'Give people new lifestyle at reasonable cost'

KUCHING: Housing Minister Dato Sri Abang Johari Tun Openg wants housing developers to play a role in modernising the lifestyle of the people of Sarawak, but not by burning a hole in their pockets. "We should give people a new lifestyle at a reasonable cost and in the reach of our common people," he said, believing that the happiness of people with their lifestyle could contribute towards the progress of the State. "What is important is that we change the whole industry. Our products must be of standard; we must have developers of standard; we upgrade the infrastructure and at the end of the day we deliver good products to the people. People will be happy and the nation will continue to be strong." Johari said this yesterday at the signing of master agreements between ASSAR Chemicals Engineering Services Sdn Bhd (ACES) and members of the Sarawak Housing and Real Estate Developers' Association (SHEDA), which also launched its Code of Practice (CoP) at the same function. Johari considered the signing of the agreements for the provision of ACES' ASSAR prepaid system (APS) for piped-in gas in new housing projects, and the launching of the CoP as a step into a new dimension in housing development in Sarawak. The CoP, he said, had enabled the housing industry to become self-regulatory, much like lawyers and their Bar Council. He emphasised that developers had an obligation to provide the best practices and products to buyers. "I think this CoP is the first one for developers in Malaysia, and I understand that SHEDA's counterparts in East Malaysia is asking for a copy of the CoP," said Johari. He conceded that when he was appointed to the Housing portfolio, he had found the ministry to be a "problem ministry", and though much had changed in the last few years he was confident that SHEDA's CoP would further improve the housing industry, particularly in tackling problems like abandoned housing. On the APS, Johari thanked ASSAR Senari Group of Companies and its subsidiary, ACES, for working closely with his ministry and its Housing Development Corporation (HDC). He said the APS was a modern convenience that would improve the lifestyle of the people through economical means, and he looked forward to exploring its uses in affordable housing. He said he was looking into installing a water-cooling system in affordable housing and together with ASSAR and HDC, they were now calculating the cost of installing the system. ACES yesterday signed four agreements with SHEDA members and handed out letters of intent to 20 others. ASSAR Senari Group of Companies chairman Tan Sri Datuk Amar Bujang Mohd Nor said the APS offered a sophisticated, safe, convenient and secure prepaid piped gas at an affordable price for modern living. "With the APS you don't have to worry about running out to buy gas, or carrying the gas cylinders up staircase or strangers coming into your homes to install the cylinders. We hope that APS will be perceived as a necessity in daily life," he said. Bujang announced that all s developers who signed the a agreement yesterday would get a 10 per cent discount on all APS equipment supplied to them. He said that with the signing of the agreement, SHEDA members would install the APS in their new projects subject to the suitability of the project. Also present at the function yesterday were HDC chairman t Abdul Wahab Aziz, Daya a Perumahan Sdn Bhd chairman Dr Abdul Rahman Junaidi, Housing Ministry Permanent Secretary Abang Affandi Abang Anuar, SHEDA president William Wei and ASSAR Senari Group of Companies CEO Syeed Mohamad Russien.

Source from: The Borneo Post, 2007-04-21 Author: Raynore Mering

Big market for student hostels

TOKEN OF THANKS: RHB Bank Berhad's head of strategic programmes, planning and projects division and head of East Malaysia and Brunei, Datuk Ahmad Ibrahim (centre) present a souvenir to Johari while Sheda president William Wei (left) looks on. KUCHING: The government and property developers have to form more aggressive strategies this year to deal with a potentially easing property sector, with student hostels for institutes of higher education high on the list of potential new markets, said Minister of Housing Dato Sri Abang Johari Tun Openg. Speaking at the Sarawak Housing and Real Estate Development Corporation (Sheda) "Sarawak Property Report/Market Outlook 2007" yesterday, Johari reminded developers not to jump into new projects with a "herd mentality", which was typical in Asia, without conducting market research or studying other lucrative opportunities. Citing strategic examples from Australia, Johari said developers erecting apartment buildings should design the buildings in such a way to allow conversion to student hostels. He foresaw a jump in demand for student housing for those studying at Swinburne, Universiti Malaysia Sarawak (Unimas), and Sarawak Biodiversity Complex. "We have to be more aggressive in strategic formulation this year ... developers must find new market opportunities," he said, adding that working and completing infrastructure - such as nearby schools, transportation services and utilities - was also extremely important to the success of housing projects. As for government action, Johari said the plan was to attract more overseas students to come to study here at the existing institutes of learning and the Sarawak Biodiversity Complex, which would in turn increase the population and market demand. Meanwhile, this year property prices for prime and up-and-coming residential areas are expected to remain stable or to increase marginally while prices overall are not expected to come down anytime soon, according to Wong Ing Siong, managing director of CH Williams Talhar Wong & Yeo Sdn Bhd. He predicted that the public could expect a continued slack in sales performance, fewer new launches, more re-launches and more promotional packages as developers try to recoup and sell excess units in the face of short-term economic fluctuations and the uncertainty of oil prices. "Oil analysts have predicted that by the year end, oil price could rise to near $100 per barrel... and to $150 per barrel within the next ten months. High levels of non performing loans (NPL) and consumer credit default will also caution banks to be more selective in lending," he said. On the upside, low-medium-cost and medium-cost housing was likely to remain in good demand, while developers are advised to identify potential areas and build up land banks for the future, which holds good long-term prospects. "Long term prospects are good due to a young housing market full of potentials... growing population, increase in households and improved wealth and lifestyle," he said. Interest rates would be expected to remain at the current level of base lending rate of 6.75 per cent for this year, while the takeoff of the Ninth Malaysia Plan anticipates funds pouring in for infrastructure, utility and rural development for Sarawak, and not forgetting buoyant consumer price index and good timber prices in the world market, he said. Sarawak's property market demand for low and low to medium-cost housing from 2007 to 2025 is said to be 15,200 units every year, with some 5,000 in residential areas of Kuching, he said

Source from: The Borneo Post, 2007-03-02 Author: Jamie Wang