Will the news report on DIBS be a Damper on MRT related properties??

This was just reported in Star on 29 jun 2013,
📻📡📢📢✂✂✂🔨.





By LEONG HUNG YEE hungyee@thestar.com.my

THE potential move to impose curbs on the Developer Interest-Bearing Scheme (DIBS) by Bank Negara may be negative for some developers in the short term and has little effect on banks.

StarBiz had reported that Bank Negara was studying the risks arising from the DIBS, with a view of potentially imposing curbs on it.

Basically, if you purchase property from a developer who offers DIBS financing packages, then the developer would bear the interest for the loan during the construction period.

In other words, you don't have to pay anything to the bank until construction is complete. You only start paying the bank instalments after the property is fully constructed.

DIBS has become a popular and easy financing package offered in joint-promotional activities between banks and developers in recent years.

CIMB Investment Bank Bhd research head Terence Wong said if the move by the central bank were true, then it would be "negative" for developers in the short term, although not entirely unexpected, as speculation on such a move had already surfaced in May.

"Although such a policy would have a negative impact on speculative demand, we believe the impact on earnings would be muted, while creating a healthier property market led more by fundamentals," he said, adding that he had heard whispers over the past few weeks on the possibility.

"We remain overweight' on the property sector, with Mah Sing Group Bhd as our top pick, and robust sales and earnings growth as sector catalysts. Any weakness in property stocks is an opportunity to accumulate, in our view," Wong added. Industry players are still awaiting a formal announcement from the central bank, if any.

Mah Sing's group managing director and chief executive Tan Sri Leong Hoy Kum pointed out that there has been no announcement on interest-bearing schemes thus far.

However, he hopes that any implementation would take into consideration the industry's feedback and the current market condition.

In addition, Leong said the lending environment was generally still conducive, with financing liquidity still attractive and interest rates still low.

While Mah Sing offers DIBS packages for some of its projects, it does not offer the scheme for its industrial, commercial and landed residential projects.

Hong Leong Investment Bank Research, meanwhile, believes that developers with a high concentration of high-end, high-rise developments such as Eastern & Oriental Bhd would be the most severely affected.

However, it reckoned that other major developers within its coverage would not be as badly affected, given their exposure to this policy shift would comprise less than 50% of their sales.

Kenanga Research analysts said there was market talk that Bank Negara might want to do without the easy financing packages as part of the property lending curb.

However, they say quick checks with developers under their coverage indicated that the developers were not extending this scheme to many projects at the moment, as banks were also discouraging developers from undertaking the scheme because of speculative activities.

"Notably, Hua Yang Bhd's and Crescendo Corp Bhd's projects do not use this scheme, so they would be least affected in terms of demand. So, in terms of fundamentals, it should not hurt demand too much, particularly for the bigger developers.

"It would affect stock sentiment in the short run, so do expect further sell-downs if the curb on DIBS materialises not even the high dividend-yielding ones would be spared," they opined.

In the medium term, Kenanga Research does not expect prolonged sell-downs, as the Government was already talking about implementing the build-then-sell model, which would restrict future supply and lend strength to demand and larger players such as SP Setia Bhd, Mah Sing, IJM Land Bhd and UEM Sunrise Bhd.

"Currently, our sector is under review. Our existing call is overweight' and we are likely to maintain this, but with a more selective or buy-on-weakness stance. We are likely to continue promoting affordable developers like Hua Yang and Crescendo due to their resilient demand-based profile. We also like Johor-based developers like UEM Sunrise, as we believe there would be more positive news flows towards the year-end, for example, the Malaysia-Singapore Rapid Transit System, the listing of Iskandar Waterfront Holdings Sdn Bhd and more strategic tie-ups," they added.

Concurrently, Maybank Investment Bank Research said assuming DIBS packages were banned, it estimates the worst-case scenario to be a marginal 0.7 percentage point to be shaved off its 2014 industry loans growth forecast of 10.5% to 9.8%.

"We believe domestic banks have been more tempered in their exposure to the mortgage segment, and channel checks point to limited exposure at this stage. We maintain our industry loan and earnings forecasts for the individual banks for now.

"We remain overweight' on the banking sector, with our buys' being AMMB Holdings Bhd, RHB Capital Bhd, BIMB Holdings Bhd and Hong Leong Financial Group Bhd," Maybank said.

It explained that general guidance was that such loans had made up 15%-20% of new mortgage loans over the past few years.

Thus, some dampening effect was to be expected.

"Nevertheless, we believe the impact is likely to be contained by the fact that the housing loan growth of the Big Six' banks has been measured and such loans account for less than 5% of total residential loans for the big banks."

Share loh lubang..

From star 27 jul 2013

LRT, MRT are the best maps for hunting worthy property FOR those who have attended talks by reputable local mapmaker Ho Chin Soon, they would know by now that his mantra goes like this: "Follow the infrastructure." That being the case, light rail transit (LRT) and mass rapid transit (MRT) trails are the best maps for anyone hunting down that property with good appreciative value. When the train starts running, Ho of Ho Chin Soon Research says, students and expats or anyone who cannot afford their own place and relies on public transportation would rent around train stations. "And if rent yield is good, that means price will be good for the property," he says after a talk on Bukit Jalil as a strategic location, hosted by Trinity Group Sdn Bhd. "With developments extending to Sungai Buloh and Cyberjaya, Bukit Jalil is a central area within Klang Valley." Using the Kinrara Army Camp as a centre of gravity, Bukit Jalil sits within a 22km radius - what Ho dubs the first-tier location that captures ample medical facilities available. What more it has two new LRT stations in construction and many road improvements underway, and the effect will spillover to surrounding areas like Puchong too. North of Bukit jalil, Overseas Union Garden (OUG) is reported to site the monorail extension which is proposed to run from KL Sentral, through Old Klang Road and snake all the way to Bandar Sunway. "Currently the average growth for Kuala Lumpur house price is 6.71% per annum. Buyers can expect a good return on investment in a mere five years once all the roads and rail projects are completed." Boutique developer Trinity Group - not to be confused with Trinity Corp Bhd - has hit the nail on the head with its Bukit Jalil residential high-rise which are taking shape alongside the Bukit Jalil LRT extension just a stone's throw away. The latest to be launched by the company, Z Residence will be close to two LRT stations, one only 350 m away while the other about 500 m away. "Not only the LRTs are here, the road improvements around the area are 70% to 80% completed," Ho says of the development. Furthermore, a Chinese school will be relocated to Bukit Jalil from Jalan Ampang, enhancing a family-friendly environment. The freehold Z Residence can be seen starkly from the Shah Alam Highway, sited adjacent to Kiara Residence which is leasehold. Access to this enclave is not limited to the LRTs and roads from the Bukit Jalil end but also via Jalan Awan Besar and a smaller link via Jalan Awan Cina from OUG. The 1136-unit Z Residence, targeted to be completed in June 2014, has a 95% take-up rate since its official launch in August 2011. "The positive response to the project signals a robust demand for developments situated within a strategic location with great infrastructure, facilities and for products with cutting-edge concepts and themes," general manager Ng Ching Yee says. As for the other ongoing development Zeva @ Equine South, 92% has been taken up since its launch in September 2012, a reflection of the growing appeal for mixed-use developments. Zeva is targeted to be completed in June 2015. Ng also reveals that Trinity has another condominium project in the pipeline, targeted to be launched in the first quarter next year. "We will be launching a new project sited on a 1.41ha freehold land in Sungai Besi. We are not able to share much about the project at this point of time but it will carry Trinity's hallmark of high quality and high value with a stylish edge," she says. One thing is for sure, Trinity will stick by its philosophy of building affordable high-end products. "We believe that property buyers today are not driven by price but value and innovation is key to creating value for our customers. Good design can lower cost, attract attention and communicate value to the intended target audience." In value-adding its customers, Trinity has made a RM3mil investment to improve the connectivity to Z Residence immediately when the project is completed. The missing link it is building to connect the development to Bukit Jalil Highway will benefit the entire vicinity. This is not the first time the group has worked out assessibility to its projects. For its Zest @ Kinrara 9 project completed and handed over early last year, Trinity also erected a RM7mil access ramp to ease the traffic congestion towards the development. "We were certain that with the improved accessibility and connectivity, the property price in the vicinity would be greatly enhanced. True to our expectations, the price of the serviced apartments generally shot up to 89% higher than the developer's price right after vacant possession." As a indication, Zest, which sold at RM250,000 for a 1,213 sq ft unit in 2009, has a sub-sale price of RM530,000 today. The four-block Z Residence is priced at RM452 to RM525 per sq ft, more affordable than neighbouring projects like Exsim Development Sdn Bhd's Twin Arkz at RM700 per sq ft and Berjaya Properties' KM1 at RM650 per sq ft. Z Residence has five layouts to choose from, ranging from 1,032 sq ft to 1,407 sq ft. Separately, Trinity has been on the hunt for overseas ventures as well, particularly in Asia. "We definitely have plans to look into the international market as that is the only way to expand," Ng says. She adds that the group is in talks with a few landowners and joint-venture partners. At the moment, the promising deals are now centred in China and Singapore while Cambodia and Thailand remain potential countries. As for what Trinity intends to build overseas, Ng says it would depend on the target market and pricing when the time comes. "Currently, we are studying several proposals from our joint-venture partners but we have not decided on anything concrete. So we don't think that we will have any overseas projects coming on stream next year."

If you read the article carefully, it is asking readers to use the map and compare prices of properties around the area.

That is how I am reading the article.

May be just before Raya.... Then called "raya sharing"

😄😄😄

Will bounce one

Article in propertyguru
--------------------------


Kwasa Land Sdn Bhd, the master developer of the Kwasa Damansara township, has announced the winning bidders for two land parcels in Sungai Buloh, namely TRC Land Sdn Bhd and Pink Corner Sdn Bhd.

TRC Land emerged as the highest bidder for a 0.695ha land at Lot 73971 in Sungai Buloh, Petaling district due to its offer price of RM6.133 million (RM82 psf). On the other hand, Pink Corner secured its 1.73ha plot at Lot 73535 in Sungai Buloh Mukim for RM13.069 million or RM70 psf.

This means the plots were sold above their booking price by 11 and 13 percent respectively. Overall, nine bidders took part in the tenders, which were only open to Bumiputera firms.

In addition, the land parcels are expected to benefit from the upcoming township, which includes a future connection to the Mass Rapid Transit line.

Only Bumi firms were allowed to participate in the tenders because Kwasa Land has set aside 35 percent of its land sales to this group. This is in line with the government’s directive to support Bumiputera participation.

“The call specifically addresses the Bumiputera Economic Empowerment Council's desire of enhancing Bumiputera equity ownership in the corporate sector as well as asset ownership,” said the master developer.



Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my

Today star, shortlisted developers for town centre of Kwasa Land 💡💡💡📈📈📈