Rosnah gives an update on the Pan-Borneo Highway upgrading work

Posted on August 16, 2013 Insightsabah.gov.my By Elaine Mah, Picture by Oliver Majaham

 

Minister of Works Datuk Rosnah Shirlin (right) in discussion with Azlan Jamaluddin, an official in the Ministry of Works (left) and the press conference on the Pan-Borneo Highway

Deputy Minister of Works Datuk Rosnah Shirlin today gave an update on the progress of the upgrading works done on the 2, 239 kilometre-long Pan-Borneo Highway.

The Pan-Borneo Highway was built in 1986 to link the two East Malaysian states of Sabah and Sarawak. It begins in the district of Sematan in Sarawak, and passes through Kuching, Serian, Sri Aman, Sarikei, Sibu, Bintulu, Miri, Limbang, Lawas, Kota Kinabalu, Sandakan and Tawau. As of today, the Pan-Borneo Highway is 93 percent completed, with a remainder of a 50-kilometre missing link from Kalabakan to Serudong.

Through the Highway Network Development Plan Phase 2, the Ministry of Works plans to upgrade the whole stretch of the Pan-Borneo Highway to dual carriageway in stages at an estimated cost of RM22 billion. Upgrading works began in 2011 and is estimated to be completed by 2025.

Speaking at a press conference, Rosnah disclosed that the Pan-Borneo road is fully tarred, with a total of 284. 65 kilometres already upgraded to dual carriageway.

1, 166 kilometres of the Pan-Borneo Highway is located in Sabah. Approximately 9.5 billion of the RM22-billion allocation will be spent to upgrade the highway in the state.

Currently, two main upgrading projects are underway in Sabah – the Petagas-Putatan-Lok Kawi Phase 1A and 1B road and the Donggongon-Papar Phase 1 road – costing over RM369 million. The Ministry expects that the upgrading works on these roads will completed in a little over two years’ time.

Other projects currently done on the Pan-Borneo Highway in Sabah include addressing the black spot problems in certain areas, repairing roads and slopes, and the upgrading of roads in areas that are prone to flooding. There are 86 projects of this nature in the state, incurring a cost of RM277 million. Of this number, 70 projects have already been completed.

The Ministry faces many challenges in completing the Pan-Borneo upgrade, including the problem of heavy vehicles carrying loads that exceed the 38-tonnes load limit, which frequent the Pan-Borneo highway. This causes the roads to become damaged prematurely, thus incurring high maintenance costs.

Rosnah explained that this is a concern of her Ministry. To tackle the issue, the Ministry is in talks with other authorities including the Road Transport Department to find a lasting solution to the problem. The feedback has so far been positive, she said.

“The government is committed to complete and upgrade the Pan-Borneo Highway to increase access to areas of economic growth as well as to cater to the well being of the people,” she said. - Insight Sabah

Source: http://insightsabah.gov.my/article/read/4427

‘Property price hike in Sabah because of TM’

Publiched on August 17, 2013 by Queville To | FreeMalaysiaToday.com

Sabah Developers say Telecom Malaysia is overcharging for providing basic infrastructure and this is affecting property prices.

PENAMPANG: Trouble is brewing between the Sabah Housing and Real Estate Developers Association (Shareda) and Telekom Malaysia Bhd (TM) over charges being imposed for providing basic infrastructure.

Developers claim that the telecommunications giant is passing off cost-sharing charges to all developers and buyers in Sabah and this has increased property prices in the state.

The association wants the federal and state cabinets to step in and determine a fair breakdown of the responsibilities.

Shareda deputy president Chew Sang Hai highlighted the matter during a specially convened press conference at its office here on Friday.

He explained that prior to 2007, in order to subscribe for a telephone fixed line facility, developers were requested by TM to provide basic infrastructure such as public utility manholes following which cables and other equipment would be provided by TM.

However this arrangement changed in 2007 when TM requested developers to share the cost for its installations before the supply of telecommunication cables.

“Their proposal was rejected by developers in West Malaysia and Sarawak and until today the status quo remains unchanged in both West Malaysia and Sarawak,” he said.

In Sabah however, a dialogue session was held between TM and Shareda on April 20, 2009 and  TM agreed to waive the cost-sharing if developers could provide a database of owners to subscribe for fixed line services in the initial period of three years.

This arrangement included 50% confirmed applicants with minimum of one fixed line and one broadband connection per unit for urban residential projects and three fixed lines and one broadband connection per unit for 70% of commercial projects.

The arrangement however is now discretionary and cost-sharing is the order of the day.

Shareda feels that forcing developers to be the marketeers for TM is preposterous and a gross injustice to the people of Sabah.

Chew said his association did not see how TM could take such a stand in Sabah and at the same time dispense with the policy in the peninsula.

“The question prevails as to whether the action taken by TM in Sabah is justifiable for the people of Sabah and developers to bear higher cost than our West Malaysia counterparts,” he asked.

TM, he said, had inevitably contributed to higher property cost in Sabah since the developers had no option but to pass the additional cost incurred to the property buyers.

The cost-sharing charges usually costs between RM1,000 to RM3,000 more per unit of property depending on location.

“TM charge us (and) we have no choice but to charge the house buyers. No one else in Malaysia are paying more (for the property),” he said.

He claimed that TM is making the developers in Sabah a tool to make faster and bigger profits by using the excuse of share capital contribution.

“Name us any business that you do not need any capital investment? The so called capital contribution is actually the capital investments ought to be invested and paid for by TM in order to provide the basic infrastructure before TM can receive payment charges from the end users.

“Such kind of capital investments can be recovered through a nominal factor built on to the billing to their end users such as registration fees, deposit payment or connection charges,” he said.

Since recently passing a resolution to name and shame TM, Shareda has also urged all real estate developers in the state not to pay the cost-sharing (Capital Contribution) bills issued by TM.

“It’s rather ridiculous … we have been very accommodating all this while. Enough is enough,” he said.

On legal implication of such a move, Chew said Shareda had prior to this conducted its own study on such concerns and found that there are no existing law which allows TM to impose such charges.

He further noted that unlike in the past house buyers  or end users could now source for alternative telco providers for telecommunication services.

He claimed that there was evidence of Shareda members being charged by TM more than RM5.3 million for a total of 27 projects.

Shareda has also appealed to State Ministry of Local Government and Housing to exclude TM representatives from the development council as well as issue Occupational Certificates as soon as developers had constructed the basic utility infrastructure for TM.

Source: http://www.freemalaysiatoday.com/category/nation/2013/08/17/property-price-hike-in-sabah-because-of-tm/

Is there a Property Bubble Danger in Kota Kinabalu?

Published on November 17, 2012 by discoverborneo.com

Kota Kinabalu, in Malaysian north Borneo, is an emerging property market. Property has been booming. Especially among condo developments. In the last 5 years the number of condos and apartments in Kota Kinbalu has mushroomed. There are 1000's of units on the market for sale currently with the average 1000 sq ft condo in KK is priced between RM400,000 to RM800,000.

The price of property in Kota Kinabalu has apparently doubled in the last 4 years and is now beyond the reach of all but the very high-income groups.

This is because in Kota Kinabalu the average wage (and the average standard of living), for low and middle class families, is still quite stagnant. It seems inflation is outstripping the standard of living for all but the high income groups.

Therefore buyers will have to rely on foreigners looking for "lifestyle" properties if they want to sell and compete with Bali, Phuket, Koh Samui, and so on as places foreigners like to buy "lifestyle" properties.

It is likely the properties will attract low rental yields on the rental market as most renters cannot afford and may be traded at a very slow pace on the secondary market. It is predicted that the secondary market for these apartments in the next 2 to 5 years will be extremely slow moving. Therefore investors it is likely many will stop investing in KK apartments and look elsewhere for better prospects which will leave many local buyers "hanging".

Will this lead to a bubble burst?

This depends on the "holding power" of the initial buyers. Any new buyers who might not have "holding power" will be hurt. Any potential buyers thinking of entering the market better be careful.

How many apartments developments in KK?

It is estimated that the numbers have more than double in the last 5 years. Prior to 2007 it seems there were less than 30 medium cost apartments and condo developments in KK. Between 2008 and 2012 an additional 40 medium cost apartments and condo developments have been built or are currently under construction, with an additional 10+ in planning.

What is the affordability for local residents?

According to this article on Malaysia's Property Bubble from the New Straits Times:

High Income family earning RM14,000 per month can afford property up to RM550,000 with repayments of RM3000 per month.

Middle Income family earning RM8,000 per month can afford property up to RM390,000 with repayments of RM1800 per month.

Low Income family earning RM3,000 per month can afford property up to RM140,000 with repayments of RM700 per month.

What is the population of Kota Kinabalu, and what is the average salary?

550,000 people live in KK. The population grows at a steady rate, though not as fast as the speed at which condos are built in the last 4 years. The average worker salary is RM1200 a month. The average middle class professional salary in KK is RM2000 to RM5000 a year.

What is the rental price of Kota Kinabalu aparments?

Most people in KK live in low cost properties, or kampung houses. Mostly sharing rooms to keep costs lower. The average worker salary is RM1200 a month, and they can afford to spend RM250 on sharing a room.

For the high end earners, the rental prices vary. It is easy to find good condo aparments in KK renting for RM1500 a month. They are in plentiful supply and many remain empty.

Currently it is generally agreed that the average rental yield across newly completed apartments in KK is about 30% less than what it would cost to service a 90% mortgage on such a property over 30 years.

Who is buying Kota Kinabalu apartments?

A diverse mix of buyers :
- Corporations
- International Investment firms (through lawyers)
- Palm oil millionnaires
- Buy-to-flip investors
- Buy-to-let investors
- Owner-occupiers
- Property developers

In some properties the purchasers are the developers themselves. In one condo we visited there are some 15 unsold apartments held by the developer. The developer has priced them at over RM600,000. This is despite the fact that others in the same block are selling at less that RM550,000.

What is hot money?

Since the 2008 global financial crisis the price of property in KK has doubled. Why?

Since the 2008 Global Financial Crisis, investors have sought to invest in emerging markets as a way of diversifying away from investments in slow-growing American and European economies. Unfortunately, the vast ocean of "hot money" that has poured into emerging markets has created a massive economic bubble throughout nearly the entire emerging world, including overheating economies and property bubbles everywhere from Brazil to Indonesia to Turkey: http://www.thebubblebubble.com/emerging-markets-bubble/

What is a property bubble?

From WIKI article on Real Estate Bubbles: A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline.

Do people in Kota Kinabalu know what a property bubble is?
Yes, they do. But like with all property bubbles many people think that "this time is different". Fear and greed are pushing and pulling. Currently greed is winning and people with spare cash are buying property in the hopes of double-digit gains. Unfortunately those who want to jump on that bandwagon in 2012 or 2013 may be sticking their money where it is going to hurt.

Why do property bubbles hurt?

Property bubbles cause economic hardships not just for those who bought when the price was high (and who then have to face losses), but also for the entire economy.

This happenned in Japan in 1991, and then across the world in 2008.

The consequences have been severe. Real estate bubbles are invariably followed by severe price decreases (also known as a house price crash) that can result in many owners holding mortgages that exceed the value of their homes. As of the end of 2010, 11.1 million residential properties, or 23.1% of all U.S. homes, were in negative equity at Dec. 31, 2010. Commercial property values remain around 35% below their mid-2007 peak in the United Kingdom.

See this article on the effects of the Japan 1991 crash: Take it from Japan: Bubbles Hurt

Is the Malaysian government taking steps to avoid a bubble burst?

Yes, many have expressed their worries and they do not want a locals to face unaffordable housing, nor do they want buyers and banks facing a bubble burst:
http://malaysiapropertyinvestment.com/blog/malaysia-property-prices-crazy-daim/

The following measures are being taken:
- Bank Negara has tightened up lending so that anyone buying their 3rd property cannot get a loan more than 70% of the price of the property. See Malaysia Takes Measures to avoid Property Bubble.
- The government has imposed a 5% capital gains tax on property starting in 2013. SeeMalaysian Property Downgraded.
- The government plans to build more low cost affordable housing for the vast majority of the population who have been completely priced out of the market. See Malaysian Government Committed to Building More Affordable Homes.
- In Sabah the government has recently imposed that 30% of all new developments to be priced below RM250,000. See Affordable Housing Units Underway in Sabah.

LIST OF KOTA KINABALU APARTMENT AND CONDO:

On Sale or Under construction or Recently Completed Apartment and Condo in Kota Kinabalu

1. 1 Sulaman
2. Alam Damai
3. Angkasa Apartment
4. Bayshore Phase 3
5. Cyber City Apartments 2
6. Hartamas Height
7. KK City Waterfront
8. KK Times Square Phase 2 - The Loft
9. Peak Vista Tower B
10. Puncak Luyang Tower B
11. Putatan Platinum Apartment
12. Surian Residence Condo
13. University Condo Apartment 2
14. Canggih Heights
15. The Pinnacle
16. 8 Avenue
17. Bay 21 Condo
18. D'Vantage Condo
19. Elements at Likas Condo
20. Jade Residence Condo
21. Jesselton Villa Condo
22. Legenda Saujana Apartment
23. Millennium Residency Apartment
24. Peak Vista Tower A Condo
25. Puncak Menggatal Condo
26. R55 Condo
27. Signal Hill Residence Condo
28. Taman Nelly Studio Condo
29. Suritz Condo
30. Lido 4 Seasons
31. Inti Suites
32. Aeropod
33. Jesselton Residences
34. Kasigui Tower - Central Million Properties
35. Pacific City / Pacific Parade / Pacific Residences
36. 1 Likas Condo
37. The Bay Residences Condo
38. 1 Borneo
39. Grace Gardens
40. Cyber City Apartments 1
41. Hing Tower Condo
42. University Apartments 1
43. University Apartments 2
44. University Condo Apartments 1

Proposed/Planned Apartment and Condo in Kota Kinabalu

1. Alam Bersatu Condo
2. C Park suites
3. Condo - Bina Puri / Kepayan Ridge
4. Condo - Fine Landmark
5. Condo - IJM Land / Likas Hill
6. Condo - New Age Portfolio
7. KK City Waterfront Phase 2
8. Kurnia Perdana Apartment Phase 2
9. Peak SOHO Condo
10. Puri Fantasi - CL Pertama Development
11. Riverside Condo - KK Land
12. University Prime Condo
13. Titijaya Sdn Bhd - 1. Mixed waterfront containing serviced apartments, shop-offices and a hotel / 2. Green residential enclave with bungalows and condominiums near Tun Fuad Stephen Park.

Existing Apartment and Condo in Kota Kinabalu

1. Bayshore Condo
2. Beverly Hills Apartment
3. Bundusan Villa Apartment
4. City Apartments
5. Colonnades Condo
6. Country Heights Apartments
7. Delta Heights Apartment
8. Eden Heights Condo
9. Fairway Mansion Condo
10. Grace Court Apartment
11. Grace Ville Apartment
12. Habiba Suites
13. Hing Apartment
14. Indah Court Apartment
15. Jesselton Condo
16. Kendara Court Apartment
17. Kurnia Perdana Residence Apartment
18. Lucky Heights Condo
19. Marina Court Condo
20. Nounton Apartment
21. Pearl Tower Condo
22. Public Jaya Apartment
23. Puncak Luyang Tower A Condo
24. Puteri Damai Condo
25. Radiant Court Condo
26. Radiant Masoniette
27. Radiant Tower Condo
28. Rainfield Court Apartment
29. Signal Hill Tower Condo
30. Taman Bakti Ikhlas Apartment
31. Taman Ketiau Apartment
32. Taman Penampang Apartment
33. Taman Seri Borneo Condo
34. Taman Wangsa Apartment
35. Tanjung Aru Condo
36. The Peak Condo
37. Waikiki Condo

Source: http://www.discoverborneo.com/cgi-bin/mt/mt-search.cgi?tag=property&blog_id=2&IncludeBlogs=2

Three New Roads to be Built soon
- to alleviate traffic congestion in Inanam

Published on: Wednesday, July 17, 2013 by Daily Express

Kota Kinabalu: Three new roads will be built or upgraded soon as a short-term solution to alleviate traffic congestion in Inanam.

Sabah Public Works Department (PWD) Director Datuk John Anthony said work on one of the roads, Jalan Nountun-Bukit Padang, is already underway and expected to be completed by end of next year.

The 2.6km single carriageway road is estimated to cost the State Government RM9 million.

"Due to congestion especially during peak hours, we want to provide an alternative for people who live in Kionsom or Inanam to go in and out of the area without having to travel on Jalan Lintas.

"Road users from Kionsom also could avoid using the Inanam roundabout and, instead, use the alternative road (the Jalan Nountun Bukit Padang) in the future," said Anthony.

The Jalan Nountun Bukit Padang will start from Taman Khidmat in Bukit Padang and end in the flat housing area near Taman Nelly in Kolombong.

Anthony was speaking during a project inspection and site visit with Assistant Minister of Infrastructure Development, Datuk Ghulam Haidar Khan Bahadar, in Inanam.

"As a long-term solution, we would upgrade the existing Jalan Minintod-Kibabaig into a dual carriageway as well as build a flyover to replace the roundabout there," he said.

Other than the Jalan Nountun-Bukit Padang, plans are afoot for the construction of another road near St. Catherine Church to the Inanam tamu site that would redistribute some of the traffic to and from Kionsom area.

"It is less than half a kilometre, a short stretch but a very important stretch because it can divert some of the traffic," said Anthony.

The cost of the single carriageway stretch is estimated to be around RM500,000. It is expected to be completed within this year.

Meanwhile, the third road will bypass the Inanam roundabout and will be built over the existing Kampung Sinulihan road.

The Kionsom Bypass, as it would be called, would be a 1.5km dual carriageway which would be built from behind the Taipan area in Inanam and would meet the Kionsom road at the end of the Kampung Sinulihan road.

"So far, the design for the road has been completed. But we would probably only start building early next year once funds are made available," said PWD Deputy Director (Road Building) Edward Liew.

"The cost for the Kionsom Bypass is around RM15 million because although it is only 1.5km, it would be a dual carriageway compared to Jalan Nountun Bukit Padang's 2.6km which is a single carriageway costing only about RM9 million," said Anthony.

There are more than 10,000 people living in the Kionsom area and the number is expected to increase with the construction of more housing projects in the area. The large population also translates to more severe traffic congestion if nothing is done to alleviate it.

"It is hoped therefore that these projects would help solve the problems in the short term as we plan for long term solutions to them," said Anthony.

source: http://www.dailyexpress.com.my/news.cfm?NewsID=86124

Buyers compensated RM1.5m for delay

Published on: Tuesday, July 23, 2013 by Daily Express 

Kota Kinabalu: Syarikat Perumahan Negara Berhad (SPNB) and joint venture partner Kinsadana Sdn Bhd, recently, forked out RM1.5 million to pay 125 buyers of Putatan Platinum Apartment for late delivery of the property.

The payment was made to the buyers at Wisma Kinsabina on July 20 where affected buyers were each given a cheque.

Francis Goh, Managing Director of Kinsadana and President of Sabah Housing and Real Estate Developers Association (Shareda) said house buyers must know their rights.

He said this in reference to recent complaints from purchasers when they were caught unaware of late charges being imposed on them.

"When a purchaser fails to make the progressive payment for more than 14 days it has become due, the developer has the right to charge the late interest charges into the particular progressive claim.

"And we, in good faith, will give purchasers notice up to 21 days," he said.

Under the standard Sales and Purchase Agreement, he said, buyers are given two months grace period to get their loan agreement signed and pay up any progressive claims due.

"They have to proceed with the necessary bank requirements as soon as possible to avoid unnecessary hiccups along the way such as payment of any differential sums," he said.

They also, he said, must urge the lawyer to process the loan agreement as soon as possible.

Thus, purchasers cannot deny that they are not the party involved as the loan and the unit belongs to them, he said.

But he stressed that the developers have to pay the buyers for any delay in the delivery of vacant possession of the property.

The amount, Goh said, is calculated after the completion period of 36 months at the rate of 8 per cent per annum of the purchase price commencing immediately from the expiry date until the date of issuance of Occupation Certificate (OC) and delivery of vacant possession to the purchasers.

Every developer is required to use the standard form of Sales and Purchase Agreement, which is approved by the Housing Controller, he said.

"But under circumstances that are beyond the developer's control and as members of Shareda who abide by the rules and regulations, we will honour the late interest payment to all qualified buyers," he said.

Meanwhile, SPNB Branch Manager, Mohd Hafiz Sua thanked Goh who assisted SPNB to complete the building.

He said the delay was unforeseen on SPNB's part.

source: http://www.dailyexpress.com.my/news.cfm?NewsID=86185

 Building a landmark in Sabah

Published: Tuesday July 23, 2013 by The Star

Tropicana Landmark, a high-rise residential development in Kota Kinabalu, garnered keen interest and positive response at its recent roadshow at 1 Borneo Hypermall/City Mall and the Property Investment and Home Expo (Pihex).

The luxury development by Tropicana Corporation Bhd, ­formerly known as Dijaya Corporation Bhd, achieved a 50% take-up rate during its special preview.

Tropicana Landmark offers residents an eco-contemporary architecture and custom designed resort-style elements with beautifully crafted stone walls and tranquil water feature at the lobby area.

The fifth-level sky deck invites residents to relax at the indoor swimming pool, gym, sauna, squash court, sky lounge and sky garden. With a gross development value of RM101mil, Tropicana Landmark will occupy 0.53ha of leasehold land within Bundusan in Kota Kinabalu.

The 19-storey condominium overlooks Mount Kinabalu and the Sabah Golf & Country Club. It is accessible via the Luyang, Kolombong and Bundusan Highway. Modern conveniences such as the Lido Market, City Hall, Damai & Lintas Commercial Centre, Sabah Medical Centre and Luyang Clinic are just a short stroll away.

Living density is kept low with only 149 suites starting from the sixth floor to the penthouse at the 19th floor.

Each suite encompasses a total built-up area ranging from 1,214 sq ft to 2,753 sq ft and is designed to maximise daylight while providing views of Sabah Golf & Country Club, Mount Kinabalu and Tun Fuad Stephen Leisure Park.

“Sabah is one of the key growth corridors in the country. Kota Kinabalu, in particular, has been experiencing a hive of building activities.

“Tropicana Landmark is our first venture into East Malaysia thus catapulting the Tropicana brand beyond Peninsular Malaysia. We will continue to deliver cutting-edge concepts and expand our horizons thus reinforcing our position as a game-changer in the industry, said group managing director Datuk Dickson Tan.

Also included in each unit were three units of air-conditioners, two units of water heater and built-in kitchen cabinets.

Tropicana Landmark is on target for completion in the third quarter of next year.

Source:  http://www.thestar.com.my/News/Community/2013/07/23/Building-a-landmark-in-Sabah-Project-marks-developers-first-foray-into-Kota-Kinabalu.aspx

Sagajuta selling Novotel Kota Kinabalu for RM79m

Published on Jul 18, 2013 by PropertyGuru.com.my

Sagajuta Sabah Sdn Bhd, a private entity owned by Datuk Raymond Chan Boon Siew, is selling the Novotel Kota Kinabalu 1Borneo Hotel at an indicative price of RM79 million.

The 16-storey four-star hotel with 269 rooms is being disposed by Sagajuta, which is also owned by Mohd Nazifuddin Najib and Chu Li Tan, among others. According to sources, the hotel has found nine interested bidders so far.

Sabah-based Sagajuta, which is mainly a property development company, also owns the leasehold shopping complex 1Borneo Hypermall in Jalan Sulaman at Kota Kinabalu.

Its recent deals include the 1Likas construction project which has a contract value of RM776 million and the 1Sulaman project, with a gross development value of RM500 million.

According to The Star, originally, Sagajuta was meant to be injected into Chan’s public-listed company Naim Indah. In fact, Naim Indah planned to buy a 60 percent stake in Sagajuta for RM240 million.

However, Naim Indah axed the proposed acquisition agreement on 11 June since “Sagajuta’s rationalising exercise of disposing their assets for immediate funding of Sagajuta group’s working capital requirements” would “inevitably affect the injection value”.

source: http://www.propertyguru.com.my/property-news/2013/7/10175/sagajuta-selling-novotel-kota-kinabalu-for-rm79m

Shareda: Guidelines needed on affordable homes

Published on: Monday, July 08, 2013

Kota Kinabalu: The Sabah Housing and Real Estate Developers Association (Shareda) is proposing a Guidelines and Standards for the 10,000 affordable houses to be built in Sabah in the next five years.

It's President Francis Goh said the commitment of building 10,000 units of Shareda-MLGH affordable homes was derived after a thorough checking with the association's members that there would be 22 affordable home projects soon to be implemented.

He said Shareda would be meeting personally with the each developer to iron out issues in order for the scheme to become a reality. He believed that it would take about a month for Shareda to complete everything before presenting the proposal to the Ministry.

"After I was elected as President on March 27, 2013, Shareda received a letter from MLGH to impose a 30 per cent quota for affordable homes that must be incorporated in every of our future development plan submission.

"I managed to convince the Ministry that Shareda members had in the past built a lot of affordable homes but it was not announced publicly.

"Under my leadership, I vouched to Minister Datuk Hajiji Noor that we are willing to commit and build 10,000 units of affordable homes for the state in the next five years.

"Shareda is willing to commit the above numbers because about 16,052 units of affordable homes were built since 2010," he said.

Goh said that currently, 15,030 units were already completed and another 1,022 units under progress and expected to be ready before end of 2013.

"Due to the above evidence, the Minister is kind enough to accept our offer and, thus, the said affordable home policy was then retracted," he said, adding that Shareda's commitment of 10,000 units was without applying any force towards its members. He said it had also come to his attention that some developers were also building landed properties and medium cost apartments 10km within the city centre. However, due to the expensive land cost, they have to sell these at more than RM300,000 to RM400,000 per unit.

"For this type of products, our fellow Shareda members may now have a good opportunity to joint venture with PR1MA Berhad, a company incorporated under Prime Minister Department who will identify feasible locations in the major township like Kota Kinabalu, Sandakan, Tawau and Lahad Dato to build another 20,000 units of affordable homes with their selling price set from RM150,000 to RM400,000," he said.

According to him, Shareda was willing to commit and build more affordable homes for Sabah as it acknowledged the fact that the lower income earner earning less than RM2,500 per month have encountered mounting difficulties in purchasing a house which normally sells more than RM350,000 especially in the urban area.

The main reason for the price hike on properties was due to expensive land acquisition, he said. "Despite our commitment to the Ministry, Shareda always see the investment of developing affordable homes is fulfilling our corporate social responsibility rather than profit motivated.

"Thus, to ensure the above commitment can be fulfilled, the most important criteria have always lingered in developer's mind is the marketing risk," he said.

Goh advised Shareda members who wished to implement the same affordable home schemes in the same location, then they should reconsider as to avoid market competition or they can even joint venture with GLC like SPNB, JPN or PR1MA Berhad to reduce their market risks.

"I have to thank SPNB, JPN and PR1MA Berhad after a meeting with them, they fully agreed with my proposal that in order to complement those Government linked companies not to waste their valuable time in finding good feasible land to implement more affordable home projects, why not they sit down with Shareda members and tell us where you want to build as most of our members may have good feasible land to enter into a joint venture with the respective Government linked companies," he said.

It is for this reason, he had also consulted and discussed with all the key players such like SPNB, JPN, PR1MA Berhad to join force and work hand in hand to collaborate with the Ministry of Local Government so that many completed affordable home projects not being sold or occupied in West Malaysia will not happen here in Sabah.

Towards this end, Goh reiterated that Shareda had proposed that a special task force committee to be formed by the Ministry.

The MLGH affordable home special task force, he said may include industrial players and affordable home providers as committee members to collaborate closely with the Ministry in monitoring the overall progress, performance and speed for the implementation of affordable home schemes in Sabah.

"The special task force should assist all developers and Government linked companies to expedite the approval of development orders and to create certain incentives to be given back to those developers who assist the Government to build more affordable homes.

"The task force shall oversee the design, location, size and pricing as to fit the needs of the lower income group.

Guidelines and requirements must be set property to fit all affordable home providers without any conflict of interest," he said.

Goh also thanked the speakers from three respective key players of affordable homes providers namely the SPNB Sabah Branch head, Reggie Sua @ Mohd. Haffiz Sua, Haji Muzafar Mohamed who is the Vice President, Planning and Development for PR1MA Berhad and Datuk Mohamad Yusoff Ghazali, Deputy Director of Jabatan Perumahan Negara.

Source: http://www.dailyexpress.com.my/news.cfm?NewsID=85981

Four more flyovers for KK – PWD

by Nancy Lai. Posted on June 26, 2013, Wednesday by Borneo Post

KOTA KINABALU: The State Public Works Department (PWD) has proposed six flyovers for the state capital as measures to ease traffic congestion.

According to its deputy director Haji Amrullah Kamal, the Karamunsing and Petagas flyovers have been built, so next on the list are the ones at Bukit Padang and Mile 5, Inanam.

Reiterating state JKR director Datuk John Anthony’s announcement last week, Amrullah disclosed that the remaining two flyovers would be located at the Lido traffic lights and the Penampang bypass traffic lights.

Speaking to reporters after officiating at the “JKR Sabah Wayleave Management’ dialogue yesterday, Amrullah said that PWD was also considering upgrading the six kilometer road from the Inanam Mile 5 traffic lights all the way to the KKIA into three lanes.

This is because the road is supposed to be a short cut to the airport but is congested most of the time, he lamented.

“We want to ensure that this road is passable all the time. The cost for the two new flyovers and road widening project is expected to be more than RM200 million,” he said, adding that the projects were supposed to have been approved and were expected to commence after the funding was received.

“If we have extra funding, we may consider a flyover at Foh Sang,” he said and expressed hope for the Works Minister and Deputy Minister to be able to attend the state PWD’s dialogue on traffic congestion in the central business district scheduled for July 23.

This way, they would be able to better understand the issue and the urgent need to resolve the traffic congestion in the state capital, he said.

Last week, John, during the PWD Road Day press conference, announced that three more flyovers would be built to help reduce traffic congestion plaguing three road junctions in the city.

He said that inefficiency of the traffic lights system in the city is among the main causes of traffic jam.

All traffic merge at junctions and coupled with an inefficient traffic management system, the whole road system suffers major congestion as a consequence, he said.

He said the PWD would be looking at three junctions, namely the junction at Batu 5 Inanam, the junction in Bukit Padang and the Jalan Lintas-Penampang junction.

PWD believed that an immediate solution to these problems would be to build flyovers like the ones in Kepayan near the airport and Karamunsing, he said.

Meanwhile on the wayleave management dialogue, Amrullah said that it was the brainchild of John who wanted the public and stakeholders to have a better understanding and awareness of the matter.

The PWD director wanted an outreach programme and this is part of six dialogue topics to be discussed, namely Road Safety on Temporary Work Zone, Wayleave Management, Material for Road Construction, Traffic Congestion Problem in Urban Areas, Best Practice of Road Planning, Design, Construction and Maintenance and Overloading on PWD Road Network, Amrullah disclosed.

He said that the participants would come from various sectors such as road planners, consultants, contractors, road material suppliers, developers, road users like members of the East Malaysia Planters Association (EMPA), government agencies and interested members of the public.

“We want the public to be aware that excavation works along PWD roads requires an approved wayleave. So if they come across any such activity which they suspect is being done without the approval, they can SMS the information to 088-244333.

“PWD will immediately send a team to check if the contractor has wayleave or not. We will find out what they want to do, how they will implement it and how their project will affect the public. If it does not affect the public, we will allow them to carry out their work,” he stressed.

He also said that it was important for developers to know the proper way to connect their road to the main road in order not to inconvenience other road users.

“So we are here to see that the other road users are not being deprived of the road when the development is connected. We work in tandem with whoever the stake holders are,” he said.

Amrullah also expressed hope that PWD, would, one day in the future be empowered with the authority to issue immediate summons on those who break their law especially in the aspect of vehicle overloading as this action damages the roads.

For now, they rely on the Road and Transport Department (RTD) or the police to issue the necessary summonses.

“For illegal connection to PWD roads, we will close the roads but sometimes that action is of course too harsh. When we close, they will challenge us and when they do we have to go to the court,” he said.

Source: http://www.theborneopost.com/2013/06/26/four-more-flyovers-for-kk-pwd/#ixzz2XHvc7v4O

3-lane Petagas-Lok Kawi carriageway: 

Work to start

Published on: Wednesday, March 27, 2013 by Daily Express

Kota Kinabalu: The Petagas-Lok Kawi road will be upgraded to a three-lane carriageway starting early April so as to ease traffic congestion there, said Deputy Chief Minister Datuk Seri Yahya Hussin.

He said the Federal-funded upgrading project would cost RM136.2 million and expected to be completed in October, 2015. "The additional lane is hoped to overcome the serious congestion," he said at the leader-with-people session in Petagas. 

The upgrading project, he said, would also involve the construction of a pedestrian overhead bridge in front of the Putatan train station.

He said the traffic congestion along the Putatan road is getting too serious that the residents' daily activities have been greatly affected.

"It is for this reason that we have to widen the road so as to solve the problem," he said.
He blamed the traffic congestion on rapid development in Putatan under the Barisan Nasional (BN) Government.

However, the three-lane carriageway, he said, is proof of the BN's concern over the problem faced not only by residents but also motorists going through the stretch.

In another development he said the government will be constructing a new school, SMK Petagas very soon.

The new school, he said, is to accommodate the influx of students in secondary schools.


There are two secondary schools in Putatan namely SMK Putatan and SMK Tansau.    

UEM Land ready for maiden foray into Sabah

Posted on 13 June 2013 by thesundaily.com
Eva Yeong

From left: UEM Land CFO Azhar Othman, chairman Tan Sri Dr Ahmad Tajuddin Ali and Wan Abdullah speaking at a press conference after the group's AGM yesterday. ADIB RAWI/theSun

PETALING JAYA (June 13, 2013): UEM Land Holdings Bhd, which is likely to surpass its target of RM3 billion in new property sales this year, is eyeing to start an urban development project in Kota Kinabalu, Sabah.

This foray into Sabah, if it materialises, underscores the group's strategy to expand its portfolio into new markets as it seeks to sustain its impressive growth rate.

"The Kota Kinabalu deal is on the table, but until and unless our partners are ready to sign on the dotted line, we cannot share details. Hopefully by year-end, we will have something," managing director and CEO Datuk Wan Abdullah Wan Ibrahim (pix) told reporters after the group's AGM yesterday.

A deal will mark the group's maiden entry into Sabah's bustling property market.

Wan Abdullah said the potential size of the undisclosed Kota Kinabalu project is between 10 acres and 30 acres.

Currently, the bulk of UEM Land projects is in Iskandar Malaysia, Johor. The group, however, has been busy scouting outside its home base and has identified Penang as a target.

"We're on an acquisition trail. We're still looking into new geographies, but we'll go through a stringent process to make sure we pick the right location for the right product," Wan Abdullah said.

The group is also looking at new opportunities overseas such as in India, Indonesia and Australia.

For the first three months of 2013 (Q1 2013), UEM Land, which is changing its name to UEM Sunrise Bhd pending approvals from the authorities, sold RM1.39 billion worth of new properties. A project in Canada contributed RM431 million in sales.

An estimated 59% of this new sales was contributed from its Nusajaya projects.

The group's unbilled sales jumped to RM3.55 billion in Q1 2013 from RM2.28 billion in Q4 2012.

"In order for us to achieve our growth targets, we certainly need to explore other locations. As you can see from our five-year compounded annual growth rate (sales 77%, revenue 40%), it is quite phenomenal. We want to continue this wave of growth and in order to achieve and sustain that kind of growth, we need to look at new geographies,'' Wan Abdullah said.

This year, the group expects to launch new residential and commercial properties with a total gross development value (GDV) of RM4 billion, which is expected to contribute towards its targeted sales of RM3 billion.

"To enhance our composition of revenue and bottomline, we need to enhance our recurring income. This will probably be more driven organically. We're not going to spend too much capital expenditure on major acquisition of assets for recurring income. We'd rather look at it as organic growth. We've got a few malls under construction and those will all fit into our recurring income portfolio," he said.

The group's current recurring income stands at 8% of total income and its total landbank is 10,600 acres.

RM170m Lido Avenue set to change the skyline

Published on: Sunday, June 09, 2013 by Daily Express

Kota Kinabalu: Lido Avenue, a mixed commercial residential and commercial development with a gross development value of RM170 million, is set to change the skyline along Jalan Lintas in Lido, near here.
Lido Avenue is developer Mega City Development Sdn Bhd's maiden project as it debuts in the property market.

According to General Manager Kevin Ng, Lido Avenue, a high-rise development located strategically in the Lido area would see 15 units of shop/office lot and 228 residential units on a 26-storey twin tower building.

"It is visible from three major roads, namely Jalan Lintas, Jalan Pintas and Jalan Penampang and has three access roads leading to Jalan Lintas," he said, adding that it is less than five kilometres from the Kota Kinabalu International Airport and 10 minutes' drive to the city centre.

It has two lobbies, one for each tower, with three lifts servicing each tower, while the first to fifth levels are covered car parks with a total of 519 parking bays allocated for the buyers, he said.

On the residential offerings, he said they have four types of typical layout ranging from 1,628 sq ft to the smallest 1,268 sq ft.

"We feel the range offered will suit a wide variety of purchasers' preferences.
The density of each floor is very low, only six units per floor for each block," he said.
Another unique design, said Ng, was the absence of "shared or party walls" with neighbouring units, essentially making each a "detached" unit.

"This design, though costlier to construct, offers total privacy for its discerning residents," he said.

He said the development that was launched by Local Government and Housing Minister Datuk Hajiji Noor, Saturday, is expected to be completed within three years.  

source: http://www.dailyexpress.com.my/news.cfm?NewsID=85531