refer to the press conference and confession by Chithirakala Vasu who thanked the great MIC leader for going to Tun Dr Mahathir, then the prime minister, to help her husband to get a Perodua dealership. Is it any wonder that our PM is always short of time since he has to deal with things like Perodua dealership?

Case 2. According to the French newspaper, Leberation (5th March 2009), a Malaysian company called Perimaker received 114 million euros (about RM500 million plus) for “support and coordination services” in a submarine deal made by the government.

It looks like the government cannot buy direct like most countries but must use a middlemen or company to buy submarines. No wonder every ambitious person I meet nowadays called themselves “consultant” since talking can net you RM500 million plus. My Hokkien friends tell me that in Bolehland, the most senior consultants are called “kantow-tants”.

Case 3. One Bahasa daily devoted a full page to the phenomenon of Malay men who leave their wives for “pondan” (transvestite) lovers. The Pertubuhan Kebaijkan Sahabat Insan Malaysia (Sidim) chairman had apparentl had received many complaints from wives whose husbands had left them for she-male lovers.

No doubt, after detailed investigations and scientific surveys, the blame for the husbands’ pondan leanings will be on the wives’ attitude. The chairman advised wives to “take care of your husbands’ hearts ... pamper them ... because in these cases some husbands say that they fall in with transvestites because they get extra services, and transvestites are more devoted than their own wives."

Now all these while I was under the impression – and I have heard our highest ranked politician say it a few times – Malaysia is an Islamic country.

So how can there be a “pondan” problem among the Muslim community? What are the police doing about this national security problem? Don’t they know that the fertility rate among Malays may be affected if nothing is done to stop this problem?

What happened to Wanita Umno or Puteri Umno? Do they agree that pondan issue is due to the wives?

Case No 4. On Feb 26, all drivers in the Klang Valley were hot under the collar when it was announced that toll rates would go up. Within 24 hours, the cabinet had reversed the decision. There was great joy in the streets. The government was listening to the “rakyat”. The “rakyat” can “save” on toll.

I don’t know about you, but if you had read the story carefully, it says although there is no toll increase, the government will compensate (actually, it means pay) the highway concessionaires millions of ringgit in lieu of the toll increase.

So, who lost? The toll operators have millions without collecting and money comes from the taxpayers. No wonder drivers are celebrating that the government is “listening” to the “rakyat”. I wonder how much it will cost the taxpayers like you and me everytime the government listens to the “rakyat”.

Case No 5. Jelapang ADUN Hee Yit Foong’s first public appearance at her service centre since leaving the DAP was on March 7, apparently to meet a constituent over complaints on drainage problems.

I salute her for her commitment to look after the longkang issues. If ADUNs do not look after longkang, they might do silly things like causing the fall of state government.

What I don’t understand is why did she arrive in a silver Mercedes-Benz? In Bolehland, apparently if you have a chance to sit and enjoy a drive in a Merc, you must do it.

After all, what sort of self-respecting ADUN would be seen in anything less than a Merc or Camry? The lowest one can accept is, of course, a Proton Perdana but then again, it might break down with gearbox problems outside your service centre. Then, how to escape?

It does not matter that people suspect you of winning a blue dacing lottery ticket with tons of money suddenly. You simply must show up in a Merc to confirm the story. The DAP really made a mistake by not appointing such a smart person as State Exco earlier. What talent!

I shall share more incredible – but true – stories from Bolehland in the coming months so stay tuned.

Becareful when you invest............

For property investors, I just received the news from my friends regarding BNM raided Walton International Property Group (M) Sdn Bhd.

I have checked their website and found that the company's HQ is in Canada........

http://www.waltoninternational.com/


You can find more decription of the company in Jobstreet ..........

http://siva-my.jobstreet.com/_profile/previewProfile.asp?advertiser_id=8342

Becareful when you invest......


Bank Negara raids Walton Intl premises in 3 cities

BANK Negara Malaysia yesterday raided Walton International Property Group (M) Sdn Bhd following complaints from the public on land banking schemes promoted by the company.

In a statement in Kuala Lumpur yesterday, Bank Negara said the raids were simultaneously conducted at the premises of the company in Kuala Lumpur, Kota Kinabalu and Kuching.

The central bank advised the public to be cautious of this type of land banking schemes promoted by the company.

"Any elements of deposit-taking activities and public offerings such as interest schemes or investment in real estate schemes should be referred to the appropriate authorities such as Bank Negara, Companies Commission of Malaysia and the Securities Commission," it said.

Bank Negara advised the public to use lawful remittance channels when making payments or sending money overseas.

"A list of legitimate remittance channels can be referred at the bank's website, www.bnm.gov.my for either licensed or licensed non-bank remittance operators," it said. - Bernama

Flextronics layoffs latest blow to Malaysia ............

More bad news are coming....but sad to say this country's excessive politicking still has not stopped...sigh......

Besides 10 March's stimulus package, have you heard of new measures undertaken by our beloved government?

For them, By election and Perak State Government is more important then anything else.............

Wed 4 Mar 2009 5:48 PM HKTBy Razak Ahmad KUALA LUMPUR, March 4 (Reuters) - Malaysia, once viewed as one of the more secure economies in Asia, suffered a new blow on Wednesday as Flextronics International (FLEX - news) readied nearly 1,400 layoffs from a plant in the Southeast Asian country.

Demand for technology exports of the kind made by Flextronics, a contract manufacturer, has plunged due to the global economic slowdown and Malaysia has also been squeezed by countries with lower labour costs.

"The company reported that it was laying off the employees as it was ceasing operations at its facility in Shah Alam," a spokeswoman for Malaysia's Ministry of Human Resources told Reuters.

Companies laying off workers here need to inform the ministry and the spokeswoman said that Flextronics had notified it that it intends to lay off 1,382 workers from its assembly plant in Shah Alam, a suburb of the capital Kuala Lumpur.
Flextronics declined to comment. The Singapore-based company signalled in January it could cut jobs, hit by the global economic slowdown.
The planned layoffs come hard on the heels of redundancies in Malaysia at Western Digital (WDC - news), Intel Corp (INTC - news) and Japanese electronics company Panasonic Corp (6752.T - news).

Although Malaysia's official unemployment rate is just 3.3 percent, the spate of layoffs and the prospect of more as exports plunge has rattled the government here as it readies a multibillion package of spending to stem the effect of declining demand for exports.
Electronics account for close on 40 percent of Malaysia's exports, which are forecast to fall 24.8 percent in January from a year earlier, according to a Reuters poll released ahead of data due on Friday. (Full story)
According to a ministry official, around 45,000 workers have been laid off in the electronics industry since the start of the year.
Malaysia's economy is teetering on the brink of recession after data last week showed that the economy grew at is slowest pace in eight years in the fourth quarter, just 0.1 percent year-on-year. (Full story)
In order to preserve Malaysia jobs, the government is toughening restrictions on hiring foreign labour, although an outright ban has not been imposed on the estimated 2 million legal migrant workers.
However kicking out legal and millions of illegal workers may not be the answer, economists say, as Malaysians would be unwilling to do low-paid jobs and do not have the skills needed for higher value-added industries.
"It's one thing trying to just basically kick out foreign labour from the country, but another issue is do we have the incentives, do we have the right measures in place to attract higher value-added investment that would employ locals or have a preference for locals?" said Maybank Investment economist Suhaimi Ilias.