Electrical cables & wires: uncertified and substandard items are dangerous!


Structural defects to blame, stop history repeating itself !


Sniffing out signs of life: The K-9 unit of the City Fire and Rescue operations looking for possible victims at the site of the bridge collapse near Kampung Haji Abdullah Hukum in Kuala Lumpur.

KUALA LUMPUR: Structural failure possibly caused the collapse of an under-construction pedestrian bridge at KL Eco City near Kampung Haji Abdullah Hukum here.

Department of Occupational Safety and Health (DOSH) director-general Datuk Mohtar Musri said the initial investigation suggested that a defective structure could have led to the disaster on Wednesday.

He said the department would refer to the Construction Industry Development Board (CIDB) and Kuala Lumpur City Hall regarding the quality of materials used in the construction of the bridge.

Works Minister Datuk Seri Fadillah Yusof said a task force has been set up to probe the incident.

He said the result of the investigation was expected to be made public in a month, and that tough action could be taken against the developer if it was found to have flouted safety regulations.

“We can bring them to court, not just under DOSH but CIDB too. Under the CIDB Malaysia Act 1994, they can face a RM500,000 fine or a two-year jail sentence,” he said.

The RM7mil pedestrian bridge linking the planned KL Eco City project to the Gardens Shopping Mall in Mid Valley, which was still under construction, collapsed and killed one worker and injured five others on Wednesday.

The search-and-rescue operation at the site of the incident was halted after it was confirmed that there was no worker trapped underneath the mangled brick-and-iron structure.

City Fire and Rescue Department deputy operations chief Ruhisha Haris said K-9 teams had confirmed that there were no signs of a body.

However, the mystery of the missing construction worker remains.

“We first received information that a worker might have been trapped because a colleague saw him under the bridge minutes before it collapsed.

“A head count by the developer also revealed a missing worker, but they were unable to give us a name,” he said.

The dead victim has been identified as Tran Xuan Vang, 21, from Vietnam. Two other Vietnamese, Tran Van Hai and Luong Van Guyet, as well as Indonesian Nor Syamsi, Bangladeshi MD Jashim and Pakistan national Rais Aman Majid were injured and are currently being treated at Universiti Malaya Medical Centre.

Medical staff were forced to amputate Rais’ left leg on site to save his life.

In a statement issued on the day of the incident, SP Setia, the developer of the project, said it deeply regretted the incident and was working with the authorities in the investigation.

“The project team is still assessing the situation,” it said.

Work on the KL Eco City project – a mixed development comprising three residential towers, one serviced apartments tower, three corporate office towers, 12 boutique office blocks and one retail podium – started in 2011 and is scheduled to be fully completed by 2023.

Commenting on the incident, National Institute of Occupational Safety and Health chairman Tan Sri Lee Lam Thye said the time had come for players in the construction industry to practise their commitment to safety.

“All these accidents are preventable if the person in charge puts into practice good occupational and safety health measures and the site safety supervisor makes sure work is done properly,” he said.

By M. kumar and Nicholas Cheng The Star/Asian News Network

Stop history repeating itself

THE Consumers’ Association of Penang (CAP) is horrified with the news of the collapse of the incomplete pedestrian bridge meant to connect KL Eco City and Mid Valley Megamall in Bangsar, Kuala Lumpur.

Not even a month after a couple was crushed by a piling rig that fell on them at a construction site along Persiaran Astana, Klang, another tragic incident leading to serious injury and death has occurred.

If all the parties involved in the building industry – including the local councils, developers, contractors, architects, quantity surveyors, structural engineers, DOSH and all the others – had carried out their roles and functions efficiently, this could have been prevented.

Despite our repeated calls for the Government to conduct a full inquiry into the operations of the Department of Safety and Health (DOSH), it would seem like the relevant authorities are unable to comprehend the gravity of the situation.

When incidents like this happen, it becomes clear to us that DOSH and developers do not have their priorities right.

Instead of working on preventing such incidents, they wait until it happens before scrambling to take corrective measures to fix the problem.

The issue here is that there are no corrective measures that can be taken once a life is lost; that is not something that can be recovered.

Universiti Sains Malaysia’s (USM) Professor Datuk Dr Mahyuddin Ramli has been reported saying that incidents of this nature can happen when contractors do not comply with safety standards.

In this case, he said that concrete takes at least a week to dry and harden; the wet weather we have been experiencing means it will take even longer.

The USM professor also said that another way something like this can happen is if contractors do not use proper scaffolding during the construction process.

The distance between scaffolds and the size of the scaffolds used are very important as they will vary according to the structure they are meant to hold up.

DOSH’s director-general, Datuk Mohtar Musri, has stated that their initial investigation suggested that the incident happened because the structure was defective.

He said that they need to look into the quality of the materials that were used to construct the pedestrian bridge.

Whatever the cause, the relevant authorities and the public need to be aware that this is just history repeating itself.

If the incident did truly happen because of a structural defect, then it needs to be made clear that nobody can plead ignorance.

DOSH safety officers and onsite safety inspectors should have known about the structural defects if they did exist.

This begs the question of whether or not proper safety inspections were done at the appropriate stages by the relevant parties.

We ask that the results of the investigation into the latest incident be shared with the general public.

CAP would also like to know what happened to the findings from the investigation of previous incidents.

Why has this information not been shared with the public when their lives are also put in danger by the conduct of those at construction sites?

In view of this, CAP calls for penal action to be taken against all parties who have been involved in the project. They should all be held accountable even if they were not directly involved.

By S. M. MOHAMED IDRIS President Consumers Association of Penang

[PDF]The Law of Construction Defects and Failures

 Worker killed in bridge collapse tragedy

https://www.youtube-nocookie.com/embed/3QFRF_5oRAY

The Star Graphics:  http://clips.thestar.com.my.s3.amazonaws.com/Interactive/midvalley/midvalley.mp4

KUALA LUMPUR: A Vietnamese construction worker was killed and five others were injured when a 70m yet-to-be-completed bridge near Jalan Kampung Haji Abdullah Hukum and Mid Valley Megamall collapsed.

The victim was buried in the rubble of the collapsed pedestrian bridge.

As of press time, rescue workers were still searching for a Bangladeshi worker believed to be trapped in the rubble.

The authorities have since mobilised the K9 unit to locate him.

The firemen and paramedics were seen changing shift as the rescue mission continued into the night. Some were heard saying that locating the victim would be challenging.

However, all the rescuers were resolute in their attempt to find the last victim, never once giving up hope.

The five injured workers – two Vietnamese, two Bangladeshis and an Indonesian – were sent to the Universiti Malaya Medical Centre for treatment.

Brickfields OCPD Asst Comm Sharul Othman Mansor said the bridge was 80% completed when the incident occurred.

“We are still investigating the incident.

“We were alerted at about 4pm of the incident and quickly mobilised a search-and-rescue team,” he said at the scene.

Four roads were also affected by massive jams due to the incident.

According to Star Media Radio Traffic, the affected roads were the Federal Highway from the arch, the Kerinchi Link after the Pantai toll plaza, Kerinchi Intersection from Bangsar South or Pantai Medical Centre and Jalan Syed Putra from the Kuen Cheng School till the Robson Intersection.

While the main reason for the traffic congestion was due to certain road closures to make way for rescue workers, traffic was backed up near the mall due to many motorists slowing down to see the collapsed bridge.

Mall patrons, construction workers and curious onlookers were seen crowding the area near the bridge, where it was cordoned off for safety precautions.

By Farik Zolkepli, Jastin Ahmad Tarmizi, and Austin Camoens The Star/ANN

Related:  

 Developer to investigate

‘The ground shook and the bridge came crashing down’

Pedestrian bridge collapse: Long road to recovery for injured victims

Bridge collapse: SAR operations stopped, one worker still missing 

Govt may handle workplace safety

Fadillah: Independent monitoring likely

KUALA LUMPUR: The Government would like to take over the job of monitoring safety at construction sites away from developers following a string of deaths as a result of mishaps in the last three months.

Those duties, said Works Minister Datuk Seri Fadillah Yusof, may be entrusted to third party organisations that will be given autonomy in the planning, execution and supervision of workplace safety at construction sites.

Usually, these jobs are handled by contractors hired by the project developers but Fadillah said that this would mean the monitoring process was not independent.

Speaking at the launch of the Sustainable Construction Excellence Centre (Mampan), the minister said the suggestion for independent monitoring was brought up by the experts at the centre.

Mampan is headed by the Construction Research Institute of Malaysia (Cream), a subsidiary of the Government’s Construction Industry Development Board (CIDB).

Fadillah said the proposal to appoint third party safety monitors would be implemented first in Government construction projects.

He added that he hoped the private sector construction industry would do the same.

Currently, the Department of Occupational and Safety Hazard (DOSH) monitors government projects but it is reportedly too understaffed to keep track of every project.

For now we will have to make do with existing laws. This is why we need a commitment from the industry players,” he told reporters after the launch.

For now we will have to make do with existing laws. This is why we need a commitment from the industry players. Datuk Seri Fadillah Yusof

He said that Mampan would be a key organisation under the Government’s environmental sustainability initiative for its Construction Industry Transformation Programme.

The centre will undertake research with Universiti Teknologi Malaysia, Universiti Kebangsaan Malaysia, Universiti Sains Malaysia and the Rehda Institute to instil better industry practices, certification and awareness in the construction industry.

“We don’t want to build bridges that have no resilience and collapse when there is a flood.

“Our short-term goal is to position Malaysia as a regional leader in sustainability in construction and to raise the perception of sustainability in construction here,” he said.

Fadillah witnessed the signing of a Memorandum of Understanding between Cream chairman Tan Sri Dr Ahmad Tajuddin Ali and academics from the four universities and research institutes which will be a part of the new centre.

By NICHOLAS CHENG The Star/ANN

Related:

Rehda: Not feasible to have third party monitor construction sites now …

Related posts:

Building structural integrity & failure: problems, inspections, damages, defects, testing, diagnosis, repair 

 

 Getting titles right in the engineering field in Malaysia

When will the property market pick up?


Affordable living: The history of Stuyvesant Town, Manhattan New York dates back to 1943. In October 2015, Blackstone Group LP led a deal to buy New York’s Stuyvesant Town-Peter Cooper Village, a transaction that would put Manhattan’s biggest apartment complex in the hands of the world’s largest private equity firm and maintain some affordable housing at the property.

 

Experts predict between 2018 and 2019

AT a recent property seminar organised by Asian Strategy & Leadership Institute, several developers and property consultants had a debate predicting when the property market will pick up.

Real Estate and Housing Developers’ Association Malaysia (Rehda) patron Datuk Jeffrey Ng Tiong Lip reckoned the residential sector should recover next year or in 2018.

Ng was the moderator for the session on The Future Outlook and Challenges of the Housing and Property Sector.

Property consultants Savills Malaysia managing director Allan Soo, who specialises in the retail malls, expects a 2019 recovery.

Office market specialist Jones Lang Wootton executive director Malathi Thevendre declined to make any predictions. “It all depends …,” she says.

Ng says the current slow housing market is actually good over the long term, although it is painful in the short term. It all depends on how we manage “the noise”, he says.

There are lots of noises at present, both on the national and international level.

“If next year is election year, the recovery – if there is one – will be after that because between now and then, there are so many uncertainties.

“There is a lack of clarity at the moment,” says Ng.

His reading of the property crystal ball of a 2017/2018 turnaround is by far the most positive and contrasts with Kenanga Investment Bank Bhd equity research head Sarah Lim Fern Chieh.

Lim expects house prices to be flattish or slightly weak depending on locations “over the next four to five years, if there are no major policy changes”.

Her rationale for a longer down-cycle is simple. If your destination is Genting Highlands, but you are driving in the opposite direction, you will need a longer time to arrive there when you finally realise you are driving in the wrong direction.

Although it is widely accepted that the property cycle is between eight to 10 years, within this cycle are “mini two-year cycles. There were two-year up-cycle in 1999-2000 after the Asian Financial Crisis, and another in 2003-2004 and 2007/2007.

But after the 2008 Global Financial Crisis, Malaysia had an extended five-year up-cycle between 2010 and 2014 with prices peaking in 2013, and this was largely due to quantitative easing (QE).

She is, therefore, expecting a longer consolidation period of between four and five years, starting from 2015, before the next up-cycle, barring any policy changes and the global economic climate.

She is also expecting the property market to experience structural changes due to affordability and liquidity factors, among others.


More realistic pricing

Notwithstanding the fuzzy horizon, there are nevertheless a few certainties which may well put the sector on a better footing.

First, home ownership has become a national issue.

Second, the government, at both federal and state levels being landowners, are stepping up on affordable housing.

Third, prices are expected to be more realistic going forward.

Rehda president Datuk Seri FD Iskandar Mohamed Mansor is seeking government cooperation to reduce or waive development charges and other charges, collectively known as compliance costs, in order to bring down prices as this is “too challenging” for private developers to go it alone, considering today’s high land prices.

“If the Government wants developers to build more affordable housing, give us cheaper premiums or don’t charge at all.

“We will then see more stability in prices, or even a reduction, if development charges and all sorts of other charges imposed on developers come down,” said FD Iskandar at a Rehda first half-year review recently.

He says property development and land matters have been the biggest revenue earner for every state. Both federal and state governments own large tracts of land. Although FD Iskandar had made this call before, he was very passionate and firm this time around. Other developers, previously silent, are also quite vocal about the various land and development charges they have to fork out.

This is probably the first time developers are coming together to make a collective public call to seek a waiver or reduction of development and other aspects of compliance cost. The effectiveness of that call depends on the Government’s will to act.

While developers can clamour for such waivers, what is facing the market today is weak sales and this in turn is forcing developers to tweak pricing and strategy a bit, hence the drop in the number of launches as they try push unsold stock.

Andaman group managing director Datuk Seri Vincent Tiew says developers will be offering “more realistic pricing” from now onwards with location being a paramount factor.

There will be more affordable housing and this can be seen from the various affordable housing projects being planned by both the federal and state government although the end-products are slow in coming.

This, says Tiew, can be seen in the various agencies under the federal and state governments, among them being PR1MA Corp mandated to build 500,000 units of affordable housing units by 2018, as outlined in Budget 2013.

A total of 240,000 houses were due by end-2015, with an annual mandate for 80,000 between 2013 and 2015. The number of completed units was 883 at the end of 2015, says Tiew. By the end of this year, 10,000 units are scheduled to be completed. The number of units approved to date are 232,807 against 1.24 million PR1MA registrants as of February 2016. All eyes will be on the affordable segment in the coming Budget 2017.

Healthy demand

The demand for housing has always been there. The issue is affordability, says Kenanga’s Sarah Lim.

“Of late, developers are beginning to price units at RM500,000 and below,” she says.

The current change in direction is attributed to societal and government pressure. Unsold stock and government pressure forced developers to relook their pricing strategy.If developers keep building RM1mil homes, when the threshold is RM500,000 and less, they will be left holding unsold stock. In order to move stocks, creative marketing/financing strategies are employed to move these stocks.

Lim says if developers were unable to meet at least 40% of their sales target by mid-year, they would be unable to meet this year’s targets.

More than two-thirds missed their sales targets last year.

“Prior to this, what was booked was considered sold. Now, this is no longer true,” Lim says.

Lim says there are two issues here, the pressure on the sector as the rate of aborted sales crept up and the people’s demand for realistic prices.

“What we are seeing today is the government’s influence. It is actually steering the market in the right direction,” she says.

Renting the way forward

The other certainty is observed in the rental market, which is expected to continue to be soft next year.

There will be “low occupancy rate” for projects completed last year (2015) and this year, with rental yield at less than 3% a year, says Andaman group’s Tiew.

It is cheaper to rent than to buy. There is so much supply going around and the purchasing power of the ringgit is shrinking.

Selangor State Development Corp (PKNS) senior manager (corporate planning and transformation) Norita Mohd Sidek advocates renting.

She says if there is a 50% loan rejection rate for affordable housing, and considering the limited supply by private developers, renting may be the only option.

She suggests building affordable housing cities the likes of Stuyvesant Town’s Peter Copper Village, Manhattan New York and counters the argument that there is no money to be made from affordable housing.

In October 2015, Blackstone led a deal that put Manhattan’s biggest apartment complex in the hands of the world’s largest private equity firm and maintain some affordable housing at the property.

Blackstone and Canada’s real estate company Ivanhoe Cambridge Inc acquired the 80-acre enclave for about US$5.3bil. Rent is kept below market rates for some 5,000 units. Public transport and other amenities must be part of the development for it to succeed. “Government grants and resources are needed to identify the right location to built more council homes,” she says in her paper.

In today’s low yield environment, pension funds around the world are looking at other ways to generate dividends besides equities and fixed income securities. They are buying into infrastructures and large township developments where there are economies of scale for maintenance.

Malaysia’s national housing dilemma cannot be solved by profit-oriented private developers alone. The golden property years between 2010 and 2014 have been intoxicating, having resulted in expectations of 20% to 30% rise in sales year-on-year, like the manufacturing sector. But the property sector is quite unlike manufacturing. The reflection point was seen in 2014 after the government introduced certain cooling measures and anti-speculation sales gimmick.

Going forward, the emphasis on housing priced RM500,000 and below means developers have to sell more units to make the same sales value as previous years.

“They have to sacrifice some of their margins. Higher profit margins can be had from the mid- to high-end segments,” says Lim. They will have to work harder to help buyers secure loans.

This search for some form of cohesion in the national housing arena has taken a bit of time. Hopefully, the coming Budget 2017 will pave the way for more positive action.

By Thean Lee Cheng The Star/Asia News Network
The Related posts:

Malaysian property market correction to continue in 2016 …
May 7, 2016 Lim expected property prices to plateau for the next few years before the next upcycle. … Labels: 25 years economic cycles , investments , Malaysia …..

An outlook on Malaysia’s property market

According to PropertyGuru’s Malaysia Property Market Sentiment  Survey Report H1 2016, things are expected to improve in 2016 as people are warming up to the idea of purchasing properties.  
Read full story 

Nov 14, 2015 PETALING JAYA: Penang’s property market is expected to stay resilient on the back of sustained demand, especially from Penangites working …
Penang has dislodged Kuala Lumpur’s Golden Tringle as the top investment choice GEORGE TOWN: Penang has now overtaken the Klang

May 18, 2015 Property market is 10 years, boom and burst cycle: 1998, 2008 and ….. Ma: 20
more years of enviable growth for China In an interview with the…

 

 Experts share insights on  property market in  Malaysia

May 10, 2016 Malaysia’s Q3 Property Market Update Check your risk appetite and start …
correction to continue in 2016, its economic cycles the past 25 years

Young adults in developed countries rent, we buy houses for good

High-rise living in below par, need professionalism in managing the property


Only 74 out of 7,325 high-rise residential properties in Peninsular Malaysia earned the top five-star ranking in an evaluation of their property management standards. And more than half are below par, earning only one and two stars.

IT is one thing to be a developed state by 2020. But it is another thing entirely to have a developed state of mind – and Malaysians have a long way to go to achieve that.

Take, for instance, condominium- and apartment-living.

Some of these properties may come with top notch facilities but when it comes to managing their upkeep, there is much to be desired.

Or so says the latest findings on the quality of managing stratified properties from a survey by the Urban Wellbeing, Housing and Local Government Ministry.

Every year, the ministry conducts its Strata Scheme Management Quality Evaluation, or “Star Rating”, which ranks the standards of joint management bodies (JMBs) or management corporations (MCs) of apartments and condominiums.

These bodies are ranked based on how they do in seven areas (see graphic below for details); five stars is the highest rank.

But, as it turns out, more than half – or 69% – of condominiums and apartments nationwide ranked “below par”, scoring only one and two stars in 2015. In 2014, a slightly smaller percentage, 65%, were ranked below par.

Only 1% – or 74 – out of 7,325 strata development schemes surveyed earned five stars in the 2015 ratings, made available to Sunday Star.

If such a trend continues, future residents will inherit poor standards of living amidst modern facilities.

Currently, almost six million Malaysians out of 20 million city folk are living in stratified buildings like apartments and condominiums.

“But this number is expected to rise in future as the country progresses and becomes more urbanised,” says Mohammad Ridzwan Abidin, Urban Wellbeing, Housing and Local Government Ministry urban service division under-secretary.

He says one of the major problems that condo dwellers continue to face is the refusal of other residents to pay maintenance fees. Other problems are building defects and matters involving enforcement.

“For now, about 70% of residents are at a level where they are merely aware of what needs to be done in managing their property. They are not yet at a level to appreciate the benefits of cooperating with each other and creating a better living culture,” he says.

Mohamad Ridzwan says there is a need to change the mindset of people to foster more civic-minded communities in high-rise buildings.

“Future generations will likely live in stratified buildings, so people should try to set a proper precedent for them,” he says.

He points out that there are also more people moving out of landed properties and into high-rise buildings.

“This group of people will have to learn to adapt to the culture of living in stratified buildings as it is different from living in houses.

“They will need to be more inclusive of and cooperative with their neighbours,” he says, adding that they would also have to learn to be more considerate when it comes to using shared facilities.

Stressing that it all boils down to the mindset of residents, Mohamad Ridzwan highlights the case of Rumah Pangsa Orkid, a low-cost flats property in Ulu Tiram, Johor, which made it into the Malaysia Book Of Records in 2014 for obtaining the ISO 9001:2008 standard for exemplary management.

“Until today, they remain the only low cost flat development to have achieved this,” he says, adding that there are yet to be any high-end condominiums accorded the same standard.

Mohamad Ridzwan says the ministry will continue to actively educate dwellers on proper management of their properties.

“We will embark on more education programmes to promote better practices through advertisements in the mass media,” he says.

On the Strata Management Tribunals to hear disputes, Mohamad Ridzwan says four such tribunals have been successfully set up to cover different zones in Peninsular Malaysia.

“Since their formation the tribunals have heard about 200 cases per month,” he says.

In March, Sunday Star reported that residents who do not pay maintenance fees and other charges were set to face the music, with the Government forming a team to strengthen the enforcement of the Strata Management Act.

The Act also enables residents to take their disputes to a Strata Management Tribunal to settle matters.

Building Managers Association of Malaysia committee member Richard Chan agrees that the “biggest and most critical” problem is the collection of fees, saying that it is rare that JMBs or MCs are able to collect payment from 80% of residents.

“It is more common for the collection rate to be at 40% or 50%,” he says.

Chan laments that petty excuses are often given by residents to defend their refusal to pay up.

“Some refuse because they don’t use the facilities.

“When people ask why they don’t want to pay, they simply say they don’t swim or play tennis,” he shares.

Chan adds that many unit owners live elsewhere or are based overseas and so are reluctant to pay.

“Some are not satisfied with services like garbage collection and defy orders to settle the fees,” he says.

He urges future condo owners to refrain from buying properties that come with all sorts of facilities if they are unwilling to pay up.

“Sometimes, it isn’t about whether they can afford the fees or service charges. It is about their attitude and mentality.

“Some don’t pay simply because their neighbours are not paying and are getting away with it,” Chan says, adding that such attitudes have resulted in some apartments owing up to RM200,000 in water and electricity bills.

The lack of money in the sinking fund also hinders JMBs and MCs from paying for major works like repairing lifts.

“It becomes a vicious cycle. Because people are not satisfied with the upkeep of the place, they do not pay the fees.

“But when they do not pay, there isn’t enough funds for upkeep,” he says.

Also, developers must do their part by informing all potential property buyers of the exact amount of all service charges, says Chan.

“Developers will try to promote their projects for more sales but they should also inform buyers of the fees they are expected to pay.

“Owners should also consider that, after a year, the fees may go up as warranty periods for equipment expire,” he says.

Federation of Malaysian Consumers Associations secretary-general Datuk Paul Selvaraj says many complaints against MCs have been made to the federation.

“High-end condominiums are generally better managed. We received a lot of complaints from people in medium cost apartments,” he says.

He says that consumers and the building management should both be more responsible.

“Consumers need to settle payments that they have agreed to. But they should also be receiving good service in return, like efficient rubbish collection,” he says.

Selvaraj highlights that the only way forward is for management bodies and residents to have a good working relationship.

“People should understand that managing their building is a collective responsibility.

“More dialogues should be held on how to improve the community to ensure good quality of life wherever we live,” he adds.

by Yuen Meikeng The Star/Asia News Network

More professionalism needed in managing high-rises

WITH more high-rises mushrooming, a Building Managers Board is urgently needed, according to Tan Sri Teo Chiang Kok, deputy president of the Building Managers Association of Malaysia (BMAM).

BMAM is an umbrella body comprising stakeholder organisations representing management corporations (MCs), joint management bodies (JMBs), chambers of commerce, developers, engineers, architects, shopping and high-rise complex managers, and managing agents.

Appealing to the Urban Wellbeing, Housing and Local Government Ministry to set up the board urgently, Teo says such a body is long overdue.

“Millions of stratified properties are coming up. Building management is becoming a very big industry. We have to start regulating. All building managers must be registered and regulated,” he says.

To date, some 600 building managers have voluntarily registered with the association, he shares, estimating that there are probably tens of thousands more.

Meanwhile, the BMAM is focused on educating its members and interested parties on good management via collaborations with institutions of higher learning.

Describing building management as a multitasking, multi­discipline function that attracts people from various backgrounds and with a variety of skills, Teo says that basic criteria for the role is needed. A Building Managers Board, once set up, will have guidelines and regulations to bring professionalism to the role.

Persons deregistered by the board cannot be hired as property managers, he suggests. This, he feels, will make hiring building managers cheaper while ensuring that they are monitored.

“So long as they fulfil the board’s requirements, anyone can be a building manager. The board will monitor and weed out the errant ones. JMBs and MCs can hire cheaper, smaller companies, even individuals, to manage their buildings if they don’t have the budget.”

Urban Wellbeing, Housing and Local Government Ministry urban service division undersecretary Mohammad Ridzwan Abidin acknowledges the proposal to set up a Building Managers Board.

“However, no decision can be made by the ministry yet as this matter is still being discussed,” he says.

He says the ministry issued a directive to Commissioners of Buildings nationwide last month to register all managing agents to protect residents from unscrupulous parties.

The BMAM would also like to see the country’s 150-plus Commissioners of Buildings (COB) given proper funding and staff. The role of the commissioner is mostly undertaken by local council heads or mayors, which isn’t right because they already have so much on their plate, he says.

The Commissioner of Buildings must be a dedicated, full-time position supported by an adequately funded department. Now, it’s mainly a one-man show, he observes.

“The Act is a good tool,” he says, referring to the Strata Management Act 2013, “But it’s for the COB to implement it efficiently. An effective COB can nip many things in the bud – the COB can call a unit owner, find out the grouses and give directives. If the COB can offer easy resolution, a lot of problems will be solved.”

Apart from supporting the position of COB, JMBs and MCs must familiarise themselves with the Strata Management Act, says Richard Chan, a committee member of the Building Managers Association of Malaysia and a past president of the Malaysian Association for Shopping and High-Rise Complex Management.

“For instance, many aren’t aware that money collected should go to JMBs and MCs – not the companies or individuals hired to manage the property. What if these companies don’t pay the service contractors?”

On Tuesday, a full-day strata management seminar will be held at Wisma Rehda in Petaling Jaya, Selangor, to explain the Act, he says, urging stakeholders to attend the event.

Teo feels that the Act is too harsh on JMB volunteers. Calling it a thankless job, he says it’s difficult getting residents to even attend AGMs, what more serve on the JMB.

“Despite not being paid, JMB members risk personal liability actions. It’s too onerous. It’s overkill because there are already laws like the Penal Code which imposes fines and jail terms.”

And he feels that the Act places too many obstacles in front of willing volunteers.

“The JMB chairman and members can only serve for two and three years respectively. Such restrictions will make things worse because as it is, no one wants the job. Our solution is to extend the chairman’s term to three years; but if at the AGM there’s no one else who wants the post, he or she should be allowed to stay on. And members should be permitted to stay on for as long as they want.” –  The Star

Related articles:

 

Defeating the defaulters

It’s a crime not to pay 

Why some people don’t comply 

The Star OnlineSep 24, 2016
Record-breaking: Rumah Pangsa Orkid is the first low-cost property to achieve the top standard for quality management.

Room for improvement

 THERE are mixed views, but apartment and condominium residents generally agree that there is room for improvement in managing their .

 

Related posts:

By-laws governing strata property management in

 Aug 11, 2015 There are (or will soon be) more people living in high-rise strata … New beginning in … Managing strata properties in Malaysia Sep 11, 2012

 

 Aug 23, 2015 IF you live in a high rise building and have an inter-floor leakage issue, you … occurs during the defects liability period, and which the housing developers … By -laws governing strata property management in Malaysia, part 1.

Service charges under strata title property in Malaysia

 Aug 27, 2015 By-laws governing strata property management in Malaysia, part 2. General … Cheers for high-rise house buyers GEORGE TOWN: The state …

May 28, 2015 There are (or will soon be) more people living in high-rise strata … New beginning in … Managing strata properties in Malaysia Sep 11, 2012
Dec 22, 2012 There are (or will soon be) more people living in high-rise strata properties than in landed properties, given the rapid urbanisation and rising …

 

Sep 11, 2012 … engineers, architects, shopping and high-rise complex managers, management corporations … Though building owners (JMBs and MCs) and Real Estate Investment Trusts … Building Management Association of Malaysia.

 

Jun 15, 2011 “It’s similar to the drive that was extended to unlicensed real estate agents … working at the high-rise apartment block where Liew See Lanlives.
 Aug 19, 2015 “We are pleased to make our first direct real estate investment in … it had set a record of sorts for pricing its high-rise serviced residential units of …

 

Singaporeans on buying sprees for Penang prewar houses; Residents see red


Singapore sweep continues

 Republic’s real estate hunters snapping up houses outside Penang’s heritage enclave.

GEORGE TOWN: Singaporean real estate hunters with a taste for prewar properties in Penang are still on buying sprees, says an NGO.

They are snapping up houses that are located just outside the state’s heritage enclave as these properties are not accorded heritage protection by Unesco, according to George Town Heritage Action.

The biggest buyer appears to be World Class Land (WCL), which is building the tallest residential skyscraper in the planet’s southern hemisphere.

Called Australia 108 because of its 108 storeys, the Melbourne development is expected to be completed in 2019.

WCL has since December 2013 reportedly snapped up 236 prewar houses in Penang, totalling more than 250,000sq ft – the equivalent of 26 football fields.

Recently, it applied to build a 46-storey condominium tower in Gurdwara Road, just 200m from Komtar after buying 37 prewar properties in that area.

Its latest block buy appears to be 26 prewar houses on Penang Road and Bertam Lane, also across from Komtar.

The properties were owned by six descendants of Tunku Kudin (1835- 1909), the great grand uncle of the late first prime minister, Tunku Abdul Rahman Putra Al-Haj, for nearly 100 years.

The offer from WCL was about RM980 per sq ft, totalling RM21mil.

Tengku Abdullah Tengku Mahadi, 61, who collected the monthly rent from the tenants on behalf of his 92-year-old father, said the deal was sealed in Thailand through one of the six heirs who spoke for all of them.

“All the heirs are in their late 80s and 90s. It will cost too much to develop the land ourselves.

“We didn’t really feel like selling. We know the new owner will change the whole place but we are all old and don’t want to stand in the way of development,” he told The Star.

He said the heirs only earned about RM50 per month from each unit when the Rent Control Act was in force.

After it was repealed in 1997, they raised the rent to about RM600 and it had stayed the same since.

WCL lawyers have sent eviction notices to the 60-odd tenants who have until end November to move out.

A subsidiary of Aspial Corporation Ltd, WCL has completed many projects in the island republic and Australia.

Aspial chief executive officer Koh Wee Seng is listed by Forbes this year as the 43rd richest man in Singapore.

George Town Heritage Action has been vociferously against the state government’s apparent lack of control over the alleged WCL buying sprees.

“This company’s business model is to buy the properties, evict the tenants, renovate or rebuild, and then drastically increase rentals,” said its co-founder Mark Lay.

At a press conference yesterday, he showed a list of 236 properties purportedly bought by WCL through several subsidiaries.

Totalling more than 250,000 sq ft, these include rows of old houses along 19 roads, including Dato Keramat, Macalister, Transfer and much of the Seven Streets precinct (known locally as Chit Tiau Lor) near Komtar.

Lay warned that if the state government allowed “one company to accumulate more than 230 prewar houses, it will kill diversity and people’s moral rights to the city”.

“Our concern is also socio-cultural. Any company can damage the fabric of George Town when they have a monopoly,” he added.

In June, The Star reported that Singaporean companies typically raise rentals by 400% to 500% after sprucing up the old houses.

In response, Penang Town and Country Planning Committee chairman Jagdeep Singh Deo had said that the state cannot interfere with free enterprise.

By Arnold Loh The Star/ANN

Penang residents see red over Singaporeans snapping up properties

 

GEORGE TOWN: Public anger in the state is on the rise as Singaporeans continue to buy up pre-war houses here by the blocks.

NGOs and netizens are reacting negatively following The Star Online’s Facebook posting of the news yesterday.

Many are calling for stricter measures to limit foreign buying, but Penang Citizens Chant Group legal adviser Yan Lee warned that it would be useless as foreigners could sidestep such restrictions by simply forming Malaysian shell companies with local directors who are proxies or trustees.

“The corporate veil will shield them from these simple stop-gap measures. Instead, these measures end up keeping out individual foreigners who earnestly want to own property here because they just want to live in Penang.

“The Penang government is more concerned about collecting development charges. The more it allows development, the more money it collects,” he lamented.

Yan Lee was commenting on cooling measures here since 2012 that prevent foreigners from buying landed property of less than RM2mil on the island and RM1mil on the mainland.

For stratified property, the cap is not less than RM1mil both on the island and the mainland.

There is also a state approval fee of 3% over the purchase price.

State Town and Country Planning Committee chairman Jagdeep Singh Deo said in a statement yesterday that statistics had shown that these measures had reduced foreign buying of Penang property by about 50% since 2013.

George Town Heritage Action held a press conference on Thursday to reveal that Singapore developer World Class Land (WCL) had acquired 236 pre-war houses in and around the heritage zone totalling about 250,000sq ft, equal to 26 football fields.

According to the annual report of WCL’s parent company, Aspial Corporation Ltd, the properties are held by six Malaysian companies – WCL (George Town) Holdings, WCL (Magazine), WCL (Macallum), WCL (Noordin), WCL (Bertam R) and WCL (Bertam L).

In the Companies Commission of Malaysia’s online portal, there are also company records of WCL (Malaysia) and WCL (Penang).

By Arnold Loh The Star/ANN

Related posts:

Rejuvenating George Town, Penang

 Oct 30, 2010 When I first set eyes on Penang, my first impression was green … Thus, if the
Northern Corridor can escape the middle income trap, then, …
 Feb 29, 2016 GEORGE TOWN: Penang has now overtaken the Klang Valley as the most
attractive place for property investment. In its Malaysia Commercial …

 Jun 5, 2016 WHILE the property market in Malaysia may be subdued, Penang is still
generating ….. Penang is best for property investment in Malaysia .

Aug 18, 2016 KUALA LUMPUR: Malaysia is no longer stuck in the middleincome trap, as its
gross national income (GNI) is now progressively growing …
 Jun 28, 2016 While young adults all over the world are renting homes, Malaysians prefer to own homes as soon as they get their first pay cheque. Instead of …

Young adults in developed countries rent, we buy houses for good


While young adults all over the world are renting homes, successful Malaysians and Singaporeans prefer to own homes instead of cars, as soon as they get their first pay cheque.Instead of blowing their cash on pricey gadgets, young Malaysians are saving up for their first home.

While most Gen Y shy away from owning property in developed countries and big cities, demand from millennials here is still holding, especially with parents assisting them with the downpayment, Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Seri F.D. Iskandar said.

(Gen Y, also known as millennials, are commonly referred to those who are born in the early 1980s to 2000s. They are sometimes referred to as the strawberry generation).

Demand from first-time buyers, including the younger generation, remains strong although housing affordability is a challenge, said Bank Negara.

The central bank added that they accounted for 75% of 1.47 million borrowers.

Owning and investing in a house remains a priority for many Malaysians.

This is reflected in the household borrowing trend where the buying of homes continues to be the fastest growing segment of household lending, with annual growth sustained at double-digit levels (11% as at end-March 2016), said Bank Negara in a statement.

Those who cannot afford it themselves, and do not have parents to help, turn to their friends.

In his 30s, Daryl Toh, and two of his college mates own a condominium in Penang; they pooled their resources to purchase the unit five years ago.

“It’s in a premium area and since we couldn’t afford a place on our own – at least not prime property, we became joint owners.”

Financial adviser Yap Ming Hui said it makes perfect sense to own.

“Of course the Gen Y here are still keen on buying. You pay the instalments and eventually own a home. Only those who can’t afford to buy are forced to rent.”

Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector of Malaysia adviser Wong Kok Soo said property prices in Hong Kong have escalated beyond the purchasing power of the Gen Y but the trend hasn’t caught on here – yet.

Wong, who is also a consultant with the National House Buyers Association, however, said there were signs that the Gen Y could no longer afford to live in big cities like Kuala Lumpur, Penang Island, Johor Baru and Sabah.

“Parents are chipping in for the downpayment. And, commuting from the suburbs to the city centre is still an option.

“But when prices get inflated far beyond their means, the same will happen here (as in Hong Kong),” said Wong, who, however, felt that even if demand dropped, it would not be substantial.

Iskandar agreed, saying that although the property market was slow now, the drop was manageable. “Like everything else, it’s cyclical. “The property market goes up for years and after some time, begins falling before rising again.”

He said the market would pick up with the completion of infrastructure development and public transportation facilities.

Rehda, he said, was working closely with the Government to find ways to facilitate home acquisition especially among first-time buyers.

“We proposed a review of the financing guidelines that have negatively impacted buyers’ ability to secure financing,” he said. – The Star/Asia News Network

Demand from first-time buyers still strong despite affordability challenge

PETALING JAYA: Instead of blowing their cash on pricey gadgets, young Malaysians are saving up for their first home.

While most Gen Y shy away from owning property in developed countries and big cities, demand from millennials here is still holding, especially with parents assisting them with the downpayment, Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Seri F.D. Iskandar said.

(Gen Y, also known as millennials, are commonly referred to those who are born in the early 1980s to 2000s. They are sometimes referred to as the strawberry generation).

Demand from first-time buyers, including the younger generation, remains strong although housing affordability is a challenge, said Bank Negara.

The central bank added that they accounted for 75% of 1.47 million borrowers.

Owning and investing in a house remains a priority for many Malay­sians.

This is reflected in the household borrowing trend where the buying of homes continues to be the fastest growing segment of household lending, with annual growth sustained at double-digit levels (11% as at end-March 2016), said Bank Negara in a statement.

Those who cannot afford it themselves, and do not have parents to help, turn to their friends.

In his 30s, Daryl Toh, and two of his college mates own a condominium in Penang; they pooled their resources to purchase the unit five years ago.

“It’s in a premium area and since we couldn’t afford a place on our own – at least not prime property, we became joint owners.”

Financial adviser Yap Ming Hui said it makes perfect sense to own.

“Of course the Gen Y here are still keen on buying. You pay the instalments and eventually own a home. Only those who can’t afford to buy are forced to rent.”

Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector of Malaysia adviser Wong Kok Soo said property prices in Hong Kong have escalated beyond the purchasing power of the Gen Y but the trend hasn’t caught on here – yet.

Wong, who is also a consultant with the National House Buyers Association, however, said there were signs that the Gen Y could no longer afford to live in big cities like Kuala Lumpur, Penang Island, Johor Baru and Sabah.

“Parents are chipping in for the downpayment. And, commuting from the suburbs to the city centre is still an option.

“But when prices get inflated far beyond their means, the same will happen here (as in Hong Kong),” said Wong, who, however, felt that even if demand dropped, it would not be substantial.

Iskandar agreed, saying that although the property market was slow now, the drop was manageable.

“Like everything else, it’s cyclical.

“The property market goes up for years and after some time, begins falling before rising again.”

He said the market would pick up with the completion of infrastructure development and public tran­sportation facilities.

Rehda, he said, was working closely with the Government to find ways to facilitate home acquisition especially among first-time buyers.

“We proposed a review of the financing guidelines that have negatively impacted buyers’ ability to secure financing,” he said. – By Christina Chin The Star

A pricey priority

 

Wary of big, life-changing purchases, the ‘Strawberry Generation’ – those ‘easily bruised’, coddled young people in their 30s – prefers to rent, global reports say. Malaysians, however, are bucking the trend despite steep property prices. Mainly thanks to supportive parents, it seems.

BEST friends Leh Mon Soo, 38, and Brandy Yu, 39, are finally buying their first home.

After months of serious scouting, the two managers found units that matched their budget and needs, coincidentally, in the same condominium in Petaling Jaya. Leh is getting a three-bedroom unit while Yu is happy with a 48sqm studio apartment.

Yu feels that the RM365,000 she’s paying is affordable as she can still save about RM1,700 monthly after paying the loan instalment.

“I’m only paying RM400 more a month than what I’ve been forking out for rent. And unlike the rental, this unit will be mine one day,” she says.

Leh ended up forking out a whopping RM690,000 even though she dreads the long-term commitment. While “not a bargain, and at the upper limit of what I can afford”, she says that it’s still a pretty good price, as other, smaller, units were going for higher prices.

“I was only willing to pay RM500,000 initially. Then I saw a two-bedroom in the same condominium going for RM680,000. So I bit the bullet and got this. Property prices won’t be dropping any time soon and our ringgit’s shrinking. It’s now or never. I’ll have to cough up even more later if I don’t get a place now,” she says pragmatically.

The soon-to-be neighbours think property is still in demand, even among Gen Y-ers, aka Millennials (those born in the 1980s and 1990s, typically perceived as brought up and very familiar with digital and electronic technology).

But they’re more privileged because their parents have either already invested in property for them or are helping them buy it, Leh offers. Renting is not for the long-term, she says firmly, and even the younger ones know that.

The Malaysian mindset, Yu quips, is that everyone must own at least one property.

Gym owner Chip Ang, 26, agrees. He got the keys to his new 78sqm unit in Shah Alam last week.

Although it was his parents who suggested he get the RM168,000 place under the Selangor Government’s affordable housing scheme, Ang says property ownership is always a hot topic between him and his friends. Young professionals want to own property. The issue is affordability, he thinks.

“Many are unrealistic. They want their ideal home in the ideal place. Of course that’s unaffordable. Most affordable homes are in up and coming townships, not prime locations.”

The experience of getting his own place was a “blur” because it happened so fast, he says, though he does recall that, “because it’s affordable housing, I had to fulfil a number of requirements including proving that I’m a bachelor”. While the RM700 monthly mortgage payment is doable, he’s still nervous about being “tied down”.

Writer Teddy Gomez, 29, doesn’t think people have given up on owning property but sees a new trend emerging.

“Buying property is still big here but I see more renters because it’s cheaper and more flexible,” says Gomez, who got “a little help” from his dad buying a 83sqm apartment in Kuala Lumpur last year. Although the cosy RM400,000 unit is “not really affordable”, he says it’s time to leave the nest.

Like Gomez, a blogger who only wants to be known as Robyn, 24, thinks it’s nice to have your own space. She’s moving into an apartment in Petaling Jaya soon. The fresh graduate admits being lucky because her dad’s the owner. She’s getting the three-room unit for less than RM140,000 although it’s valued at over RM750,000.

“For the next three years, I’ll pay the RM3,800 monthly loan instalments. Now, I’m only contributing RM2,000 because I just started working. Dad’s helping until I can afford to take on the full amount myself.”

She knows she’s better off than most her age and is thankful for her family’s support – many of her friends are also looking for properties to buy but are resigned to living outside the city in places like Bangi and Kajang in Selangor. Still, with a RM200,000 budget, they’re willing to travel and own property rather than pay rent indefinitely.

Federation of Malaysian Consumers Association (Fomca) secretary-general Datuk Paul Selvaraj says it’s unfair to tell consumers to live on the outskirts of city centres because public transportation is still a problem in the Klang Valley. Unless the homes are accessible, living far away from the workplace isn’t practical.

National House Buyers Association (HBA) honorary secretary-general Chang Kim Loong sees a very strong demand for affordable properties in Malaysia because of our young population and urban migration.

For instance, the Government’s First House Deposit Financing (MyDeposit) scheme that was launched on April 6 received more than 6,000 online registrations within a week, a sure sign that Malaysians are still keen on owning property.

Fomca’s Selvaraj says property is a priority for most Malaysians because it’s a sound investment. They just can’t afford it in most urban areas.

“If you’re living on bread and water after paying your loan, then the house is unaffordable. For most young families, RM300,000-plus is affordable but it’s RM600,000 homes that are being built.”

Property is the best hedge against inflation so demand will always be strong, says HBA’s Chang. But there’s a “serious mismatch” between what’s classified as affordable by developers and the rakyat’s definition. To developers, an affordable property for first-time buyers is RM500,000. For upgraders, it’s up to RM1mil. Definitions on the ground are much lower. First-time buyers deem RM150,000 to RM300,000 affordable while those looking to upgrade can only pay between RM300,000 and RM600,000.

But if you can afford it – with family help, perhaps – M. Rajendran, 53, says invest early. The air traffic controller got his double-storey home in Kajang 21, Selangor, years ago for RM146,000. It’s worth at least RM600,000 now.

“If I hadn’t bought it then, I definitely wouldn’t be able to afford it now with the financial commitments I have. And at my age, no bank is going to give me a loan. Buy when you’re young because it’s cheaper and you can settle your loan faster.”

However, he warns that current economic challenges could result in a rise in the number of abandoned projects, so those looking at new properties should be cautious and do their homework.

“Scout around. Choose locations with infrastructure and amenities so that the potential for property prices to appreciate is higher.” – By Christina Chin The Star

Don’t bank on the banks

 Chang Kim LoongRELAXING lending conditions won’t help more people buy their own homes. It will only worsen the situation as developers increase prices further to match the lending surge, predicts Chang Kim Loong, honorary secretary-general of the National House Buyers Association (HBA).

Datuk Paul Selvaraj also doesn’t think it’s a good idea. The Federation of Malaysian Consumers Association secretary-general says home ownership is a right, and it’s the Government’s responsibility to make it a reality. The Government, he stresses, must either build more affordable housing or force developers to cater to the neglected market. It’s wrong to force banks to take bigger lending risks by calling on them to relax lending conditions, he feels.

“Banks will only lend money if they can get it back. It’s unfair to expect them to do otherwise. Also, if the borrowers cannot pay, they themselves will end up with a big headache.”

Banks are rightly stringent as times are uncertain, says Wong Kok Soo, an adviser to the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector of Malaysia and consultant to the HBA.

Lenient policies encourage purchases that are beyond one’s means and are not a good idea; instead, the margin of financing should be increased or the loan tenure extended, for first home buyers. For existing loans, there should be some flexibility in extending tenures and adjusting debt servicing ratio, he feels.

Last year, housing in Kelantan, Penang, Sabah, Sarawak and Selangor, as well as Kuala Lumpur, were listed as severely unaffordable by market experts. Nationwide, only Malacca made the affordable category with housing in the other states deemed either seriously or moderately unaffordable.

Bank Negara’s “Financial Stability and Payment Systems Report 2015” showed an increasing supply of homes above RM500,000 while those priced below RM250,000 accounted for less than 30% of the total launches in the first nine months of last year.

Deputy Urban Wellbeing, Housing and Local Government Minister Datuk Halimah Mohamed Sadique has since called on developers to build more houses priced at RM300,000 for Malaysians.

The next generation won’t be able to own property without financial help from their parents unless concrete measures are taken to increase the supply of properties costing between RM150,000 and RM300,000 and to stem the steep rise in existing property prices due to excessive speculation, says HBA’s Chang.

A Khazanah Research Institute report reveals that Malaysia’s housing market is considered to be “seriously unaffordable”, with a median house price of more than four times the median annual household income. This problem, Chang notes, surfaced a little under a decade ago but if prices continue to soar, the situation could worsen.

Not that there aren’t affordable schemes and funding plans in place to help – in the last 50 years, scores have been introduced but information on them is scarce, he observes. Details of projects by developers, state agencies and federal bodies must be available in a public database, he suggests. And a single umbrella body under the Federal Government must coordinate the distribution and availability of such units.

Chang stresses also that there’s no place for racial profiling when it comes to housing. Whoever deserves a house must get a house, he insists.

There’s never a wrong time to buy property but one must balance the risk of buying with renting, he advices. Owning a house is riskier as buyers take on enormous debts, sign multi-year loan agreements and become responsible for homeowner costs, he cautions.

“Flip through the newspapers – you’ll see many proclamations of sales of units for public auction that are below RM50,000. Some even dip below RM10,000. On bank websites, you’ll find property foreclosure cases.”

A list of properties put up for auction by CIMB bank showed 35 units in Selangor at reserved prices of less than RM42,000 – that’s the price of a new low-cost unit, notes Chang.

Low-cost units auctioned off for half of the purchase price is an alarming trend, he says. Unfortunately, there aren’t any official statistics on how many low income earners have lost their homes or are struggling with their monthly loan commitment. Where do these homeowners and their families end up living, Chang wonders.

Foreclosures can devastate a family’s economic and social standing, possibly leaving them poorer than before they bought the property. Financiers, local authorities and communities benefit from homeowners being better informed of their rights and responsibilities as borrowers. Ensuring that lower income households have sufficient personal financial management skills and support is crucial.

It’s not enough just to provide homes for the low- and medium-income group. Chang recommends that a homeownership education programme be set up to raise financial literacy and prepare households for the responsibilities of owning a home.

“Manuals, advice or information given via telephone, workshops or counselling to help households maintain their homes and manage their finances must be given before first-time buyers sign the sale and purchase agreement. Public housing schemes are only successful if buyers can hold on to their property.”

Specifically, Chang says education should cover:

> Pre-purchase period – understanding the various types of available housing, the process of buying a house, loan process, and financial preparation needed; and evaluating household needs.

> Post-purchase period – budgeting monthly expenses; making payments promptly; avoiding loan defaults; living within a community; social responsibility; property taxes, assessments, insurance, service charges and sinking fund; home maintenance; and handling problems with the property.

Educate yourself and learn from the mistakes of others to avoid being disappointed or, worse, becoming “house poor” (when most of your income goes towards home ownership), Chang advises. Aspiring buyers must get something that’s within their budget. It could be an older or smaller unit but start small and slowly increase your property portfolio, he says.

“Don’t let friends or family influence you into getting something that’s above your budget, as home ownership is a long term investment. You must be able to service the loan while maintaining an acceptable standard of living.”

The majority may prefer to rent while waiting for the market to soften but it’s better to have your own shelter, says HBA consultant Wong.

The average Malaysian, he insists, can still own property. Consider buying at auctions. Research is a must, though, as inspections aren’t allowed at auctions. It’s an “as is, where is” bid, he stresses. Find out about the surrounding units and the neighbourhood, he suggests.

Better to own but…

PROPERTY investment helps maintain our socioeconomic well-being and must be encouraged, says Datuk Seri F.D. Iskandar, president of the Real Estate and Housing Developers Association Malaysia (Rehda).

Property – a wealth-creation instrument without the volatility of stock markets – has consistently out-performed traditional investment options like bonds, he points out.

But to invest, one must study the property and its market potential. With the right location and strategy, property can be a very profitable investment. The value will appreciate over time, he says.

To many, the most important aspect of owning property is to secure a home. In current conditions, most developers are coming up with attractive packages to close the deal, so it’s a good time to buy. Securing a bank loan now, though, is one of the biggest barriers, he says.

Rehda’s recommendations to the Government and Bank Negara are:

> Encourage innovative home financing packages like the developers interest bearing scheme (better known as DIBS).

> Allow flexible or accelerated tiered payments (longer loan tenure so you pay less now but more later when your salary has increased).

> Relax loan approval criteria with higher financing margins (up to 100%).

Also, banks, he says, shouldn’t just focus on a loan applicant’s current net income; future prospects of higher salaries and other incomes and bonuses must be taken into account.

He dismisses talk that the average Malaysian has been priced out of owning his or her first home.

There’s still a range of prices and options in both the primary and secondary property markets, he says.

With new launches, developers usually offer special incentives, rebates or discounts that will help buyers reduce their initial payment. In the secondary market, however, what you see is what you get. Depending on what you’re looking for, factors like location, surroundings, facilities, transportation and infrastructure will help you decide.

“Property prices in city centres are high because of land value but there are many cheaper options in less-urbanised areas. There are many affordable houses, including those by PR1MA (the 1Malaysia People’s Housing Scheme). The average Malaysian can definitely afford these.

“With an improving transportation system and connectivity, these places are now easily accessible from city centres.”

We are paid enough

Property price and value to Income per country in SEA 20014

WAGES are rising in tandem with the country’s consumer price index (CPI), which is a broad measure of inflation and our productivity.

Both criteria are used to determine wages here, says Datuk Shamsuddin Bardan, executive director of the Malaysian Employers Federation.

While Malaysians lament how their salaries aren’t enough to cope with soaring costs of products and services, their grouses aren’t reflected in the low CPI numbers, he says.

“Measured against the CPI, our average salary growth isn’t lagging. In the region, our salaries are second only to Singapore. Of course, you must consider the currency exchange. Singaporeans earn an average of S$3,000 (RM9,000) while Malaysians take home RM2,800 monthly.

“But bear in mind that the productivity of Singaporeans is 3.8 times higher than ours. Their per unit cost of production per employee is lower than us. In the United States, the productivity level is seven times higher than ours. So when you say we aren’t earning enough, you have to consider our productivity level too,” he states, pointing to how in some of our neighbouring countries, the average salary is less than US$100 (RM400).

However, he acknowledges that houses are beyond the reach of most – and fresh graduates in particular – and adds that even when both husband and wife work, they still may not have enough for the down payment and are forced to rent.

It’s tough, he admits, even for those who have already been working for a decade, to own a house now without financial support from parents.

Related: Renting is OK too

Related Posts:

Penang is best for property investment in Malaysia

 Feb 29, 2016 GEORGE TOWN: Penang has now overtaken the Klang Valley as the most
attractive place for property investment. In its Malaysia Commercial …

  Penang’s lively market

 Jun 5, 2016 WHILE the property market in Malaysia may be subdued, Penang is still
generating interests among buyers and potential investors.


 
 THE Penang housing market moved sideways on both the primary and …..

 

  Malaysian property market correction to continue in 2016 … 

May 7, 2016 property market correction to continue in 2016, its economic cycles … “Property
price growth for 2015 had dipped 2% compared with 2014, …

Penang property prices move sideways in Q1 2016


THE Penang housing market moved sideways on both the primary and secondary markets in the first quarter of the year, says Michael Geh (pictured), director at Raine & Horne International Zaki + Partners.

“I noted active transactions on the secondary market with prices staying flat,” he says in presenting the 1Q2016 Penang Housing Property Monitor.

Banks, he adds, only provide loans of up to 70% to 80% of a property’s value and serious first-time homebuyers have to make up the difference in order to sign the sales and purchase agreement.

Michael Geh“A few primary market projects have obtained the Advertising Permit and Developer Licence (APDL) and moved into the stage of processing loans from commercial banks and signing the S&P.” These projects include I-Santorini, SummerSkye and ForestVille, all under Ideal Group.

Will the prices of Penang houses, considered expensive, drop because of the soft market conditions? Geh says prices have come down to more realistic levels, especially with the government pushing the developers to build properties priced from RM300,000 to RM400,000 in the last two years, specifically for owner-occupiers.

Some of these properties, in areas such as Sungai Ara, Patani Road and Relau, have been taken up and are currently under construction, he adds.

Elsewhere in the country, some developers are pushing sales by providing financial assistance to the purchasers. Will those in Penang follow suit?

Geh says such a practice is not widespread for now. “Besides Sunway Bhd and S P Setia Bhd, I don’t see any other developer providing financial packages at the moment. I believe there are plans for such assistance but so far, nothing has been announced.”

Image result for Penang Transport Master PlanHe believes a catalyst for the state’s housing market would be the much-talked-about RM27 billion Penang Transport Master Plan (TMP). The ambitious plan will not only benefit the people but also bring about a more equitable housing situation and help retain local talent.

The TMP, he feels, will lead to equitable home property prices as areas that are not in prime locations will become more accessible, boosting demand for homes and resulting in higher prices. Properties in prime areas, which normally fetch higher prices, should see some price correction as demand is more evenly distributed across the state.

Image result for Penang Transport Master Plan

Apart from that, Geh opines that the TMP will help retain talent, which will subsequently impact the property market as the pool of workers seek to rent or own residential properties.

Image result for Penang Transport Master Plan“Penang needs the TMP to grow in the next 10 years. We need to stem the migration of youths to the Klang Valley, Iskandar Malaysia and Singapore in search of better job opportunities. We need to create jobs and make conditions more liveable for our youth to prosper,” he says.
Penang LRT map route masterplan

At present, two light rail transit lines have been approved under the TMP — one from Prangin Canal to Penang International Airport in Bayan Lepas and the other from Prangin Canal to Straits Quay.

 As for creating jobs, the state government is making a concerted effort

to develop new business sectors so that Penang can stay relevant to the
global economy.

“An industry that has been highlighted by the state is the knowledge economy, such as apps and animation,” Geh says. This has been identified as a key economic sector for the next decade.

There is a proposal for three reclaimed islands in the southern part of Penang island to locate businesses for this sector, he says, and for the islands to be connected by an LRT line that extends from Penang International Airport.

However, it has not been plain sailing for the TMP because one of its components — the Sky Cab or cable car system — has been rejected by the federal government. The 4.8km cable car system, according to the Penang government’s TMP website, was to have connected Butterworth on the mainland to Jelutong on the island. While this is a blow to the state government’s plans, Geh does not believe it will affect property prices.

“Cable car systems are generally more for tourists and not meant to move high volumes of people. I don’t think there will be a large negative impact on the property market. High-volume, high-frequency vessels that travel on water may be a better solution,” he says.

Another component of the TMP is an undersea tunnel linking the island with the mainland. However, further details are not forthcoming at present.

A development that will have an indirect impact on the Penang housing market is the much-debated Gurney Wharf. This 3km-long reclamation project lies just off the shores of popular tourist spot, Gurney Drive.

Geh believes this project has great potential to benefit the island. “I believe Gurney Wharf is an exciting development because it creates recreational activities for Gurney Drive. I think it is a boost to the area.”

Terraced houses

The prices of landed properties did not rise much compared with those of high rises, the data compiled for the monitor reveals. This is due to “stagnation” as there were very few transactions during the quarter under review, compared with the high-rise sector where there was much more activity, Geh explains.

Nevertheless, property values have increased compared with a year ago.

For 1-storey terraced houses, some areas surveyed showed activity year on year but little movement quarter on quarter.

On the island, properties in Jelutong showed the highest price growth, rising 5.88% to RM900,000 from a year ago, followed by houses in Tanjung Bungah (up 5.26% to RM800,000). Houses in Sungai Dua, Sungai Ara and Bandar Bayan Baru saw slight price increases of 2.56%, 2.04% and 1.96% respectively while those in Green Lane and on the mainland saw no changes.

For 2-storey terraced houses, there was no activity q-o-q but prices rose y-o-y in some of the areas surveyed.

The prices of houses in Pulau Tikus rose 6.67% to RM1.6 million, followed by those in Sungai Ara (5.26% to RM1 million) and Sungai Nibong (4.55% to RM1.15 million). Prices remained unchanged in Green Lane and the mainland.

Semi-detached and detached houses

The 2-storey semidees in some areas saw more activity in 1Q2016 than in the previous quarter and last year. Prices in Sungai Dua and Minden Heights rose 6.67% to RM1.6 million q-o-q, followed by those in Sungai Nibong (up 5.71% to RM1.85 million) and Island Park (up 2.27% to RM2.25 million). Prices in Sungai Ara remained unchanged.

There was no q-o-q increase for 2-storey detached houses but 50% of the units surveyed in the monitor saw y-o-y activity.

Island Glades bungalows saw a 3.57% increase to RM2.9 million y-o-y , the prices of Green Lane houses rose 2.86% to RM3.6 million and Pulai Tikus houses were up 2% to RM5.1 million. House prices in Tanjung Tokong, Tanjung Bungah and Minden Heights remained unchanged.

Flats and condominiums

Three-bedroom flats in Green Lane and Bandar Baru Air Itam showed price increases q-o-q as well as y-o-y .

In Green Lane, prices rose 5.26% to RM400,000 q-o-q and 17.65% y-o-y. Units in Bandar Baru Air Itam rose 4.35% to RM240,000 q-o-q and 20% y-o-y.

Compared with a year ago, the prices of flats in Paya Terubong were up 12.5% to RM180,000, followed by Sungai Dua and Lip Sin Garden (6.06% to RM350,000) and Relau (3.45% to RM300,000).

Among the 3-bedroom condos, the biggest gainers were properties in Pulau Tikus, which rose 4.62% q-o-q and 9.68% y-o-y to RM680,000.

In Island Park and Island Glades, prices rose 4.17% q-o-q and 6.38% y-o-y to RM500,000 while condos in Batu Ferringhi rose 2.22% to RM460,000 q-o-q and y-o-y.

Batu Uban condos rose 5% to RM420,000 from the previous year but there was no activity q-o-q. The prices of Tanjung Bungah units remained unchanged.

The Edge Property

Soaring house prices worry Penangites below 30

GEORGE TOWN (June 21): Despite the affordable housing programme by the state government, Penangites, especially those below the age of 30, are worried that they are unable to own a house in the future.

This is because housing prices in Penang island have risen by about 50% for the last five years and even for houses that was built under the affordable housing project.

A Bernama survey showed that several affordable housing projects that were completed less than 10 years ago in Bandar Baru Air Itam was originally priced at about RM175,000 but currently being resold at RM300,000 and above.

State Housing, Local and Town and Country Planning Committee chairman Jagdeep Singh Deo, said the state government had no power to control the price of houses being sold by house owners.

At present the state government had set a moratorium of five years for affordable housing and 10 years for low cost housing before it could be sold in the open market.

“There’s nothing that can be done by the state government to control the price but, what we can do is to provide more affordable housing so that the people can buy at a lower price,” he said.

Muhamad Amir Amin, 26, who worked as a graphic designer, said he earned about RM2,300 per month and could not even able to buy a low cost house with that wage.

“A low cost house costs RM42,000, which I cannot even afford to buy and from my observation, there is no low cost housing in Penang any more.

“All are either low medium cost or affordable housing which cost RM75,000 and above,” he said.

Universiti Sains Malaysia (USM) Social Science senior academician, Zainab Wahidin said that building more houses to tackle the increase of property price was not a solution given that Penang’s land was limited, especially on the island.

“If the state keeps building houses as an effort to provide affordable housing there will be more empty houses than those being occupied.

“There must be a regulation to control the housing price as a house is a basic necessity. Everybody needs a house to live in,” she added.

Related posts

Rightways: Malaysian property market correction to continue in 2016 … 

May 7, 2016 property market correction to continue in 2016, its economic cycles … “Property price growth for 2015 had dipped 2% compared with 2014, …
%d bloggers like this: