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Wednesday, July 29, 2009
Tuesday, July 21, 2009
Gross Rental Yields - Malaysia Compared to Continent
Malaysia: Gross rental yields (%).
The gross annual rental income, expressed as a percentage of property purchase price. This is what a landlord can expect as return on his investment before taxes, maintenance fees and other costs.
The properties are 120-sq. m. apartments located in premier city centres. (See our list of premier cities)
The gross rental returns (or rental yields) figures published by the Global Property Guide are based on the Global Property Guides own proprietary in-house research.
Only resale apartments and houses are researched. Yields for newly-built properties are not included.
Buyers should expect the rental yields of new properties to be lower than the gross rental yields published by the Global Property Guide.
Properties will be in excellent condition, with good facilities, and have been refurbished or redecorated within the last five years.
When was this data collected? Click on individual countries to see the data collection date.
Source: Global Property Guide Research
Malaysia releases a quarterly house price index. Data are available from the Bank Negara Malaysia (BNM). The Real Estate and Housing Developers Association (REHDA) is the best source of papers, press clippings and stories about the housing market. The National Property Information Center (NAPIC) publishes Property Market Status Report which focuses on property sales.
BNM has useful monetary, financial and economics data.
Friday, July 17, 2009
More REITs seen with easing of guidelines
Extracted from the Star – StarBiz, Monday 6th July 2009.
By Angie Ng
Malaysia will now be able to look forward to more property funds organization and real estate investment trusts (REITs) implementing into the market for the next few months following the liberalization of Foreign Investment Committee (FIC) guidelines for foreign property investors and the aborting of the bumiputra equity condition in public-listed companies.
According to Axis REIT Managers Bhs Chief executive officer-cum-executive director Steward LaBrooy, the removal of the 30% bumiputra condition on listed companies, which hopefully soon be applied in REIT management companies, this would then encourage more industry investors to be involve.
LaBrooy added that the bumiputra equity condition was a holdup to existing REIT managers in forming alliances with strong overseas operators through sales of equity without the major reduction of shareholders’ interest. By this removal of 30% bumiputra condition, it will attract more players through the new alliances that will increase the capital inflows as a result.
He said the deregulation of the FIC would provide the catalyst or renewed interest in the foreign investment in Malaysia’s real estate. Prior to this, any foreign buyer of Malaysian real estate had to go through complicated structures to own and list their Malaysian assets. Moreover, with Malaysia REITs market becoming more well established and the Securities Commission introduction form a business-friendly guidelines for both conventional and Islamic REITs foreign investors will have good reasons to re-enter the market. The move will promote many other private funds to re-consider the market.
“The lifting of the bumiputra equity rule in stocks as well as allowing 100% foreign ownership in fund managers seeking to operate in Malaysia its positive moves that would place Malaysia in a favorable position to attract foreign investors,” Labrooy added. Later he added that as it was now much easier for foreign real estate ownership by wither individuals or property funds, investment trade properties should be able to perform well.
“A lot of new ventures are the commercial or residential, should be able to take off as there will be a need for more quality and REIT-able property projects going forward. At the end of the day, these investors will need an exit plan and REIT will be a good option for them,” he said.
To provide a boost to the market, he said there was a need to promote greater retail interest in REIT investment. Prior to this, there will be road shows held in various states starting with Penang over the weekend to raise a necessity awareness of REIT investment among the local investment community. In addition to investing in REITs, the investors will be given a chance to broaden up their interest in a wide portfolio of property, while REITs provide regular dividend payout that draws a withholding tax of 10% for individual unit holders. Annual yields paid out by the various REITs in the country so far are between 8% and 13%.
Labrooy said as the global financial crisis had yet to bottom out and foreign players would not be coming in immediately, the more liberalized environment was a good groundwork to attract them when the economy turned for the better.
Overseas property companies and funds that are looking for good value investment in the region may be lured to invest in Malaysia for capital appreciation. CapitaLand, which is eyeing a bigger stake in Malaysia’s real estate market, is one of the potential big players. CapitaLand’s REIT, with an initial asset size of RM2bil, was targeted to be the country’s first foreign-sponsored REIT on Burse. The company had intended to inject its three shopping malls in Malaysia – Gurney Plaza in Penang, the Mines Shopping Fair in Seri Kembangan, Selangor, and Sungei Wang Plaza in Kuala Lumpur - into the REIT.
Through its US$30.5mil real estate private equity fund, Mezzo Capital, CapitaLand has invested in a number of high-end residential projects in the country. CapitaLand also owns a 30% stake in the 50-storey Menara Citibank in Kuala Lumpur’s Golden Triangle.
Property transactions no longer need FIC approval
by Bernama: 30th June, 2009
KUALA LUMPUR, Tue: ALL property transactions, including those between foreigners and non-Bumiputeras, will no longer require Foreign Investment Committee (FIC) approval, Prime Minister Datuk Seri Najib Tun Razak announced today. The FIC approval will only be required for property transactions which involve a dilution of Bumiputera or government interest for properties valued at RM20 million and above, he said at the Invest Malaysia 2009 conference here.
For example, a dilution of Bumiputera interest refers specifically to the instance where a property currently majority held by Bumiputeras and as a result of a transaction ceases to be owned by a majority Bumiputera entity.
Transactions no longer requiring the FIC approval fall into two categories, with the first relating to any transactions involving sale by non-Bumiputera or foreign majority interest.
Secondly, any transactions involving purchase by Bumiputera-controlled entity and this will include a Bumiputera-owned company acquiring property from another Bumiputera-owned company.
This deregulation is expected to facilitate greater property transactions and investments, including acquisitions of commercial properties by foreign interest.
"The government believes that the easing of the regulation will significantly enhance Malaysia's value proposition as a place to do business and invest," said Najib, who is also the Finance Minister.
He said with the comprehensive easing of FIC guidelines at the firm level, the Economic Planning Unit will refocus its efforts towards coordinating and monitoring distributional policies at a macro level.
In this respect, the government remained committed towards enhancing economic participation by Bumiputeras, he added. - BERNAMA
Thursday, July 16, 2009
Penang, towards the future
Economists and the Malaysian Government alike foresee a growth in property development with the proposed Second Bridge Link, monorail, and Penang Outer Ring Road projects, to be implemented soon.
Many foreigners, especially Japanese, Australian and British nationals, have invested in second homes on Penang island. In a recent survey, Penang was voted one of the best Asian cities to live in, by Asiaweek. It ranked 6th in 1998 and 9th in 2000.
In 2007, Penang ranked as the 10th most liveable city in Asia according to a survey involving 255 cities in Asia by Employment Conditions Abroad Limited (ECA International). Some of the barometers by which these cities were gauged include weather, air quality, infrastructure, health services, housing, security and politics. Property prices in the south of Penang have increased by approximately 20%, compared to only a year ago.
Generally speaking, Penang properties generate good investment value because of their location, concept, design and quality.
Investing in Penang Property
Investing in property is very rewarding especially when done in Penang, as property prices tend to appreciate over a relatively short period of time. Prime property locations in Penang include beachfront property in Batu Ferringhi, Tanjung Bungah and Tanjung Tokong, which are all located on the Northeast of the island. Along Batu Ferringhi are numerous large hotels, restaurants, transport rental services and souvenir stores. Adjacent vicinities include Teluk Bahang and Tanjung Bungah.
Tanjung Bungah is another popular place for beachfront property. Many hotels in Tanjung Bungah offer rates to suit budget travellers. Indeed, the development of mid-class to high-end apartments and condominiums are rampant in Tanjung Bungah. It is an ideal residential spot for foreigners due to its proximity to the Dalat School and The Uplands International School of Penang. The Penang Branch Campus of Tunku Abdul Rahman College (TARC) is also situated here.
Just minutes' drive away is Tanjung Tokong, where the sea-fronting, exclusive Seri Tanjung Pinang villas developed by E & O Property Development Bhd have just been launched. The group has launched about 500 units of landed residential properties, priced from about RM800,000 onwards. It is now getting ready to launch the new bungalows for the Seri Tanjung Pinang project at the end of 2008, priced from RM2.8 million.
Pulau Tikus - located in Georgetown, central Penang - is also one of the upcoming prime property locations on the island. One of the luxury condominiums is the Silverton situated along Gurney Drive. This freehold property is priced from RM1 million. Lying towards the Southeast of the island is Batu Maung. Around 20 years ago, Batu Maung was only a small fishing village accessible only from Bayan Lepas.
However, in the past few years, Batu Maung has been experiencing rapid development due to its proximity to the Bayan Lepas Free Trade Zone. In 1994, a new four-lane highway - known as the coastal highway - was opened, linking Batu Maung to Gelugor. This shortened the journey from Batu Maung to Penang Bridge to around 15 minutes, from almost an hour previously.
In August 2006, Malaysian Government has announced that Penang's Second Bridge will be built from Batu Kawan, on the mainland, to Batu Maung, on the island. This infrastructure is expected to lend impetus for more development of property in that area. In fact, local developer Mah Sing’s RM1.28 billion Southbay Penang project in Batu Maung registered some 1,500 interested buyers for its first phase - scheduled for launching in early 2008.
Excerpt:
"Investing in property is very rewarding especially when done in Penang, as property prices tend to appreciate over a relatively short period of time."
An economic outlook of Penang
The economy of Penang is thriving with its growth in the electronics, semi-conductor and high-tech industries, in particular.
In fact, Penang has the third largest economy among the Malaysian states, after Selangor and Johor. In 2000, manufacturing was the most important component of the Penang economy, contributing 45.9% of the State's Gross Domestic Product (GDP). High-tech electronics plants such as Dell, Intel, AMD, Altera, Motorola, Agilent, Hitachi, Osram, Plexus, Bosch and Seagate are all located within the Bayan Lepas Free Industrial Zone.
Penang was declared a Multimedia Super Corridor Cyber City - the first outside of Cyberjaya - in January 2005, with the goal of making the state a high-tech industrial park. Tourism, finance and shipping are among the other important sectors of Penang's economy.
The National Physical Plan of Malaysia envisages a Conurbation of Georgetown, which includes Georgetown and surrounding areas. The Conurbation of Georgetown is designated a Regional Growth Conurbation. The greater metropolitan area of Penang consists of highly urbanized Penang Island, Province Wellesley (Seberang Prai), Sungai Petani, Kulim and the surrounding areas. Under the 9th Malaysian Plan, this entire area is referred to as the Northern Corridor Economic Region (NCER).
Tuesday, July 14, 2009
Come visit Penang...
Penang also known as “The Pearl of the Orient” lies of the north-western coast of Peninsular Malaysia. The state comprises the island of Penang covering an area of about 285 square kilometer and a narrow strip of approximately 760square kilometer on the mainland known as Seberang Perai (Province Wellesley) separated by a channel 3km wide at the closest point. They are linked by the Penang Bridge and a 24- hour ferry service. Its population of more than 1 million represents a happy mix of the major races found in Malaysia with Malays making up 32%, the Chinese 59% and Indians 7%.
Georgetown is at the northeastern tip of the island is the seat of administration and also the commercial hub of the state. This bustling metropolitan city combines the best of east and west as seen in its fascinating collection of fine old buildings, each bearing the stamp of different foreign influences in its colourful history. Much of its charm also lies in its famous golden beaches and calm warm seas. Penang today is a resort island in full bloom – an idyllic playground for worshippers of the sun and the sea. Its multi-racial population contributes to a wealth of cultural attractions and festivals for visitors to bring home memories of happy times in Penang.
Monday, July 13, 2009
Contemporary Property just for you!
*click on the image to enlarge
Located at Jalan Bunga Cempak Putih
Welcome to Propertizer!
Dear readers,
Welcome to Propertizer, a blog that craves for property updates.
The idea is to update you on the latest and hottest properties around Penang. It not only features hot properties but also the most dated news bulletin on the present economic property status.
Please call us for enquiries on this property to make an arrangement for viewing appointments.
Alternatively, you can reach us through E-mail. We will respond to your query as soon as possible. We hope to be of service and value to you. Thank you.
Warmest regards,
Carey Real Estate Penang
Contact us:
Michael @ 016 - 420 7727
Email: michael@careypenang.com
Ryan @ 016 - 427 8766
Email: turner.ryan.82@gmail.com
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