Category Archives: 3.Malaysia Property News

Property attributes in Malaysia – Key things to look for

BY LOANSTREET.COM.MY

http://www.starproperty.my/index.php/articles/property-news/property-attributes-in-malaysia-key-things-to-look-for-2/

WHEN purchasing or refinancing a property in Malaysia, there are many different attributes (e.g. Lease, Subdivision, Land Type) the property can have. Each requires different treatment during the conveyance process, and can even affect your housing loan / mortgage application. This article debunks and summarises everything you have ever wanted to know about types of property attributes in Malaysia, and how it will affect your purchase and refinancing decisions.

Property attributes in Malaysia - Key things to look for

Freehold vs Leasehold
Leasehold land belongs to the state and is leased out to an “owner” for a number of years. Towards the end of a lease, owners are required to pay a fee to extend the duration of the lease. Freehold land on the other hand belongs to the owner (the purchaser) indefinitely.

Additionally, during a sale and purchase process, consent is required from state authorities (Land Office) before the transfer can proceed. The state can withhold approval for any number of reasons. Due to this additional step, it can take much longer to buy or sell a leasehold property.

For these reasons, freehold properties are usually more expensive than similar spec leasehold properties.

Leasehold Freehold
Land belongs to the state, leased to owner for a number of years Land belongs to the owner
At the end of the lease, owners must pay to extend the lease Ownership is indefinite
Requires state consent (obtained at land office) to transfer ownership Does not require state consent to transfer ownership (except in certain specially earmarked properties)
Most banks will not finance a property if the lease has less than 30 years to go No question of existing lease duration for home loans / mortgage

Subdivision of Title
All properties have a title deed which denotes the owner of a property. During the construction and development phase, it is likely that an entire swathe of land will fall under a single “Master Title”.

But typically, multiple houses or apartment units would be built on the land and sold off individually. So ideally, the “Master Title” would be subdivided into multiple smaller titles before being sold to individual purchasers. For landed properties, these are known as “Individual Titles”. For high rise properties, these are known as “Strata Titles”. Once subdivided, to transfer ownership, a Memorandum of Transfer (MoT) would be filed at the Land Office. The purchaser’s name would appear on the title deed itself, making them the new rightful owner of the property.

However, in practice, it is common for developers to sell the properties still on Master Title, and where subdivision may happen only many years later. In such cases, to buy/sell, instead of a MoT at the Land Office, a temporary Deed of Assignment (DoA) would be filed at the High Court. Based on the Master Title, the developer is still the rightful owner. However, the developer has “assigned all their rights” over individual parcels / units within the land over to the purchaser. Do note that once the individual / strata titles are out, the official transfer of ownership process (using the title deed) as described above will still have to take place as per standard practice.

Master Title Individual / Strata Title
Developer is the rightful owner. Uses DoA lodged at high court to assign rights of a property over to a purchaser. Purchaser is rightful owner. Uses MoT to change the owners name on the property title deed at the Land Office.
A chain of Sale & Purchase Agreements (SPA) and DoA leading all the way back to the original sale must be used to prove latest ownership. Name on property title deed is sufficient to prove latest ownership.
Most banks will not finance a property if it is still on Master Title 10 years after completion. No issue with financing.

Malay Reserve Land
There are certain properties which have “Malay Reserve Land” status (Note: This is not the same as “Bumi Lot” properties). These properties cannot be transferred to a non-Malay under any circumstances. And just as in Leasehold properties, state consent has to be given for transfer.

Conclusion
If you are intending to purchase or refinance a property, it is important to know the kinds of attributes your property has. Once you have ascertained the property you want to purchase, use this as a guide and our home loan comparison tool together to understand the kind of housing loan or commercial property loan you are able to obtain.

>> Loanstreet.com.my is a website enabling one to compare and apply for loans online.

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Feng Shui Checklist

https://blog.propertyguru.com.my/8317/feng-shui-checklist.html

fengshui

There are many factors to consider when assessing the feng shui of the land and the house occupying it. According to Feng Shui master, Master Soon, in feng shui theory, power is derived from the mountains or the rivers and lakes, whichever is “dominant” in a country/region. Malaysia draws its feng shui power from the dominant mountains, the Titiwangsa Range, which runs from Thailand in the north, all the way to the deep south, with KL in the middle. With the Chinese New Year fast approaching on 19 February, heralding the official start of the year of the wooden sheep or goat, PropertyGuru has compiled several good feng shui tips in buying or renovating your home.

LOCATION

First, you must look at the land’s Chi quality itself. Look for land that appears vibrant. It should be full of life and lush with vegetation. These are signs of high Chi. In contrast, land devoid of plants has low or inhibited Chi.

Specifically, avoid buying houses located near inauspicious places like prisons, railroad, hospitals, cemeteries, fire stations, places of worship and police departments. Don’t buy a house sandwiched between two large buildings as they block energy.

FACING DIRECTION

To determine if a house’s facing direction is auspicious, check the kua number of the bread winner in the family. If his kua number is any of these (1,3,4 and 9), the family will benefit from a house facing East, North, South, South East. If the kua number is any of these (2, 6,7 and 8) , the family will benefit from a house facing North west, South West, West, North east.

HOUSE AND PLOT SHAPE

Preferably, look for a house with a regular shape, a square or rectangle. Avoid irregularly-shaped houses, especially those that are shaped like a diamond or triangle as many mishaps can occur in these houses. This also applies to land parcels, which should be square or rectangular. Triangular-shaped plots have the worst feng shui.

STRONG FRONT DOOR

The main door is considered as the ‘Mouth of Chi’. This is where the house receives its energy. Basically, the house should have an entryway designed to welcome, strengthen and channel the incoming feng shui energy throughout the entire property. Additionally, avoid a property where you can see the kitchen and bathroom from the main door. Also, the main door should not align with the back door, nor face a staircase.

FLOOR PLAN

The toilets and kitchens should never be positioned in the two most vital areas of the house, Northwest or Southwest. Never place the kitchen in the Northwest as it is considered bad luck as the heaven’s energy enters the home from Northwest.

Besides that, don’t build bathrooms above any bedroom, the front door, dining room, living room or kitchen.

Top 5 Property Hotspots in Klang Valley

Location, location, location! This has always been the most important motto for property investment experts when acquiring real estate.

Although there are other considerations which are just as vital, selecting a property within a prime or strategic locale has been the golden rule of connoisseurs. The wrong choice could have a detrimental impact on the property’s potential capital appreciation as well as ability to attract tenants capable of paying high rents.

As such, PropertyGuru Malaysia brings you the top five locations in Klang Valley where buyers have searched the most. This is in line with our goal to keep you better informed of what’s sizzling hot in the local real estate scene!

Top 5 Districts in Klang Valley for Home Buyers
1. Cheras
2. Puchong
3. Klang
4. Shah Alam
5. Petaling Jaya

Notably, Cheras emerged as the most searched location in Klang Valley for property buyers. That’s not unsurprising, given the area’s potential for further capital appreciation in light of the upcoming Sungai Buloh-Kajang MRT Line.

Living there also enables people to travel easily to other parts of Klang Valley, big thanks to a number of LRT stations as well as the Silk Highway and Cheras-Kajang Highway.

Aside from being home to Malaysia’s longest pasar malam (night market), the suburb is also dotted by several shopping spots, including Carrefour Cheras, Jaya Jusco Taman Maluri, Connaught Market Centre and Aeon Jusco Mahkota Cheras.

Top 5 Districts in Klang Valley for Renters
1. Petaling Jaya
2. Cheras
3. KL City
4. Puchong
5. Ampang

Meanwhile, Petaling Jaya is the most popular rental market in Klang Valley. According to well-known property expert Ho Chin Soon, he personally believes that this city is the country’s top property hotspot, due to its central location within Klang Valley itself.

The area is well-developed with infrastructures and transportation facilities. So much so that there are hardly any room left for new residential projects, resulting in developers building their new projects outside of Petaling Jaya, and second tier areas of Klang Valley and beyond.

Furthermore, Petaling Jaya enjoys three access points to the North-South Expressway: via Damansara, Subang and Kota Damansara. The city is home to many major shopping malls, such asThe Curve, One Utama, Paradigm Mall, Empire Damansara, Sunway Pyramid and Tropicana City Mall.

As an additional bonus, we have researched the top states and property types in Malaysia too:

Top states to invest
1. Selangor
2. Johor
3. Penang

Top property types
1. Terrace/Link Houses
2. Apartment/Condo/Service Residence
3. Semi-detached Houses

Malaysia’s residential property sector enters cooling phase

source:http://www.starproperty.my/index.php/articles/property-news/malaysias-residential-property-sector-enters-cooling-phase/

“The macro-prudential measures implemented by Bank Negara to cool down the property market since 2010 look likely to have played a role here,” Mier said.

PETALING JAYA: The residential property segment, a sub-sector of the overall property market, appears to have entered “a cooling phase” in the first two quarters with sales expected to stay “moderate” for the coming third quarter, according to the Malaysian Institute of Economic Research (Mier).

“The macro-prudential measures implemented by Bank Negara to cool down the property market since 2010 look likely to have played a role here,” Mier said.

Mier based its conclusion after doing a residential property survey designed to be an indicator of economic activity in the property sector.

Its Residential Property Index fell for the second quarter to 109.9 points, slipping 1.3 points from the first quarter, and 28.3 points from a year ago.

The survey also showed that total unsold new residential properties have accumulated faster than sales in recent months.

More than a quarter of house builders reported bigger stocks in hand, which is at a three-year high.

The Mier report said that given the built-up in total unsold new units, those surveyed have decided to keep creeping prices at bay by maintaining them at current levels.

But in the months ahead, prices “are likely to escalate again” more than half of those surveyed said while the remainder said they will “neither raise nor slash theirs (their prices) for now.”

Fewer of them increased prices in the second quarter compared with the first and some even offered price cuts, the survey found.

Moving forward, about half of those surveyed expect sales for the current third quarter to remain the same while more than a third of those surveyed foresee higher sales as “home buyers bought ahead of the Goods and Services Tax” which will come into effect next April.

Property prices are envisaged to rise due to higher input costs after that.

Double-storey houses continued to be the most popular while none of those surveyed seem to have sold any bungalows during this same period.

The survey concluded that affordability issues may continue to haunt the market if property prices outpaced income growth and interest rates edged up.

“Housing demand may eventually lose ground,” Mier said.

How GST Will Impact Home Prices & The Property Market

source:http://www.starproperty.my/index.php/articles/investment/how-gst-will-impact-home-prices-the-property-market/

BY LOANSTREET INSIGHTS
How GST Will Impact Home Prices & The Property Market

 

WITH the coming implementation of Goods & Service Tax (GST) in April 2015, many Malaysians are concerned with what this bodes for prices in general. It is inevitable that home prices will also be affected. In this article, we explain how home and property prices will be affected moving forward.

To properly appreciate how GST will affect home prices, it is necessary to first understand how GST works. (Click here for a detailed but simple-to-understand explanation of how GST in Malaysia works).

Aside from GST, one must also have an understanding of the Sales Tax, which is the existing tax scheme affecting the property sector. GST will supplant the Sales Tax come April 2015.

Tax Scheme on Residential Property – The Similarities

In comparing both tax schemes, we have to first identify their similarities.

One similarity between GST and the existing Sales Tax scheme is that no taxes are charged or will be charged to the consumer on the purchase of a home / residential property. For GST, residential properties fall under the “Exempt Rated” basket of goods. (But do take note that GST will be charged to the consumer for commercial property purchases as commercial properties are “Standard Rated”).

However, during the creation of the final product (also known as the input stage in tax parlance), under both tax schemes, developers would incur taxes during procurement of their inputs and materials. And this is where the differences start to become apparent between both tax schemes. The tax rate for inputs and materials vary between GST and Sales Tax.

Sales Tax VS GST for Residential Properties – The Differences

Based on the Sales Tax Act of 1972, basic building materials such as bricks, cement and floor tiles fall inside First Schedule Goods, in which all the goods in this category will not be subjected to sales tax. Meanwhile, other building materials fall inside Second Schedule Goods, in which all the goods in this category will only be charged sales tax of 5%.

Under the new GST implementation, all building materials and services (E.g. Contractors, engineers) will be subject to GST with a standard rate of 6%. This will invariably raise the production cost for developers.

If you understand how GST works, you will notice that in most cases, the additional tax cost is simply passed on to the final consumer (Standard-Rated goods), or is claimed back from the government (Zero-Rated goods). But in this case (Exempt-Rated), the additional tax cost is borne by the party before the final consumer – The developer.

The developer does not have a next “victim” in the supply chain.

This seems like good news for home buyers as they do not have to pay GST when purchasing a home. However, one should not be too happy about this. It is no stretch of the imagination to think that developers would try to build in the additional tax costs into the final sale price implicitly.

Before & After GST – A Comparison

The tables below show a comparison between the cost of a new property before and after GST. Certain taxes and costs leading up to the sale to the final consumer have been simplified for this purpose.

Also, an assumption is made that developers are able to transfer 100% of all incurred tax costs over to the consumer via the sale price.

How GST Will Impact Home Prices & The Property Market How GST Will Impact Home Prices & The Property Market

The example above shows a price increase of 3.41% for new residential properties post-GST implementation. But there is a plus point to this.

Overall, new residential properties may register a lower overall increase in tax burden compared to Commercial Properties that are Standard-Rated. This is because there still is the chance that developers may only transfer some and not all of their tax cost increases into the final retail price.

The downside to this is that where pricing for new commercial properties will be cleaner (Sales Price + GST), pricing for new residential homes would look inflated. This, in turn, will undoubtedly have a knock on effect on prices in the secondary house market.

Conclusion

As a home buyer, it pays to know what the implementation of GST might bode for home prices moving forward. If you skipped the entire article, here are all the key insights in a nutshell:

1)      With GST, there should be a once-off increase in property prices across the board

2)      While developers may not bill home buyers for GST, they could transfer the costs implicitly via the sale price

3)      The overall price increase for new residential properties could be marginally lower than that for new commercial properties

4)      The secondary home market should see a knock on effect in prices

Armed with this knowledge, you can make a better decision on when to purchase your home.

KL-S’pore high speed rail will create slew of new industries

source :http://www.thestar.com.my/Business/Business-News/2014/09/01/Impact-of-high-speed-rail-on-economy/

Chen:’Perception and reality do not match, but perception is playing an important role.’ (File pic)

Chen:’Perception and reality do not match, but perception is playing an important role.’ (File pic)

KUALA LUMPUR: The different sectors of the economy must leverage on the high speed rail (HSR) project currently being planned between Kuala Lumpur and Singapore, said MKH Bhd managing director Tan Sri Eddy Chen.

He said long-term planning was crucial and highlighted the Japanese example of how its shinkansen (high speed rail) opened up new integrated townships along its route.

Speaking at the “Invest and succeed in mixed use development” seminar organised by Malaysia Property Inc last Thursday, Chen, who is also Malaysia Shopping Malls Association president, said the connectivity would help to create a slew of new industries.

Sungai Buloh-Kajang Mass Rapid Transport (MRT) has changed the real estate scene in Kajang, the HSR is expected to be an even greater game changer, he said.

Land prices around Kajang has increased from RM7-RM8 per sq ft to RM17 per sq ft as a result of the MRT.

Chen said: “It does not seem to matter to them that the MRT is scheduled for completion only in 2017. The MRT has helped to close the gap between the city and Kajang. We are seeing Kajang apartments now selling between RM400 and RM500 per sq ft. These are prices at Mont’Kiara and Seri Hartamas.

“Perception and reality do not match, but perception is playing an important role,” he said.

He said every town that the HSR would be passing through has the potential to be turned into an integrated city.

Chen advocated working towards marketing Seremban as an enterprise or tech valley or regional headquarters for biotechnology because it is near research and training centres. Malacca’s tourism potential can be strengthened as visitors need not drive once the HSR is operational.

He identified car rental and clipper buses services that offer several hop on-hop off stops.

Visitors may continue their journey to Singapore after that.

The HSR would make such day trips spontaneous. There would be a need for malls, new hotels and other forms of rental arrangements and location logistics services, he said.

On whether the HSR would benefit Singapore or Malaysia more, Chen said Singapore would benefit from any development around it.

Another speaker, CB Richard Ellis executive chairman Chris Boyd characterised the Klang Valley’s office market as “an abundance of choice at low prices”, resulting in a flight to quality.

While the office glut has been brought up time and again, a new feature in the sub-segment is the five million sq ft of small offices, home offices (SoHos) entering the market. He said Greater Kuala Lumpur would see office space totalling 100 million sq ft this year with total supply at 95.5 million sq ft as at the second quarter.

This figure excludes office blocks with less than 100,000 sq ft and those less than 10 storeys high. It also excludes Putrajaya and Cyberjaya. A total of 23 million sq ft will be entering the market by 2017, of which a quarter of them will be in the city centre. National Property Information Centre latest figures have it at more than 111 million sq ft.

Boyd said the SoHo market came in different names SoFos (small offices, flexible offices) and SoVos (small offices, versatile offices) and can be used as either offices or residentials.

“They will compete with the upper floors of shop houses which are becoming dinosaurs,” Boyd said.

In the retail scene, Boyd said Malaysia has 50 million sq ft of retail space, which was ahead of Singapore and 18 malls with 10 million sq ft entering the market.

“Second and third generation malls are struggling,” he said, adding that Malaysia had three of the largest malls in the world and 70% of the world’s top brands.

“Our attraction is the number and the variety,” he said, adding that retailers find it “easier to come here” as they need only to negotiate with five major landlords compared with “hundreds” if they aspire to enter London’s High Street market.

年尾建幹線 經靈市和莎 隆→巴生乘快捷巴士

http://www.chinapress.com.my/node/539061

報導:郭貞黎
攝影:張文輝
(吉隆坡29日訊)全長32公里,快捷巴士系統(BRT)吉隆坡中環至巴生市區幹線于年尾動工,以加強莎阿南、巴生一帶公共交通系統,紓解聯邦大道的交通阻塞問題。

除了吉隆坡中環至巴生市區的快捷巴士系統,從梳邦區的斯迪亞再也電動火車站銜接往位于格華芝班路的USJ第6區的快捷巴士系統─雙威幹線(Bus Rapid Transit-Sunway Line),正如火如荼施工中。

快捷巴士系統(BRT)雙威幹線,是首個快捷巴士系統,由國家基建公司與雙威集團聯合斥資5億4900萬令吉打造,穿梭雙威市中心與USJ地區,預計6月投入使用,惠及當地近50萬居民。

負責快捷巴士系統技術委員會的雪州高級行政議員拿督鄧章欽接受《中國報》記者專訪時說,快捷巴士系統的吉隆坡往巴生市區幹線年尾動工,估計需耗時兩年。

他說,該幹線從吉隆坡中環開始,沿著聯邦大道,經過八打靈再也、莎阿南等區,最后進入巴生市區。

他指出,當局已鑒定路線圖和車站地點,在巴生市區一帶,是擁有足夠的空間開設快捷巴士幹線。

他指出,該系統位于雪州路線中,將建11個車站,分別是八打靈再也(2個)、梳邦再也(1個)、莎阿南(3個)及巴生(5個)。

他說,當快捷巴士進入巴生市區時,快捷巴士會在巴生市區中繞一圈。

至于在莎阿南範圍時,除了其中兩個車站,在通往巴生方向的路線,會有一條分線通往莎阿南室內體育館,其余一個車站將位于該體育館附近。

他說,吉隆坡中環至巴生市區幹線將扮演銜接其他公共交通的角色,包括電動火車站、輕快鐵等,屆時將可疏緩聯邦大道交通擁擠情況。

鄧章欽:僅縮小車道寬度
不佔用聯邦大道

鄧章欽說,吉隆坡中環巴生幹線將使用聯邦大道的中間部分的空間,但不會佔用聯邦大道車道。

他說,目前,聯邦大道車道相當寬,來回方向各3條車道。

他指出,一旦快捷巴士系統佔用中間的空間,聯邦大道仍保持現有來回各3條車道,只是車道寬度將縮小。

“吉隆坡中環巴生幹線的快捷巴士,是在路面上行駛,是屬于巴生專行道,一般車輛是不能駛入。”

鄧章欽說,吉隆坡中環巴生的快捷巴士計劃,是由中央政府出資,雪州政府和地方政府將負責征用土地和路線協調。

他說,雪州政府歡迎快捷巴士計劃,雪州政府和地方政府將全面進行調工作。

未來擬定12個幹線

陸路公共交通委員會(SPAD)將快捷巴士系統列入綜合交通系統,未來將在巴生谷一帶,擬定12個快捷巴士系統幹線。

根據《中國報》瞭解,除了陸路公共交通委員會,部分地方政府包括梳邦再也市議會,也把快捷巴士系統列入交通發展藍圖之中。

首個階段快速巴士計劃,是從斯迪亞再也電動火車站開始,直抵位于格華芝班路前的USJ第6區輕快鐵站。

從斯迪亞再也電動火車站往USJ6的輕快鐵站的快捷士系統幹線,是被視區域性幹線,主要是提供較小區域性的公共交通綜合系統。

緊接的是從吉隆坡中環往巴生市區的幹線,主要是沿著聯邦大道而行。

在計劃中,快捷巴士與一般普通巴士並不一樣,除了在巴士專行道行駛之外,所停泊的車站也比一般巴士候車亭還要少。

吳木炎:帶動莎阿南發展

城市土地運用及交通規劃專家吳木炎說,一旦快捷巴士系統在聯邦大道進行,除了能提供快捷巴士川行服務,也會帶動聯邦大道兩旁的發展。

他說,在雪州境內,尤其是從八打靈再也區到梳邦再也區,在聯邦大道兩旁的發展已飽和。

他指出,可是從梳邦再也到莎阿南至巴生之間,聯邦大道兩旁還有相當多空間,尤其是莎阿南的發展與聯邦大道有一段距離。

他說,一旦快捷巴士吉隆坡中環巴生幹線啟用,將能改變梳邦至巴生之間的聯邦大道兩旁的發展。

“快捷巴士系統將會把發展重新拉回聯邦大道兩旁,也將改變聯邦大道兩旁未來的發展趨勢。”