Monday 29 December 2014

Apply for licence before year ends, hotels told

PENANG Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow has urged unlicensed hotels and lodge houses in the state to apply for their temporary licences before the year ends.
Chow said that 92 out of 165 unlicensed hotels and lodge houses had accepted the offer of a temporary licence by Penang Municipal Council.
“There are still 73 hotels which have not applied for a temporary licence,” he said in a press statement.
Chow urged the operators of the unlicensed hotels and lodge houses to submit their applications and pay up to prevent any action against them.
The Penang Municipal Council had offered a one-year temporary licence to the operators from Nov 1 and they were given two months to accept the offer.
The purpose of the temporary licence is to give the operators a longer time to obtain a proper licence.
Those who do not accept the temporary licence will have action taken against them. 
From Jan 1, fines will be issued, equipment seized from premises and operators taken to court.

Saturday 27 December 2014

Density hike in Penang’s famed Batu Ferringhi area raises alarm

Density hike in Penang’s famed Batu Ferringhi area raises alarm

The proposed project in Batu Ferringhi is raising concern among residents as the density of the area will be increased. – Graphic courtesy of residents, December 27, 2014.
The proposed project in Batu Ferringhi is raising concern among residents as the density of the area will be increased. – Graphic courtesy of residents, December 27, 2014.The Penang government’s move to increase building density at a site in the idyllic Batu Ferringhi tourism belt has raised alarm among locals and foreigners who live and have invested in homes in the island’s most popular beach area.

Residents told The Malaysian Insider that the State Planning Committee (SPC)’s plan to double permissible density from 15 units per acre (0.4ha) to 30 units in January would lead to congestion and over-population, while having an adverse impact on Batu Ferringhi’s environment and charm.
The residents who sighted a Penang Island Municipal Council (MPPP) document on the density change for a planned project there said it also raised questions over the state authority’s planning and decisions on future development of the island in the northern part of Malaysia.
Batu Ferringhi comprises a mixed community of local Malaysians, MM2H (Malaysia My Second Homes) registrants, retirees and self-employed foreigners. Most opted to stay there as they had been assured of a green tranquil environment in the low-density residential part of the area, close to an international school.

“If this building proposal is approved, it’s a clear message to all MM2H and other foreign house buyers that the precondition when you bought the property can drastically change overnight,” said a resident who only wanted to be known as Andreas. “No property is safe anymore.”
Of the thousands of residents who would be affected, about 18 homes in the Sungai Mas neighbourhood are within 20 metres of, and directly adjacent to, the project site.
Some of the residents received a letter from the MPPP about the project on August 18 this year, as required by law due to their close proximity.
None of the project details were initially made known to them. It was only when the residents visited the MPPP to solicit details that they realised the size of the project.
According to the residents, the proposed plans appeared to include a 38-storey low-medium cost block of flats, a 48-storey medium-cost block and a 49-storey condominium tower. It also has a shopping mall.
“We went to the MPPP and we were shocked,” said Andreas. “It was really a huge building planned just metres away from our house.”
There was concern that the towers would become inappropriate landmarks, visible from a distance, spoiling Batu Ferringhi’s traditional tourism image.
The MPPP subsequently held a hearing, attended by council president Datuk Patahiyah Ismail, on September 30.
The project is planned on the site of Kampung Chetty whose residents are being evicted with compensation.
Residents are concerned that while MPPP is saying that the project had yet to be approved, many villagers who resided on the site had already moved out and part of the land appeared to have been cleared.
“This is supposed to be one of the main tourism sites in Malaysia,” said Andreas, adding that the project would cause a lot of nuisance to residents in the area.
“If I sell the house, as a foreigner, I will have to sell this house at a lower rate and buy a new one costing at least RM2 million as per the current regulations.”
Another resident who wished to be known as Glen said a high-density project in Teluk Bahang on the same coastal stretch is already causing heavy construction-related vehicles to frequently drive through Jalan Batu Ferringhi.
He said other famous tourism sites like Pattaya and Phuket also had development near their beaches, but they were not high-density, high-rise projects.
There are also concerns on whether the public utilities in the area can cope with a surge in population. The sole public sewage treatment plant there saw spillage of effluents in January last year that led to pollution of the river and a section of the beach.
“Is the sewage plant prepared for the increase in population?” Andreas asked.
The Batu Ferringhi and Teluk Bahang belt also does not have a fire station. The nearest station is 12km away in Tanjung Tokong.
Andreas said he was disillusioned by how things in Penang had degenerated. “We used to invite a lot of friends to come here to visit Malaysia. We felt like ambassadors for Malaysia,” he said.
Showing news clips that described Penang as one of the best places to retire, he said: “I can’t say that anymore.” – December 27, 2014.
Residents fear the proposed highrise project will be a blight on the landscape of Batu Ferringhi. – Graphic courtesy of residents, December 27, 2014.
Residents fear the proposed highrise project will be a blight on the landscape of Batu Ferringhi. – Graphic courtesy of residents, December 27, 2014. - The Malaysian Insider

Correction anticipated in uncharted waters

Correction anticipated in uncharted waters

Sittampalam: ‘Price growth decelerated in 2014 and is expected to further decelerate in 2015’.
Sittampalam: ‘Price growth decelerated in 2014 and is expected to further decelerate in 2015’.
THE year 2014 saw a number of government initiatives help to put the brakes on escalating property prices. While these have slowed the quantum of price increases, the cost of homes continue to be remain stubbornly high and issues on affordability persist. 
No longer are high prices associated only with properties in the Klang Valley, Penang and Johor. The trend has crept into other major towns.
In a report by Khazanah Research Institute in November, the government-linked research said “our house prices on average cost much more than three times annual median income... our houses are more expensive than those in Ireland and Singapore.” The Malaysian median income is RM3,626.
The report also said that at 21%, the profit margins of our property developers are high – almost twice those in the United States (12%), 1.2 times those of the UK (17%) and higher than Thailand (14%), although Singapore has higher margins (25%).”
The past year saw a series of government attempts to bring some form of normalcy to property prices. The most important was the banning of developers interest bearing schemes (DIBs) which, coupled with easy credit, nurtured and oiled speculation. Lending rules based on net income, instead of gross, also resulted in high loan rejections, forcing buyers to walk away. The resumption of real property gains tax (RPGT) with more teeth was another deterrent, although this was not as strong as the first two.
Property consultants say these measures have resulted in more genuine buyers and investors and fewer speculators; developers complain a slowdown has resulted. When developers complain about “a slowdown”, they are referring to “slow sales at property launches” where they sell directly to buyers. Instead of hanging a “sold out” after two weekends, they may need a longer time to sell, property consultants say. 
But the overall market does not comprise developers units. The bulk of the market, 70% to 80%, are driven by sub-sales, or the secondary market where buyers buy from owners. This market is “still active”, if hampered by financing.
An agent says “the property sector has been gambled nicely before 2014”. The days of getting 25% to 30% profit margin on disposal is over.
Agents worth their salt will not tempt buyers with a 30% profit, “not even a 10%-15% profit margin on flipping,” says one.
Poor 2015 outlook 
The Malaysian property market enjoyed a boom for five years just after the 2008 US subprime crisis from 2009 to 2013, says Association of Valuers, Property Managers, Estate Agents and Property Consultants (PEPS) president Datuk Siders Sittampalam. 
The price correction anticipated in 2008, the year Lehman Brothers fell and precipitated the Global Financial Crisis, did not materialise, he says.
“The growth in the market slowed down with the cooling measures announced in Budget 2014, unveiled in October 2013,” he says.
Thereafter, the past 12 months saw a slower price gain, “indicating the market is shifting out of rapid price escalation, (which has come about) without fundamentals,” he says, who is also PPC International Sdn Bhd managing director. 
“Price growth, in general, decelerated in 2014 and is expected to further decelerate in 2015,” says Sittampalam, highlighting several reasons. 
There were a large number of residential property launches in 2012 and 2013. These projects will be ready for occupation next year, he says.
Most of these properties were purchased on DIBs; purchasers have two choices; they either flip or they start paying mortgage payments. But even as this deluge of properties hit the streets, lending rates are expected to increase and house ownership will become less affordable along with the tighter lending, says Sittampalam. “Sentiment is expected to deteriorate from 2015 to 2016,” he says.
Adding to this conundrum is the implementation of the Goods & Services Tax (GST) with effect from April 1. Inflation is expected to increase. Inflation, measured by the Consumer Price Index, rose to 3.0% in November this year from 2.8% in October, contrary to a forecast of slower rise, says Sittampalam. 
With GST, inflation is expected to increase further next year. Although residential properties are exempted from GST, developers will not be able to reclaim GST input tax. This cost will be passed down to the buyers to some extent,” says Sittampalam. 
Oil factor
As localised issues slowed the market, a major shake-up in the world which is of some consequence to Malaysia, has entered the scene the last couple of months.
Oil price has dropped more than 40% to around US$60 a barrel since June. Besides the politics in Russia and tensions in the Middle East, the oil price plunge is the biggest shock for the global economy this year. The chaos has dampened the overall global outlook considerably. Malaysia is a net oil exporter and oil revenue funds the economy.
Says Sittampalam: “Declining oil prices will further impact national earnings. This will create pressure on asset pricing, including real estate value and rental. However, since the Malaysian property market is not very much held by foreign purchasers, global market sentiments will not have a direct impact on Malaysian property market,” Sittampalam says.
Several quarters conclude that the ringgit slide may spur foreigners to enter the market, particularly Singaporeans but this may not materialise.
“The continuous weakening of Malaysian currency, a double edged sword, may deter foreigners as sentiment turn poor,” Siders says.
Another property consultant, Khong & Jaafar group of companies managing director Elvin Fernandez, shares similar views. “Oil prices are not just going to bounce back in the next one to two years. 
While certain quarters say the there are ‘positives’, as in cheaper properties, cheaper cost of production, the repercussions may be far larger than previously anticipated.
“A weakening currency is cause for concern. How low will it go and for how long... are two major concerns. But once the currency settles and stays at a certain level, it may attract investors to come in. Any element of uncertainty is viewed unfavourably and discourages many from putting down their money.”
The falling British pound, as a result of the 2008 Global Financial Crisis, did not spur investors to buy into British properties until it hovered around RM5 to £1 in the early months of 2009 from about RM6 to £1 in 2008. 
Another aspect of a weakening ringgit is that those who have bought earlier will not be happy, says Fernandez, because they would perceive that their investments have depreciated, for eg. Singaporeans who bought in Johor earlier. 
“It is a double-edged sword,” says both Sittampalam and Fernandez.
Oil, houses and offices
Elvin concludes that the Malaysian residential sector will remain strong despite the oil price plunge because this sub-segment of the property market is held by individual households who “lend certainty and strength to the sector.” If it were held by speculators, they would want to cut losses, says Fernandez, which is why it is so important to remove excessive speculation.
Unless the oil price plunge triggers something on the scale of the 1997/98 Asian Financial Crisis, the residential market will be relatively strong, he says.
During the 1997/98 crisis, transaction volume dived 32% while value plunged 47%, data from the National Property Information Centre (Napic) shows.
The fall of investment bank Lehman Brothers in 2008 did not cause the Global Financial Crisis, but precipitated it; the unravelling of the oil price may culminate into something else, or it may not. Consultants anticipated a correction in 2008, which did not materialise. 
But there was a 20% drop in both the high end condominium market and the office market, Fernandez says.
It is a different story in the office sub-segment and retail segment, however. Already flashing red lights with the oversupply, a large part of the premium office market is supported by the oil and gas (O&G) sector, says Elvin.
Most of the prime office buildings around the Kuala Lumpur City Centre – as with the high-end condominium projects – are occupied by oil companies and their expatriates.
“Oil companies will have to cut cosst. Rent is one of them. The net effect of this situation brings (property) prices down. If rent comes down, it drags down the capital values. Yield may trend higher because the risk has increased. But there will be a time lag to this because rental is sticky on the downside because of its contractual nature,” says Fernandez. 
On the weakening ringgit, the slide would not be so much if not for the oil price drop, he says. 
Debts, debts and more debts 
Household debt, reported to be at a record at 86.8% of the economy, is still high. Tight lending rules are expected to characterise the market next year as the government is serious about cutting debt levels.
With the GST coming in, households will find it even more difficult to manage their household income. “Their spending will be crimped,” says Fernandez. This will weigh down sentiment.
On a positive note, Fernandez says the residential market is expected to remain strong but some type of properties and certain locations may undergo some form of correction.
This, says Fernandez, is not something extraordinary. “This kind of correction has been happening in the past two years except that the correction has been camouflaged by developers giving incentives and various forms of freebies,” says Fernandez. 
When developers give incentives, it is actually “a de facto discount to prices.” Therefore, that itself should be considered as a price correction, says Fernandez.
What is needed now as we enter the new year is to educate buyers. Quantify these incentives. A house buyer must ask himself: “Am I buying the house for RM800,000 or RM600,000 minus the incentives?, says Fernandez.
It is not easy for buyers to calculate the real cost of the house. If a buyer can know the true cost of what he is buying, he can compare prices with the secondary market. The objective is clarity and transparency, he says. 
Lending institutions today based their lending on the headline price, that is the house price plus the incentives.
“There is a need for lending institutions to lend based on the headline price, less the incentives. This is one way to reduce household debt of which 52% are house mortgages.
“Only when a buyer knows the real price, without the incentives, will he become a more intelligent buyer. Both purchaser and lender must know the true price of the product,” says Fernandez. Based on these factors, the market is expected to see a further price correction and consolidation next year. 
The commercial sector, office and retail space, which is undergoing an oversupply situation, will also see a correction in rentals. 
In addition, with lending cost increasing along with widening household debt ratio, the retail market is bound to see a major correction, says Sittampalam. - The Star

Malaysia has liberal policies on foreign ownership

Malaysia has liberal policies on foreign ownership

Holt says buying land in Thailand is more complex.
Holt says buying land in Thailand is more complex.
EVEN as the Asean Economic Community (AEC) heads towards the goal of regional economic integration by 2015, the regional property markets continue to see restrictions among member countries. 
Here is a quick roundup of Asean 5 comprising Singapore, the Philippines, Indonesia, Thailand and Malaysia. 
The conclusion is that Malaysia seems to be the most liberal in the case of foreign property ownership although land is a state matter. If a foreign national wishes to purchase a residential property in Malaysia, he must therefore make an application to the state authority to obtain the state consent before he completes the transaction. If this is not complied with, the sale or disposal can be rendered null and void.
Even with this additional level to overcome in order to complete a purchase, foreigners can own and purchase freehold land and other types of properties, landed and high-rise projects, industrial and commercial properties, anywhere in the country as long as they are prepared to fork out a minimum of RM2mil. Only Malay reserve land are prohibited. 
They can own properties 100% under their names. Therefore, despite the various pricing thresholds in the different states and the need for state consent, these restrictions seem minute compared with the compliances in other countries. 
While the current interest among Malaysians and well-heeled Singaporeans are Britain, Australia and the United States, perhaps in the very distant future, the property markets closer home will be more appealing and the buying process more cohesive and integrated among the people who reside in this region.
Knight Frank Asia-Pacific head of research Nicholas Holt considers four of these five markets. 
Thailand
The last couple of years saw the marketing of Thailand’s condominiums in Malaysia. Foreigners are allowed to buy into this market as long as local Thais own 51% of the project. This is by far the most straightforward of purchases among individuals and corporations. Buying land is more complex. 
A number of foreigners have bought into this market but the number is not big with Malaysian, Singaporean, British, and Hong Kong investors among the investors. Compared to the Singapore and Hong Kong real estate, Thailand is many times more affordable for investors from these two countries. People buy into the market because they like the culture and shopping opportunities there. 
The political uncertainties and the disruptions to law and order have not dampened appetite. Every couple of years, an issue erupts but the city bounces back. Thai developers sell quite well. Bangkok, Phuket are the top destinations, followed by a lesser degree of interest in Pattaya and Chiangmai, and a smaller number in Koh Sah Mui. 
Malaysia
The key markets are Iskandar Malaysia in Johor, Penang in the north and the Klang Valley. There is price pressure here and land is a state matter with different pricing limits for foreign ownership. However, they are allowed to buy freehold, landed properties and high-rise condominums in these three most popular areas. Foreign buyers in Penang are subject to a minimum threshold of RM1mil for condos and RM2mil for landed properties on the island, and RM1mil for all types of properties in Seberang Prai on the mainland. 
In Johor, the minimum price cap is RM1mil but they are allowed to buy most types of properties, while in Selangor it is RM2mil in most of the districts. In the Federal Territory, the minimum threshold is RM1mil.
These restrictions aside, the last couple of years have seen a greater interest in locations such as Kota Kinabalu in Sabah among Asian buyers. Malaysia also has a Malaysia My Second Home programme under the Tourism and Culture Ministry which is open to all countries. The programme has numerous requirements which include a minimum monthly income, minimum liquid assets, a fixed deposit, plus various other rules. It was launched in 2002. 
Singapore
This market has always been attractive to Malaysians, Indoneisans and Chinese nationals. Prices have kept going up from 2009 to 2013, prompting multiple rounds of cooling measures. The market has been going down for over a year and will continue to cool in 2015. The commercial and office market is quite strong. 
In October the government said there was some distance to go in achieving “a meaningful correction”, signalling “an engineered slowdown”.
About 80% of housing stocks is with Housing Developers Board units while 20% in private housing market but this 20% plays a significant in the overall market. When a project comes up, the prices move up, and fingers point towards the foreign buyers but the reality is that, it is the Singaporeans who are pushing up house prices. Therefore, it all depends on what the government want, and how far they want to drive prices down. 
Interest rates could likely inch up midway through 2015 in tandem with the rates in the US; challenges are expected as the US dollar has an indirect effect on the Singapore dollar. It is packaged to a basket and US dollar makes up a large part of it. The government may possibly taper stamp duty but this is still uncertain. Singapore is a good market for the long term and investors like the safety and liquidity aspect of their investments.
Indonesia
It is a bit more complicated here and the market is cooling. Foreigners are restricted as the market is regulated. People buy leaseholds through proxies and corporations. Legality of some of these transactions may be questionable. President Joko Widodo was thinking of opening up the property market but the understanding is that it is not going to happen. Jakarta properties is predominantly a domestic market and a foreigner is not going to get freehold title like in Malaysia. The Indonesian market is regulated. 
The Philippines
Knight Frank declined to comment on this market. According to various blogs and websites, investing here seems trickier than in the other Asean 4. Purchasers have to be 100% in the name of a Filipino spouse. In the case of a corporation, it must be 60% Filipino-owned. - The Star

Saturday 20 December 2014

6% levy is looming on the horizon

6% levy is looming on the horizon

JMBs and MCs are non-profit driven and exist to act as a body for stratified building owners.
JMBs and MCs are non-profit driven and exist to act as a body for stratified building owners.
THERE have been recent public outcry and protests against the imposition of the goods and services tax (GST) on the maintenance charges and sinking fund for all stratified developments in Malaysia save for low- and medium-cost stratified development areas which were recently “exempted” from GST under the gazetted GST Exempt Supply Order dated Oct 13, 2014. 
Do they not know that to grant “exemption status” is a misfortune? Do they not know the repercussion? It literally means that there would be no relief to the lower income group, despite their residential developments being listed under the “exempt supply list”. The Government thinks that it has relieved those living in low- and low-medium cost stratified units and therefore the owners should be happy. But the reality is they are now forced to increase their maintenance collection by 6% because they have to pay higher bills to their service providers, contractors, suppliers and utilities, among others, for the maintenance and management of the common property.
They cannot run from GST charges from their service providers, contractors, suppliers and utilities in terms of GST input tax, which is not claimable from the Royal Malaysian Customs Department, whereas under the “zero-rated” supply, the input tax charged by the service providers is claimable. Instead of helping to ease the burden of the lower income group, the Government has unwittingly made them the victims in the implementation of GST.
As there is great confusion on the ground among the public, lawmakers, politicians and the media, we would like to clear up the confusion for the benefit of public, particularly strata parcel owners so that they can have a better understanding of the impact of GST on stratified developments.
Strata concept
Call it by whatever name, Joint Management Body (JMB), Management Corporation (MC), Residents’ Association (RA), they are all basically a community association of property owners looking out for their best interest. In the first two, it is a requirement by law for strata titled properties under the Strata Titles Act, 1985 and the new Building and Common Property (Management and Maintenance) Act, 2007 (BCP) where a body corporate is formed, whereas Residents’ Association is a voluntary organisation registered as a society. 
The JMB and MC maintain, upkeep, refurbish, upgrade and safeguard their own common properties including common facilities in a stratified development through the contributions by parcel owners. In essence, it is the parcel owners who through their own monies pay for the upkeep and have a say in how their homes and investments are to be managed and maintained.
Very often, only a small percentage of owners in condominiums or other types of strata titled development (whether vertical or horizontal) are interested in how their properties are managed. Although these are voluntary positions, it has to be taken seriously because it involves people and their investments. Owners’ corporations are headed by volunteers who are fellow owners elected at an AGM to serve the other owners. They take the office bearers designation of chairman, treasurer, secretary and committee members. This is a form of “common-interest governance”. If you own a property with common property, you automatically become a member, like it or not. That’s strata living for you.
JMBs and MCs are not in the business of ‘doing business’
Under Sections 3(1) and 3(2) of the Goods And Services Tax Act 2014 (Act 762), JMBs, MCs and RAs are deemed to be carrying on a business, whether or not it is for pecuniary profit; and are therefore, unwittingly classified by the Royal Malaysian Customs Department as GST standard rated tax supply entities. An excerpt of the said section is as follows:
Meaning of “business”
Sect 3 (1) In this Act, “business” includes any trade, commerce, profession, vocations or any other similar activity, whether or not it is for a pecuniary profit.
(2) Without prejudice to the generality of any other provision in this Act, the following are deemed to be the carrying on of a business: (a) the provision by a club, association, society, management corporation, joint management body or organisation (for a subscription or other consideration) of the facilities or benefits available to its members or parcel proprietors as the case may be.
However, in reality, there is absolutely no “carrying on” of business for pecuniary profit whatsoever by the JMBs and MCs in the maintenance, upkeep, refurbishment and safeguarding of their common properties in a stratified development area. 
These entities are non-profit driven and exist to act as a body of owners who “self-manage” their own community. The owners pay maintenance charges and sinking fund not because they want to but they have to. No one is profiteering from the maintenance charges and no one is gaining money from it. How can the imposition of GST be regarded as a consumption tax when it is not even a choice? Do they not know that JMBs, MCs and RAs are exempted from paying income tax? Then, logically no income tax, no GST.
High defaulters’ rate/GST penalties
In any strata property, there will always be defaulters and insufficient collection of maintenance fees will affect the wellbeing, harmony of its people and financial health of the JMB and MC, eg. medium-cost apartments where the collection rate is only 40%-60%.
The issue is that GST needs to be paid on total billing and not actual receipts or collections. How will the JMB and MC be able to make ends meet? 
Must the JMB and MC now guise up two sets of billings like some dishonest corporation which has bogus accounting?
Even for the late filing of GST, the penalty is a fine up to RM50,000, and imprisonment of up to three years, or both. That’s a liability to a committee member. If that is the case, who wants to serve in a voluntary position when our Government is trying to inculcate the spirit of volunteerism? Then, you also have penalties, fines and prosecution for delays, incorrect returns, mistakes or negligence in GST filing and records.
Zero engagement, public relations exercise non-existent
There was practically no public engagement, consultation or attempt to seek feedback from the stakeholders who know best on management and maintenance of stratified properties. This simple routine exercise of imposing GST has turned controversial due to lack of apparent justification, given the magnitude of the increase and scarcity of explanation. There is a lack of thought that went through this GST for stratified properties. 
If such a simple task of imposing GST cannot be carried out diligently and in a responsible manner, we must continue to be apprehensive whether its collection will be properly handled.
Know the differences between GST Standard Rated Tax Supply entity and GST Exempt Supply entity:
Standard Rated Tax Supply JMB/MC (Net effect: GST = 6% charges)
1) Maintenance charges are mandatorily increased by 6% in the form of GST Output Tax that is allowed to be set off with paid GST Input Tax in the expenditure for the maintenance and management of common property in the stratified development area. 
2) Need to register as GST Tax Supply Entity.
3) Additional costs for GST compliance software and hardware.
4) Recurrent additional cost for manpower to file GST with maintenance of proper records.
5) Exposure to penalties, fines and prosecution for delays, mistakes or negligence in GST filing and records.
GST Exempt Tax Supply JMB/MC (Net effect: GST = 6% charges)
1) Maintenance charges need to be increased by 6% in order to meet increase in expenditure due to GST Input Tax in the expenditure for the maintenance and management of common property in the stratified development area.
2) No need to register as GST Tax Supply Entity.
3) Free from liabilities of item (3), (4) & (5) above.
Zero rated-tax supply
The National House Buyers Association (HBA), the Association of Valuers, Property Managers, Estate Agents & Property Consultants in the Private Sector Malaysia (PEPS), the Royal Institution of Surveyors Malaysia (RISM) and the Malaysian Institute of Professional Property Managers (MIPPM), recently organised a press conference on the subject of GST and had on Dec 1, 2014 submitted a petition to our Prime Minister and in his capacity as the Finance Minister titled: “The Petitions by HBA, PEPS, RISM and MIPPM and the Clarifications as to the Levy of GST on Stratified Development Areas”. 
Conclusion
We urge the Government to grant the “zero-rated status” to all JMBs and MCs as well as RAs. We then can say that Malaysia builds first-class buildings and also has money to offer first-class maintenance, instead of first-class buildings and third-class maintenance.
Footnote: 
Readers may wish to upload more details of HBA, RISM, PEPS & MIPPM – Petition and the 23 slides presentation titled: “Clarification on the Impact of GST on Stratified Development Areas” from any of our websites.
Chang Kim Loong is the honorary secretary-general of the National House Buyers Association (HBA): www.hba.org.my, a non-profit, non-governmental organisation (NGO) manned by volunteers. This write-up is also contributed by Wong Kok Soo, advisor to PEPS. - The Star

Thursday 18 December 2014

Penang island gets city status

Penang island gets city status

View of George Town, Penang. - Filepic
View of George Town, Penang. - Filepic
GEORGE TOWN: The state government’s application for the Penang Municipal Council (MPPP) to be upgraded to a city council has been approved by the Cabinet. 
The Penang Island City Council (MBPP) will be formed to replace the MPPP.
State Local Government and Traffic Management Committee chairman Chow Kon Yeow, who disclosed this yesterday, said the Urban Wellbeing, Housing and Local Government Ministry had approved the request in a letter dated Dec 10.
“The letter stated that the Cabinet approved the application on Nov 7. The ministry also approved extra posts required by MBPP, which could come up to several hundred for officers and staff.
“Another approval concerned the revision of the boundary of administration of the new city council, which will include reclaimed areas. 
“Any future application for development will come under the city council. This was previously handled by the state town and country planning department,” he told a press conference yesterday.
Chow said further details would be revealed after the Yang di-Pertuan Agong proclaimed the status elevation.
The state government had applied for MPPP to be upgraded to a city council in 2010.
Chief Minister Lim Guan Eng had said then that the MPPP should be upgraded as George Town was awarded the Unesco World Heritage City status.
George Town was the first town in the country to achieve city status when Queen Elizabeth II conferred it the status in 1957.
But when the George Town City Council merged with the Penang Rural District Council to become the MPPP in the 1970s, it lost the city status.
Talks to upgrade George Town’s status had been going on since 2001 under the then Barisan Nasional administration before a formal application was submitted by the Pakatan state government. - The Star

Wednesday 17 December 2014

The Straits Regency For Quick Rent - RM2500

Big Condo, Small Rental
The Straits Regency Condominium - A Home For Expat
Persiaran Tanjung Bungah 3, 11200 Tanjung Bungah, PenangOnly RM2,500pm for 1,670 sq. ft. condo
Below Market Rate

The Rental is Right! Cheaper Than The Cheapest!

Your Dream of A Home Can Come True Now! If price counts, see this home now before it is grabbed by others!

This condominium has it all!!!


Property Details

Type: Condominium
Tenure: Freehold
Developer: Taman Ratu Sdn Bhd 
Location: Tanjung Bungah
No. of Bedrooms: 4
No. of Bathrooms: 4
Built-up: 1,670 sq. ft.
Fully furnised and move in condition
High floor with panoramic seaview
Motivated owner
Priced to rent quickly at RM2,500 per month

* Strategically located near Dalat School, Tenby School, TAR College, beaches and all amenities
* Good neighbourhood surrounded with landed properties and high end condominiums
* Worth renting as the rate is among the cheapest in this neighbourhood of Tanjung Bungah yet its offered so much to the occupants

The Straits Regency

The Straits Regency Condominium - Big Home, Small Budget
One of The Most Popular Condo in Tanjung Bungah
2 Persiaran Tanjung Bungah 3, 11200 Tanjung Bungah, Penang

Property Details
Type: Condominum
Tenure: Freehold
No. of Block: 1
No. of Storey: 26
No. of Unit: 104
No. of Unit per floor: 5
Built-up: 1,530 - 1,670sf
No of Bedroom: 3 + 1 
No of Bathroom: 3 + 1

Facilities: Gymnasium, Swimming Pool, 24-hour security,  BBQ, Playground & Landscaped Garden

Some of the benefits of this lovely condo are as below:-
* Strategically Located in Tanjung Bungah, a famous tourist spot in Penang
* Public amenities such as hospitals, shopping complexes, international schools, banks, college, beaches and others are in the vicinity
*A residence for your family to live in peace, comfort and quiet & serene environment
* Spacious layout and panoramic seaview

If you would like a FREE *Market Analysis on your property or any other information, simply email us, Penang Real Estate by clicking here. 
There is no obligation.

Kindly run through all comments on the bottom of this page to know more about The Straits Regency Condominium. Thank you. 

To See All Listings of The Straits Regency Condo For Sale, please click here.

Thursday 11 December 2014

Penang Land, anyone?

It's our pleasure to let you know that we are real estate Marketing Specialist in these areas and striving to provide excellent services with all of your land needs.

We have in the business for many years and has an established track record of superior performance. Our customers and clients have praised our dedication, diligence, and ability to get the most money in the sale of their land in the least amount of time with the minimum disruption. 

There have been numerous changes in real estate regulations and policies and we continue to educate ourselves to stay current and competitive. So, if you have any thoughts about selling your land, you can be in confident that we shall provide you with superior services in a professional manner.

Therefore, should you are interested to sell, buy, let or rent your land, you are welcome to contact us by clicking here. We shall be please to be of service.

For your kind information, we have many qualified buyers looking to own some pieces of land in Penang for development purposes or as their land bank. Therefore, if you or someone you know would ever like your land SOLD instead of JUST LISTED, please contact us. We have a proven marketing programs for getting your land sold. 

The land can be industrial, commercial, residential or agricultural with development potential in Penang Island & Mainland (Seberang Perai & Butterworth). Any size as long as the price, location, terms and conditions are right.

Other location in Kedah, Perak, Kuala Lumpur and Selangor or Klang Valley can also be considered too if the location, size & price is right.

On the other hand, you too are welcomed to contact us if you are looking for land to buy by informing us your requirements by clicking here

Behind every successful sale is a Professional Realtor!
We fully understand your needs is unique so is our attention to you.
We are pleasure & ready to be of service!

If you would like a FREE *Market Analysis on your property, please do not hesitate to email us. There is no obligation. 

We urge you, if you have any land to be sold or want to know more how to dispose off your land, Please click here to contact us. Help us to help yourself.


P.S. If your property is currently listed for sale with another realtor, this is not intended as a solicaitation of that listing. Thank you and we wish all a happy ending in selling your property.