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Long road to recovery for property sector

KUALA LUMPUR: Alliance DBS Research estimates that Malaysia’s property market will need at least another three years to absorb the unsold properties, assuming status quo in historical transaction volume.

“Therefore, a meaningful recovery for the property market is only expected by 2023, ” it said in a research note on Thursday.

It said the large and growing property supply overhang remains the key stumbling block for the sector’s recovery, resulting in weak sentiment among buyers and investors.

“Based on data from the National Property Information Centre (NAPIC), we estimate that Malaysia’s property market will need at least another three years to absorb the unsold properties, assuming status quo in historical transaction volume, ” it said.

The supply glut will only intensify the competition among developers as weaker players could adopt a more aggressive pricing just to monetise their unsold units.

In addition, depressed rental yields may further discourage investors from entering the market, exacerbating the already weak sentiment in Malaysia’s property market. Heightened external uncertainties also continue to undermine confidence with the anticipation of an economic slowdown.

“Property stocks are currently trading at multi-year low at 0.49 price/book value (P/BV) which is two standard deviation below its 10-year mean, pricing in the worst case scenario.

“While there is a lack of imminent catalysts, we continue to favour developers with clear earnings visibility and decent dividend yields to tide over the challenging times.

“We like Sunway for its focus on sustainable township developments with multi-disciplinary expertise which has resulted in superior integrated ‘build-own-operate’ model with a proven track record.

“It is set to resume its growth trajectory with projected FY18-20F earnings compound annual growth rate (CAGR) of 8%, contributed by strong performance across its key divisions in property development, construction, healthcare services and investment property, ” it said.

Source: The Star

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How to appeal against the higher assessment rate by MBPP

Penang lang recently was shocked with the sudden higher assessment rate imposed by the local council.

The assessment rate for the property I am staying in has increased an eye-popping 77%!

I’ve been asked by many people how they can lodge a bantahan.

So I’ve decided to write it down here so that you too knows how you can lodge your appeal or ‘bantahan’ to the MBPP.

Check your mailbox for the MBPP assessment. It looks something like this:

MBPP Assessment

The new assessment rate is outlined in Jadual 2 – Cukai Dikenakan

And then you will see a box with the website URL you can log into to make an appeal, as well as your unique user id and password. 

Visit the website – http://smartmonitoring.mbpp.gov.my/InternetBantahanPS/

This is how it looks like. Click on the button Sila klik disini, which will bring you to the page below. Enter your username and password (as given in your assessment letter from MBPP). 

Once you are logged in, your property’s information will be displayed. It is the same as that shown in the MBPP assessment letter you received.

Enter your Alasan Bantahan in the box given and click submit.

And there you go. That’s how you submit your appeal.

Remember, the deadline is on 14 October, 2019.

You can read about the news here Oct 14 deadline for Penang property owners to appeal against assessment rate hike

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Penang needs to reclaim past glories

LAND is a scarce resource on Penang island.

Luckily, in these modern times, we do not have to go to war to seek territorial expansion.

There is something called reclamation, which is common in the world nowadays.

For Penang, reclamation is nothing new as it was done in Bayan Lepas back in the 1970s.

The state’s economy was effectively transformed, with people getting jobs and enjoying a good life as a result of the existence of the Bayan Lepas Free Industrial Zone (FIZ) then.

Thanks to the late Tun Dr Lim Chong Eu, we were branded the ‘Silicon Valley of the East’.

Fast forward to 2019, I feel Penang is no longer a force to be reckoned with.

We have been left out in the race to be a major player in the technologically advanced industries, losing out to the likes of Singapore and Taiwan.

We have even lost to countries like Vietnam and China, which have adapted fast to new technologies and appealed more to international investors.

Yes, we still have the Bayan Lepas FIZ, and the Prai and Batu Kawan Industrial Estates.

But to put things into perspective, Penang never moved forward, and the ‘old’ free industrial zones and industrial estates are testimonies to this sorry state of affairs.

Just take a quick trip to the Prai Industrial Estate, and one can see how dilapidated the roads are, coupled with factories that barely have cutting-edge technology.

Penang should have embraced the Industrial Revolution 4.0 but according to Muhamed Ali Hajah Mydin, who heads the Penang Skills Development Centre (PSDC), many companies have yet to tap into the RM2 billion allocated by the government towards achieving IR 4.0.

So when the Penang South Reclamation (PSR) was mooted, I was excited over this proposed development near Teluk Kumbar.

It is set to change the entire landscape of the island with development shifting to the south.

There will be three man-made islands measuring 1,800ha in total or the size of 3,600 football fields.

On July 5, the state government announced that the PSR had obtained Environmental Impact Assessment (EIA) approval with 72 conditions to be fulfilled.

It is expected to generate RM70bil, of which RM46bil will be used to fund the Penang Transport Master Plan.

No doubt critics will say that land is abundant on the mainland and it is needless to reclaim more land that could harm the environment and marine life.

But those on Penang island will agree that the ‘action’ is always here and the PSR augurs well to push the state to become a global industrial player once again.

We have a lot of catching up to do but it is better late than never, as the entire project will only be realised in years to come.

The first island – known as Island A – is touted as a continuation and expansion of the Bayan Lepas FIZ while Island B will be ‘a playground for city planners and architects’ with a tram system and green spaces.

As for Island C, it is meant for a mixed development project.

As pointed out by Chief Minister Chow Kon Yeow, the Bayan Lepas FIZ, in the past 50 years, had provided job opportunities, trained and produced small and medium enterprises to support multinational companies.

He said the state had moved from low-cost mass production to high-tech research development.

Such a continuity can help us grow with our neighbour Kedah, which has embarked on the development of the Special Border Economic Zone, a catalyst for the Kota Perdana development project near Bukit Kayu Hitam.

The Kota Perdana-Asean Industrial Metropolis is a joint project between Malaysia and Thailand, where 3,515ha of land is to be developed.

Upon completion, it will provide world-class facilities for manufacturing and commercial sectors, including free trade zones to encourage bilateral trade between Asean member countries.

The project has seven phases and is expected to be completed in 20 years.

I strongly believe the PSR can actually jump-start Penang’s advance into the industries of the future.

It will provide the much-needed transformation under the Penang 2030 vision.

It is not the time to ask ourselves whether the PSR is needed.

We should ask ourselves if we can afford not to have the PSR which is vital for the state’s economic progress in the next 30 years.

Source: The Star

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3 reasons why you should only invest in below market value property

Firstly, what is below market value (BMV) property? In a nutshell, BMV property are property that is selling at a discount in the property market.

Imagine this, you, walking in the shopping mall and seeing all your favourite items (clothes, shoes and etc..) on SALE at every corner, with the tag of 30%, 50% and even 70%.

Now, imagine you, driving around in your favourable neighbourhood shopping for your property and seeing the sign “For Sale at Below Market Value”.

Below market value (BMV) property is essentially property that is selling from as low as 20% to 40% below the real market value.

However, you will not able to see it so easily. You need to do a little bit more research about where this below market value property is and look out for it.

The next question you may ask, so what’s so good about buying below market value (BMV) property?

For simplicity sake and easy understanding, I have listed the reasons why buying below market value (BMV) property has more benefits/ advantageous, into 3Ms as below:

Margin of profit

We already make a profit when we buy below market value property. We do not need to wait another 5 – 10 years to sell it to enjoy the profit. This is because, there is already a healthy profit margin.

Let’s say a property in the market is asking for RM 500,000 but you successfully bought it at a 30% discount (or better known as 30% below market value), at RM350,000. You would have make a RM150,000 profit!

Minimise your risk

Historically, property prices depreciated at most 20% lower than the original selling price. If a RM500,000 property were to depreciate 20%, it would be worth only RM400,000. You will not make any money selling this property in a down trend market.

However, because you bought the property at below market value, you have very little risk, or none at all.

Minimum capital

Of course, when you successfully found a below market value property, you definitely minimize your capital. Using the same example as above, you would have already save RM15,000 on the initial deposit needed.

Using the Master Key Method®, you can even structure to purchase the below market value property in such a way that not only you purchase it with minimum capital, but potentially at zero capital.

Read Discover How To Buy Your Property With Just Under RM1,000 And Make RM20,000 to RM60,000 A Year here

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Oct 14 deadline for Penang property owners to appeal against assessment rate hike

GEORGE TOWN (Sept 13): Penang property owners have to be prepared to pay higher assessment rates next year as the state’s two local councils review the rates to counter increased expenditures.

All property owners will receive the notices on the increase this month, and they have up to October 14 to send in appeals against the new rates, reported the Malay Mail today.

Read more

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Cement prices may go up by year-end

Cement prices are expected to go up by the end of the year, following early signs of recovery that have come about as a result of the acquisition of Lafarge Malaysia Bhd by YTL Cement Bhd.

Demand for cement is also seen to be picking up in the fourth quarter, as mega-infrastructure projects such as LRT3 and the East Coast Rail Link which have been approved are ready to start work.

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BNM keeps OPR unchanged at 3%

KUALA LUMPUR (Sept 12): Bank Negara Malaysia’s (BNM) monetary policy committee (MPC), at its meeting today, decided to maintain the overnight policy rate (OPR) at 3%.

BNM said the stance of Malaysia’s monetary policy, at the current level of the OPR, remains accommodative and supportive of economic activity and that the committee will continue to assess the balance of risks to domestic growth and inflation, to ensure that the monetary policy stance remains conducive to sustainable growth amid price stability.

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Minister: Unsold high-end properties here to be offered to HK, China buyers

KUALA LUMPUR, Sept 11 — Housing and Local Government Minister Zuraida Kamaruddin plans on taking Malaysia’s Home Ownership Campaign (HOC) to Hong Kong and China.

Speaking to a press conference at the outskirts of the 2019 Smart Cities Asia Annual Conference and Exhibition, she explained that properties in Malaysia are far cheaper than those found in Hong Kong. Read more

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Discover How To Buy Your Property With Just Under RM1,000 And Make RM20,000 to RM60,000 A Year

To own our own home is viewed by society as one of the key milestones of being successful. Hence, we will almost always buy a property for our own stay first.

However, with the rising home prices and the fact that our salary or income is still at the level it was 10 years ago, owning a home continue to be a big challenge to many people.

Therefore, to be a smart property investor, you need to have the right strategy or methodology. Read more