Immigration & education drive property prices; Secondary property sales may take lead

Immigration and education are two drivers of property prices in cities in the next 10 years to 2024, said property consultancy Knight Frank International.

Its Asia-Pacific reaearch director Nicholas Holt said up to 76,000 Ultra High Net Worth Individuals (UHNWI) from China have immigrated the last 10 years - the highest - while up to 72% of Malaysia’s UHNWI send their children abroad, the highest. (See graphics below).

The cities include London, New York, Hong Kong and Singapore.

Holt was presenting his Wealth Report 2015 updated till third quarter 2015 at the 25th National Real Estate Convention in Kuala Lumpur.

He defined UHNWIs as those with US$30mil and above in investible income excluding their primary residence.

In an Attitudes Survey involving 600 advisors of UHNWIs by Knight Frank, the advisors - bankers included - said about 10% of their Malaysia’s ultra-high net worth clients were considering changing their domicile in the earlier part of this year.

“This compares with an overall 12% in Asia who are considering changing domicile,” said Holt.

Data show drop in primary market transactions

SUBANG JAYA: The ongoing slowdown in the local property sector could see transactions in the secondary property market overtaking that of the primary market.

Citing data from the National Property Information Centre (Napic), PPC International Sdn Bhd managing director Datuk Siders Sittampalam said the economic slowdown has affected transactions in the primary property market this year.

"Siders: ‘Total volume of transactions in the primary market has dropped, and this has also resulted in values dropping. >>

“Total volume of transactions in the primary market has dropped, and this has also resulted in values dropping.

“As such, there will come a time when the secondary market will lead the primary market,” he said at a press conference after the launch of the 25th National Real Estate Convention (NREC) 2015 yesterday.

Siders said it was difficult to provide a specific timeline on when he expected transactions in the secondary market to exceed that of the primary market.

“In terms of value, the primary market will find it harder to match the secondary market due to rising land and building costs,” he said.

Siders said he expected transactions in the primary market to improve once cooling measures imposed on the local property sector have been relaxed.

“Once the economy picks up and Bank Negara backs off on its cooling measures, the primary market will pick up again.”

He also said a drastic hike in interest rates will have an impact on the property sector.

“Over the last few years, the property market had been steadily growing due to various measures such as the developers interest bearing scheme (DIBS). Because of these measures, pricing in the market has been distorted.

“Now, when people have committed to their loans, especially youths and first time buyers, and there is a sudden hike in interest rates, there will be a dip in the market.

“Loans go bad and many properties will go under the hammer. This will not be a healthy market.” Siders said he was hopeful that any interest rate hike by the central bank would be a “sustainable increase.”

Bank Negara maintained its overnight policy rate in September at 3.25%.

The NREC was organised by the Royal Institution of Surveyors Malaysia and the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia.

The event highlighted major concerns for the future of the real estate industry in Malaysia during the current economic period.

BY EUGENE MAHALINGAM

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Penang property market to be resilient on sustained demand

PETALING JAYA: Penang’s property market is expected to stay resilient on the back of sustained demand, especially from Penangites working abroad planning to return and prospective retirees eyeing homes in the state.

“There has been a slowdown in the last year. There are a few categories of investors in Penang; those who are owner occupiers, those who are investors for the cultural developments, those who are in the Malaysia My Second Home (MM2H) and Penangites who work abroad but would like to settle in Malaysia,” said Penang Institute CEO and head of economics studies Dr Lim Kim Hwa (pictured) at the National Real Estate Convention (NREC) 2015 yesterday.

“For the last two categories, the properties in Penang would be priced significantly cheaper, thus I believe the demand in the property sector in Penang would remain rather constant,” concluded Lim during his presentation entitled “Penang: The Next Metropolis”.

In terms of the wider economy, Penang is expected to register a 5% to 6% growth in its gross domestic product (GDP), outpacing the overall country’s growth by 1%, he said, noting that last year, Penang’s GDP grew by 7.4% while Malaysia’s grew by 6%.

According to Lim, Penang contributes 21.8% of the balance of Malaysia’s trade surplus, specialising in machinery, transport equipment and miscellaneous manufactured articles.

“Penang’s economy is more export-orientated, and now there is a better demand for electrical and electronic goods,” he said.

The export sector is expected to improve with the recovery of the US economy and the weaker ringgit, he added.

“It is important that Penang provides the best environment to attract more investments. Penang is the main manufacturing and economic hub for electronic and electrical items. Bayan Lepas is already full. It is important to provide more space for industrial growth.”

Some of the projects and initiatives that are expected to contribute to this growth is the IT-BPO at Bayan Lepas, BPO Prime at Bayan Baru and Changkat Byram, south of Batu Kawan.

Other projects that will benefit Penang overall include the Penang Transport Master Plan, Penang Heritage Arts District – Ilham Penang at Sia Boey, Creative Animation Triggers at Wisma Yeap Chor Ee, and Komtar refurbishment. “All of these projects involve the private sector,” added Lim.

“The Penang Transport Master Plan (PTMP) is the catalyst to [turning Penang into a] metropolis, as it involves alleviating a lot of the problems locally in Penang, especially traffic congestion,” said Lim.

Expected to be completed in 2030, the RM27 billion project would include amenities such as trams for the heritage zones, LRT for the island and mainland, and water taxis.

Lim said Penang is on track to achieving its metropolis status.

“It is an ongoing process, and there is no deadline. Penang aims to transform into an international, intelligent city filled with life. To create a great metropolis, it has to be unique, and it has to attract people to want to live and expand the growth of the city,” he said.

NREC 2015 saw more than 250 participants from the banking, development, property and consultancy industries.

NREC is organised by the Royal Institution of Surveyors Malaysia (RISM) and co-organised by the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS).

Themed “Homes For Generations – Redefining Development Trends”, the convention highlighted concerns for the future of the real estate industry in Malaysia.

By Hannah Rafee / theedgeproperty.com 

Malaysian Islamic State militants: Dr Mahmud is forming South-East Asian terror bloc; Paris attacks !

Regional faction to unite different terror cells from Malaysia, Indonesia and Philippines

KUALA LUMPUR: Wanted Malay­sian IS militants hiding in southern Philippines are planning to form an “official” Islamic State faction in South-East Asia.

The region’s IS faction is also planning to unite different terror cells in Malaysia, Indonesia and the Philippines.

It will include among others the Abu Sayyaf Group (ASG) and other terror groups in the region.

Integral in the plan is former Universiti Malaya lecturer Dr Mah­mud Ahmad, who is high on the wanted list for his involvement with the IS along with his cohorts – sundry shop owner Mohd Najib Husen and former Selayang Muni­cipal Council employee Muham­mad Joraimee Awang Raimee, 39.

Bukit Aman Special Branch Counter Terrorism Division head Senior Asst Comm Datuk Ayob Khan (pic) said Dr Mahmud, also known as Abu Handzalah, was actively training with the ASG as well as taking part in terror operations in the southern Philippines.

“Intelligence indicates that he was involved in two bomb attacks against the Philippines’ army recently.

“We believe the ASG regards him highly as an asset,” he told The Star yesterday.

But SAC Ayob indicated Dr Mahmud was not content with just being involved with the ASG.

His ultimate goal is to officially form the South-East Asian IS.

“He has performed the bai’ah or the oath of allegiance on video but to form the South-East Asian cell of IS, Dr Mahmud has to travel to Syria and swear his allegiance in front of IS supremo Abu Bakr al-Baghdadi.

“We discovered through intelligence sharing that going to Syria is his priority now,” he said.

The same could be said for the different terror groups, especially the ASG, where the leaders had also sworn allegiance to Abu Bakr on video, added SAC Ayob.

“These groups are only seen as IS allies, and not an official IS cell,” he said.

He added that if Dr Mahmud’s plans came to fruition, it would spell even more danger to the region with the different terror groups operating under one banner.

“We are cooperating with other security forces in the region, especially the Philippines, to ensure that this will not occur.

“We believe that Dr Mahmud is trying different means to gain safe passage to Syria, including using fake identification documents and passports but we will remain vigilant,” he said.

SAC Ayob said his division was committed towards combating any terror element be it foreign or domestic.

“Our priority is intelligence ga­thering to ensure that we are on top of any development concerning militant groups,” he said.

“We are working with our counterparts in the Philippines to track down and capture Dr Mahmud and his accomplices.”

SAC Ayob, who has been dealing with terrorism matters for more than 20 years, said it was not uncommon for militant scholars or academicians to become leaders like Dr Azahari Hussin and Noordin Mat Top to name a few.

The trio – Dr Mahmud, Mohd Najib and Joraimee – have been on Bukit Aman’s wanted list since April 2014 following their escape to southern Philippines.

SAC Ayob urged anyone with information on militancy to contact the nearest police station or the counter-terrorism division at 03-2266 7010 or 011-2104 6850 or to e-mail CTD.E8M@gmail.com.

BY FARIK ZOLKEPLI The Star/Asia News Network

Ex-lecturer trained with al-Qaeda while studying

KUALA LUMPUR: Wanted militant Dr Mahmud Ahmad was apparently involved in militancy since the 1990s.

Bukit Aman Special Branch Counter Terrorism Division head Senior Asst Comm Datuk Ayob Khan said, at 36, the former Universiti Malaya lecturer was a veteran militant, having trained with al-Qaeda in Afghanistan in the late 1990s while he was studying in Pakistan.

“Once he became a university lecturer, he recruited and sent four Malaysians to Syria.

“Prior to joining UM, he used his position as a lecturer at a private college to lure students into militancy,” he told The Star yesterday.

He added that in January last year, Dr Mahmud managed to arrange a meeting between the region’s militant leaders to form the Daulah Islamiyah Asia Tenggara.

“He then followed up by meeting with al-Qaeda elements at a house in Shah Alam in April 2014,” he said.

Sources revealed that Dr Mahmud was responsible for instil­ling extremist ideology and convincing Ahmad Tarmimi Maliki to become the first Malaysian suicide bomber.

“Ahmad Tarmimi’s suicide bomb attack killed 25 special forces personnel in Iraq last year,” one source said.

Dr Mahmud along with his two accomplices – sundry shop owner Mohd Najib Husen and Selayang Mu­­nicipal Council employee Mu­­ham­­mad Joraimee Awang Raimee, 39 – fled to southern Philippines on April 22 last year.

It is learnt that the three were also responsible for smuggling three East Turkmenistan Islamic Movement fighters to southern Philippines.

Another source revealed that Mohd Najib could be described as Dr Mahmud’s right-hand man and closest confidant.

“Mohd Najib is also instrumental in arranging various meetings with other militant groups at the behest of Dr Mahmud,” the source said.

The source added that the sundry shop owner had vast experience in militancy and provided Dr Mahmud with the necessary links to other militant groups, including those from Indonesia. - The Star

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 Terrorists attack Paris !

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