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Showing posts with label Kuala Lumpur. Show all posts
Showing posts with label Kuala Lumpur. Show all posts

10 July 2014

KL Property: Oversupply of luxury condos

I've gleaned a few points from the news report below:
  • 5,000 to 6,000 units due for completion within the next 6 to 9 months.
  • ranging from RM1,000 per sq ft and RM1,500 per sq ft
  • most of these were bought for flipping
  • but at such prices, they may have problems finding a buyer
  • due to high prices and soft market, will try to rent out
  • super luxury units, ranging over RM3,000 per sq ft are not affected
I believe they have a term for market conditions such as this. It's called a bubble.

I hope those who are stretching their financial capabilities with a few properties in hand have adequate cashflow. Most times, it's not the amount of loans that will do you in. It's always the cashflow.

Whenever the market slows down, it's not only the buyers who are affected. The developers too, are not spared.

The past few years have seen developers launching their projects at lightning speed. Usually, in such situations, their resources will be stretched thin when they try to build and deliver a few projects concurrently. Some will take shortcuts or scrimp on materials. Some will even abandon the projects due to insufficient funds.

Anyway, I think the bull-run on property is over. Probably in a year or two from now, when demand for luxury homes tapers and interest rates are higher, the developers will start launching more affordable projects.

Don't forget to save up for rainy days. The job market is stagnant at best, which means less jobs and more competition for jobseekers.




Worries over luxury condos, number of upcoming units 'frightening' 


PETALING JAYA: An oversupply of new luxury condominiums in the Klang Valley this year is expected to create pressure on rentals and even result in a “price war” on new and existing units.
Property consultant CH Williams Talhar & Wong Sdn Bhd (WTW) managing director Foo Gee Jen said the number of new units expected to come in over the next few months was “frightening.”

“We expect some 5,000 to 6,000 units coming in within the next six to nine months in the Klang Valley,” he said, adding that he was “mixed” on the outlook for high end condominiums ranging between RM1,000 per sq ft and RM1,500 per sq ft.

Malaysia Institute of Estate Agents (MIEA) president Siva Shanker said he expected a “price war” to erupt amongst owners looking to find the best rental rates for their condominiums.

“A lot of people would have bought these upcoming properties to flip (sell at a higher price). But at such prices, they may have problems finding a buyer. So the next thing they will do is try to rent out the unit.

“Again, to try and get the most out of the situation, they will want to rent out the property at the highest possible price. But because there’s an oversupply situation, there will be competition from other owners.

“So a price war will begin as they start lowering prices (to be able to secure a tenant).”

Siva said he expects units ranging between RM600,000 and RM1.5mil to face this problem.

“However, units that I call super luxury units, ranging over RM3,000 per sq ft, are unlikely to face this problem as they are quite niche and are unlikely to face much competition,” he said.

According to WTW in its report on the luxury condominium sector for the third quarter of 2013, the cumulative supply of luxury condominium in Kuala Lumpur increased from 25,796 units in the second quarter of 2013 to a total of 26,163 units in the third quarter of 2013, contributed by 147 projects.

The bulk of supply was concentrated in KLCC area with a total of 11,181 units or 43% of total cumulative supply in Kuala Lumpur.

“Prices were generally stable in all areas where in KLCC and Mont’ Kiara/Sri hartamas area, prices ranged between RM850 and RM1,400 per sq ft while for the remaining areas, prices were between RM700 to RM1,200 per sq ft.

“In terms of gross asking rentals, rentals in KLCC area indicated stable rates at a range of RM4.50 to RM6.50 per sq ft while the remaining areas ranged from RM3.50 to RM5.50 per sq ft,” said WTW.
- http://www.thestar.com.my/Business/Business-News/2014/07/09/Worries-over-luxury-condos-Industry-watchers-Number-of-upcoming-units-frightening/

 

05 July 2014

Soup Kitchens banned in Kuala Lumpur city centre

You know our country and soceity is breaking down when you have leaders in the likes of Tengku Adnan running the government. It really seems like the trend these days, like I mentioned in my earlier posts, to blame and penalise the innocent while offering no solutions to the root of the problem. From water to electricity, to food and petrol. Everything is the people's fault. They are told to be prudent, change lifestyles, fined, etc. Basically, they are told to accept the reality because it's their fault!

The minister is taking the easy way out to the problem. Impose a fine on the people and arrest the vagrants. If that is your best solution, it shows that your job does not require much skills, talents, or knowledge. See how easy these politicians' jobs really are?

Ok. Since the government is so concerned about cleanliness and the city's image, I have a few suggestions for the good minister.

1. Littering. Malaysians like to litter. Despite fines, they still do it. Soup kitchens are not the main culprit here. If DBKL is so concerned about cleanliness, perhaps they should help clean up the streets as a civic duty instead of penalising good people doing social work. In some civilised countries, people no longer litter unlike Malaysians. No point pretending that we are civilised.

Typical clean street in Japan.

Japanese fans cleaning up after a World Cup football match.

2. Crime. The public is robbed in broad daylight! Criminals are roaming the streets everyday looking for victims! And the authorities are more concerned about a few homeless people tarnishing the city's image? How about making the city crime free as your priority?

3. Image. Soup kitchens actually give the city a positive image. It shows that residents of Kuala Lumpur have compassion. It shows the humane side of soceity in a concrete jungle. Perhaps the government should offer help instead of penalising those who are helping.

By all means, take action against the human trafficking syndicates. Arrest them. Stop the influx of illegals entering the country to commit crimes. Who are those responsible for bringing them in? Since the minister is so tough, go after the syndicates!

Does it matter if some of those receiving help are free-loaders, drug addicts, louts, etc.? These people are everywhere. You see them at open houses, government events, shopping complexes, etc. Come on... in this country, even the so-called educated middle-class still park at handicapped parking spaces! 




Tengku Adnan: Soup kitchens banned within 2km radius of city centre 


KUALA LUMPUR: Soup kitchens will no longer be allowed to operate within a 2km radius of Lot 10, which covers a large portion of the city centre, effective immediately, said Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor.

"This activity just encourages people to remain homeless and jobless. There have been many such people whom we have found jobs for, who returned to that life because they said it is easier," he said at press conference to present official appointment letters to representatives on the Non-Islam House of Worship committee in Menara DBKL here Thursday.

He added that the sessions also resulted in littering and this in turn attracted scavengers that brought about diseases.

"We already have all kinds of garbage-related problems in the city and spend more than RM90mil a year collecting it. I do not see my actions as harsh but necessary in order to create a disciplined society," he said.

Tengku Adnan added that the soup kitchens have not been officially notified of this and a meeting with them to discuss it will be held soon.

However, he said they would be given the next two days to comply with the decision and action will be taken against those who continue to run the activities.
 - http://www.thestar.com.my/News/Nation/2014/07/03/Soup-kitchens-banned-around-KL-city-centre/

 

27 June 2014

Water disruptions affect over 700,000 Klang Valley households

You've gotta hand it to these people. They have absolutely no conscience. You can almost imagine them holding back their glee when they make these announcements... so much for aspiring to be a developed nation.

If they've already decided that this will go on indefinitely, then obviously, we have an incompetent water management company and an equally incompetent state government.

But it's the people who have shown examplary tenacity, taking it like a champion with hardly a whimper.

I think the state government should draw up new building guidelines for Selangor and KL to include wells, rain water recycling and bigger water tanks. How about subsidising the people for bucket & water filter purchases? Not everyone possess the qualities and talents to be able to earn as much as you guys, you know.

As you can see, despite their jobs being one of the toughest in the world, could still manage to smile and laugh in the face of such huge responsibilities. Running a government is serious business you know... Syabas!





Water disruptions affect over 700,000 Klang Valley households

PETALING JAYA: Over 700,000 households are affected by water disruptions caused by low water levels at treatment plants in Selangor and Kuala Lumpur.

Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) said Gombak, Kuala Lumpur, Petaling, Klang/Shah Alam and Hulu Langat districts will face water cuts and low water pressure for an indefinite period of time.

According to a Syabas statement, the reduction in the flow of raw water from Sungai Selangor have forced the water concessionaire to reduce the water pressure to treatment plants which led to the water issue.

Some areas in Hulu Langat and Kuala Lumpur suffered water shortages and low pressure since June 17 due to production of treated water from the Sungai Semenyih and Sungai Langat treatment plants which could not meet the demand.

Some areas in Klang/Shah Alam also experienced water outages and low pressure on June 24 due to the temporary closure of the Sungai Selangor Phase 1 managed by the  Syarikat Pengeluar Air Selangor Sdn Bhd (SPLASH).

This was due to the interruption of electricity supply from 4am to 6am the same day at the water treatment plant. This resulted in the reduction of treated water from the plant. The water supply to the affected areas are still not fully recovered.

Several areas in Gombak, Kuala Lumpur and Petaling experienced water outages and low pressure from June 25 due to the reduced treated water production from Sungai Selangor Phase 3. which was due to the rapid drop in the level of flow Sungai Selangor raw water.

“The water cut is inevitable as there is no alternative water sources that could be channelled to the affected areas,” the statement said.

Syabas predicted that the water issue will continue for a long time and the rehabilitation of water supply depended on the water level at the treatment plants.

Consumers are advised to use water wisely and to reduce usage where possible.

Syabas will be deploying water lorries and static tanks during emergencies but the resources are limited, as such priority will be given to places such as hospitals and dialysis centres.

Consumers can call Syabas hotline at 1-800-88-5252 for more information.

26 June 2014

Syabas Unscheduled Water Cuts


Ok, so here's how it's going to be. According to the "Powers who control water", they will cut water supply whenever they want. Why bother with rationing when it only manages to reduce consumption by a measly 6%. Better just cut it unannounced so that the people do not have time to prepare.

The reason, this time is, of course, the people's fault again. You see, according to the "Powers who control water" whenever everyone takes their showers or flushes their toilets at the same time, the water level at the treatment plants drop so fast that they are forced to stop the supply lest the ponds dry up... yadda... yadda... yadda...

So, people, best you guys take turns to shower. I'm sure Syabas will be happy to come up with a schedule for you.

And that Priscilla woman should really stop accusing others of wasting water already... Sorry to spoil your fun, but, really, if you can't supply enough water, just let someone else do it. Then you wouldn't have to come up with these condescending excuses.

Sometimes, how I really envy them.






Unscheduled water disruption because of over-consumption and dry spell, says Syabas


THERE will be no water rationing for now although there were unscheduled water disruptions in some parts of Kuala Lumpur over the past week because of the dry spell.

Confirming this, Local Government and Research Committee chairman Datuk Teng Chang Kim said there had been no discussion at the state level over a possible water rationing.

“Rationing can only be done with the consent of the state government and the National Water Services Commission (SPAN),” he told StarMetro yesterday.

Teng added that the decision to carry out water rationing would be made by SPAN.

“Whoever proposes for water rationing, SPAN will have the last say,” he added.

Syarikat Bekalan Air Selangor (Syabas) corporate communications and public affairs manager Priscilla Alfred reiterated that Syabas did not order the water cuts last week.

“It was over-consumption of water and the dry season that had led to the disruptions of water supply in some parts of the city,” she said.

“Unscheduled water disruption happens when the water level at the treatment plant reduces quickly due to heavy usage.

“It is impossible for Syabas to estimate how quick water in the treatment plant diminishes, it all depends on the water consumption,” she said.

Water level at the treatment plant mostly drops drastically in the evenings due to heavy consumption, she added.

During the dry season in June, July and August, the public tend to consume more water too, said Priscilla.

“Water consumption is mostly heavy in the evenings when people get back home after work.

“During the hot season, people consume more water and within few hours we can run out of treated water. This leads to unscheduled water disruption. Syabas does not cut water supply,” she said.

Priscilla advised the public not to use too much water to prevent water disruption.

As at press time, the Selangor Water Management (LUAS) website, showed that the water level at all dams in Selangor was above the critical level of 35%.

However, Sungai Selangor dam showed the level being at 43.16%.

It was earlier reported that unscheduled water disruption in parts of Kuala Lumpur could have occurred for an indefinite period unless users reduced their consumption.

About 17,500 people were affected by the latest water disruption since June 19, which was attributed to the demand exceeding supply.
http://www.thestar.com.my/News/Community/2014/06/24/No-rationing-for-now-Unscheduled-water-disruption-because-of-overconsumption-and-dry-spell-says-Sy/

08 May 2014

RPK: Water, water, everywhere, but not a drop to drink


I think it is timely that RPK has decided to write about the water mismanagement in Selangor & Kuala Lumpur. He has done a great service to the people of Malaysia.

The main point which I would like to highlight is that everybody, Federal Government, State Government, BN, Pakatan Rakyat, and the relevant Governement Department & Ministries, are all aware of this problem. They've know about this 30 years ago.

1. Non-revenue water is high, averaging at 47% nationwide.
2. Privatised water management companies such as Syabas only process the water to be sold to consumers.
3. The State or Federal Government is responsible for the pipes. So, non-revenue water is the government's problem.
4. The water we are supplied with is actually toxic.
5. Building more dams & treatment plants will not solve the problem because the main problem is the toxic & leaking pipes. It will only benefit the water consessionaires, aka water corporations.

So, all of these people mentioned above should stop playing games and feigning ignorance.

As Malaysians, will these people who are given the power and responsibility to manage the country's resources do what is right?

Collectively, they have failed in their duties. They have put their own interests above the nation's.

If this is not treason, I don't know what is.




Water, water, everywhere, but not a drop to drink


Do you really need to be a water engineer to know that you have no water when you open your tap and nothing comes out of it? Do you really need to be a water engineer to know that your water is dirty when the water that comes out of your tap is brown in colour?

THE CORRIDORS OF POWER

Raja Petra Kamarudin

About 30 years ago, I attended a meeting at the Bankers Club Kuala Lumpur as a guest of the then Deputy Director General of the Public Works Department to listen to a talk on water. What I learned was quiet interesting.

More than 70% of the earth is covered with water but about 97% is seawater. Out of about 3% fresh water only about 1% is potable. Hence we actually have very little water to drink unless we want to melt the glaziers, condense the water vapour in the air, drain the lakes and rivers, and whatnot.
In Malaysia, all our rivers are polluted and we need to treat the water with a high dosage of chemicals to make it safe to drink. The chemicals we use in our water far exceed the recommended (or safe) dosage of the United Nations World Health Organisation by more than ten times.

In other words, we are poisoning our drinking water. Even then we are advised to boil this water before drinking it to kill the bacteria in the water. And because we are drinking chemical-laced water the incidence of cancer is very high.

This is what the Finnish Study Links Chlorinated Water to Cancer reported. “Statistically significant exposure-response association was observed between exposure to chlorinated water and incidence of bladder, kidney and stomach cancers. In an ordinary municipality using chlorinated surface water, this exposure would indicate a relative risk of 1.2 for bladder cancer and 1.2 to 1.4 for kidney cancer compared with municipalities where non-mutagenic drinking water was consumed.”
About a year or two after that talk at the Bankers Club Kuala Lumpur, I presented a paper to the Public Works Department at the request of the Works Minister, Samy Vellu. This paper was actually the same one that I presented to the Finance Minister, Daim Zainuddin, who referred this matter to the Works Minister. Daim was kind enough to give me an appointment to explain what my paper was about and after he heard what I had to say he arranged for me to meet Samy Vellu, the man in charge of this matter.

This paper was very thick, obviously, but the summary of what I was telling the government is that Malaysia’s NRW (Non-Revenue Water) averages 45% (and as high as 70% in some areas) while the UN recommended NRW is less than 20%. Hence we are more than double the international standards. And the result of this would be: in roughly 20-30 years time (in the new Millennium) Malaysia will run short of water, especially in places like the Kelang Valley.

Hence the government must do something about it.

I do not know whether this was why the government decided to privatise the water industry soon after that. But I spoke out against the Malaysian government’s privatisation plan because they only privatised the production of water and not the distribution of water, which was where the real problem of the 45% NRW lies. Hence the government is not going to solve the problem of the NRW and the possible water shortage by 2000-2010 or so if the source of the problem, the 45% NRW, is not addressed.

Unfortunately, I am not a water engineer (in fact, I am not an engineer, period). I am also not an Umno politician (in fact, I am not a politician, period). Hence no one would want to take what I say seriously (even though a number of Pengarah JKR whispered that they agreed with me but this has to be a political and not a technical decision — as is always the case in Malaysia).

Why I decided to embark on this ‘crusade’ is simple. I am a product of the 1960s. And those who were teenagers or were growing up in the 1960s would remember the three-day 1969 Woodstock Music Festival that, as far as I am concerned, changed the world.

Later, Woodstock came into the news yet again. And this time it was because Woodstock was reported to have the highest incidence of stomach cancer in the United States. And the cause of this cancer was traced to the town’s water supply and the use of AC pipes.

And Malaysia, too, used AC pipes, which the United States banned but we were still using. Hence my proposal to the government was not to produce more water by building more treatment plants but to improve the efficiency of the distribution of water by reducing the NRW by more than half and at the same time get rid of all those pipes that are a health hazard and will expose Malaysians to the risk of cancer.

Is it not ironical that we ban smoking in public places because of the risk of cancer and then we supply Malaysians with water that will give us cancer? And what will happen after 2000 when highly urbanised areas like the Kelang Valley run short of water? Will we then impose water rationing and ban the washing of cars and the watering of lawns?

That must have sounded very dramatic back in the late 1980s to early 1990s, a sort of doomsday scenario. But those living in the Kelang Valley today, 25 years or so later, might not think so.
Today, we blame the Federal Government or Umno or Selangor Menteri Besar Khalid Ibrahim for the dilemma that Selangor is facing. We turn this into a political issue. The fact remains that the Federal Government was warned and Anwar Ibrahim who took over from Daim Zainuddin as Finance Minister soon after that was also warned.

So, yes, the Federal Government, the Selangor Government, Umno, and so on, should be blamed. But I feel Anwar should also apologise to the nation or to the Selangor State and admit that when he was the number two in the government he failed to address this issue, which now has become a crisis for Selangor.

And is not Anwar the Economic Adviser for Selangor?

Four and a half years ago, or two and a half years after the 2008 general election, I raised this issue amongst many other issues with Anwar when he visited the UK and we met in London. Anwar’s response was that ‘we cannot listen to everything that Raja Petra Kamarudin says. He is living in the UK and he cannot tell us what to do’.

That is true. That is also the same response I received back in the 1990s. ‘Who is Raja Petra Kamarudin? He is not a water engineer.’ But do you really need to be a water engineer to know that you have no water when you open your tap and nothing comes out of it? Do you really need to be a water engineer to know that your water is dirty when the water that comes out of your tap is brown in colour?



What a woeful waste of water


PETALING JAYA: Leaky, ageing pipes are taking a huge toll on the country, with close to two trillion litres of treated water lost to seepage, poor water quality and frequent disruptions at the consumer end.

And it’s going to get worse. Much of the problem lies in the 43,890km of ageing pipes around the country.

Made of asbestos-cement (AC), these pipes were installed in vast numbers decades ago.

They have a lifespan of 30 years and many have outlived their usefulness or are getting there.

Last year alone, nearly two trillion litres of treated water were lost.

The non-revenue water (NRW) was more than a third of all treated water pumped out of plants in 2012 – enough to supply every family in the country with water for 189 days, or fill 797,600 Olympic-sized swimming pools.

The leakage forced water operators to pump more through the pipes to meet demand.

“An interruption of water supply for frequent pipe burst and repairs can cause low water pressure for consumers as well as affect water quality,” said Malaysian Water Association council member Hai­ri Basri.

In 2012, the National Water Services Commission (SPAN) found that of the 1.994 trillion litres of water was lost, and 3.479 trillion litres reached people’s taps – an NRW level of 36.4%.

Hairi said: “We can’t be proud of an industry that lost 36.4% of its final product before it could reach consumers.”

SPAN executive director (Water Regulatory Department) Marzuki Mohammad said the installing of AC pipes was stopped in the early 90s and the country’s pipes need to be changed.

Modern day water distributors use copper, stainless steel or ductile iron pipes.

“If replacement does not keep pace with the deterioration of the pipes, leakages and NRW will keep rising with water suppliers suffering more losses,” he said.

It shows in SPAN’s numbers. In 2011, a total of 1.939 trillion litres were lost. Last year, it was 1.994 trillion – a staggering 55 billion litres more.

There was a burst pipe, breakage or leak reported every 84 seconds in Malaysia last year, amounting to 376,159 complaints in total.

The number of unscheduled water disruption also rose from 214,270 in 2011 to 238,542 in 2012.

http://www.thestar.com.my/News/Nation/2013/11/13/What-a-woeful-waste-of-water-Two-trillion-litres-lost-each-year-and-its-going-to-get-worse.aspx/