News

More retirees opt for 'adventure tourism' in Asia

Sarah Kendell — 21/03/2011 10:14:00

A trip around Europe, a cruise through the Caribbean - these luxury, aspirational destinations used to be the staple of retirement dreams for most of the middle class in the English speaking world. Now, with more money and time to spare and having often gotten these more traditional destinations out of the way earlier on in life, retirees are venturing further afield - and the tourism industries of developing Asian nations like India, Thailand and Vietnam are benefiting.

With interesting cultural offerings, good climate and cheap living costs, these destinations have always proved popular with backpackers, and as a result many adventure tour companies have sprung up to offer package deals, particularly in the early noughties as the trend of the 'gap year' took hold. But as one London-based tour operator told Relax News, it's the older generation who are now providing the base of the demand.

"I started my company to take young professionals abroad for adventurous holidays, but then realised I was getting calls from their parents", says Original Travel's Tom Barber, whose company runs expeditions in India, Myanmar, Cambodia and Thailand. "People jokingly call them SKIers, which stands for Spending the Kids' Inheritance."

In 2009 alone, over 100,000 British citizens between 55 and 64 travelled to India, while 51,000 went to China. Whilst not usually eligible to stay at youth hostels, but often seeking a more genuine experience than a cloistered five-star hotel, the influx of retiree tourists to Asia has created a new demand for niche holiday accomodation. "Older people are very discerning about seeking out special experiences, and combining those with quality accomodation and food", said Jamshyd Sethna of tour company Lakhti Himalaya, which provides guests with luxury accomodation at isolated lodges in India's famous mountain range.

Sean Tipton of the Association of British Travel Agents agreed that the tide was turning amongst mature travellers in favour of developing Asian nations. "Most people aged 55 and over would have been looking at a coach trip around Europe 30 years ago", said Tipton. "We have seen fundamental change since then, with people who have retired but refuse to be pigeonholed."

Rain dance in Malaysia

Catherine Deshayes — 19/11/2009 13:19:00

Praying for rain isn't the first activity that springs to mind whilst on a tropical holiday in Malaysia - but that could be about to change following news that one luxury Malaysian beach resort has come up with a novel way for guests to benefit from a torrential rainstorm on holiday - they get a free night if the rainfall exceeds 3 cms...

The ‘Everybody Loves Rain' promotion is certainly one of the more novel concepts designed to pull in the tourists.

The Tanjong Jara resort has come up with the idea in order to attract visitors during the area's main rainy season of November to February when torrential downpours are commonplace and sun-worshipping tourist tend to stay away.

Located on Malaysia's east coast in Terengganu state, the resort is offering the promotion from December 1st to February 28^th next year, and to qualify, guests must book an all-inclusive, 3 day/2 night package starting at 710 Singapore dollars (£306) per person.

Rainfall is measured from 7 am to 7 pm by the hotel's own rain water gauge and if there has been more than 3 cm of rain the guests will get a free night's accommodation.

Last year, monthly rainfall for the area in December was more than 8 cm and there is currently a heavy rain warning for Terengganu and warnings of flooding.

Sarah Cairns, executive vice president of marketing for YTL Hotels, which owns the Tanjong Jara resort said, "Our package proves that every cloud has a silver lining.

"The chances of rain are very high this time of year, so are your chances of a free night," she added.

Let some sunshine into your life and check out some properties for sale in Malaysia at http://malaysia.themovechannel.com/

Picture by Peleda

Food fight

Catherine Deshayes — 18/09/2009 12:56:00

In a bid to boost dwindling tourist numbers during the credit crunch, many countries have resorted to ever more creative ways of pulling in the punters and the publicity - and now Malaysia has decided to effectively copyright some of its most famous culinary dishes after other countries keep ‘hijacking' them...

Malaysia is starting a food fight over the origin of some of Southeast Asia's favourite recipes.

The Malaysian Tourism Minister Ng Yen Yen said, "We cannot continue to let other countries hijack our food."

So now, Malaysia will lay claim to its signature dishes such as spicy soup noodle laksa, chicken rice, the coconut milk rice nasi lemak and pork ribs herbal soup bak kut the.

Others on the list to be re-branded as 100 per cent Malaysian include Chili crab and Hainanese chicken rice.

"In the next three months, we will identify certain key dishes to declare as Malaysian," added the Minister.

Quite how the tourist board will go about branding these famous dishes is another matter, but the country is set on ensuring that all visitors are aware that these dishes originated in Malaysia, even though they are popular all over the world.

Variations of the dishes listed are available in several other Asian nations, particularly Singapore, Indonesia, Brunei, Thailand and China.

Chili crab is often associated with Singapore and is considered its unofficial national dish, so this particular food could be hard to poach. (Sorry).

This bid to copyright Malaysian menus comes following a diplomatic row with Indonesia, where protesters have accused Malaysia of stealing its cultural heritage.

Picture by Magalie L'Abbe

Go on, let Malaysia amaze ya

Catherine Deshayes — 04/11/2008 13:01:00

Like most countries, Malaysia has been suffering as a result of the credit crunch. Now, the property industry has launched a new campaign in a bid to attract more foreign investors...

Malaysia has been a popular tourist destination ever since it launched its ‘Truly Asia' campaign in 1999. It built a very strong argument about the attractions of the country which enticed both holidaymakers and property investors.

The eclectic nature of the country is what makes it so successful in attracting foreigners. Its geographical diversity sits alongside a kaleidoscope of food, art, culture and property.

For city dwellers, the capital city, Kuala Lumpur, offers high-yield, high-rise living, with one bedroom apartments, starting at around £90,000.

If you are more of a beach seeker and sun worshipper, you could buy a beachfront villa on the stunning Sepang Golden Coast. There are also rainforest based properties, village homes and townhouses.

World of Property highlights the ‘'My Second Home' programme, which allows foreigners to a ten-year social visit pass, meaning they can stay in their holiday home for longer than just a holiday. The abolition of capital gains tax in April last year has also been a driving factor in the country's success.

Prices remain attractive too. Yeow This Sang, Honorary Treasurer of the International Real Estate Federation, said, "The Malaysian property market is still attractive in terms of prices.

"Properties in Malaysia are among the cheapest in the region and our laws are comparatively more lenient for foreigners to buy and sell property.

"Foreigners wanting to purchase property in countries such as Indonesia, the Philippines, Thailand and Vietnam are generally put off by the countries' respective laws, but foreign property owners in Malaysia are not subjected to some taxes, such as death taxes," added Mr This Sang.

Now, as part of the new drive to attract more foreign investors, the International Real Estate Federation is contacting organisations in other countries to improve communication and help investors become aware of what is available in Malaysia.

Whilst Mr This Sang agreed that there had been a slowdown in the property market in Malaysia, he attributed it mainly to the rising price of raw materials rather than a financial crisis. He also said that demand for property remains steady and, due to that a slump should be avoided.

Picture by Magalie L'Abbé

Asia about face

Catherine Deshayes — 28/10/2008 11:52:00

In a bid to attract more foreign investment to the country, the restrictions currently imposed on international buyers are set to be eased in Malaysia...

Currently, foreigners are allowed to purchase any kind of property with a minimum value of £43,117 and can buy up to two residential properties, either two condominiums, or one condominium and one terraced house above two storeys, or a plot of land or bungalow.

In order to purchase a third property, you will have to apply to the Foreign Investment Committee of the Economic Planning Unit at the Prime Minister's Department and provide a valid reason for the third purchase for permission to be granted.

Property on Malay reserved land cannot be owned by overseas foreign investors.

At state level, each state authority has the discretion to consider acquisition by a foreigner based on the location and type of property and the percentage of total units in a project. The transfer of property titles is under the jurisdiction of the state government.

Despite these restrictions, buying in Malaysia is far easier than in some of its Asian neighbours and the Malaysian Government is constantly looking to improve conditions for people wishing to purchase property in the country and this is of course good news to foreign investors.

Now, the Government has announced plans to review the Foreign Investment Committee (FIC) guidelines, to help attract more foreign buyers, thus helping Malaysia ride out the credit crunch.

The last relaxations in restrictions were brought in in December 2006 and enticed strong interest from Middle Eastern, Korean, Japanese, Chinese, British and American buyers.

The new plans aim to attract more than £1.8 billion in foreign investments over the next five years.

International Real Estate Federation (FIABCI) Malaysia President Datuk Richard Fong said while the FIC guidelines for residential property purchases by foreigners had been relaxed over the years, the commercial property sector was still subject to strict regulations.

"Currently, a foreigner who wants to invest in any commercial property such as offices, retail malls, shop lots and factories but does not intend to occupy the premises himself, is required to have a partner taking up 30 per cent stake in the investment before he can go ahead with the purchase.

"This has been a huge restriction to commercial property sale as the guideline is deemed impractical and not advantageous to either party," he added.

Picture by angela7

Kuala Lumpur gets new 65-storey apartment block

admin — 16/11/2011 06:13:00

The Kuala Lumpur skyline is about to get a new 65-storey 268-metre high tower block featuring apartments, hotel rooms and offices.

Designed by Ole Scheeren, the architect behind the CCTV headquarters in Beijing, the Angkasa Raya tower will offer, according to the developers, a series of open horizontal slabs, bring urban life into the building and unfold into two interconnected spirals.

Called “The Service Residences,” the scheme will feature a “family of high-end condominiums located in the upper tower block from floor 37 to 64 … and grouped around a naturally ventilated atrium.”

There will be more than 280 units of studios, one to three bedroom apartments and duplexes, as well as penthouses. The development also features high levels gardens.

Source: OPP.org.uk

Kuala Lumpur 'may see downturn in apartment demand'

admin — 11/11/2011 06:37:00

Demand for luxury apartments in the Malaysian city of Kuala Lumpur is expected to fall over the coming year, a new study suggests.

The Malaysia Star reported on the predictions by DTZ Research, which were published in its Property Times market analysis, and revealed that the high-end residential sector in the city is likely to suffer from an influx of new supply.

According to the organisation, a raft of projects either at or nearing completion will put pressure on the market.

DTZ noted that around 5,384 units are due to go on the market in 2012, with more than 2,000 new apartments put up for sale during the third quarter of this year.

Source: PropertyShowrooms.com

Malaysia's high-end market set to suffer next year says DTZ

admin — 10/11/2011 07:42:00

The Malaysian luxury market is starting to go soft say local agents as demand levels off and the global economic situation worsens. Buyers are also being put off by tighter credit policies at the banks, DTZ Research announced this week in its latest Property Times market report.

Looking at the Kuala Lumpur luxury market in the third quarter of this year, DTZ predicts an “increasing downside risk on prices” at the higher end of the market if conditions continue to slide.

“The residential sector experienced significant completions in the quarter and this will put pressure on rentals, especially for large prime condominium units where demand has not kept pace,” says the report.

The agency also thinks that there will be more “pressure to sell” as buyers decide to “exit their investments.” Demand for new launches will be subdued.

Source: OPP.org.uk

Malaysia expects more Singaporean tourists this year

admin — 26/10/2011 06:54:00

Malaysia expects to receive more tourists from across the Causeway as a result of friendlier relations with the Singapore leadership.

Malaysian High Commissioner to Singapore Datuk Md Hussin Nayan said at least 14 million Singaporean tourists were expected this year, which is an increase of two million from last year.

He attributed this to the settling of outstanding issues between both countries including the KTM Berhad land in Singapore.

Briefing Malaysian reporters on Deputy Prime Minister Tan Sri Muhyiddin's working visit to Singapore, Md Hussin said many Singaporeans had also expressed interest to invest in Malaysia.

Source: Relax.com.sg

Malaysian developer plans two new resi projects worth RM890m

admin — 05/10/2011 07:49:00

Leading Malaysian developer MK Land Holding berhad announced this week that it is planning two new residential projects at its Rafflesia development worth RM890 million.

The Rafflesia scheme is located in Damansara Perdana, offering luxury homes in a landscaped environment surrounded by hills and a lake.

A typical high-spec villa comes with a full-floor master bedroom plus 4 other rooms, including the maid's room, living hall & dining area, a dry & wet kitchen and a family hall.

There will be 3,861 sq. ft. as well as a 4,668 sq. ft. units available and group chief executive officer Lai Shu Chuan says the final parts of the semi-detached development, called Rafflesia Hillside and Rafflesia Peak will launch in 2012 and 2013 respectively.

Source: OPP.org.uk

Tourism sector helped create 1.2m jobs in Malaysia

admin — 30/09/2011 08:07:00

Kuala Lumpur - Half a million more. This is the number of jobs expected to be created by the tourism industry by 2020, said Tourism Minister Datuk Seri Dr Ng Yen Yen.

The sector has so far helped create some 1.2 million jobs.

Underscoring the importance of the industry to the economy, Dr Ng said besides increasing the inflow of foreign exchange, tourism helped boost economic and socio-economic development, as well as create direct and indirect employment opportunities.

"Additional jobs can easily be created in this industry, considering its deep and wide linkages with other related industries."

Source: AsiaOne.com

Middle Eastern buyers increasing in Malaysia, research suggests

admin — 29/09/2011 08:06:00

Economic uncertainty and the availability of Islamic finance is driving Middle Eastern real estate investors to look East to markets such as Malaysia, it is claimed.

Middle Eastern investment into Malaysian real estate projects has risen 11.4% in the third quarter of 2011 compared with the same period in 2010, according to figures from IP Global, a property investment company which specialises in emerging and recovering markets.

Malaysia’s well regulated real estate market has grown 5.3% and Kuala Lumpur is the country’s hotspot with a property house index growth of 11.4% year on year, it says in its latest report.

Malaysia has been providing Shariah compliant financial services for over 25 years and this is one factor that makes it increasingly attractive to buyers from the Middle East.

Source: PropertyWire.com

Video: Malaysia - Truly Asia

admin — 29/09/2011 05:01:00

Malayasia is attracting a lot of overseas interest with its relative economic stability and growing tourist industry. But while real estate continues to perform strongly, what are the main tourist attractions that keep drawing visitors?

Watch this tourist video guide on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/09/malaysia-truly-asia/

Malaysian retail property 'on the up'

admin — 17/08/2011 06:27:00

Values of Malaysian real estate in the retail sector are being pushed higher by investor interest, it has been noted.

Speaking to Business Times, CB Richard Ellis (CBRE) Malaysia managing director Alan Soo explained that there is a "strong appetite" for assets such as shopping malls among foreign and domestic investors.

He told the publication that yields in Malaysia currently stand at between six and seven per cent, which is almost double what is available in some of the other markets in south-east Asia.

Mr Soo also pointed out that many real estate investment trusts and funds are "finding the growth potential here compelling".

Source: PropertyShowrooms.com

Malaysian real estate prices rising

admin — 29/07/2011 10:39:00

Property price increases continue in Malaysia, albeit at a lower rate, amidst slower exports and economic growth in the first quarter of 2011.

The national house price index rose 6.5% y-o-y to Q1 2011, after annual increases of 7.9% y-o-y in 2010, according to the Valuation and Property Services Department (JPPH). When adjusted for inflation, house prices rose by 3.4% over the same period.

In Kuala Lumpur, the house price index surged by 11.4% y-o-y to Q1 2011, with a rise of 7.1% during the latest quarter. House prices also increased in Selangor (9.6%), Perak (8%), and Negeri Sembilan (5%) over the same period. On the other hand, in the year to end-Q1 2011, Pulau Pinang and Johor experienced price falls of 1.2% and 1%, respectively.

By property type, nationally:

• Terraced houses rose 7.7% y-o-y to Q1 2011

• Detached houses rose 5.8%

• Semi-detached houses rose 5.3%

• High rises rose by just 0.9% over the same period.

Source: NuWire Investor

Significant decrease in distressed property in Malaysia

admin — 08/06/2011 07:42:00

Recent figures have shown that Scandinavia, Hong Kong, Australia and Malaysia saw the most significant decrease in distressed property for sale over the last quarter. While countries such as the Usa, South Africa, Spain and Ireland saw the largest increase in the number of distressed properties for sale, Malaysia was amongst the best performing countries.

Fall in distressed property in Malaysia

Property Wire reports that ‘distressed property usually fetches a price that is below its market value. An increased rate of distressed properties entering a country's market can be seen as a negative economic indicator while a decrease may signal recovery.’

According to the latest index from the Royal Institute of Chartered Surveyors, property agents across the globe continue to be pessimistic about the prospects for the commercial property market in the second three months of 2011.

Source: HomesGoFast.com

Tourism Malaysia woos Singapore's seniors

Sarah Kendell — 06/04/2011 11:36:00

Money, time and proximity. These are some reasons why Tourism Malaysia is eyeing Singapore's senior citizen market to woo more them to holiday in Malaysia.

Tourism Malaysia recently participated in a locally organised event, 'Active Ageing Carnival and 50plush Expo 2011', in which it partnered AirAsia and Singapore-based travel agent Fascinating Holidays to promote Malaysia among Singapore retirees.

Tourism Malaysia director in Singapore Zalizam Zakaria told Malaysian news agency Bernama: "We want to concentrate on this category because retirees have all the means to spend on vacations.

"They have all the free time as they don't have to wait for school holidays or take leave to travel."

Source: AsiaOne/Relax News

Malaysian property prices continue to rise

admin — 01/04/2011 11:32:00

Home values in Malaysia are expected to grow at a high but sustainable rate this year, says one local agent.

In a Property Report article, managing director of CH Williams Tahir & Wong, Foo Gee Jen, said he expected residential property prices across the country's prime areas to grow between 10 and 15 percent.

The government's moves to cap market growth and prevent overheating by implementing a 70 percent lending limit on third house financing had helped to slow growth to a more sustainable pace, Jen said.

"The government announcement to lower the cap on the loan-to-value ratio gave a bit of a psychological effect on people", he said.

Source: Property Showrooms

Malaysian real estate tipped to take off

admin — 10/02/2011 10:53:00

Stability and affordability combined with the creation of new jobs means that an increasing number of investors are looking to buy property in Malaysia, one consultancy has suggested.

Knight Frank has forecast a jump in the number of buyers as a result of ex-pats and investors moving to the country to work for the new Economic Transformation Programme (ETP).

"The expatriates will be here for the duration of the projects such as the Mass Rapid Transit, among others. They would need a place to stay," Eric Ooi, managing director of Knight Frank Malaysia, told New Straights Times Property.

Indeed, Mr Ooi said that he expects more than 15 per cent of luxury property purchases in Malaysia this year will be by foreigners.

Source: Property Showrooms

First organic spa resort opens in Malaysia

Sarah Kendell — 13/01/2011 11:32:00

The Chateau Spa and Wellness Resort, the world's first organic wellness destination spa resort, will open on April 28, 2011 in a 150-million-year-old tropical rainforest in the Berjaya Hills, Malaysia.

Modeled after an 18th century medieval 'Haut Koesnigburg' castle in Alsace, France, The Chateau has 210 rooms and suites. The Chateau offers three, five, and seven night packages that are specially designed for guests and include accommodation in The Chateau's spa rooms, daily meals created by their very own dietician, and complete daily fitness and wellness programs.

The five star deluxe spa resort is the first to offer the use of illusive European thermal facilities, which include a herbal infused sauna chamber, salt grotto or mud chamber, and a soap brush/aquaveda heated bed with automatic body scrub facilities. Each guest meets with a member of the spa personnel to create personalized therapies and programs that are designed to meet individual needs and health goals.

Malaysia curbs property speculation

Catherine Deshayes — 09/11/2010 20:19:00

Malaysia's central bank said third-home buyers are now restricted to a maximum loan of 70% of the property's value...

The new rule, which takes effect immediately, aims to curb speculative investments in the country's residential property market, which has seen higher-than-average price increases in some areas.

Financing for purchases of first and second homes will not be affected, Bank Negara said in a statement. First- and second-home buyers can borrow as much as 90% of the property's value.

"The measure aims to support a stable and sustainable property market, and promote the continued affordability of homes for the general public," the statement added.

Central bank Governor Zeti Akhtar Aziz last week said the bank would take action to prevent asset bubbles, including measures to curb real estate speculation.

The central bank "won't act unless we see imminent risks of an asset bubble," Ms. Zeti had said.

Source: WSJ

Malaysia closes diving sites due to coral bleaching

Catherine Deshayes — 29/07/2010 07:27:00

Malaysia has closed some of its top dive sites, on the tropical islands of Tioman and Redang, which have been hit by coral bleaching caused by global warming, officials said...

The reefs, which attract some 500,000 tourists annually, will be off-limits to divers and snorkellers until the end of October in an attempt to relieve stress on the fragile marine ecosystems.

"Nine diving sites out of 83 sites all over the country are closed," Shahima Abdul Hamid, the Marine Park Department's director of planning and management, said.

The closure would give the coral an opportunity to regenerate and would remove stress caused by tourism-related activities such as diving, the department said.

Coral bleaching, which can eventually cause corals to die, occurs when stresses including rising sea temperatures disrupt the delicate, symbiotic relationship between the corals and their host organisms.

The department's director-general, Abdul Jamal Mydin, told reporters that in some areas 60-90 percent of the coral had been damaged, and that three entire islands around Tioman in Malaysia's southeast had been closed.

"We are monitoring the extent of coral bleaching at all marine parks in the country. In the meantime, we are building artificial reefs and coral transplants," he was quoted as saying by the Star daily.

The Malaysian Nature Society applauded the move to give the reefs a break.

"In Malaysia, corals are facing a vast variety of threats even without the coral bleaching episodes," said the society's head of conservation Yeap Chin Aik.

Apart from global warming, "the other threats are uncontrolled tourism, and land-based threats which result in pollution," he said.

Source: AFP

Dubai developer backs out of Malaysia

Catherine Deshayes — 21/07/2010 07:31:00

Limitless, the property arm of struggling state conglomerate Dubai World which was set up to expand overseas business, is backing out of a plan to build hundreds of luxury homes in Malaysia as it looks to shore up its finances...

Cash strapped Limitless is selling off its stake in a partnership with Malaysia's Bandar Raya Developments to develop waterfront land in the southern city of Nusajaya in what is also a blow for the region as foreign investment declines.

Limitless, which was set up in 2006 to focus mainly on overseas development and is now under the management if its sister company Nakheel, hopes to sell its 60% share for $23.8 million.

The project has been part of an ambitious plan to cash in on growing demand in south east Asia for property. Limitless formed joint ventures with developers in Vietnam, Malaysia and Indonesia. Among them were the $220 million Halong Star mixed use development in Vietnam and the $1.7 billion Rasuna Epicentrum in Jakarta.

Asked what would happen now in the region a company spokeswoman said; ‘We continue to review our business activity to reflect market conditions'. She added that the Limitless office in Singapore is still open.

Work has started on overseas projects in Saudi Arabia, Jordan and Vietnam but others in Russia, India and Pakistan have been either stalled or slowed. Plans for a waterfront development in Karachi have been cancelled and a housing project with India's largest developer DLF near Bangalore has also stalled.

The move comes as Nakheel, the developer behind Dubai's iconic palm shaped man made islands, is hoping to sign a debt restructuring deal at a meeting with financial creditors on Wednesday as it restructures $10.5 billion of debt. Dubai World owes financial and trade creditors total of $23.5 billion. Nakheel has already started paying trade creditors 40% of the amount owing as part of a wide ranging offer announced in March.

Meanwhile Dubai properties, part of the business empire of the emirate's ruler, plans to hold an auction for three beach side plots of land next month as Dubai struggles under a weight of sovereign and corporate debt.

Dubai properties, part of Dubai Holding, said in an advertisement that the auction would take place on August 29 for the lease of three beach club plots at Jumeirah Beach Residence Community.

Credit rating agency Moody's last week downgraded Dubai Holding's loss making main operating arm, Dubai Holding Commercial Operations Group (DHCOG), to B2 in its highly speculative category of ratings, taking account of weakness in Dubai's real estate market and uncertainty over the company's debt restructuring.

Source: www.propertywire.com

Explore fabled lands by train

Catherine Deshayes — 14/07/2010 07:15:00

Orient Express is launching a series of four rail tours through Laos, Singapore, Thailand and Malaysia aboard the Eastern & Oriental Express...

The tours, from November to March, will have excursions, overnight off-train stays and guest lectures. Passenger numbers will be limited to 60, well below the 132-person capacity of the train.

The first departure, the six-night Legends of the Peninsula tour of south-east Asia from Bangkok to Singapore, departs on November 20.

The other tours are Epic Thailand, a six-night tour from Bangkok to north-east Thailand; Tales of Laos, a three-night journey from Bangkok to Vientiane; and the Fables of the Hills tour, a six-night journey that will take passengers from Singapore to Bangkok and includes an overnight stay in the Cameron Highlands.

Prices for the three-night Laos tour cost from $4200 a person, twin share. The six-night tours cost from $9600, a person, twin share. Prices include food and beverages. As a launch special, Orient Express has complimentary nights at the beginning and end of the six-night tours at the Mandarin Oriental Hotel in Bangkok and Raffles Hotel in Singapore and one night's accommodation in Bangkok for the ''Epic Thailand'' tour.

See www.orient-express.com.

Malaysia targets India increase

Catherine Deshayes — 10/03/2010 09:37:00

The Malaysian Tourism Ministry has again upped its target for tourist arrivals from India, hoping to pull in 650,000 visitors to Malaysia this year.

With budget carrier AirAsia making plans to fly to more major Indian cities later this year and the swelling in outbound travel in India, tourism officials are optimistic that the new target can be easily achieved.

"India is a main growth market and the country's outbound travel is booming. With AirAsia scheduled to fly to major cities soon, we can achieve a 10 percent growth without any problems," Datuk Mirza Mohammad Taiyab Beg, Director-General of Tourism Malaysia, told the media here.

Despite the global economic recession last year, tourist arrivals from India were at a record figure of 589,838. After China, India is the second top tourism generating market for Malaysia in the region.

Mirza is currently leading a mission to six cities in India -- Ahemdabad, Bangalore, Cochin, Delhi, Kolkata and Mumbai -- to promote Malaysia extensively.

The Tourism Ministry will also focus more on emerging second tier cities in India, where outbound travel is steadily rising, largely spurred by the increasing economic wealth.

Over 23 million visitors from around the globe landed on Malaysian shores last year.

Source: www.bernama.com

Malaysia keen to attract investors

Catherine Deshayes — 18/01/2010 11:26:00

The Malaysian government is keen to attract more overseas property investors especially from the UK, Singapore and India, it is claimed...

The country's Foreign Investment Committee said that a comprehensive deregulation of investment guidelines is aimed at making it easier for foreign buyers.
‘The most important aspect in purchasing Malaysian real estate is the land law system that allows for transparency and enforceability of ownership. Foreigners also have no impediment to buying freehold Malaysian real estate and to sell when the need arises without restriction,' said Kumar Tharmalingam, member, board of governors, Malaysia Property Incorporated.

To date investors from Singapore, UK, Korea and India have been the biggest buyers in the country, spending around $150,000 to $300,000 with Kuala Lumpur, Penang and Johor being the most popular locations.

The real estate sector will benefit in 2010 from rising demand and an improving economic outlook, according to a recent research note from Malaysian Industrial Development Finance.

But it warned that despite encouraging sales demand and improving economic sentiment, the fear of demand sustainability, of the withdrawal of cheap credit, absence of attractive promotions and favourable regulations may take its toll on the property sector.

‘Sales demand for residential properties is expected to remain buoyant as investors continue to deem it as one of the more liquid hedging asset. Speculators are also taking advantage of the current market sentiment to lock-in on gains,' the report said.

A survey of key property players revealed that none was slowing down their pace of project development, with many taking advantage of the current discounted valuations to replenish land banks and were not holding back new launches.

The research said key players have indicated that take-up rates of residential properties have remained strong between 80 and 90% in the last quarter. As such, it was expected that residential property sales will remain buoyant, at least within the first half of 2010 with estimation of at least 25,000 new units to be launched over the first quarter.

Prices of properties nationwide declined 9.8% due to the economic crisis, but gained 1.4% year on year due to renewed interest emerging in the second quarter of the year. ‘Assuming the presence of cheap financing, attractive promotions and favourable regulations continue into 2010, coupled with new launches and delivery in 2010, property prices may face an upsurge,' the report said.

However, there are concerns about a potential reintroduction of the Real Property Gains Tax (RPGT) aimed at controlling the secondary sales market amid fears that rising prices may create a real estate bubble. But Prime Minister Datuk Seri Najib Tun Razak announced last week that RPGT of 5% will only be applicable to properties that are sold within five years of their purchase.

But the report says that as bubble is unlikely. Indeed it favours a boost to the sector in terms of incentives, including tax reductions for sub-urban developments, cheap credit, continuous efforts to draw FDI and for local small players to have joint-ventures opportunities with state governments.

Source: www.propertywire.com

The dirty truth

Catherine Deshayes — 14/12/2009 11:50:00

A top minister has slammed Malaysia's taxi drivers, saying they were more of a problem for the tourism industry than the nation's notoriously filthy toilets...

"The complaints by tourists about the taxi drivers' behaviour are more than toilets now, so in that context the taxi drivers are worse than dirty toilets," cabinet minister Nazri Aziz said.

"People are complaining about the taxi drivers overcharging, being impolite and not using their meters, forcing the tourists to bargain with them," he told AFP.

"This is the third-world taxi driver mentality. Even in China now, taxi drivers can no longer (haggle), they just have to take the passengers, no questions asked.

"It's not that all taxi drivers behave like that, it's just a small group of them but that is already giving Malaysia a bad name," said Nazri, who is minister in the prime minister's department.

Complaints about taxis are common the world over, but it has become a hot topic in Malaysia where frustrations are vented on blog sites and in letters to newspapers.

In a survey by the local magazine The Expat last year, some 200 foreigners from 30 countries rated Malaysia the worst among 23 countries in terms of taxi quality, courtesy, availability and expertise.

The respondents lashed the fleet as "a source of national shame" and "a serious threat to tourists -- rude bullies and extortionists".

Source: AFP

Free second honeymoons

Catherine Deshayes — 14/10/2009 11:15:00

Malaysia's eastern state of Terengganu is offering free honeymoons worth up to $488 each to rekindle the romance between married couples on the brink of divorce...

The honeymoon package comes with some counseling and is an attempt to slow soaring divorce rates in the state, according to The Star newspaper reported yesterday.

"We can understand newlyweds having problems understanding one another, where a slight skirmish could lead to a separation but it is unacceptable for those married more than two decades to file for divorce," the paper quoted Terengganu Welfare Community Development and Women Affairs committee chairman, Ashaari Idris, as saying.

The conservative Muslim state did not disclose divorce rates.

Idris said the state had carried out a successful pilot project where 25 couples facing marital woes were selected for three-day honeymoon package that cost around 1500 ringgit (A$488) per couple.

Malaysia is a predominantly Muslim country. Under Islam, divorce is allowed, but frowned upon, with the Prophet Mohammed saying divorce was, in the eyes of God, the most distasteful lawful act.

Source: www.theage.com.au

Saving grace in Malaysia

Catherine Deshayes — 16/09/2009 10:31:00

Malaysia has a large number of investors due to the culture of saving in the south-east Asian nation...

According to Angie Ng, deputy editor of the Malaysian Star, the country has one of the highest savings rates in the world, amounting to 32 per cent of the gross national product.

She indicated there are numerous wealthy nationals looking to invest in real estate, and believes that Malaysians are being targeted by developers from locations around the world, including Britain and Australia.

"It is about time developers come up with the right products to attract these high net worth buyers and some of the high-end products will likely make their way to the market next year," she said.

The residential property sector in the country has been one of the most powerful drivers of the local real estate sector, but there is now growing interest in the commercial property market, she added.

Source: www.propertywire.com

Sky-high network

Catherine Deshayes — 31/07/2009 10:59:00

Long-haul budget airline AirAsia X this week it would launch a new hub in the Middle East, enabling its network to extend to north Africa and Europe...

AirAsia X's chief executive officer Azran Osman-Rani said a location had already been chosen in a Gulf state but that it would not be disclosed for several weeks.

"This will open up completely new markets, and we won't always have to have the planes based in Kuala Lumpur, which limits us to an eight-hour radius," Azran told reporters.

"There will be many in the aviation industry who think this is crazy because the traditional low-cost model is to do only point-to-point flights... to keep it simple," he said.

Azran said however that while there would be "some additional cost", AirAsia X would not need to create new infrastructure and would instead hire existing services for cargo, catering and maintenance.

Initially, the carrier will operate flights from Kuala Lumpur to the Middle East hub, before branching out next year by using it to jump to destinations that could include Morocco, Turkey, Spain or the Czech Republic.

Azran said the plan was also triggered by potential problems accommodating new aircraft, amid doubts that Malaysia's airports authority will complete a new low-cost carrier terminal in Kuala Lumpur by 2011 as scheduled.

"It will relieve the pressure of having all our planes in Kuala Lumpur, especially if the new airport is not finished and we do not have enough parking bays," he said.

AirAsia X currently flies to seven destinations, with two more planned by the end of 2009. It operates five planes, a combination of Airbus A330s and A340s, with three more medium-range A330s due for delivery this year, three in 2010 and six in 2011.

Azran said this week that AirAsia X has been denied permission by the Malaysian Government to fly into Sydney and Seoul, due to a row over its sister carrier AirAsia.

But he said Wednesday that it would instead boost flight frequency to the Gold Coast in Australia, Hanzhou in China, and the Taiwanese capital Taipei.

An affiliate of regional low-cost carrier AirAsia and Virgin Group, AirAsia X was launched in January 2007. AirAsia and AirAsia X have common shareholders, including AirAsia founder and CEO Tony Fernandes.

Source: www.theage.com.au

Fair's fare in Malaysia

Catherine Deshayes — 29/07/2009 11:15:00

Malaysia Airlines yesterday launched an air pass offering sharp fare discounts for travel within Southeast Asia in a bid to fill up its planes and spur tourism into the country...

The flag carrier plunged into the red in the first quarter, hit by a triple blow of overcapacity, fuel hedging losses and the global economic slump which hurt passenger and cargo demand.

Managing Director Idris Jala said business has improved in the second quarter with the average per centage of seats filled rising to 67 per cent in June and 76 per cent in July. This was higher than 56 per cent recorded in the first quarter.

He said the pass scheme would be an added boost to business as more people are opting for short-haul travel amid the economic crisis and the swine flu pandemic.

The pass offers a set of four prepaid one-way tickets for $US229 ($A278) for economy class and $US729 ($A886) for business class, inclusive of fuel surcharges and other fees. Travellers pay separately for airport taxes.

The tickets are valid for three months and can only be used for travel from Kuala Lumpur to a destination within the countries that make up the Association of Southeast Asian Nations or vice versa, Idris said.

"It's a massive discount (on fares). Kuala Lumpur will be the base and hub, so it will bring a lot of tourists to Malaysia," he told reporters. The airline is targeting at least 2,500 new passengers each month under the scheme, he said.

Ong Hong Peng, secretary-general of the Tourism Ministry, said travel within Southeast Asia remained resilient with tourist arrivals rising more than 15 per cent last year to more than 70 million.

Travellers from the region accounted for 78 per cent of foreign visitors into Malaysia last year, he said.

Malaysia is however, bracing for fewer tourists this year with arrivals expected to drop to 19 million, from 22 million last year, he said.

Source: www.theage.com.au

Developer pulls the plug

Catherine Deshayes — 24/07/2009 10:30:00

Dubai developer Damac Properties has officially pulled out of a waterfront and marina project in Malaysia due to the global financial crisis, it has been confirmed...

It will now concentrate on projects that are already under construction and is a further sign that Middle East developers have to reign back on ambitious global goals.

At the height of the property boom in the region Damac signed a $122 million sales and purchase agreement with state developer UEM land to develop the Nusajaya project in Iskandar, Malaysia.

'This decision has been made in light of changes in the global financial market and an overall slowdown in the property market worldwide,' Damac said in a statement.

'Damac Properties has already announced its intention to focus on projects that are already under construction and this decision forms part of that strategy,' the statement added.

UEM Land said it will continue with the project and it expects three buildings to be complete by the end of the year. But it will prove costly for investors as the price has been increased from RM205 per square foot from RM250 for the waterfront apartment block, hotel and family entertainment centre.

Meanwhile it is looking for major investment in the project. 'We need investors to create the critical mass and excitement. Nonetheless, we believe investors will have more confidence to invest in Nusajaya once these three buildings are up,' said managing director Wan Abdullah Wan Ibrahimhe.

The company is in talks with potential local and overseas developers, including from Australia and Singapore, to take over Damac's place. 'We are also actively making new contacts with other parties,' he added.

Damac, which has cut at least 250 jobs since the start of the economic downturn, has properties worth more than $45 billion including projects in the United Arab Emirates, Egypt, Iraq, Jordan, Lebanon, and Saudi Arabia. It has not ruled out developing other projects in Malaysia in the future if market conditions improve.

Source: www.propertywire.com

What's next for Malaysia?

Catherine Deshayes — 15/07/2009 10:13:00

No fewer than 130 out of 151 abandoned Malaysia housing projects identified by the Selangor Task Force for Abandoned Projects have yet to be revived, according to a report on Malaysian online publication The Star...

Selangor housing, building management and squatters committee chairman Iskandar Abdul Samad said only eight housing schemes featuring 2,710 residential properties in Malaysia were revived and completed.

"But it does not mean the remaining projects cannot be revived. We are studying the matter and looking at the best way to solve the problem," he said.

The recovered projects include the mixed-development project in Taman Prima Selayang in Gombak involving 600 apartments in Bandar Pinggiran Subang and 700 houses in Taman Puncak Jalil.

One of the main reasons many of the projects have not been revived so far, is because no developer was prepared to take the building work on. This is despite a pick-up in the construction industry.

Research from the Malaysian Resources Corp Bhd shows that new-build construction levels in Malaysia are currently on the rise, helped on by cheaper material costs.

Last year was a difficult one for the construction industry with the change in Government in certain states which subsequently thwarted certain infrastructure plans.

Source: www.homesoverseas.co.uk/news

More green, please

Catherine Deshayes — 28/05/2009 11:09:00

Residential developers in Malaysia must do their part in trying to stop climate change by designing and constructing more green homes that are energy-efficient, according to Malaysia's Chief Minister, Datuk Musa Aman...

Aman said constructors should find ways to keep buildings in tropical countries cool without having to use too much energy to do so.

"Whatever we do, we must ensure our carbon footprint is kept low," he said at Saturday's Sabah Housing and Real Estate Developers Association annual dinner.

Aman said climate change was a global issue and everyone needed to help alleviate the impact of the quickly changing environment.

Meanwhile, Aman said the Malaysian Government was considering the 148-member association's request that land leases for property in Malaysia be reverted to the original 999 years instead of the present 99 years.

"We are looking into this matter while being guided by the various land laws," he said.

Source: www.homesoverseas.co.uk/news

Malaysia braced for impact?

Catherine Deshayes — 29/04/2009 08:24:00

The industrial property market in Malaysia is performing better than office and residential real estate but is slowing and not yet felt the full impact of the global downturn, according to experts...

Analysts say that the current slowdown in manufacturing orders has not impacted on industrial property as tenancy contracts for the sector are locked in for a longer period of between five and 10 years compared with two to three years for office property.

They say that these long term tenancy commitments reduce any panic selling or irrational transactions, thus sustaining the prices and rental rates of these properties.

Also this property sector has remained relatively resilient because landlords are more willing to work out solutions with their tenants during the current difficult times and tenants are allowed to pay up when business conditions recover.

'Landlords are more inclined to help roll-over rentals because capital expenditure for signing up new tenants is quite high,' said an analyst from Kenanga Research.

The reason for this is that industrial property space is usually tailored for specific tenants and any changes in tenancy will incur additional costs of construction and renovation.

Association of Valuers and Property Consultants in Private Practice Malaysia (PEPS) president James Wong said that industrial property prices are stable and have not declined. However, he warns that the full impact of the global recession has not been fully felt yet and he expects industrial property market to be affected later this year.

'We foresee that there will be a slight drop in prices, demand will be weakened and new launches of industrial property are likely to be deferred until confidence returns to the market,' he said.

'The volume of transactions of industrial properties will also contract. Although the industrial property market in the Klang Valley is expected to be the most resilient, a mild drop in prices seems inevitable. A number of manufacturing companies will close down and go into receivership. This will result in forced sale by the banks, which will bring down industrial property value further,' he added.

A recovery is not predicted until 2010 and the performance of the industrial property market will depend on the performance of the manufacturing sector, Wong continued.

Wong suggests seeking new export markets is one of the ways to boost industrial property. Others include setting up small and medium-scale industrial parks with subsidised grants, hi-tech and science parks.

Colliers International Property Consultants Managing Director Teik Bin Teh said demand for industrial property is on the decline but the exact number is unclear because transactions are virtually at a standstill. 'We are unable to judge the price trends with only a few transactions. But prices are certainly not going up,' he said.

Source: www.propertywire.com

Malaysian market: moderation

Catherine Deshayes — 23/04/2009 09:29:00

The property market looks set on the path of moderation in 2009 with prices and rentals correcting and construction activities easing slightly amid the current economic situation...

However, it is unlikely that prices and rentals will plunge in the coming years, said Valuation and Property Services Department, Ministry of Finance in its report released today.

The department said the residential sector is expected to gain from several measures under the Budget 2009.

For 2008, the property market recorded 340,240 transactions valued at £16.5 billion, it said.
The transaction volume recorded 9.9 per cent increased from 309,455 transactions while value grew by 14.5 per cent from £14.4 billion.

During the year, the primary market did not perform as well as the previous year as there were 48,830 new housing units offered for sale, of which only 21,725 units taken out.

In tandem with the dismal performance of the primary market, the number of residential overhang increased by 9.1 per cent to 26,029 against 23,866 units in 2007.

The report was launched by Deputy Finance Minister Datuk Wira Chor Chee Heung.

Source: www.btimes.com.my

Budget flights for Malaysia

Catherine Deshayes — 26/03/2009 08:34:00

The Malaysia property market has been boosted by the launch of a new budget airline service...

Air Asia X has started a new service offering flights five times a week from London Stansted to the Malaysian capital, Kuala Lumpur.

The company has already sold 50,000 tickets priced between £149 and £199 one way, compared to typical prices of £300 charged by other airlines.

John Scott, Director of Southeast Asian property specialist, Asset Property Brokers, said: "This is good news for those thinking about investing in property or seeking a property in Malaysia.

"Although property price rises have slowed inline with the global downturn, Malaysia's property market has been more robust than most.

"The launch of this new airline service will add a further boost to Malaysia¹s booming tourist industry, driving up occupancy rates and yields of well located and managed hotel property projects."

A record 22 million people visited the country in 2008, up five per cent compared with the previous year, making it Southeast Asia's top tourist destination.

Source: www.homesoverseas.co.uk/news

Why airlines pinch leg space

Catherine Deshayes — 23/03/2009 11:04:00

Cathay Pacific's Boeing 747 economy class seats recline internally without impacting on the passenger behind...

When AirAsia X launched its "no-frills" service between Kuala Lumpur and London Stansted earlier this month, one of the points raised was that the vast majority of seats on its two A340-300 aircraft would be economy, and that the seat pitch would be just 32in (81.3cm).

Yet a glance at the seat pitches of major airlines suggests that AirAsia X is doing little out of the ordinary. In fact, it is marginally more generous than some of the flagship carriers, such as British Airways.

The good news for passengers is that seat pitch has already been squeezed as far as airlines feel they can get away with. The bad news is that the credit crisis has ensured that few airlines will feel able to increase leg space.

"Seat pitch equals revenue, and that equals how much the airlines will lose or, if they're lucky, make this year," said Peter Miller, Marketing Director of Skytrax, adviser on quality to airlines and airports.

"If you have a seat pitch of 31in rather than 34in, then you carry an extra 25 to 30 passengers. All the major airlines will get away with as little as they can."

Instead, some airlines are looking to increase capacity by installing more seats along rows. Emirates has introduced 10 seats across the aisles of its 777s, while Air France also recently installed 10-seat rows on some aircraft n equating to an extra 35 passengers or so per flight.

The seat pitch is the distance between the rows of seats and is measured from the back of one seat to the back of the seat behind. UK regulations set by the Civil Aviation Authority say that, in practice, the minimum seat pitch must be 28in. The UK is thought to be the only country with a minimum seat pitch. Yet seat pitch per se does not reflect the amount of legroom available, as this also depends on the size and thickness of seat.

"Seat pitch is an element in airline costings, but it isn't fundamental," said Neal Weston of the British Air Transport Association. "There are other issues, such as ancillary charges, luggage, and how web-based customers are."

A spokeswoman for BA echoed this view. "We select our seat pitch based on a number of factors," she said. "We need to ensure the seats are comfortable for customers, and make the most use of the cabin floor space we have."

Generally, apart from securing an emergency row seat, bulkhead seat or just an aisle seat, there appears little that passengers can do to ease cramped conditions. Even the A380 offers a seat pitch of 32in. The effect on such a wide-bodied aircraft is to create space for 399 economy passengers, but the result is what some people have described as a claustrophobic feeling on the lower deck, which has three long segments, each curtained off, of economy seats in 3-4-3 format.

Possible solutions include staggering seats to free up arm and shoulder space; and overlapping arm rests to increase seat width. Cathay Pacific brought in a fixed-back seat that can recline without impinging on the space behind or in front of you. Singapore Airlines offers a 32in pitch, but has also designed an economy seat that creates more room.

If you are lucky, one of the few airlines with a good-sized seat pitch will be flying to your destination, and Skytrax pin points Asiana Airlines as having the amplest, at 34in. "Such airlines know they could squeeze more people on but they use this as a key selling point," said Mr Miller. Similarly Thai Airways and Malaysia Airlines, which generally fly older aircraft, offer more generous seat pitch.

Source: Independent

New mall for Malaysia

Catherine Deshayes — 11/03/2009 08:36:00

Aero Mall, the first stand-alone and external airport mall in Malaysia currently under construction at Senai Airport, is scheduled to open by the end of the year...

The £13.6 million mall offers 3,716.12 sq m of retail space.

Senai Airport Terminal Services General Manager of Finance and Retail Development Chan Kwai Yew said the mall would be positioned and marketed as the new lifestyle hub in the area.

"Shopping, dining and entertaining at airports is getting popular as airports are no longer just places for air travellers or well-wishers to send off airborne passengers,'' he said in an interview.

Chan said Singapore's Changi Airport Terminal 3 was the best example of this as it had successfully attracted non-air travellers and residents from nearby areas to shop and dine there.

SATS is targeting the business community, executives and senior managers working in the nearby industrial estates and the 192,000 population (2005 figure) in the Senai-Kulai area.

Chan said Aero Mall would also complement the Senai Aviation & Airport City to be launched in the second quarter of the year.

Meanwhile, Plaza Premium Management Ltd has chosen Senai airport for its third Plaza Premium Lounge in the country after KL International Airport and the Low-Cost Carrier Terminal.

Plaza Premium Lounge is the world's first commercial VIP lounge open to airport users irrespective of airlines, travel class, air miles or membership programme.

"We have invested RM500,000 for the Senai lounge and see good prospects as Senai-Kulai is located within the Iskandar Malaysia growth corridor,'' said Chief Financial Officer Clarence Chiu.

Source: The Star and www.malaysiapropertynews.com

KL property market to continue falling

Catherine Deshayes — 06/03/2009 09:52:00

The property market in Kuala Lumpur could depreciate as much as 10 to 15 per cent going forward, while the prices of high-end condominiums in the Kuala Lumpur City Centre (KLCC) area may fall up to 30 per cent in the next two to three months, said Property Consultant Rahim & Co...

The rest of the property market in Malaysia was expected to remain stable, it said.

"The drop in prices will be more drastic in the KLCC area due to higher price escalation that (it had enjoyed) from 2005 to 2008," said Datuk Abdul Rahim Rahman, Executive Chairman of Rahim & Co.

"We are beginning to feel the impact on property in KLCC that depends on foreign buyers."

He said there had been indications that the asking price for high-end condominiums in the KLCC area had fallen by 30 per cent.

The foreign buyers that had supported property sales in KLCC "are now beginning to reduce and Malaysian buyers are adopting a wait and see attitude," he said.

"Sellers have started to offer lower prices (and the prices) have dropped 10 to15 per cent in the KLCC area," Abdul Rahim told reporters during the one-day seminar aimed at updating participants on property trends and issues in Malaysia.

However, it was unlikely that the domestic real estate market would drop as much as 45 per cent as had happened in Hong Kong, London and Singapore, he said, adding that real estate prices in those cities were expected to further depreciate by 50 per cent or 60 per cent in the next few months.

Abdul Rahim said Malaysian office spaces still enjoyed 90 per cent occupancy rates and rental prices had not dropped as there was no oversupply and many of the leasing contracts were not expiring.

"We know that it is going to be an additional eight million sq ft of office space in 2011 and 2012, and we expect because of this, there will be downtrend in rental rates even without this economic crisis," Abdul Rahim said.

Source: www.malaysiapropertynews.com

Malaysia dodges boom-bust cycle

Jaimie Kanwar — 25/02/2009 10:33:00

A lack of frenzied activity in the property markets in Malaysia has helped save it from a property boom and bust, industry professionals are claiming...

Although interest from foreign property investors in Malaysian properties has slowed down in the last six months following the global financial meltdown, there are still investors who see potential in the market and are looking for value buys.

The fact that local properties have not appreciated drastically in the past few years like those in countries such as Singapore and Hong Kong, has turned out to be a blessing, some are pointing out.

Stable market

Property prices in Kuala Lumpur and other parts of the country are much lower than those in other neighbouring high-cost cities.

Relatively speaking, the local property market is more stable and resilient than in other parts of the world, partly due to the fact that the country has not been severely affected by the global crisis.

Yu Kee Su, executive director of Malaysia property Inc, says that low capital appreciation in the regions has actually made them a more stable market for real estate investors.

As property prices have not escalated in a frenzied manner over the last few years, the threat of an oversupply has been kept in check. 'Malaysia is not suffering from any sharp price decline. The shortcomings have indeed become a blessing in disguise for Malaysian properties,' he added.

Five times cheaper

According to the International Real Estate Federation, properties in Malaysia are five times cheaper than those in Europe because of competitive exchange rates against the euro. Its members report that food, lifestyle, culture and heritage makes the country interesting for foreign buyers are who are mostly from South-East Asia, Europe and the Middle East.

'As the Middle East, especially Dubai, is overheated and overbuilt, investors will look at other countries such as Malaysia to average out their risks. Besides, senior lifestyle relocations are gaining popularity in Japan and South Korea,' said the federation's vice-president for marketing and networking Michael Geh.

Overall property prices in Malaysia have fallen around 10% to 15% since the fourth quarter of last year, while the medium to high-end market is holding out better.

Meanwhile, markets in Singapore, Vietnam, India and China have seen price falls of 20% and 30%.

Source: www.propertywire.com

Asia's‘Eastern promise'

Jaimie Kanwar — 20/02/2009 11:56:00

The global property world is turning its attention to Asia, it has been claimed...

According to Cityscape Asia, the organisers of the world's biggest international real estate investment event, investors are hoping 2009 will be the year to begin picking up potentially ‘undervalued' assets ahead of regional economies emerging from the global financial crisis,

Graham Wood, Group Exhibition Director for Cityscape Asia, the organisers of the world's biggest international real estate investment event, explained: "Though not hobbled by the toxic debts that have paralysed many of their western counterparts, Asia's main economies are not immune to the global downturn.

"Some economists believe, however, that government stimulus packages and interest rate cuts will turn the tide with signs of recovery possibly emerging as early as Q4 2009."

Cityscape Asia has been organised with the assistance of an advisory board, which consists of industry professionals such as; Nathan Lloyd, Executive Vice President and Managing Director, MGM Mirage International; Lawrence D. Sperling, Head of Asia Private Equity, Mercury Partners and Chief Executive Officer, Peak Asia Management; and Nicholas Loup, Managing Director, Grosvenor.

Optimistic

n a joint statement, the board commented, "The past few months have been challenging for all of us working in the real estate industry. But out of the doom and gloom we are optimistic - trying to anticipate where the next opportunities will come from and how we can capitalise on them."

"Established firms, family enterprises and individuals with cash reserves, limited debt and an appetite for risk are expected to be among the first to begin searching the Asian market for bargains in coming months," stated Wood.

"Competition for prime real estate is easing and for investors with money, this could be a once-in-a-lifetime opportunity. Predictions of a rebound in Asian property markets are based on continuing regional urbanisation which has, for example, seen an average eight million Chinese people move to cities annually over the last decade," he added.

Source: www.cityscapeasia.com

Malaysian slump a 'blessing in disguise'?

Jaimie Kanwar — 17/02/2009 10:40:00

The global economic downturn may have provided an unlikely boost for Malaysian foreign property investment...

Speaking to the Malaysia Star, executive director of Malaysia property Inc, Yu Kee Su, suggested that falls in house prices were likely to attract foreign buyers to cities such as Kuala Lumpur, which was now cheaper than other Asian hubs such as Hong Kong and Singapore.

The only possible shortfall, he added, was that capital appreciation had been poor since the onset of the financial crisis - but even this had its benefits.

Mr Yu told the paper: "The shortcoming has indeed become a blessing in disguise for Malaysian properties. Friendly policies such as the exemption of Foreign Investment Committee guidelines and real property gains tax have also helped to promote foreign investment in real estate by 50 to 60 per cent a year between 2005 and 2007".

Source: www.thestar.com

Indian investors eye Malaysia

Catherine Deshayes — 21/01/2009 09:48:00

The economic crisis is good news for high net worth Indian investors who are already considering second homes in Singapore and Malaysia...

The Hindu Times reported that wealthy Indians are attracted to Singapore's and Malaysia's property market as prices in both countries have dipped by 30 to 40 per cent in recent months.

These are considered ‘steal deals' as affluent Indians can now purchase a second property in both countries at domestic rates.

"People are buying property abroad because these are as expensive or sometimes even cheaper than in India, which makes it perfect for getting a second, or a third home," said Jaideep Singh, Head of the India desk at global property consultant Knight Frank.

However, The Hindu Times reported that Dubai is still the most sought after investment destination amongst wealthy Indians.

Source: Property Report Asia

FTSE to include emerging markets

Catherine Deshayes — 14/01/2009 10:14:00

The FTSE Global Real Estate Index Series has been extended to include the property markets of 12 new emerging markets...

As a result, investors will be able to follow the performance of listed property in these countries, which include Brazil, Egypt, Turkey, Malaysia and South Africa.

The indices, which are created in partnership with the European Public Real Estate Association and the National Association of Real Estate Investment Trusts, give buyers the ability to track the price of real estate in a number of global markets.

Head of Alternatives at the FTSE Group Ronnee Ades said that the firm was "pleased" to expand the index, noting that the market for global real estate "has grown significantly in both size and diversity over the past few years", with investors showing a greater interest in "accessing emerging markets".

The Association of British Travel Agents recently revealed that Turkey and Egypt are two destinations that Britons are likely to visit on holiday in 2009, describing them as "big growth areas."

Source: www.propertyshowrooms.com

Malaysian mall madness

Catherine Deshayes — 23/12/2008 10:54:00

Malaysian malls are expected to grow their income further in 2009 with more visitors despite the anticipated slower economy...

President of the Malaysian Association for Shopping and Highrise Complex Management (PPK) Joyce Yap said a higher traffic would cushion the decline in spending.

"However, the extent at which they grow would depend on their tenant mix such as whether they are in fashion, food or if they retail home products," she told Business Times in an interview.

According to Yap, even during the 1997/1998 financial crisis, many shopping complexes had in fact recorded an increase in traffic.

This is because during a downturn, consumers tend to look for places to relax, Yap said.

"During the 1997/1998 crisis, business at food and beverage outlets (within malls) shot up. Visitorship continued on an uptrend in malls, although spend per person had declined," she said.

There is usually a shift in priority of what consumers spend on, but they hardly cut down on food.

Malls that tend to perform better are those that are well designed, offer variety and are well managed.

Shopping complexes that aggressively promote and have retailers who offer more than just discounts also do well. These include providing gifts with purchases, free services or have tie-ups with bank cards to offer additional value.

In the current environment, it is also best not to cut promotional budget. Rather, one should look at improving services and having cross promotions within shopping zones.

"Malls within Mutiara Damansara, or within Bandar Utama and those shopping complexes in the Golden Triangle can do cross-promotions," she said.

General Manager for marketing at Pavilion KL Kung Suan Ai said she believes the Pavilion will do well in 2009 as it is always working on making the mall attractive.

"In 2009, we will improve our concierge service. We are working on retailers providing delivery services to hotels for purchases made by tourists," she said.

With all these in place and its recent Malaysia property Award 2008 for Retail Development, given by the Malaysian Chapter of Fiabci, Pavilion hopes to increase the patronage level to 2.4 million a month in 2009 from 2.2 million a month this year.

Source: Business Times

Material girl

Catherine Deshayes — 23/12/2008 10:44:00

A drop in building material prices in Malaysia is benefiting contractors and the Government...

The slump in building material prices will not only benefit contractors but also save the Government a significant amount of money.

In the middle of this year, the Government agreed to include the variation of price (VOP) clause into design-and-build projects on a 50:50 basis instead of limiting it to conventional contracts.

The list of claimable items was expanded to 11 from five previously due to the escalating prices of building materials. Since then, these prices have declined significantly.

Master Builders Association Malaysia President Ng Kee Leen said the VOP clause allowed either party to claim back any cost savings or shared any cost increases.

"The Government can claim back from contractors if the building material prices had fallen below the base price as at January 1st, 2008," he told StarBiz.

"It is only fair that the Government gets compensated when prices come down (below base) and vice versa for the contractors."

Profit margins were little impacted as these were accounted for in the project bids and contracts, he added.

However, with the exception of petrol prices, the rest of claimable items were currently still above or hovering around the base price, Ng said.

An analyst at a brokerage said compensation to the Government, if any, would not affect contractors' earnings.

For conventional projects, which are on tender basis, the margins are protected from fluctuating material prices as contractors can make a full claim if the costs are higher than a certain threshold.

For design-and-build projects, contractors can benefit about 50 per cent from the price fall, or lose 50 per cent of the price increase.

"Nonetheless, the companies that I've spoken to indicated that they have not made any claims for VOP this year," he said.

A research house, in its report, said the near-term outlook of the construction sector had improved due to the sharp drop in prices of raw materials like steel, oil and bitumen, which would ease margin pressure.

The prospects for replenishing order book had also improved with the Government's pump-priming initiatives.

Earnings of construction companies in the third quarter, however, were still impacted by the higher cost of building materials as some of these inventories were locked in earlier, the research house said.

Source: The Star

Malaysia prices to remain stable?

Catherine Deshayes — 22/12/2008 09:55:00

Malaysia's property prices will reportedly not fall as drastically as in Hong Kong, Singapore and Thailand next year...

James Wong - President of the Association of Valuers and Property Consultants in Private Practice Malaysia (PEPS) - substantiated this evidence at the Malaysia property Summit 2009.

He stated that during the boom period, property prices in the latter three countries' had risen tremendously over a short period while Malaysia's only had a gradual appreciation.

He added, "Hong Kong and Singapore's exposure to the US economy also contributed to a more drastic price downfall during these difficult times."

Wong attributed the softening property market to lower consumer confidence level, with many buyers adopting a wait-and-see strategy in view of uncertain economy.

The low and medium-cost properties would be affected more than the high-end ones.

"In the retail sector there could be an oversupply as there will be additional shopping centres to be completed next year.

"If the economy continues to deteriorate, the hotel sector will also be affected from fewer foreign travellers," he said, adding that the domestic property prices would further moderate next year and were likely to recover in three years.

Sime Darby Property Bhd Managing Director Datuk Tunku Putra Badlishah concurred with Wong that domestic prices were not likely to drop drastically as profit margins of developers were already low and Malaysia had only experienced a gradual appreciation previously.

He also urged developers to produce innovative and quality products in this softer property market.

Source: www.homesoverseas.co.uk/news

Global phenomenon

Catherine Deshayes — 11/11/2008 10:45:00

Worsening economic conditions have now taken a toll on almost every commercial property market in the world, according to a global survey of real estate surveyors...

The past few months have seen a sharp deterioration in performance and demand for real estate in many regions that had previously appeared resilient to the credit crisis, in particular parts of Asia and Eastern Europe.

The slump in commercial property is well established in mature markets such as the UK and US, but a report today from the Royal Institute of Chartered Surveyors shows that there are few property markets in the world that remain unscathed by the economic crisis.

The net balance of movements in global rents turned negative for the first time in the survey's history, led by weakness in the US, Japan, Spain, Ireland and India, while property values also worsened markedly in the third quarter.

The report, which measured sentiment among surveyors about the value and tenant demand for property, singles out the Indian market as being particularly hard hit. The region has attracted many overseas investors hoping to tap into the property needs of a previously booming economy.

Rising interest rates, higher inflation and a lack of liquidity is affecting confidence in the country, says the report, and 45 per cent more surveyors reported a fall in occupier demand compared with six per cent in the last quarter. The balance of surveyors reporting investor purchases plummeted from zero to minus 73.

The biggest slump in capital values has been in Eastern Europe, a marked turnaround considering expectations of growth only three months ago.

Source: The Financial Times

Bust in Bali

Catherine Deshayes — 28/10/2008 09:53:00

The global financial crisis is set to have a severe effect on the property market in Bali with projects being abandoned and businesses going bust, it is predicted...

The Bali property industry is particularly vulnerable because much of the development is funded by US and European banks, one of the island's leading businessmen is warning.

'Property is the sector most at risk,' said I Gde Wiratha, Head of the Bali Chamber of Trade and Industry, who has had a number of crisis meetings with Bali Governor Made Mangku Pastika.

'This sector will be the most vulnerable because it is financed mostly by foreign funds. Most property businesses in Bali, especially villas and hotel development businesses, are owned by foreign investors and financed by US and European banks,' he explained.

He said the impact of the crisis was already being felt at the moment. 'It is in a wait-and-see mode,' he said. Next week Malaysian Finance Minister, Datuk Seri Najib Razak, is expected to announce new measures to try to cushion the effects of the world economic slowdown.

The peak of the crisis in the property sector is likely to take place by the end of this year and early next year, Wiratha added.

'After that there will be many projects we fear could be abandoned in Bali,' said Wiratha, who is also the former chairman of the Bali chapter of the Indonesian Hotels and Restaurants Association.

Only those projects financed by local investors will be able to survive because liquidity in the local banking industry remains strong, he added.

His gloomy predictions come as south East Asian markets continue to suffer from the global finance downturn. Malaysia was closed today for a public holiday but elsewhere in the region shares were plummeting.

Concern is growing that more and more countries will follow Hungary and Ukraine and seek help from the International Monetary Fund.

There is consensus that the current credit crises are more serious and unpredictable than the slump in commodity prices in the 1980s and the 1997 Asian Financial Crisis when Malaysia rejected IMF money.

Source: www.propertywire.com

Islamic banks safe as houses

Catherine Deshayes — 22/10/2008 11:05:00

The Islamic banking system has so far managed to steer clear of the global financial turmoil, thanks to rules that forbid the sort of risky business that is felling mainstream institutions, reports Middle East Online...

Experts are concerned that there could be worst to come for the global industry because of its heavy reliance on property investments and private equity, especially if the turmoil worsens and real assets start to crumble.

"In the current financial turmoil, it is interesting to note that Islamic financing may have prevented a majority of the mess created by the conventional banking and financial institutions," Kuwait Finance House said in a report.

"The outlook for Islamic financing is bright and will likely take the lead in terms of providing funding for major projects as the conventional banking system revaluates its business model."

Because the Islamic banking and finance system incorporate principles of sharia or Islamic law, it has avoided the kind of disaster that is currently absorbing world markets.

Islamic law prohibits the payment and collection of interest, which is seen as a form of gambling, so highly complex instruments such as derivatives and other creative accounting practices are banned.

Transactions must be backed by real assets, thus avoiding repackaged subprime mortgages, and because risk is shared between the bank and the depositor there is an incentive for the institutions to ensure the deal is sound.

"Islamic banking has, thus far, remained positive, despite the current challenging global financial environment," said Zeti Akhtar Aziz, the Central Bank Governor of Malaysia, which is Southeast Asia's leader in Islamic banking.

And Jennifer Chang, a partner at Pricewaterhouse Coopers in the Malaysian capital Kuala Lumpur, said that given the extent of the global crisis, Islamic banks may suffer damage despite their strong position.

"Islamic banks, especially in the Middle East, got heavily into private equity and real estate investments, and a lot of loans may be backed by properties. So if the property market goes down, there will be an impact," she said.

"If a borrower is not able to pay then the bank will foreclose and the question is - can you sell the property in the market and at what value? These are issues which all banks can face."

There have been calls for the conventional banking industry to take a leaf out of the book of Islamic finance, which also shuns investments in gaming, alcohol and pornography in favour of ethical investments.

Source: Middle East Online

New property sites launched

Catherine Deshayes — 10/10/2008 09:49:00

TheMoveChannel.com, the leading international property portal, announces the launch of over 80 country specific property sites...

Each country site features in depth property listings that can be filtered by a multi criteria search engine. The investment opportunities listed include both residential and commercial properties, land and more unique property types.

Developers, estate agents and private owners who advertise with TheMovechannel.com will double their exposure by appearing on both the main TheMovechannel.com international property portal and the relevant country portal that their properties are located in. Advertisers however will not be charged any fee for this additional coverage.

Buyers can gain a valuable insight into countries through the dedicated country news, features, email newsletters plus online buying and selling guides.

Dan Johnson, Managing Director, comments, "We've recognised in the toughening real estate market, investors are adopting a more sophisticated and informed buying process.

"The new portals not only provide detailed information on the property stock available in a particular country but also fill in the gaps in investors' knowledge of a market through reference materials and frequent news updates," added Mr Johnson.

Source: www.themovechannel.com

Malaysia's property market on road to recovery

Catherine Deshayes — 28/08/2008 13:13:00

Malaysia's slow property market should recover in six to nine months, according to The Real Estate and Housing Developers Association.

General confidence amongst would be property buyers in Malaysia have weakened considerably in recent months.

This follows a 41 per cent hike in petrol prices in June, while many prospective buyers are having problems obtaining a mortgage as banks become stricter in approving loans due to a tough economic outlook.

Now, experts are predicting that the market will strengthen when the supply of materials stabilises and people adapt to the higher cost of living.

Chairman of The Real Estate and Housing Developers Association, (REHDA) Datuk Michael K C Yam, said, "In 2009, the cloud will be clearer.

"When there is certainty in fuel price and there is regular cement and steel supply at market-driven prices, I think people can better plan their lives."

A sharp rise in construction costs has seen the price of buying a new-build home in Malaysia shoot up.

For the same reason, developers have lowered the number of residential units they are launching.

The average number of residential units to be launched per developer for the second half of this year is 152 units, less than the 169 units in the same period last year.

Terrace houses remained the most popular, with 50.4 per cent of the market hankering after them, mostly in the £16,000 to £40,000 price range, followed by apartments and condominiums at 15.6 per cent.

Browse Malaysian properties for sale at www.themovechannel.com/property/Malaysia/

Malaysia’s Russian Revolution

Jaimie Kanwar — 22/05/2008 00:00:00

New figures have revealed the true extent of the Russian impact on Malaysia…

The latest figures to be released by the Immigration Department of Malaysia have shown a 51.5% growth in Russian tourist arrivals in April 2008 compared to April 2007.

The growth in Russian tourist arrivals has been steady since the beginning of 2008 with 7.8% growth recorded in Jan 08 (compared to Jan 07), 32.6% in Feb 08 (compared to Feb 07) and 50.8% in Mar 08 (compared to Mar 07).

In total over 1.7 million tourists visited the Southeast Asian country in April 2008 and a 0.8% increase for the period Jan – Apr 08 was recorded compared to the same period last year. Overall Singapore remained the biggest tourist generating market for Malaysia with 867,067 Singaporean nationals visiting the country in April 08; the UK came in at 9th place with 31,952 visitors, 24.5% growth compared to April 07.

“These increases in arrivals certainly confirm Malaysia’s worldwide appeal as a top tourism destination. Steve Worboys, MD of Malaysian property agent Experience International comments, “The increase in tourist arrivals both overall and in the Russian sector spells good news for the Malaysian economy”.

Magnificent Malaysia ‘expanding’

Jaimie Kanwar — 30/04/2008 00:00:00

Malaysia is becoming increasingly attractive to international investors, argues one company…

Malaysia is a fascinating nation that has emerged in recent years as one of the most sustainable economic success stories of the Asian region. It is therefore of no surprise that predictions for the continued expansion of the country’s economy are positive, and that the greater promotion of Malaysia’s appeal as a tourism destination and a second home location is proving highly successful.

Even in these uncertain global economic times, Malaysia is managing to remain in a robust position with average annual GDP appreciation in the region of an incredible 6%. This is because the government remains active in diversifying the economy away from a dependence on the export of raw materials to achieve a status where today, Malaysia’s is an emerging multi-sector economy benefiting from the fact that foreign exchange reserves are healthy and external debt levels are low.

As an oil and gas exporter, Malaysia has benefited significantly in recent years thanks to higher global energy prices, but the government of the nation has not rested on its laurels because of this. Rather it has sought to attract significant and sustainable levels of foreign direct investment through advantageous taxation and fiscal incentives, and the government has been active in the direct promotion of Malaysia as a stunning place to visit as well.

Huge Government support

A spokesperson for Experience International commented: “So far, the government has actively supported foreign direct investment in the real estate industry in particular by abolishing restrictions on the foreign freehold ownership of property, by eliminating real property gains tax and by making the entire property ownership process transparent and straightforward.

“This has drawn great interest to a nation which has an active and affluent property scene and which offers a far lower cost entry point into the regional real estate market compared to other favourites such as Hong Kong and Singapore.

”In addition to this, the government designated 2007 ‘Visit Malaysia’ year, and they maintained a concerted effort of international promotion that pushed visitor numbers up by 10.5% last year alone, according to the World Travel and Tourism Council’s statistics.

“Going forward, this massive promotional push has been backed up by solid ongoing investment into the tourism industry and related infrastructure in Malaysia, and now the nation is beginning to diversify the travel market further in efforts to draw even greater numbers of visitors.

Malaysian market ‘incredibly strong’

Jaimie Kanwar — 03/04/2008 00:00:00

Property investors should think seriously about investing in Malaysia, claims one company…

According to Amberlamb, the Malaysian economy is currently ‘very strong’ and it is likely to build on this positive performance and ‘enjoy economic growth of 5.8 per cent this year’.

A spokesperson for the company commented: Malaysia offers a number of attractions, including an incredibly strong stand alone housing market, with excellent levels of local demand and affordability.

“The Government is actively aiming to attracting foreign property buyers by offering a favourable tax regime, benefits and rights.

“Malaysia is also becoming increasingly popular among international holidaymakers, which means it offers the potential to generate good rental returns”

Investors eye ‘stunning’ Malaysia

Jaimie Kanwar — 10/03/2008 00:00:00

Malaysia has plenty to offer investors and is a "stunning nation", one expert has claimed…

Rhiannon Williamson, director of property investment guide Amberlamb.com, said: "It's a nation with a buoyant and expanding tourism and business environment, which equates to demand, affluence, affordability and a strong potential for profit. It's a stunning nation with well-built, attractive real estate for sale."

”The country's government is doing all it can to attract foreign investors to the nation and this, combined with the other factors make it an attractive prospect.

”Property professionals believe that the country will smoothly ride out any problems created by the US subprime crisis and a possible recession might cause”.

Malaysia has a population of around 26 million and is located to the south of Thailand. The country consists of peninsular Malaysia and the states of Sabah and Sarawak, which are located on the island of Borneo.