The Malaysian Insider in its 1 March 2011 edition reported that the property market is showing signs of decline, as indicated by rents and capital values for prime areas (I believe in Kuala Lumpur).

What about Sabah, in particular Kota Kinabalu?

This is the article as published in The Malaysian Insider. Enjoy reading...

Property market shows signs of slowdown
By Lee Wei Lian
March 01, 2011

KUALA LUMPUR, March 1 — The property market has either gone flat or is showing signs of decline, as indicated by rents and capital values for prime areas.

The market, especially the high-end segment, appears to be feeling the pinch of oversupply and the tightening measures on investment.

Figures in a report by property consultancy DTZ Research released in January shows that rental rates for commercial property were on a downward trend last year dropping from RM6 per square foot (psf) in the second quarter to RM5.97 in the fourth quarter.

Office occupancy rates also fell from 87.9 per cent in the second quarter to 86.4 per cent in the fourth quarter.

“The outlook for the (commerical property) sector is expected to remain soft in the next few years as it will take time to increase demand with these new initiatives while there is a substantial amount of new supply, most of which is of a speculative nature,” said the DTZ report.

Meanwhile the average capital value of prime condominiums declined slightly from RM600 psf in the third quarter to RM599 in the fourth quarter.

DTZ pointed out that Bank Negara had mandated a 70 per cent cap on the loan-to-value ratio (LVR) for a purchase of a third residential property, down from 80-90 per cent and this could affect the high end property market in the coming months.

“This (the 70 per cent LVR cap) will have some negative impact on the high-end segment where buying has been concentrated,” said the report.

Property agent Melvin Wong says however that the slowdown will not likely affect affordable properties in the RM300,000 to RM400,000 range.

“The 70 per cent LVR cap doesn”t affect first time home-buyers,” he said. “The government is trying to curb speculation in the higher end segment of the market and those are the properties which might see a slowdown.”

Read more here

You may want to read my earlier posts ...
1. 70% financing for third and subsequent Home Loan
2. Sabah Property Market is Promising
3. It is still a Buyer's Market
4. RM542M Sabah Properties Unsold

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Happy New Year 2011 !

Good news for properties owners whose land leases may be expiring soon!

The Sabah State government has reduced the premium on lease renewal. The additional premiums for extension of land leases on houses has been lowered by 80 per cent and that for commercial and industrial properties by 45 per cent.

According to the report in the Daily Express (published on 30 December 2010), the Land office has used the new premium rate beginning this year (2010). But the formula use to calculate the premium was not made public. (Anyone who has any knowledge on this may share his / her view in the comment section)

You may want to read my earlier posts on this subject

1. Premiums on renewal of leases 2

2. Premiums on renewal of leases 1

Here is the full report as published in the Daily Express on 30 December 2010...

45-80pc discount on renewals

Kota Kinabalu: Good news for owners of both residential and commercial-cum-industrial properties in the State whose land leases may be expiring soon.

The additional premiums for extension of land leases on houses has been lowered by 80 per cent.

And that for commercial and industrial properties by 45 per cent.

Chief Minister Datuk Seri Musa Aman said the Land and Survey Department here used the new premium rate beginning this year.

"Such low premium rate for renewing extension of land leases for homes proves the State Government is dedicated and committed to realsising the people's needs to own their houses for a longer period.

We want also to make sure the new premium rate will not burden the houseowners but accommodate them to posses their homes when their land leases are almost expiring," he said.

Read the full text here Show/Hide

Musa, who is also Minister of Finance, said this in his speech at the launching of Wisma Tanah dan Ukur by Head of State Tun Ahmadshah Abdullah at its hall here, Wednesday.

Wisma Tanah and Ukur on 5.1-acre site is the first headquarters of the Land and Survey Department since its inception in 1882.

The previous building was deemed unsafe for the staff to carry out their duties.

Hence, the new headquarter for the department, Wisma Tanah and Ukur was constructed and became operational in 2007.

Also present were Federal Deputy Minister of Natural Resources and Environment Tan Sri Joseph Kurup, Minister in the Chief Minister's Department Datuk Nasir Tun Sakaran Dandai, State Secretary Datuk Sukarti Wakiman, Federal Secretary for Sabah,s Datuk Mohamad Hatta and Sabah Land and Survey director Datuk Osman Jamal.

On changing land use from agriculture to housing, commercial and industry, Musa said the additional premium rate for such purpose has been reduced since April 2008.

The move was aimed at ensuring the property market is maintained at a level where the majority of Sabahans can afford to own and purchase them.

Through the Government Transportation Programme (GTP) under a lab for Bumiputera Sabah and Sarawak, Musa said the Government is committed to ensure Native Customary Right Land is issued with individual titles or communal titles.

"Through Sabah Land Information System (SALIS), the State Government will set up an Idle Native Land Bank to record land acreage about 140,000ha.

"This will facilitate implementing agencies like Sabah Land Development Board (SLDB) and Sabah Rubber Industry Board (LIGS) to make plans of developing the lands on commercial scale through a joint venture with the land owners. By doing this, such development plans on the idle land could have positive impact to enhancement of the people's socio-economic and State's economic growth," he said.

Therefore, Musa said the effort of Land and Survey Department to establish a Unit for State Customary Land is very timely to ensure the success of GTP under the Bumiputera Lab for Sabah.

He also commended the success of building Wisma Tanah dan Ukur that reflected the State Government's high commitment in ensuring efficiency and effectiveness of public delivery system, increasing land revenue and providing conducive working environment to the Land and Survey Department staff to give best service to the clients.

Musa said he was impressed with management level of the department in upgrading its services to public and reducing bureaucracies to expedite official land matters.

Among the services are shortening the time of processing land surveying for issuance of land titles, creating a new method for Temporary of Lease application for sand and stone extraction from the river and land.

This also includes, he said, speeding up processing work for land dealings registration using a system of Land Dealings Electronic Submission System (LADESS).

Without stating the amount, Musa also expressed satisfaction with the department's collection of land revenue collection for November, which was the highest ever achieved by the department.

He also called on the department to intensify its law enforcement on offences involving encroachment into State lands, illegal extractions of stones and sand, digging on land without permit and pollution to environment so as to safeguard the State's natural resources form further destruction.

Source : Daily Express

Through the sheer weight of his personality, Jose Mourinho willed Inter to unexpected glory with Italy's first treble victory.
Source : Yahoo! Sports

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Have you checked the unexpired lease period of your property?
Do you know that a property with a shorter unexpired lease period normally fetches a lower value as banks do not normally offer financing.In addition, if you were to renew the lease the premium may become unaffordable (for many)!

Please refer to my earlier post on the same subject : Premiums on renewal of leases

Image source : http://www.dailymail.co.uk/news/article-1330976/Cheerleaders-bikinis-blamed-putting-team-Asian-Games.html

As I was reading the news in the Daily Express (one of my favourite online news portals) I found an interesting article related to the issue of land lease renewal premium which I would like to share with...

here it goes...

Kolombong landowners worried premium may be excessive: SAPP

Kota Kinabalu: Sabah Progressive Party (SAPP) said landowners at the Kolombong area are worried that the State Government will charge excessive premium for extension of their title deeds.

Former SAPP Treasurer-General, Datuk Wong Yit Ming, pointed out that the BN Government had promised to extend their title deeds and that the premium would be so affordable that every landowner will be able to pay for it.

According to the landowners most of the title leases in Kolombong area will expire in the next 10 years.

At the moment, most of the banks or financial institutions refuse to give loans to the landowners unless they can extend their title lease to another 30 years.

Wong also said that when some of the landowners approached the Natural Resource Office in the Chief Minister's Department to renew their lease titles for another 60 years, they were told that the premium required for the extension of lease title is very much higher than the amount promised.

"Some of the landowners cannot even afford to pay for the premium requirement.

They all feel cheated and upset that the BN Government cannot fulfil their promises.

"SAPP calls on the State Government to speed up the renewal of Kolombong land titles seriously and the State Government to be fair in charging premium in order to help the landowners extend their title deeds," he said.

Source : Daily Express, Published on: Tuesday, November 23, 2010

Other related news you may want to read (all from the Daily Express online news):
1. Land lease extension issue for discussion with Dept
2. Rate set to renew lease too high: DAP
3. Sari denies higher premium for Kolombong land
4. Kolombong land lease extended to 99 years
5. Widow's 18-year futile wait to renew land lease

Have you read my earlier post on the same topic? Here is the link Premiums on renewal of leases

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Hi there.
Bank Negara Malaysia (BNM) has just announced the implementation of a maximum loan-to-value (LTV) ratio of 70%, which will be applicable to the third house financing facility taken out by a borrower. 

I personally view this as a good measure to curb excessive speculation on property prices as one needs to come up with a higher downpayment of 30% from the current minimum of 10% to own the third and subsequent home. Of course, for the cash rich, the new ruling does not affect them.  

BNM Press Statements on Measures in Promoting a Stable and Sustainable Property Market and Sound Financial and Debt Management of Households 

Bank Negara Malaysia wishes to announce with immediate effect the implementation of a maximum loan-to-value (LTV) ratio of 70%, which will be applicable to the third house financing facility taken out by a borrower.  Financing facilities for purchase of the first and second homes are not affected and borrowers will continue to be able to obtain financing for these purchases at the present prevailing LTV level applied by individual banks based on their internal credit policies. The measure aims to support a stable and sustainable property market, and promote the continued affordability of homes for the general public. 

At the national level, residential property prices have increased steadily in tandem with economic development and the rise in income levels.  This aggregate growth trend remains largely manageable and has not deviated from the long term trend in residential property prices.  In the more recent period, however, specific locations, particularly in and around urban centres, have experienced faster growth, both in the number of transactions and in house prices. This is further supported by an increase in financing provided for multiple unit purchases by a single borrower, suggesting increasing investment activity that is of a speculative nature.

The targeted implementation of the LTV ratio is expected to moderate the excessive investment and speculative activity in the residential property market which has resulted in higher than average price increases in such locations. This has also led to increases in house prices in surrounding locations, thus contributing to the declining overall affordability of homes for genuine house buyers.  This measure therefore remains supportive of the objective of encouraging home ownership among Malaysians which continues to be an important national agenda. 

  Read the full text here Show/Hide

.......

Introduction of the Financial Capability Programme

As part of the continuous efforts to raise the level of financial literacy and to promote  sound financial and debt management by Malaysians, Bank Negara Malaysia also wishes to announce the introduction of the Financial Capability Programme. This Programme will be offered by Agensi Kaunseling dan Pengurusan Kredit (AKPK) through its establishments nationwide and will commence from January 2011. The Programme is aimed at equipping individuals with important knowledge for responsible financial decisions by gaining practical understanding and skills in money and debt management. This in turn will contribute towards preserving the sound financial positions of households and ensure that debt accumulation is commensurate with household affordability, including their ability to absorb interest rate adjustments and potential volatility to income and expense levels. Individuals particularly new prospective borrowers and young adults are strongly encouraged to participate in this specially designed programme. The details of the implementation of the Financial Capability Programme will be announced later in December this year.


Bank Negara Malaysia
3 November 2010

Source : BNM website 

You may want to read my earlier post
1. High Cost of Materials and Land Value Blamed for City’s Expensive Properties
2. Property Prices in Kota Kinabalu
3. Newly Launched Project. 30% Reserved / 5% Discount for Bumiputera!

Image source : shanghaiist

I'm looking forward to see The Monkey King movie in 3D to be released in 2012.

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These days, many Malaysian buyers are capitalising on the low interest-rate environment to tap the recovering real estate market. Whether it is meant for owner-occupation or investments, location of the property is an important consideration.

I was doing my routine blog hopping when I stumbled upon a very good article published in the star online regarding the things that one needs to consider when buying a property. I thought it would be nice if I share it with you all :)

The factors that one needs to consider are as follows.

1. Accessibility to amenities and connectivity to public transport and highways
2. Proximity to schools
3. Security and safety around the estate
4. Size of the property
5. Cost of the property
6. Developer selection

Want to know the details...read the full report here Show/Hide

Location, location, location

COMMENT By TAY HAN CHONG

I was recently in Penang, and as usual, admired the colonial houses which look so majestic after being restored to their former glory. Of course, I also felt a sense of regret to see some of these houses in a dilapidated state.

Beyond these colonial houses, Penang properties are thriving, be it landed properties or condominiums. Just like Penang, some good localities in Malaysia have continued to see strong property demand despite the global recession.

It could be a result of low interest rates but certainly the demand is also driven by buyers who are looking for good bargains. I understand that some buyers are bold enough to book many units within the same development, presumably, for rental or sale at a profit when the project is completed.

Is location still the conventional wisdom for buying a property, regardless of whether the property is meant for owner-occupation or investments? The answer is unequivocally, “Yes!”

So how does location affect property purchase?

I was told that a new feng shui cycle started in 2000. According to feng shui experts, the auspicious direction has shifted and for those who believe in feng shui (and many do), this played a significant role in their decision to purchase a property.

I had a neighbour whose house is a corner lot with a sizeable land area. The main gate faces the west, and the perimeter fence goes round to the north. The perimeter fence that faces the east and south borders with other houses.

When he could not get the permit to shift the main gate to face the northern direction, he stopped the renovation and put the house up for sale. Believe it or not, this was how location (or in this case, feng shui directions) affected his decision.

A less radical but equally interesting point to note on property location is the proximity of a property to amenities available in the neighbourhood. In Singapore, if you live within a one-kilometre radius from a primary school, your child will have priority to enrol in that primary school.

Therefore, it is not surprising that sellers capitalise on this and ask for a premium for these properties. Of course, there are willing buyers for these costlier properties, particularly when they are near reputable schools.

These stories are real experiences shared by many property sellers and buyers.

These days, many Malaysian buyers are capitalising on the low interest-rate environment to tap the recovering real estate market.

Whether it is meant for owner-occupation or investments, location of the property is an important consideration.

·Accessibility to amenities and connectivity to public transport and highways. Convenience is the key consideration when it comes to daily routines. You really do not want to be stuck in a traffic jam from the moment you exit from your car park.

·Proximity to schools. I understand from some developers that properties in localities with good schools would be better priced and more sought after.

It is the convenience of sending your children to school or the ease of renting your property that result in better property value.

Similarly, apartments with proximity to tertiary institutions also fetch reasonably good rental.

·Security and safety around the estate. Interestingly, this has made condominiums with Gurkha security guards a definite premium compared to sprawling houses with a big garden.

Landlords can attest to good rental and high occupancy due to the security feature. Property agents have also affirmed that these properties are generally easier to sell and at a premium too.

·Size of the property. This is a definite consideration, be it for owner-occupation or investments. For owner-occupation, it depends on the size of the family.

I generally find a three-bedroom house or condominium more attractive for a family with two to three children. These properties also appeal to expatriate families whose company is willing to pay a decent rent.

For large properties, the market is usually more limited and it may take longer to find suitable tenants or potential buyers.

·Cost of the property. This can determine the minimum rental you need, if you want a rental yield of about 5% or more.

So if the cost is higher, such as those near the Kuala Lumpur City Centre, you will need a higher rental rate to get the required yield. Naturally, the higher the rent, the smaller the market.

·Developer selection. It is interesting to note that many property buyers have some “loyalty” element towards certain developers because of the brand names that have been built over the years. Some relevant considerations include the quality of the building materials and finishes, and standards of maintenance which has a bearing on the re-sale value.

Even with a good location, personally, I am not sure if buying many units within the same development makes financial sense. Generally, investing in properties must also follow some common principles of investing, such as diversification to spread risks.

Since such investments usually come with loans and the ability to keep up with mortgage repayment becomes an important consideration. This is more so as interest rates are expected to rise when economies start to firmly recover.

(Tay is senior vice-president and senior head of UOB’s personal financial services division)

Published in the star online, 7 November 2009

Happy Reading !

Image source : www.thailandbuddy.com

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Yes. That is right.
I was surprised to read the report from the Star online today. Based on the Budget speech by the Prime Minister yesterday, I thought that a fixed tax  rate of 5% would apply to gains from the disposal of real property from 1 January 2010. Here is the screen shot of the relevant paragraph taken from the budget speech (click on the image for better view).

The Star reported that the Malaysian Government has proposed to reimpose real property gains tax (RPGT) for gains arising from property disposal.

Based on the Finance Bill, disposal within two years of acquisition will be taxed 30%; in the third year, it will be 20%; in the fourth year 15%, while disposal within five years and beyond will still be subject to 5% tax.

If these rates of RPGT are restored come January 2010, I foresee that the property market will become less attractive. As I mentioned in my earlier post, the reintroduction of RPGT will be good for the property market as it will be able to control the rising of property prices due to manipulation / speculation by certain group of people. So the way I look at it, the government has made the right move to reintroduce RPGT as it is a good tool to counter speculation.

What do you think?

Read the full report here
Property gains tax makes comeback
Show/Hide

THE Government has proposed to reimpose real property gains tax (RPGT) for gains arising from property disposal.

Based on the Finance Bill, disposal within two years of acquisition will be taxed 30%; in the third year, it will be 20%; in the fourth year 15%, while disposal within five years and beyond will still be subject to 5% tax.

The latest measure, which will come into effect in January next year, has been described as “a knock-out punch” by Deloitte Malaysia country tax leader, Ronnie Lim.

“It was merely four short sentences in the 2010 Budget speech. However, that short reference to RPGT carried a knock-out punch,” Lim said in a statement yesterday.

He pointed out that from the speech itself, many would have thought that a low rate of tax of 5% would apply to most gains arising from disposals of real property.

“Be prepared for a shock – this is not the case and the highest rate of RPGT will be 30%,” he said.

Most rates of RPGT from January 2010 will be restored to those prevailing immediately before its suspension in April 2007.

Lim said one notable difference was that the exemption from tax for disposals after the fifth year of acquisition has been removed.

“Even where a property was purchased over 20 years ago, a gain on disposal from 2010 will attract 5% RPGT (without any indexation of acquisition price to reflect current purchasing power of the ringgit),” he said, adding that a flurry of property transactions could be expected soon.

Concurring with Lim, OCBC Bank Bhd director and chief executive officer Jeffrey Chew described the measure as a counter-productive move in efforts to encourage property investments among local and foreign investors, particularly to attract real estate investment trust investors.

“Furthermore, this would make Malaysia’s property market less attractive compared to other neighbouring countries in the region despite our property prices being among the lowest in the region,” Chew said.

However, Khong & Jaafar Sdn Bhd managing director Elvin Fernandez gave the thumbs up to the RPGT, saying “it shows that Malaysia, like other Asian countries, is not for unfettered speculation.”

“The RPGT is an anti-speculative tool, not a revenue earner for Government coffers,” he added.

To promote home ownership and enhance the people’s quality of life, the Government has also proposed a scheme to allow Employees Provident Fund (EPF) contributors to utilise their current and future savings in Account 2 for home purchase.

Meanwhile, to encourage green technology in the property sector, building owners obtaining Green Building Index (GBI) Certificates from Oct 24 until Dec 31 will be given income tax exemption equivalent to the additional capital expenditure in obtaining such certificates.

Those purchasing buildings with GBI certificates from developers will be given stamp duty exemption on instruments of transfer of ownership.

The exemption amount is equivalent to the additional cost incurred in obtaining the GBI certificates. This exemption is given to buyers who execute the sale and purchase agreement from Oct 24 until Dec 31, 2014.

And to promote rehabilitation of abandoned housing projects, the Government will consider extending appropriate financial assistance to rehabilitate low and medium-cost houses based on the existing project list.

An allocation of RM200mil will be provided under the housing and local government ministry.

Under the Government’s initiative to provide housing facilities for the low and middle-income groups, the National Housing Department will provide 74,000 low-cost houses to be rented in 2010.

As published in the Star online, 24102009

Update 24 Oct 2009 : Only Five Per Cent Real Property Gains Tax Next Year, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah

"The real Property Gains Tax for the first year is five per cent and is the same for the second, third, fourth and fifth year," he said in clarifying a news report in the business page of the Star Saturday.

Read the full report from BERNAMA

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The Prime Minister Datuk Seri Najib Tun Razak has just finished his Budget 2010 speech. The following are the points / areas that affect me and my family...and maybe you :)

• Taxpayers will get tax relief on broadband subscription fee of up to RM500 from 2010 to 2012.
  
• Tax of 5% to be imposed on gains from the disposal of real property from Jan 1, 2010. Existing tax exemption will be retained for gifts between parent-child, husband-wife, grandparent-grandchild. 
  My Say : This is a good move by the government to get a share from the profits / gains from property players / speculators. I hope in a way it will be able to control the rising of property prices due to manipulation / speculation by certain group of people. eg. the developer and the gang.
  
  

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The New Sabah Times reported that housing developers in Sabah may be able to pay less electricity capital contribution pending the outcome of a meeting with Sabah Electricity Sdn Bhd (SESB) this month.

I hope the outcome will be positive as the developers' construction costs will be lesser and this will benefit house buyers. In other words, new homes will be cheaper by RM2,500 to RM4,500. I guess this will bring down the value of homes in the secondary market too. So let us all keep our fingers crossed !

So what is Electricity Capital Contribution ?
It is the cost for the laying of electricity infrastructures to supply power to the housing development areas.

Why is SESB's capital contribution high (for Sabah)?
The capital contribution is based on the estimated cost of getting the electricity supply to the premise, which include the cost of material, labour, transportation, and any work that has to be contracted out. Based on this estimated cost, the expected returns of the investment for a three year period is calculated. Unfortunately, due to the present tariff structure and the high cost to generate electricity, there is no nett returns for SESB and the customer therefore is required to pay the full amount. SESB does not make profit on this capital contribution. (Source : SESB)

For the record, currently developers in Sabah are required to pay a lump sum of between RM3,000 to RM5,000 for a single or double-storey terrace house in terms of electricity capital contribution.

The amount is far higher than in the peninsula where the rate has been fixed at only RM450 per unit.

The scenario in neighbouring state, Sarawak is even worse, over there the developers have to fork out between RM8,000 to RM15,000 per terrace house for the electricity capital contribution.

In conclusion, I hope that whatever savings derive from the lesser contribution rate will benefit house buyers and not enrich the developers.

Read the New Sabah Times report here...

Less electricity capital contribution a possibility
Show/Hide

KOTA KINABALU: Housing developers in Sabah may be able to pay less electricity capital contribution pending the outcome of a meeting with Sabah Electricity Sdn Bhd (SESB) this month.

Minister of Energy, Green Technology and Water Datuk Peter Chin Fah Kui is scheduled to visit Sabah on Oct 26 over the proposed coal-fired power plant project in Lahad Datu.

However, he has indicated that he may seek to address the electricity capital contribution with SESB then.

At present developers are required to pay a lump sum of between RM3,000 to RM5,000 for a single or double-storey terrace house in terms of electricity capital contribution.

The amount is far higher than in the peninsula where the rate has been fixed at only RM450 per unit.

SHAREDA president Datuk Susan Wong Siew Guen said she had appealed to the minister for assistance.

“I have asked the minister to assist and to work out with TNB to give Sabah a fixed rate, if not at par with peninsula, at least a lower rate of between RM1,000 to RM2,000 per unit,” she said.

She was referring to a courtesy call on the minister in Putra Jaya recently by the Real Estate and Housing Developers’ Association (REHDA) of Peninsular Malaysia, Sabah Housing And Real Estate Developers Association (SHAREDA) and Sarawak Housing and Real Estate Developers’ Association (SHEDA).

Among others they raised the issue of disparity in electricity capital contribution.

The visit was a follow-up to the joint communique made during the 11th Malaysian Developers Council meeting held in Sabah on August 14 this year.

The three associations had jointly resolved that electricity capital contribution required of housing developers in Sabah and Sarawak should be at par with the rate in Peninsular Malaysia.

Chin agreed to look into the issue in Sabah by discussing it with SESB which is a subsidiary of Tenaga Nasional Berhad (TNB). The company is under the jurisdiction of his ministry.

He suggested SHEDA consult Syarikat SESCO Berhad (SESCO) directly as the latter is state-owned and not under TNB. Developers in Sarawak have to fork out between RM8,000 to RM15,000 per terrace house for the electricity capital contribution.

Also present at the courtesy call were REHDA president Datuk Ng Seing Liong, treasurer Hj Muztaza Mohamad and Selangor Branch committee member Tiah Oon Ling.

Others included SHAREDA vice president Wong Ten An and secretary general Chew Sang Hai while SHEDA was represented by its deputy president Joseph Wong Kee Liong, secretary general Sim Kiang Chiok and assistant treasurer general Christopher Ngui Siew Ling.

Source : New Sabah Times, 02102009

Image source : SESB

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As a Landlord, what would you do if you found out that your property is being used as a "resting place" by your tenant or should I say your dead tenant ? In other words, your house is being used to keep the dead while waiting for a resurrection.

This is what happened at a house in Taman Kobusak Villa, located in Kampung Nosoob, Penampang, Sabah. As reported in the Daily Express today, Police recovered a decomposed body of a 37-year-old man, believed to be the leader of a church group called "Church With No Walls" who has been dead for 13 months. Another report says that the dead man was the head of a group called "Benevolent Missionary Association" (see TheStarOnline's Bizarre wait for a resurrection)

Read the full report here...

Found - body kept in house for 13 months
Show/Hide

Penampang: Police recovered a decomposed body of a 37-year-old man, believed to be the leader of a church group called "Church With No Walls" who has been dead for 13 months, at a house in Taman Kobusak Villa here at about 6.30pm on Friday.

Penampang Police Chief, DSP Madang Usat, said police picked up three tenants of the house, two 26-year-old twin sisters and a 46-year-old divorcee.

He said police found the body in the living room wrapped in blankets and plastic sheets.

"The body had already dried up and had not much smell," he said.

He said the three women, who were believed to be followers of the deceased, were released after questioning, adding police have ruled out foul play in the man's death.

"Initial investigations showed no signs of foul play and we have classified the case as sudden death," said Madang.

He said the man and the three women were renting the house and the women did not bury the body or report to police as they believed they could resurrect the man.

Madang said police came to know of the incident following a report lodged by the 46-year-old woman's former brother-in-law.

"The woman told her former father-in-law who told one of his sons who subsequently lodged a report," he said.

The body has been sent to hospital for a post mortem.

Published in the Daily Express on Sunday, 27092009

Would this incident affect the value of the property? What about the other houses in the neighbourhood ?

Image source : Daily Express

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While google-ing for a fresh image of Nountun Apartment for my post, I stumbled upon this article written by Sabahkini.net on 29 August 2009.



excerpt from the article...

RAMPANT THEFTS AT NOUNTUN APARTMENT

The residents of Nountun Apartments in Kolombong near here have taken their Management Corporation (MC) to task over rampant thefts and house-break-in incidents in their housing estate, over the last few months.

They claimed that on an average there was one case every week, with a majority of them occurred in broad daylight, when most of the tenants were out working or running errant...

Read the rest of the article here


Image source : pastelblog.artistsnetwork.com

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Stretch of hilly road at Minintod collapses ~ Source : Daily Express

A portion of the Kolam-Minintod Road, near Bukit Padang, Kota Kinabalu, caved in after the hill on which the stretch stood collapsed, yesterday (3 September 2009).

However, no casualties were reported. This incident will definitely affect the market value of properties in the affected areas.

As reported in the Daily Express on Friday, 4 September 2009...

Stretch of hilly road at Minintod collapses

Kota Kinabalu: A portion of the Kolam-Minintod Road, near Bukit Padang here, caved in after the hill on which the stretch stood collapsed, Thursday.

Cracks were seen at the stretch as early as 7am by a maintenance team from Globinaco Sdn Bhd and the road caved in eight hours later at about 3pm, causing a ridge stretching about 150ft long.

A Public Works Department (PWD) team had gone to the site after being alerted by Globinaco contractors and sealed the cracks with canvas, allowing only one side of the road to be used.

However, the PWD team later decided it was too risky to allow traffic to go through, as the cracks widened, and closed the road completely at about 1pm.

Motorists who normally used the stretch to reach Inanam or Penampang have been advised to use alternative routes, preferrably from Jalan Datuk Panglima Banting or Jalan Kiansom Minintod.

Those who frequent the road generally are either headed to Kg Kibabaig, Kg Kasigui and Jalan Datuk Panglima Banting in Penampang, or KK Tzer Ying Buddhist Temple, Kg Bambangan, Kg Bantayan, Kg Minotun and Country Heights Apartments in Inanam.

A PWD senior officer said they were thinking of building an access not far from the collapsed road but must consider several details first before proceeding, adding such works would take at least one or two weeks to complete.

Meanwhile, MP Dr Hiew King Cheu believes the incident could have been avoided as it could not have happened overnight.

Looking at the underground water outlet beneath the stretch, he suspected the pipe could have been damaged, causing it being unable to channel water away from the hill.

"The PWD should always check this carefully. Now, millions of Ringgit would have to be spent to fix the road, which in fact is the people's money," he said.

He also failed to understand how the mishap could not be averted, pointing out there were enough funds sourced for road maintenance in Sabah.

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SEPANGGAR: The costs of properties in Sabah and particularly within the city capital area are expensive due to the high cost of materials and land values. The price of a semi-detached house located within 5km radius from the city centre can easily fetch a price of between RM700,000 and RM1.2 million, said Wah Mie Group managing director, Kong Kwok Wah yesterday.

He said when speaking to reporters after the launch of the Taman Sepanggar build-and-sell detached showhouse unit that they were also facing sand shortage.

“The last time, we faced shortage in cement supply. I hope it will be resolved, but as it is now, we are constantly facing such problems,” he said. But aside from that, he promised that Wah Mie Group would continually upgrade the quality of their properties.

“We are aiming towards zero defects as much as possible. Of course, in some areas, our hands are tight because much of our materials are bought from the mass market such as bricks and sand, but in areas where we can control, we will upgrade,” he said.

He added that in some of their newer build-and-sell concept detached single and double storey houses they have even incorporated the use of shingle roofs, which are produced only in US. “The roof material is expensive, but it carries with it 30 years warranty,” he said.

In his speech earlier, Kong said that most of the units in Taman Sepanggar were already sold. He added that they were launching 32 units of semi-detached houses yesterday.

Wah Mie Group will be launching the sales of another 100 units of terraced houses possibly by October this year, he said.

He said that the Taman Bukit Sepanggar consists of 380 acres, where approximately 40 percent of the area was kept as green lung. “That is why Taman Sepanggar stands out as a unique development with plenty of greens and natural landscape,” he said.

Source : New Sabah Times, Published on 23 August 2009
Image Source : Wah Mie Group

My Say :In addition to the two factors mentioned above, I believe the following factors also play their parts in the high properties value.
(1) Greed; from my experience a developer normally takes about 40% - 50% profit from each property sale. If a Developer can lower down its gross profit margin, the selling price of a property will become lower and attractive and this will make the property easy to sell.
(2) Speculation; There are cases where a project registered a high take up rate or even sold out in a few days after being launched. The ones who booked or bought the properties the most are the Owners/Directors & Co. This is where Resale starts to come in. Price will go up by another 20% - 40% depending on the response from the public / potential buyers.

If the selling price of newly launched project is not controlled, the price of properties in the secondary market will go up like crazy. This is what happening in Kota Kinabalu at the moment.

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This is scary man. The Government should do something to help these people. Don't wait until the unexpected things happen. Yo know what I mean ~ Remember Highland Towers!

Residents in fear of a 'Highland Towers' in Sabah

Kota Kinabalu: Chanyai Villa Apartments at Jalan Tuaran used to be one of the most sought after properties in KK.

But now, residents there fear they may end up like the Highland Towers or Bukit Antarabangsa landslide victims in the peninsula because it appears like the hill behind it may collapse anytime.

A resident, June, said she MPs and Assemblymen had been voicing out the fear of the residents but the developer and Management Corporation had done nothing.

She said that every time it was raised with the developer and Management Corporation, they only gave assurances to the residents.

"But now it has reared its ugly head again and I for one, not knowing what had happened in the past, feel that unless immediate remedial action is taken, we could be victims of a landslide," she said.

She said she is a newcomer to Chanyai after buying an apartment there recently. "They have suggested that a retaining wall be built to prevent landslide from occurring.

"Sadly, it was never carried out probably overlooked or they just didn't bother," she said.

June said after the landslide last year, the residents wrote to City Hall and conducted a dialogue with the developer and Management Corporation in the presence of Likas Assemblyman Datuk Liew Teck Chan. But until now, the retaining wall has yet to be built.

And to rub salt into the residents' "wound", she said what is believed to be indiscriminate hill cutting had been carried out and asked whether City Hall had approved the new project site.

She said adding lessons should have been learnt from the Highlands Tower that collapsed in Dec. 11, 1993 in Ulu Klang, Selangor, which claimed 48 lives and the landslide at Bukit Antarabangsa, also at Ulu Klang on Dec. 6, last year.

Quoting a blogger, nictancb of Citizen's Blog, she asked, "How many tragedies must happen before people learn not to meddle with hill slopes?"

Many of the residents, she said, have no place else to go and called Chanyai Villa their home.

"We hope immediate and competent action will be taken before newspapers in the country report another tragic mishap."

Source : Daily Express, Wednesday, 12 August 2009

I wonder if this unhealthy scenario affects the market value of the properties...

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This is a very interesting view on the property market in Malaysia in general which I like to share with you all. I for one second the author's view that the property market is still a buyer's market.

Still a buyer’s market

WITH the dust of the global financial crisis settling at least for now, barring further surprises, the new liberalised environment for the country’s business and property sectors is a good platform for local property players to leverage on.

If the relaxed measures are able to attract more foreign direct investments (FDIs) in the country’s business and property sectors, there should be greater demand for commercial and residential property from these foreign investors.

In fact, the removal of the Foreign Investment Committee ruling for foreigners purchasing commercial property has the potential to turn Malaysia into a vibrant commercial property market as more foreign investors are attracted to the market.

The commercial market has turned a lot more liquid and there could be more en-bloc transactions down the road.

The market has proven its resilience with capital values and rental rates for commercial space holding out quite well despite the onslaught of the global financial crisis.

However, to give a further boost to the local business environment and inflow of FDIs, it will certainly help if the Government can further liberalised the tax structure for businesses and individuals to raise the country’s competitiveness.

As for the residential market, the existing low interest rates for property financing and the housing packages that are still offered by most of the developers are attracting stronger buying interest.

Those who have yet to purchase their own property and are shopping around for one still can take advantage of the low entry cost until developers decide to put a stop to these facilities.

Going by the strong take-up for some of the recently unveiled condominium projects around the peripherals of Kuala Lumpur, it looks like more Malaysians are resorting to investing in property to hedge against inflation.

After all, bank interest rates for property financing are at one of their lowest and it will be wise to lock in at the current levels.

Meanwhile, industry players are also anxious to get on with their project launches once again after having to defer their plans over the past three quarters since the crisis broke out last September.

After having laid low for much of the past few quarters, it is not surprising that developers are eager to unleash their products and are lining up a string of projects for launch. A variety of property products will be making a beeline for the market soon.

They may feel that delaying the launch further will mean higher holding cost for them.

But, a word of caution for developers. The local economy is not yet out of the woods and the gross domestic product for the second quarter is likely to remain in the negative terrain, although the contraction is expected to ease and bottom out by year-end.

There is still an imbalance in demand and supply in the property market for now and it will take a few more months before a more balanced market sets in.

Developers should be prudent and conduct proper feasibility studies before launching their projects, especially new greenfield projects that take many years to complete.

Gauging the market response through project previews and pre-launch registrations will show whether a project is ready for launch.

To register sustainable earnings growth path going forward, developers have to come out with holistic plans for their residential and commercial properties.

There should not be a sudden clamour for project launches but they should be based on market fundamentals and actual takeup rates.

As the market is just about to make a turnaround and it is still very much a buyers’ market, developers have to be prepared with more quality projects and the right product offerings at the right pricing.


Source : The Star Online (The Real Estate with Aggie Ng)

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"...these unsold properties reflected a supply that was not absorbed by the market due to a mismatch between demand and supply"

In other words, the supply is more than the demand. Wow! This is something property owners should consider when they want to dispose their properties at this time. If you cannot sell your property after one month try reducing your Asking Price . Also, please consider factors like your housing loan interest, rental, etc. Do bear in mind that the longer you hold the property the more cost you are going to incur. Also, a lot of headaches ;)

RM542m Sabah properties unsold

Kota Kinabalu: A total of 2,942 properties worth RM542.94 million remained unsold in Sabah up to the first quarter of this year.

"Of this, 2,590 units are residential properties, 323 units of commercial shops and 29 units of industrial buildings," said Assistant Local Government and Housing Minister Datuk Edward Yong.

"Apart from these, there are also properties under construction but identified as unsold properties totalling 1,741 residential units and 201 units of commercial shops."

Yong said these unsold properties reflected a supply that was not absorbed by the market due to a mismatch between demand and supply.

This can be considered a waste of the investment funds of the financial sector, he added, when launching a briefing on the Property Information System Malaysia (Prism) computerisation system at the Federal Administrative Complex, Thursday.

Prism, to be implemented as a product of the Valuation and Property Services Department's (JPPH) National Property Information Centre (Napic), focuses on transmitting data through online facilities from the existing manual transmission.

The objective of Napic is to provide accurate, comprehensive and timely information regarding the demand and supply of property in the country to government agencies, property developers and all parties involved in the property industry.

Hence, Yong appealed to all parties involved in the property industry to use the Napic property data as part of information gathering before making decisions on their development projects.

Throughout the country, about 23,000 houses worth RM3.7 billion were not sold in the country over the last ten years.

According to the JPPH these residences were completed but that there had been no takers following the 1997-1998 financial crisis and other economic factors.

However, JPPH Director-General Valuation Dato' Abdullah Thalith MD. Thani, who disclosed this, said the figure is negligible given that about 4.3 million houses were built during the same period.

"In addition, the 23,000 units only account for 0.5 per cent of the six million units of properties in the country, including commercial shops and industrial properties," he said.

Abdullah said, Johor had the highest number of unsold properties totaling 6,513 residential units worth about RM1.17 billion, which represents 28 per cent of the total properties in the country. Next comes Selangor with 3,827 units worth about RM635 million and Kedah involving 2,619 units worth about RM237 million.

The briefing on Thursday was for the public sector as well as the private sector like housing developers, land dealers, and real estate agents among others.

Also present were JPPH Sabah director Sautarwin Marto and Sabah Land and Survey Department Director Datuk Osman Jamal.


Source : Daily Express, Friday, 17 July 2009

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TheStar online reported today that some 44,000 low-cost houses under the Program Perumahan Rakyat in the Federal Territory will be offered for sale to the existing tenants. In addition, the flats will be sold 20% to 30% cheaper from the market price.

Wow! lucky them, I hope the same incentive will be extended to the people in Sabah. I also hope that the Federal Government will launch more affordable housing projects in Sabah so that everyone will be able to own a home.

Low-cost flats to be sold below market price

KUALA LUMPUR: More than 44,000 low-cost flats in the city will be sold below the market price.

Federal Territories Minister Senator Datuk Raja Nong Chik Raja Zainal Abidin said he would propose that the units be sold 20% to 30% cheaper.

He said this would help the people own at least one asset in Kuala Lumpur.

“From my experiences with those from squatter areas or those who migrate to Kuala Lumpur from rural areas, they are striving to have at least one asset here.

“Hopefully, this will help them own property,” he said, adding that the move would be one of his Key Performance Indicators (KPIs).

He said he had already informed Prime Minister Datuk Seri Najib Tun Razak of the proposal and would bring it to the Cabinet in August.

“Hopefully, it will be approved by the Cabinet and finalised in November,” he added.

Raja Nong Chik added that the ministry would try to assist the people in various ways, including working with the banks, to provide, hopefully, 100% financing.

Cuepacs president Omar Osman was particularly happy with four measures, namely the offer to purchase low-cost homes, the toll discount, the issuance of individual taxi permits and petty traders’ licence discount.

“It is a good start. But there must be adequate monitoring to make sure there’s no abuse of the system,” he said.

Malacca Chief Minister Datuk Seri Mohd Ali Rustam Mohd Ali said the state would also give a 50% discount on new applications and renewals of business licences for petty traders, starting next month.

“The decisions made by the Prime Minister clearly focuses on the needs of the people, especially those in rural areas. It will benefit everyone, young or old, rich or poor,” he said.

Home Minister Datuk Seri Hishammuddin Tun Hussein said Najib’s announcement was made with the future of the people in mind.

“It covers issues like public safety, citizenship, permanent residency and absence of birth certificates. It’s all decided with the people in mind,” he said. Women, Family and Community Develop-ment Minister Datuk Seri Shahrizat Abdul Jalil said Najib’s goal-oriented style was reflected in his first 100 days in office.

Minister in the Prime Minister’s Department Tan Sri Dr Koh Tsu Koon said Najib’s emphasis on KPIs placed everyone under pressure.

“It puts all of us under pressure to perform, for the benefit of the people,” he said.

Source : TheStar Online

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The property prices in Sabah, particularly in Kota Kinabalu area have increased so much in the past 3 or 4 years. Take for example, the price of a standard Double Storey intermediate house with a land area of 1,500 SF and a built up area of 1,200 SF. 4 years ago the price was below RM200K, but now most property owners are asking almost 50% more, i.e. RM300K.

Other examples, an apartment unit with a built up area of 900SF in Kepayan Ridge area that originally cost below RM140K, now priced at about RM200K. A condominium unit with the same built up area in Luyang area is now priced well above RM300K. Original price was about RM230K. Wow, this is crazy. With this kind of price I better get a condominium unit at 1Sulaman :)

There are cases that are even worst, an owner of a double storey intermediate house that is located near to Kepayan Ridge was trying to sell his lot for RM600K. Wow, this is far too much because the original price was about RM350K. Maybe, the owner thought that underneath the property was a gold mine. Another case in the same housing area; a buyer initially tried to sell his lot for RM550K but maybe due to lack of interest he reduced his asking price to RM490k. I wonder if he managed to get a buyer for his lot. With this kind of asking price I for one will rather buy a Semi-detached house. However, property owners are not solely to be blamed as they are merely taking advantage of the current supplies of new properties that are priced so expensive.

I wonder if an average salaried person can afford to own a house if property prices keep on increasing not in line with income. This is where the Government should step in and do something to control the property prices in Sabah. Housing developers also should do their part in ensuring more affordable homes are being built and not just concentrating to more profit. If there are more houses being built and priced affordably I believe we will not see property prices increase so much.

With the current global economic crisis and unemployment rising, I personally hope that property prices will fall down as there will be less demand. When that time comes I hope to grab one or two for investment purposes ;) What about you?

Photo source : Sabah Museum

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Well, that is the normal tagline used by Developers in their marketing materials and advertising.

If you are a Bumiputera aka Bumi who plans to buy a Bumi Lot property (5% discounted), with the intention to sell it back for a quick gain, do consider the following.

1. You can only sell your Bumi Lot to another Bumi Buyer during the first 5 years of holding period. Note that the holding period has a different interpretation for a property that is
(i) under construction, (ii) completed but the whole project is not fully sold, and (iii) completed and the whole project is 100% sold. I.e. if you bought the lot in scenario (i) and (ii), the holding period is from the date the developer submit its application to Land Office for sub-division of the Master Title to the disposal date, and NOT from the Sale and Purchase Agreement (SPA) date. For scenario (iii), the holding period is from the SPA date to the disposal date.

2. Make sure the Lot is located in a strategic location with good feng shui. What I meant is, some irresponsible developers tend to allocate Bumi Lots in the not so good location with bad feng shui. For instance, the Lot is near to the sewerage plant, high tension cable, grouped together with other Bumi Lots, etc. Most of the time, the Lot will not fetch a good price in the secondary market.

3. Is the 5% discount worth the risk! Say, you plan to buy a property priced at RM340,000.00. With a 5% discount, you get RM17,000.00 savings compared to your Non Bumi friends. Right after the Occupation Certificate (OC) is issued out, people start to sell their units, your Non Bumi friend sells his Lot for RM450,000.00 and makes a quick gain of RM110,000.00 (gross). You then decide to do the same, hoping to make quick gain yourself. Do you think you can get instant buyer for your lot? Remember that you need to get a Bumi buyer to buy your Lot. You may need to wait longer than your Non Bumi friend…incurring more loan interest.

(This article applies to Bumi property investors, who use bank to finance their property and want to make a quick gain only!)

Please share your views on this article if any.

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Are you looking for an Apartment to stay in Sabah? Well, before you decide to buy / rent the place, ask yourself the following question.

Are you in need of a Fixed Telephone Line; for Streamyx, or your business / work requires you to use fax machine ?

If your answer is YES. Please be aware that the following Apartments / places, do not support fixed telephone line service at their premises.

* Country Heights Apartments, Jalan Minintod, Penampang
* Melingsung Summer Bay Resort Apartments, Papar
* University Apartments, Jalan Sulaman
* Cyber City Apartments, Jalan Lintas


Why I know? I used to stay in one of the places. I have checked with Telekom office at Sadong Jaya.


If your answer is NO. Good, because these places have a lot of things to offer.

* Country Heights Apartments ~ the perfect home for city dwellers who long for country lifestyle living. The rental here is cheaper!

* Melinsung Summer Bay Resort Apartments ~ it is the only housing development in the state that equipped with resort-style swimming pools. This includes the first ever outdoor pool that is sheltered by elegant canopy to protect you from the sun and rain, and the other one that is completed with slide and waterfall for children and young-at-heart.
The property value is very affordable. If you are interested to buy one, try Property Auction House. If you are lucky, you can own a Studio Unit at a price of RM30K. Good Luck!

* University Apartments ~ An inspirational Investment Opportunity due mainly to its location.

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Are you looking for a house or an apartment of your own? If you have a very tight budget and you do not mind the locations, Syarikat Perumahan Negara Berhad (SPNB) is the right place for you to be.

You can do a search of your dream home here

The price for an apartment ranges from RM66,120.00 to RM137,880.00. For a Single Storey Terrace House it is from RM50,000.00 to RM139,961.00. Downpayment is as low as RM100 with a 5% discount for Bumiputera. Land Ownership is 99 Years.

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