Saturday November 20, 2010

Association calls for level playing field in property management

PROPERTY management practitioners want an open market and level playing field where the profession will be regarded as an open occupation based on competency, expertise and experience and not by mere legislation or purely by qualification.

According to Building Management Association of Malaysia (BMAM)president Datuk Teo Chiang Kok, if the proposed Bill to amend the Valuers, Appraisers and Estate Agents Act 1981 (VAEA) into the Valuers, Appraisers and Estate Agents (Amendment) Bill 2010 Act and changes pertaining to property management are to be passed, it will create an absolute exclusivity and monopoly for valuers to be the only ones allowed to undertake property management. Entrepreneurs who are now operating as managing agents will all have to wind up their businesses or become employees of valuers.

The two embedded clauses on property management in the proposed Bill will cast the net so wide to include facilities management, building maintenance management, building facilities management, building management and managing agents, he says.

Stressing that legislation compelling and restricting property owners to only appoint valuers to manage their properties has never been imposed anywhere in the world, Teo says property management is fundamentally a general management function like marketing management, sales management and operations management.

It should be an open occupation based on competency, expertise and experience and not by mere legislation or purely by qualifications. Owners either individually, or via company holdings or collectively as in sub-divided buildings, must have the inherent and indivisible rights and freedom to choose whomever they have confidence in to manage, operate, maintain, preserve and enhance their investments in their properties.

Their skills have been honed and recognised by property owners. Many have been head-hunted and gone on to work in neighbouring countries including China, Singapore and Indonesia. Some may migrate and contribute to the country's brain drain, Teo says.

He says that although 95% of the 20 clauses in the Bill to amend the Act covers mostly housekeeping matters, the two clauses are worrisome for BMAM members with regard to their future livelihood.

BMAM has no problem with 95% of the housekeeping clauses but we are opposed to the two clauses that will make property management the exclusive domain of valuers.

An open and competitive environment will ensure best practices and will be the most efficient and best value for property owners and consumers. Valuers must be confident to compete on an equal footing and level playing field. Owners must have the unfettered rights and freedom to choose and engage the best and deserving in a competitive environment, he points out.

BMAM is organising a roadshow and forum to raise awareness on the role and importance of property management, starting with Penang today.

Registered in November last year, the principal members of the BMAM are Real Estate and Housing Developers Association of Malaysia (Rehda), Institution of Engineers Malaysia, Malaysia Institute of Architects, Malaysia Association for Shopping and High-rise Complex Management, Associated Chinese Chambers of Commerce and Industry Malaysia, Malaysian Institute of Estate Agents, joint management bodies, management corporations and managing agents.

Stressing that the association is not against valuers performing in property management, Teo says the members are totally against the exclusivity and monopoly to be created solely for valuers.

Our main basis of objection is that property management is a multi-disciplinary occupation and valuers are not the only persons competent and qualified to perform property management. Property management partnerships and entities should be open to all disciplines without limitations that only valuers must be the controlling partners or shareholders.

Being a multi-disciplinary management function, he says property management encompasses a wide range of activities from operations, leasing, maintenance, credit control, safety and security to engineering.

Teo points out that different types of buildings require different emphasis of property management skills.

The demands and skills required for a shopping centre are very different from a medium-cost condominium. No one profession can fulfil all the needs of property management. Allowing free competition will promote greater competency and efficiency in the industry, he says. - By Angie Ng

From: http://biz.thestar.com.my/news/story.asp?file=/2010/11/20/business/7459425&sec=business

Saturday November 20, 2010

Opposition to changes in property law

By ANGIE NG
angie@thestar.com.my

VAEA amendments deemed unfair to owners

FOR owners and occupiers of stratified buildings, their biggest concern is whether the building they own or occupy will continue to be managed properly after the strata titles are issued and the management of the property is handed over to the joint management body or management corporation. Buildings that are properly maintained and managed usually are better sought after and can fetch higher capital appreciation and rental.

The maintenance and management of common property in all stratified buildings are governed by three laws the Housing Development (Control and Licensing) Act 1966 (HDA), the Strata Titles Act 1985 (STA) and the Building and Common Property (Maintenance and Management) Act 2007 (BCP).

Datuk Teo Chiang Kok says practically all properties in the country are currently not managed by valuers.

The three Acts are specific laws relating to the maintenance and management of common properties in a strata scheme.

In all these three acts, the people who can be appointed to carry out the maintenance and management of the common properties are a qualified person or agent (HDA), agents and servants as it thinks fit (STA) and any person or agent (BCP) .

While the three laws do not compel the appointment of valuers to maintain and manage common properties, the proposed amendments to the Valuers, Appraisers and Estate Agents Act 1981 (VAEA) compel all property managers to be valuers.

Building Management Association of Malaysia president Datuk Teo Chiang Kok says practically all properties in the country are currently not managed by valuers.

There are tens of thousands of persons engaged by landlords and as managing agents involved in property management. These practitioners collectively have years of experience and have proven track record, expertise and competencies in all aspects of property management, he says in an interview.

But their rice bowl may be affected if the proposed bill to amend the VAEA into the Valuers, Appraisers and Estate Agents (Amendment) Bill 2010 create an absolute exclusivity and monopoly for valuers to be the only ones allowed to undertake property management.

The liberalisation proposed will result in only valuers becoming the controlling parties.

The amendments pertaining to property management are contained in two embedded clauses in the proposed Bill.

According to Teo, these amendments seek to usurp the rights of owners and the Commissioner of Buildings (COB), and conflicts with the intend and functions of the joint management boards as provided for in the BCP (Act 663).

They also usurp the rights of owners and their management corporations and conflicts with the provisions of the STA (Act 318) that allows for the establishment of management corporations, Teo adds.

Teo says the STA and the BCP expressly allow property owners or legally incorporated entities or the developers the rights and responsibility to act as property managers to maintain and manage the properties, and to also appoint managing agents to perform property management and related services.

There is no requirement whatsoever in these Acts that these managing agents must necessarily be valuers, nor are there any related references in this regard in the VAEA.

The Commissioner of Buildings established under Section 3 of the BCP has already been vested with the necessary powers and authority to oversee and regulate property management. The proposed amendments to Section 21 of the VAEA Act would be in conflict with the BCP and the COB, he explains.

Teo points out that the amendments that seek to give valuers the exclusive monopoly to property management and create a closed-shop rent-seeking occupation, are definitely unfair terms of trade which The Consumer Protection Act seeks to prohibit and directly affronts the objectives of The Consumer Protection Act.

The amendments are also in conflict with The Competition Act which seek to ensure the economy and business sector are not distorted in favour of monopolies and oligopolies, he adds.

Teo explains that the inclusion of property management as a function that can be performed by valuers was added into the Valuers Act by way of an amendment in 1997.

The main reason for this introduction was to prevent foreign valuers to practise valuation in Malaysia under the guise as property managers.

We feel the valuers' concept of liberalisation is not altruistic as made out to be, but self-serving. Currently only valuers can be partners and shareholders in valuation firms. The liberalisation proposed is to allow non-valuers to own up to 49% of a valuation firm and only valuers can be the controlling partners or shareholders.

This liberalisation move is to allow valuation firms to grow faster than organic growth by inviting minority investors in preparation for the onslaught of foreign valuation firms coming into the Malaysian market. It is not addressing the multi-disciplinary and inclusive nature of property management, he adds.

Following a meeting between the BMAM members, the Board of Valuers, Appraisers and Estate Agents, Institution of Surveyors Malaysia, and Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia with Deputy Finance Minister Datuk Dr Awang Adek Hussin on Oct 18, all stakeholders involved in property management have agreed to withdraw the proposed amendments pertaining to property management from the Bill and a moratorium imposed on the implementation and enforcement pertaining to property management in the Act.

Teo says this is to allow industry practitioners to carry out a holistic review to develop and agree on a structure that is inclusive, fair, equitable and acceptable to all parties.

Report compiled from: http://biz.thestar.com.my/news/story.asp?file=/2010/11/20/business/7459425&sec=business

Saturday February 28, 2009

Brisk auctioning since downturn

By ELAINE ANG

Licensed auctioneer and auction firm Ng Chan Mau & Co Sdn Bhd general manager Foong Chon Wai’s schedule has been pretty tight since the beginning of the year and he is expecting to be even busier in the coming months.

“The number of properties up for auction has increased by 5% to 10% since September last year mainly due to foreclosures and we expect more to come as banks’ non-performing loans increase,” he says.

This could be the scenario going forward for the property auction business as the current economic downturn takes a toll on the ability of property owners to service their mortgages, resulting in more properties going under the hammer.

A sale by public auction is a way by which properties are put up for sale by their beneficial owners, usually a financial institution.

Prospective buyers for the properties will gather at the auction venue and put in their bids or offers for the properties that they are interested in.

The bidding will stop when the highest price is called out three times by the auctioneer when no further bids are made. The person who submits the highest bid will be declared the buyer for the property.

Foong, who has some 20 years’ experience in the auction business, expects to see an increase in lower-end properties (RM50,000 and below) coming up for auction in the coming months as the lower income group is the most affected by the economic downturn.

Leong Auctioneer Agency has also experienced an increase of 10% to 20% in the number of properties going for auction since October last year.

Owner and licensed auctioneer Leong Wye Hoong says more high-end condominiums, in the range of RM250,000, in the Kuala Lumpur city centre (KLCC) have been going under the hammer since the beginning of the year.

Many of the owners of the properties are expatriates who are looking to get rid of their properties while the prices are still high, he adds.

Condominiums in the KLCC vicinity are currently selling for RM1,200 to RM1,500 per sq ft versus RM700 to RM800 some three years ago.

“Prices for such properties have gone down by 10% to 20%. We have a handful of condominiums in the KLCC area up for auction next month and more may be coming up as borrowers default,” Leong cautions.

He foresees prices going down by as much as 30% for the condominiums, going forward, as supply currently exceeds demand and prices need to be low enough to attract bidders.

Nevertheless, Foong does not expect the price of certain properties such as landed residential properties, commercial properties such as shoplots and industrial properties, including factories and agricultural land, to come down as demand for such properties is still strong.

Properties which are not in demand in places such as Bukit Beruntung, Nilai, Rawang, Mantin and Bangi could see prices pushed down further, he notes.

“In the past two months, people have become more cautious when buying property. They do not simply buy properties anymore and will normally wait for the properties to hit below market price first.

“This year we expect properties which are not in demand, especially due to their locations, to go through two or three auctions before they start attracting bidders,” he says.

Properties going for first auction will have a reserve price that is the market value of the property but the price will decrease by about 10% in every subsequent auction if there are no takers.

“There are opportunities for buyers looking to pick up properties in an auction, especially in such bad times, as they may find a rare property which will not be auctioned in better times.

“Such properties will attract lots of bidders but if a buyer does not mind paying a bit more than the market price, he should be able to snap it up,” Foong says.

Leong concurs that not all auctioned properties would be priced below market value. “It all depends on the type of property and location. For example, a shoplot in SS2 Damansara could be snapped up at a higher price.”

Some auctions that Leong had handled recently even made quite a bit of profit for their owners – a shoplot in Bangsar generated a surplus of over RM300,000 from an auction while a piece of industrial land in Gombak made a surplus of over RM700,000.

Auctions have also become popular as people are more aware of the benefits of buying auctioned properties.

Foong believes that property buyers can get pretty good deals in terms of pricing via property auctions.

“Auctions also enable the transaction to be done in the open and in a very transparent manner,” he points out.

Leong says auctioneers are now more innovative in their marketing efforts to attract bidders to their auctions.

“We do not just put up notices in the surrounding areas of the properties but also distribute flyers, put up the property details on our website and even have roadshows to inform potential buyers of when and where a certain auction will take place,” he says.

A PUBLIC auction could be a way for property buyers to snap up properties at a bargain but the auctioneers’ advice is for buyers to do their homework first before buying an auctioned property.

Some of the factors to take note are:

Legal advice

Obtain a copy of the condition of sale and seek independent legal advice on it.

Property inspection

Prospective buyers should inspect the property they are interested in by looking at the external facade and location first. The property interior may not be available for viewing.

Vacant possession

It is not a requirement for auctioned properties to come with vacant possession.

Bank loans

Prospective buyers should consult banks on the loans available for the auctioned property to ensure that financing will not be a problem.

Title search

An official individual title search at the relevant Land Office or other relevant authorities should be conducted on the property to ensure that an individual/strata title has been issued and that there are no caveats attached.

Enquiries with developer

Make the necessary enquiries with the developer, proprietors and other relevant parties to confirm the terms and conditions of the sale such as whether the sale is open to all races or to Malaysian citizens who are bumiputras only.

Report compiled from : http://biz.thestar.com.my/bizweek/#Land & Property

The Management WISHES ALL OUR READERS "HAPPY DEEPAVALI"

To all our Readers, supporters, followers, and members;

Let this the 2010 festival of Deepavali burn away all your bad times and lights the way for your entrance into the good times. May all your worries, fears and troubles fade away within the Joy and Celebration of this Festival of Lights !

The truth is that existence wants your life to become a festival...because when you are unhappy, you also throw unhappiness all around.

So, let's all turn towards the light and whole heartedly decide Mutual Happiness is a Birth-Right of all man and women on this world.

The New Hilir Kota 1 Office Manager- Mr.Lim Lai Huat

Dear All,

Please be informed that the management committee of the Pangsapuri Hilir Kota 1 has hired a new office manager to assist the committee in the day to day running of the Pangsapuri.

It is hoped with this new position filled, the smooth running of the Pangsapuri will be streamlined for the benefit of all concerned parties.

Kehadapan :Semua penghuni pangsapuri,
Ingin kami memberitahu para penghuni bahawa Jawatankuasa Pengurusan Pangsapuri Hilir Kota 1 telah melantik seorang pengurus pejabat baru untuk membantu dalam menjalankan kerja harian Pangsapuri kami.
Kami berharap bahawa cabaran menguruskan Pangsapuri akan berkurangan dengan adanya pengurus baru kami untuk kepentingan semua pihak.
___________________________________________________________________________

Dari Utusan Malaysia Online:

ARKIB : 19/03/2010

Pangsapuri Seri Siantan daif

Oleh NAS NORZIELA NASBAH
utusanmelaka@utusan.com.my

MELIHAT dari luar Pangsapuri Taman Seri Siantan, Bukit Baru ini nampak bersih tetapi hakikatnya penduduk terpaksa berdepan dengan masalah lantai yang mendap, siling senget dan dimakan anai-anai.

MELAKA 18 Mac – ‘‘Kami sudah tidak tahan dengan keadaan pangsapuri yang busuk, kotor, rosak di sana sini dan sampai bila keadaan ini harus kami harungi.”

Itulah luahan penghuni Pangsapuri Taman Seri Siantan Bukit Baru dekat ini yang sudah tidak sanggup lagi berdepan dengan pelbagai masalah sejak 10 tahun lalu.

Bagi orang ramai yang melalui pangsapuri tersebut pastinya akan tertanya-tanya adakah ia masih didiami apabila melihat struktur bangunan pangsapuri empat tingkat sudah terlalu usang.

Lebih menyedihkan pangsapuri tujuh buah blok yang dirasmikan oleh Tun Dr. Mahathir Mohamad pada 1990 yang didiami kira-kira 3,000 penduduk daripada pelbagai kaum dilihat begitu daif tanpa penyelenggaraan yang sempurna oleh Majlis Bandaraya Melaka Bersejarah (MBMB).

Penduduk mendakwa keadaan struktur bangunan tersebut dilihat begitu membimbangkan dengan keadaan lantai yang mendap, siling senget dan dimakan anai-anai.

Tidak cukup dengan masalah tersebut, penduduk pula berdepan dengan bau busuk yang datang daripada saluran loji najis yang kerap tersumbat.

Tinjauan Utusan Malaysia baru-baru ini, mendapati keadaan bangunan pangsapuri tersebut sangat daif, kotor dan menjijikkan kerana tidak diselenggara dengan sempurna.

Keadaan menjadi teruk apabila pokok-pokok yang ditanam di tepi jalan, bagaikan dibiarkan begitu sahaja dengan ranting-ranting dan dahan menunggu masa untuk menghempap mangsanya.

Situasi itu dilihat boleh mendatangkan kejadian yang tidak diingini mungkin berlaku ke atas penduduk jika masalah yang dihadapi oleh mereka sejak 10 tahun itu tidak diatasi segera.

Dakwa penduduk lagi, biarpun banyak aduan telah dikemukakan kepada MBMB namun belum ada sebarang tindakan susulan yang diambil oleh pihak yang bertanggungjawab menjaga pangsapuri tersebut.

Mereka turut menyifatkan yuran penyelenggaraan RM30 sebulan yang dikenakan kepada setiap penduduk tidak berbaloi sekiranya masalah-masalah seperti ini tidak diselesaikan segera.

Seorang penduduk, Ali Seman, 63, berkata, dia begitu bimbang berikutan struktur simen konkrit di bahagian dapur rumahnya retak dan hanya menunggu masa untuk runtuh.

Katanya, kesan retak pada lantai berkenaan makin serius dan menyebabkan mereka sekeluarga menjauhi kawasan itu bagi mengelak keretakan semakin melebar dan bertukar tragedi mengancam nyawa keluarganya.

‘‘Ada satu ketika, saya pernah menampal simen pada satu bahagian, namun ia retak semula. Saya pernah mengadu masalah ini kepada MBMB namun keretakan ini masih belum dibaiki.

‘‘Justeru, saya berharap masalah keretakan ini dapat dibaiki secepat yang mungkin agar tidak ada sebarang kemalangan jiwa berlaku,” katanya.

Seorang peniaga, Md. Zan Md. Dzin, 50, pula berkata, nyawa penduduk pangsapuri itu berada dalam bahaya kerana terdapat keretakan di beberapa struktur bangunan tersebut.

‘‘Selain itu, mendapan lantai, kerosakan siling dan bumbung bocor serta saluran loji najis tersumbat turut berlaku.

‘‘Apa yang lebih mengecewakan, penduduk terpaksa mengeluarkan wang sendiri untuk membaikinya,” kata Md.Zan.

Menurut Md. Zan, keadaan menjadi lebih teruk apabila hujan lebat di mana dinding atas kedainya kerap basah dipercayai kebocoran dan keretakan bahagian dinding unit rumah di atas kedainya.

Menurutnya, kerana tidak tahan dengan kelewatan MBMB mengambil tindakan, dia terpaksa mengupah kontraktor swasta untuk mengepam dan membersihkan saluran berkenaan.

Seorang lagi penduduk Evawani Abdullah, 55, berkata, dia menghadapi masalah bahagian siling rumahnya yang rosak akibat dimakan anai-anai.

Menurutnya, dia yang tinggal bersama anak-anaknya tidak mampu untuk mengupah syarikat kawalan anai-anai kerana ia melibatkan kos perbelanjaan yang tinggi.

‘‘Tidak cukup dengan masalah anai-anai, saya menghadapi masalah palang besi di ruang balkoni yang sudah berkarat.

‘‘Keadaan ini sangat membimbangkan kerana bukan sahaja membahayakan keselamatan keluarga tetapi pejalan kaki lain yang lalu lalang di bawah kawasan pangsapuri tersebut,” katanya.

Penduduk di pangsapuri berkenaan merayu MBMB mengambil langkah perlu bagi memastikan bangunan yang mereka diami selamat.

Selamat Berpuasa kepada semua warga Hilir Kota 1