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Showing posts with label Property management. Show all posts
Showing posts with label Property management. Show all posts

Saturday, January 20, 2018

STRATA Property insights - Serious on strata


Important issues and frequently asked questions


STRATA-type property is and has been all the rage. It is also expected to be "the living model" if not already.

Whether in cosmopolitan cities or suburban fringes, and as space becomes "in want" and prices hike, we feature our final article on strata-related property highlighting pertinent questions frequently asked to which Chris Tan (CT) gives input on.

Q: What should one look out for in the S&P before deciding on buying a particular strata-titled residential property?

CT: Buying a strata title property is not just buying a property but buying into a community living regulated by law. As a buyer, you are not only responsible for your very own unit but also the common property within the development too.

There is an ongoing obligation to pay the monthly service charges and sinking fund until the day you sell the same to another owner.

Besides the S&P Agreement, you are normally expected to sign the Deed of Mutual Covenants too, that regulates the relationship of the many owners within the same development with house rules vis-a-vis the prescribed by-laws under the Strata Management Act. In addition to the compliance with these rules, you are also expected to participate in the management of the common property at the Annual General Meeting as well as the Extraordinary General Meeting.

In the completion of the S&P Agreement, do ensure that the seller has no more outstanding charges and sinking funds owing the management and that the deposits paid are to be adjusted accordingly.

Q: Can you please explain further on 'share units' of strata-titled property? How does this affect a residential strata-titled property owner or what is the relation between the owner and the share units?

CT: Share unit has always been there in strata living as it will be stated in the strata title upon its issuance. It is now capturing the limelight, given that it is now the basis to be contributed into the maintenance charges and not the usual rate psf of the size of your main parcel.

There are different 'weightages' for the main parcel, the accessory parcel and the type of usage to make up the various elements of the share unit.

Suffice to say that two units of apartments of the exact same size might have different share unit allocation, if one has more accessory parcels than the other, or one is of commercial usage while the other is residential.

Q: What are some current and common issues faced by owners of strata-titled residential property and how would these be best settled?

CT: Issue 1: Contribution to service charges and sinking funds from the owners have always been done on the total size (in sf.) of the main parcel. Under the new regime since June 2015, it should now be based on per share unit instead.

Share unit is a concept that takes into account the size and the usage (of different allocated weight) of both the main parcel as well as the accessory parcel. It's stated clearly in the strata title when it is issued. It is also the basis of voting by poll if so requested in any General Meeting. Share unit is therefore now the basis of both contribution and control as opposed to just control in the past.

In theory, it should be a fair method for all. The issues are:

(i) Some strata owners find themselves paying more than before while some strata owners now pay less; and

(ii) The Share unit allocation under the previous legal regime was a result of consultation and discretion and not as transparently guided under the new law. It is a difficult process and to adjust again, particularly when the strata titles have been issued, will be tedious.

Issue No. 2: In Phased Development there is now a requirement to file the Schedule of Parcels (SOP) stating clearly the total share units to be offered under the entire development before one can proceed to sell. It therefore includes the later phases of a development that will only be developed in the future.

The issue is that this SOP can only be adjusted if we can get 100% of the owners to agree or it is a direction from the authority.

There will be no flexibility accorded to the developer who might want to change the SOP for the feasibility or sustainability of the development, taking into account the new circumstances of the future, in the best interest of the entire development.

Another related issue would be on the contribution of the allocated share units by the developer for yet to be developed phase in the maintenance of the common property already built and delivered.

Q: Any other 'surprises' or areas of concern that many strata-titled residential property owners are unaware of until after purchase of such residents?

CT: Don't be surprised if the property does not come with an allotted car park, although it is a norm to expect a car park to come with the unit. It is not always the case.

Q: Like many busy owners of a strata-titled property who do not have the time to sit in at resident's meetings with the management body – many have simply 'gone with the flow' of things as 'questions/disputes' require time for discussion.

What would you recommend for busy individuals who have 'no time' to attend such meetings but can only look at the annual/bi-annual strata/building management statements/financial reports? What should one keep an eye out for in these financial statements?

Why is it important to attend these meetings; what would owners be losing out on by not attending and being an 'active owner'?

CT: It is a regulated community living and participation is expected of every owner.

Although many have chosen to be passive, you need to participate or run the risk of letting major decisions lay in the hands of the active few.

You should keep an eye to ensure that the charges collected are well spent, that collection should always be monitored and the performance of the appointed property manager.

Also, understand your rights and obligations as a strata owner is important, and ensure that you and your neighbors are equally aware of the same too.

Q: As a tenant, and not the owner of the 'parcel' – are they bound to all the By-laws?

CT: The by-laws, additional by-laws and amendment of such additional by-laws made by the Management Body shall not only bind the owners but also the tenants, chargess, lessees and occupiers.

Q: Any other important issues that you would like to highlight to readers of theSun?

CT: Moving forward, strata living will be the preferred way of community living. Take a keen interest to learn and understand this living model in order to get the most out of it.

There are many more frequently asked questions, especially on management bodies, by-laws and leakage and defects. Answers to these can be found in Chris Tan's Owner's Manual & Guidebook.

Follow our property column next Friday for more insights on the market in the local scene.

Source: Thesundaily

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Sunday, July 2, 2017

Invest in the future




IT has always interested me to see how the different selection of words sent varied messages to readers and listeners.

Of late, I’m intrigued with the use of oxymorons, a combination of words that have opposite meanings and which usually produces an incongruous, seemingly self-contradictory effect.

Some daily expressions such as “open secret”, “seriously funny”, “deafening silence” and “pretty ugly”, are good examples on how the completely opposite meanings of words create dramatic effect.

Among other oxymorons come an expression often heard among condominium owners to their management corporations (MCs) and management offices: “We want you to lower costs and improve quality.”

Just like any other oxymoron phrases, the statement above makes me puzzle and ponder. It is prudent to manage costs, but unrealistic cost cutting over the long run will lead to decline in the quality of facilities and services.

Based on my experience, quality always comes with cost especially in property management. It is impossible to achieve higher quality standards by reducing expenditure.

I have heard of occasions where homeowners’ representatives in MC set high benchmark for the property management team, but expect them to cut down on the number of workers and cleaners in order to reduce spending. Needless to say, we can imagine what the outcome would be without looking at the property itself.

In reality, MC and homeowners must invest, not spend less for better quality. While developers and property managers play the important role of ensuring the upkeep of properties, the property owners themselves are the main stakeholders in deciding the fate of their properties. They are the party who can approve the budget and usage of their service charge and sinking funds.

In my previous article, I mentioned it is important for homeowners to participate in property management, such as attending AGMs and EGMs to exercise their right to raise concerns and approve the budget during such meetings.

In addition, homeowners and MCs must be bold in making decisions to invest in their properties with the reserved funds they have in their account.

Hence, while it is important to manage cost, it is also important to spend wisely for the future. Inflation is a fact of life, so MCs and homeowners should factor the inflation rate into their service charges, and use the real inflation rate, typically higher than the officially sanctioned rate anywhere in the world.

Typically, service charge is used for the general maintenance of the building. Sinking fund, on the other hand, can be used for the painting and the repainting of the common property, acquisition of movable property, the replacement of any fixture or fitting, the upgrading and refurbishment of the common property, and any other capital expenditure deemed necessary.

Managing a strata property is like maintaining a car. We must service our car regularly and replace its parts when they are due for change according to mileage. If a car is serviced less often, it gets more expensive to fix later when the equipment falls apart, and sometimes it may be too late to change.

Hence, when we reduce spending on maintaining a property, the decline of quality may be slow but sure. It takes time and additional cost when homeowners want to re-invest to restore the property later.

Invest in the future is just like doing exercise. It is hard to do, but if done regularly it will build health, strength and happiness.

To invest in a strata property means to increase, not cut down services such as cleaning, maintenance, security and landscaping. It also means to spend the sinking fund regularly not just on replacements, but also on upgrades, as the world doesn’t stand still. New projects would make existing projects old and even obsolete if we don’t manage our property well.

Investor’s nightmare

How well a property is managed can make or break the value of the property. A quality property management will allow the value to increase; while poor management could translate into an investor’s nightmare.

Active management and upgrading of properties is an important approach to protect our homes and investments. As such, whenever homeowners or property management companies tell me they are able to increase quality and cut cost at the same time, I would wonder whether, “Is this a short-term gain at the detriment of long-term benefits?”

By Alan Tong

Datuk Alan Tong was the world president of FIABCI International for 2005/2006 and awarded the Property Man of the Year 2010 at FIABCI Malaysia Property Award. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.

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Monday, September 26, 2016

High-rise living in below par, need professionalism in managing the property

Star's Graphic: http://clips.thestar.com.my.s3.amazonaws.com/Interactive/highrise/highrise.mp4

Only 74 out of 7,325 high-rise residential properties in Peninsular Malaysia earned the top five-star ranking in an evaluation of their property management standards. And more than half are below par, earning only one and two stars.


IT is one thing to be a developed state by 2020. But it is another thing entirely to have a developed state of mind – and Malaysians have a long way to go to achieve that.

Take, for instance, condominium- and apartment-living.

Some of these properties may come with top notch facilities but when it comes to managing their upkeep, there is much to be desired.

Or so says the latest findings on the quality of managing stratified properties from a survey by the Urban Wellbeing, Housing and Local Government Ministry.

Every year, the ministry conducts its Strata Scheme Management Quality Evaluation, or “Star Rating”, which ranks the standards of joint management bodies (JMBs) or management corporations (MCs) of apartments and condominiums.

These bodies are ranked based on how they do in seven areas (see graphic below for details); five stars is the highest rank.

But, as it turns out, more than half – or 69% – of condominiums and apartments nationwide ranked “below par”, scoring only one and two stars in 2015. In 2014, a slightly smaller percentage, 65%, were ranked below par.

Only 1% – or 74 – out of 7,325 strata development schemes surveyed earned five stars in the 2015 ratings, made available to Sunday Star.

If such a trend continues, future residents will inherit poor standards of living amidst modern facilities.

Currently, almost six million Malaysians out of 20 million city folk are living in stratified buildings like apartments and condominiums.

“But this number is expected to rise in future as the country progresses and becomes more urbanised,” says Mohammad Ridzwan Abidin, Urban Wellbeing, Housing and Local Government Ministry urban service division under-secretary.

He says one of the major problems that condo dwellers continue to face is the refusal of other residents to pay maintenance fees. Other problems are building defects and matters involving enforcement.

“For now, about 70% of residents are at a level where they are merely aware of what needs to be done in managing their property. They are not yet at a level to appreciate the benefits of cooperating with each other and creating a better living culture,” he says.

Mohamad Ridzwan says there is a need to change the mindset of people to foster more civic-minded communities in high-rise buildings.

“Future generations will likely live in stratified buildings, so people should try to set a proper precedent for them,” he says.

He points out that there are also more people moving out of landed properties and into high-rise buildings.

“This group of people will have to learn to adapt to the culture of living in stratified buildings as it is different from living in houses.

“They will need to be more inclusive of and cooperative with their neighbours,” he says, adding that they would also have to learn to be more considerate when it comes to using shared facilities.

Stressing that it all boils down to the mindset of residents, Mohamad Ridzwan highlights the case of Rumah Pangsa Orkid, a low-cost flats property in Ulu Tiram, Johor, which made it into the Malaysia Book Of Records in 2014 for obtaining the ISO 9001:2008 standard for exemplary management.

“Until today, they remain the only low cost flat development to have achieved this,” he says, adding that there are yet to be any high-end condominiums accorded the same standard.

Mohamad Ridzwan says the ministry will continue to actively educate dwellers on proper management of their properties.

“We will embark on more education programmes to promote better practices through advertisements in the mass media,” he says.

On the Strata Management Tribunals to hear disputes, Mohamad Ridzwan says four such tribunals have been successfully set up to cover different zones in Peninsular Malaysia.

“Since their formation the tribunals have heard about 200 cases per month,” he says.

In March, Sunday Star reported that residents who do not pay maintenance fees and other charges were set to face the music, with the Government forming a team to strengthen the enforcement of the Strata Management Act.

The Act also enables residents to take their disputes to a Strata Management Tribunal to settle matters.

Building Managers Association of Malaysia committee member Richard Chan agrees that the “biggest and most critical” problem is the collection of fees, saying that it is rare that JMBs or MCs are able to collect payment from 80% of residents.

“It is more common for the collection rate to be at 40% or 50%,” he says.

Chan laments that petty excuses are often given by residents to defend their refusal to pay up.

“Some refuse because they don’t use the facilities.

“When people ask why they don’t want to pay, they simply say they don’t swim or play tennis,” he shares.

Chan adds that many unit owners live elsewhere or are based overseas and so are reluctant to pay.

“Some are not satisfied with services like garbage collection and defy orders to settle the fees,” he says.

He urges future condo owners to refrain from buying properties that come with all sorts of facilities if they are unwilling to pay up.

“Sometimes, it isn’t about whether they can afford the fees or service charges. It is about their attitude and mentality.

“Some don’t pay simply because their neighbours are not paying and are getting away with it,” Chan says, adding that such attitudes have resulted in some apartments owing up to RM200,000 in water and electricity bills.

The lack of money in the sinking fund also hinders JMBs and MCs from paying for major works like repairing lifts.

“It becomes a vicious cycle. Because people are not satisfied with the upkeep of the place, they do not pay the fees.

“But when they do not pay, there isn’t enough funds for upkeep,” he says.

Also, developers must do their part by informing all potential property buyers of the exact amount of all service charges, says Chan.

“Developers will try to promote their projects for more sales but they should also inform buyers of the fees they are expected to pay.

“Owners should also consider that, after a year, the fees may go up as warranty periods for equipment expire,” he says.

Federation of Malaysian Consumers Associations secretary-general Datuk Paul Selvaraj says many complaints against MCs have been made to the federation.

“High-end condominiums are generally better managed. We received a lot of complaints from people in medium cost apartments,” he says.

He says that consumers and the building management should both be more responsible.

“Consumers need to settle payments that they have agreed to. But they should also be receiving good service in return, like efficient rubbish collection,” he says.

Selvaraj highlights that the only way forward is for management bodies and residents to have a good working relationship.

“People should understand that managing their building is a collective responsibility.

“More dialogues should be held on how to improve the community to ensure good quality of life wherever we live,” he adds.

by Yuen Meikeng The Star/Asia News Network

More professionalism needed in managing high-rises


WITH more high-rises mushrooming, a Building Managers Board is urgently needed, according to Tan Sri Teo Chiang Kok, deputy president of the Building Managers Association of Malaysia (BMAM).

BMAM is an umbrella body comprising stakeholder organisations representing management corporations (MCs), joint management bodies (JMBs), chambers of commerce, developers, engineers, architects, shopping and high-rise complex managers, and managing agents.

Appealing to the Urban Wellbeing, Housing and Local Government Ministry to set up the board urgently, Teo says such a body is long overdue.

“Millions of stratified properties are coming up. Building management is becoming a very big industry. We have to start regulating. All building managers must be registered and regulated,” he says.

To date, some 600 building managers have voluntarily registered with the association, he shares, estimating that there are probably tens of thousands more.

Meanwhile, the BMAM is focused on educating its members and interested parties on good management via collaborations with institutions of higher learning.

Describing building management as a multitasking, multi­discipline function that attracts people from various backgrounds and with a variety of skills, Teo says that basic criteria for the role is needed. A Building Managers Board, once set up, will have guidelines and regulations to bring professionalism to the role.

Persons deregistered by the board cannot be hired as property managers, he suggests. This, he feels, will make hiring building managers cheaper while ensuring that they are monitored.

“So long as they fulfil the board’s requirements, anyone can be a building manager. The board will monitor and weed out the errant ones. JMBs and MCs can hire cheaper, smaller companies, even individuals, to manage their buildings if they don’t have the budget.”

Urban Wellbeing, Housing and Local Government Ministry urban service division undersecretary Mohammad Ridzwan Abidin acknowledges the proposal to set up a Building Managers Board.

“However, no decision can be made by the ministry yet as this matter is still being discussed,” he says.

He says the ministry issued a directive to Commissioners of Buildings nationwide last month to register all managing agents to protect residents from unscrupulous parties.

The BMAM would also like to see the country’s 150-plus Commissioners of Buildings (COB) given proper funding and staff. The role of the commissioner is mostly undertaken by local council heads or mayors, which isn’t right because they already have so much on their plate, he says.

The Commissioner of Buildings must be a dedicated, full-time position supported by an adequately funded department. Now, it’s mainly a one-man show, he observes.

“The Act is a good tool,” he says, referring to the Strata Management Act 2013, “But it’s for the COB to implement it efficiently. An effective COB can nip many things in the bud – the COB can call a unit owner, find out the grouses and give directives. If the COB can offer easy resolution, a lot of problems will be solved.”

Apart from supporting the position of COB, JMBs and MCs must familiarise themselves with the Strata Management Act, says Richard Chan, a committee member of the Building Managers Association of Malaysia and a past president of the Malaysian Association for Shopping and High-Rise Complex Management.

“For instance, many aren’t aware that money collected should go to JMBs and MCs – not the companies or individuals hired to manage the property. What if these companies don’t pay the service contractors?”

On Tuesday, a full-day strata management seminar will be held at Wisma Rehda in Petaling Jaya, Selangor, to explain the Act, he says, urging stakeholders to attend the event.

Teo feels that the Act is too harsh on JMB volunteers. Calling it a thankless job, he says it’s difficult getting residents to even attend AGMs, what more serve on the JMB.

“Despite not being paid, JMB members risk personal liability actions. It’s too onerous. It’s overkill because there are already laws like the Penal Code which imposes fines and jail terms.”

And he feels that the Act places too many obstacles in front of willing volunteers.

“The JMB chairman and members can only serve for two and three years respectively. Such restrictions will make things worse because as it is, no one wants the job. Our solution is to extend the chairman’s term to three years; but if at the AGM there’s no one else who wants the post, he or she should be allowed to stay on. And members should be permitted to stay on for as long as they want.” -  The Star

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Story image for How these low-cost flats came out tops from The Star Online

How these low-cost flats came out tops

The Star Online-Sep 24, 2016
Record-breaking: Rumah Pangsa Orkid is the first low-cost property to achieve the top standard for quality management.

Room for improvement

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Saturday, November 23, 2013

Old is Gold

Historical buildings offer unrealized value 

Refurbished heritage properties in Jalan Lau Ek Ching in Ipoh. One is for sale at RM2mil.  

What price is one willing to pay to own a piece of history?

According to valuation surveyor and property consultant Choo Ah Sit, sources have revealed that the former OCBC Bank building on Lorong Hang Jebat in Malacca has been attracting attention from foreign buyers. Some Singaporeans are said to have offered between RM22mil and RM25mil for the property.

However, since foreign buyers are required to obtain approval from the state’s Foreign Investment Committee, which can be a time-consuming process, the owners have offered the early mordernist style building to a local company for RM17.5mil.

The total land area for the five lots covers some 7,739 sq ft with a 3½-storey building with a total built-up area of about 23,500sq ft. Crunching the numbers, if the offer of RM17.5mil goes through, the price of the property works out to RM2,261 per sq ft.

“With that kind of money, you can construct a new 15-storey building, but not in the core zone of the Unesco heritage site, of course,” Choo said.


Property valuer Choo Ah Sit says the prices for heritage buildings have gone 'crazy' since the UNESCO title in 2008.
Property valuer Choo Ah Sit says the prices for heritage buildings have gone ‘crazy’ since Unesco recognised it in 2008.

Having observed the property market in Malacca for the last 33 years, Choo’s honest assessment of the market is, in his own words, “crazy”.

“The current trend now is, ‘You like, you pay. Don’t ask about the price’,” Choo declared.

From a map showing the Jalan Tun Tan Cheng Lock-Jalan Hang Jebat area (famously known as the Jonker Street area) and its immediate lanes, there are no less than 20 properties available for sale, but there are few signboards to indicate the owners’ intentions.

“In some cases, someone who has taken a fancy to a building will simply ask around for the owner’s contact. Surprisingly, word spreads fast. This is how some transactions are concluded,” revealed Choo.

The steep jump in prices, said Choo, came in tandem with the declaration of the area as a Unesco heritage site.

“From the 1970s to the 1990s, there was no interest in these buildings. One was because of the Rent Control Act that saw rental rates for buildings built before World War II being fixed at RM100 to RM200 per month. The returns were not enough to motivate owners to perform the necessary maintenance, resulting in some of these structures falling into a sorry state of disrepair. Only when the Act was abolished and the free market allowed to take over, did prices start to move upwards by anywhere between 30% and 50%,” Choo said.

For an idea of how much investors are expected to fork out at current market prices, Choo revealed that asking property prices in the heritage zone in Malacca can start from RM600psf to as high as RM1,600psf, depending on location factors such as accessibility and traffic flow.

Choo cites three interesting cases.

One property located along Jalan Tun Tan Cheng Lock made a record sale of RM1,221psf while prices for two single-storey shop houses in Jalan Hang Kasturi appreciated from RM980,000 to RM1.75mil in a short span of nine months.

Choo surmised this may be caused by the property changing hands over a short period of time. He also does not rule out factors such as speculation and the undervaluing of property.

.  
A pre-war shop with a restaurant for sale in Lorong Panglima, Ipoh, for RM1.5mil.

Another plum lot is a two-storey pre-war building occupying 1,717sq ft on Jalan Tun Tan Cheng Lock that is asking RM2.8mil or RM1,630psf.

“The high prices are mainly due to a fixed supply and it will keep rising because of this. Where foreign buyers are involved, it may have something to do with the prestige of owning a piece of property in a Unesco heritage site. The other thing is our favourable exchange rate,” said Choo of the dramatic prices.

Over in Penang’s Georgetown, which received the Unesco heritage designation at the same time as Malacca, Jennifer Yeoh, 47, a real estate agent for the past five years, said the appreciation for old buildings had been foreseen by some businessmen who transformed these premises into restaurants, hotels and retail outlets as early as a decade ago.

Case in point is Gurney Paragon on Gurney Drive. Standing together with the brand new mall is the 88-year-old St Joseph’s Novitiate.

In 2004, the 10-acre parcel of land was sold to Hunza Properties for RM97.86mil, or roughly RM250psf back then.

Today’s prices have, of course, risen significantly.

In Yeoh’s listings, for example, there is a row of seven units on Lebuh Clark each occupying 650sq ft going at RM1.2mil a unit or RM1,846psf. Over on Jalan Irving, a two-storey bungalow with a built-up area of 3,964sq ft is going for an asking price of RM4.5mil or RM1,135psf. On Beach Street (Lebuh Pantai), the owner of a two-storey shop house covering an area of 4,475sq ft has put the property up for sale at RM1,005psf.

“The trend is not to buy them singly but to purchase maybe a row of seven units at a time so that bigger commercial projects can take place,” says Yeoh.

She reckons buyers in this category are also antique appreciators in a way. In some of Yeoh’s listings, there is still old furniture from the post-World War II era inside.

Over in Ipoh, head of business development for Oriental Realty, Gladwin Agilan said the interest in pre-war and heritage buildings started in 2008 when a group of local businessmen began buying properties on Jalan Raja Ekram, Jalan Lau Ek Ching and Lorong Panglima and converting them into watering holes and eateries.

History, said Agilan, 37, was the main selling point. He cites Lorong Panglima as an example.

“In the past, this was known as Concubine Lane, formerly a red light area. Tin miners were said to keep their mistresses there, away from the public eye, in these very houses. Over time, international media and local historians played a part to stoke interest in the area.

With the influx of visitors who have found the architecture and nostalgia an ideal spot for wedding photography, local authorities were prompted to repair infrastructure like drainage and other utilities,” Agilan said.

Over 10 years, Agilan has seen property prices for pre-war buildings in Ipoh starting from as low as RM150,000 to RM180,000 and appreciating to a current price of RM550,000 to RM600,000.

“In our records, the last transaction for a pre-war building was at RM950,000. Today, offers have reached RM1.1mil,” he said.

In his current listings, a refurbished two-storey pre-war building measuring about 900sq ft on Panglima Lane is going for an asking price of RM800,000, which works out to an auspicious RM888psf.

The first floor is already tenanted, but the upper floor can be adapted into a homestay. Over in Jalan Lau Ek Ching, where the famed Bricks and Barrels watering hole is located, the current asking price for any one of the refurbished buildings covering 1,900sq ft on this row is RM2mil, about RM1,052psf.

Agilan explained the intention of most owners is not to restore but adaptive reuse. First on the agenda is the electrical rewiring, plumbing, roofing and flooring.

Walls are usually in the form of cement skreed and if the original floors are of timber, these will usually be replaced with double volume metal decks for safety and functionality. Renovation costs for such projects are usually in the range of RM100,000 to RM150,000.

According to Agilan, Ipoh is a veritable trove for heritage building hunters as there are no less than 2,000 units over 80 to 100 years old scattered in seven main areas.

The buildings can be found on Jalan Sultan Iskandar, Jalan Sultan Yusuf, Jalan Silang, Jalan Bandar Timah, Jalan Othman Talib, Jalan Bijih Timah and the two streets mentioned earlier.

However, Agilan reckons the chance to own a property in this market segment requires a lot of conviction.

“The owners really have a lot of holding power. There are cases where offers have had to wait between six months to a year before getting a reply. The oft-received response I always get from the owners is ‘Not now’ when it comes to the question of selling their property. Understandably so, as some of them are ancestral homes,” said Agilan.

But mindsets, observed Agilan, are slowly changing with the younger generation.

“In the 1980s, during the lull in tin prices, many moved to Kuala Lumpur. Back then, these properties had not reached their full worth yet as buyers did not know what to do with them.

“However, the economic revival in Ipoh has changed things and given people new ideas so this is a very good time to sell, and buy,” concluded Agilan.

- Contributed  by story and photos by Grace Chen The Star Metrobiz

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Wednesday, August 28, 2013

Malaysian property sector no immediate bubble risk

PETALING JAYA: The Malaysian property sector is not in any immediate risk of experiencing a bubble, according to property consultant CBRE Malaysia executive chairman Chris Boyd.

He said despite rising residential property prices, houses in Malaysia were still among the cheapest in the region.

“Residential property prices increased at a constant pace in Malaysia until 2009, but have been accelerating until recently.

“However, prices are not as volatile as those observed in Hong Kong and Singapore,” he said in a presentation during the 16th National Housing and Property Summit 2013.

“In comparison with selected Asian luxury residential prices, Kuala Lumpur remains one of the cheapest cities in the region,” said Boyd.

According to him, the average luxury residential property in Hong Kong costs nearly US$3,000 (RM10,200) per sq ft, compared with US$250 (RM850) per sq ft in Kuala Lumpur.

He pointed out that to overcome the issue of rising property prices, the Government had launched two schemes to make houses affordable, namely the Malaysia My First Home Scheme, which was introduced in 2011, and the 1Malaysia Housing Programme, which came into effect in 2012.

Meanwhile, Universiti Putra Malaysia Housing Research Centre professor Datuk Abang Abdullah Abang Ali said the recent Government initiatives were addressing the issue of rising prices but added that it was not clear if that was enough.

He said artificial increase in prices would create a bubble, noting that there was a serious mismatch between income and property prices, especially in the Klang Valley.

“This indicates that affordable homes are not being built to cater to the general market and most buyers in the Klang Valley are likely to be investors or speculators.

“As market prices head for a correction and speculation decreases, there may be an oversupply of properties above RM550,000.”

Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan, in his opening speech, said the Government had to mitigate excessive investment and speculative activity in the property market so as to prevent a property bubble.

“Moving forward, the Government would not hesitate to further tighten the fiscal policies in order to curb property speculation and ensure reasonable and affordable property prices in the country.”

Abdul Rahman said the low real property gains tax, which was increased from 5% to 15% last year, had not been effective in preventing the increase in house prices.

Contributed by EUGENE MAHALINGAM  The Star/Asia News Network
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Saturday, June 1, 2013

Malaysian property market sentiment after GE13

With the dust having settled after the 13th General Elections, all eyes are now on the freshly elected government for strategies for the real estate sector.


While other issues such as increasing the minimum purchase price for foreign buyers and reducing lending rates and stamp duties are also on the wish list of most Malaysians, latest figures released by PropertyGuru Group highlighted a continuing call for the government to address the issue of home affordability.

In the latest Property Sentiment Survey (Q2 2013) by the leading online property group, 76% feel that the government is not doing enough to curb the current price increase. This is more acutely felt in regions that have experienced a high foreign demand for residential properties, namely Johor (69%) and Kuala Lumpur (81%).

While 35% out of the total of 851 respondents claim that the outlook of the local property market will remain positive, four in five expect prices to increase further in the next six months.

Respondents also seem to favour stricter market restrictions on property ownership by foreigners, with nearly half supporting an increase in the minimum purchase price from RM500,000 to RM1 million for overseas buyers and investors wanting to buy properties in Penang and Johor.

Despite the growth in price, 74% of respondents intend to buy at least one property type (either residential or commercial) within the next six months, an increase of 10% as compared to the previous quarter. This is because of the perception that the more expensive a property becomes, the higher capital appreciation it will bring in the long term.

“There is a dilemma at play for Malaysians. As they see property prices spiral up, they also see their assets appreciating in value. But in the long term, they are also finding it more challenging to own properties,” Added Value Singapore managing director Raymond Ng says.

“Affordability is also a bigger concern for the younger adult population. There is no doubt that there are enough local funds to fuel the market and allow the government to control prices a bit better without relying on foreign investments. The challenge is finding the sweet spot that will entice locals to invest locally while not turning away all foreign investments.”

The survey was conducted by PropertyGuru Group in collaboration with Added Value-Saffron Hill, a Singapore-based independent professional research agency.

Conducted since 2010, it is the only independent local survey to measure property sentiments and expectations about the property market amongst Malaysians.

It is also carried out across the group’s four key target markets of Singapore, Malaysia, Indonesia and Thailand, attracting 4,062 online respondents aged 21 to 69 who are influencers or decision makers on property.

“The results are consistent with figures from previous quarters where 75% of Malaysians find property to be expensive.

Kho says Malaysians want more affordable homes and are looking to the government to deliver. 

“The message is clear; Malaysians want more affordable homes and are looking to the government to deliver. PR1MA is a step in the right direction, but Malaysians want more measures and existing measures to be expedited, PropertyGuru.com Malaysia country manager Gerard Kho says.

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Location: Malaysia

Saturday, December 22, 2012

Regulate property management! Forum on Strata Management in Penang

IT is understandable for the Strata Management Act to attract much public interest. There are (or will soon be) more people living in high-rise strata properties than in landed properties, given the rapid urbanisation and rising land prices in Malaysia.
The issue of the Board of Valuers, Appraisers and Estate Agents (BVAEA) seeking to regulate property management is controversial. Since the BVAEA is a body under the Finance Ministry, isn’t it odd that the Finance Ministry rather than the Housing Ministry is trying to regulate property management?

Most people have a pretty good idea about the job of a property manager and would conclude that it is a generalist’s job.

There should not be too many restrictions attached to a generalist’s job, such as that of a sales manager or a supermarket manager.

The opinion of HBA honorary secretary-general Chang Kim Loong on the role of a property manager is a bit overstated.

Property managers are at all times employees of MCs and JMBs and never the other way round.

Lives and property worth millions of ringgit are the prime responsibilities of employers and not the employees.

It is an exaggeration to say that lives and property worth millions are being entrusted to property managers to care, control and manage.

However, it may be a good idea to regulate the property manager’s job, but it would be more appropriate if it came under a board in the Housing Ministry with input from engineers and architects.

It would be less appropriate to come under a board in the Finance Ministry, as property management has more to do with building than finance.

By A CONCERNED CITIZEN Kuala Lumpur

Forum on strata management


A SEMINAR on the Strata Management Bill 2012 as well as the Strata Titles (Amendment) Act 2012 will be held at Auditorium C and F, Level 5, Komtar, from 10am to 4pm on Jan 13.

Komtar assemblyman Ng Wei Aik said many people were unaware of the new bill’s contents, including how to handle strata management disputes.

“The bill provides better protection for property owners. It is important that they know their rights,” he said at a press conference.

He said lawyer Lee Khai would talk on the application of the Strata Management Bill while licensed land surveyor Chuang Kuang Han would talk on Strata Titles Application and Problematic Cases.

Registration fee is RM30 per person which includes buffet lunch and lecture notes.

The public, including management corporations, joint management bodies and residents associations are invited to attend.

For more details, contact Ng’s service centre at 04-2270215/017-4108914/012-4290163, fax 04-2278215 or e-mail dapkomtar308@gmail.com before Jan 8.

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Sunday, November 25, 2012

Good property management, maintenance add value

Stratified developments becoming a way of life
As stratified developments become a way a life, good maintenance and management have become an issue.
 
EARLIER this year, a new set of property managers replaced the previous one in the condominium that Siti lives. Not having a current account, she paid her quarterly management fees in cash. She was told that the receipt would be put in her postbox. It never came and she soon discovered that the property management company had absconded with the money.

As stratified developments which include condominiums, service apartments and gated and guarded projects become a way of life, good maintenance and management have become an issue.

Good management and maintenance will improve the value of the asset. This applies to all segments of the property market, be it residential, commercial or industrial.

Hence, the third reading of the Strata Management Bill 2012 on Monday is crucial, says Assoc-Prof Ting Kien Hwa, head of Centre for Real Estate Research at Universiti Teknologi Mara.

“Currently, property management is part of a service provided by valuers, who are regulated by the Board of Valuers, Appraisers and Estate Agents.

The work of valuers can be broadly divided into three areas property management, valuation work and real estate agency work.

This means that property management is a regulated profession and delinquents risk having their licence suspended.

For the last five to six years, managing stratified properties has become an issue, he says. As more of us live in gated and guarded developments, and high rise condominium and serviced apartments, property management is evolving to become a lucrative industry.

Ting says the Board of Valuers is in the process of creating a third register to accommodate property managers. Valuers and real estate agents are governed by two registers and the Board of Valuers are working on creating a third one for property managers.

Says Ting: “This is a similar situation as in the early 1980s when there were many illegal real estate agents. They were given a one-year period to register with the board.”

Ting says the duty and responsibilities of property managers go beyond just collecting money and managing a property. The word “managing” covers a whole gamut of expertise and responsibilities. These include insurance valuation, the appropriate rate of service charges to levy on owners, managing service providers like security guards and cleaners, gardeners and managing tenants and rental rates among other duties.

Depending on whether it is a residential or commercial property, some issues may overlap.

To claim that valuers want to monopolise the property management industry is incorrect, Ting says.

“Some parties say they want to liberalise' the profession. Just as engineers and architects are regulated by the Institute of Engineers and Pertubuhan Akitek Malaysia respectively, so property managers are regulated by the Board of Valuers because property management is part of the work of valuers. This is the situation in the United States, Britain and Australia. Shall we then liberalise' the achitecture and engineering profession by allowing more people who are untrained to practise as architects and engineers because architects and engineers are monopolising' the industry?” Ting asks.

Ting says this argument to liberalise the profession and cut out the monopoly does not hold water at all.

He says there are currently 8,000 trained property managers in the country and every year, 450 more graduates enter the job market.

The local public universities provided courses in property management in the late 1960s because they knew there would be a need for this.

Malaysian Institute of Professional Property Managers president Ishak Ismail says: “The Government was visionary enough to foresee a time when stratified housing will become part of the Malaysian property landscape. The first condominium was Desa Kuda Lari in the KLCC area.

“Today about four million people live in stratified projects. About 80% of all the stratified projects are managed by joint management bodies and management committees. About 20% are outsourced and of this about 58% are managed by illegal property managers.”

Ishak said over and above the various issues that fall under property management, two sets of skills are needed the hard skills in managing the property and the soft skills in people management.

He says there is a need to put in the proper regulations to regulate property managers in order to improve the value of our property assets. There must be no conflict of interest because it involves public money, be it house owners or tenants of commercial properties, he says.

By THEAN LEE CHENG The Star

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