Property News

Right now the glut in commercial space in the suburb is quite frightening.
Don't know what those developers were thinking when the embark on those projects.
Hundreds of units of newly completed shophouses and offices in areas like Kempas (near the Angsana), Sutera Utama (outside Sutera mall), Taman U, Perling, Nusa Bestari, Bukit Indah, Austin Hills, Impian Emas etc are still empty one year later.
For those 2,3 storey shophouses, the upper floors are almost all empty.
You also see businesses opening and closing within a year in these area.
With more being completed this year, it really looks bleak.

A lot of buyers snapped up these commercial units at $1-2 mil RM. With VEP n tolls, even e existing ones may find it challenging as spending power drops. Those tt will VP in 1-2 years' time are gone case. Challenging times ahead in JB n SG.

FHBH12 said:

A lot of buyers snapped up these commercial units at $1-2 mil RM. With VEP n tolls, even e existing ones may find it challenging as spending power drops. Those tt will VP in 1-2 years' time are gone case. Challenging times ahead in JB n SG.

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Those more than one year later still can't find a tenant must be wetting their pants now.
Things will be worse when banks start seizure and start to lelong them off.

cslong said:

I havent heard much about desa palma project..... they plan to launch DSTH? Any website on this taman?

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it's surely landed. have'nt heard any news of launching. the exit from NSHW already open, can see the sign big big on the side after kempas toll (NSHW southbound.)

Just recently, a few units of apartments in the D'Esplanade were put out for auction.
Auction would means forced foreclosure by creditor.
For a brand new project, this is quite strange and unusual. The property price would have already appreciated by then and owner could have just sold it off, the worse case, at cost. Foreclosure, you lost everything! One possibility is the owners had "run road".
So, for those without deep pockets and want to play the property market, be really really cautious and always go in with eyes wide open.

Hi Snowbird, Where do you find this info? Any websites on this auction?

snowbird said:

Just recently, a few units of apartments in the D'Esplanade were put out for auction.
Auction would means forced foreclosure by creditor.
For a brand new project, this is quite strange and unusual. The property price would have already appreciated by then and owner could have just sold it off, the worse case, at cost. Foreclosure, you lost everything! One possibility is the owners had "run road".
So, for those without deep pockets and want to play the property market, be really really cautious and always go in with eyes wide open.

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teega said:

Hi Snowbird, Where do you find this info? Any websites on this auction?

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Over already la. It was in Property Guru, Iproperty etc.

cslong said:

I think that area quite near HTC right?

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haven't gone on site to check it out. it should be near,yes.

snowbird said:

Just recently, a few units of apartments in the D'Esplanade were put out for auction.
Auction would means forced foreclosure by creditor.
For a brand new project, this is quite strange and unusual. The property price would have already appreciated by then and owner could have just sold it off, the worse case, at cost. Foreclosure, you lost everything! One possibility is the owners had "run road".
So, for those without deep pockets and want to play the property market, be really really cautious and always go in with eyes wide open.

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price appreciated because of inflated asking prices , abetted by agents, is one thing. actually finding a willing buyer is another.

cslong said:

Well said. I am surprise the asking price for 600sqft D'Esplanade studio can be range from RM550k to RM720K. A ridiculous asking price.

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seems ex to me but it is in town center. i wonder if KSL have delay in obtaining strata title for purchasers.

cslong said:

NEWS STRAITS TIMES: Monday, 4 August 2014, 10:00 PM
PKR will hand out a 50-page report to the opposition alliance’s top leadership to clarify their decision to remove Tan Sri Abdul Khalid Ibrahim as Selangor menteri besar. PKR secretary-general Datuk Saifuddin Nasution Ismail at a Press conference today said the report would be distributed tomorrow.Among the issues raised in the report was pertaining to Khalid's legal settlement with Bank Islam over a RM66 million debt to purchase company shares when he was Guthrie chief executive. Also mentioned was the suspected dubious sale of state government land to developer Eco World, which was sold at lower market price. "Such a case has raised doubt over Khalid's integrity. "We will explain this in detail to the alliance's top leaders in hopes that they will get a clearer picture (of the reason why we want to remove Khalid)," said Saifuddin.

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Base on the above expose..... EcoWorld now drag into the Selangor MB Scandal. If that is true, Tan Sri might be the prime suspect in this land scandal.

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you have an axe to grind with the Tan Sri ?

malpaso said:

seems ex to me but it is in town center. i wonder if KSL have delay in obtaining strata title for purchasers.

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I won't say the Esplanade is in town Centre. More like slum town. That place haven't seen much improvement for the past 20 years probably.

cow138 said:

I won't say the Esplanade is in town Centre. More like slum town. That place haven't seen much improvement for the past 20 years probably.

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Nonetheless it is still quite attractive to the locals & some Singaporeans. Reason being that it is in integrated development with supermarket, and there's a feeder bus to JB Sentral. So for people working in SG, the proposition can be quite attractive, esp with the jam & toll hikes.

cslong said:

No la. Just doubt his integrity. Sorry, if you are his hardcore supporter.

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He's actually quite a nice guy lah. Always got special discounts for Plentong folks (his hometown) at Setia events. I attended a wedding where he stayed till the end. In SG, big bosses usually ciao after 3-4 course liao.

cslong said:

KSL have made a grave mistake when they promise buyers that there will be a mini golf course on the top of the resort but end up putting a dinosaur park. It piss off many buyer at that time.

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Make many big boys angry but also make many small boys happy.

RedsYNWA said:

He's actually quite a nice guy lah. Always got special discounts for Plentong folks (his hometown) at Setia events. I attended a wedding where he stayed till the end. In SG, big bosses usually ciao after 3-4 course liao.

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i heard from a friend who knows the family personally that tan sri is a nice guy. every big taiko businessman will have to engage in slightly shady deals, it comes with the territory.

Problem is Malaysia doesn't seem to like open bidding. Land is sold by government in behind e door n no one knows y a particular piece of land is sold at e price to a certain developer, n what happens to e money colllected.

Malaysian developers brace for GST's impact
Aug 7, 2014

UEM Sunrise Bhd’s profit margin is expected to fall due to the upcoming six percent goods and services tax (GST), according to a report from Bloomberg.

The next tax will increase the cost of construction materials, but the additional costs cannot be passed on to buyers of some housing projects, said Izzaddin Idris, CEO and Group Managing Director of UEM Group Bhd, the parent company of UEM Sunrise.

Hence, the company may delay some of its future developments as the weak property market could last for another year, he said.

Apart from the GST, local developers are feeling the impact of Bank Negara Malaysia’s recent interest rate hike and its stringent mortgage rules that were introduced in 2013. As a result, property sales last year slumped to its lowest level since the aftermath of the 1997 Asian financial crisis, while home prices in Q1 2014 expanded at its slowest pace since 2010.

The tax impact will “be reflected in UEM’s future results. We can expect a slight decline in margins with rising cost pressures,” explained Izzaddin. UEM’s net profit slumped by 71 percent during the first quarter the year.

Aside from UEM, the GST will also negatively affect other property players in the country, such as Sunway Bhd and SP Setia Bhd. In June, SP Setia made provisions for the new tax, while Sunway is projecting a three percent fall in its profit margin.

“We are definitely cautious” about property developers, said Thomas Yong, CEO of Fortress Capital Asset Management Sdn, which manages RM1 billion worth of assets.

“We have property stock holdings in China and Singapore. We sold out of Malaysian property equities quite a while back,” he added.

Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email [email protected]

http://www.propertyguru.com.my/prop...1/malaysian-developers-brace-for-gst-s-impact

http://mobile.bloomberg.com/news/20...-walker-says-sydney-home-market-too-hot-.html

This bloomberg article was cited in an article in today's ST titled "Top Aussie developer bullish on Johor region".

According to the article...

"Walker is in talks for further investments in the city of Johor Bahru as he bets that demand from neighboring Singapore will increase, he said without elaborating. ... Walker is converting land, previously used for prawn-breeding farms, into swanky apartments. The project is expected to be valued at about A$7.5 billion along with an adjoining plot it will develop with a Singapore-based company, he said."

.... still bullish even with the onslaught of the mega-China projects? Does he see something I'm not seeing? Hmmmm....

I wonder where this project is which Walker is teaming up with a Singapore developer...this is in addition to the existing Senibong Cove.

From what I know it's the adjoining plot of land next to Senibong cove. Supposedly to be a tie up with Charles And Keith.