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SITE PROGRESS: GEM Residences (June 2021)

Property News/ 20 June 2021 No comments

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About GEM Residences

GEM Residences, a commercial development by Belleview Group at Prai, Penang. It is part of the company’s 6 hectares mixed development along Jalan Baru, diagonally opposite Megamall Penang. Next to it will be the upcoming largest mall in the northern region – GEM Mall, the tenant mix include SOGO (first and largest departmental store in the northen region at 212,000 sq.ft.) and a supermarket (largest at 50,000 sq.ft.).

Find out more about GEM Residences

Register your interest here

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(This information may be used by the developer or their appointed agent to initiate follow-up communications with you on the project.)

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Normal for investments to drop after 2-year spike

Property News/ 18 June 2021 No comments

penang-investment

The recent sharp drop in investments flowing into Penang compared to the years before has been expected as part of a “consolidation” trend, a state investment promotion agency said.

InvestPenang said after two years of high investments pouring in, including 2019’s historic RM16.9 billion and 2020’s RM14.1 billion, this year’s RM1.1 billion in the first quarter “was perfectly normal”.

It said it expects the state to hit RM5 billion in investments for the whole of 2021.

“The first quarter’s performance is consistent with Penang’s investment historical trends, whereby a consolidation could happen, after one to two years of investment spike,” InvestPenang said in a statement.

The agency said despite the drop on the investment front, Penang’s exports came up tops in the country, with RM84.9 billion in the first quarter of this year, an increase of 22% year-on-year.

It said the export numbers represented nearly half of the country’s trade surplus of RM28.2 million.

“Underpinned by a healthy pipeline of investment enquiries that may materialise beyond this year, InvestPenang is targeting RM5 billion in manufacturing investments for 2021,” it said.

Penang was conspicuously missing from the top five states for investment figures released by the Malaysian Investment Development Authority (Mida) in Q1 this year, prompting speculation of a slump.

The state’s manufacturing sector, largely in the electrical and electronic sector, has been dubbed the Silicon Valley of the East and has often come up tops in the country’s investment figures.

Penang came in sixth place this year in terms of the first quarter Mida-approved investment figures in the manufacturing sector. Kedah took pole position this year at RM42.4 billion, followed by Sabah (RM4.3 billion), Selangor (RM4 billion), Melaka (RM3.4 billion) and Johor (RM1.7 billion).

Chief Statistician Mohd Uzir Mahidin revealed on June 9 that Penang, among five other states, led the country’s exports. The five states recorded an 80.5% share of the whole of last year’s RM184.8 billion in exports.

Penang recorded 31.8% in exports, followed by Johor (20%), Selangor (18.9%), Sarawak (6.7%) and Perak (3.2%).

Source: FreeMalaysiaToday.com

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Main stumbling block for Malaysians hoping to buy house

Property News/ 17 June 2021 2 comments

market recovery

The failure to secure loans and difficulty in managing monthly cash flow have proven to be the main stumbling block in many Malaysians’ ability to own property.

Factors such as quality, size and location of the property also determine the take-up rate, according to experts.

Citing a Bank Negara Malaysia report, National House Buyers Association (HBA) secretary-general Datuk Chang Kim Loong said the rate of increase in prices of property has far outstripped wage increments since 2012.

“Consequently, prevailing median house prices are beyond the reach of most Malaysians,” he told theSun.

“HBA has warned for years that prices are rising too rapidly, but our message has gone unheeded,”
he added.

However, for people to whom affordable homes are already out of reach, the next option is social housing.

According to the criteria outlined by Housing and Local Government Minister Datuk Zuraida Kamaruddin, an affordable home must have a built-up area of at least 900sq ft (excluding the balcony), priced from RM150,000 to RM300,000 (in both rural and urban areas) and located in areas with good connectivity with public transport and other amenities.

However, not many affordable housing schemes, especially in the Klang Valley, Selangor, Penang and Johor, meet all the criteria,
said Chang.

This leaves many buyers without a choice but to opt for social housing.

These are schemes that are usually managed by state governments, with a built-up area of less than 800sq ft and priced below RM100,000.

Chang said Singapore’s Housing Development Board (HDB) apartments are a reflection of the republic’s success in providing affordable housing to its population.

By 2019, a total of 81% of the city state’s population were already living in HDB apartments.

However, unlike Singapore, where there is a singular authority to enable a more systematic approach, housing and land matters in Malaysia come under the purview of the states, he said.

“This is further complicated by the different requirements in each state, not forgetting the quotas and discounts for bumiputras.”

For those who find affordable homes are still out of reach, there is no shortage of social housing schemes in the country, said Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia research exco Sulaiman Akhmady Mohd Saheh.

“Schemes such as the PR1MA, Rumah Mesra Rakyat and people’s housing programme offer inexpensive homes targeted at those in the B40 and low M40 groups.”

However, many Malaysians are also not opting for such homes,
he said.

“Apart from the cost, there are other factors to consider, such as quality, size, layout, location, as well as distance from amenities and workplace.”

Sulaiman said under the United Nations Centre for Human Settlements charter, an affordable home would also have to meet these requirements.

However, affordability remains the biggest issue.

A home is considered affordable if it is priced at or below three times the median annual household income of the potential buyer,
added Sulaiman.

In Malaysia, the ratio was 4.9 in 2020, according to research by the Khazanah Research Institute.

Sulaiman also cited examples of how the problem has been addressed elsewhere.

In Los Angeles, an initiative called the Motel Conversion Ordinance gives city authorities the right to convert motels into public housing for the homeless.

He said Malaysia could have a similar law that will enable the government to allow the conversion of under-utilised or vacant buildings into apartments.

However, the appropriate legislative steps will have to be taken to enable such initiatives in the country.

Source: TheSunDaily.my

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Everything about certified real estate negotiators & agents (Part 2 of 2) – Benefits and commission rate

Readers Column/ 16 June 2021 No comments

property agent

By Anders Ong

Types of Agency Appointment We Can Arrange with Real Estate Agents

  • Exclusive Agents: Appointment of one real estate agency to market and sell the property exclusively. No other agency can solicit from the owner to sell, only can direct co-agency to the appointed agency. Landlord/Vendor can’t sell/rent the property themselves to buyer/tenant.
  • Sole Agents: One real estate agency will be engaged to market and sell the property. Landlord/Vendor can sell/rent the property themselves to any buyer/tenant and pay commission based on an agreed amount.
  • Joint Agency: More than one real estate agency is appointed to market the property and only those whom manage to close the deal get paid. The number of agents appointed is limited to two to three, and all agents are aware of each other’s appointment.
  • Ad-Hoc Agency: Clients may engage an unlimited number of estate agency on an ad hoc basis and fees are paid only upon successful conclusion to the successful estate agency transaction also known as open listing.

Benefits of Appointing Real Estate Agency

  1. Your Hire Professionals to Work – The right and experienced property agent will be of great help in securing client in the fastest, shortest and quality client for your property. They may set the right price in getting the property marketed, advertised in multiple ways, screen potential client, and conduct the negotiations on owners’ behalf saving time and headache.
  2. Their Services Are Monitored & Regulated – A Real Estate Agent (REA) is bound by codes of conduct and strict laws under the Valuers, Appraisers and Estate Agents Act 1981 (Act 242). Any wrongdoing by the REA or firm will be subjected to BOVAEA’s disciplinary action which includes fines, suspension or deregistration.
  3. Knowledgeable & Educated – Every property agent may have different level of knowledge of property market and educated about all the whole transaction process. Clients could save up time by appointing an agent to assist in the whole process and getting advice from them.
  4. Price Guidance – Property agents are not allowed to advice on the value of property for sales but they can show the market prices of property on sales and advice on rental rate for more efficient market matching and transactions.
  5. Professional Networking & Wider Marker Coverage – Appointing one real estate agent exclusively may not mean it will limit the customer base as most people thought one agent may have less client compared to give open listing to all agency. Because one agency may have networking with other agency or we call it co-agency and still we have the same coverage of client and more control of the pricing.
  6. Negotiation Skills & Confidentiality – Good agent could negotiate a deal well for the clients in getting the best rate or offer they wish to have and not just passing message between clients and customers. They can negotiate a higher rate for their vendor/seller and they can negotiate lower for their buyer/tenants. Besides, they are trained to represent their clients and do not reveal their client’s confidential information from competing parties.
  7. Paper Work Handling & Marketing – Property agent may assist in marketing and advertising the property through a few mediums such as banner, flyers and online platform; besides, getting every documentation done for their clients including booking form, invoice, official receipt, tenancy agreement and inventory records. Notwithstanding that, they may also assist in arranging client and connecting them with solicitors in preparing the sales and purchase agreement.
  8. Save Time & Energy – Appointed real estate agent will handle the whole process from staging of property, advertising, filtering serious customers, viewing arrangement, negotiating, closing, documentations and finalizing the transactions so clients don’t need to make those tedious arrangement themselves.

Real Estate Agents Commission Rate

Sales or Purchase

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Rental or Lease

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Myth & Truth

  1. Real Estate Negotiators Make Easy Money – Truth is real estate negotiator had spent a lot of time in sourcing for client and put a lot of effort to make sure the vendor property is in the market reaching to clients. The income they get is appropriate to the time they invested in their work and not every client wanted to pay full commission so not every agent is having easy money as it seems.
  2. Real Estate Negotiators Advertise Freely – Many clients were of the belief that realtors advertise and work are free of charge and realtors do not incur any cost in advertising. Truth is most advertising platform the realtor uses their time to strategize and edit on the web are charged a fees and they may need to pay more to make sure their clients property is on the top views and even banner they put on the property are costly if of certain sizes.
  3. Real Estate Negotiators Have Fixed Income – Every or most property agent are under contract for service and they do not have basic salary to sustain their monthly expenses like most job in the market.

READ MORE: Everything about certified real estate negotiators & agents (Part 1 of 2) 

Anders
Anders Ong – PEA, Property Investor, Writer, Speaker, Real Estate Coach, Property Market Analyst & Author of Back To Property Investment To Create Wealth

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