The Star Online: Business
The Star Online: Business |
- Homes measuring 1,000 to 1,500 sq ft are affordable now
- Newspapers and radio still on growth path
- Two divisions boost Scomi Q1 profit
| Homes measuring 1,000 to 1,500 sq ft are affordable now Posted: The trend for developers in Penang is to build smaller-sized stratified homes which are considered affordable in view of a cooling property market. Henry Butcher Malaysia (Penang) vice-president Shawn Ong says in an interview that the trend started last year. "It is easier to market a 1,000 sq ft condominium priced at RM550 per sq ft compared with a similarly priced 2,000 sq ft unit, as the smaller unit falls within the income range of most investors. "The smaller stratified homes usually have built-up areas ranging between 1,000 sq ft and 1,500 sq ft, and are priced from RM500 per sq ft onwards. "There is at least a 20% difference between the asking price and the actual transacted price for sub-sales properties," Ong says. In the North-East district, the trend of developing "buy-to-let" high-rise properties, which have proven to be successful in United States, Hong Kong, and Singapore has caught on in prime locations such as Tanjung Tokong. Developers such as BSG Property, the property arm of Boon Siew Group, see opportunities in building corporate suites which can be leased out for guaranteed returns in view of the growing tourism market and the shortage of hotel rooms in George Town. Most of the smaller sized stratified properties, with built-up areas between 1,000 sq ft and 1,500 sq ft, are being developed in the South-West district of Penang and are priced between RM530 per sq ft and over RM600 per sq ft. For the second half of 2013, some RM1.32bil worth of smaller affordable condominiums are being developed in the South-West district, which comprises residential-cum-commercial neighbourhoods such as Batu Maung, Balik Pulau, Sungai Ara, Bayan Lepas and Relau. Ideal Property Sdn Bhd is launching the second phase of Imperial Residences which is located on a six-acre site in Sungai Ara. It will have a gross development value of RM470mil and the RM250mil Solaria condominium scheme in Bayan Lepas later this year. "There are 816 condominiums in the three towers for the second phase of Imperial Residences while the Solaria project comprises 285 condominiums and 20 double-storey shops," its managing director Datuk Alex Ooi says. The Solaria units have built-up areas of 1,130 sq ft and are priced from RM600 per sq ft onwards. Ideal is currently undertaking some 1,200 condominiums in Bayan Lepas and Sungai Ara, which are over 80% sold, and are scheduled for completion in three years. These are condominiums with built-up areas of 1,000 sq ft and above and are priced from RM400 per sq ft onwards. SP Setia Bhd plans to launch the RM600mil Setia Sky Vista condominium project later this year in Relau. "The Setia Sky Vista, comprising 400 condominiums in four blocks, is located on a 15-acre site," SP Setia Property (North) general manager Khoo Teck Chong says. The built-up areas of the units ranged between 973 sq ft and 1,500 sq ft and the selling price starts from RM550 per sq ft. Khoo says the group will also be launching the RM140mil Setia V Residence Tower B on a 1.8-acre site in the fourth quarter this year. Besides these projects, the group will still have 56.8 acres of land in the South-West district to launch some RM1.13bil worth of properties. "This includes projects for a RM148mil landed property project on a 20-acre site in Balik Pulau planned for next year," he says. In the higher-end category, Mah Sing Group Bhd plans to launch a RM200mil project for Southbay City in Batu Maung comprising 100 condominiums, 126 office suites, and 12 two-storey shops in the fourth quarter 2013. Group deputy general manager Yeoh Chee Beng says the residential units, in a 30-storey block, have built-up areas of 1,200 sq ft onwards. "The offices, in an 18-storey tower, and shops have built-up areas that starts respectively from 600 sq ft and 1,050 sq ft onwards. "The selling price for the properties are approximately RM1,000 per sq ft," Yeoh says. BSG Property business development manager Chong Hock Aun says the group is undertaking the development of 242 corporate suites for The Landmark commercial-cum-residential scheme in Tanjung Tokong. This is scheduled for completion in 2017. The 242 corporate units are in a 41-storey tower, which also has 66 residential condominiums. The residential units will have their own separate lift lobby. The fully-furnished corporate suites, which have built-up areas ranging between 799 sq ft and 1,899 sq ft are targeted at investors who are looking for steady returns, as there is a 6% guaranteed rental returns per annum for two years, according to Chong. "They can either live in the units, which are designed for family dwelling and corporate use, or lease it. "This is a low-risk real estate investment scheme, as the properties will be rented out on a daily basis by a reputable hotel operator. "The targeted segments are the tourism and the corporate markets. "This scheme has been tried and tested and proven to be successful in countries such as United States, Hong Kong, and Singapore. "We will explore more such 'buy-to-let' schemes in the future," Chong says. According to the Penang Valuation and Property Services Department report, the volume of residential property transactions for the first quarter 2013 declined by 15.7% to 4,200 units from 4,981 units in the same period of 2012. Henry Butcher Penang vice-president Shawn Ong says the slowdown in residential property transactions will continue in the second half due to tighter credit conditions imposed by banks. "There is still interest in property purchases. However, due to the high and unreasonable pricing, property investors are waiting for prices to readjust before buying," he says. Raine & Horne Malaysia (Penang) director Michael Geh says that both the value and volume of transactions will contract this year by double-digits. According to the latest National Property Information Centre's (Napic) report, there is an existing stock of 367,158 units of residential properties in Penang in the second quarter 2013, compared with 366,265 units in the previous quarter. The report says until the second quarter of 2013, there is an incoming supply of 48,076 units, while 45,153 units are under construction. The planned new supply for the second quarter is 46,610 units, the report adds. According to NAPIC, the total transactions of residential properties in Penang dropped to 23,266 in 2012 from 30,674 in 2011. The total value of transactions has also dropped to RM7bil in 2012 from RM7.7bil in 2011, the Napic report said. "However, the average price of a unit has increased by 21% in 2012 compared with 2011," Ong says. |
| Newspapers and radio still on growth path Posted: TRADITIONAL media, namely newspapers and radio, are still the advertisers' preferred choice. They are the only media monitored by Nielsen − other than pay TV − to register advertising expenditure (adex) growth last month. According to Nielsen, newspaper and radio adex in July grew 4.1% and 12.4% respectively compared with a year earlier, while ad spend for pay TV surged 74.2%. The increase in share of voice for pay TV in 2013 was partly due to additional channels being monitored, according to Nielsen. The Association of Accredited Advertising Agents Malaysia (4As) president Datuk Johnny Mun says newspapers and radio are still considered to be among the most effective forms of media. "Traditional media have always been the driving force for marketers and advertisers when it comes to reaching their target audience. Digital is growing and is still in its infancy stage. "But the reach of traditional media, such as newspapers and radio, is still considered the stronghold. It's still strong compared with what most people think." An industry observer concurs that traditional media are still a preferred choice for most advertisers. "It's still considered a safe bet. Yes, digital advertising is growing but many are still testing the waters when it comes to this medium." Total adex in July, excluding Internet ad spend, rose 16.7% to RM1.2bil from RM1.03bil a year earlier. For the first seven months of the year, total adex grew 19% to RM7.25bil from RM6.10bil a year earlier. Excluding pay TV, adex grew only 1.9% for the January-July period. The product/service categories with the highest ad spend in the first seven months of 2013 were local Government institutions, women's facial care, fast-food outlets, mobile line services and haircare products. Nielsen measures advertising spending based on published rate cards, except for outdoor ad spend which is based on actual spending. Starcom Malaysia managing director Nick Drew says he expects total adex to record single-digit growth, ranging between 5% and 6%, this year. For comparison, the global advertising market is expected to grow 3.5% this year, a repeat of last year's growth (based on the forecast by ZenithOptimedia). "The word which I am sure everyone is using, is cautious. Despite the gross domestic product growth in Malaysia, the marketplace remains relatively cautious," he says. This week Bank Negara revealed that the economy grew by 4.3% last quarter, but it revised downward its growth forecast for the year to between 4.5% and 5%. On the perception that multinational companies were waiting until after the general election (GE) to spend on advertising, Drew says that Starcom's multinational clients had actually continued to spend around the GE period. "If you take out the Government spending, it is still the traditional product categories like toiletries that drive adex growth. The top advertisers are still Unilever, Nestle and Samsung," he says. According to Nielsen's data, Unilever was the country's biggest advertiser in the January-July period. It boosted spending by more than 60% year on year. Rounding up the top five advertisers list are the Prime Minister's Department, Nestle, Procter & Gamble and Samsung. Drew says Malaysia is seeing about 20% growth in digital billings, noting that even globally, digital is still the fastest growing advertising medium. |
| Two divisions boost Scomi Q1 profit Posted: PETALING JAYA: Scomi Group Bhd posted a net profit of RM1.48mil on revenue of RM377.49mil for the first quarter ended June 30, buoyed by an overall increase in gross profit margins and a higher profit posted by its oilfield services and marine services divisions. As Scomi Group and its subsidiaries had changed their financial year-end to March 31 from Dec 31 previously, no comparative figures from a year earlier apply. Revenue rose 15% to RM377.49mil from RM327.8mil in the preceding quarter, as its results continued to improve for the third successive quarter, driven by its energy services unit, it said in a filing with Bursa Malaysia. "Strong demand for drilling fluids and drilling waste-management solutions in Malaysia, Thailand, Turkmenistan and West Africa contributed significantly to the group's financial performance," it said. The company's listed oil and gas unit, Scomi Energy Services Bhd (formerly known as Scomi Marine Bhd), recorded a net profit of RM23.52mil on revenue of RM320.9mil for the quarter. The 13.3% increase in revenue from RM283.2mil in the preceding quarter was mainly due to its oilfield services segment, which recorded a higher revenue from South-East Asian markets, particularly Malaysia, as well as from West Africa, due to increased drilling activities. "For marine services, the higher tonnage transported and increased utilisation rates of vessels contributed to increased revenue compared with the preceding quarter," it said. However, its transportation solutions arm, Scomi Engineering Bhd, saw a net loss of RM16.5mil on the back of RM56.62mil in revenue. It attributed the RM14.9mil pre-tax loss to net unrealised foreign exchange losses of RM14.7mil from both the Mumbai and Sao Paulo Line 17 projects, as the Indian rupee and Brazillian real had weakened. Its income was contributed by the progress of its projects in Kuala Lumpur and Mumbai. |
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