We would like to wish everyone a very
MERRY CHRISTMAS and Happy Holidays!
Cheers!
Pptizer team
(Mike, Ryan, Luffy & Daniel)
Monday, December 26, 2011
MERRY CHRISTMAS
Dear Pptizers,
We would like to wish everyone a very
MERRY CHRISTMAS and Happy Holidays!
Cheers!
Pptizer team
(Mike, Ryan, Luffy & Daniel)
We would like to wish everyone a very
MERRY CHRISTMAS and Happy Holidays!
Cheers!
Pptizer team
(Mike, Ryan, Luffy & Daniel)
Friday, December 23, 2011
Wednesday, December 7, 2011
No more land reclamation in Gurney Drive
The state government will not allow any new land reclamation along
Gurney Drive as part of its deal with developers to construct
infrastructure projects.
Chief Minister Lim Guan Eng said any land swap would only involve the existing land reclamation rights granted to Eastern & Oriental Bhd by the previous administration.
He said people should not “jump up and down” as the state was bound by the deal struck before Pakatan came into power.
“I told the reporters in Kuala Lumpur that 299ha of reclaimed land in Sri Tanjung Pinang would be involved in the infrastructure projects.
“Some of them have never been to Penang and they didn’t know where that was so I said it’s near Gurney Drive.
“Now I’m a victim of false information because they reported that the reclaimed land would involve Gurney Drive — I never said that,” he told a press conference yesterday.
He said no monetary payment or funding would be given by the state for the construction of three by-pass highways and a sea tunnel linking the island to the mainland.
“Costs incurred may be recovered through land swap, toll or any other form. The other three projects would involve land swapping. I’m trying to get as much as possible for Penang,” he said. - By Christina Chin (The Star)
Chief Minister Lim Guan Eng said any land swap would only involve the existing land reclamation rights granted to Eastern & Oriental Bhd by the previous administration.
He said people should not “jump up and down” as the state was bound by the deal struck before Pakatan came into power.
“I told the reporters in Kuala Lumpur that 299ha of reclaimed land in Sri Tanjung Pinang would be involved in the infrastructure projects.
“Some of them have never been to Penang and they didn’t know where that was so I said it’s near Gurney Drive.
“Now I’m a victim of false information because they reported that the reclaimed land would involve Gurney Drive — I never said that,” he told a press conference yesterday.
He said no monetary payment or funding would be given by the state for the construction of three by-pass highways and a sea tunnel linking the island to the mainland.
“Costs incurred may be recovered through land swap, toll or any other form. The other three projects would involve land swapping. I’m trying to get as much as possible for Penang,” he said. - By Christina Chin (The Star)
Higher deposit to ensure developers are committed
This is really good news for property buyers!
The increased deposit to obtain a housing development licence from RM200,000 to 3% of the project’s estimated cost is to ensure developers are committed to building homes.
Housing and Local Government Minister Datuk Seri Chor Chee Heung said the higher deposit would see only those with sufficient financial resources take up projects.
“We want only those with solid financial ability to build houses unlike now when all one needs is RM200,000 as deposit, a company and a piece of land and you are a developer already.
“The 3% deposit is high but should not be a problem to anyone who is serious in this business,” he said after officiating at the ministry’s Innovation Day here.
The ministry tabled in Parliament on Wednesday for first reading a Bill amending several clauses of the Housing Development (Control and Licensing) Act to further tighten the law, including on the higher deposit.
Other amendments include a fine of up to RM500,000, jail of up to three years or both for developers who fail to complete their projects.
The Bill also states that it is an offence if a developer “abandons or causes to abandon a housing development” and the developer is deemed to have abandoned a project if he refuses to complete it, delays, suspends or ceases work continuously for six months or beyond a period stipulated under the Sales and Purchase Agreement.
Chor said the stiffer penalties were to ensure that developers did not simply abandon projects. - By The Star
The increased deposit to obtain a housing development licence from RM200,000 to 3% of the project’s estimated cost is to ensure developers are committed to building homes.
Housing and Local Government Minister Datuk Seri Chor Chee Heung said the higher deposit would see only those with sufficient financial resources take up projects.
“We want only those with solid financial ability to build houses unlike now when all one needs is RM200,000 as deposit, a company and a piece of land and you are a developer already.
“The 3% deposit is high but should not be a problem to anyone who is serious in this business,” he said after officiating at the ministry’s Innovation Day here.
The ministry tabled in Parliament on Wednesday for first reading a Bill amending several clauses of the Housing Development (Control and Licensing) Act to further tighten the law, including on the higher deposit.
Other amendments include a fine of up to RM500,000, jail of up to three years or both for developers who fail to complete their projects.
The Bill also states that it is an offence if a developer “abandons or causes to abandon a housing development” and the developer is deemed to have abandoned a project if he refuses to complete it, delays, suspends or ceases work continuously for six months or beyond a period stipulated under the Sales and Purchase Agreement.
Chor said the stiffer penalties were to ensure that developers did not simply abandon projects. - By The Star
Housing supply and demand - are we nearing equilibrium?
Is there any equilibrium point in housing market, considering the many factors influencing demand and supply?
The main determinants of the demand for housing are demographic. Population size and population growth are the core demographic variables. However, family size, the age composition of the family, the number of children, net migration, non-family household formation, the number of double family households, death rates, divorce rates, and marriages are other demographic variables that would influence demand for housing. Other factors such as household income, price of housing, cost, availability of credit, consumer preferences, investor preferences, price of substitutes and price of complements all play a role in determining demand for housing.
Income is an important determinant of demand as shown by a study conducted by De Leeuw in 1971 that showed positive income elasticity of demand in North America ranging from 0.5 to 0.9, meaning the market demand for housing grew as real income rose. The price of housing is also an important variable influencing demand for housing, where in terms of elasticity just like any normal goods it is negative increase in price will result in decrease in demand.
As for supply, the quantity of incoming supply is typically influenced by cost, price of existing stock of houses, and the technology used in the construction, where material costs tend to contribute the largest share of the construction cost, about 30% to 40%. In the short run, supply tends to be very price inelastic increase in cost will have less effect on supply. However, over a longer period, it tends to be very price elastic increase in cost will lower supply.
A study conducted by Fallis in 1985 showed price elasticity of supply was estimated at 8.2, indicating increased in cost would lower supply significantly. The degree of elasticity depends on the elasticity of substitution and supply restrictions. For example, the use of capital intensive technology has been employed to reduce the rising labour cost, thus having less impact on the supply of housing.
As at first half of 2011, Malaysia had 4,466,062 units of housing, an increase of 1.7% from the total of supply in the first half of 2010. About 24,709 units were completed in the first half of 2011, a lower number compared to 50,611 units completed in the first half of 2010. Kuala Lumpur and Selangor accounted for 6,567 units or 27% of the total new stock. Kuala Lumpur and Selangor had 414,436 and 1,285,192 homes, reflecting an increase of 2.0% and 1.7% respectively from the total as of first half of 2010.
Other states which showed significant number of units completed are Sarawak (2,612), Penang (2,507) and Perak (2,184). The incoming supply in the country was recorded at 560,636 units, where Selangor is the largest contributor (134,143 or 24% of the total) followed by Johor (76,429 or 14%) and Negri Sembilan (65,227). Kuala Lumpur has 39,656 units coming on stream.
In terms of transactions recorded as of first half of 2011 for the country, there were 133,984 transactions in the residential category, out of which the largest transacted numbers were priced in the range of RM100,000 to RM150,000, which accounted for 22,857 units, followed by units priced between RM250,000 and RM500,000, which accounted for 21,559 units.
Selangor recorded the highest number of transactions at 38,424 units, followed by Johor (15,015 units), Penang (13,832 units), and Kuala Lumpur (11,522 units). The most popular units transacted in Selangor, Kuala Lumpur, and Penang were for units priced between RM250,000 and RM500,000, while in Johor, the highest transactions recorded were for units priced between RM100,000 and RM150,000.
This brief analysis gives an indication that the total number of units coming into the market needs to be in line not only with the level of affordability of potential buyers in the area the projects are to be launched but also the demographics of Malaysian population.
As of July 2010, total population was estimated to be 28.25 million and the population is expected to grow at a rate of 2.4% per annum, where about 65% of the population is urban population. Today, less than 4% of Malaysians live in poverty and it is estimated that about 2.0% of the total urban population in Malaysia lives below the poverty line, earning monthly household income of equal or less than RM750. Low income households (earning income equal or less than RM2,000 per month) represents 75% of the median income in Malaysia.
The national average household income is estimated at RM4,000 per month. It should also be noted that about 65% of Malaysia's population is below the age of 35, thus there would definitely be strong demand for housing.
Due to continuous movement in the factors affecting supply and demand for housing, policy intervention is necessary to ensure that the majority of the population has equal access to own homes. Singapore's public housing policy is often cited as the most successful example of affordable housing provision in Asian cities. A study conducted in 2000 estimated that about 85% of the total population lived in public housing with nearly 95% of them owning the flats they occupied.
By centralising its public housing effort under a single authority, Housing Development Board, Singapore has circumvented the typical problems of duplication and fragmentation of duties, and bureaucratic rivalries associated with multi-agency implementation. This centralised function also serves as a mechanism to ensure supply and demand are checked.
It is hoped that the provision of affordable homes as announced in Budget 2012 would achieve its main objective of increasing home ownership among the majority of the population.
Senator Datuk Abdul Rahim Rahman is the executive chairman of Rahim & Co group of companies. - By Datuk Abdul Rahim Rahman (The Star)
The main determinants of the demand for housing are demographic. Population size and population growth are the core demographic variables. However, family size, the age composition of the family, the number of children, net migration, non-family household formation, the number of double family households, death rates, divorce rates, and marriages are other demographic variables that would influence demand for housing. Other factors such as household income, price of housing, cost, availability of credit, consumer preferences, investor preferences, price of substitutes and price of complements all play a role in determining demand for housing.
Income is an important determinant of demand as shown by a study conducted by De Leeuw in 1971 that showed positive income elasticity of demand in North America ranging from 0.5 to 0.9, meaning the market demand for housing grew as real income rose. The price of housing is also an important variable influencing demand for housing, where in terms of elasticity just like any normal goods it is negative increase in price will result in decrease in demand.
As for supply, the quantity of incoming supply is typically influenced by cost, price of existing stock of houses, and the technology used in the construction, where material costs tend to contribute the largest share of the construction cost, about 30% to 40%. In the short run, supply tends to be very price inelastic increase in cost will have less effect on supply. However, over a longer period, it tends to be very price elastic increase in cost will lower supply.
A study conducted by Fallis in 1985 showed price elasticity of supply was estimated at 8.2, indicating increased in cost would lower supply significantly. The degree of elasticity depends on the elasticity of substitution and supply restrictions. For example, the use of capital intensive technology has been employed to reduce the rising labour cost, thus having less impact on the supply of housing.
As at first half of 2011, Malaysia had 4,466,062 units of housing, an increase of 1.7% from the total of supply in the first half of 2010. About 24,709 units were completed in the first half of 2011, a lower number compared to 50,611 units completed in the first half of 2010. Kuala Lumpur and Selangor accounted for 6,567 units or 27% of the total new stock. Kuala Lumpur and Selangor had 414,436 and 1,285,192 homes, reflecting an increase of 2.0% and 1.7% respectively from the total as of first half of 2010.
Other states which showed significant number of units completed are Sarawak (2,612), Penang (2,507) and Perak (2,184). The incoming supply in the country was recorded at 560,636 units, where Selangor is the largest contributor (134,143 or 24% of the total) followed by Johor (76,429 or 14%) and Negri Sembilan (65,227). Kuala Lumpur has 39,656 units coming on stream.
In terms of transactions recorded as of first half of 2011 for the country, there were 133,984 transactions in the residential category, out of which the largest transacted numbers were priced in the range of RM100,000 to RM150,000, which accounted for 22,857 units, followed by units priced between RM250,000 and RM500,000, which accounted for 21,559 units.
Selangor recorded the highest number of transactions at 38,424 units, followed by Johor (15,015 units), Penang (13,832 units), and Kuala Lumpur (11,522 units). The most popular units transacted in Selangor, Kuala Lumpur, and Penang were for units priced between RM250,000 and RM500,000, while in Johor, the highest transactions recorded were for units priced between RM100,000 and RM150,000.
This brief analysis gives an indication that the total number of units coming into the market needs to be in line not only with the level of affordability of potential buyers in the area the projects are to be launched but also the demographics of Malaysian population.
As of July 2010, total population was estimated to be 28.25 million and the population is expected to grow at a rate of 2.4% per annum, where about 65% of the population is urban population. Today, less than 4% of Malaysians live in poverty and it is estimated that about 2.0% of the total urban population in Malaysia lives below the poverty line, earning monthly household income of equal or less than RM750. Low income households (earning income equal or less than RM2,000 per month) represents 75% of the median income in Malaysia.
The national average household income is estimated at RM4,000 per month. It should also be noted that about 65% of Malaysia's population is below the age of 35, thus there would definitely be strong demand for housing.
Due to continuous movement in the factors affecting supply and demand for housing, policy intervention is necessary to ensure that the majority of the population has equal access to own homes. Singapore's public housing policy is often cited as the most successful example of affordable housing provision in Asian cities. A study conducted in 2000 estimated that about 85% of the total population lived in public housing with nearly 95% of them owning the flats they occupied.
By centralising its public housing effort under a single authority, Housing Development Board, Singapore has circumvented the typical problems of duplication and fragmentation of duties, and bureaucratic rivalries associated with multi-agency implementation. This centralised function also serves as a mechanism to ensure supply and demand are checked.
It is hoped that the provision of affordable homes as announced in Budget 2012 would achieve its main objective of increasing home ownership among the majority of the population.
Senator Datuk Abdul Rahim Rahman is the executive chairman of Rahim & Co group of companies. - By Datuk Abdul Rahim Rahman (The Star)
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