MARKET P U L S E
April 2014 Business Development Dept.
Property Bubble in Johor
Almas @ Puteri Harbour
Bleak Outlook for Property in Johor ?
FAST FACTS • •
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On average, about 33,000 homes transacted annually in Johor. As at 1Q 2014, there are 116,859 units under construction. As such, it shall take about 3.5 years to absorb the current incoming supply. The situation will be worse if another 162,579 units (with approvals) came into the picture. In 4Q 2013, there were already 15,385 unsold residential units in Johor.
Source: www.jpph.gov.my
• Massive number of houses are in the pipeline in Johor. • As of 1Q 2014, there are 279,438 residential units coming on stream. • 116,859 units are under construction while another 162,579 units had obtained development orders. • Country Garden recently launched 9,000 units of condominiums in one go which is unprecedented in Johor’s history. • UEM Sunrise reported slow takeup for its Almas @ Puteri Harbour with only 20% sold. • Unlike Klang Valley, most units are speculative in nature as Iskandar Malaysia lacks the critical mass. Source: The STAR (20 Feb 2014)
Major Land Transactions 15 April 2013 Dijaya purchased land from PNSB. • 1,172 acres • RM 1.3 billion (RM25 psf)* *Note: The RM1.3 billion paid comprises of land cost, profit sharing and interest. The actual land cost is RM537m / RM 10.50 psf (schedule of payment in next page).
20 March 2014 Dijaya sold part of the land to EcoWorld • 309 acres • RM 470.7 million (RM34 psf)
Portion purchased by EcoWorld (red)
Land formerly known as Canal City The deal that got Dijaya (Tropicana) into controversy with Selangor State Government. Dijaya had acquired the land in 2013 and was given a ‘favorable’ payment term over a period of 20 years. Part of the land was recently sold to Eco World. Dijaya made additional profit of RM 170 million. State is making a fresh offer of RM844.3 million (NPV to current value) as compared to the RM 1.3 billion (which was payable over 20 years).
Instalment Schedule Item Advance payment
Instalments (RM million) 50
(within 6 months)
Land Cost Year 1
19
Year 2
30
Year 3
30
Year 4
30
Year 5
30
Year 6
50
Year 7
50
Year 8
50
Year 9
60
Year 10
60
Year 11
60
Year 12
68
Total land cost
537
Compounded Interest
252
Profit sharing
458
TOTAL CONSIDERATION Source : RHB Research 15 May 2013
1,297
Major Land Transactions
• Mah Sing acquired 85.43 acre which is part of the Kelab Sultan Abd Aziz Golf Club, Shah Alam. • Paid RM 327.4 million or RM 88 psf. • 10% paid while the balance to be paid within 6 months of fulfilling certain condition precedents or 30 months after signing the SPA, whichever is later. • Proposed development with GDV of RM 2.5 billion, primarily of boutique homes (superinks, semi detached and bungalows. • Target launching early 2016 with development over 5-year period. (source: CIMB Research 13 March 2014)
85.43 ac RM 327.4 million (RM 88 psf)
Four Seasons , Kuala Lumpur
Item
Note
Development Type
Mixed use development with over 1.5 million sq ft of gross area with gross development value of RM 2.8 billion.
Components
Service Apartments : 242 units Hotel Rooms : 231 Retail Area : Approximately 300,000 sq ft (gross)
Land Area / Tenure
2.59 acre / Freehold
Height
343 meter / 1,124 feet
Number of storeys
65 storeys with 3-level basement.
Average Selling Price
RM 2,950 psf
Note
One of the 2 penthouses (11,984 sq ft) was recently sold at RM38 million or about RM3,200 psf, setting the highest selling price for condo in Malaysia.
Good Place Walkability Score (GWS)
A new Score is gaining popularity in the Real Estate industry. It is known as Good Place Walkability Score (GWS). It computes the walkability of a project to various amenities and facilities. • 90-100 is considered a walkers' paradise where residents don't need to own a car; • 70-89 is very walkable and residents probably don't need a car. • Below 70 are somewhat walkable but probably necessitate transportation to get around. • A score below 50 means the community is car-dependent, Below 25 means residents need to drive everywhere. (Note: GWS is still at early stage in Malaysia. Currently covering KLCC, Mont Kiara and Bangsar)
Source: goodplace.my
Dual Key Residence
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Apartments with a studio unit attached to it. Fast gaining popularity in Singapore and Malaysia. Sunway Geo is among the earliest to adopt the concept. The studio unit is equipped with a kitchen and bathroom. Its entrance is separate from that of the main unit, both of which open to a shared foyer. Option to rent out the unit as extra income or separate unit for family members. Sunway Geo
Terminology
SOHO (Small office home office) • Strata-titled properties on commercial land. • Combined office and home. • Subjected to KPKT’s regulation. SOFO (Small office flexible office) • Strata-titled properties on commercial land. • Void of internal partitions, offers flexibility to customised the layout. • Not subjected to KPKT’s regulation. SOVO (Small office virtual office) • Strata-titled properties on commercial land. • Fully equiped with telecommunication and other facilities. • Allow immediate business start ups. Source: propertyguru.com.my
FYI – Terrace Houses •
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Definition: The Uniform Building by-laws 1984 defines terraced house as building for dwellers which has been designed as a single unit linkedhouse. Started in the late 1800s in Georgetown, Pulau Pinang. It took in the form of shophouses built by the British East India Company. Evolved through various design changes such as the introduction of back lanes to accommodate night soil collection. Houses were also set back from the street behind a garden wall. The gardens gave way to car porch in the 1950s and five foot-way to overhangs, balconies and other shading devices.
• The terrace houses in Bibury, Gloucestershire, England is probably the first terrace houses built. • Known as Arlington Row. • It was built in 1380 as wool store, and later converted to farm workers houses in the 16th century.
Common Landscape Trees
Barringtonia Asiatica Common name/ Nama biasa: Putat laut Origin/Negara asal: Malaysia, Philippine & Pacific Rim countries Maximum height: 7 to 25 meter Landscape uses: Specimen planting in park and coastal area.
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