MARKET P U L S E
May 2014 Business Development Dept.
Development Land Transaction
Item
Note
Vendor
Supreme Converger (wholly owned subsidiary of Tropicana Corporation Bhd)
Purchaser
Offshore Triangle Sdn Bhd (JV : Tropicana & Agile Property Holdings Ltd)
Area Tenure Purchase Price
3.138 acre Freehold RM 448,439,901 (RM 3,280 psf)
Source: theedgemalaysia.com 9 May 2014
Midfields by YTL, Sungai Besi • Despite the sluggish market, YTL’s launching of the Midfields (2) service apartments achieved 100% within 2 days . • The overwhelming response was due to its excellent location and competitive pricing. • Priced around RM 500 psf, it is one of the most affordable apartments within KL city area. • The earlier phase, Midfields (1) were sold around RM250 psf. Source: nst.com.my (2 May 2014)
Midfields (1)
Desa Waterpark
• 3 blocks of 21-storey service apartments. • GDV of RM400 million • 636 units with floor sizes of 1,044 and 1,152 sq ft. • Average selling price RM500psf. • Easy accessibility to KL- Seremban highway, Lebuhraya KL-Putrajaya and Lebuhraya Hubungan Timur – Barat.
Midfield
KTM Salak Selatan
Sunway Bus Rapid Transit (BRT)
• Alignment from KTMB Setia Jaya and future Kelana Jaya LRT Line Extension Station in USJ 6. • Cost RM 453 million for the 5.6 km dedicated track. • 7 halts with Park-n-Ride facilities and disabled friendly features Eco-friendly buses • Serve a population of over 500,000 in Bandar Sunway and Subang. • This project is be carried out by Syarikat Prasarana Negara Berhad and Sunway Berhad on a Public Private Partnership initiative . • Expected to be operational in May 2015
Meru Perdana, Ipoh 2S link house with 34 ft width
• Emkay’s Meru Perdana strategy of competing in the crowded Ipoh’s market. • Lot size 34 x 50 feet (probably the only one in the market with such width). • Built up 2,375 sq ft. • Launching price RM 370,000 in 2012. • Well received by the market. • Recently completed and currently selling around RM400,000.
Foreigner Purchase of Property
Minimum Price : Property Purchase by Foreigners Item Min. Price
Selangor
Kuala Lumpur
RM 1 mil
RM 1 mil
Pulau Pinang • RM 1 mil • RM 2 mil
Johor RM 1 mil
Nil
Nil
3% on transacted price
• RM 500,000 (Strata)
• RM 1 mil
(landed property in Island)
State Levy
Melaka
Medini Nusajaya • Exempted • RPGT exempted
(landed)
2% of transacted price or RM20,000 whichever is higher
2% of transacted price or RM20,000 whichever is higher
Nil
Reducing Balance and Flat Interest Loans
Reducing Balance Method
Flat Interest Rate Method
• Mainly used to calculate the interest payable for housing, overdraft (OD) facilities, and credit cards. • Pay interest on the remaining loan balance. • A reducing balance interest calculation formula can be represented like this: Interest Payable per Installment = Interest Rate per Installment * Remaining Loan Amount
• Mainly used to calculate the interest payable for personal loans and car / hire purchase loans. • Pay interest on the entire loan balance throughout the duration of the loan. • Flat interest rate calculation formula can be represented like this: Interest Payable per Installment = (Original Loan Amount * No. of Years * Interest Rate p.a. ) / Number of Installments
Comparison in Monthly Instalment Assumption Loan : RM100,000 Tenure : 10 years Interest : 5% per annum
Item
Reducing Balance
Flat Interest
Monthly Instalment
RM 1,060
RM 1,250 Source: loanstreet.com
Public Housing - Singapore • All public housing in Singapore are undertaken by the Housing Development Board (HDB). • For new launchings, HDB is using Build-To-Order (BTO) approach. • BTO is a responsive system offering flexibility in location and timing for flat buyers. • Eligible buyers (planning to shift into a new HDB apartment in the near future) can apply for apartments in their preferred location from the specific sites launched. • HDB will only construct if there is sufficient demand for a particular development (refer flow chart)
Selling Price: 3BR Apartment District
Source: www.hdb.org.sg
Average Price
Woodlands
$300,000
Jurong West
$320,000
Ang Mo Kio
$345,000
Bedok
$332,000
Bukit Merah
$393,000
Do you know that ….. Residential Sales Primary vs Secondary Transactions Year
Units
Percent
2009
• •
Primary
25,898
12.2
Secondary
185,702
87.8
TOTAL
211,600
2010 Primary
29,162
12.6
Secondary
197,712
87.2
TOTAL
226,874
2011 Primary
55,757
20.7
Secondary
214,044
79.4
TOTAL
269,789
2012
Primary
60,241
22.1
Secondary
212,428
77.9
TOTAL
276,669 Source: Jabatan Penilaian & Perkhidmatan Harta
Many would have thought that new properties (primary transactions) made up the majority of total residential transactions. Figures from NAPIC indicates otherwise. Approximately 80% of annual residential transactions are from the secondary (sub sale) transactions.
Ideas …
Bathroom
Living
Bedroom
Entry Foyer
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Dining / Kitchen Project Name: Mighty Mouse Studio Designer: Nicholas Gurney Location: Wooloomooloo, Sydney Area: 27 m² (290 ft²) Source: homedsgn.com