He says in the past, monetary policy
by way of interest rates was the
main instrument used to tame asset
markets. But after the global financial
crisis, most countries use macroprudential measures directed at
specific sectors, such as the property
market.
Titijaya Plans Launches Worth RM730 Million GDV in H1 of
2014
concentrated in the Petaling and
Klang districts in Selangor, which
Lim said would be able to sustain
the group until 2021.
On the proposed Goods and
Services Tax (GST), REHDA’s Yam
calls for greater clarity on its
implementation.
“Although it is rumoured that
residential properties may be GST
exempt, developers would still need
to bear the increased cost of input,
which would be subject to GST and
(there will be the) need to pass
(on) the incremental costs. Thus,
subject to further clarification, selling
prices would need to be adjusted to
account for the increased costs.”
Khong & Jaafar’s Fernandez says:
“The GST, 17 months from now, has
the potential of increasing the price
of residential properties by 1% to
2%, but that too will depend on the
state of the market at that time. If
the residential market is buoyant
at that time prices may go up, but
if the residential market is not that
buoyant and is in a steady state, it is
likely that developers may just have
to absorb the “input” costs.”
“Some input costs (sales tax) for
building materials at present are at
5% so that means a 1% increase in
the future, whereas others are at
10% and this will result in savings
when the 6% GST comes into play.”
Titijays’s Executive Director
Charmaine Lim
Titijaya Land Bhd is targeting
new launches with a gross
development value (GDV) of
RM730 million in the first half of
2014. The new launches are its
H2O mixed development project
in Ara Damansara and phase two
of its Embun@Kemensah project
consisting of semi-detached
houses.
The property group, en route
to a listing later this month, has
completed projects with a GDV
of RM1.14 billion since 2001 and
has ongoing projects with a GDV
of RM1.08 billion.
Its chief operating officer Lim
Poh Yit said Titijaya’s current
land bank totalling190.2ha
“The valuable insights provided
by our market research has
helped us identify hotspots
such as Penang and the Klang
Valley, where we are confident
our contemporary architectural
designs will appeal to potential
buyers,” he said at the
prospectus launch.
On expansion plans, he said
that RM30 million from the
initial public offering (IPO) was
allocated to acquire additional
land bank.
Executive director Charmaine
Lim added that the group was
still focussing on prime locations
in Klang Valley and its ongoing
projects.
Titijaya’s unbilled sales
amounted to RM500 million as
at June 30, 2013. The group set
a dividend policy of up to 30%,
which Lim noted meant about
4% to 5% yield.
Post-listing, the group’s net
gearing would be 0.22x while
gross gearing is 0.44x. Titijaya
aims to raise some RM122.6
million from its IPO.
Aside from the RM30 million
allocated for land acquisitions,
RM49.5 million will go into
Titijaya’s working capital, RM15
million for repayment of bank
borrowings, RM24.3 million for
repayment of advances from
previous shareholders of its
subsidiary Epoch Property Sdn
Bhd and RM3.8 million for the
listing exercise. The group will
issue 81.7 million new ordinary
shares of 50 cents each, at an
issue price of RM1.50.
Of that, 17 million new issue
shares are for the public, six
million for eligible directors
and employees, 34 million for
bumiputra investors and 24.7
million as placement for selected
investors. The listing also involves
an offer for sale of 49.5 million
existing shares at the same price.
Upon listing, the group should
have an enlarged share capital
of 340 million ordinary shares
of 50 cents each and 100
million redeemable convertible
preference shares of 50 cents
each.
Don’t Pay These Cheats, Minister Tells Buyers of PR1MA Homes
to pick among those who have
been registered into the system.
“Those who have paid these
cheaters are not very smart,” he
said, while taking a dig at those
who had paid these “agents”.
“Don’t be influenced by anyone
trying to coerce payment to get a
home through PR1MA,” he said.
PR1MA official website
Minister in the Prime Minister’s
Department Datuk Seri Shahidan
Kassim has cautioned potential
homebuyers not to pay any
booking deposit to “agents” for a
home under the PR1MA scheme.
been approached by individuals
who told them that they needed
to pay a certain amount to
secure a house.
He revealed that several of those
who had registered under the
aff