HOT TOPIC | SHAREDA 2014 Property Development Annual Report & Market Outlook 2015
2015
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be introduced specifically for
individuals who are unable to
obtain bank finance and JPN or
National Housing Department.
26,000 units of houses would
be built under the People’s
Housing Programme (PPR) with
allocation of RM644 million as
announced in Budget 2015
PROPERTY DEVELOPMENT OUTLOOK
D
espite all the turbulence that
happened last yearand the
future GST implementation on
April 1, 2015, SHAREDA Property
Research Unit is still optimistic
that the Sabah Property Development
Market will prevail and bounce back
in the upcoming year with support
given by the government and
self-adjustment by property
developers in assessing market
risks. Property development
sectors, including residential,
leisure property and
affordable housing are
anticipated to be active and
robust again due tothe
following assumptions
and assessments:-
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Following
many complaints from
Malaysian property
developers claiming
a slowdown in sales
after Budget 2014
introduced cooling
measures to curb
soaring house prices
came into effect, the
recently announced
Budget 2015 appeared to be friendlier
and less harmful to the property
development sector.
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Budget 2015 also announced the Youth
Housing Scheme which is a smart
Partnership between the Government,
Bank Simpanan Nasional, Employees
Provident Fund, and Cagarmas Bhd to
provide a special loan package to 20,000
first time house buyers from newly
married youth couples.
Syarikat Perumahan Negara
Berhad (SPNB) is to build
12,000 units of “Rumah Mesra
Rakyat” and 5,000 units of
“Rumah Idaman Rakyat” and
also 20,000 units of “Rumah
Aspirasi Rakyat” on privately
owned land.
Budget 2015 also relieves the
difficulties experienced by civil
servants in obtaining financing
for houses by increasing the
minimum eligibility for housing
loan from RM80,000 to
RM120,000 and the maximum
eligibility limit from RM450,000
to RM600,000. The processing
fee of RM100 for housing loan
applications would also be
abolished.
SHAREDA lauded the government’s
Datuk Abdul Rahman Dahlan
Minister of Urban Well Being, Housing and Local Government
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move in helping youths and first time
house buyers with the Youth Housing
Scheme, as well asmore units to be built
under 1PRIMA Housing or 1Malaysia
People’s Housing Programme. Prime
Minister Datuk Seri Najib Tun Razak has
announced loan offers as high as 110%
will be extended to 1PRIMA house buyers
by selected financial institutions. The
ceiling of household income for those
applying for the 1PRIMA homes will also
be raised from RM8,000 to RM10,000
in 2015. Budget 2015 has allocated RM
1.3 billion to build 80,000 units of PRIMA
Houses to address the issue of home
ownership ataffordable prices.
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A Rent-To-Own Scheme would
Prime Minister Datuk Seri Najib
as also committed to build
more 1Malaysia Civil Servant’s
Housing (PPA1M) and to be
sold at 25% cheaper than the
prevailing market price, and
provide a facilitation fund up
to 25% from the project cost
to private property developers
who will participate in this
scheme.
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The announcement by Minister
of Urban Well Being, Housing
and Local Government, Datuk
Abdul Rahman Dahlan on
August 30 mentions that
the government is open to
reintroducing DIBS Scheme
if there are indicators that
the ban is creating a negative
impact is most welcomed by all
property developers.
Datuk Abdul Rahman Dahlan
also announced on September
16, 2014 that his ministry has
no plans to compel housing
developers to adopt the
Build Then Sell concept for
all new housing projects as
demanded by house buyers
association (HBA). This
has again proven that the
government is willing to listen
to industrial players, of which
SHAREDA, REHDA and SHEDA
have on many occasions
stressed the importance of
property development and
its spill over impacts to our
economic growth as property
development directly affects
165 related chain linked
industries and is the creator
of employment and job
opportunities.
With the above mentioned friendly
budget and supporting gestures
from the government, SHAREDA
opined that the property market
outlook for 2015 will be better
than 2014 without much policy
risks interfering with the property
market apart from the soon to be
implemented Goods and Service Tax
(GST) in April 2015.
Assuming that the variety of projects
expected to kick off in 2015 goes
according to plan, there would
be a cumulative GDV of RM18
billion in development projects
which include affordable housing
schemes, government initiated
joint venture developments, private
developments initiated by SHAREDA
members and yet-to-be-confirmed
development projects in the East
Coast and Interior divisions.
EXPECTED AFFORDABLE HOUSING
SCHEMES TO BE LAUNCHED IN 2015
A total of 15,388 units are expected
to be built in Sabah involving the
Sabah State Government through
LPPB, the Federal Government’s
linked housing agencies such as
Jabatan Perumahan Negara (JPN),
Syarikat Perumahan Negara Berhad
(SPNB), and 1PRIMA Berhad, as well
as SHAREDA’s promise of delivery of
10,000 units (which will be actively
launched in 2015) at a combined
total GDV of RM4.054 billion.
SABAH GOVERNMENT INITIATED
JOINT VENTURE DEVELOPMENTS
Several notable mega development
projects which had their joint
venture agreement sealed in
the last two years with the State
Government have come to maturity
where the development plan has
now been approved by the authority
concerned and ready to takeoff.
These developments include the
Kota Kinabalu Convention City
(KKCC), Jesselton Quay, Sabah
International Convention Centre
(SICC) and Tanjung Aru Eco
in Jalan Bundusan with a GDV
of RM371 million, The Riverside
Residence @ Sodomon (medium
end condominium with a GDV of
RM66 million), Maya @ Likas (highrise condominiums with a GDV of
RM268 million), Kingfisher Inanam
(condominium development with
a GDV of RM300 million), and
Kingfisher Putatan (apartments in a
mixed development with a GDV of
RM45 million).
Commercial and industrial projects
will include Titanium Technology
Park (light industrial showroom with
a GDV of RM372 million), Orchard
Plaza (commercial hub with shoplots
and supermarket at a GDV of
RM50 million), and GM Home Retail
Warehouse (one-stop household
Development bringing the total GDV
to RM5.8 billion.
and furnishing hub with a GDV of
RM23 million).
PRIVATE DEVELOPMENT INITIATED
BY SHAREDA MEMBERS
The property market in 2015 is
expected to be vibrant in view of
several megamixed developments
already advertised for preview
at the end of 2014. Among the
notable projects are the two
mixed developments by Homesign
Network Sdn Bhd which are 360°
Boulevard and Skycity chalking up a
GDV of RM3.7 billion.
The leisure properties set to launch
in 2015 are Royal Kinabalu Mountain
Resorts & Hotel Suites in Ranau
with a GDV of RM370 million, Royal
City Hotel & Retail Complex in Kota
Kinabalu with a GDV of RM337
million, ALILA Dalit Bay in Tuaran
with a GDV of RM225.3 million,
Aman Saujana Resort Villas Phase
1, 2 and 3 in Tuaran at A GDV of
RM210 million, and Aman Pesona
Beachside Villas also in Tuaran with
A GDV of RM240 million.
The remaining projects with a total
GDV of RM3.44 billion include
landed residential, condominium
and apartment, commercial,
industrial and leisure properties.
Under the landed residential
category are Casablanca Residence
in Kolombong with a GDV of RM86
million, Astana Heights Phase 2B &
2D in Sandakan with a GDV of RM30
million, and Bandar Sri Perdana
Phase 4E1 in Lahad Datu with a GDV
of RM47 million.
Condominiums and apartments will
be the prime development category
in 2015 with D Residence (highrise development in Penampang
with a GDV of RM400 million),
Unicorn Tower Condominium
Out of the total expected RM18
billion GDV to be realised in 2015,
SHAREDA members shall contribute
RM9.5 billion (53%) categorized
under :
(1) SHAREDA – MLGH Affordable
Housing Programme (RM1.39 billion);
(2) Private Development Initiated by
SHAREDA Members including leisure
properties (RM7.14 billion), and
(3) Development projects to be
launchedby SHAREDA Members in
the East Coast, Sandakan, Kudat &
Interior regions which are yet to be
confirmed (RM1 billion).
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