By THE STAR
PETALING JAYA: While Friday the 13th is usually greeted with apprehension, property developers and buyers are eagerly waiting for what tomorrow may bring when Prime Minister Datuk Seri Abdullah Ahmad Badawi announces the Government’s new delivery system for the property sector.
Industry players and analysts are bullish that the latest initiatives to fast track the delivery system for property, if well implemented at the Federal and State Government levels, would have a far-reaching impact.
The measures can help to make Malaysia a favourite real estate hub for both local and foreign investors.
Sunway City Bhd senior managing director Datuk C. K. Wong believes that Malaysia’s real estate market could regain its vigour with more foreign investments flowing in.
To benefit from the positive environment, developers would have to put their best foot forward and design world-class products that would attract high net worth investors.
 |
|
Ng Seing Liong: The Prime Minister has been very pro-business
|
“The real estate and construction sectors are among the big contributors to the country’s gross domestic product. Putting in place more proactive and supporting measures will further spur their potential,” Wong said.
Developers who have over the years built up:
·A strong reputation and branding
·Good land-bank in much sought-after locations; and
·Well-planned projects will stand to benefit from the new environment. (See table)
Those involved in well-planned townships and high-end product sectors such as luxury condominiums in the Kuala Lumpur City Centre and exclusive gated residences in good addresses can look forward to strong sales and earnings.
Real Estate and Housing Developers Association president Ng Seing Liong said the property fraternity had been very encouraged by the proactive actions of the Government.
“The Prime Minister has been very pro-business and wants to ensure that it further develops into a more robust sector.
“A more active construction and property sector will have a big spill-over effect on the whole economy,” he said.
Among other things, the latest Government initiatives are expected to cut red tape for both developers and buyers.
Some of the concerns of buyers involve timely registration of property titles for loan applications, timely project delivery and issuance of certificates of completion and compliance for them to occupy their premises.
As for developers, the biggest hope is for the shortening of approval time for development plans and to have the various federal and state agencies work together.
After a two-year lull, things have started looking up for the property development fraternity.
Since last December, foreigners did not need to seek Foreign Investment Committee approval for properties priced from RM250,000. The scrapping of real property gains tax on April 1 had also boosted market sentiment.
The growing popularity of real estate investment trusts (REITs) also augurs well for the commercial property sector. REITs are also attracting more investment funds looking for exposure to Malaysia’s relatively untapped property sector.
Overall, industry observers concurred that whatever blueprint the Government chose to create a win-win situation for developers and buyers, its efficiency and success would lie in its implementation.
