5th April – 11th April
Without a local plan protecting them, heritage residential areas within Penang will remain under threat from being cleared out and developed, said Citizen Awareness Chant Group’s Yan Lee.
Meanwhile, Gagasan Nadi Cergas Bhd targets to deliver over 10,000 affordable homes in the next five years.
1) Penang heritage homes under threat due to lack of local plan
Without a local plan protecting them, heritage residential areas within Penang will remain under threat from being cleared out and developed, said Citizen Awareness Chant Group’s Yan Lee.
His statement comes after a property owner sued the state government over a proposed mega project within the Chow Thye Road area, reported Free Malaysia Today.
Lee noted that since most of the property within such area are owned by the state, the other property owners – which stand at less than 10 – will be unable to object to the project or have their views considered. The project will see 34 state-owned heritage quarters torn down, while some will be “modified”.
“When you buy a house, a local plan will tell you what would be built next door or in your neighbourhood. The plan gives you certainty. Without a local plan, they (authorities) can shift goalposts and build whatever they want, which is not fair to the rakyat,” said Lee.
“The state government must tell us why the local plan has been delayed since 2008,” he added.
Related article: 2 Penang Areas For Investment Property With Highest Appreciation
2) Gagasan Nadi Cergas to deliver 10,000 affordable homes in five years
Gagasan Nadi Cergas Bhd targets to deliver over 10,000 affordable homes in the next five years, starting with the launch of 2,800 units this year.
In fact, the group recently launched its 1,260-unit Rumah Idaman in Bukit Jelutong, Shah Alam. Initiated with the support of Menteri Besar Selangor Incorporated (MBI), the RM304 million project is aimed at providing affordable housing to Selangor’s mass population segment, reported The Sun.
Construction works for the project is set to start in Q2 2022, with completion expected in Q4 2025.
Wan Azman Wan Kamal Idaman, Group Managing Director at Gagasan Nadi Cergas, revealed that the project received “three times more registration than the units offered”, signifying that demand for affordable homes is resilient, particularly in locations such as Bukit Jelutong.
“Hence, we will ride on this strong interest and launch our subsequent affordable housing developments in hand, starting with the Idaman Elmina West in Shah Alam within the second half of 2022. It will reiterate our role in supporting the state’s target of building 30,000 affordable houses by 2026,” he said.
Related article: Exploring Urbanisation And Affordable Homes In Malaysia
3) MIDF Research remains ‘Neutral’ on property sector
MIDF Amanah Investment Bank Bhd (MIDF Research) has maintained its “Neutral” rating on the property market’s outlook amid expectations that property buying sentiment would recover after the pickup in economic activity.
The sentiments are likewise backed by the hike in property loan applications in February, increased approved loans during the first two months of 2022 as well as subdued House Price Index (HPI), reported The Malaysian Reserve.
The research house, however, warned that the stringent bank requirements continue to pose a challenge for property firms given that the percentage of total approved loans over applied property loans hovers below 40% in February.
But while the incentives offered under the House Ownership Campaign (HOC) has ended, MIDF Research expects to see more aggressive acquisition of property, on the back of economic recovery.
With this, the research house reiterated its “Buy” call for IOI Properties Group Bhd and Mah Sing Group Bhd, with target price of RM1.29 and 80 sen per share, respectively.
Related article: Here Are Over 100 Home Ownership Campaign (HOC) Properties All In One Place!
4) World Bank expects Malaysia’s economy to expand 5.5% this year
World Bank expects Malaysia’s economy to grow 5.5% this year, driven by the border reopening, recovery in domestic demand and expansion in exports.
It sees the external sector continuing to lend support, particularly that of electrical and electronics (E&E) goods as well as medical rubber gloves, reported Bernama.
However, the economic growth could slow to 4.8% due to the worsening of global condition amid the Russia-Ukraine conflict, structural slowdown in China and financial tightening in the United States.
World Bank also pointed to other risks such as the emergence of more severe COVID-19 variants and worsening supply chain disruptions.
Meanwhile, Moody’s also expects Malaysia’s economy to grow 6% this year, driven by the high vaccination rates, reopening of international borders and as the country begins transition to the endemic phase, reported Bernama.
It noted that the reopening of borders would boost the country’s tourism-related services sector.
Related article: What Will Happen To Your Home Loan If The Economy Deflates Or Inflates?
5) Office rental rate, occupancy level in Klang Valley to continue downward trend
Sentral Real Estate Investment Trust (REIT) expects the office rental rates and occupancy levels in Klang Valley to continue on a downward trend this year, amid the current oversupply situation and expected hike in supply.
Despite this, Sentral REIT, which was formerly MRCB-Quill REIT, is optimistic that the country’s economic recovery would positively impact the office space market, reported Bernama.
“The manager believes that Sentral REIT will be able to surpass these market challenges as it continues to intensify efforts to sustain revenue underpinned by its continuing strategies,” it said.
Among its strategies include prudent capital management, prudent investment to deliver diversification and growth as well as proactive management to drive organic growth.
6) Building materials cost index continues increase in March
The Building Materials Cost Index (BCI), with and without steel bars, continued to rise in March, said the Department of Statistics Malaysia (DOSM).
In fact, almost all building materials, such as bricks, steel, cement, roofing and ceiling materials, saw prices increase last month, reported Bernama.
The BCI (with and without steel bars) increased for all building categories by between 0.1% and 1.6% for Peninsular Malaysia, Sabah by between 0.1% and 0.9%,and Sarawak by between 0.1% and 2.6% in March.
Without steel bars, the BCI for all regions within Peninsular Malaysia climbed between 0.1% and 1% for almost all building categories.
DOSM attributed the hike in steel prices to the rising cost of raw materials for steel producer countries. He also pointed to the Russia-Ukraine conflict since these two countries are among the world’s biggest steel producers.
Related article: Progressive Payment Schedule for a Property Under Construction in Malaysia
7) Tropicana offers discounts, incentives to property buyers in new campaign
Tropicana Corp Bhd had unveiled its Tropicana Power Up campaign as the company’s way to reach out, reward and grow its Tropicana community.
To last until 30 June 2022, the campaign will see property seekers enjoy down payment assistance, sale and purchase agreement signing bonuses, double referral rewards as well as complimentary loan and memorandum of transfer stamp duties, reported The Sun.
The promotion applies to both completed and upcoming commercial and residential projects across Tropicana’s 17 developments in nine townships within Malaysia.
The company noted that the campaign runs in tandem with improving property sentiment which was buoyed by rising home seeker appetite, foreign investor interest as well as positive macroeconomic indicators as the country moves into endemic transition phase.
