Property players see price rise in Penang

A general uptrend in Penang property prices is expected this year as property developers offer better quality products to more discerning buyers.

Penang-based property players interviewed by Business Times have cited construction material prices and inflation as reasons for them to price their units higher this year.

They, however, gave no indication on the quantum of the price increase.

"Despite the risk of price increases in raw materials, the outlook for the property market remains positive this year," SP Setia Bhd general manager S. Rajoo said.

"As the population increases, the demand for properties will increase as well," he added.

Rajoo said available property units in the state have been decreasing tremendously over the past 10 years due to strong demand for selected property types.

"We anticipate demand for landed properties to remain strong, due to the scarcity of land in Penang."

Eastern and Oriental Bhd said the prices of its properties are determined closer to their launch dates and hinge on prevailing market conditions, raw material prices and market sentiment.

E&O owns and develops Seri Tanjung Pinang masterplan township on Penang island that offers a range of properties including landed homes and high-rise residences by the sea.

"Consumers are highly discerning nowadays and they desire a complete package which includes built-in wardrobes and cabinets, quality fittings along with fine finishing and appliances, said its executive direc-tor Eric Chan Kok Leong.

"This in turn affects the eventual pricing of properties," Chan added.

Hunza Properties Bhd group executive chairman Datuk Khor Teng Tong concurred, saying that the rising trend in property prices tend to reflect an upgrading of quality for the said units.

"As buyers demand for better and higher quality, the price of building materials and land contribute to this rising trend," he said, adding that demand for properties in Penang continues to be strong for residential units in the face of a supply shortage.

For Ivory Properties Group Bhd, better finishings and amenities, teamed with larger liveable spaces are expected to result in a higher range of property offerings.

"With impending inflation, increase in prices of construction materials and factors such as all government-driven economic programmes like the Economic Transformation Programme, National Key Economic Area and the economic corridors which are due to drive the economy towards a higher per capita income, we foresee mid- to high-end properties continuing to be in demand," said its deputy chairman Datuk Seri Nazir Ariff Mushir Ariff.

Ivory's ongoing and upcoming projects in the first half of the year, he noted, will comprise commercial, landed residential and high-rise residences in Penang.

IJM Land Bhd, whose flagship "The Light" development is set to keep the company busy for the next 12-15 years, is looking at a slight price increase for its offerings.

IJM Land general manager Toh Chin Leong cited construction materials and inflation as reasons for the revision of prices.

With a gross development value of RM5.5 billion, The Light is a 60.8ha freehold waterfront development which will be built over the next 11 to 15 years.

"We had a good year in 2010 and we foresee the market to be stable and consistent and look forward to another good year ahead," Toh said.

By Business Times

Firm aims for top spot in property management

SUBANG: Andaman Property Management Sdn Bhd (APM), which is currently building and managing 10 ongoing property projects locally, aims to be the country's leading property management and property related services company.

Its executive director (sales and marketing) Datuk Vincent Tiew said from Jan 2011 onwards, the company would be launching and managing at least 10 properties worth RM2bil simultaneously.

Tiew said of 10 projects it currently managed, four belongs to the Andaman group.

“And we anticipate more developers and landowners to request for our services this year,” Tiew told StarBiz, adding that APM's business model was to develop and manage properties while generating high yield and fast turnaround for developers and landowners.

APM was formed in 2009 by some of the management members of the Andaman Group, an established property developer.

“After honing their skills in property development and managing properties of the Andaman Group, they decided to form an independent company, which is how APM was incorporated,” Tiew noted.

On its business model, Tiew said: “We want to be a leader in the industry in the country and build a strong track record of developing, maintaining and adding value to the properties that we manage in terms of yield, occupancy rates and capital gain for our clients, including property buyers.”

He said when APM was given the go-ahead to develop and manage a property project, it would first be looking to fulfill the developers expectation of the property project in terms of commercial reality, yield, bottom line.

“And our work starts from the onset of planning, authority management, construction and building maintenance to units selling, project administration and securing of strata-title. We also provide developers and landowners advice on how to best position the property development in terms of architectural design and other value-added services in line with developers/landowners expectations,” Tiew said.

On pricing he said: “We built shop lots and residential developments with per unit prices ranging from RM2mil to RM10mil and RM350,000 to RM1mil respectively.”

APM targeted its properties at the mass market to ensure that they remain in demand, even during the downturn, Tiew said, adding that for certain properties, buyers were guaranteed with return on investment.

APM's current property projects for the Andaman Group include Kota D'Sara with gross development value (GDV) of RM125mil, and Casa Residenza (GDV: RM180mil), both located in Kota Damansara. APM plans to launch the The Academia@South City Plaza in Seri Kembangan and the RM700mil The Arc@Cyberjaya in Cyberjaya.

By The Star

Bina Puri upbeat on cracking RM1b mark

The company expects 2011 to be one of its better years since its listing in 1995, says Bina Puri's group managing director

BINA Puri Holdings Bhd, which is expanding its business, is bullish that revenue will surpass RM1 billion this year, its chief said.



"This year is all about execution of projects and finishing existing jobs. We expect 2011 to be one of our better years since our listing in 1995," group managing director Tan Sri Tee Hock Seng told Business Times.

In 2010, Bina Puri secured projects worth RM2.5 billion. Among the contracts it won were the Ampang light rail transit line extension, the low-cost carrier terminal in Sepang, the Kuala Lumpur-Kuala Selangor Expressway privatisation project and building ramps and a main line bridge for the Eastern Dispersal Link in Johor.

The company hopes to maintain the rate of new contracts this year by securing RM2.5 billion worth of work.
It has bid for building and infrastructure projects worth over RM2 billion, in Malaysia, Thailand, Brunei and the Middle East.

For the nine months ended September 30 2010, Bina Puri posted a net profit of RM8.13 million on revenue of RM861 million. In 2009, Bina Puri made RM6.4 million on revenue of RM780.1 million.

Tee said the company's order book of RM3.3 billion will help improve its earnings for the next two to three years.

Meanwhile, Tee said Bina Puri is on a drive to expand its property division, which contributes less than 10 per cent to its revenue and net profit.

Bina Puri ventured into property development in the 1980sas a boutique developer.

Some of its prime projects include Bukit Idaman township in Selayang and Jesselton Condominium in Kota Kinabalu, Sabah.

Tee expects contribution from the division this year to be in the region of 15 per cent with RM900 million worth of housing projects in Klang Valley, Johor and Sabah.

"We want to expand the division because of the higher margins that can be made from property development. We don't want to be too dependent on construction, which is harder to take on," Tee said.

By Business Times