Pakistan Property & Real Estate News

CDA launches operation against encroachments

Islamabad: The Enforcement Directorate of Capital Development Authority (CDA) Thursday launched a grand operation against encroachments and illegal constructions.

During the operation, the authority demolished two houses, two shops, 29 rooms and eight boundary walls in different sectors of the federal capital. Besides, it challenged 10 persons for indulging illegal construction under the building violation act, said a press release issued here.

The directorate razed illegal constructions from a hotel and a private school in F-7/4 and F-8/3 sectors respectively. Two under construction shops were demolished on CDA land along service road in G-12 sector.

Similarly, four rooms in ‘katchi abadi’ of F-6/2 sector, one in G-8/1 sector, two houses, six rooms and five boundary walls in Bari Imam, four under construction rooms in sector F-11, three rooms and two walls in Moza Morian, while six rooms near Najam Market, F-8/4 were razed under the violation act.

Gakhar Plaza to be re-built soon

Rawalpindi: After rumours that the owner of Gakhar Plaza plans to allot the new plaza shops to erstwhile shopkeepers at the sixth floor upwards, a wave of unrest and anger has swept the affected traders of ill-fated Gakhar Plaza, which was totally gutted on December 20 last year.

They were highly infuriated with the rumours that the owner plans to deprive the shopkeepers of their original place and intends to give shops to them at the sixth floor and upwards, thus keeping all the first five floors to himself to rent them out to new persons. They said that if they were not adjusted at their original places, i.e at the floors where they had their shops, they would not allow that to happen and would go to any extent to stop the cupidity of the owner.

Talking to ‘The News’ members of Gakhar Plaza Traders Action Committee Nadir Khan and Sheikh Rafiq said that soon after the collapse of Gakhar Plaza, the owner had promised around 525 traders that equal number of shops would be allotted to them first, but now when the plan for the new building has been approved Raja Shahid Zafar is deviating from his commitment.

They said that with their hard labour they made the Gakhar Plaza as the hallmark of the city and the most prestigious name that people trusted. If these traders are forced to accept kiosks at the sixth or even upper floors, nothing could be more cruel and unjust.

They angry traders action committee demanded that they should be allotted shops at their original floors before the construction starts. If any attempt is made to cheat the traders they would launch a forceful movement against the owner of the plaza, and take all possible measures to thwart such rank injustice. They even threatened to bring out a ‘Kafan Posh’ rally at the site of Gakhar Plaza for which a date would be announced shortly.

Talking to ‘The News’ Raja Shahid Zafar the owner of the plaza said that Rawalpindi Cantonment Board (RCB) has approved the building plan of the new building of Gakhar Plaza and construction work would commence by the end of December. He added that the work of allotment of shops has already begun.

Giving details he said that the new plaza would be a multi-storey building with a basement as parking lot. The allotment of shops to the interested persons has been initiated from 6th-storey. “The affected traders would also be given their due share as per promise,” he added.

He however refuted the claims of Gakhar Plaza affectees and said that the process of allotment of shops has already begun. However, he did not comment whether the shops to the affectees would be allotted at their original floors and whether it would be done before the completion of the new building or not. He said that it depends upon the nature of work and structure of building. He said, “The affected traders would also be given their due share as per promise.”

House prices rise at slower rate in October

Nationwide says that seasonally adjusted average house prices rose at a slightly slower pace of 0.4% in October, compared with an increase of 0.9% in September. However, annual house price inflation turned positive for first time since March 2008, with an increase of 2.0% for the year to October 2009.

The average UK house price is now £162,038 - up from £161,816 in September.

Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said: "House prices rose for a sixth consecutive month in October, but the strong upward momentum in property values seen over the summer is showing some signs of moderating as we head into the autumn months. The price of a typical property was 0.4% higher on the month in October, compared to an increase of 0.9% in September and 1.4% in both July and August. The 3 month on 3 month rate of change - generally a smoother indicator of the near term trend - dropped back slightly from 3.8% to 3.4%.

"At £162,038, the average price of a typical UK property was 2.0% higher than a year earlier, representing the first time since March 2008 that the annual rate of change has been in positive territory. Over the first ten months of 2009, the seasonally adjusted index of house prices has risen by 4.6%, though relative to the October 2007 peak it is still down by 13.1%.

"A moderation in the rate of house price inflation was to be expected, as the very strong monthly increases seen over the summer months were unlikely to be sustainable over the long run. Slower house price inflation is also consistent with developments in housing market activity, as industry figures have shown that the pick-up in mortgage approvals for house purchases has lost some momentum in recent months. Although too early to tell for sure, it may also reflect a more natural level of stock available for sale coming to the market, alleviating some of the extreme shortages of property on the market seen during most of this year."

CDA starts I-11, I-12 Uplift

The Capital Development Authority (CDA) has initiated development of sector I-11, I-12 even before hiring of contractor firm to provide accommodation facility to more than 15,000 allottees yearning to have their own shelter in the federal capital.

“We have initiated the development on departmental basis. We have moved the machinery of our Machinery Pool Organization so that earthwork may be completed as soon as possible,” said a senior CDA official.

He said that the authority could not develop any residential sector for last several years, as the last sector developed by the authority was F-11 some two decades ago.

The housing shortage has swelled in the city to more than 50,000 units and the people are forced to bear skyrocketing house rents despite having paid the amount for residential plots in different sectors.

The official said that the basic purpose of activating MPO was to utilise our own resources, as the directorate was almost abandoned due to procedural flaws and described it as the only way to develop the stalled sectors.

When questioned, he said the contractor would be hired later as it would take months to finalize the contract agreement and added that MPO would execute the work on the rates defined by the National Highway Authority.

DHA Lahore commercial building owners warn of sit-in

Lahore: THE DHA Commercial Building Owners Association has threatened to hold a sit-in to protest against the increase in commercialization fee and property tax by DHA and Cantonment Board authorities.

Office bearers of the association made this announcement in a press conference held at the Lahore Press Club on Friday.

Raja Maroof, the general secretary of the association, said the body had already approached top military and civil leadership for help but in vain. He said possession of a plot in DHA was given after full payment of dues. He said owners of 460 commercial buildings in DHA had already paid full amount and cleared dues and were paying huge amount as property tax for many years. He said the DHA administration recently served bills amounting to Rs 450,000 to Rs 200,000 to commercial buildings in commercial areas of block F, G, H and L in Phase 1, DHA.

He alleged that the DHA administration has started allotment of areas left for Community Centres, clubs, cinemas, car parks, hospitals and playgrounds in commercial areas to its officials. He said earlier common builders were not allowed to construct building above the limit of 40 feet, which later increased to 55 feet and then to 77 feet for special investors and builders. He said recently the DHA demolished a marriage hall in U block, Phase 2, and started construction of a 110-feet plaza. He said another 136-feet commercial plaza was being constructed on a plot reserved for a cinema in R block, Phase 2, DHA. He said the cinema was shifted to a school.

He said another 160-feet plaza was under construction on 27 kanal land in phase IV, which was reserved for a playground. Likewise, space left for parking in front of a school in Phase III was now reserved for a commercial building, he maintained. He said that in phase 1, the DHA administration had constructed a commercial plaza on a residential plot located adjacent to a mosque.

Raja Maroof said that many commercial building owners had got stay orders from various courts but the DHA and Cantonment Board authorities did not accept these orders. He said Walton Cantonment Board has also increased property tax by 400 per cent and was collecting this tax by force. He said anyone raising objection to policies of authorities in DHA and Cantonment Boards had to face harassment in the form of disconnection of utilities as well as threats by the

DHA and Cantonment Board’s security staff.

Ireland just half way through its property slump with prices expected to tumble 45%

Property prices in Ireland could fall as much as 45% from the peak of the market in late 2006 due the economic downturn and increased costs of funding the banks, it is claimed.

Prices have already fallen 24%, according to Fitch Ratings and the average house is currently worth 7.5 times the average income, a ratio that is expected to fall to nearer 5.5 times the average individual income.

‘Tax rises, high unemployment, wage deflation and property supply overhang continue to undermine the country's property market,’ said Alastair Bigley, Head of Irish RMBS at Fitch.

The ratings agency warns that despite almost three years of house price declines, prices have yet to reach a sustainable level of affordability.

Rising unemployment is a particular concern. Unemployment is predicted to reach 12.5% by the end of 2009 and rise to 15% in 2011.

The difficult market will be further pressured by a rise in the cost of funding to financial institutions, driven by a higher than expected cost of the European Union's guarantee of banks' debt issuance compared to the current Irish state guarantee and a rise in interbank lending rates, Fitch also says.

Fitch analysts also expect all lenders to increase their mortgage rates.

‘It seems certain that mortgage affordability will suffer against a backdrop of a generally higher tax burden, increasing unemployment and negative to zero wage inflation,’ said Michael Greaney, associate director in Fitch's RMBS group.

‘Fitch therefore expects further house price declines and late stage mortgage arrears to rise,’ he added.

The warning comes days after Brian Lenihan, Ireland's finance minister, admitted that the country was on the brink of a debt compound spiral that risks a further doubling of public debt to €160 billion by 2013.

While the European Central Bank has cut interest rates to 1%, the full benefits have yet to filter through to Irish households.

Fitch said interbank lending rates have risen substantially, ‘reflecting market concerns over the creditworthiness of Irish banks and the Irish Sovereign’.

Extra-diametrical water pipelines for posh areas

Karachi: Amid various reasons for water scarcity in certain residential sectors of the city, distribution of water connections in violation to approved diameter of pipelines in posh areas comes off as one of the major causes.

A well-placed officer of engineer rank in the Karachi Water and Sewerage Board (KWSB) said that a few KWSB officers of higher rank have misused their position as they has sanctioned water connections for their personal benefits to hundreds of residents of Dhoraji Colony, Delhi Mercantile Cooperative Housing Society, CP Berrar CHS, Al-Hamra CHS, Darul Aman CHS, Bahadurabad and other posh areas in the vicinity of these residential sectors. These residential societies have been supplied water from Kidney Hill Pumping Stations and Dhoraji/Amir Khusro Road Pumping Station.

The officer also said that the situation inflicts colossal loss to the KWSB, as it has never gathered the due revenue from the water consumers of these residential sectors, adding that these consumers have availed water connections that are of twice than the approved diameter of water connection lines.

The officer further said that the KWSB officers had also allowed double water connections to these residents, adding that despite heavy consumption of water, the KWSB does not dispatch any water bills to these consumers because no water metres have been installed in those residential units.

The officer added that the water quota of deserving citizens was being exploited, while it was also adding to the KWSB’s financial problems.

One of the KWSB directors told Daily Times that it was not the KWSB’s policy to install water metres in residential units, however, it did have a policy to collect water tax as per the measurement of residential units in square yards, adding that installation of water metres would also create problems because as per the ongoing practices, the consumers would not pay the water bills if the water was inappropriate or unavailable in the water lines.

The director also said that many of the shopkeepers and residents in these areas have always denied payment of water taxes and dues, adding that around 60 percent of the residents pay only water bills.

The director confirmed that water connections with extra diametrical lines in violation to approved diameter lines have been given to these localities and thus the KWSB only recovers water taxes as per the area of a residential unit and not by the quantity of water consumed.

Official Cityscape figures confirm lack of confidence in Dubai real estate market

The number of property industry visitors to the Cityscape Dubai expo earlier this month which is the biggest in the Gulf region was down by 50%, it has been confirmed.

Before its opening the organisers said they expected a 30% fall in numbers but the figures reveal a much worse turnout with just 38,000 people attending the four day show.

It is a bitter blow to the Dubai real estate sector which shows no signs of recovery with prices, sales and rents continuing to tumble.

The number of exhibitors to Cityscape was also down to 218 compared with 340 last year when lots of new developments were launched amid a show of glitz and ostentatious.

But now the real estate industry has tumbled and all recent reports from analysts make depressing reading with no one predicting a turnaround in the coming months and the outlook for 2010 depressed.

Rohan Marwaha, managing director of Cityscape Dubai, tried to remain upbeat and said that Cityscape held up well by international standards.

‘We saw a shift back to market fundamentals at Cityscape Dubai this year.

The speculators and other amateur investors were conspicuous by their absence as were any hint of unrealistic or dazzling developments,’ he said.

‘The mood was sober and professional. However compared with other real estate events in Europe and Asia, Cityscape by comparison was very well supported.’

He added that international participation increased as a year-on-year percentage, with stands from Sudan, Angola, Paris, and companies from Canada and Australia, complemented by a healthy regional presence which extended across the GCC and Iraq.

He also revealed that the changing dynamics of the industry may well lead to changes to Cityscape for next year.

‘We will continue to tailor this event to meet the requirements of real estate professionals, whether locally, regionally or internationally,’ he explained.

Property prices in the emirate have fallen by up to 50% from their 2008 peaks and many developers who exhibited at Cityscape believed prices still had further to fall.

Figures also show that 472 commercial, residential and hospitality projects have been cancelled or on put on hold.

Source: [Property Wire News]

Small dams project to bring prosperity for Gadap residents

Karachi: The approval of the project of building 16 small dams on rain waterways in Gadap Town by the Sindh government has brought hope for the residents. The project sites have been identified and the authorities hope the work will start soon, The News has learned.

Gadap Town Municipal Officer (TMO), Gul Hassan Kalmati told The News that the dams construction project has been approved by Sindh Chief Minister (CM) Syed Qaim Ali Shah on the request of the Gadap Town Nazim. The CM issued directives to the secretary of the irrigation department, who has assured that the project would be initiated soon after a feasibility survey is conducted.

Kalmati said that the cost and capacity of the dams would vary, depending upon their location. The Town official told The News that the provision of water is the main problem for the communities living at far off areas, and hoped that the dams would provide water to the communities for domestic need and would facilitate small growers and herders. He said that these projects would aid the process of recharging wells and underground water as well.

Once the most prosperous area for farmers and herders, Gadap Town is now beset with numerous problems. The area used to contribute enough stock of vegetables and fruits to the markets of Karachi. After the excavation of gravel for construction purposes, the land gradually lost its fertility, compelling herders and farmers to migrate to other areas.

The TMO said that the irrigation department had already launched work to build two dams prior to this project. After the construction of 16 dams, he said, around 75 per cent of the town’s population would have access to safe drinking water. Out of these 16 dams, four will be built in Moidan Union Council, the most remote mountainous area, along the Hub River near the Sindh-Balochistan border. These four dams in Moidan will benefit the dwellers of all 75 small and scattered villages surrounding the area.

Residents of Moidan meanwhile told The News that there is a popular saying in the neighborhood, saying that “in Moidan every thing can be borrowed except water.” They said that that since underground water is contaminated in the entire area, they have to fetch water from far-off areas.

Another problem pointed out by Kalmati was that as a result of the activities of land grabbers, new villages had been built and the local communities had been disturbed. He said that the Gadap Town Nazim, after consultation with the local communities, has suggested to the provincial government that the process of village regularization be made transparent, especially in the suburbs of Karachi.

The Gadap Town official said despite the government’s assurances, residents of several far-off villages have still not got lease documents, and people feel unsafe there as the land grabbers continue to occupy the land. The residents of Karachi suburbs had expected more from the current government in terms of development. However, little uplift activity has left many annoyed with legislators, he added.

Karachi Rural Network (KRN) Chairman Salim Memon told The News that sincerity is lacking on the part of the government. It is for this reason, he alleged, announcements of new uplift schemes are only for purposes of paperwork, while there is no sign of these projects being implemented. He said that the most urgent need is to implement the ban on excavation of gravel from the natural river bed.

Memon also said that some influential people are involved in this business, which has almost destroyed agriculture, orchards, and greenery. He also pointed out that the entire livestock and dairy industry has been shifted to the city suburbs, where water supply is mostly contaminated due to the flow of waste from the city centre to the suburbs.

CDA chief wants parks in all parts of capital

Islamabad: Back in early 1970s, the country’s most prolific satirist, Sher Mohammad Khan, popularly known as Ibne Insha, wrote in one of his columns published in ‘Jang’ that the Blue Area (later renamed as Jinnah Avenue) is a dividing line between the rich and poor of this socially and economically segregated city. Today’s Islamabad tells us as to how prophetic were his assertions of the time.

However, Capital Development Authority (CDA) Chairman Imtiaz Inayat Elahi aims to bring about a change in the system, as he directed officials to plan the upcoming recreational facilities in all parts of the federal capital instead of converging those to a few specific areas and sectors, enabling the residents of all sectors to have such facilities close to their homes.

At present, there are a few recreational spots in the city such as the Pakistan Monument atop Shakarparian hillock, the Rose & Jasmine Garden (the oldest spot in town), the newly developed Lakeview Park, the F-9 park, the Saidpur Village, the Islamabad Zoo, the Japanese Children’s Park, Daman-e-Koh and Pir Sohawa atop Margalla Hills as well as the ‘hiking trails’ snaking up Margalla Hills to name a few.

Except for three, the Shakarparian, the Rose & Jasmine Garden and the newly developed Lakeview Park, the rest of the recreational facilities are all on the other side of the Jinnah Avenue or to put it more subtly, those are out of reach for the majority of population of the federal capital, living in the densely populated ‘G’ and ‘I series’ sectors. Similarly, most of the popular eateries and major shopping centres are all on the north side of the Jinnah Avenue. However, the best places for the inhabitants of those living on the southern side of the Jinnah Avenue are the weekly bazaars of the CDA.

Chairman Imtiaz Inayat Elahi, who visited the Lakeview Park on the banks of Rawal Lake Wednesday, directed the concerned departments in the CDA to spread out the future recreational projects in a way that inhabitants of all sectors should have something to enjoy nearer their abodes. He also directed them to plan these recreational projects self-sustainable to ensure those are successful and properly maintained by those who would be provided any sort of business/commercial activities in such recreational facilities.

The chairman was not pleased with the maintenance as well as security arrangements and ordered to take care of these important aspects on priority basis. “Proper security arrangements including fencing of the parks and recreational spots shall be made to facilitate the public and avoid untoward incidents,” he added.

The chairman also directed to relocate kiosks in public parks to give the recreational facilities made available in the park a decent and welcoming look to the visitors.

He said that the system of imposition of fine would be made more effective to overcome the littering issue in the parks. “All the vendors providing services in the parks should be licensed to ensure quality of the products and services to the public,” he added.

He said that the encroachments at the public parks, markets and other parts of the city be removed immediately for convenience of the public. He called upon the general public and traders to cooperate with the authority in this regard.

He also directed the concerned departments in the authority to ensure efficient removal of garbage and raw construction material as well as proper trimming of the bushes along the roadsides on regular basis. He said that the footpaths along different roads of the city be properly maintained to facilitate the pedestrians and ensure smooth flow of traffic and avoid accidents.

HK govt voices worries about property price bubble

The Hong Kong government is to closely monitor the residential property market which is fears is in danger from a price bubble.

It may even release more land to deflate prices, according to Donald Tsang, the city’s chief executive.

His warning comes just after Henderson Land Development revealed that it sold a duplex apartment for HK$439 million, a record price.

‘The relatively small number of residential units completed and the record prices attained in certain transactions this year have caused concern about the supply of flats, difficulty in purchasing a home, and the possibility of a property bubble,’ Tsang told the Legislative Council.

‘The government will closely monitor market changes in the coming months.

When necessary, we will fine-tune land supply arrangements with a view to quickening the pace of bringing readily available residential sites to the market,’ he said.

Demand for property has surged this year, particularly for luxury units, putting pressure on the government to free up more land, which it tightly controls.

The government has not held any residential land sales for around 18 months.

Strong demand from wealthy mainland Chinese buyers, who account for around 11% of sales, is driving up prices according to Nomura. ‘Strong liquidity, low supply, strong external demand and aggressive mortgage lending are creating ideal conditions for another housing bubble in Hong Kong,’ said Nomura property analyst Paul Louie.

Last year, the fewest apartments were completed since at least 1972. Prices, especially for luxury homes, have rallied in 2009 on record-low interest rates and an influx of money from China.

The government is Hong Kong’s biggest provider of land and has altered supply to support or depress prices.

Tsang is probably also concerned that a luxury real estate boom could hike up prices in the affordable housing sector.

‘He’s more concerned whether mass-market housing prices would get pulled up by the momentum in the luxury market.

If that happens it will become a social issue,’ said Wong Leung-sing, an analyst with Centaline Property Agency.

Tsang also announced policy changes aimed at promoting the redevelopment of old industrial buildings, which have fallen into disuse as companies use cheaper factories in China instead.

Illegal building demolished in New Muslim Town, 5 sealed at other places

Lahore: THE staff of the Town Planning Wing and Commercialization Directorate, LDA, continued its operation against violations of building bye-laws here Thursday and demolished a building besides sealing seven others for carrying out commercial activities on residential plots.

The LDA staff demolished a show room that had been illegally constructed after altering the original building plan of a residential flat No.6-F, Canal Cottages, New Muslim Town, Lahore.

The structure was initially sealed and later demolished by LDA after fulfilling all legal formalities.

The staff also sealed five residential properties in Gulshan-e- Ravi and two others in Allam Iqbal Town which were being unlawfully utilized for commercial purposes.

The sealed properties in Gulshan-e-Ravi included a store set up on plot No 410C, a dry clean shop at plot No 138 D, a betel (pan) shop at plot No 181 D, a store at plot No 202 D and a clinic at plot No 60 A.

The properties that were sealed in Jehanzeb Block, Allama Iqbal Town included an illegal rickshaw stand set up at plot No 557 and a fish shop at plot No 6.

The staff also recovered an amount of Rs 230,000 on account of commercialization fee from two private schools operating in Gulshan-e-Ravi.

768 housing units planned

Islamabad: About 768 housing units for low paid federal government employees in BPS-1 to BPS-16 will be ready by the end of next year.

Director General (C&PM) Pakistan Housing Authority, Ministry of Housing and Works, Athar Nawaz Malik told this agency here on Thursday.

Giving details, he said basic infrastructure to a total of 368 D-type and 400 E-type apartments had been laid in Sectors G-10/2 and G-11/3 and their completion would be ended by next year.

CDA would provide basic infrastructure to other identified land in I-16 sector for further accommodation of allottees, he added.

He said that the government had no funding for the construction of such units and the recent work was being executed from amount collected from the payments made by the allottees through down payments and installments.

To make best use of identified land, the concept of land use remained a priority and maximum stress was laid on vertical constructions instead of horizontal, he added.

Replying to another question, he said to generate funds for the ongoing and upcoming projects, ministry would sell out additional housing units to general public at market rates.

The income obtained from such sale would be utilized to overcome financial issues and for initiation of other housing projects, he added.

Iraq hailed as new emerging market for property investors

Iraq is the new emerging real estate investment market of the Middle East as security concerns dwindle and the government commits itself to major property developments, it is claimed.

Groundbreaking residential projects are being announced on a monthly basis and the mayor of Baghdad has revealed a five year plan to build 300,000 housing units in the city.

Sabir Al-Issawi said that the country is talking with a wide variety of developers from across the world who are interested in investing in the country’s real estate market.

One New Zealand company, Atconz Real Estate Development, said it is one of the most exciting emerging markets at present. It is about to start work on a $100 million project to build 1,565 residential units in a suburb of Ebril, the capital of the Kurdish region which is regarded as the most stable part of the country.

Chief executive officer Dean Michael said the company also wants to get involved in other projects in Iraq and is seeking partners for future developments.

The project, called New Azadi, will start before the end of the year and is due to be completed in three years. It will consist of 810 two bedroom houses, 700 four bedroom houses, 55 five bedroom houses, four schools, a hotel, a supermarket and a plantation as well as commercial and community services.

‘We want investors to be aware of the important potential of this new emerging market.

The government in Iraq has identified the need for 1.5 million new residential units across the country.

Our project represents only about 1% of that potential but we hope it will encourage more investors to engage in this market,’ he explained.

Michael explained that there are fewer security concerns about working in Iraq.

‘Security in the Kurdish region is safe compared with that of the south of Iraq. In addition the local people are welcoming all visitors investing money or bringing technology to the area,’ he said.

Meanwhile seven international companies are bidding to build Baghdad’s new £3 billion metro.

New disclosure law in NZ on discounts needs clarification according to real estate agents

A new law that comes into effect next month in New Zealand will prevent real estate agents from siphoning off discounts related to selling a client’s property.

Agencies throughout the country will be obliged to comply with the Real Estate Agents Act 2008 from November 17 which means revealing to vendors the various discounts, rebates and commissions they receive from suppliers such as printers, sign-makers and advertisers.

Agents usually take out bulk business with such firms, but until now the deals have been secret and vendors are in the dark about whether discounts given to the agent are passed on to them.

But although the law demands disclosure, it does not demand that the discounts should be passed on.

Many in the industry believe that they should be unless the agent has specific authority to keep them.

Chair of the new Real Estate Agents Authority which is responsible for regulation, Kirsty McDonald, said that disclosure will make the industry more transparent.

‘Examples could include the agent getting a discount on the cost of advertising from a newspaper, or the agent receiving commission from a home staging service for referring clients.

In all cases, the agent will be required to attach a simple form to the agency agreement detailing any rebate, discount or commission received,’ she explained.

But the law is not crystal clear according to Bayleys Real Estate, one of the largest firms in the country.

Managing director Mike Bayley described it as ambiguous, especially the definition of ‘rebates, discounts or commissions’.

His view is that the requirement relates only to the relationship between the agent and the vendor or purchaser, and not to third parties such as sign-makers or newspapers.

‘Our interpretation is that sales consultants have to be impartial and transparent in their transactions with all parties and we support this.

Our scale of charges is transparent right from the very first meeting with a client and all marketing costs are clearly set out when the sales consultants present their business plans to the vendor at the outset of any campaign,’ he said.

Barfoot & Thompson director Peter Thompson says his firm is seeking clarification from the Real Estate Agents Authority on what exactly has to be disclosed.

Birmingham event a resounding success

The second A Place in the Sun Live event of the year has taken place at Birmingham’s NEC and once again delivered a strong consumer audience.

The three day event, from 2nd-4th October, saw one of the show’s highest ever ratio of visitors to exhibitors and confirmed the cautious optimism being felt across the industry.

Alisdair MacDonald of exhibitor Polar GM said: 'This has been the most productive exhibition we have attended in the UK over the last two years.

Numbers of course are down but the quality of clients now visiting is excellent and they’re generally serious buyers.

We took a number of reservation deposits on the Thailand Koh Lanta project we are marketing. An extremely professional, well run, targeted exhibition.'

Andy Bridge, MD of organizers APITS Ltd, was pleased with the attendance of 3,891 visitors (excluding exhibitors and staff) and said it matched the floor plan.

'You can only have as many stands at the show as the visitor footfall will satisfy,' he said.

'We knew the likely audience size and designed a floor plan to reflect it.

The result was that 108 exhibitors had almost 4,000 visitors to share between them and that works; it works for the audience because the show is not too big or overwhelming, it works for exhibitors because there is less competition and plenty of visitors to go round.'Exhibitor David Palmer of Perfect Getaways agreed: 'As a small to medium-sized company we are extremely prudent on advertising costs. APITS Live has proved to be excellent value for money.'

The quality of visitors was key to the weekend’s success, with many exhibitors saying that the NEC audience was now better prepared and further ahead with their plans to purchase overseas.

According to Pat Tan of Prudential Palms 'attendance at the show exceeded our expectations and the quality of the visitors was excellent. Many were ready to buy.

'TM Real Estate Group’s Jeremy Aston said: 'The exhibition has been better in terms of quality of client and in numbers than we expected', while Graham Pyle of Countryside international saw visitors of 'excellent quality'.

The most popular stands were for properties in the US, Spain and Turkey.

Model Town residents flay unauthorized commercial activity

Lahore: The residents of Model Town Society (MTS) have criticized the ongoing commercialization and unauthorized construction in the society with the connivance of MTS staff.

They expressed these views in a meeting of MTS Residents Association held here on Monday. The agenda of meeting was to discuss illegal commercialization in the residential areas of the society, unauthorized and illegal construction by the residents with the connivance of the MTS staff, installation of billboards and bus stop signs without tenders, increased traffic nuisance caused by the alleged illegal construction of a big wholesale store in a designated fruit garden and addition of 2nd and 3rd floors in the markets without any substantial increase in rent, etc.

Amer Azam, the president of MTS Resident Association, said that one of the biggest concerns of all residents was the ongoing illegal commercialization in the residential areas and the lukewarm response of the society management against such culprits. “Residents now feel that the ones who violate the law have the upper hand and the support of the management and the ones who have been aggrieved by such illegal activity have no one to turn to,” he maintained.

He alleged that due to financial gratification all illegal structures were allowed to be constructed whereas drawings of those structures reflected that they were not according to the by laws of the society. These illegally constructed houses and commercial ventures were there for all to see except the management which turned a blind eye for obvious reasons, added. In all such cases, the adjoining neighbors, who were the aggrieved parties, complained but no action was being taken against the violator, he claimed.

Noshaba Mudasar raised the issue of bill boards and bus stop signs, which had been awarded without tenders. She also raised concern about signboards being installed in the green belts of the Model Town.

All present were very concerned about the addition of two more floors in the markets of Model Town. They said the permission was granted without any consideration to the parking issues or without raising the tariff for the additional floors.

Amer Azam said that another point of concern was the construction of houses by the employees of the society in parks. He said MTS officials, with connivance of the management and each other had got themselves allotted land in the parks and built houses there. He maintained that the rooms built for tube-well operators were also occupied by some employees even after the tube wells were relocated to other sites.

Shoaib, elected member of the society, expressed concern about the pathetic state of the Hindu temple, which had been encroached upon to the fullest and now resembled a kacchi abadi.

Dr Fauzia, ex-elected member, condemned the use of generators by influential residents, saying many people had installed big generators outside their houses, especially in C block and the society was unable to do anything about it.

British house prices rise in September

LONDON - British house prices climbed 0.9 percent in September from August, the fifth monthly increase in a row, reaching levels last seen one year ago, home-loans provider Nationwide said on Friday.

However, the group warned that house prices may not continue at the current rate amid soaring unemployment and tight lending conditions.

The British property market has been set sharply back by the effects of the financial and economic crisis.

The average value of a home in Britain stood at 161,816 pounds (176,800 euros, 257,000 dollars), unchanged from a year ago, Nationwide said in a statement.

“The further increase in house prices is very much consistent with improvements in a broad range of economic and financial indicators over the last few months, all of which suggest that the most intense phase of the recession and financial crisis has probably passed,” said Nationwide chief economist Martin Gahbauer.

“However, given that the housing market still faces considerable headwinds in the form of high unemployment, restrictive credit conditions and an impending withdrawal of the stamp duty holiday, it would be surprising to see house prices continuing to increase at the very strong rate seen in recent months.”

Britons are currently exempt from paying stamp duty — the tax paid by property buyers — for houses and flats costing less than 175,000 pounds. The so-called “stamp duty holiday” runs until the end of the year.