THE Perth property market in Western Australia has bottomed out and is attracting Malaysian property developers.
According to a report from Momentum Wealth, a Perth-based property investment adviser, the market is now in a recovery phase.
Entitled “Residential Property Spotlight: Perth”, the report showed that the worst was behind the Perth property market, following a three-year downturn during which supply outweighed demand amid record-high housing construction and slower population growth.
There are some positive trends in the market such as the tightening housing supply and high affordability which are expect rooted to draw buyers back into the market.
Perth’s population of around 2.1 million is also poised to rebound as the labour market continues to strengthen.
Real estate experts believe the overall Western Australia property market would improve, relative to the rest of the country over the next two to three years.
They expect house prices to rebound and grow 1.3 per cent.
As of March, the median house price in Perth was A$506,500 (RM1.5 million), with a lower quartile price of A$405,000. Median rents were at A$360 a week with lower quartile rents at A$320 a week.
GOLDEN CITY LAND TO GROW IN PERTH
Golden City Land Pty Ltd director Datuk Saudagar Singh said there has never been a better time to invest in Perth while the property market is correcting and expecting a great upturn.
“While Sydney and Melbourne’s house prices have skyrocketed, Perth’s property market is still affordable and welcomes Malaysian investors as a stepping stone to the Australian property market.
“Perth has been gaining some serious interest from Southeast Asian investors, particularly Malaysians and Singaporeans, due to its strategic location and close proximity of being merely five hours flight away,” he told NST Property.
Golden City Land offers a complete 360 degree service when it comes to properties which includes consultation, acquisition, development, sales, leasing and management for Malaysian investors targeting to invest or develop in the Perth market.
The Perth-based company has an eye on the niche market of providing quality investment options suited to overseas property investors, particularly Malaysians.
It launched its maiden project, Golden City Apartments on 85 Surrey Road, Rivervale, in Perth in January last year.
The A$3.5 million project, which was completed in April this year, features a cluster of eight exclusive fully furnished two bedroom apartments ranging from 800 sq ft onwards.
The company has sold seven apartments priced between A$420,000 and A$440,000, mostly to Malaysians, said Saudagar.
He said the buyers were not only attracted to the location and pricing, but also the guaranteed rental returns for two years with a net rent of A$230 a week and option to further renew.
In addition, the buyers get a seven-day free stay at their investment home throughout the year, he added.
The developer had retained the eight and final unit and is releasing it now into the market as real estate demand in prime areas picks up.
Saudagar said the unit is priced at A$425,000 and loan options are available for the prospective buyers.
The Golden City Apartments is strategically located and centralised between the Perth CBD (central business district) and the Perth Airport, both being 5km or 10 minutes drive away.
The Crown Casino in Burswood is merely five minutes drive away and a billion-dollar world-class stadium, set for completion early next year, is located just footsteps away from the Golden City Apartments.
There have been reportedly more than 30 events lined up this year for its grand opening in February next year.
Located 1km away from the apartments is the Belmont Business Park which incorporates 825 businesses, while 3km away is the Belmont Racecourse.
“This augurs well for the owners of Golden City Apartments who will be able to lease their properties,” said Saudagar, a seasoned property investor, developer and hotelier in Malaysia and Australia.
Meanwhile, the company’s head of property (sales and leasing) Balveen Kaur believes that “quality is the best business plan for growth”.
“Your customers measure you on what you deliver. It is the best kind of advertising. This is proven based on the success of our project in Perth. There were no advertisements for this project. We sold the seven units through word of mouth. Riding on this, we will continue to embark on new projects in Perth, albeit cautiously,” she said.
Golden City Land is looking for more land to acquire not too far from the Perth CBD to undertake niche developments to cater to the discerning market, said Balveen.
“We have recently purchased a 2.2ha parcel located 15 minutes from the Perth CBD. This is going to be another exclusive boutique development,” she said.
QBE announces the appointment of Chris Kurinsky as Chief Executive Officer, QBE Insurance (Malaysia) Berhad.
In this role, Chris will be responsible for QBE's business across Malaysia. He will continue to drive the profitable growth in the country and increase the company's share in specialty, commercial, SME, and personal lines of business through strategic initiatives and partnerships.
Mark Lingafelter, Managing Director, QBE Asia Pacific, said: "We are very pleased to welcome Chris to QBE. His previous experience in the Malaysian insurance sector and his expertise in underwriting, distribution, reinsurance, and strategic planning will help us continue to expand our solid customer base in this dynamic market. Chris is inheriting a strong business in Malaysia, which is an integral part of our Emerging Markets Division and remains a key part of our profitable growth strategy."
Prior to joining QBE, Chris was Head of Sales and Direct Marketing, Consumer Lines, for Chubb Insurance China. Previously to his time spent in China, Chris was the General Manager of consumer lines for Chubb Malaysia and has extensive knowledge of the Malaysian insurance landscape. He has 20 years of experience in the insurance business, including working in various roles in mainland China, Malaysia, Thailand, Singapore, Hong Kong as well as in the United States and Latin America.
UEM Sunrise, a Malaysian state-controlled property developer, plans to undertake a 158-unit luxury apartment project in Melbourne, with gross development value of 1.1 billion ringgit ($256.41 million), its chief executive said Friday.
The company is aiming for 50% take-up rate for the Melbourne apartment project by year-end, Anwar Syahrin Abdul Ajib told reporters at a news conference in Kuala Lumpur. The company plans to complete the project in the second quarter of 2021.
The company is seeking more land for real estate development in Australia, after successful sales at its first two projects - Aurora Melbourne Central and Conservatory in Melbourne, Australia, he added.
"We are interested in joint venture projects in Australia," Anwar said, adding the company is currently in talks with potential foreign partners for projects.
The Australian projects contributed 23% to the company's property development revenue in the first quarter ended March 2017.
Meanwhile, the company plans to launch 800 million ringgit Malaysian residential project this quarter, he added.
Apart from Malaysia and Australia, the company's projects are located in several other countries including Singapore, Canada and South Africa.
Human resource (HR) practices in Malaysia must change and accept the fact that the average turnover for any individual in this day and age is two-and-a-half years, according to one panellist at the Global Business Services Forum 2017 yesterday.
“In a HR organisation, have we evolved to the point that we really understand what talent management really means in the current day and age, and what it means five years down the road? It is not so much about how much you are going to pay, what great office painting you have on the wall, how big the CEO’s office is,” BAE Systems head of Malaysia engineering centre Rishesingar Ramasamy said during a panel discussion at the forum yesterday.
He said the industry has a huge part to play in adapting to changes in talent management and it is unfair to put the onus on the government to enable job creation opportunities.
“The average turnover for any individual is two to two-and-a-half years in any organisation here. That is the kind of turnover you are going to see and we have to accept and adapt to that fact. Does the recruitment engine understand that? Do we know that we are supposed to be prepared for the next attrition that is coming six months down the road? No, we are not.
“Those are the challenges that we need to be addressing, not just assuming the government is going to fix it all for us,” he added.
Malaysia Australia Business Council chairman Leigh Howard said there would be a lot more activity if the government were to retreat from the employment sector as jobs get created when businesses are allowed to get on with doing business.
“While I applaud everything that the government agencies do to try and create jobs, on the other side of the equation, the number one thing the government should do to create jobs is to get out of the way,” he said.
He said in a lot of economies including Malaysia, the people are so acclimatised to the regulation and involvement of government, especially in terms of employment, that they are desensitised to it.
Commenting on the rising trend of contract work against permanent employment, Howard said companies should embrace and plan for it.
“The employment relationship that existed 50 years ago is gone. It is archaic and we are just clinging to the remnants of that relationship by having employment contracts, having it protected and regulated,” he said.
He said talented employees get to go out and try their skills in various areas, and are doing that more frequently today. These employees are also creators and more mobile, bringing more diversity to the nature of the employment relationship.
“One mega trend that you can bank on is that change in the nature of employment relationship will continue,” he added.
Rishesingar said the perception that a contract position is “bad” shows that Malaysia has not adapted to changes in employment trends.
“If you look at the western world, that is an accepted norm, to get hired and fired on contract. That gives you the flexibility to move around and change, to do whatever you want, but it also pushes people to make sure that they are constantly learning. The protective environment that we are in is what’s artificially preventing people from wanting to change. So that is the issue with the labour market that we are seeing,” he said.
Australia and New Zealand Banking Group (ANZ) is near a deal to sell its Malaysian banking stake to a pension fund and exit the Southeast Asian nation, sources familiar with the matter said, in a transaction that could be worth around US$900 million (S$1.24 billion).
ANZ has been pursuing a sale of its 24 per cent stake in its affiliate AMMB Holdings (AmBank) since early last year as part of a strategy to divest minority stakes in Asia and as AmBank was dragged into a corruption scandal at state fund 1Malaysia Development Bhd (1MDB).
In June, RHB Bank and AmBank said they were starting merger talks, in Malaysia's biggest banking deal. As part of the all-share deal, valued at about US$9 billion, RHB is looking to acquire AmBank and the two banks are in exclusive talks until end-August. ANZ's stake is expected to be roughly 10 per cent in the merged entity.
ALMOND exports boomed in the first quarter of this year, according to a report released last week by Euromonitor International.
The report, compiled for Horticulture Innovation Australia, found almond export volumes increased 74 per cent from January to March this year in comparison with the corresponding period last year.
India was the dominant market in the period, taking more than 31 per cent of export volumes.
“India remained the largest export destination for Australian almonds with 1888 tonnes,” the report said.
“Australia exported 1309 tonnes of almond kernels to Spain, the second-largest export market in quarter one.”
Italy and Sweden, which did not import Australian almonds in the first quarter of last year, imported 233 tonnes and 137 tonnes respectively. in the first quarter of this year.
The report also found avocado exports had performed well in the first quarter of this year, increasing 10 per cent on last year.
Malaysia and Singapore remained the key export destinations for Australian avocados, representing 82 per cent of export volumes in this quarter.
“Only 5 per cent of domestic Australian avocado production is exported, predominantly destined for Asian markets,” the report said. “In 2016 Australia represented 50 per cent of Malaysia’s 2076 tonnes of imports, growing by 67 per cent from 2015.
“Imports have steadily grown year-on-year, because the hass variety of avocados supplied from Australia are preferred by customers.”
And Thailand and Japan will become export markets for avocados with Australia close to establishing export agreements with both countries.
Dried grape exports also lifted in the first quarter of this year, increasing 29 per cent.
Dried-grape export volumes to China and the US saw the most substantial growth at 2100 per cent and 1800 per cent during the quarter, increasing from a low base the previous year.
Horticulture Innovation Australia chief executive John Lloyd said the export data, which would continue to be released quarterly, was a useful tool for Australian exporters and those who aspired to trade.
“This trade performance data will give Australian growers the tools they need to gauge what is happening in markets around the world to identify potential market opportunities and, where necessary, adjust their farm operations and marketing accordingly,” Mr Lloyd said.
The new fleet of buses that will service Sydney's Northern Beaches has started to arrive in Australia.
The bright yellow double-decker buses are being test driven and assembled Malaysia, with two of them already on our shores.
The new Northern Beaches B-Line is due to open at the end of the year and will run from Newport to the CBD.
There are 11 stops, with services every five minutes in the morning and evening peaks.
"You won't have to worry about a timetable. Just get to the bus stop and get on a B-Line," NSW Transport Minister Andrew Constance said.
"B-Line will be up and running by the end of this year. It's a half-billion dollar transport investment for the people of the Northern Beaches."
Designed by bus company Gemilang Australia, the MAN A95 chassis is manufactured in Germany and assembled in Malaysia.
The NSW government has ordered 38 of the buses, which they say will help reduce the 78,000 vehicles travelling on Military Road each day.
The buses will cater for 100 passengers, with 85 seated and 15 standing. A standard bus has room for 44 seated passengers, while a "bendy bus" has 64 seats.
There is also significant infrastructure being built along the B-Line route, with new bus lanes, turning bays and six new commuter car parks with about 900 spaces.
Carparks are under construction at Brookvale, Warriewood, Manly Vale and Dee Why.
PETALING JAYA: Over a third of Malaysian companies expect the current challenging business conditions to continue over the next 12 months, according to the latest survey by Australia’s QBE Insurance Group Ltd.
In a report titled “The Risks of Regret”, the insurer noted about 37% of the respondents predict a slowdown in their business, and 36% of them also foresee higher input costs and low profitability.
Meanwhile, over a quarter, about 28%, of Malaysian firms surveyed expect to see increased advancement investment in technology and innovation to impact their business.
The survey was conducted between April and May this year with some 300 small and medium enterprises (SMEs) and large corporations across various industries in Malaysia.
QBE Insurance (M) Bhd chief executive officer Leo Zanolini (pic) said amid the current economic challenges and increasing pressure to invest in new technologies, companies need to ensure they are safeguarding their business adequately.
“Many Malaysian companies only take action to address business liability risks after experiencing an incident,” he told a media briefing yesterday.
“We were surprised to see a pattern which shows that companies are likely to take out business liability insurance only after a crisis hits,” Zanolini added.
In the past 12 months, the most frequent risks faced by Malaysian companies included legal and regulatory compliance issues (28%), loss of income due to business interruption (27%), staff injuries while working (24%), damaged or loss of inventory (22%), equipment breakdown (21%) and public or third-party liability due to issues with products or services (18%).
Based on the report, some of the reasons on why the Malaysian companies do not own business liability insurance, include their businesses are too small and the costs are bigger than the risks (45%), budget issues (41%) and some even cited that they have other business priorities (29%).
Zanolini also noted that while awareness of general business insurance is high, that of business liability and professional indemnity insurance is still low.
Nearly all Malaysian respondents (96%) have some form of business insurance, including general accident and employees’ compensation cover.
“However, the awareness and take-up of business liability insurance protection is far lower,” he said.
The report found that less than half (45%) of Malaysian SMEs and large companies currently have business liability cover and 64% of businesses are aware of it.
Zanolini explained that both awareness and usage of professional indemnity insurance stood at 27% and 19% respectively. While public and product liability insurance stood at 31% and 21% respectively.
“This is a concern as it potentially puts their businesses, clients and the public at risk — and they are missing out on compensation opportunities,” he said.
Opportunities to scour wool in Malaysia have changed the landscape for local exporters and, importantly, increased wool competition for WA growers.
Since the closure of the last WA wool scourer in 2009, scoured wool sales by WA exporters have had to be sent to Victoria for scouring before shipment, making it difficult for them to compete with exporters in the Eastern States.
However, a relationship between Westcoast in WA and Compass Wool Processors near Singapore is showing benefits for the industry and growers.
Westcoast is strongly focused on exploring industry opportunities for growers and wool export representative Gavin O’Dwyer said the relationship with Compass Wool Processors now presented a viable option for scouring and topmaking from WA and was increasing competition for local wool.
“Previously, we have had to ship wool to Geelong for scouring at a cost of about $26 a bale and then ship it on to Asia and Europe,’’ Mr O’Dwyer said.
“All wool out of WA is trans-shipped through Singapore anyway, and Compass is only one hour out of Singapore, so it’s a strategic location.
“With the freight savings compared with shipment to the Eastern States, and the fact scouring tariffs are more favourable in Malaysia than Australia, it puts us on par or in an even better position than other exporters.
“With the cheaper tariffs, it actually gives us an advantage over anyone else.’’
Westcoast is working with Compass Wool Processors chief executive Tony Brann and has been increasing its greasy wool volumes through the facility. Most of the scoured wool then heads to India, China, Thailand, Japan and Europe.
“Compass has a large scouring capacity of around 100 tonnes a day, while its combing capacity is about 10t a day,’’ Mr O’Dwyer said. “They scour all wool types and we have achieved good results with a wide range of wool, including locks, stains, crossbred fleece and, of course, good WA Merino fleece wool.’’
The not-so fun park operator, Ardent Leisure, is a long way from the retirement home market – unless you're a restless Malaysian billionaire like Seng Huang Lee.
Lee is Aveo's chairman and largest shareholder via his family's Malaysian flagship group, Mulpha.
We can assume one arm of the family corporate tree was talking to the other given that the former Ardent boss, Greg Shaw, heads Mulpha's operations in Australia. He is also Lee's alternate director at Aveo.
The two entities are so close they have even been known to do deals with each other in Australia. This includes the sale of Mulpha's entire stake in PBD Developments to a Sun Hung Kai entity in 2015.
CBD is betting we might see Sun Hung Kai return the favour given Mulpha's Queensland assets include Sanctuary Cove, and Hayman Island. Didn't Ardent's board mention the potential of property development at its fun parks like Dreamworld?
But the really interesting bit is the future of veteran spinner, Tim Allerton, who just got back in the door as Ardent's external PR guy having missed the mess that unfolded after the Dreamworld tragedy.
Allerton may find himself in a sticky situation of his own making given he was the poster boy for Adele Ferguson and Sarah Danckert's expose on the business practices at Aveo.
He told CBD's colleagues about the difficulties of sorting out the sale of his aunt Joan's retirement village unit. In the end, he and his family had to swallow $150,000 worth of exit fees and capital losses.
"I think one of the most galling aspects of the exercise was the fact that my auntie had passed away, the apartment remained in our hands and yet the monthly bills kept coming in …," Allerton told them.
How safe does Allerton feel now that Aveo's chairman is a substantial shareholder at Ardent?
The word is that Ardent's new shareholder had a friendly meeting with the George Venardos-chaired board, which obviously means former Ardent boss Shaw – who was unceremoniously dumped as CEO – has no beef with the current directors.
The question is whether Lee's Sun Hung Kai is friendly enough to help repel the boardroom raid of Gary Weiss and Queensland developer, Kevin Seymour.
Spiro v ASIC
Spiro Paule, the founder of KKR-backed financial group Findex, has found himself in another tussle with Greg Medcraft's corporate cops at ASIC.
In October last year, ASIC pinged Findex with a $21,600 fine for potentially misleading advertising. This includes claims it was Australia's largest independent financial advice company.
On the latest occasion it appears to have been Paule, and Findex, who have picked the fight with ASIC.
Paule and other senior execs at Findex went to the NSW Supreme Court last year seeking the discovery of documents to obtain the "true identity of the publisher of certain allegedly disparaging and defamatory publications".
According to a recent court judgment, suspicions settled on a "former disgruntled employee" – and it named David Keith McKay as the alleged transgressor.
This is where ASIC comes in.
It is not party to the proceedings, but the regulator made an application in April this year claiming "public interest immunity" in relation to documents seized from, or produced by McKay, which the Findex crew were obviously trying to get their hands on.
The counsel for the plaintiffs told the court, "We say that it is almost certain that these documents will disclose further causes of action, deceptive and misleading conduct causes of action, defamation causes of action and separate causes of action that we have against Mr McKay", arising out of the disclosure or publication by Mr McKay of material to ASIC.
ASIC argued that disclosure of the "confidential affidavit" would be "prejudicial to the effective policing and investigation functions performed by ASIC in its capacity as a regulatory authority".
Which means we should really keep an eye on any developments here.
In any case, Justice Julie Ward decided that the Findex team could have access to the documents once ASIC had redacted anything it deemed necessary to "preserve the immunity".
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