Revision of property gains tax 'a perfect Christmas gift"

Friday December 25, 2009

Revision of property gains tax 'a perfect Christmas gift"

By EDY SARIF

The tax amendment might spur buying interest

PETALING JAYA: The amendment to the real property gains tax (RPGT), which will be reimposed next year at 5% but now applicable only to transactions involving properties sold within five years from their purchase, is "a perfect Christmas gift" which will lift the local property market, analysts said.

Prime Minister Datuk Seri Najib Tun Razak announced the amendment to the RPGT on Wednesday, where the 5% tax would now only be imposed on properties sold within five years of the date of purchase.

The Government had previously wanted to impose the RPGT across the board, irrespective of the number of years of ownership, as announced in Budget 2010.

The premier had said the decision would cause the Government to lose about RM200mil in revenue, but the move was made following appeals from the Federation of Chinese Associations of Malaysia (Hua Zong) and the business sector.

The Government wanted to see stronger growth in the property sector next year in making the amendment, according to Najib.

Kenanga Research said the move to limit the RPGT to the five-year ownership ruling was definitely good news, adding that it would spare non-speculators from being penalised.

It noted that this would allow those holding properties for more than five years to sell their homes and recognise 100% of the capital gains.

"In turn, this spurs genuine property activities, which are supported by the country's fundamentals, as opposed to speculative activities," the research house said in a report.

Analyst Mervin Chow of OSK Research agrees that the amendment to the RPGT has ensured a much fairer policy as the 11th hour change in policy will benefit long-term property investors.

"(The amendment to the RPGT) is reflective of the main objective of having the RPGT in the first place, which is to rein in excessive speculation in the property sector," he said.

ECM Libra Investment Research
said the move was a "perfect Christmas gift for the property sector."

"This will provide a much needed relief for the property sector as it sends an affirmative signal that the Government will adopt an accommodative stance to support growth in the property sector," it said.

With the relaxation of the RPGT, ECM said buying interest might pick up, especially among those looking to upgrade their property ownship.

Real Estate and Housing Developers' Association Malaysia (Rehda) president Datuk Ng Seing Liong said the property market would benefit from the amendment, and that it would have "a very significant stimulating effect" on property investments by both foreign and local investors.

"This can be acknowledged by the fact that the market reacted positively to the RPGT waiver in 2007 where increased sales and enquires were recorded," Bernama quoted Ng as saying.

Propery player Naza TTDI also supported the amendment to the RPGT.

"With this new RPGT measure, we are confident the market will respond positively and this will help propel Malaysia's property market among the other countries in the region,"
Bernard Yong, a senior marketing manager with Naza TTDI, told StarBiz in an email reply.

Deloitte Malaysia country tax leader Ronnie Lim said the Government had done the right thing in imposing the RGPT only on properties sold within five years from the date of purchase.

"Prices of some property development companies' shares have risen as the market showed its approval," he noted in a statement.

But not everyone is excited about the RPGT amendment, with Regroup Associates Sdn Bhd executive director Paul Khong saying if there were any impact at all, it would be quite nominal. He noted that the move would basically encourage long-term investments in the sector.

"The RPGT has already served its original purpose of curbing speculation by holding to a five-year period. This is a long time and many short-term investors will continue to shy away from the market accordingly or weigh this into their purchase consideration," he told StarBiz in an email reply.

The re-imposition of the RPGT has resulted in "the Malaysian property sector becoming slightly less attractive regionally as investors still have much choice locations to invest their money," Khong said.

He reckoned that investors, especially foreign investors, would like to see a longer term and more consistent property policy, adding that recent policy changes pertaining to the property sector were short term and too sudden.

"Ever since Budget 2010 was announced, some property owners had been working feverishly to dispose of properties before Jan 1, 2010, the date when (the original) RPGT would be re-activated with tax levied on gains on disposals irrespective of the period of ownership," he said.

A property buyer, who declined to be named, agreed, saying he had reaped the benefit of the RPGT before it was amended, as sellers were willing to sell at lower prices on the assumption that the RPGT would be implemented in full.

"I managed to buy an old aparment for RM160,000 although the market price was RM180,000 because the seller wanted to sell it fast, before the reimposition of the (original) RPGT on Jan 1," he said.

Inserted from <http://biz.thestar.com.my/news/story.asp?file=/2009/12/25/business/5366341&sec=business>

Malaysia’s Optimistic outlook for 2010 - December 02 News

Malaysia's Optimistic outlook for 2010

by Pete Wong

Developers will be happy to see the crisis-filled year coming to a close and hoping to get back into the swing of things in 2010 and ahead. There could be a temporary lull period during the traditional Lunar New Year festive season in mid-Feb 2010 when the market will be quiet but the pace is expected to pick up right after. Market confidence is returning and all indicators seem to point to a recovery to a certain extent.




The Malaysian government has estimated a Gross Domestic Product (GDP) growth of 3.2 per cent for 2010 and most analysts agree this is achievable. Malaysian Rating Corp Bhd (MARC) has given its own 3.6 per cent GDP growth prediction after taking into account some of the expected weaknesses in the US economy, which will affect Malaysia’s trade performance.



But is it too early to pop the champagne? During the recent Asia-Pacific Economic Cooperation forum (Apec), ministers who attended the meeting mostly agreed that the global economic crisis was far from over and the expected upturn was just a respite rather than a recovery.



Confidence returning

Despite the uncertainties, there is a lot of optimism, especially among local investors. "Market sentiment is on the rebound. There is good liquidity in terms of transactions and this should augur well for the property market next year," said Andy Khoo, Sunwaymas Sdn Bhd’s executive director.



"The economy is set to climb back on the growth path which will work well for property demand. We expect to see more sales activities and transactions over the next 18 to 24 months, as Malaysia’s GDP is expected to rise to 6 per cent in 2012," said Lai Voon Hon, Ireka Development Management’s president and CEO.



When YTL Land launched their Lake Edge Pavilion Terraces last month, all 30 units of the double-storey homes were snapped up within hours. Buyers were seen streaming in at 6 am and by mid-morning, the developer was ready to close the shutters. The units were priced from RM780,000 and ready for completion by end-2011. Sales were, of course, helped by the fact that the developer has a reputation in offering award-winning designs and a history of looking after the community’s well-being even after the units are delivered.



Over at Mont Kiara, the upscale One Kiara condominium project continues to attract attention despite the fact that there is no official launch yet. "We had a 70 per cent take-up for Phase One and we are now talking to an institutional investor to take up the bulk of our available units. Once that is finalised, we should have a few more units available for the public. Our selling price starts at between RM600 to RM650 per sq ft and early birds need to pay only 10 percent and not have to worry about the rest until delivery," said Chris Low, Monday-Off Development’s managing director and project owner.



No mad rush

Property prices in Malaysia, especially within the prime Kuala Lumpur area, are unlikely to see a huge jump in values like what is happening in land-scarce Singapore and Hong Kong recently. Malaysia has more than enough landbanks for developments. At a recent media briefing, Sunrise Bhd’s executive chairman, Tong Kooi Ong said: “It’s a myth to say there is insufficient development land in the Klang Valley (Kuala Lumpur)." The company itself has about RM1.5 billion worth of property projects to launch in the near- to mid-term and about 40 acres of land in the Mont Kiara area alone. "Our current landbank is sufficient to last us eight more years," he added.



Sunrise Bhd plans to launch another three projects in Kuala Lumpur within the next few months starting with the MK28 project in Mont Kiara. MK28 comprise 460 condominium units ranging in size from 2,000 to 3,000 sq ft.



Even if there is a surge in speculative buying, the ample supply of units on the market will put on a check on rising values. Within the Kuala Lumpur City Centre (KLCC) area alone, there is an existing supply of 5,700 units and a further 5,800 units are expected to come onstream within the next few years. "It is clear that there will be an oversupply as the year comes to an end and 2010 rounds the corner," said Robert Ang, Savills Rahim & Co’s managing director.



RPGT

What came as a surprise for many, however, was the government’s recent announcement to re-impose a Real Property Gains Tax (RPGT) with effect from January 1 next year. Although the tax amount of five percent is not huge, many in the industry thought that the move was ill-timed as it may hinder the market’s recovery from the economic crisis. "It may dampen property investors’ sentiment and curb some level of speculative buying," said Tong.



"It came as a surprise to us, as the government had suspended RPGT merely two and half years ago to give the property sector a boost and attract foreign purchasers. The re-imposition of RPGT could have a dampening effect on the property development sector, reflecting fears by international property buyers of more RPGT increases in future years or frequent changes in real estate policies in Malaysia," said Lai.



An irate property owner even wrote to the press asking, "How are we to be taken as a serious place for investment when policies keep changing at the whims and fancies of the powers-that-be?"



Some feel that the five percent tax may just be the beginning for more surprises in future. Prior to the exemption of the RPGT in April 2007, tax on gains from property transactions was on a progressive basis from zero to 30 percent depending on the holding period of the property. "We think that in the long term, the original scale rates of 30, 20, 15 per cent and so on, will be coming back," said Dr Veerinderjeet Singh, managing director of Taxand Malaysia.



"It is too early to see the impact of that five percent tax but it is a psychological barrier, particularly for those who entered the market in 2006/7 when market was at its peak," said Paul Khong, Regroup Asociates’ executive director. "Some of them will not be making money and they are already upset. With this flip-flop policy, they may just take their money and go elsewhere to get a better return," he added.



But not everyone is worried about the tax. "The government needs to have its source of revenue and I think the five percent tax will not have a huge impact. Property owners will just have to adjust their selling prices to cover the tax. However, it may have a bigger impact on lower-end properties where margins are already squeezed," said Low.





From a wider perspective, Malaysia may need a few more years to fully recover. As for property values, Kuala Lumpur may never be on the same level with Singapore or Hong Kong for several reasons. The average monthly take-home income of a Malaysian worker is much lower by comparison. Crime, poor public transportation and haphazard city planning, are perpetual issues crying for a solution. No matter how high-tech, environment-friendly or great-looking a building is, its property value is still determined by its location and living environment. Factors like how safe is it to walk the streets at night or how easy is it to take a taxi home are still important questions that the discerning foreign property investor will ask. The Malaysian government still has a lot of work to do in order to create the right environment for property values to appreciate and for foreign property investors to come in.



Projects update



For those looking for an upscale freehold condominium unit, Kenny Heights Sanctuary, located about 15 minutes’ drive from Mont Kiara, may be the answer. The developer, KH Land, will be throwing in signature gardens by an award-winning landscape designer, a sky lounge, clubhouse facilities and even a private spa, among other amenities. There will be 599 units ranging in size from 1,859 sq ft to 3,748 sq ft and priced between RM1.3 to RM5 million.



Those who prefer privacy in a low-density freehold condominium project might be interested in Lumina Kiara. Located at Mont Kiara, the development offers only 104 units within a split-tower of 23 and 29 storeys. Each floor has between four and six units only. Another cluster of 12 semi-detached, three-storey houses are connected to the condominium. The developer, ECH Development is currently selling the units at between 650 and 750 per sq ft. They are also dangling a ’10/90’ sweetener which means you pay only 10 per cent downpayment and zero-interest for the remaining 24 months. Construction work began in 2007 and the project is expected to be completed by end-2010.



Meanwhile in the leafy Taman Melawati suburb at the north-end of Kuala Lumpur city, developer Mutiara Goodyear Development plans to launch Melawati Nadayu, a high-end residential township comprising 142 bungalow units and 46 superlink units in 2010. The project sits on a 32ha site on a scenic hill area and the developer has already spent RM70 million to prepare the site.



Inserted from

One KL

ONE KL

ONE KL goes by the intriguing, self-explanatory tagline of "94 apartments, 95 pools". A first in the world, private 'infinity' swimming pool in each apartment. Sunny communal swimming pool with views of the Petronas Twin Towers. One KL - a signature condominium project that have raised standards of residences in Kuala Lumpur. Close proximity to the iconic Petronas Twin Towers, KLCC Convention Centre, Suria KLCC Shopping Mall and the Mandarin Oriental Hotel. A fully fitted luxurious home with a private swimming pool - truly one of its kind in town Project : One KL Location : Kuala Lumpur Property Type : Condominium Tenure : Freehold Built-up Area : 3,285 sq.ft. Facilities Concierge, restaurant, outdoor dining, bar, multi-purpose room, function room, gym, swimming pool, reflective pool, pool deck

U-Thant Residences for rental 3,983 sq ft

Built up-: 3,983 sq ft

Fully furnished (to be fitted)

Exclusive area, near emabassies

Rental per month RM15,000

Please call SC Chan at 012-6382883 for viewing

2Hampshire for Sale

2 HAMPSHIRE

2 Hampshire is a low density development comprises of only 93 units of condominium along Persiaran Hampshire, Off Jalan Ampang. This modern contemporary building appeals to many investors who has miss the opportunity to own a place here. There are only 2 units per level and each private level is served with 2 lifts. Beneton is a reputable developer who has won the Fiabci Award for Best High Rise Building in 2007 for their development called, "Stonor Park", a super high end condominium in the KLCC enclave.

For Sale,  2Hampshire Condo
Built-up : 2,356 sq ft
3+1 rooms
5 baths
2 car parks
Partly Furnished
Asking Price RM 2,028,000

Please call 012 -6382883 or  email sqfeet33@gmail.com

Photos as below:

Suria Stonor 3,303 sq ft for Sale

Built-up : 3,303 sq ft
4+1 rooms
5+1 baths
3 car parks
Freehold
Asking Price RM 2.65 mil

Please contact SC Chan +6012 638 2883
or email to sqfeet33@gmail.com

Suria Stonor 3,310 sq ft for Sale

Built-up : 3,310 sq ft

4+1 rooms

5+1 baths

3 car parks

Freehold

Asking Price RM 2.65 mil

Please contact SC Chan  +6012 638 2883 or email to sqfeet33@gmail.com

Suria Stonor for Sale - Type A1 (3,304 sq ft)

Large Built-up :3,304 sq ft
4+1 rooms
5+1 baths
3 car parks
Freehold
Asking price : RM2,650,000

Please call +6012 638 2883
or email to sqfeet33@gmail.com

Suria Stonor

Suria Stonor is an exclusive condominium development that combines the space and ambience of a bungalow with all the conveniences of modern living.

Located in an oasis of serenity in the heart of the city within the Stonor Enclave, Suria Stonor offers some of the most generous living spaces within the vicinity of the Kuala Lumpur City Centre. Each of its 138 freehold residences, comprising triplex penthouses, duplexes and condominiums, offers a built-up that ranges from 3,000 sq. ft to over 8,000 sq. ft.  

As we luxuriate in the generous, airy rooms, our experience is enhanced by the unique “Garden in the Sky” concept that surrounds us with the beauty of nature.

From the stunning 35-metre ( 100 ft. ) cantilevered swimming pool to the lush tropical landscaping, the design of the public areas and facilities of Suria Stonor add a resort-style ambience to this urban sanctuary.

Nowhere in the city is this more evident than the city centre, made world famous by the soaring Petronas Twin Towers. Here the old and new, east and west blend harmoniously, even joyously.

Kuala Lumpur is a modern city with a multicultural heart. While the city and its denizens have embraced the global worldview of the 21st century, it remains true to its colourful melting pot origins.

Today, the Stonor Enclave remains one of the most prestigious addresses in Kuala Lumpur with a neighbourhood that comprises stately royal houses, embassies and official residences that still evoke the romance of bygone times. Here is where quiet streets are shaded by ancient trees. Where airy bungalows once offered refuge from an uncertain world and even more uncertain climate. Where the air is rich with the grace and elegance of a bygone era.

 Common features and facilities include:

• Extensive soft & hard landscape gardens.

• 100-ft semi-cantilevered main pool.

• Lounge pool.

• Children’s pool.

• Sun deck.

• Sauna and steam room.

• Full-glass gymnasium overlooking main pool.

• Multi-purpose hall.

• Convenience store.

• Children’s playground.

• Barbecue facilities.

• Guest apartment.

In addition, for the convenience of residents we have included:

• Private lift lobby to each residence.

• Waiting Lounge in each wing.

• Separate guest lift.

• Minimum three parking bays for each residence.

• Additional storage at car park area (Optional).

• 24-hour security.

• Concierge service.

Hampshire Res. - 2 bedrooms (1, 065 sqft) for rental (NOW TENANTED)

View of living room

Bedroom

Asking rental RM5000 per month

Please call +6012 6382883 or email to sqfeet33@gmail.com

Hampshire Residences.Hampshire Residences.Hampshire Residences.Hampshire Residences.Hampshire Residences.Hampshire Residences.

231 TR Floor Plans

Type A (975 sf) (3r2b)

Type B (834 sf) (2r2b)

Type C (552 sf) (2r1b)

Type C-1 (552 sf) (2r1b)

Type C-1A (552 sf) (2r1b)

Type D (960 sf) (3r2b)

Type E (773 sf) (2r1b)

Type F (498 sf) (1r1b)

Type G (1,049 sf) (2r2b)

Type H (1,088 sf) (3r2b)

Contact : SC Chan at +6012 638 2883
Email sqfeet33@gmail.com



231TR.231TR.231TR.231TR.231TR.231TR.231TR.231TR.231TR.231TR.231TR.231TR

231 TR

231 TR Serviced Suites, Bukit Bintang

Located along Jalan Tun Razak’s prestigious neighborhood and embassy row, 231TR service suites is the new elite address in Malaysia’s premier city Kuala Lumpur. Within walking distance to KLCC and Bintang Walk, 231TR offers an exciting challenge amid escalating property prices that have already breached RM1,000 per square feet around this location.

231 TR comprises of 1 building block with 20 floors on 1 acre land housing 195 residential units measuring from 498 sf for studio apartment to 3 bedrooms apartment at 1,088 sf. All residential units are located on the 7th – 20th floor of the building, with 15 units per floor. Other floors are utilized for parking bays and common facilities. There are 10 layout options available. Each unit is equipped with all built-in kitchen cabinets, wardrobes, air conditioning, water heating, fully furnished bathrooms, appliances in kitchen, and quality finishes such as marble and engineered timber.

This freehold low density development offers dynamic views of the KLCC Twin Towers and the verdant green of the Royal Selangor Golf Club. Few other developments can boast having the best of both worlds — the bright lights of KL’s best shopping, dining and entertainment haven and the serene golf green to soothe nerves frayed by frenetic city living.

Against this backdrop of city and country, 231TR embodies the essence of urban living. There is the choice of a city that never sleeps or a refuge amid lush greenery. There is the safety of tight security, an indoor pool and jacuzzi for relaxation and a gym for sweat-outs. Fine finishing and well thought lay-outs to meet your needs and desires.

231TR is the prestigious, landmark development of Urban Delta Sdn Bhd., a sudsidiary of YWC Engineers & Constructors Sdn Bhd. Managing Director Yip Loong Heng heads this engineering construction company that is involved in multi-million ringgit projects throughout Malaysia. Established in the fifties, the company is poised to diversify into high-end property development.

Property Details•Name: 231 TR (also known as 231 Tun Razak)

•Address: Jalan Tun Razak, Kuala Lumpur

•Developer: Urban Delta (a subsidiary of YWC Group)

•Completion Date: End 2008

•Type: Condominium

•Tenure: Freehold

•No. of Blocks: 1

•No. of Storey: 20

•No. of Units: 195 units

•Land Area: 1 acre

•Built-up: 498 sf to 1,088 sf

•Launch Price: RM600 psf

•Subsale Price: RM780 psf

•Rental: RM4.50 psf

Layouts•Type A (975 sf) (3r2b)

•Type B (834 sf) (2r2b)

•Type C/C-1/C-1A (552 sf) (2r1b)

•Type D (960 sf) (3r2b)

•Type E (773 sf) (2r1b)

•Type F (498 sf) (1r1b)

•Type G (1,049 sf) (2r2b)

•Type H (1,088 sf) (3r2b)

Facilities•24-hour security with CCTV surveillance

•Smart access and intercom system

•Swimming pool

•Jacuzzi

•Gymnasium

•Meeting room

•Cafeteria

•WiFi broadband ready

•Launderette

•Optional housekeeping services

For more information on sale & rental please call SC Chan +6012 638 2883 or e-mail sqfeet33@gmail.com

U-Thant Residences for Rental (fully furnished)

UNITS FOR RENTAL AT RM 3.50 PSF


Available units :

3,983 sq feet

4,306 sq feet

7,395 sq feet (duplex)

Low density
Fully furnished
Exclusive ; presitigious condo close to embassies

U-Thant Residences

U-Thant Residence (also known as U-Thant Residences) is a low density freehold condominium. It stands as an exclusive residential within Jalan Ampang embassy enclave along Jalan Madge.

U-Thant Residence only comprises 77 units on 2.5 acres plot.

•Loacted near embassies such as Embassy of the United States of America, British High Commission, Embassy of the Republic of France, Embassy of Spain and Embassy of Russian Federation, Royal Thai Embassy, Embassy Of The People’s Republic Of China, and The People’s Bureau of The Great Socialist People’s Libyan Arab Jamarhiriya.

•within 2 kilometers away from KLCC which offers world class shopping experience, posh restaurants and modern park. If you are a sport enthusiast, you can find Raintree Club, Selangor Polo and Equestrian Club, and the Royal Selangor Golf Club.


Facilities

•Barbecue area

•Club house

•Covered parking

•Playground

•Sauna

•Swimming pool

•Wading pool

•24-hour security

The Meritz - 2 + 1 room for rental

View from master

Living room

Fully equipped with kitchen oven, microwave, hood & hob

Built-up - 1,130 psf

Fully furnished (Modern theme and furniture)
2+1 Room
High Floor
View to appreciate

Asking rental only RM6,800 per month

Please call SC Chan at 012 6382883 for viewing