Gated Communities: Boon or Bane?

There has been some division in opinion amongst various quarters over the issue of gated and guarded housing. Proponents for the concept argue that this is not only an innovative approach to residential development, but is also an idea borne out of necessity, given the high rate of crime, house break-ins especially, in our country. More and more house buyers are looking for peace of mind and insulation from unsolicited criminal elements. The necessity to protect themselves from criminal intrusion has prompted many residents to organize themselves to set up security patrols and barriers within their own neighborhoods, even though the legality of taking such action may come into question. It is not difficult to understand why gated and guarded housing projects are gaining popularity amongst Malaysian house buyers.

Regaining Our Competitive Edge

The competitive pressures of globalisation are certainly being felt more and more keenly as economies square off to entice and draw in much sought after foreign investors. Whilst some countries may have greater competitive edge over others in terms of natural endowments or abundance of resources, it has been proven over and again that one key factor in attracting and retaining foreign investments is the existence of a transparent, reliable, effective and efficient public delivery system that understands and responds well to the needs of business.

Schedules G, H, I & J Amended

After 8 long months of uncertainty and confusion among developers resulting from the amendments to the Housing Development (Control and Licensing) Act in April 2007, the gazetting of the Housing Development (Control and Licensing) (Amendment) Regulations on 1 December 2007 brought some relief to the industry. The amended regulations brought into effect the various changes made to the parent Act earlier, including the extension of defect liability period to 24 months and issue of assignment without prior consent of vendor/proprietor, through the amended Schedules G and H.

Taking Heed of the Wake Up Call

The residential sector continued to be the prime property market mover in 2007, as reported in the Property Market Report First Half 2007. This was expected, given the sector captures over 60% of total transaction volume each year.

Challenges of Community Living

For years, housing developers of gated and guarded housing schemes have waited for the legal conundrum regarding issues on titles and management and maintenance of such schemes to be quickly resolved. So, it was certainly good news for the housing industry to hear that the proposed amendments to the Strata Titles Act 1985 had finally been approved by Cabinet and are due to be tabled in Parliament. For this, REHDA wishes to express our gratitude to the Minister of Natural Resources and Environment, Dato’ Azmi Khalid, for his expeditious and proactive efforts in bringing the proposals across to Cabinet.

Minimizing the Affordability Gap

The Malaysian economic indicators painted a fairly rosy picture for 2006. The country’s economy grew at 5.7% in the first half of the year. Domestic demand remained strong and expanded during the period compared to the previous year and private investment also registered a healthy growth rate. To top it all, it was reported that Consumer Sentiments Index (CSI) improved whilst the Business Confidence Index (BCI) was stable, as businesses remained optimistic.

It has not come as a surprise that response to property fairs in general has been lukewarm. This is probably a fair reflection of the broader market sentiments, which is typified by a lack of feel-good factors. Buying a house is arguably the largest ticket item that a consumer would spend on in his lifetime. That demand for houses would be the first to dip when consumers shy away from spending should therefore be expected. This seems to be borne out by the marked reductions in product launches as witnessed in REHDA's recently released Property Survey 2006, reflecting developers' prudence and wary response to the market.