clock 10-08-2017
hit 2,435
Affordable Housing Not Bankable Unless You Have Money

SHAREDA hosted its first CEO Roundtable Conference this morning, 10 Aug, at Magellan Sutera Harbour. Minister of Local Government and Housing, YB Datuk Seri Panglima Haji Hajiji Haji Noor, officiated the ceremony this morning after reading Sabah's Chief Minister, YAB Datuk Seri Panglima Musa Haji Aman's speech on his behalf during this morning's opening ceremony.

The conference was hosted to encourage SHAREDA Youth and young entrepreneurs to come forward and focus more on the digital economy and to capitalized this trend and to understand on raising capital for bridging finance and end financing.

In his welcoming speech, SHAREDA Deputy President Datuk Sr Chua Soon Ping said that today, property developers are facing many challenges especially on financial issues and the pertinent issues are probably on the margin of finance for housing development.

A representative for Bursa Malaysia will be present to introduce the new board in KLSE:- Leading Entrepreneur Accelerator Platform, or also known as LEAP.

Property company WMG Holdings Bhd made a firm debut on the Main Market of Bursa Malaysia on Monday, 31 July. Managing Director, Mr Qeuk, received a momentum from Datuk Seri Panglima Hajiji Haji Noor to mark the company's accomplishment. F

LEAP Market is believed to encourage young entrepreneur including property players to raise capital with minimum requirements.

SHAREDA President, Mr Chew Sang Hai spoke of the financial issues and challenges faced in the property industry. Some of the points made by Chew includes:-

- Affordable housing is not bankable unless you (property developers) have deep pockets. - The development industry is not encouraged to grow for middle to long term business environment - Approved loans are capped a low ration for development costs. - Present bridging finance is outdated and not suitable for high-rise condominiums. - It is hard for developers to obtain bridging finance due to the low leverage of region exposure and poor knowledge. - A development is easily abandoned if the developer doesn't have deep pockets and cannot achieve at least 70% of sales.

Chew also mentioned about overhung properties. He also stated that after obtaining OC, many developers cannot restructure their bridging finance to term loan within the company, therefore getting themselves listed in CTOS.

The afternoon session will focus on the Digital Economic and Apps in today's industry.

Chua said that the effect of artificial intelligence (AI) will be magnified to impact not just manufacturing, retailing, transportation, health, cars but it will have an impact in the property industry too.

"Virtual property sales have already started by Edge Malaysia in KL, three weeks ago", he said.

With the development of computer systems and with AI, more and more tasks that normally require human intelligence can be performed by robots. Driverless cars have taken a significant leap forward in their practical applications and adoptions, Tesla cars in America are one of the classic examples.

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