updated below 300k list

Fuel price rise and crackdown on illegals affecting construction sector
By MARTIN CARVALHO | Updated: Thursday September 5, 2013 MYT 7:09:21 AM
http://www.thestar.com.my/News/Nation/2013...ion-sector.aspx

PETALING JAYA: People looking to own a house any time soon will have to pay at least 10% more for their dream home, according to developers.

They said the increase was due to the double whammy that has hit the construction industry – higher costs of building materials resulting from the 20 sen rise in the price of RON95 petrol and diesel and absenteeism among foreign workers because of the nationwide crackdown on illegal immigrants.

Real Estate and Housing Developers Association of Malaysia president Datuk Seri Michael Yam Kong Choy said the failure of foreigners to turn up for work was causing delays, thus adding to costs which contractors were certain to push to consumers.

He added: “The raids on construction sites have frightened even legitimate migrant workers who are staying away.

“This also happened in past raids, Legitimate migrant workers simply did not turn up for work or delayed their return from their country until the storm blew over.

“Because of the shrinking supply of workers, developers have to pay more for labour to meet contractual deadlines, failing which they will be penalised.”

Developers are bound by the Sales and Purchase Agreement and will have to pay compensation to buyers for late delivery, Yam said, adding that contracts in the private sector were awarded with no provisions for price adjustments.

While acknowledging the need to flush out illegal immigrants, he said any reduction in the number of workers would hurt developers.

On the fuel price hike, Yam said it affected the supply chain of the construction industry, involving more than 100 types of business.

Master Builders Association of Malaysia president Matthew Tee said members were complaining that their legal workers whose documents were being processed were staying away for fear of being arrested.

“Our understanding is that all foreign workers will be detained unless they can prove that they have proper documentation,” he said.

“This can be difficult as their documents may still be with their employer or immigration pending the affixing visa of stickers by the authorities.”

He added that there had been cases in the past of legal workers being detained for up to 14 days.

Tee hoped that there would be no recurrence of such instances, and warned against a repeat of the situation in 2002 when the construction industry was brought to a standstill due to a shortage of workers.

In George Town, the Penang Master Builders and Building Materials Dealers Association says it expected construction costs to rise by 3% to 5%.

Association president Datuk Lim Kai Seng said the cost of transportation was likely to rise 10% to 20%, and the prices of sand and cement by between 5% and 10%.

He said that cement now cost RM17.50 per 50kg while sand sold for RM70 per cubic metre.

BuyBuyBuy continues with EkoCheras
Photos from and do join us at: https://www.facebook.com/groups/115179435202482/


EKOCHERAS ::: All duplex SoHo. From 762 sf (various sizes) and from RM470,900+ onwards. Priced with no DIBS but with optional DIBS comes with top-up roughly 7.6%. No free SPA and stamp duty. Freehold. Mixed integrated development along Jalan Cheras. Connected walkway to Leisure Mall MRT station. Developer is Ekovest Berhad. Preview begins 6 September. No brochure and advertising materials as of 7 September 2013.

(Picture) Block J - left 8 units as of 6.01PM today.





(Picture) Block H - left several units as of 6.02PM today.

This post has been edited by cheryee: Sep 8 2013, 06:29 AM

Amazing demand for this project.

Last week.... 3 sign appeared.

1) Police and Immigrantion went on operation for illegal alien.
2) 20 cents increase in Petrol Price.
3) Gov announce postponement of ETTP projects not launched.

There is no need to increase currency rate to protect the ringgit from devaluation.

Do you think property price will still increase?

Of course. Points number 1 and 2 will directly impact on the cost of property prices. Look at the newspaper a few days back, they are quoting an increase of 10%. All signs are pointing to a further increase in the near term la!

Asking prices will definitely increase (for subsales). Transacted?

Future launches will be impacted as developers will be faced with increased in material prices and competition for manpower (foreign labour). Hence, the expected increase in prices for projects that are yet to be launched. With that i think the subsale prices will also follow suit.

From STAR today

-------------------------------------

Hot Issues For Consideration

07 Sep 2013
OF late, there has been talks that the real property gains tax (RPGT) may be be reinstated in the coming Budget 2014 to be tabled next month. Real Estate and Housing Developers Association (Rehda) has written to the authorities to state their views. Bank Negara is also studying the possibility of banning interest bearing schemes. The Developers' Interest Bearing Scheme (DIBS) is said to encourage speculation as buyers need only to pay 5% or 10% downpayment and need not pay anything until the property is completed. The return of RPGT and the possible removal of DIBS are signs to prepare the property sector for the challenging times ahead, as seen by the volatile stock markets in South-East Asia. While Malaysia has to tackle a number of issues in the greater framework of the economy, there are three issues befuddling the property sector - bubbles, speculative elements and affordability. Developers want a benign RPGT regime and the DIBS to be maintained while certain quarters want the return of the old tax structure of 30% tax on profits on disposal in the first year. The RPGT is both an anti-speculative and revenue-generating measure. RPGT will play its role to curb speculation, says property consultant Elvin Fernandez of Khong & Jaafar group of companies and the House Buyers Association (HBA). During the last two budgets, HBA had anticipated a tax regime with more bite and was sorely disappointed. There was a time when not all developers offer interest absorption schemes. Today, most are pressured to do so. Says Rehda president Datuk Seri Michael Yam: "It helps people get on the house-ownership ladder." "It also nurtures speculative tendencies," says Elvin. Incidentally, interest absorption scheme was the first to be banned by the Singapore government as early as 2009 in a series of measures to cool the property market. DIBS aside, the larger issue is transparency, says Elvin. When developers offer DIBS plus a host of other incentives - rental guarantee, cash back payment, free furniture, free stamp duty and legal fees - banks and lending institutions provide mortgage loans based on the larger headline figure inclusive of these discounts. A mortgage based on the real price, without discounts, would reduce the loan amount and lessen household debt. Discounts tend to bloat up the loan amount by another 10% and 20%, says Elvin. The provision of the real price, without the discounts, gives a true and real picture of the housing market. DIBS and discounts have also resulted in a buoyant primary market. In 2009, the National Property Information Centre recorded a total of 211,600 residential transactions, of which 12.24% were purchases from developers and 87.76% from the secondary market. Three years later, in 2012, out of 272,669 transactions, slightly more than a fifth (22.09%) were purchases from developers. "This has never occurred before. This is an extraordinary jump, and this is because of DIBS and the discounts given," says Elvin. The shift in the market is clear and this represents risk, he says. On the issues of housing beyond the reach of many, about a third of housing in the country is below RM150,000. Some of them are in enviable locations, for example near Jalan Maarof in Bangsar Kuala Lumpur. But these are not well-maintained and young professionals do not want to live there. It boils down to an overall property management issue. PR1MA Corp Malaysia CEO Datuk Abdul Mutalib Alias says more than 20,000 homes will be built under 15 affordable housing projects in Greater Klang Valley, Johor, Penang, Sabah and Sarawak in Phase 1.

from https://www.facebook.com/groups/115179435202482


This Weekend...

Puchong Town Centre - From 1,000sf and RM600psf

EcoSky Kuala Lumpur, Jalan Ipoh - From 861sf and RM630psf

Urbana Residences @ Ara Damansara - From 815sf and RM650psf

Vivo Residences @ 9 Seputeh - From 775sf and RM700psf

EkoCheras Service Residence Block E - From 596sf and RM720psf

Sentrio Suites @ Desa Pandan - From 570sf and RM750psf

Residensi 22 @ Mont'Kiara - From 1,878sf and RM750psf

You Vista @ You City Cheras - From 523sf and RM760psf

H2O Residences @ Ara Damansara - From 750sf and RM760psf

Three28 Tun Razak - From 700sf and RM1,000psf

Dorsett Residences Bukit Bintang - From 500sf and RM1,800 psf

This post has been edited by accetera: Sep 13 2013, 09:27 PM

Looks like 700psf starting to be common and soon becoming nominal ... Subsales need a little push here...

For condos and service apartments:

Klang Lama: RM450-500psf
Kuchai Lama:RM450-500psf
Ara Damansara:RM700-750psf
Subang Jaya:RM650-700psf

What about
1) Mont Kiara
2) KLCC
3) Bangsar

I want to follow this thread.

Cheras now joins RM650-RM1,200 psf

This post has been edited by accetera: Sep 22 2013, 10:04 PM

Taman Wahyu now joins RM630-RM700 psf

OLD KLANG ROAD 1100PSF

U refer to Verve KL?

How about psf new launch in KLCC?