Property Hunter September 2014 by CH Lee

/// SPECIAL EDITION

/// COVER STORY

/// HOT TOPIC Property Development In Sarawak: The Land of New and Exciting Opportunities /// HOT TOPIC Overseas Investors: Why Are They Not Investing In Sabah? /// HOT TOPIC Prime Development: Making the case for Prime Development Investment

SEPT 2014

ISSUE 58 RM8.90

• • • • •

Property Hunter Shortlisted In Two Categories At The Spark Awards 2014 Nature Living @ Condominium Kristal Bandar Universiti Seri Iskandar Ridgewood @ Taman Bercham Permai The Land Of New And Exciting Opportunities

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IWH DOUBLE SPREAD

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06  07 | Cover Story /// Contents

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Feature Property Showcase - Kristal Kondominium by Ipmuda Properties Sdn Bhd - Bigwheel Industrial Park by GIIB Development

Feature Property Showcase - Bandar Universiti Seri Iskandar - Ridgewood @ Taman Bercham Permai - Citywoods - The Gardens @ Polo Park

Sabah Property News

Exclusive Interview Sr. Chua Soon Ping - Going Against The Grain

Sarawak Property News

Hot Topic Property Development In Sarawak The Land of New and Exciting Opportunities

Hot Topic Riverine Diamond @ Kuching Riverine Resort - A Golden Opportunity

Hot Topic The Blue Ocean For Property Investment In Kuching

Hot Topic Prime Development: Investing In Prime Development

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West Malaysia Property News

Printing

100

Contributor: Michael Yeoh Property Investment: A Game of Chance

Logistic

102

Contributor: Enoch Khoo Does Sabah have what it takes to attract overseas investors?

48 Jalan Gaya, 88000 Kota Kinabalu,Sabah Tel: +6088 224 000 Fax: +6088 234 929

104

Contributor: Chris Tan Reading Your Tenancy Agreement

Distributor

108

International Property News

Lot 1, 2nd & 3rd Floor, Block A, Damai Plaza Phase 3, Luyang, 88300 Kota Kinabalu, Sabah. Office Main Line: +6016 833 8079 Tel/Fax: +6088 270288

112

Banking and Investment News

118

Property Listing

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Cover Story Eco World

Hot Topic Overseas Investors: Why Are They Not Investing In Sabah?

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Special Edition SHAREDA Propex 2014

Feature Property Showcase Affordable 3-Bed 2-Bath Apartments From RM230,000 to RM250,000

Sam Lee

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PropertyHunter

Propertyhunt3r

12 /// Special Edition

SHAREDA Propex 2014

Ecoworld

Huayang

With an emphasis on healthy living and sustainability, EcoWorld has created an integrated industrial hub and majestic eco township in Iskandar Malaysia

Huayang demonstrates its aspiration for exceptional lifestyle quality with its collection of luxury and affordable homes with its projects in Perak and Johor.

Sneak Peek of October Issue Hot Topic Mixed land use allows for a diverse mix of uses such as residential, commercial and industrial to enhance economic vitality and active social interaction among the residents. Mixed Developments in Sabah takes a look at this developing trend with an overview of new and upcoming projects in Sabah. Hot Topic Commercial Developments in Sabah explores the rising demand for more on temporary and functional designed buildings to set up trade and industry such as shoplots, shopping malls, showrooms and factories. This is a complementary feature for the first Property Hunter Commercial Expo to be held in October 2014. Hot Topic Grade A Office buildings are a testament to the success of its tenants and is the highest quality of office space available. We take a look at this slowly emerging market in Sabah and its impact on the current property development scene.

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/// Special Edition

Photo by Louis Pang Studio

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/// SPECIAL EDITION

MESSAGE FROM THE GUEST OF HONOUR Y.A.B. DATUK SERI PANGLIMA MUSA HAJI AMAN The Chief Minister of Sabah

ongratulations to the Sabah Housing And Real Estate Developers Association (SHAREDA) for organising PropEX 2014. The popularity of PropEX attests to the vibrant economy in Sabah made possible by proactive cooperation between the private sector and the government. Malaysia as a whole has been able to maintain projected annual economic growth, allowing the country to stay on track in achieving the goals of a developed economy by 2020. In Sabah, prudent and business-friendly policies have enabled us to keep pace with the national progress. Major revenue-earning sectors such as oil and gas, and palm oil are experiencing rapid expansion and scale-up in investments. These will translate in the coming years into higher income and consumer demand, such as for housing. I am impressed with the spirit of corporate social responsibility demonstrated by SHAREDA and its members especially in its pledge to build 10,000 units of affordable homes in Sabah. SHAREDA will also build 10 houses for hardcore poor families. The setting up of a Youth Committee in SHAREDA is to be lauded as it helps in the creation of a new generation of business leaders, and ties in very well with the government’s aspiration to build human capital in the country. While acknowledging the contribution of SHAREDA in Sabah’s economic development, the state government is mindful of some problems members have been facing such as the issue of capital contribution to Sabah Electricity Sdn Bhd (SESB) and the high incidences of housing loan rejections. These add to development cost and impact growth. I am confident that these and other issues can be resolved, or at least mitigated, based on the long history of SHAREDA’s close working relationship with the government and its agencies.

MESSAGE FROM YB DATUK SERI PANGLIMA HAJI HAJIJI HAJI NOOR Minister of Local Government And Housing, Sabah

ongratulations on the staging of the 2014 edition of PropEX. Every year this property exhibition adds another feather of excellence and progression on the cap of SHAREDA. Syabas! The housing development industry is the anchor that sustains a multitude of businesses. I am pleased to have been working with a succession of capable and responsible leaders in SHAREDA, and witnessed its transformation from just an association of house-building businessmen to a body of forward-looking and socially conscious corporate citizens. It’s fair to include SHAREDA in the credit for the economic well-being enjoyed in Sabah today. As we as a nation push towards our goals as a developed economy by 2020, the dedicated support of a competent private sector is essential. As envisaged in our Economic Transformation Programme, private sector capital and initiatives are the key ingredients for success. In this contest and in the contest of Sabah, SHAREDA has been and still is a vital cog in the economic wheel. Ideas drive progress. This has been the hallmark of human civilization. SHAREDA is in the forefront in promoting sustainability through the adoption of green technology, efficient construction methods and renewable energy. From the ministerial perspective, we appreciate SHAREDA’s willingness in working with and within government initiatives in fulfilling its pledges in the supply of affordable homes. In conjunction with PropEX 2014, may I wish SHAREDA continued success in its endeavours.

I wish SHAREDA and PropEX participants a fruitful event.

YB Datuk Seri Panglima Haji Hajiji Haji Noor Minister of Local Government And Housing, Sabah

Y.A.B. Datuk Seri Panglima Musa Haji Aman The Chief Minister of Sabah

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/// SPECIAL EDITION

/// Cover Story

MESSAGE FROM Y.B. DATUK ABDUL RAHMAN

Minister of Urban Wellbeing, Housing And Local Government

reetings to Sabah Housing And Real Estate Developers Association and to all exhibitors and visitors to PropEX 2014.

The health of the Sabah economy and the robustness of the real estate sector are reliant not only on the part of the Government but the active participation of the private sector. The successful implementation of events such as PropEX 2014 highlights the role SHAREDA play in achieving this target. At the same time, housing and property developers play an important role in fulfilling our Beautiful Garden Nation vision which, driven by the National Landscape Policy. Environmental preservation and the creation of a balanced, harmonised surrounding are some of the main aims of Malaysia’s development journey. Therefore, it is heartening to know that SHAREDA’s member companies have embarked aggressively on new, resource-efficient and sustainable approaches to property development in Sabah. My ministry looks forward to working with developers in Sabah in satisfying consumer demands for developments that satisfy aspects of quality of the living environment, security and aesthetics, but also that of the surrounding areas. Sabah’s many natural attributes, combined with the artistry and ingenuity in landscape design have the potential of creating a unique range of properties second to none in this part of the world. I wish you all the best and to the success in organising of PropEX 2014!

Abdul Rahman Dahlan

MESSAGE FROM MR FRANCIS GOH FAH SHUN SHAREDA President (2013-2015)

ropEX brings together housing and real estate developers and supporting businesses and professional disciplines. It is an avenue for the constant showcase of housing products to public by real estate developers. These have combined to make the property and real estate development a vibrant and cohesive sector. While we are grateful to the collective support of the state and federal governments, and the individual support at the ministerial and agency/local authority level, we remain hopeful that the collaboration and responsiveness will continue to improve. This is necessary as our industry is being called upon to help fulfill the numerous government objectives such as MyHome and affordable housing schemes. From land conversion to development plan approvals to financing, rising cost and labour shortage, housing and real estate developers face a myriad of issues. While it must deal with the quasi legal obligation of meeting the principles of a home-owning democracy, it is also obliged to the social responsibility of ploughback to the community and satisfying the obligation to sustainability. Given the wide influence of the housing and real estate development industry on the well-being of many economic sectors, it is SHAREDA’s wish that continuing and open channels for dialogues with government authorities be maintained for the expedient resolution of any hindrance to progress. SHAREDA is grateful to our Chief Minister Y.A.B. Datuk Seri Panglima Musa Haji Aman for his leadership that ensures a stable political and business environment which ensures growth. We are also grateful to the Minister of Local Government and Housing Y.B. Datuk Haji Hajiji Haji Noor who has for many years been an important bridge between our industry and the government. Last but not least to the Federal Minister of Urban Wellbeing, Housing and Local Government Y.B. Datuk Abdul Rahman Dahlan for echoing our sentiments at the federal level and to introduce the first ever MyHome scheme with RM30,000 incentive given to the qualified first time house buyers. We wish every visitor and every exhibitor the best at PropEX 2014.

Francis Goh

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/// SPECIAL EDITION

Aug 29-Sept 1, 2014 10.00 am - 8.00 pm

Sabah Trade Centre, Kota Kinabalu

MESSAGE FROM SR CHUA SOON PING

Organising Chairman of SHAREDA PROPEX 2014 SHAREDA COUNCIL MEMBER (2013-2015)

elcome to PropEX 2014 by Sabah Housing and Real Estate Developers Association. You are participating in the iconic, most authoritative and comprehensive property exhibition in Borneo now in its 15th year.

EXHIBITION LAYOUT PLAN

The longevity of PropEX is not a stroke of luck. It is the result of SHAREDA’s meticulous effort in staying with the trend, listening and responding to the constantly changing consumer tastes and sentiments. The property and real estate business is evolving as never before due to the mobility of the people and the dissolving boundaries. Economic growth has translated into affluence; and affluence brings about the desire for peace of mind, quality and aesthetics as well as corporate social responsibility. PropEX 2014 seeks to address every home buyer’s concern and idiosyncrasy by incorporating speaker sessions on feng shui and green technology; support the government’s affordable home programme by setting aside valuable exhibition floor for a MyHome and Affordable Home corners. With the help of Jabatan Perumahan Negara, applicants for affordable homes (which comes with a government subsidy of RM30,000 for each approved candidate) need only to approach our one-stop counter to ascertain the status of their applications. The 130 booths at PropEX 2014 hope to provide answers to first-time home buyers, and offer up outstanding investment opportunities for repeat home buyers and overseas buyers. For the first time in the history of PropEX, Mandarin will be a major second language in the speaker sessions aimed at the potential buyers from China, Taiwan and Hong Kong. We hope buyers and exhibitors alike a fruitful visit to PropEX 2014. Selamat Hari Kebangsaan.

CHUA SOON PING

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/// SPECIAL EDITION Exhibitors’ Listing

(1) Property Developers NO

COMPANY NAME

PROFILE / DESCRIPTION OF EXHIBITS & SERVICES

BOOTH NO.

AEROPOD SDN BHD (SP SETIA GROUP) B-10-G, Ground Floor, Block B, KK Times Square, 81000 Kota Kinabalu. Tel: 088-218255 Fax: 088-219255 Email: philomena.chai@spsdia.com Website: www.spsetia.com

S P Setia will feature of 7 commercial and residential projects, from through-out Malaysia and also Singapore.

90, 91, 92, 93 94, 95, 128,129

APEX JUTA SDN BHD Jalan Istiadat (Opposite Sabah Trade Centre), 88400 Kota Kinabalu. Tel: 088-237555 / 266 / 168 / 267 / 218 Fax: 088-242157 Email: bronica.sikula@pacificity.com.my Wesbite: www.pacificity.com.my

The team behind Pacificity are dedicated to creating an outstanding integrated commercial cum residential center that will be the new entertainment hub for Kota Kinabalu, living up to the maxim of “A City Within the City”. Pacificity infuses entertainment into the retail trade, bringing new consumer-engaging concepts of “Retail-tainment to Sabah. It is the largest commercial development in Sabah and raising the bar with professional building management.

BINA PURI PROPERTIES SDN BHD Lot 104-107, Block L, Lorong Plaza Permai 5, Alamesra, Sulaman Coastal Highway, 88400 Kota Kinabalu. Tel: 088-485727 / 737 Fax: 088-485773 Email: cathrineanson@gmail.com Website: www.binapuri.com.my

Jesselton View Condominium is a well-planned by Bina Puri Properties Sdn Bhd. It is situated at Hilltop Luyang about two minutes away from Kota Kinabalu City Centre. The Jesselton view is deliberate in one block of 11 storey high end condominium. It is low density comprising of 80 units with 27 different layout to choose from. The built-up area range from 806sf to 2,922sf, pricing starts form RM533,000.00 to RM2,092,000.00.

CBD PROPERTIES (DU) SDN BHD (ANCHOR LAND HOLDINGS, INC.) No 25 B, Jalan SS21/60, Damansara Utama, 47400 Petaling Jaya. Tel: 03-77107777 Fax: 03-77100888 Email: infodu@cdb.com.my Website: www.cdb.com.my

Monarch Parksuites Luxury Condominium at Manila Bay, Philippines.

119

DAPAN HOLDING SDN BHD Lot 9 & 10, Block B, Ira Manis Center, Off Ring Road, 88800 Kota Kinabalu. Tel: 088-383 333 Fax: 088-383332 Email: joy@bandarsierra.com Website: www.bandarsierra.com

Bandar Seirra Apartment, Phase 3A2-2, new and final phase, 70% completed with 2 bedroom (712sf) and 3 bedroom (952sf). Starting price from RM202,725.00 to RM291,825.00.

DOCOMO DEVELOPMENT SDN BHD Lot 22, 1st and 2nd Floor, Block c, Millennium Centre, Jalan Lintas, Kepayan, 88200 Kota Kinabalu. Tel: 088-311911 / 312828 Fax: 088-313122 Email: docomo.sabah@gmail.com

Docomo Development Sdn Bhd is launching the stunning and painstakingly conceived BEL’DRA 3-Storey LINK-BUNGALOWS this PROPEX SHAREDA. A limited edition of only 32 units, this latest addition of Taman Putra Pogun offers complete comfort and luxury in a coveted living. The design touted two unique ensuite Master Bedroom with Garden Terraces, one measures 1,097 sf and another 905 sf, the first of its kind in Sabah. You get all the space you need for privacy and a growing family. DOCOMO –building communities, bridging ties.

126, 127

ENG HAN GROUP MDLD 7068, LoT 320, 1st Floor, Bandar Sri Perdana, Phase 3 KM 4, Jalan Silam, 91100 Lahad Datu. Tel: 089-863395 Fax: 089-863397 Email: deltaldu@gmail.com

[Taman Idamansara Lahad Datu Sabah:- 2 Storey Semi Detached, 22 Units with OC; 2½ Storey Terrace, 8 Units for Registration; 2 Storey Terrace, 42 Units for Registration.] [Taman Denai Puchong Selangor:- 3 Storey Terrace House & 3 Storey Shop Office (Open for Sale).] [Taman Titi Height Penang:- 3 Storey Terrace House with OC.]

32, 33

GKS DEVELOPMENT SDN BHD No. 2, Lorong Kacang Tanah 1, Jalan Kolombong, 88450 Kota Kinabalu. Tel: 088-386999 Fax: 088-388881 Website: www.topgreen-gks.com

Taman Cerah Phase 6b consists of 17 units of type ‘C’ & ‘C1’ Double Storey Terrace House. Taman Cerah Phase 7b consists of 17 units type ‘C’ Double Storey Terrace House. Both project are situated at Jalan Kota kinabalu-Tuaran By-Pass, Kota Kinabalu, Sabah.

GRAND MERDEKA DEVELOPMENT SDN BHD Lot B625-A, 6th Floor, Wisma Merdeka, Phase 2, Jalan Tun Razak, 88000 Kota Kinabalu. P.O.Box 11614, 88817 Kota Kinabalu. Tel: 088-267889 / 257889 / 246889 Fax: 088-215889 Email: cherci@grandmerdeka.com Website: www.grandmerdeka.com

Recognizing the abundance and excellent potential for commercial development in the sprawling suburban community of Menggatal, Kota Kinabalu, Grand Merdeka Development Sdn Bhd with great confidence presents Grand Merdeka, an integrated mixed development. Driven by the rising populations and heavy traffics in the bustling vicinity of the Capital City of Kota Kinabalu, the Grand Merdeka project spreads across approximately 19 acres of prime land with a wide frontage facing towards the busy Tuaran Road, and located against a backdrop sprouting residential area of Bandar Seirra, and Taman Rimba. Poised to be a one-stop commercial hub in the North of Kota Kinabalu, Grand Merdeka offers a 3-storey Grand Merdeka Mall, adjacent to essential provisions outlets such as hypermarket and home furnishing, stores, a.k.a Grand Merdeka Home, 5 to 6-storey of GM Corporate signature office suites, wellness centre, hotel and Specialty Mall located at lot 3.

54, 55, 56, 57

GREENFIELD CITY SDN BHD Lot 4, Block b, Ground Floor, Lintas Jaya Uptownship, Jalan Lintas, Kepayan Highway, 88200 Kota Kinabalu. Tel: 088-858922 / 858933 Fax: 088-725225 Email: greenfield_avoo@yahoo.com.my

Exclusive Condominium situated in Menggatal Prime Land. Each unit at affordable pricing from RM250,000.00 onwards. Open for Sale.

124, 125

GUOCOLAND (MALAYSIA) BHD Level 19, Block B, HP Towers 12, Jalan Gelenggang, Bukit Damansara, 50490 Kuala Lumpur. Tel: 03-27261000 Fax: 03-27261010 Email: sophieng@guocoland.com.my Website: www.guocoland.com.my

The iconic Damansara City, the flagship development of GuocoLand Malaysia, is the first integrated development in Kuala Lumpur’s prized Damansara Heights, comprising DC Residency, premium office towers, lifestyle mall and a luxury 5-star hotel. The awardwinning DC Residency offers contemporary designed and luxurious residences equipped with refined fittings and appliances such as Poggenpohl, Miele, Gessi Emporio and Catalano. Damansara City is a designated Entry Point Project under the Economic Transformation Programme to elevate Malaysia to developed nation status by 2020. GuocoLand Malaysia, the property arm of Hong Leong Group, is one of the recipients (in Malaysia) for the BCI Asia Top 10 Developers Awards 2014. It is part of the Singapore-based GuocoLand Ltd which is a leading property developer with markets in China, Malaysia, Singapore and Vietnam.

70, 73

HAP SENG PROPERTIES DEVELOPMENT SDN BHD 13-0, 13-1, 13-2, Lorong Plaza Kingfisher 6, Plaza Kingfisher, 88450 Kota Kinabalu. Tel: 088-433711 Fax: 088-438711 Email: srinorfitrianims@hapseng.com.my Website: www.hapsengland.com

Hap Seng Properties Development Sdn Bhd, a leading property developer in Sabah, is the property development and investment arm of Hap Seng Consolidated Berhad. The company has an established, proven track record of over 40 years in building high quality properties which focus mainly on low-rise, landed residential properties and commercial properties in major towns on Sabah including Kota Kinabalu, Tawau, Sandakan, Semporna and Lahad Datu.

36, 37, 38, 39

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COMPANY NAME

PROFILE / DESCRIPTION OF EXHIBITS & SERVICES

BOOTH NO.

INTERLAND PROPERTIES SDN BHD 2-0-1 Lorong Tanah Permai, Ground Floor, Block B, Wisma TP, Mile 1½, Jalan Tuaran, 88400 Kota Kinabalu. Tel: 088-233123 Fax: 088-233023 Email: info@interland.com.my Website: www.harringtonsuites.com

The 30-storey luxury condominium with 116 units with individual private lift which is surrounded by rich flora & fauna and within 5 minutes from the city. The state-of-the-art building beautifully landscaped offering multi-tier security system with full perimeter CCTV, a generous 20,000sf recreational podium, grand lobby, air-conditioning units & ceiling fans for living/dining and bedrooms, hot water system to all ensuite bathroom centralized Astro Beyond & high speed broadband infrastructure ready, quality porcelain tiles for living & bathrooms, quality flooring for bedrooms, and luxury sanitaryware fittings. Size range from 2,445sf to 3,455sf towering up into the sky – Lofty Living Come True.

40, 41, 42, 43

IPMUDA PROPERTIES SDN BHD Bangunan Ipmuda, No. 1, Jalan 13/1, Petaling Jaya, 46200 Selangor. Tel: 03-79543718/012-9700350 Fax: 03-79546112 Email: matin@ipmuda.com.my Website: www.ipmudaproperties.com.my

Condominium Kristal Height, a modern high-rise residential development consists of 95 units across 3.6 acres at land sitting on elevated ground. With very low density, it provides the exclusively and privacy for residents to enjoy the facilities, and breathtaking view of South China Sea.

122, 123

ISKANDAR WATERFRONT CITY BERHAD G-08, Block 8 Danga Bay, Jalan Skudai, 80200 Johor Bahru. Tel: 07-3365566 Fax: 07-3365088 Email: cindylee@tebrauteguh.com.my Website: www.tebrauteguh.com.my

Botanika – The Luxury of Your own Waterfront LifeStyle– Tebrau Coast. As the TEBRAU COAST realizes its potential as a truly international financial and cultural center, Botanika -Tebrau Coast fulfils the demand of discerning international buyers who focus on the details that define quality of life; enhanced living space, integration with the natural environment and a home finished in pure bliss. Presenting TEBRAU COAST, a prime waterfront development master plan along the Tebrau River and 5 minutes from Singapore via EDL, comprising luxurious villas, serviced apartments, commercial centre, shopping galleria and an iconic waterfront recreation area.

84, 85, 86 , 87, 88 , 89

KHAZANAH JAYA SDN BHD A-12-4, Northpoint, Mid Valley City, No. 1, Medan Syed Putra Utara, 59200 Kuala Lumpur. Email: kjchrisliew@gmail.com

New Double Storey Link House with larger build up, located along the Pan Borneo Highway.

KINSABINA SDN BHD Wisma Kinsabina, Noonsob Baru, KM 7, Jalan Penampang, 88300 Kota Kinabalu. Tel: 088-724111 Fax: 088-711741 Email: ksbnsb@gmail.com Website: www.kinsabina.com

City Point Complex & Hotel Suites, Arah Permai Sdn Bhd – With GDV of RM 300 million, this 16-storey luxury commercial block unveils 318 units 5-star hotel suites, 4 levels branded retail outlets, 5-storey car park, offices and grand ballroom which accommodates up to 2000 guests. All in a prime and strategic location; Casablanca Town House & Residence, Yat Chung Development Sdn Bhd – A proposed 94 units of double/triple storey terrace house adjacent to Taman BDC in Kolombong Inanam. Proposed 400 units of 20-storey condominiums. Accessible to KK City in 10 minutes; Unicorn Tower, Kinsabina Sdn Bhd – 3 blocks of sleek and stylish 768 units of condominium in Jalan Bundusan, Penampang. A perfect choice for a sought after neighborhood; Riverside @ Sodomon, Kinsabina Sdn Bhd – A low density of exclusive 133 units lifestyle condominiums in Kg. Sodomon, Petagas. Your own community with ample facilities & amenities within minutes to KKIA and KK City.

96, 97, 98, 99 100, 101

K.K.I.P SDN BHD Lot 11B, Industrial Zone 1, No. 9, Jalan 1A, KKIP Selatan, Kota Kinabalu Industrial Park, 88460 Kota Kinabalu. Tel: 088-498001 Fax: 088-498011 Email: kkipsb@gmail.com Website: www.kkip.com.my

KKIP is conceived and designed to be a modern metroplex that offers a comprehensive mix of investment, education, commerce, leisure, and residential opportunities. With a master plan that is firmly grounded on environmentally sustainable development principles, and ISO 9001:2008 certification, KKIP provides not only solid investment opportunities; It also offers an idyllic living and working environment. Together with its solid infrastructure, enviable location and sound logistics, KKIP is poised to catalyze growth not only for the state but for the investor in BIMP-EAGA and beyond.

116, 117, 118

LANDMARK PROPERTY SDN BHD Lot 68 & 69, Ground, 1st & 2nd Floor, Wisma LTF, Lorong Buah Pala 3, Taman Nelly, 5½ Mile Kolombong, 88450 Kota Kinabalu. Tel: 088-430088 Fax: 088-439671 Email: ktidsb@yahoo.com

7, 8

LPL 118 CORPORATION SDN BHD Lot 15, Ground, 1st & 2nd Floor, Block B, Damai Point, Luyang, 88300 Kota Kinabalu. Tel: 088-256118 Fax: 088-267118 Email: sales@lpl118.com

Exhibit 38 Units of 3-Storey Industrial Showroom and Office at KKIP. Exhibit Idaman 118 of 12 Units 3-Storey Semi-Detached and 5 Units of 3-Storey Detached Office cum Warehouse.

106, 107, 108, 109

MAH SING GROUP (CAPITOL AVENUE DEVELOPMENT SDN BHD) Lot No. 23 & 23 A, Ground Floor, Block D, KK Times Square, Phase 1, 88100 Kota Kinabalu. Tel: 088-488398 Fax: 088-488 008 Email: hy.ong@mahsing.com.my Website: www.mahsing.com.my

Mah Sing Group Berhad commenced in 1991. Since then, the Group has built a solid reputation for its steadfast commitment to deliver top value project in prime residential, commercial and industrial properties across the nation’s most-sought locations, from Kuala Lumpur and Selangor, to Johor Bahru, Penang and Sabah. It is this enduring commitment and an unblemished track record that lead to the Group’s renowned stature as the nation’s premier lifestyle developer.

102, 103, 104, 105

MEGATECH ENERGY SDN BHD 1st Floor, Lot 47, Taman Mesra Shophouse, Mile 3, Jalan Penampang, 88300 Kota Kinabalu. Tel: 088-245400 Fax: 088-246400 Email: megasb01@gmail.com

One Marudu Commercial Centre (Phase 1) Project located at Pekan Baru, Jalan Korongkom, Kota Marudu which consists 57 Units of 2 – 3 Storey Commercial Shoplot.

MELIGAN SDN BHD P O Box 14193, 88848 Kota Kinabalu. Tel: 088-771795 Fax: 088-761733 Email: rolandling@yahoo.com

Taman Sri Juta Kinarut offers Single Storey Terrace and Double Storey Terrace Houses. Located in the upcoming developing area in Kinarut coupled with Government ongoing widening of Putatan highway. Within 15 km from Kota Kinabalu CBD, this offers an attractive choice for your home selection.

NAIM LAND SDN BHD 1st Floor, Wisma Naim, 2½ Mile, Rock Road, 93200 Kuching, Sarawak. Tel: 082-226606 Fax: 082-226609 Email: caroline.yeo@naim.com.my Website: www.naim.com.my

Naim will feature iconic Bintulu Paragon integrated development, Sarawak’s largest integrated development comprising the tallest condo tower in Sarawak and other business, retail and hospitality components, and also its popular Bahagia Residences apartment development and Pusat Bandar shophouses located within vibrant Bandar Baru Permyjaya Township, regarded as Miri’s largest township. In addition to Bintulu and Miri, expo goers will have the opportunity to find out more about Naim’s other popular developments in Kuching, such as the exclusive Sapphire On The Park Condo situated within the upmarket Kuching Paragon integrated development, Kuching’s new lifestyle district.

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PEMBINAAN KAYA BORNEO SDN BHD Lot 15, Ground Floor, Block C, DBKK Shop No. 21-0, Iramanis Centre, Jalan Lintas, 88300 Kota Kinabalu. Tel: 088-428118 Fax: 088-439225 Email: kbgsh888@gmail.com

Millennium Residency Phase 1B - Jalan Bantayan Minintod (Inanam) Price – RM249,677.00 Onward Size – 688 sf – 807 sf Project Type – 4-Storey Walk-Up Apartment Facilities – Swimming Pool, Basketball Court, Security Guard, Badminton Court, Kids Playground, Multipurpose Hall.

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PRIMA LAND & DEVELOPMENT SDN BHD F-31/32-3 Signature Office, KK Times Square, Off Coastal Highway, 88100 Kota Kinabalu. Tel: 088-486666 Fax: 088-486667 Email: tony70my@yahoo.com Website: www.primaland.com.my

Spacious Terrace Houses at Prima Sumundu, Phase 2 available for sale.

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VC BUMIJAYA SDN BHD Unit E29-2, 1st Floor, Block E, Kepayan Perdana Commercial Centre, 88200 Kota Kinabalu. Tel: 088-413032 Fax: 088-413031 Email: info@vcbumijaya.com

BANDAR MINGO, a new township located at the intersection of the New Bridge Road and Old Beaufort Bridge Road planned by property developer VC BUMIJAYA SDN BHD on a 50 acres site. BANDAR MINGO will be developed over 5 phases. Phase 1 comprises mainly 109 units of 2-Storey & 3-Storey of Shop Office. Selling price from RM665K. Contact us at 088-413032 or Email at info@ vcbumijaya.com for further details.

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RA CONCEPT DEVELOPMENT SDN BHD Lot 23-1, 1st Floor, Block C, Riverside Plaza, Kingfisher Park. Tel: 088-385511 Fax: 088-385581 Email: racdev.sb@gmail.com

The Light Residences – 22-Storey high end condominium is situated just adjacent to the Penampang By-Pass. It’s minutes away from KKIA and Kota Kinabalu City Center. Nestled in the peaceful greenery of the City’s prime Penampang district, it offers both serenity and convenience. Every home is a corner unit with 2 car parks with total unit of 228 of 3 bedrooms, with picturesque views of the city sky lights beyond, countryside, distant hills and sea, oriented to give you the best natural lighting and ventilation. Your home will be as bright and cheerful as you had always intended it to be.

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Wah Mie Group recently started its new commercial development in Sandakan, named “Sejati Walk”. It is a neighborhood Lifestyle Mall with a total saleable floor area of about 173,965sf. Sejati Walk is able to provide a holistic hospitality to the community as well as an eco-friendly low density pedestrian mall with natural lighting and ventilation yet providing a high level of human comfort. Sejati Walk is designed to connect the surrounding community together with its strategic yet convenient location. Sejati Walk is the focal point for Sandakan residents to enjoy new experience of comfortable street life.

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REMAJAYA SDN BHD Suite 6, 8th Floor, Wisma Perindustrian, Jalan Istiadat Likas, 88400 Kota Kinabalu. Tel: 088-259021 / 257021 Fax: 088-256021 Email: bay21too@gmail.com

Bay 21 is ideally located in the most prestigious location within the heart of Likas Bay with glorious panoramic view of the sea and lush greenery of Mt. Kinabalu. It is only a stone’s throw away from CBD of Kota Kinabalu and Likas Sport Complex. Bay 21 comprised of 28 storey with 150 units of stylish residences of Type A (2,326sf), Type B (1,309sf), Type C (1,309sf), Type D (1,854sf) as well as featuring 24 units exclusively designed business suites with approximately 1,100 sf of spacious elegance above the skyline and urban pace of Kota Kinabalu City. Bay 21 Too consists of 28-storey with 325 units luxurious and elegantly furnished one (1) to three (3) rooms business suites from Type A (395sf – 1,309sf), type B (621sf), Type C (932sf), Type F (1,239sf). You will experience a fresh level of lifestyle with the modern contemporary architecture that offers functional and flexible layout and innovative designed.

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WAH MIE GROUP Lot 51, Ground Floor, Block F, Ruang Singgah Mata 3, Asia City, 88020 Kota Kinabalu. Tel: 088-252177 Fax: 088-265581 Email: tkwong1030@yahoo.com Website: www.wahmie.com

RIVERSON CORPORATION SDN BHD Unit no. 30, 1st Floor, Block E, KK Times Square, Coastal Highway, 88100 Kota Kinabalu. Tel: 088-247299 / 248299 Fax: 088-246399 Email: pouline@riversoncorp.com Website: www.riversoncorp.com

Riverson’s development is a truly diversified portfolio comprising of 4 main pillars; The Gleneagles Kota Kinabalu Medical Centre, Riverson Suites, Riverson SOHO and Riverson Walk (Boutique Retail Shops). It will make its marks and become an integral part of a new lifestyle destination centre of Kota Kinabalu City – with the promise of the very best in medical care and wellness, the ideal business and work centre, a stylish urban living environment and a vibrant existing places, all under one roof, within one destination. For more enquires, call 088-247 299 / 248299.

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1 Avenue is a complete township concept project that provides contemporary, stylish and fashionable amenities to transform Kota Marudu into a world of modern living. With its prime location situated strategically right in the heart of Kota Marudu, 1 Avenue offers golden opportunity for investors with great potential for capital appreciation. 1 Avenue Commercial Centre Phase 1 & 2 – 3-Storey Shoplots and Offices, First 4-Star Hotel in Kota Marudu, Food & Beverage Building & First Cineplex in the northern region of Sabah. 1 Avenue Residence – First Condominium Lifestyle Apartment with Elevators in Kota Marudu. 1 Avenue Square – 2-Storey Light Industrial Shoplots. BE PART OF TRANSFORMATION… BE PART OF 1 AVENUE!

WK MAJUJAYA SDN BHD Lot 9CF01 & 9CF02, 9th Floor, Block C, Kompleks Karamunsing, 88300 Kota Kinabalu; P O Box 15250, 88862 Kota Kinabalu. Tel: 088-233322 Fax: 088-237833 Email: correycmf@gmail.com

The Palm Condominium, Kinarut is just 15 minutes’ drive south of Sabah’s state capital Kota Kinabalu. The development consist of 5 towers of 16-Storey Condominium with 128 units each tower; a total of 640 units for the 5 towers. Floor area for each unit is 1,060sf/1090sf with 3 bedrooms & 2 bathrooms, designed for a comfortable place to live in complete with club house & swimming pool facility. The Palm Condominium, Kinarut is a dream home for everyone; situated right in front of South China Sea. Adjacent to The Palm Condominium is The Palm Square Commercial Centre consists of 1 supermarket and 70 units of 2 & 3 Storey Shop Offices which is an ideal business hotspot and convenient for the residence nearby to shop around.

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RK GROUP (MALAYSIA) SDN BHD S-8, Level 2, Fiesta @ Axis Pandan, Jalan Cempaka, 68000 Ampang, Selangor. Tel: 03-9282 1008 Fax: 03-9200 2888 Email: ernestlim@rkgroup.com.my Website: www.rkgroup.com.my

An Unmatched Investment – Sang Sarang Resort: A Magnet for World Citizens Leveraging on Lumut’s connectivity and burgeoning tourism industry, Kinta Berkat has embarked on a new project to develop Sang Sarang Resort, Perak’s first integrated premium natureresort that is poised to be a magnet for world citizens due to its unparalleled architecture, strategic location, and integrated offerings. Nestled in a valley, cupped by the verdant greenery in the seaside town of Lumut, Sang Sarang Resort is both a forest retreat and a seafront paradise. The development comprised of 9 units of forest villas in an idyllic setting and 262 units of apartments in a 28-storey high rise tower with panoramic view of the Dinding River as well as Pangkor Island.

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WSG DEVELOPMENT SDN BHD Suite No. E9 & E10, 5th Floor, CPS Tower, Centre Point Sabah, No. 1, Jalan Centre Point, 88000 Kota Kinabalu. E-mail: wongsiewguen@yahoo.com Website: www.theplamkinarut.com

SARA-TIMUR REALTY SDN BHD Unit No. R7 Shop Office, Luyang Perdana, Phase 2, Off Jalan Penampang, 88300 Kota Kinabalu. Tel: 088-257703 Fax: 088-257705 Email: infokk@sara-timur.com Website: www.sara-timur.com

First Dual Key Concept in Sabah. Sophisticated suite of two complete housing separated by just a wall. The two adjoining apartments, each equipped with their own bath and kitchen for basic living needs, provides close proximity while at the same time maintain privacy since they are ultimately separate units – no shared bath, kitchen and living rooms. Families still able to keep a close watch on their elderly parents next door. Dual master bedroom design, also demonstrate a mutual respect between the two generation.

SEMANGAT GLOBAL SDN BHD Lot 53, Block I, Ground Floor, Signature Office, KK Times Square, Off Coastal Highway, 88100 Kota Kinabalu. Tel: 088-486778 Fax: 088-486780 Email: suteramaju@yahoo.com Website: changchenggroup.com.my

CPark is a 5 star integrated commercial development situated in the Capital City of Kota Kinabalu, Sabah. As an international acclaimed tourist destination, it sprawled across 6.5 acres of prime land facing a 4 busy lanes of highway, CPark encompasses an international private college, 390 units of SOVO and the iconic tallest hotel in Kota Kinabalu housing 288 units of luxuriously furnished suites.

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SBC CORPORATION SDN BHD Shop Lot No. 1, The Peak Suites, Jalan Signal Park, 88400 Kota Kinabalu. Tel: 088-266336 Fax: 088-257733 Email: vpvm@sbcgroup.com.my Website: www.signalhill.com.my

The Peak SOHO is situated at the much sought-after location which offers the best of both worlds – Kota Kinabalu City and the beautiful Likas Bay. It is an extraordinary place that offers a stylish approach to a contemporary living. These SOHOs are designed to offer a very well-planned space that is both private and functional.

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SABAH URBAN DEVELOPMENT CORPORATION SDN BHD (SUDC) P O Box 11911, 88821 Kota Kinabalu; 9th Floor, Menara MAA, Lorong Api-Api 1, 88821 Kota Kinabalu. Tel: 088-251144 Fax: 088-266109 E-mail: leenatb@yahoo.com Website: www.sudc.com.my

Sabah Urban Development Corporation (SUDC), incorporated in 1972 is wholly owned subsidiary and property development arm of Sabah Economic Development Corporation. SUDC is the main vehicle of the government in the development of the property and real estate industry which include Residential & Satellite Townships, Urban & Rural Commercial Properties, Properly Planned Industrial Estates, and Tourism Resorts & Hotel. SUDC… the definitive urban developer!

THE W PROPERTY COLLECTION SDN BHD Lot 77-1, Ground & 1st Floor, Wisma New Far East, Jalan Lintas, 88300 Kota Kinabalu. Tel: 088-260727 Fax: 088-272187 Email: yeeyipmui@thewgroup.com.my Website: www.thewgroup.com.my

University Utama Condominium 3.

TOP GREEN DEVELOPMENT (SABAH) SDN BHD No. 2, Lorong Kacang Tanah 1, Jalan Kolombong, Kolombong, 88450 Kota Kinabalu. Tel: 088-386999 Fax: 088-388881 Website: www.topgreen –gks.com

1. 14 Units of 3-Storey Semi Detached in Taman Bukit Hijau (Green Hill Park) at Jalan Kota Kinabalu – Tuaran By-Pass, Kota Kinabalu Sabah.

TROPICANA LANDMARK SDN BHD Level 3, Penampang Point, Mile 4, Jalan Penampang, 88200 Kota Kinabalu. Tel: 019-8566738 Fax: 088-718127 Email: gary.kho@tropicanacorp.com.my Website: www.tropicanacorp.com.my

Tropicana led the Malaysian property revolution when we designed the extraordinary 625- acre Tropicana Golf & Country Resort back in 1992. With our pioneering concept of resortstyled living, suddenly, landed homes and condominiums didn’t have to fall into a sea of sameness any more. The vision to recover what was lost in city living continues today with our award-winning portfolio of residential, office and retail developments, which invests significantly in landscaping, recreational facilities and a vibrant environment for the whole family. As we expand our horizons across the Klang Valley, Johor, and Penang; we have leveraged on our land bank of close to 2,000 acres with an estimated GDV of RM 70 billion as well as Group nett assets of RM2.6 billion, we remain committed to our original vision – to deliver living concepts that ensure a better quality in the whole Asia in 2013 and again in 2014.

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TOTAL RELIABILITY SDN BHD 1st & 2nd Floor, Sublot 1, Lot 3042, Block 10, Eastmoore Commercial, Centre, 2 1/2 Mile, Rock Road, 93200 Kuching, Sarawak. Tel: 082-242688 Fax: 082-248788 Email: kccampuspark2010@gmail.com

1. Total Reliability Sdn Bhd: (i) Tapah Sentral, Kuching – Single Storey Terrace (45 Units), Double Storey Terrace (66 Units), and 3 Storey Shophouses (20 Units). (ii) Campus Park, Sibu – 3 Storey Shophouses (20 Units). 2. Campus Park Sdn. Bhd.: Samarahan Greens – 308 Units Apartments & 30 Units Commercial.

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APAD CONSULTANCY PTY LTD New Bob Centre, 11 Jalan Gottlieb, 7th Floor Penthouse, 10350 Penang. Tel: 04-229 1111 Fax: 04-229 7777 Email: tricialoh@apad.com.au Website: www.apad.com.au

One-stop service platform on Australian properties information, property management, taxation and migration services. We provide hassle-free service to our clients in building their property investment portfolio. APAD believes in creating and building strong loyal partnership with all our clients, strategic partners, developers, builders and team members to achieve their goals, dreams and obtain financial freedom and security in life through Australian investment properties.

K.K. SOO & CO Unit 13-2, Lot 13, Level 2, Block B, Lintas Square, Jalan Lintas, 88300 Kota Kinabalu. Tel: 088-233189 Fax: 088-233189 Email: kksoo.co@outlook.com

We are a Real Estate Agency who provide services of Buy, Sale & Rent of new development and sub sale properties. Provide advices on property market, investment opportunities, finding buyers dream home etc. We also assist developers on the marketing of their projects. We are a team of young and dynamic Real Estate Negotiators who strive for customer’s satisfaction.

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BANK MUAMALAT MALAYSIA BHD Ground & Mezzanine Floor Wisma Gek Poh, No 18, Jalan Haji Saman, 88000 Kota Kinabalu. Tel: 088-239122 Fax: 088-239128 Email: juslina@muamalat.com.my Website: www.muamalat.com.my

Bank Muamalat offers you a Home Ownership Made Easy, finance or refinance your property with our SMART MORTAGE PLAN. Pembiayaan Kenderaan Muamalat-I, GRAD PACK, Muamalat Ar-Rahnu – Tunaikan Emas anda hari ini. Pinjaman sehingga 80%. Menyediakan perkhidmatan pembayaran bil melalui i-muamalat. Rebutlah peluang memenangi RM2 juta dengan menyertai kempen Deposit OH YEAH 2.

MALAYSIA BUILDING SOCIETY BERHAD Lot 144, Q6 Block Q, Lorong Plaza Permai 1, Alamesra Sulaman, 88450 Kota Kinabalu. Tel: 088-485660/650 Fax: 088-486297 Email: eddie@mbsb.com.my

Provide Services: - Mortgage Loan, Personal Financing, Bancassurance and Deposit/Savings.

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(4) Building Materials / House Wares / Fittings / Locks 26

2. Kondominium Canggih (Canggih Heights Condominium) is a 8 to 12 Storey Condominium, off Jalan Kota Kinabalu – Tuaran By-Pass, Kota Kinabalu, Sabah. Kondominium Canggih has a total of 92 units.

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PARK GAMES EQUIPMENT (M) SDN BHD 305, Block B, Phileo Damansara II 15, Jalan 16/11, Off Jalan Damansara, 46350 Petaling Jaya. Tel: 03-74910278 Fax: 03-79546428 Email: export@parkgames.com.my Website: www.parkgames.com.my

Park Games Equipment (Malaysia) Sdn Bhd (PGE) established since 1995 is renowned for its world class quality, international safety standard compliance and distinctive designs. We manufacture a full range of Children Playground Equipment, Indoor Softplay, Outdoor Fitness & Gym Stations, Rope & Climbing Structures, SkateParks, PlayCircle Play Centers, Park Furniture & Amenities and Safety Flooring. All ‘Park Games’ products are designed and manufactured in accordance to the International Safety Standard; EN 1176: TUV of Germany, ASTM of USA, MS966 of Malaysia and the Quality Management System of ISO9001:2008. For your quality reference, we are currently exporting our equipments to Australia, Bahrain, Japan, Oman, Singapore, Thailand, Philippines, United Arab Emirates, Saudi Arabia etc.

TEAMWARE SDN BHD Lot PT 355, Jalan TPP 5/1, Taman Perindustrian Puchong, Section 5, 47100 Puchong. Tel: 03-80645888 Fax: 0380645977 Email: garryfhw@yahoo.co.uk Website: www.stguchi.com.my

Total solution for lockset and ironmongeries. Total Solution for Sanitary and Fittings.

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TELEKOM MALAYSIA BERHAD Lot 68 & 69, Jalan Ikan Juara 1, Tingkat 2, Sadong Jaya, 88100 Kota Kinabalu. Tel: 088-299304 Fax: 088-299241 Email: rusnah@tm.com.my Website: www.tm.com.my

Office in a Box is a complete and simple communication solution to bring your ideas to life. Designed to meet the need of SOHO, small as well as large businesses and provides exceptional value with attractive call rates and unlimited access to Business Broadband.

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WAH MIE REALTY SDN BHD P. O. Box 1172, 90713 Sandakan, Sabah. Tel: 089-213809 / 212133 Fax: 089-271 350 Email: shirley@wahmie.com.my Website: www.wahmie.com

Taman Sejati Ujana, Phase 2A, Sandakan (4 Storey Walk-up Apartment).

KINSAGAYA SDN BHD Wisma Kinsabina, Noonsob Baru, KM 7, Jalan Penampang, 88300 Kota Kinabalu. Tel: 088-724111 Fax: 088-711741 Email: ksbnsb@gmail.com Website: www.kinsabina.com

Taman Sinar Indah, Beaufort. Located at Kg. Luagan, Beaufort, this upcoming housing development project comprises of 589 units of double storey terrace houses. Every unit comes with a comfortable built up area of 1,200sf. Nearby facilities include a jogging track, a balai raya, club house and restaurant.

KINSALAJU SDN BHD Wisma Kinsabina, Noonsob Baru, KM 7, Jalan Penampang, 88300 Kota Kinabalu. Tel: 088-724111 Fax: 088-711741 Email: ksbnsb@gmail.com Website: www.kinsabina.com

Taman Luagan Jaya, Beaufort. Another housing project located in Beaufort is Taman Luagan with its low-density housing development which consists of 86 units of single storey terrace with a built up area of 1,000sf, 4 units of double storey detached house (1,262sf) and 6 units of double storey shop office (2,906sf). The various amenities available are basketball court, sepak takraw court, badminton court, playground, car and motorcycle parking.

KINSANOVA SDN BHD Wisma Kinsabina, Noonsob Baru, KM 7, Jalan Penampang, 88300 Kota Kinabalu. Tel: 088-724111 Fax: 088-711741 Email: ksbnsb@gmail.com Website: www.kinsabina.com

Taman Timbok Jaya, Tuaran (10 Storey Apartment with Lift). Situated in Kg. Timbok, district of Tuaran, this residential development boast 1,200 units of 11-Storey Medium cost affordable apartment. The 6-Block apartment units showcase a spacious built-up area of 880sf including Balcony. Timbok Jaya Apartment also features amenities such as club-house, swimming pool, badminton and sepak takraw court, and provides community facilities such as a Surau, 1 Malaysia Family Mart and a taska as well.

HAP SENG PROPERTIES DEVELOPMENT SDN BHD 13-0, 13-1, 13-2, Lorong Plaza Kingfisher 6, Plaza Kingfisher, 88450 Kota Kinabalu. Tel: 088-433711 Fax: 088-438711 Email: srinorfitrianims@hapseng.com.my

Ria Heights Phase 2, Tawau (4 Storey Walk-up Apartment).

BAY WIN SDN BHD / LPPB Suite 6, 8th Floor, Wisma Perindustrian, Jalan Istiadat Likas, 88400 Kota Kinabalu. Tel: 088-259021 / 257021 Fax: 088-256021 Email: bay21too@gmail.com

Apartment, Inanam.

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INNOVATIVE PRECAST BUILDERS SDN BHD Lot 719-5, Jalan Sg. Rasah, Kg. Pandang Jawa, 40200 Shah Alam, Selangor. Tel: 03-35106817 Fax: 03-55107052 Email: ipb2001@gmail.com

IPB Wall System is an engineered patented concrete block system developed for structural and non-structural wall application. The concrete block system are designed to interlock with each other, mortar-less, to form structural and non-structural wall. The concrete block sizes and weight is also designed for manual handling and thus possible for installation without the requirement of crane.

LUTRON GL LIMITED 390 Havelock Road #07-04, King’s Centre, Singapore 169662. Tel: 6220 4666 Mobile: 9278 9972 E-mail: kkphang@lutron.com Website: www.lutron.com/asia

Products: Lighting Control Systems, Smart Blinds Systems, & Dimming Controls.

EUROLITE TECHNOLOGIES PTE LTD 20 Bukit Batok Crescent #03-10, Enterprise Centre, Singapore 658080. Tel: 6896 3131 Mobile: 9618 3312 E-mail: ivan@eurolite.com.sg Website: www.eurolite.com.sg

Product: Sunpipes, & Micro Wind Turbine System.

EURODECK SDN BHD Centrio A-3A-26, Level 3, Block A, No 1, Jalan Pantai Murni, Kuala Lumpur 59200, Malaysia. Tel: 6356 2800 Mobile: 012-387 8040 E-mail: steve@eurodeck.com.my Website: www.eurodeck.com.my

Products: Vertical Green Walls, & Roof Top Greenery Systems.

GREEN KONCEPTS PTE LTD 750C Chai Chee Road, #03-15, Technopark @ Chai Chee, Singapore 469003. Tel: 6245 9332 Mobile: 9180 3126 E-mail: jocelyn.tan@greenkoncepts.com Website: www.greenkoncepts.com/home.html

Products: Chiller Optimization Softwares, Intelligent Building Controls & Datalogging Systems

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POLYMEUR SUN SINGAPORE PTE LTD No. 50 Lorong 21 Geylang, Singapore 388465. Tel: 65 6846 0225 Mobile: +65 8288 1445 E-mail: Nger@polymeur.com Website: www.polymeursun.com/contact-details.html

Products: Photovoltaic Solar Panels & Systems Integration.

BUILDING SYSTEM & DIAGNOSTICS PTE LTD (BSD) No. 18, Boon Lay Way #07-107, Tradehub 21, Singapore 609966. Tel: 6560 0702 Mobile: 9664 0160 E-mail: daiyan.zheng@bsd.com.sg Website: www.bsd.com.sg

Products: Energy & Environmentally Sustainable Green Building Consultancy Services. Energy Optimization & Auditing.

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PROFILE / DESCRIPTION OF EXHIBITS & SERVICES

JABATAN PERUMAHAN NEGARA Kpkt, Aras 34, Bahagian Dasar & Perancangan Strategik, No. 51, Persiaran Perdana, 62100 Putrajaya. Tel: 03-80008000 Fax: 03-88914227 Email: myhome@kpkt.gov.my Website: ehome.kpkt.gov.my

Exhibition to register First Time Homebuyers and provide overall information including criteria and eligibility of MyHome Scheme.

METROLUAS (M) SDN BHD P.O.Box 20661, 88763 Luyang. Tel: 019-8810538 Fax: 088-731879 Email: alvanang65@gmail.com

Maang Apartment 1, Penampang (4 Storey Walk-Up Apartment).

MASAMA-WINQUEST JV SDN BHD Unit 07-12, 7th Floor, Wisma Damai Point, 88300 Kota Kinabalu. Tel: 088-230029 Fax: 088-232029 Email: masamawin@gmail.com

Taman Sawit Phase 4A (5 Storey Walk-Up Apartment) & Phase 3A (1 Storey Terrace).

STRATA KINABALU SDN BHD 3rd Floor, Wisma DS, Block 195, Mile 5, Jalan Bakau, 91000 Tawau. Tel: 019-9794455 Fax: 089-748361 E-mail: strata.kinabalu@gmail.com

To exhibit new housing development project located at Taman Madai Indah, Lormalong, Kunak consisting of 286 housing units from various types such as detached, semi-detached, terrace and bungalow including new shophouses units to accommodate the increasing amount of housing demands from locals and at the same time to promote more on economic sector for Kunak Town and surrounding area.

www.PropertyHunter.com.my

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HYATT REGENCY KINABALU Jalan Datuk Salleh Sulong, 88991 Kota Kinabalu. Tel: 088-221234 Fax: 088-225972 Website: www.kinabalu.regency.hyatt.com Email: kinabalu.regency@hyatt.com

Places to eat in a five-star hotel in Kota Kinabalu which offers international & local cuisine.

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ORGANISER: SABAH HOUSING AND REAL ESTATE DEVELOPERS ASSOCIATION (SHAREDA) Lot 1-3(F), 3rd Floor, Beverly Hills Plaza, Jalan Bundusan, 88300 Kota Kinabalu. Tel: 088-720848 / 722849 Fax: 088-720843 Email: secretariat@shareda.com Website: www.shareda.com

Activities During SHAREDA PROPEX’14. 1. Lucky Draws 2. SHAREDA PROPEX AWARDS 2014 3. SHAREDA Talks

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FIABCI MALAYSIAN CHAPTER Suite E-12-10, Plaza Mont’Kiara, No 2, Jalan Kiara, Mont’Kiara, 50480 Kuala Lumpur. Tel: 03-62035090/5091 Fax: 03- 62034090 Email: fiabcimalaysia@fiabci.com.my Website: www.fiabci.com.my

FIABCI Malaysia is a non-governmental organization which its members are the real estate industry players. Its objective is to foster goodwill and understanding with international organizations and promote progress in developments through better system. Throughout the years, FIABCI Malaysia has been serving as an interaction and communication platform for the real estate industry players and thus, creating business opportunities and promoting a healthy relationship among each other.

PROPERTY HUNTER MAGAZINE Lot 4, 2nd Floor, Block A Heritage Plaza, Jalan Lintas, 88300 Kota Kinabalu. Tel: 088-719787/719987 Fax:088-728387 Email: info@maxxmedia.com.my Website: www.propertyhunter.com.my

Established and distributed its first publication in January 2012, Property Hunter Magazine is East Malaysia’s leading property publication, regarded by industry leaders as the go-to source for property hunting with in-depth property industry news, fresh perspectives, exclusive interviews, development progress, property events, development launches, marketing sentiments, property data, expert contribution from leaders in the industry, secondary market real estate listing and more from Sabah, Malaysia and around the region.

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Eco Business Park 1 (EBP1) is a dynamic new industrial hub, designed to maximize efficiency through sustainable practices. Centrally located in Tebrau, the highly contemporary park offers benefits such as ultra-fast internet connections and the ability to fully customize premises to suit individual needs. Spacious layouts mean no compromises on operations planning. This one-stop industrial solution offers companies a range of professional services, which ensure that setting up operations is a hassle-free experience. EBP1 is protected by a single entry and exit gated and walled system backed by a team of 24-hour security personnel.

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coWorld is led by some of the Malaysian property industry’s most respected experts, the company already has first-class developments across Kuala Lumpur, Penang and Iskandar Malaysia. With an emphasis on healthy living and sustainability, EcoWorld has created Eco Business Park 1, an integrated industrial hub and the majestic eco township EcoBotanic, where lifestyle and business are integrated in a landscaped, natural environment. Iskandar Malaysia was an ideal choice for EcoWorld. Designed with growth and prosperity in mind, this special economic zone enjoys state-of-theart facilities, full infrastructure and a central location. These pages outline various areas of the masterplan and the opportunities they offer to owners, businesses and investors. Artist’s impression only

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The residential phase of EcoWorld’s flagship development, EcoBotanic – the first of the eco townships to be completed – has already sold out. Now EcoBotanic’s commercial areas, EcoBoulevard and EcoNest, are coming online. Located in the sunny city of Nusajaya, they are close to EduCity, another focus of the master plan, and many major destinations, for example, Singapore, Johor Bahru city centre, Legoland and Puteri Harbour are all less than ten minutes’ away, as are Kota Iskandar and Senai International Airport.

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EcoNest is a new style of high-end serviced apartment, offering comfortable yet upmarket apartment, offering comfortable yet upmarket homes. This private, low-density sanctuary has a range of features, including a 50 m lap pool and a well-appointed gym. Everything from the many sports options to the poolside hammocks reflects a privileged, healthy lifestyle. Encircling EcoNest is EcoBoulevard, a high-end commercial hub of three storey retail lots inspired by English colonial architecture. The concept for EcoNest and EcoBoulevard is a dynamic, mixed-use environment where leisure meets culture and business. For further information on these developments, contact EcoWorld, S20118, Indah Walk 3, Jalan Indah 15, Taman Bukit Indah, 81200 Johor Bahru, Johor Darul Takzim, Malaysia. Tel: (+607) 238 2525, Fax: (+607) 232 2525. Or visit the website: www.ecoworld.my

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* EXPECTED COMPLETION BY END OF 2014

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@ Kepayan, Kota Kinabalu

ome home to contemporary living spaces and bask in the unique design of Condominium Kristal. Whether itâ&#x20AC;&#x2122;s enjoying the sunset at the balcony or sipping coffee in the yard, we provide you this in style and in the luxurious comfort of your home. Ideally located at Jalan Kepayan, next to Aeropod with breathtaking views of the South China Sea. With very low density of only 95 units across 3.6 acres of elevated land, this provide residents exclusive privacy and security.

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EXPECTED COMPLETION BY END OF 2014 /// FEATURED PROPERTY SHOWCASE

Nature Living @ Condominium Kristal

ondominium Kristal or Kristal Heights, prides itself in providing optimum comfort and safety, all within your convenience and comfort. Whether it’s taking a stroll with nature, enjoying a weekend of home entertainment or simply relaxing by the pool, Condominium Kristal gives you all. It provides not only classy yet contemporary living, but also a suite of basic needs, catered to your personal lifestyle.

Block A

Decorative Fencing

Block A - Facade

Entrance Fencing

Strategically located on Kepayan Ridge in Kota Kinabalu, Sabah and with neighbours such as Shangri La Estate, Tanjung Aru and a stone’s throw away from the Aeropod project, this development by Ipmuda Properties Sdn Bhd is bound to excite and delight. This foray into the property market by a subsidiary of Ipmuda Bhd, the country’s largest supplier of building materials, marks another feather in the cap for the highly successful Public Listed Company. Built on a generous 3.6 acres, the 95 units (3 blocks) of all 3-bedroom types represent one of the lowest densities today. With this luxurious amount of space, the facilities include a club house with swimming pool and kiddy pool, gym, study room, barbeque area and a mini playground for the little ones. For the more health-conscious, the jungle walk around the development (half km lap) provides a healthy lifestyle, all in the comfort and safety of your very own guarded and gated community. The sky deck on the roof rewards yoga and tai chi enthusiasts with a breathtaking infinity view of the sea and the islands beyond.

Entrance into this residence via the Iconic and distinguished Honeycomb Drive, and the interesting Bridge Walk to the pool area adds to the mesmerising experience of being proud owners of this development.

Breathtaking view of South China Sea Very Low Density (95 units only) 999 years (Master Title) Built-up 1500 sqft - 2001 sqft

As we are expecting to complete by end of 2014, interested buyers have the opportunity to walk in every unsold unit and to view the layout of the unit with its high quality finishing. Currently, there are two blocks available. Majority of the Block A units have been sold and we have just released the bumi lots for nonbumi buyers. For Block B, we have just launched for sale last March 2014 and there are only limited units available.” *Our Show Unit is open for viewing at the site.

From RM 450 per square foot Jungle Walk Honeycomb Drive Centralised Vacuum System Clubhouse: Gym, Games Room, Study Room & Changing Room Bridge Walk Swimming Pool Rooftop Playground Gated & Guarded

*EXPECTED COMPLETION BY END OF 2014 For Enquiries Please Call: Bridge to Block B

Bridge Walk

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Jungle Walk

T: +6088-232168 (Site) T: +603-79543718 (KL)

Honeycomb Drive

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D’ecolake Bungalow - Artist’s Impression

Pedestrian Mall - Artist’s Impression

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Bandar Universiti Seri Iskandar

andar Universiti Seri Iskandar (BUSI) is a university township in Perak that personifies a contemporary business and leisure lifestyle perfectly for young professionals, entrepreneurs and families. The modern architecture of its commercial hub and exclusive residential properties is surrounded by a luxurious landscape of nature that will captivate even the most discerning home seeker or investor. BUSI township is conveniently located 35km southwest of Ipoh, Perak covering a span of 777 acres filled with quality residential homes fronting serene lakes and other natural features that accentuates the restful spaciousness of the area. Juxtaposed against this breathtaking landscape is a host of leisure and entertainment facilities, in-town educational institutes of higher learning and renowned universities. There is already a well-established community of over 2,500 houses and shops within close proximity of notable amenities such as TESCO Hypermarket, a KFC drive-thru and

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an upcoming renowned Malaysian Hypermarket. Other prominent neighbours include Universiti Teknologi Petronas (UTP), Universiti Teknologi Mara (UiTM) and the Perak Tengah Government Administration Centre, which is only a 5-minute drive away. Abustling population of about 60,000 residents and 20,000 university students in Perak Tengah District provide a ready market for businesses to tap into and maximize their growth potential. BUSI is well positioned with direct access to the Ipoh-Lumut Expressway that connects the township to Ipoh and the Lumut / Manjung district. Travelling to and from BUSI is easy and convenient with a bus and taxi transit terminal in the township to provide for all your travel needs. Bandar Universiti Business Center (BUBC5) is the commercial hub of BUSI which stretches across 6 acres of land with 74 units of doublestorey shop offices ranging in size from 3,124 sqft to 4,134 sq ft. Built at a GDV of RM33 million, the units

that include wide frontages offering dual accessibility from the shop front and inside the mall, well-shaded walkways, high visibility to daily traffic and a well-established road network for easy access from multiple directions.

The double-storey semi detached units are 2,478 sqft and priced from RM478,800. Just a stone’s throw from the lakeshore, these equally spectacular houses allows you to indulge your senses in the ultimate lifestyle amidst an idyllic setting.

The residential properties at BUSI is an invitation to an unparalleled lifestyle of Affordability, Greenery and Comfort.

Set within a Gated designed community, D’ecolake are exclusive and gracious lakeside homes that will inspire you to truly pamper yourself with the blissful beauty of life and nature.

D’ecolake is an exclusive low-density residence with 25 units of doublestorey bungalows and 32 units of double-storey Semi-detached units. Discover true peace and tranquility away from the bustle of everyday life in an exclusive Bungalow overlooking the lake with beautiful views of the surroundings. The 2,886 sq ft units are priced from RM588,800 and epitomizes the very essence of a modern contemporary designed home that blends seamlessly into the lush greenery of the surroundings. The landscaped frontage of the bungalows allows you to enjoy the simple pleasures of strolling along the lakeshore and being one with nature.

D’ecolake Semi-D - Artist’s Impression

BUSI also offers quality homes at affordable prices with its singlestorey Ceria and double-storey Lavender terraced residence. With a price tag starting from RM175,800 for Ceria and RM208,800 for Lavender, home buyers will get exceptional value for money and enjoy close proximity to a multitude of facilities that provide for a lifestyle of comfort and convenience. Whether simple or extravagant, BUSI offers a prestigious residential address that is recognized for its quality, affordability and nature charm.

Ceria Single Storey Terrace - Artist’s Impression

Bandar Universiti Business Center - Artist’s Impression

are priced from RM408,800 upwards and comes with wide frontages that open up to a high flow of daily traffic. The extra-high roofing and ceiling creates a natural flow of air and ventilation for a perceptibly relaxing ambiance. Where as the design for the Pedestrian Mall was conceived to maximize visibility and exposure with a modern architectural style that emphasizes on practicality

and accessibility. Spread across 5 acres of land and at a GDV of RM90 million, the phase 1 project is offering units of two- and threestorey retail shop lots measuring between 3,296 sqft and 9,266 sqft which are available in two designs. Units in this exclusive commercial property are priced from RM659,800 upwards. The Pedestrian Mall is equipped with a list of outstanding features

For more information, please contact

605 - 3711 162 / 605 - 2543 812 www.huayang.com.my

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Ridgewood @ Taman Bercham Permai

bathrooms while the Link Bungalow is 2,978 sq ft with a combination of 7+1 bedrooms and 8 bathrooms.

Ridgewood is an exclusive Gated & Guarded residence surrounded by beautifully landscaped surroundings in Taman Bercham Permai, one of the last few Freehold residential development lands in the suburb of Ipoh.

The living spaces exude a feeling of sophisticated elegance that highlight the uncompromising attention to detail that has gone into the construction of this exclusive enclave. A spacious master bedroom with attached bathroom and shower screen are the centrepiece of the interior design as it encapsulates the aspiration of everyone to indulge in the ultimate luxury of personal space.

he current trend in affordable luxury is taken to new heights with Ridgewood that offers a stunning collection of Link Bungalow and Cluster Semi-detached homes ideally suited for larger families.

Conveniently located 12km from the city, Ridgewood is accessible via the North-South Highway Interchange and close to a host of amenities such as Aeon Kinta City Mall, Tesco superstore & Giant hypermarket, Ipoh Garden commercial hub, primary and secondary schools, banks, post office, police station and hospital. The low-density development offers 156 units of Gated & Guarded three-storey Link Bungalow and Cluster Semi-detached homes spanning 21.53 acres of land at a gross development value of more than RM90 million. The houses are impeccably constructed with a contemporary facade and insightful interior design to offer residents the finest in exclusive living and privacy. The Cluster Semi-detached houses range from 2,594 sqft with 5+1 bedrooms and 5

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The Central Landscape Garden is a remarkable feature of Ridgewood that puts it among the finest in outdoor residential design. This approximately 2 acres of lushly landscaped park emphasizes its connectivity with nature and provides a dedicated space for fun and the pursuit of a healthy lifestyle. Recreational facilities include an outdoor gym, jogging track, children’s playground and barbeque pits for relaxing weekends with family and friends. Residents will also have peace of mind when it comes to security with its three-tiered security system that includes residence access cards, CCTV, security guards and perimeter fencing.

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Central Landscaped Garden - Artist’s Impression

Cluster Semi - D - Artist’s Impression

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Link Bungalow - Artist’s Impression

Overview of Ridgewood - Artist’s Impression

For more information, please contact

605 - 5361 124 / 605 - 2543 812 www.huayang.com.my

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hospitals, shopping enclaves and recreational attractions. Among the well-established shopping centres are Danga City Mall, KSL City, AEON Tebrau City and Berjaya Water Front. Weekends with the family can be filled with fun at any of the popular nearby recreational attractions such as Legoland Malaysia, Hello Kitty Town, Angry Birds Theme Park, and PuteriHarbour Indoor Theme Park.

Citywoods

ne of the most notable luxury developments is taking shape to impress with its impeccable architecture design and wellappointed conveniences. Overlooking the Johor Straits with sweeping views of the Singapore skyline is Citywoods, a prestigious residence that seems far removed from the bustle of city life but with all the conveniences of an urban luxury retreat. Citywoods is a two-tower serviced apartment development spanning 2.209 acres of freehold land along Jalan Abdul Samad with a gross development value of RM248 million. Its private elevated position on a hilltop is designed to appeal to clients looking for a contemporary residence that affords a world-class lifestyle. This low-density development has nine units per floor with three lift cars in Tower A, and 13 units per floor and four lift cars in Tower B. Created to blend quality design and functionality, Citywoods offers 417 units with three types of floor

A multi-tier security system which includes round-the-clock security patrols, CCTV surveillance at the main entrance, perimeter fencing, car park podium and corridors; single-card access system, digital door lock with alarms for the main door and video intercom provides the residents with a peace of mind.

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plans to suit discerning individual preferences: Type A (two-bedroom unit) at 764 sqft, Type B (two + one bedroom) at 958 sq ft and Type C (three + one bedroom) at 1,249 sq ft. Prices for these units start from RM412,220 onwards. Absolute exclusivity and privacy is assured with the unique Semi-D design that ensures each unit is a corner unit that has its own private entrance. Another distinctive architectural feature is its imposing grand entrance that warmly welcomes residents and visitors alike. Step inside and the entire development unfolds its many unique features to delight and pamper. A comprehensive range of facilities includes a 30m infinity lap pool, wading pool, pool deck, Jacuzzi, cabana, residents’ entertainment zone (function space, games room, KTV, AV room, kids’ corner), barbeque area, indoor and outdoor gym, and children’s playground. High-speed

Those who can’t resist the fast paced buzz that is city life and its attractions will be impressed with the ultra-convenient location of Citywoods. Thanks to several major highways, residents only need a minute to get to the Permas Bridge, three minutes to get to the Eastern Dispersal Link (EDL) and Coastal Highway, five minutes to reach Johor Bahru City Centre, CIQ and Singapore, 10 minutes to the North-South Highway and 25 minutes to Senai International Airport. The Singapore-Johor Bahru Rapid Transit System (RTS) which will be ready by 2018 is just 10 minutes away.

Actual Show Unit

internet is available throughout the residence to keep residents connected wherever they are. Innovative high-rise buildings today are intelligently constructed to thoroughly capture the harmonious aspects of city and country life. To fulfill this aspiration, four levels of the

residence have built-in sky gardens that provide a sanctuary of greenery to soothe the senses and imbue the sensation of nature into the sleek confines of the building. Citywoods offers residents a privileged lifestyle within easy reach of modern amenities such as schools,

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For more information, please call

607-5591388 www.huayang.com.my

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The Gardens @ Polo Park

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launting all the elements of luxurious and spacious living is The Gardens @ Polo Park in Johor Bahru, one of the most vibrant residential addresses in Malaysia.

The generous spread of floor space can be optimized to create a living space that embraces your unique personal style and appreciation of the finer things in life.

Bearing a gross development value (GDV) of RM64 million, The Garden @ Polo Park is spread over 5 acres of freehold land with striking architectural elements that blend seamlessly into the surrounding environment. Landscaped to perfectly capture the essence of the tropics, the 28 units of semidetached houses and 3 units of bungalows in this low density development fulfill every criteria for a nature-inspired modern lifestyle.

The coveted lifestyle of a premium location with exquisite style and flair is exemplified by a host of amenities for you to indulge in.

The 2 ½-storey semi-detached homes and bungalows are divided into: Semi-Detached A1: 4,587 sq ft Semi-Detached A2: 5,813 sq ft Semi-Detached A3: 4,497 sq ft Bungalow B1: 5,500 sq ft Bungalow B2: 5,667 sq ft

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All bedrooms come with an ensuite and are lavishly furnished with thoughtful touches to create an oasis of peace and tranquility. The master bedroom with its separate master bathroom and shower area is a definitive feature that stands out and impresses with its attention to detail and opulence. Selected units have the added advantage of an open balcony that takes full advantage of the glorious vistas of the riverside. The Gardens @ Polo Park aspires to bring you closer to nature by carving out a 1,208 sq m swatch of lush

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Stay connected with the world outside your private enclave with two year’s worth of UniFi connectivity that is offered free of charge. And for the more basic necessities of life, there is a multitude of facilities within easy reach such as AEON Permas Jaya, Danga City Mall, KSL City Mall, Berjaya Water Front, primary & secondary schools, colleges and universities, international schools and hospitals. Adding to these great everyday conveniences are two of the state’s biggest attractions, Legoland Malaysia and Puteri Harbour, which are a mere 20 minutes away from The Gardens @ Polo Park.

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greenery and manicured gardens to enhance the bucolic setting of the residence. The iconic Centre Garden takes centre stage with a children’s playground, outdoor gym with workout equipment, granolithic finishing walkway and wooden benches.

Peace of mind and safety are ensured in this premium gated and guarded community with 24-hour security services, frequent patrolling, and CCTV surveillance. Automatic gates, alarm systems, walls with high fencing and smart access cards increase the safety aspects within the development.

New communication networks linking Johor Bahru to various gateway facilities is developing rapidly to benefit upcoming developments in the area. The Gardens @ Polo Park is at the center of this connectivity hub and enjoys unparalleled access to Johor Bahru city and the Custom

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& Immigration Quarantine (CIQ) centre (5 minutes), EDL and Coastal Highway (3 minutes) as well as the North-South Highway (10 minutes). Additionally the Senai International Airport is just a 25-minute drive away. The much awaited Johor Bahru – Singapore Rapid Transit System (RTS) as well as the SingaporeMalaysia High Speed Rail (HSR) is set to transform The Garden @ Polo Park into one of the most desired residential properties to live, work and play in Johor.

For more information, please call

607-5591388 www.huayang.com.my

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/// East Malaysia Property News

SABAH

PROPERTY NEWS

Keep track of the latest property and real estate news plus reviews in the property market in Sabah

Property Hunter Presents Donation of RM 22,273 to Habitat for Humanity materials for the construction of these houses. The other part of their work is to engage volunteers, locally and internationally, to do the actual physical work. Each house costs an average of RM30,000 to build and depending on the availability of volunteers, can take up to three to six months to complete. Not all houses are built from the ground up so those that are still in relatively good condition but need a bit of renovation work would be given a quick fix.

The 2014 Property Hunter Expo series held in Kota Kinabau (March), Sandakan (April) and Tawau (May) has successfully raised a total of RM22,273.65 to be donated to a charitable organisation. The organiser MaxxMedia (S) Sdn Bhd had pledged to donate RM50 for every unit sold during its annual series of expos in Sabah for Habitat

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for Humanity, a non-governmental organisation that helps eliminate poverty by building houses for the less fortunate. Members of the public who visited the expos were also encouraged to donate to top up the amount pledged by the organiser. This is the first year that Property Hunter has included a CSR project to

coincide with its expo series and the public response has been very encouraging. It hopes to continue its partnership with Habitat for Humanity to bring much needed assistance to those who are in financial dire straits and unable to afford a roof over their heads. Habitat for Humanity relies on cash donations to help purchase building

A simple cheque presentation ceremony was held on 20 June, 2014 at the MaxxMedia premises to officially hand over the donation collected during the PH Expos to Habitat for Humanity. For more information on Habitat for Humanity and how you can make a difference, log on to http://www.hfhmalaysia.org/ or the Kota Kinabalu blog http:// habitat4humanitykotakinabalu. blogspot.com/ for the latest news on their activites.

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/// East Malaysia Property News

Sabah Confident of Same Royalty Hike Consideration these companies are merely playing second or third fiddle to companies from other Malaysian states and international companies undertaking multi-billion oil and gas related projects in Sabah,” he said. According to Donald, there has always been a general negative perception towards Petronas in Sabah and some are even questioning the validity of the Petroleum Development Act. “I think that it is high time for Petronas to really pay attention to these dissatisfactions and give Sabah and Sabahans a better deal than what we are receiving at present. So, of course, as a Sabahan, I do think that the PM should also extend the same assurance to consider a higher oil and gas royalty for Sabah, as he did for Sarawak. Sabah MCA Liaison Committee advisor Datuk Paul Kong Sing Chu said he welcomed the positive good news for Sarawakians. The recent completed, Sabah Oil and Gas Terminal at Kimanis

Parti Bersatu Sabah secretary general Datuk Johnny Mositun said he was elated with Prime Minister Datuk Seri Najib Tun Razak’s willingness to give utmost consideration to a request from the Sarawak State Government for an increase in oil royalties for the state. “It is good that our Prime Minister has not rejected outright Sarawak’s request for an increase in oil royalties, unlike all past Prime Ministers, who simply refused to even consider the matter,” he said, whenasked to comment on Najib’s assurance in response to a request by Sarawak Chief Minister Tan Sri Datuk Amar Adenan Satem for an increase in royalty and for more funds from the federal government for the development of the state. Mositun said there is every reason to believe that Sabah would get the same consideration as Sarawak in the context of increased oil royalties. “Of course, the matter has not been brought up officially through the state assembly, so I am not in a position to say how Sabah will broach the issue with Kuala Lumpur. After all, there are other avenues which the state government can use to resolve the matter with Kuala Lumpur. It is best left to the Chief

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Minister and the cabinet to decide on what approach Sabah should take,” he said. Mositun added it was an open secret that Sabahans had long been demanding for an increase in oil royalties from Petronas, and the Federal Government was aware of these demands for some time now. “But as the PM has said, the matter must be carefully studied before it can be acted upon. Petroleum is a strategic national asset, and a major contributor to the national treasury. We should hope for a win-win outcome to the issue of increased oil royalties for Sabah,” he said. Mositun added Sabahans could hope for some good news on the matter when the Prime Minister visits Sabah in the middle of this month. “At least I think so. Surely Datuk Seri Najib would not want to be seen as treating Sabah differently from Sarawak on this issue. And if he says that Sarawak Chief Minister Adenan Satem had ‘whispered’ it to his ears, who is to say our own Chief Minister had not already done the same without any publicity,” Mositun quipped.

His counterpart from UPKO, Datuk Donald Mojuntin, said that if the federal government is willing to consider a higher oil and gas royalty for Sarawak, then the same consideration must be given to Sabah.

“As a naturalized Sabahan who was born in Sarawak, I urge the Prime Minister to consider rewarding Sabah with the same increment because the two East Malaysian states are the safe deposits for the Barisan Nasional government,” Kong said.

Short of passing a motion in the State Assembly, most of the political parties, whether government or the opposition, in Sabah have consistently and persistently spoken out fervently for the same increase of oil and gas royalty as that requested by Sarawak.

He added that the Sabah BN state government under Chief Minister Datuk Seri Musa Aman is due for an increase as it will mean more funds for the state to carry out programmes and projects which will benefit the people of Sabah greatly.

“I believe that Sabah should also be requesting for a representative to be on the Petronas Board of Directors to ensure that the State’s interest is protected. We should also be asking why Petronas have never initiated any Vendor Development Program (VDPs) in Sabah.

The two East Malaysian states are urgently in need of the extra funds to help improve their basic infrastructure such as roads, water and electricity supply, especially in the rural areas, Kong, who is also a MCA presidential council member and the MCA Penampang division chairman, stressed.

There are more than 40 of such VDPs in the whole country, including in Sarawak. Sabah has not even one. For a state that is set to become the biggest oil and gas producer in the country, this is really a sad and disappointing situation. “I believe that more can be done by Petronas to build up Sabah’s oil and gas industry players. At present,

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/// East Malaysia Property News

Property Hunter shortlisted in two categories at The Spark Awards 2014

Property Hunter has achieved another milestone in its career by being shortlisted as a finalist in two categories of The Spark Awards for Media Excellence 2014, a brand new award introduced by Marketing magazine to celebrate best practices in media solutions, products and services. The awards is the premier platform for media owners in every vertical to showcase their innovation, effectiveness, and value proposition to advertisers, agencies and clients. The award is open to any media owner with an office in Southeast Asia (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) and who has worked for markets that include any country in this region. Out of the 26 contestable categories, Property Hunter was shortlisted as one of the finalists in the Best Subscription Strategy and Best Content Team categories. At the heart of any successful media company today is a solid subscription strategy. The Best

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Subscription Strategy award recognises a subscription strategy that delivers outstanding results which can either be a single campaign or part of an overall strategy that can extend to online, digital and mobile executions.The other finalists include Astro, Star Publications (M) and Dealguru Holdings. The Best Content Team award recognises the outstanding content team within a media owner operation. It assesses how the content team devises solutions for clients and the team’s ability to innovate and create powerful content based on audience and client needs. It also clearly demonstrates the content team’s excellent relationshipwith clients and agencies and its professional outlook. Property Hunter will be up against Mongoose Publishing, RAPPLER, simpleshow Asia and SUMMIT Publishing Company for this award. Elson Kho, Director of Maxx Media Sdn Bhd that publishes Property Hunter expressed his feelings about the nomination,” We are certainly

very proud to be nominated. That alone is a great recognition of the years of effort we have put in to build the magazine. We feel very honoured to be listed alongside some of the most established media brands in the region. The nomination has certainly encouraged us to continue to push for innovation and excellence in all aspects of our work, and I share this joy and excitement with our hardworking team and supportive business associates without whom we will not be what we are today.” Heading some of the most renowned media agencies across Southeast Asia is a panel of judges who bring with them decades of experience in the media planning and buying business. Their expertise will be tapped upon as they look for some of the most outstanding media owners in the region, whom will be assessed based on their compelling content, innovative solutions, products effectiveness and standout team performances.

August, 2014 where representatives from some of South East Asia’s most prominent businesses will be gathered to compete for bragging rights and validation of their offerings and achievements over the past year.

Out of the 26 contestable categories, Property Hunter was shortlisted as one of the finalists in the Best Subscription Strategy and Best Content Team categories.

Winners will be revealed at the Spark Awards gala dinner on 28

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/// East Malaysia Property News

Malaysia’s Residential Property Sector Enters Cooling Phase

Hong Kong’s R&F Properties to Unveil Johor Project

Set to be a landmark property development in Tanjung Puteri, Johor, phase one of R&F Princess Cove will see the construction of about 15 blocks of luxury apartments by Hong Kong-based R&F Properties Co Ltd. The residential property segment, a subsector of the overall property market, appears to have entered “a cooling phase” in the first two quarters with sales expected to stay “moderate” for the coming third quarter, according to the Malaysian Institute of Economic Research (MIER). “The macro-prudential measures implemented by Bank Negara to cool down the property market since 2010 look likely to have played a role here,” MIER said. MIER based its conclusion after doing a residential property survey designed to be an indicator of economic activity in the property sector. Its Residential Property Index fell for the second quarter to 109.9 points, slipping 1.3 points from the first quarter, and 28.3 points from a year ago. The survey also showed that total unsold new residential properties have accumulated faster than sales in recent months. More than a quarter of house builders reported bigger stocks in hand, which is at a three-year high. The MIER report said that given the built-up in total unsold new units, those surveyed have decided to keep creeping prices at bay by maintaining them at current levels.

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But in the months ahead, prices “are likely to escalate again” more than half of those surveyed said while the remainder said they will “neither raise nor slash theirs (their prices) for now.” Fewer of them increased prices in the second quarter compared with the first and some even offered price cuts, the survey found. Moving forward, about half of those surveyed expect sales for the current third quarter to remain the same while more than a third of those surveyed foresee higher sales as “home buyers bought ahead of the Goods and Services Tax” which will come into effect next April. Property prices are envisaged to rise due to higher input costs after that. Double-storey houses continued to be the most popular while none of those surveyed seem to have sold any bungalows during this same period. The survey concluded that affordability issues may continue to haunt the market if property prices outpaced income growth and interest rates edged up. “Housing demand may eventually lose ground,” MIER said.

R&F Properties had bought the 116 acres of land at RM4.5 billion in a deal involving the Johor royalty late last year. On a per-sq-ft basis, the prime land values at more than RM890, making it the second most highly priced land in the city, trailing closely behind another China-based firm that had bought 37 acres of land in Danga Bay for RM991 per sq ft. The whole R&F Princess Cove project would unveil an enormous integrated development in line with the current trend in Johor that has attracted streams of Chinese developers into the new growth area adjacent to Singapore.

Part of phase one ready to be booked in July would comprise 400 units of apartments built on four blocks of 30 – 35 storeys. The company plans to develop 15 blocks of apartments in phase one. Recent launches in Nusajaya, Medini, Danga Bay and Johor Baru showed that prices were in the range of RM600 to RM1,000 per sq ft, with prime units fetching RM1,500 per sq ft. R&F Properties, listed on the Hong Kong stock exchange, has a series of iconic developments on its portfolio, mostly in China, and Malaysia would be its first foreign project. The company, with over 20 years of experience in property development, has been involved in the building of classical bungalows, grade-A office towers and five-star hotels.

Investors are betting on the economic development spurred by the establishment of Iskandar Malaysia and the upcoming rapid transit system between Johor Baru and Singapore. Checks with the company revealed that the launching of phase 1 is slated for mid-July, while the sales gallery would be ready for a big-splash opening this Saturday.

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/// Exclusive Interview

SR. CHUA SOON PING Going Against The Grain

/// EXCLUSIVE INTERVIEW

hua Soon Ping has been challenging the rules of convention for most of his student and adult life. It wasn’t the rebellious compulsion to break any rule but an instinctive desire to see how far he can bend the rules to produce a more innovative outcome. While going through secondary school and then studying quantity surveying at Portsmouth University in England, Chua was always curious to find out more. It wasn’t enough to just know the right answers, he also wanted to know if there was more than ONE right answer. “When I was studying quantity surveying, I would always apply that kind of thinking – knowingly or unknowingly,” he says. “I don’t just follow the textbook but wanted to study further. You don’t get extra marks for knowing more than what is required but there was always that curiosity.” Chua was born in Tawau into a very artistically inclined family. All his siblings have been active in the art field in some form but Chua decided to forego his inherited penchant for art and decided to pursue quantity surveying as his university major. After graduation, he returned to Malaysia and worked for a large quantity surveying firm with offices throughout Asia. This experience gave Chua a broader perspective of his work and its role in the property development industry. The recession that hit Asia in the late 1990s saw the property market dip and slump, and while it struggled to keep afloat, Chua did something quite out of the ordinary. He left for London to do a master’s degree in – property development. He explained that after years of working for property developers and studying the industry, he wanted to explore other areas of the industry besides quantity surveying. Of particular interest to him was the green building concept. “When I was young, I would go back to the farm and live in a wooden house with a high attap

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roof. When it rained, you had to collect the rainwater to reuse for household chores. And even without a fan or air-con, you can still sleep comfortably because there was a nice flow of air throughout the house,” he reminisced. This vivid childhood memory would form the basis of his passion for green technology. Chua was always drawn to innovation whether it is a business or a pursuit. “It’s just like cooking – you use the same recipe but add something different to give it a different flavour. Sometimes in life, you cannot always listen to people. I know this is the right way and I am passionate about it although it is very challenging.” Despite his high level of selfconfidence, his first step into the property development industry was not devoid of some fear and trepidation. “Making the transition from quantity surveyor to developer was scary. Quantity surveying is just a small part of the building profession with so many other aspects to take into account like working with architects, suppliers, contractors, and acquisition of property,” he explains. And the scariest part was learning from my mistakes which can be a costly exercise in terms of time and money. But you have to take the time to redo or amend the mistakes.” Chua Soon Ping is no stranger to pitfalls but his tenacity to keep pursuing the things he believes in has created a platform for others to hopefully emulate in the future. One of his first encounters with resistance to his beliefs was when he opened a restaurant serving healthy food in 2001. He had gone through a lifestyle change because of dietary issues that forced him to adopt a healthier diet. He wanted to share the benefits of eating healthy with others but in 2001, the concept was still too young for Sabah. Other restaurants were luring his trained

staff away and escalating rental cost closed the restaurant down after five years. It was a bitter experience that did not dampen Chua’s determination to advocate for a better quality of life, if not through food then by living in a healthier environment. Green technology has been around for quite some time but has not seeped deep into mainstream property development in Sabah. Putting on the hat of property developer is an avenue for Chua to prove a point that green technology, if used and applied properly, can benefit all levels of society. According to Chua, there is a misconception that a green building is an expensive building. In some ways, it may cost more to build because of its various energy saving features but this can be offset with lower maintenance cost in the long run. It creates a healthier lifestyle that is kinder to the environment but as with this first venture in the healthy food restaurant business, this concept will have to go through its own gestation period and acceptance by the general public. Chua has two luxury development projects in the works, one nearing completion and another recently launched, where he has taken great pains to include as many green products and innovations into the building construction. Rain harvesting, heat recycling, double-glazed windows and building orientation to maximise sunlight and air flow are just a few of the features. The overall objective is to reduce power consumption and release of harmful emissions into the air. The luxury component of a building can be distinguished from the property’s prime location, architecture, interior décor and finishing. But houses of lesser construction value and scale can also have the same green features if applied correctly. On the issue that a building has to be certified green to authenticate its function as an environmentally friendly building is not a huge concern for Chua.

“For a green building, you have to go through a tedious application process to be certified. There are so many do’s and don’ts and after spending huge amounts of money to install a water tank for rain harvesting, for example, you only get one point. A big tank can cost up to a few hundred thousand ringgit,” he stresses. He is more for the practical approach of applying the principals of green technology and making it work rather than to be certified. And he plans to do just that with the affordable homes that he will be developing in the near future. “The reason I put in all these added green features, even as a new developer, is not because I am clever,” says Chua. I want to differentiate myself from the industry players and to take a professional approach in building houses that contribute to better living for the masses. A house is not just a building but a home and we have to build it in such a way.” He believes in being passionate about your goals and insists that you don’t need to be young or to always have fresh ideas to succeed. Being innovative is sometimes more important as you can take what has been created, improve on it and make it better.

When I was studying quantity surveying, I would always apply that kind of thinking – knowingly or unknowingly,” he says. “I don’t just follow the textbook but wanted to study further. You don’t get extra marks for knowing more than what is required but there was always that curiosity.

Photo by Louis Pang Studio

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/// East Malaysia Property News

You’re Never Too Young to Invest, Say the Experts “In a low-interest rate environment, savings accounts grow slower than inflation which means you are losing money instead of growing it,” he said, noting that investing successfully had little to do with good luck but more with following clear guidelines. “We believe that an informed investor is a protected investor. “According to the World Bank, Malaysia is ranked fourth in terms of investor protection.” He said investors should understand their rights and responsibilities as well as the products and profile of the companies they choose to invest in. In view of this, the SC recently launched InvestSmart — a comprehensive investment literacy campaign to enable more confident and informed retail participation in the capital market. Khairul said the campaign was aimed at reaching out to the investment-ready population and to shift awareness of saving to investing.

Only 10 per cent of total retail investors on the stock market are aged 18 to 30. This reflects the apprehension among young adults regarding investing, according to Bursa Malaysia. This is despite the existence of 237 capital market intermediary firms supported by 9,531 licensed representatives as reported last year. It is a shame as investing would help young adults grow their money. A lack of general financial literacy and the complexity of investment products make for a generation indifferent towards investing. Fatin Syafira Ahmad Zulkifli, 24, believes working young adults, especially those who have just started their first full-time jobs, think that investing is only for those who are financially independent. “They also feel they do not earn enough to put away some money every month for investments. “Many fresh graduates are also burdened with student loan debts. “I started investing only after six months into my first job and I chose to invest in Amanah Saham Bumiputera because I was told that it is the least risky option,” the business developer admitted, adding that she would only start considering other types of investments, such as properties, when she is more financially stable. However Ahmad Farid Sainuri, 25, who delved into investment when he was 18, saw the

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significance of “compounding”, which is a concept of generating earnings from previous earnings. “I learned earlier that the longer I let my investment compound, the bigger the profit margin I will enjoy later. “Also, by being in the market earlier than most of my peers, I found that I could benefit from market price fluctuations. “Warren Buffet did not start investing in stocks when he was 11 for nothing.” Ahmad Farid, who is also a part-time unit trust consultant, said financial standing should not influence whether or not one should invest, as long as one had a firm target on what he or she wanted to achieve. Securities Commission deputy general manager Khairul Ridzwan Abdul Kuddus said it was important to “pay yourself first” before paying bills and other loans. “Pay yourself means putting aside an amount of money for your future,” he said, adding that young people should not rely on Employees Provident Fund accounts for their retirement as even the social security institution had come out to say that EPF savings may not take the account holders far into their retirement age.

“It is also to promote an inquisitive attitude among investors who may be lured by promises of high return of investment,” he said, adding that people who were easily persuaded may fall prey to illegal schemes. SC chairman Datuk Ranjit Ajit Singh said they wanted to start a conversation about the capital market with young adults. “We realise that young potential investors prefer bite-sized information on-the-go. “This is why we are raising our investor empowerment efforts to a whole new level,” Ranjit said, adding that by leveraging on digital and social media, InvestSmart would provide reliable and independent information and investment tools to the public. The campaign has introduced an InvestSmart website, a Facebook page, a starter kit and a mobile application as well as events such as Investor Weekend, seminars and training programmes. The mobile application by the same name is developed to share meaningful, relevant and timely information on licensed capital market products and intermediaries whenever needed.

Khairul advised the younger generation to start investing as early as possible as it was the best tool against inflation and it might help maintain their current lifestyle in the long run.

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/// East Malaysia Property News

Jade Residence Dual Key Show Unit Ready for Viewing What is good or special about dual key units? Convenience – For families with elderly parents or senior members who need to be taken care of, the dual key allows them to keep a close watch on them. Privacy – The two adjoining apartments, each equipped with its own bath and kitchen for basic living needs, provides close proximity while at the same time maintain privacy since they are ultimately separate units – no shared baths, kitchen and living room. Rental potential – The dual key unit is registered as a single apartment under one strata title, so to the authorities, the studio apartment is regarded as a room and not a unit by itself. This means that the owner can sublet the whole studio apartment as rental room. Such units may appeal to single or couple tenants since there is no need to share a common living room, kitchen and bath with the owner and vice-versa. Through leasing, you can earn passive income which you can use to offset a portion of your monthly mortgage or the maintenance fee. While shoebox apartments are slowly becoming a mainstay in the local condominium scene, there is another newcomer that may gradually force its way into becoming another common feature in future condo projects. This newcomer being referred to is the dual key concept! Despite not gaining as much media coverage as its shoebox counterpart, its frequent appearance in new condominium launches seems to suggest its slowly and steadily gaining acceptance and popularity amongst developers. Now Jade Residence is ready to bring in the viral, dual key concept condominium. There are 2 types of dual key units – Type B1 and Type A5. Type B1 has sold out and only limited units are available for Type A5. What are dual key units? Dual key units are units that have a studio apartment unit attached to an otherwise standard condominium unit. The unique characteristic of a dual key unit is a shared foyer (the common area that is accessed through the main entrance). There are two doors - one leading to the studio apartment and one lead to the adjoining unit and two sets of keys, hence the term ‘dual key’. What is the purpose of dual key units? When dual key units were first launched in the market, they were squarely targeted at buyers who want to live in close proximity to their

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parents (or relatives) while maintaining privacy. The under one-roof and separate doors design facilitates this. The studio apartment is also self-sufficient in terms of having its own bathroom and kitchen, essentially an en-suite room by itself. Three Generation under One Roof With middle-aged buyers as the ultimate home buyers, with their higher income and quality of life, they will be looking for a more convenient living arrangement but three generations come with different ages, job attributes, social status and living habits. Making three generations live under one roof in harmonious coexistence has become one of their biggest concerns. Our unique three generation concept floor plan is a combo modular design concept, with full respect for different family members’ living habits. Jade Residence duel key offer sophisticated suites of two complete housing separated by just a wall. The two adjoining apartments, each equipped with its own bath and kitchen for basic living needs, provide close proximity while at the same time maintain privacy since they are ultimately separate apartments - no shared baths, kitchen and living room, and yet, families are still able to keep a close watch on their elderly parents who are just next to them. Dual master bedroom design also demonstrates a mutual respect between the two generations.

Flexibility – The owner has lots of flexibility when it comes to dual key units. They can live with their parents or rent out the studio apartment. Or they can choose to break down the wall to expand the unit when the family grows. Versatile configuration – With a 4 bedroom dual key unit for instance, there can be several ways of occupation: •

Family of 3 + Parents

•

Couple + Parents

•

Couple + Grown Child

•

Family of 3 + Tenant

•

Couple + Tenant

Please call +6088 257 705 for appointment to view show unit.

Now Jade Residence is ready to bring in the viral, dual key concept condominium. There are 2 types of dual key units – Type B1 and Type A5. Type B1 has sold out and only limited units are available for Type A5.

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/// East Malaysia Property News

Knight Frank Spread Wings Over in Sabah exciting time for Knight Frank Malaysia. This opportunity allows us to extend our boundaries into new frontiers and take our property services to new levels.” We’re enthused and honoured to bring international standards of the property industry to Sabah. We believe the state will flourish from our expertise in key service lines namely Commercial Agency, Investment Sales, Retail Consultancy & Leasing, Project Marketing, Residential Agency – Sales & Leasing, Residential & Commercial Property and Project Management, Valuation and Research and Consultancy.” Knight Frank Sabah will be helmed by Ginn Lai as Associate Director and Stephenie Wong as Resident Branch Manager. Lai has been working in the real estate industry for 16 years with global experience in project marketing, property and facilities management, commercial and retail agency, hospitality, and development feasibility analyses.

Ginn Lai, Associate Director of Knight Frank, Sabah Branch

Knight Frank has launched its new office in Kota Kinabalu, Sabah and enjoys the distinction of being the first independent global property consultancy to enter the East Malaysian real estate market. Mr Sarkunan Subramaniam, Managing Director, Knight Frank Malaysia, says, “This is indeed an

Born and raised in Sabah, Stephenie has had over 6 years of experience in the property sector and brings with her a solid background in valuations and estate management. Stephenie has managed various forms of valuations including hotels, resorts, golf clubs, islands, arcade malls, offices and specialises in land development valuation in Sabah. Dato’ Peter Yong who is on the board of many of Sabah’s prominent companies and institutions, and has vest experience in the local real estate

sector, will serve as advisor at the Knight Frank Sabah office. Sabah is quickly gaining regional interest from major real estate developers and investors. Performance across tourism, agriculture and aquaculture, and oil and gas sectors have been a catalyst for urban and rural property development, both for domestic demand and the increasing number of expatriate relocations in Sabah. Mr Eric Ooi, Executive Chairman of Knight Frank Malaysia adds, “With the maturation of the property market there is much potential to be tapped in new territories. This is a great opportunity for Knight Frank Malaysia to bring professional services of international standards to developers, tenants, owners and vendors in the Sabah region.” Knight Frank LLP is the leading independent global property consultancy headquartered in London. Together with its New York-based global partner, Newmark Grubb Knight Frank, they operate from 335 offices, in 52 countries, across six continents. Headquartered in Kuala Lumpur, Knight Frank Malaysia has offices in Penang, Johor and Sabah. The Company is registered with Board of Valuers, Appraisers and Estate Agents and is licenced to undertake property, valuations/consultancy, estate agency and property management. The Company is also on the panel of all leading banks and financial institutions.

Land Prices in Kota Kinabalu Skyrocket With 30,000 Sqft Sold for RM20 Million A 30,000 sqft piece of land next to the Kota Kinabalu Chinese Chamber of Commerce building has reportedly been sold for an astronomical figure of RM20million. This would account for a land cost of nearly RM700 per square feet, an almost unheard of figure and definitely the highest sale record achieved in Kota Kinabalu so far. According to sources, a well-known businessman is planning to build a 20-floor serviced apartment or SOHO (Small Office Home Office). The land in question is currently being used as an open-air private car park. It originally belonged to a West Malaysian company that has recently agreed to on a deal to sell the land to a Chinese Datuk who plans to sell the service apartments or SOHO at RM1,000 per sq ft. Some people are already aware of this and are planning to invest in the project once it is launched. The businessman reckons that the service apartment and SOHO will receive good response especially as it will be the first SOHO in KK CBD. Currently, there are a few SOHO projects under construction.

Subject land in Kampung Air, Kota Kinabalu

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The Chinese Datuk businessman is well-known for his charity work and support of several education and cultural activities.

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/// East Malaysia Property News

Inaugural Sabah Property Report released by Knight Frank

From left; Knight Frank Malaysia’s managing director Sarkunan Subramaniam, Sabah’s Resident Branch Manager Stephanie Wong and Associate Director Ginn Lai

Knight Frank Malaysia released it’s first-ever Sabah Property Market Report at its new Sabah branch office in KK Times Square on 7 August, 2014. The report reviews the high-end residential, office and retail markets in Kota Kinabalu in 2014 and gives an outlook for the second half of 2014. According to the report, the Kota Kinabalu property market has remained buoyant and stable during the first half of 2014 despite recent negative factors primarily the tightening of mortgage lending, tariff hikes on electricity and fuel, and the impending Goods and Services Tax (GST) in 2015. The city’s southern corridor would be significantly transformed with the completion of major projects this year including Imago shopping mall, The Loft apartments, OCEANUS waterfront mall, Pelagos Suites, Riverson and Gleneagles private hospital – bringing about a positive impact on the modernisation of Kota Kinabalu. Mr Ginn Lai, Associate Director of Knight Frank Malaysia (Sabah Branch) says that they expect the second half of this year and early 2015 to pick up in terms of new major development launches

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and announcements, particularly in the new development precincts of the old Jesselton port area and TanjungAru Eco Development. “We are also seeing pressure as a result of land scarcity and rising land costs which will push future landed property supply to be contained outside of 15km from the city centre,” he adds. The outlook for the second half of 2014 will see a handful of new residential projects officially launching. Given a lack of new inventory this year, we expect take up rates to be solid albeit subject to affordability and the availability of end financing to buyers.” There has been no new supply of new office space over the 2012 and 2013 period and the same is expected this year. Pent up demand for city office space will be met in 2015 with the completion of several notable projects namely Menara Hap Seng, Aeropod, Sutera Avenue and Riverson Suites, totalling approximately 814,613 sqft – an average of 3% new supply per annum.

“Based on current market values, yields are achieving an average of 5% per annum. The development of purpose built and signature offices continues to uptrend and replace traditional shoplots at Kota Kinabalu’s commercial sector mature and modernises.” The Sabah Property Report also mentioned the unprecedented supply of retail malls that are coming to completion over the next three years, adding another 2.65 million sqft (5 malls) of new supply to the existing 4.6 million sqft (17 malls) and further cementing Kota Kinabalu’s position as Borneo’s getaway city. According to Lai, tenant take up rate could be slow, but the sector is expected to perform in the mid- to long-term.

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/// East Malaysia Property News

Senior Lifestyle Given a Boost With Exclusive Retirement Resort “Our project will not only provide social support, but also have in place programs to encourage interaction and activity participation. Residents have the freedom of being as active or inactive as they want to be. “Cleaning and maintenance service is optional to allow for dispensing with the need for domestic helpers while the unique care and on-line medical record keeping systems allow residents the peace of mind that care is readily accessible if required,” he added.

SARAWAK

Meanwhile, company chairman John Chin observed that thanks to the miracle of modern medicine, most people now live a relatively long life and are experiencing that savings alone is not enough to sustain them for the rest of their lives.

PROPERTY NEWS

Keep track of the latest property and real estate news plus reviews in the property market in Sarawak How to Distinguish Between Good and Bad Property Agents hiccups and you need their help, they are nowhere to be found. Some agents have obviously mastered the skills of playing a vanishing act. They disappear after pocketing their commission, leaving you alone to deal with difficult tenants, late payments, neighbors’ complaints, etc. After selling a property exclusively by a property agent, another agent would probably come and say, “What? Only RMXXX,XXX? I could have easily sold thirty to fifty thousand higher for you!”

someone whom you can truly trust is beyond money.

There are many agents and owners in this market who will do anything to sell properties at the top price.

But how can you tell the good from the bad ones?

Be aware that these transactions almost always come with special conditions — that is worth taking the risk. But even without any condition, to bag that extra tens of thousands from another offer. The peace of mind from engaging the service of

We all want to find a good property agent to represent us when we are renting, leasing, buying or selling our properties.

Say ‘NO’ to a bad agent or illegal agent Bad property agents share similar attributes. Like bad boyfriends, they are a big disappointment. It is not uncommon to see them glorifying their past performance or exaggerating their experience in the industry. But when there are

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Don’t pick an agent out of convenience. Don’t use anyone just because the person is a relative or an acquaintance. Don’t use anyone without strong recommendations from a reliable source.

unreasonable offer just to close the deal; • Your agent always refers you to contact someone else when there is any undesirable task; or • Your agent presses you to do something that you don’t feel comfortable with. Qualities of good agents Always look out for the following qualities in property agents: 1. Passion: Possess a burning fire of enthusiasm even after many years in the industry.

Forget about agents who don’t put your interests first. It’s time you looked for a new one when:

2. Experience/knowledge: Know current market trends, project details, market prices, etc.

• Your agent knows no better than you about most of your property questions;

3. Negotiation skills: Act calmly and patiently. Target win-win for both parties.

• Your agent keeps marketing to you specific projects that don’t meet your requirements;

4. Honesty: Never oversell. Tell both pros and cons and let you make your own decision.

• Your agent asks you to compromise on an

5. Trustworthiness: Build trust by keeping their word.

Deliver what they promise. 6. Reputation: It is easy to speak highly of themselves, but it is far better if former clients speak highly of them. A long-term relationship As an investor, it worth spending the time to find an agent that you can trust, someone that you can work with in the long run. When you are building your property portfolio, your agent can be your assistant or advisor to secure the good deals. When you need someone to manag e your properties, your agent is your indispensable partner to ensure that things run smoothly. Good property agents understand the fact that building a long-term relationship is far more valuable than getting the highest commission from a single deal. It is also the close partnership with clients that helps them ride though all the ups and downs in a property cycle.

Malaysia’s ever-aging population and increasing numbers give rise to one question: How will retirees manage to live on their own when the time comes?

“Unlike the West, not only do we have to consider the taboo of a retirement home, ours is not a welfare system as the case with Australia or New Zealand.

Such was the notion that gave way to Eden on the Park, a pilot integrated retirement resort that comes with luxury apartments, villas and agedcare facilities.

Sustainability of such facilities is a question.

Eden-on-the-Park is the first Integrated Senior Lifestyle and Care Residence Resort facility in Malaysia. It is the leading Integrated Senior Lifestyle brand developed on the 3R concept – Rest, Recreation and Rejuvenation and built around the 5S principles of Security, Safety, Support, Service and Sustainability. The Integrated Senior Lifestyle and Care Residence Resort are based on proven models in Australian and New Zealand. The facilities are designed to be age-friendly with amenities to encourage community living and social interaction for the active and healthy while also providing specialist nursing care for those who need it in an adjacent property within the same neighbourhood. The resort is going to be built by Sarawak Construction (1963) Sdn Bhd while aged-care facilities will be provided by Optimum-Eden Healthcare Sdn Bhd as a joint venture between Australia’s Melbourne-based Optimum Aged Care Systems and Eden on the Park. Project managing director Victor Fong told The Borneo Post that due to demographic changes and increasing mobility, social norms have changed in such a way that an increasing amount of those above 50 years old experience the ‘empty nest’ syndrome.

“As more parents find themselves having to live alone – devoid of the care and support of the enlarged family – the need for such facilities for the elderly has become more acute. “We plan to revisit and re-address this cultural norm by studying what is available in more modern societies and adapting it to suit the cultural practises and non-welfare regime of our country,” said Fong. Eden on the Park sits on a 3.24 hectare (eightacre) site about 10 minutes away from the Kuching International Airport. It is a two-minute drive from the Sarawak General Hospital Specialist Centre and 10-minute walk from the Sarawak Club Golf Resort. The project boasts of 104 luxury apartments with 14 units of exclusive single storey villas for active senior living.

“Eden on the Park’s unique financial architecture helps to address this issue as it enables the residents a carefree existence without the worry of long term maintenance commitments,” Chin highlighted. “The physical design also allows for downsizing and the flexibility of subletting part of the unit, if necessary.”  The site itself has a four acre reforested tropical rain forest with jogging tracks, an aesthetic lake, hobbyist garden, outdoor art studio and facilities designed to international standards in compliance with the Malaysian Private Healthcare Facilities and Services Act. “To add on to age-care facilities, Eden on the Park is also setting up the Eden Training Academy to train care givers for the community. The company is mindful of the fact that there is a shortage of qualified and trained care givers in the community capable of looking after not just senior citizens but also people, due to a result of either illness or accidents, end up needing long term care,” said Fong. Eden-on-the-Park is the Entry Point Project 17 (EPP17) for retirement village category under the National Key Economic Area (NKEA) Healthcare Sector and is keen to explore possibilities with potential partners to develop the senior lifestyle and aged care industry locally and within the Asian region.

A separate care residence is also available with 72 suite rooms with a capacity of 143 beds for assisted living and acute care. Fong further enthused that correct branding is vital to alter existing mind-sets and kick-start the industry locally, hence introducing the ‘3R’ concept of ‘Rest-Recreation-Rejuvenation’ for the project. “We believe that state-of-the-art security systems and a design which is ‘aged’ friendly, easily accessible and able to respond to emergency situation is key.

We plan to revisit and readdress this cultural norm by studying what is available in more modern societies and adapting it to suit the cultural practises and non-welfare regime of our country

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/// East Malaysia Property News

Gen-Y Buyers Lack Trade-Up Mentality “The other alternative is to look for a property that’s further out of the city,” says Raine and Horne International Zaki and Partners Sdn Bhd senior partner Michael Geh. Buyers should look for properties located near mass transportation systems like the Ampang and Kelana Jaya light rail transit (LRT) and the yet-tobe-completed mass rapid transit (MRT) line. “Otherwise, they might have to deal with traffic jams if there are no people movers. Unless you are near an LRT, MRT or any kind of ‘T’, you will need a car to get to places,” he says. And having to own a car would also affect what young buyers can afford in a property. Geh’s rationale for looking for properties along the mass transportation systems is that these properties would usually appreciate in value faster.

When it comes to Generation Y (Gen-Y) seeking to buy their first property, there appears to be a huge expectation gap.

Shanker during a forum held at the Property Investment Convention 2014 organised by the Wealth Mastery Academy on July 12 and 13.

Apparently, Gen-Yers won’t buy into low-cost and medium-cost apartments and houses because they aim too high, desiring the high-end living that their salaries are unable to support, according to several property experts.

“And they [Gen-Yers] are not worried that they will have no income. For the Gen-Xers, they will have another job waiting before they resign,” he says, explaining that the resignation is merely a matter of transitioning from one employer to the next.

The crux of the matter is the lack of a tradeup mentality among younger house buyers, particularly among Gen Yers, who are eyeing what they want and not what they can afford.

“The Gen-Yers are different and it is because they are brought up differently. In my time, if I lose my job, I would have been whacked across the room,” he says. “Now, when the Gen-Yer quits, their parents are sympathetic to them.”

These are the 20- to 30-year-olds who are starting out, some of whom are just starting to earn their first salaries of around RM3,000 a month, says Malaysian Institute of Estate Agents (MIEA) president Siva Shanker. “They want something that they cannot afford now. So what do they do? They save up. However, the house prices move up faster than they can save. But if they practise trade-up, affordability will not be an issue,” he says. Gen-Yers, also known as the Millennials, were born during the 1980s and early 1990s, and are often referred to as “echo boomers” because they are the children of parents born during the baby boom. Because the generation that is born during this time period have had constant access to technology in their youth, their perception is different to their predecessors, the Generation X (Gen-X). For example, the Gen-Yers are not afraid of quitting their jobs without a back-up plan, says

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Shanker suggests that instead of having to deal with saving up for that condominium “that’s out of reach”, younger buyers should consider the tradeup method as an investment route to securing the home they desire. The problem for most young buyers is that they are looking at the primary market in hot spots and the property prices in those areas are most certainly beyond what they can afford. “Don’t look for a hot spot. Look for a spot that’s hot for you and make it work for you,” he tells FocusM. The secondary market makes up about 80% of the local property market. Compared to the surging prices of high-rise properties in hot spots, the secondary market provides a more affordable alternative. Many developers are also opting to develop upmarket properties offering world-class facilities and amenities, and this translates to higher prices, forcing young buyers to look elsewhere for more affordable property.

But the question is how many young buyers will consider trade-up as a viable option if it does not fit into the criteria of their standard of living. The idea of trade-up may be more easily adopted by the middle- or low-income groups. Property entrepreneur Prudence Wong shares her experience of trade-up, coming from a family that was not well off. Her trade-ups obviously worked for her. Her first investment – an apartment – had offered good rental cash flow and when the time came for her to dispose of it, she enjoyed a substantial capital appreciation. “I started small. I moved from a small apartment to condominium units, to shoplots, factories, and bungalows and now to land,” she says. “It’s not what you invest in but how you invest. I had basically two strategies. The strategies are maximising the rental cash flows and multiplying the profits. How do I do that? I add value to the properties I invest in.”

Gen-Yers, also known as the Millennials, were born during the 1980s and early 1990s, and are often referred to as “echo boomers” because they are the children of parents born during the baby boom

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/// East Malaysia Property News

Protecting Property Buyers in Sarawak and Malaysia agency firm grow in numbers and the board has received numerous complaints as to malpractices by these brokers,” Bovaea senior board member Faizan Abdul Rahman said. Bovaea also stressed that the public had an equally important role to play and that they, when engaging the services of a real estate firm, must insist on seeing the identification tag of the negotiator and scan the QR code for verification. The registration exercise is timely as the industry has been plagued by negative image caused by illegal brokers. Bovaea hopes that the Real Estate services sector will be able to maintain a high level of professionalism and also raise the standard of practice.

It is common to drive down the roads of Kuching to see banners, flyers or even stickers promoting properties for sale. Indeed, Sarawak’s property sector is booming and is still growing strong. Perhaps you know of friends or family helping other parties in selling their homes or properties on their behalf as brokers, taking a small cut from the price as payment. Not many are aware that this practice is illegal. Only registered estate agents or registered negotiators are allowed to transact properties for a fee. “Anyone who acts in contravention and upon conviction, can be fined up to RM300,000 or jailed for up to three years or both. This rule is already enforced and it is a serious offence if not adhered to,” said the Board of Valuers, Appraisers and Estate Agents Malaysia (Bovaea). Worse still are those who know these facts but go on with eyes closed! The issue here is that these brokers – meaning those practising real estate without employment with an estate agency firm – grow in numbers.

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This is just the tip of the problem as complains surface from consumers regarding brokers cheating money from consumers via these illegal transactions. These were some of the problems highlighted by Bovaea having had received numerous complaints as to such malpractices. Deputy Minister of Finance Datuk Ahmad Maslan recently said the government is aware that the number of complaints has risen over the years where the public has been cheated, misrepresented and misled in this aspect. In a step towards combatting this, new requirements have been introduced for all real estate negotiators. All negotiators will now need to go through a two-day structured course designed by Bovaea, in collaboration with Malaysian Institute of Estate Agents (MIEA), Royal Institure of Surveyors Malaysia (RISM) and Persatuan Penilai, Pengurus Harta, Ejen Harta & Perunding Harta Swasta Malaysia (PEPS). With the certificate of attendance, these real estate negotiators can apply to the board, through a registered estate agency firm. A maximum of only 30 negotiators are

allowed to be registered under each real estate agent. Each negotiator will be issued an authority tag with an assigned identification number which he or she will need to wear at all times when carrying out work as a negotiator. The rule also requires that all promotional material, including advertisements and signboards used by the negotiators, to carry their REN identification number. “The idea is to recognise real estate negotiators and to issue them with identification tags has been long in the pipeline. “This is important as Estate Agents and RENs are playing an important role in the real estate services sector which contributed close to RM90 billion in sales last year,” Bovaea president Datuk Hamid Abu Bakar said. As the economy grows and property transaction increases, more and more property brokers are joining in the band wagon to deal with properties without the necessary understanding, knowledge and skills. “The number of property brokers, meaning those practising real estate without employment with an estate

The registration exercise attracted 16,243 attendees since October last year and close to 10,000 RENs are now registered by Bovaea and have been issued with a tag each. Opinions from local observers Local property specialists are optimistic this move will begin the countdown towards regulating the industry and aid in protecting consumers. BizHive Weekly spoke with Travilion Group marketing manager Awang Saifeluddin, Malaysian Institute of Estate Agents (MIEA) Sarawak chapter chairman Wong Ho Ming (who is also Homing Estate Agency principal) and Simon Hii, principal of Simon Real Estate and also a member of MIEA Sarawak. “It is important for buyers to know the truth about what they buy,” Awang stressed. “This is the reason why we have licenses. “It is a testament to what we have learnt, what we have studied in order to be able to provide buyers or sellers with the right information they need as they sell or buy properties.” Wong quipped that a licensed estate agent is governed under the Valuers, Appraisers and Estate Agents Act (Act 242) 1981 which dictates what estate agents and negotiators should and should not do.

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/// East Malaysia Property News

“Anybody in Malaysia – if they want to do marketing for properties – they have to be registered with the board,” Wong stressed. “People like us – principals of estate agents – under us we’ve got negotiators. Every negotiator is registered and also provided with a proper tag and number. Without that proper license, any other broker is illegal.” The latest move by Bovaea to have negotiators registered with a ID tag and number, says Wong, will help the public distinguish who is legal and who isn’t. This is in line with enhancing the level of transparency, instilling integrity and to uphold standards of practice among the professionals representing the industry. It is envisaged that with the new system cases related to brokers are expected to reduce significantly. ‘No responsibility’ The main problem with these unlicensed brokers, explains Hii from Simon Real Estate, is that they have no responsibility to their client to be fully transparent and honest during transactions. This is compounded by the fact that this industry is still growing in terms of regulation and enforcement.

Hii explained. “When a consumer appoints you to help sell or buy properties for him/her, you must act on behalf of that person and that person only.

In return, consumers can sell or buy properties faster and in a more efficient manner, he affirmed.

“If that person is a buyer, you represent the buyer. If you represent the seller, then that is it. You cannot do both.”

There is, however, a crucial need for easier access to education for brokers or negotiators who want to become proper estate agents.

Illegal estate agents also may hide the truth on crucial detail in certain transactions. For example, Hii recalled stories of customers buying land without its land title issued yet pursuing the sale as their brokers told them “not to worry as it will be issued soon.”

“This issue has been going on ever since the industry existed,” Hii recalled. “Many years ago when I started working with properties – even before the board existed – licenses were being issued to those practicing in the industry.

“So, some people are tricked into buying the land while waiting for the land title but may end up waiting for 10 years without receiving it,” Hii said. “They just want to make the quick money to sell the land. Professionals will warn you of these things.” These illegal sellers often just deal via nicknames and not their full names, he added, because they’re hiding something. “There should be more transparency to protect buyers and sellers. They need to know exactly what is happening.” Proper valuation

“We received a lot of complaints of illegal brokers putting up houses for sale. They are not allowed to publish their contact details if they are not authorised.”

Awang from Travillion added that as a licensed estate agent, they are authorised to give proper estimation of the value of the property as opposed to a broker.

MIEA’s Wong explained that without regulation, unlicensed brokers may jack up the selling price of properties they deal with.

“Industry experts have been in the market for so long and have conducted many transactions. We can give better advice for the people on the proper pricing,” he told BizHive Weekly.

“A house going for RM100,000 for example may be sold for a price of RM120,000 and the broker pocketing the RM20,000 difference,” he cited as an example. “For registered negotiators and agents, we’re only allowed a fee of three per cent.” Sometimes, Hii said, these brokers can take two sides of agency fees – such as two per cent from buyers and three per cent from sellers. “We are not allowed to do that. We only take one side commission,”

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“Many times, people wonder why properties are going at higher prices and consequently want to increase the price without understanding the actual value of the transaction of the properties around that particular area. “I think by going for licensed estate agents, they can be better informed.”

Need for easier access to education

“At that time it was our bread and butter. There were plenty of brokers back then as well, going as far as setting up their tables at staircases selling house or even out in the coffee shops! “Then, Bovaea was formed and gave out licenses based on years of experience as a gauge of their worthiness. This is why many of us who have been in the industry for a period of time got our licenses without the “proper education”.

not be met for OUM to host the Part 2 course. Many dedicated students have moved to Peninsular Malaysia to pursue the course further but at their own expenses.

Anyone who acts in contravention and upon conviction, can be fined up to RM300,000 or jailed for up to three years or both. This rule is already enforced and it is a serious offence if not adhered to,” said the Board of Valuers, Appraisers and Estate Agents Malaysia (Bovaea)

The same cannot be said for the newer generation, Hii observed. Today, the path to becoming a licensed estate agent requires one to take two parts of the Estate Agent Examination, which requires a minimum entry qualification of minimum in SPM/MCE with three credits and two passes. Passing the aforesaid exam of two parts will grant make you a probationary estate agent. At this point, you will need to work full time with a licensed real estate agency for a minimum of two years, submitting work diaries along the way. Upon completion of this stage, probationary estate agents will need to submit two task papers to Bovaea and pass an interview with the board before being granted the title of licensed real estate agent. Travillion’s Awang said taking this exam was no easy task for Sarawakians as only Open University Malaysia (OUM) offer the said course here. The lack of students progressing beyond Part 1 Exam, he said, also caused a delay for Part 2 exams as the minimum student quota could

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/// Hot Topic

South Lake - Twinvillas, River View Precinct

South Lake, Miri

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Situated opposite BBP’s shopping mall, Permy Mall and within established commercial hubs, the Pusat Bandar shophouses are highly sought after commercial properties. With a variety of exciting new features such as double frontage, double storey commercial use, internal walkway and modern facade, they are an attraction for investors and business owners alike!

PROPERTY DEVELOPMENT IN SARAWAK The Land of New and Exciting Opportunities P

roperty Hunter takes a sneak peak at a few prestigious property developments making waves in Sarawak. These well-established names in the property market are infusing their own unique brand of concept, design, lifestyle and living to a growing market of discerning home and house buyers. WELCOME TO YOUR WORLD At Naim, we don’t believe in building residential and commercial properties. We believe in creating vibrant, peoplefriendly communities, where everyone wants to be. With Sarawak Corridor of Renewable Energy (SCORE) being the main development thrust for Sarawak focused on driving growth in the State and projected to bring in more than RM300billion* worth of planned investments, our developments, which are located within the key growth areas of Sarawak, are one of the best investments you could make. So, when you become a part of the Naim community, you are not merely buying a property. You buy a home or a business

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premises, in the right location, designed and built to international standards and with good investment potential. After all, we focus on the most important aspect of all – YOU. Bintulu Paragon Integrated Development – A New Metropolis Is Born To be developed in two phases, Bintulu Paragon is distinctly the largest and most contemporary integrated development to transform Bintulu. Situated at a prime area within the heart of Bintulu town, it will recreate the skyline with super stylish condominiums, skyscraper office towers and buildings of innovative designs. Upon completion, Bintulu Paragon will be a self-contained hub replete with residential, commercial, retail and hospitality components. With the successful launch of its Phase One, comprising chicly designed Street Mall, trendy Small Office Versatile Office (SOVO) and ‘The Peak’ which is the tallest condominium tower in Sarawak, Bintulu Paragon is Bintulu’s premier address, the pride of Sarawak.

Pusat Bandar Phase 5

Bahagia Residences apartments

Bandar Baru Permyjaya (BBP), Miri – Miri’s largest mixed township

South Lake - Terraces, Willow Moss Precinct

An energetic and vibrant township comprising residential, commercial and industrial components, and a shopping mall, BBP’s success speaks for itself. With its strategic location of just 15 mins’ and 20 mins’ drive from Miri City and Brunei Sg. Tujuh Customs Office respectively, BBP provides the perks of community living equipped with modern amenities.

Two of BBP’s components, Bahagia Residences and Pusat Bandar shophouses, are the choice of many. Bahagia Residences (4-storey apartments), BBP’s first apartment development promises fresh urban living at its best. With 24-hour security, affordable prices and a range of recreational facilities for adults and children, Bahagia Residences is your sanctuary, suitable for singles, couples and families.

For those desiring a discerning lifestyle, our South Lake Permyjaya development is the choice for you. Spanning over 450 acres, South Lake is a chic upmarket enclave within BBP developed based on an appreciation for the environment, security and healthy community living. Comprising of residential and commercial components, its main feature is a 30-acre lake which provides the community with boundless lakeside activities and other recreational facilities. One of the highlights of SouthLake is the Clubhouse, a nexus that promotes a close-knit community and is located at the lake front. What sets SouthLake apart from the rest is the SouthLake Innovation New Generation (SLING) lifestyle, which focuses on exclusivity, rejuvenation, security and connectivity. In addition to lush landscape and a myriad of lifestylerelated facilities, SouthLake residents will enjoy privacy and security with guarded entrances. Residences of

SouthLake will also be equipped with High Speed Broad Band services and home security system which is part of a Central Monitoring System for added peace of mind. Sapphire On The Park @ Kuching Paragon – Live It Up In Style Nestled amongst mature residential and commercial enclaves at Kuching South, Kuching Paragon integrated development introduces multifaceted lifestyle experiences integrating residential, business, retail and hospitality components. A mere 10 mins’ and 15 mins’ drive from the heart of Kuching City and Kuching International Airport, Kuching Paragon is Kuching’s newest landmark, fulfilling the demands of the present and sets the trend for the future. Sapphire On The Park, Kuching Paragon’s first upmarket condominium component and built with a contemporary tropical minimalist concept, epitomises resort and chic urban living. With multisecurity, over 72,000 sq. ft. of lifestyle facilities and a range of value added services, Sapphire On The Park is built with you in mind, a product of your vision *Sources: RECODA 2012, The Sarawak Government official portal and various newspapers/bulletins

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Night View, Riverine Diamond

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Riverine Diamond @ Kuching Riverine Resort - A Golden Opportunity T

he Riverine Diamond, consisting of 2 blocks of 312 units, are the last 2 condominium towers in the Kuching Riverine Resort development and an opportunity to own an apartment here should not be missed. There will be studio, one and two bedroom units that will be offered for sale when the project is ready for launching, which is expected to be within this year when all planning is completed and all approvals obtained from the Authorities. This project is a joint venture between the Sarawak state government via its agency, Land Custody Development Authority and Top Ten property developer, IJM Land Bhd, via its subsidiary, RB Development Sdn Bhd. Being located within the Central Business District of Kuching, makes it a prime piece of real estate. Being located beside the Sarawak River with its own waterfront esplanade, makes it

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fall into that rare category of residences known the world over as waterfront homes where a waterfront lifestyle can be savoured. Sunrise and sunset views are an amazing sight where flocks of birds can be seen going out and coming in each day. Water sports can also be enjoyed as owners here can berth their watercrafts at the floating pontoon and also enjoy kayaking or jet skiing or just take a stroll at its waterfront esplanade. The annual Sarawak River Regatta can also be viewed from here, which is a convenience that owners get to enjoy either from their waterfront balconies or from the waterfront esplanade. Every festival, be it Chinese New Year, Gawai, Hari Raya or Christmas, residents here get to enjoy the view of fireworks lighting the sky in all their glory. Swimming Pool View, Riverine Diamond

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Balcony View, Riverine Diamond

The Riverine Diamond, consisting of 2 blocks of 312 units, are the last 2 condominium towers in the Kuching Riverine Resort development and an opportunity to own an apartment here should not be missed Soaring to 22 storeys high, these centrally located condominiums not only offer commanding views of the meandering Sarawak River but also the waterfront esplanade, the iconic DUN building, the sprawling Kuching city and the surrounding mountains, hills and plains. Besides having full condominium facilities, the podium floors also offer the convenience of commercial outlets to residents and the public. This development is also popular with tenants both expatriate and local as security is assured via perimeter fencing, 24 hours security with guard patrol and CCTV as well as proximity card accessed lift lobby. The other components of the development being the Riverine Emerald and the Riverine Sapphire are both fully completed and fully sold and purchasers of these condominiums include VIPs, prominent Kuching Developers, professionals and other discerning notaries.

Riverine Diamond

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/// Hot Topic

Sky Villa Residence Enclave

Interior of Sky Villa showroom

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The Blue Ocean For Property Investment In Kuching

eing the pioneer in developing an integrated satellite new township in Kuching, MJC City is thriving in introducing new concepts and lifestyles to their investors and home-buyers. MJC City proclaimed to be one of the most competitive new townships in Kuching where the location is no longer foreign to locals and expatriates. Located just 7km from Kuching Business District and 7km from Kuching International Airport, this address is highly sought for its convenience, lifestyle and also earn hefty return as proven. International businesses also filled up the commercial hub of MJC City such as 24 hours McDonald’s Drive Thru Restaurant with McCafé, 24 hours Kentucky Fried Chicken Fast Food Restaurant, Pizza Hut, Secret Recipe

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Lifestyle Café, Sugar Bun, MayBank, RHB Bank, Rodalink Bicycle Outlet and many exciting businesses and services made available which brings convenience and enjoyable lifestyle to you. Many have made handsome returns by investing in MJC City. Earning up to 13%* per annum in capital appreciation return for those who buy and invest while some keep the properties and earning up to an attractive 6%* rental return per annum. You benefit best of both returns if you buy now! Wait no more! Papillon Street Mall – A New Revolution of Lifestyle Papillon Street Mall is another breakthrough hybrid concept of commercial shop and shopping mall. This street mall concept with

its square pedestrian walkways perfectly meets the shoppers and business operator’s expectations by combining a variety of commercial offer with a pleasant shopping, dining and entertainment experience. Ground floor shops allows shoppers to conveniently stop and grab their favorite food and beverages for their family when on the way back home after a hectic day at work while for those who would like to chilax with friends with a couple of drinks, you can take the escalator up to the first floor and enjoy the evening breeze at the first floor podium. This is the lifestyle that everyone desires and for those who want to keep trim and fit, sweat out at the fitness centre treadmills towards the ray of the sunset. The Papillon Street Mall will be the first lifestyle

mall which not only focusing on businesses and services but also aiming to host events and activities here. Papillon Street Mall is targeted to complete by December 2015 and MJC City is now in the progress of leasing its commercial units. Businesses such as food and beverages, flagship fashion outlets, lifestyle and leisure stores across two floors with escalators placed at its quadrilateral with total of 86,800 square feet retail space are aimed to anchor Papillon Street Mall. In the center, an elevated podium with vehicular access displays the full effect of the dual frontage first floor commercial shops to its full effect to traffic on the main road. The Ground Floor Commercial units at Papillon Street Mall were recently opened for sale. Ground Floor units

are best choice units that benefit the retail businesses due to its double entry and exit design that bring high accessibility for shoppers to walk by. With ample on street parking space surrounding the blocks enable patrons to leisurely stroll around Papillon Street Mall to find out what’s news and take advantage of the highly visible frontage best for retailers and consumer product. This extraordinary street mall has successfully sold more than 90% of the total sales value of the Papillon Street Mall and only Ground Floor units are available for investment now. Papillon Street Mall is not only a shoplot but is your long-term investment assets! You will not only enjoy higher overall returns in terms of the property capital appreciation up to 10%* but also stability from long-term tenants with striking 12%* guaranteed rental returns in two years upon completion. MJC City will assign the tenant for you and all you need to do is just sit and wait the monthly rental came into your pocket without worrying your tenant and

your monthly rental stability because of 12%* guaranteed rental returns you can relax your mind and start your returns in easiest way. For business opportunist, Papillon Street Mall also welcomes you to come and find out more on leasing of the Ground and First Floor commercial units. Initiate and expand your business to Kuching and let Papillon Street Mall be your benchmark to elevate the status of your business. SkyVilla Residence Another blue ocean development by MJC City is the SkyVilla Residence which is a 16-storey high rise condominium that builds on an 11 acres serene atmosphere surrounded by green landscaping at the peaceful edge of the township. Currently, MJC City is selling the 3rd block which also knows as Bella. SkyVilla Residence is best known for its semi-detached in the sky layout where every unit is a corner unit

which maximizes the ventilation, brightness and privacy for best living and comfort area. Bella@SkyVilla comes in built up area range from 1,001 sqft up to 1,367 sqft with a choice of 3 or 4 rooms. SkyVilla Residence completed facilities such as dual security access card system, CCTV, swimming & wading pools, Jacuzzis, barbecue area, mini theatre, reading room, gymnasium, children’s playground, yoga/aerobics room and a multi-purpose hall are some of the facilities made available to the residents and their guests. These have become the added value for the investors to receive proven capital appreciation of up to 13%* per annum and rental return of at least 7%* per annum when you grab a unit now. One Residency New Phase One Residency is another hybrid development with a combination of 2-storey link houses and 3-storey town villas enhanced with resort facilities. There are no other developments as such in Sarawak

and is proudly to boast about their design and concept which won One Residency an award during the SHEDA Excellence Awards. Its premium phase is expected to launch soon with only 31 units available for sale. One Residency houses high net worth residents from businessmen, professionals and retirees because of its gated and guarded feature. The main entrance is manned by security guards that ensures your safety from time to time. If you wish to know why there are more than 200 residents of One Residency choose to stay in this harmonious neighborhood, you should not miss the chance and opportunity to register now for the premium phase.

Located just 7km from Kuching Business District and 7km from Kuching International Airport, this address is highly sought for its convenience, lifestyle and also earn hefty return as proven. www.PropertyHunter.com.my

/// Feature Property Showcase

Affordable 3-Bed 2-Bath Apartments From RM230,000 to RM250,000

/// FEATURE PROPERTY SHOWCASE

n response to the governmentâ&#x20AC;&#x2122;s call to provide affordable housing in Sabah, particularly for first time buyers, Kinsabina has stepped up with its project under the Private Affordable Home Ownership Housing Scheme. It has just received approval to proceed with its Timbok Jaya Apartments located at Kg. Timbok, Tuaran, along Jalan Sulaman spanning a land area of 19.254 acres. The development consists of 6 blocks of 11-storey medium cost affordable units with ground floor parking. There will a total of 1,200 units with each 879 sq ft apartment having 3-bedrooms, 2-bathrooms and a spacious balcony. Each unit is priced between RM230,000 and RM250,000 per unit with an additional RM25,000 added to a corner unit. Surrounding the built-up area are well-equipped sports and recreation facilities and an open green space for residents to enjoy quality living at a very affordable price. The facilities include a playschool (taska), surau, clubhouse, swimming pool, basketball courts, sepak takraw courts, badminton courts

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Clubhouse and Tadika Timbok jaya Apartment District of Tuaran

and volleyball court. A childrenâ&#x20AC;&#x2122;s playground and barbeque area set amidst lush greenery completes the lively setting for families to spend quality time together. 888 units of Timbok Jaya Apartments approved quota under the MyHome Scheme for the first homebuyers with RM30,000 incentive grant from the federal ministry. Timbok Jaya Apartments is an Affordable Home Scheme recognised by the National Housing Department (MyHome Unit), Ministry of Urban Wellbeing, Housing and Local Government. The MyHome scheme by the Malaysian government encourages the private sector to build more affordable homes. The scheme offers incentives up to RM30,000 per home unit which benefits home buyers and private home developers. In 2014, the government will allocate RM300 million for the purpose of building 10,000 units of affordable homes around the country.

Location Map

Master-Bedroom

Wisma Kinsabina, Nosoob Baru, KM7, Jalan Penampang, 88300 Kota Kinabalu, Sabah

Fax: 088-711 741, 720 666 E-Mail : ksbnsb@gmail.com House-Layout

Development plan

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OVERSEAS INVESTORS: Why Are They Not Investing In Sabah?

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he Sabah property market has been billed as one of the strongest growing property markets in Malaysia with rapid transformation across many key economic sectors. Its agriculture, particularly oil palm, and tourism sectors have bolstered its economic regeneration after the timber boom of the 80s and 90s went into a decline. Its robust economy has triggered a surge in the property development market with the last five to ten years showing a healthy offering of up-market commercial, residential and industrial projects.

Photo by Sabah Tourism Board

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Kota Kinabalu City Waterfront

Residential properties in Kota Kinabalu such as Marina Court, Jesselton Condominium, Puteri Damai and Peak Condominium are priced between RM500 and RM650 per sq ft. This price range falls within the affordability range of local buyers and there was no urgency for developers to attract overseas investors for take up of these units. According to a recent report by Knight Frank on the Sabah property market, residential properties in planned schemes in Kota Kinabalu number approximately 53,956 with condominiums making up 14,708 (27%) and landed properties 39,248 (73%). An estimated new supply of 4,318 condominiums are coming on stream over the next 3 years and with no significant landed developments in the pipeline, which is attributed to rising land cost and scarcity of land, we will see a bigger push to develop upwards. Prices for high-end condominium properties have achieved significant increase with the completed Peak Vista I & II selling for between RM850 to RM1,200 per sq ft. Two more developments that are expected to be completed in the city’s CBD in 2015 that are within this range is the Pelagos Designer Suites priced between RM800 and RM1,000 per

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sqft and Jesselton Residence going for between RM750 and RM1,200 per sq ft. The Knight Frank Kota Kinabalu report goes on to say that residential properties over RM1 million per unit has actually achieved the highest increase in volume transaction in 2013, 22.4% up from 2012 and this trend is expected to continue in the future. The report singled out the d’Banyan Residency @ Sutera in its landed property category with a subsale price between RM3.2 million and RM4.8 million for its villas. Sabah has been very content with the take up of its properties by local investors but the recent cooling measures by the central bank to curb speculative property investment will make it increasingly difficult for local buyers to purchase these high-end residential properties. This will prompt the property developers to start venturing out to the international market to attract foreign investors. But is Sabah ready to play ball with the big boys? Kuala Lumpur, Penang and Johor Bahru have been active in the property development market targeted at overseas investors. And the property developers there have more thickly padded pockets and more importantly, experience and understanding of foreign investor

expectations of their potential investment. Adding to this is the more advanced development of communication networks, public transportation systems, and availability of prestigious international schools, hospitals, shopping and recreational centres to cater to the high quality of life demanded by overseas investors. In term of price for high-end residential units in Sabah, and Kota Kinabalu in particular, it is reaching or already on par with the more matured property markets of Kuala Lumpur, Penang and Johor Bahru. Its expanding population with an estimated growth rate of 2.4%

per annum would see an increase of 11,000 citizens a year and a corresponding increase in demand for housing developments in the city. Ginn Lai, Associate Director of Knight Frank Malaysia (Sabah Branch), says that as the rest of developed Asia struggles with heated property markets, Sabah is at the tipping point with a confluence of Borneo’s unique offerings and strong property drivers. “Sabah today is well on its way to becoming an international hotspot for travellers and savvy investors,” he adds. Blessed with an equatorial climate of year long summer days, amazing

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Aerial view of Aeropod

sunsets and virgin beaches, the world’s oldest rainforest and cool mountain ranges, it is hard for Sabah not to be on the radar of neighbouring countries – most of which are within a five-hour direct flight to the state’s gateway in Kota Kinabalu.” Another advantage for Sabah is the difficulty in gaining property ownership in neighbouring tropical countries such as Singapore, Indonesia, Thailand and the Philippines. This will also spur overseas investors to look towards Sabah as a potential property investment destination. Starting from a lower capital value base, availability of financing, low interest rate environment, and a transparent legal and title system, Sabah is quickly gaining regional interest from major real estate developers and investors. Local developers in Sabah have also made great strides in the concept design and construction quality of its housing projects. Ginn Lai is confident that developers in Sabah will be able to fulfil the high expectations of overseas investors. Increased competition to woo them over local investors to achieve their sales target will push them to up the ante in quality design, construction and finishing. Apart from air connectivity to major cities in the Asia Pacific region, Sabah has to achieve more significant connectivity on the ground in

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terms of road networks and public transportation to have the necessary competitive edge. Mega infrastructure projects such as the bridges linking Penang island to the peninsular mainland, and Johor to Singapore saw a tremendous increase in land value and prime development projects that are coveted by overseas investors. High speed road and rail links guaranteeing easier access to major airports, city hubs and leisure destinations in Peninsular Malaysia and beyond to Thailand in the north and Singapore in the south, were also significant in persuading overseas investors to choose Penang, Kuala Lumpur or Johor Bahru over Sabah. The proximity of Singapore and its vast investor potential was one of the main reasons for the construction of the Eastern Dispersal Link (EDL). The toll free expressway was built at a cost of RM1 billion to provide better connectivity between Iskandar Malaysia, one of the biggest integrated urban development projects in Malaysia at a GDV of RM60 billion, to its major investor market in Singapore.

Shopping mall at Aeropod

Stephanie Wong, Resident Branch Manager of Knight Frank which opened its first real estate office in Kota Kinabalu recently is upbeat about the potential of Sabah to move ahead in the property development market. She commented that because the Sabah property market has not fully explored its overseas investors’ potential, the possibilities to mould its direction to fully engage in the competitive property investment market in the region is very positive indeed.

Sabah still has some ways to go to warrant any heavy financial investment in infrastructure development to the scale of Iskandar Malaysia but it is undeniable that its geographical landscape, untapped landbanks and increasingly innovative and savvy developers will play a major role in deciding its future property investment trends.

Sabah has been very content with the take up of its properties by local investors but the recent cooling measures by the central bank to curb speculative property investment will make it increasingly difficult for local buyers to purchase these high-end residential properties.

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PRIME DEVELOPMENT: Making the case for Prime Development Investment

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Jesselton Residences

rime developments are often associated with long established cities with a stable history of urban growth and sustainability. Depending on which report you read, it could mean any city from London to Calgary, Zurich, Melbourne or Dublin. And depending on what you are interested in, anything from an African game lodge to a New York cityloft.

The Loft

But are they a safer investment option compared to other standard properties? “Not necessarily so. But it is not so much a question of safe. The focus should be on one’s investment strategy. During recession, a property may fall vacant leading to loss of rental income and inability to service loans, if the investor is highly geared. If one’s investment strategy is to speculate, he may get into trouble during a recession, possibly selling his property at a loss. Generally, one should buy or, rather, borrow within one’s means. “

In a nutshell, defining the meaning of prime property is not as easy or simple as it sounds. Cornelius Koh, Director of CH Williams Talhar& Wong (Sabah), says that there is no official definition of ‘prime development’.

There has been some strong indications as to the resilience of the prime property market. During the economic slowdown that impacted the UK housing market in 2008 as a result of the US housing bubble burst, properties at the top end remained largely unaffected by the turmoil.

“In my opinion, prime developments are those that have the combination of size, value and location not necessarily ‘100%’ for each aspect, but a high degree of these features,” he says. Prime developments are typically larger developments with high(er) values (especially in terms of value per square footage) situated in wellsought / established locations. Examples include Jesselton Residences, KK Times Square Phase 1 & 2 and the likes of these.” According to Knight Frank in its The Wealth Report which tracks what they consider the most sought after property markets around the world, the term prime property equates to the most desirable, and normally most expensive, property in a defined location. Commonly, but not exclusively, prime property market are areas where demand has a significant international bias.

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The key would here is desirable. Not every very expensive property will be luxurious and often, especially in built –up area, what investors are paying for is the view or the location. To invest in property, there will be profit to be made now and in the future – just like it has been for many years in the past. The only difference is that you have to find out where the profits are. It is a search that has to be guided by what you expect out of your investment. Koh commented that investing in prime developments or locations would be a good hedge against inflation but where

investment is concerned, there is always the consideration of immediate returns in terms of rental returns and long term capital gains. He adds, “One must look at a combination of these. In most cases, after a certain gestation period, the property will appreciate in value and those that are rented out would generate returns, although the margin of appreciation and rate of return would, of course, vary. Some investments may also require a longer period but some only take a short time before they see significant gains.”

Naomi Heaton, chief executive of London Central Portfolio Limited, was quoted then to say that the prime property market was unlikely to suffer from the same problems as the mainstream market. She attributed this to the fact that prime properties were “largely held by long-term owners, either as second homes or as rental investments”. With regards to the luxury home market, Ms Heaton was quoted to say that low loan to value (LTV) ratios in wellstructured investments and long-term mortgages that have largely been paid-off mean that repossessions are minimal and distressed sales are few and far between. The property market in the UK has remained a top choice for many international investors not only because of its stable growth but also for its ability to adapt itself. In a recent interview with OPP (Overseas Property Professional), a leading

Jesselton Twin Towers

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/// Hot Topic

Jesselton Residences

Pedestrian Boulevard, Sutera Avenue

Prime developments have shown a higher degree of resilience by being able to better ride out financial crisis and bounce back to restore investor confidence compared to other types of property. But what factors contribute to this resilience and are you primed for prime property investment?

Sutera Avenue

global business information and media group, Ms Heaton again voiced her confidence in the UK property market to continue thriving despite worries of a UK market “bubble”. She said, “England had experienced very strong levels of growth traditionally and between 1996 and the onset of the credit crunch in 2007, average annual growth had been 9.65%.” Indeed, in 2002 and 2004 it was 16.1% and 14.8% respectively. The market has a habit of self-regulating itself and when it overheats or mortgages become more expensive it becomes unaffordable and prices tend to flatline.”

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Malaysia is still in its infancy if compared to a matured prime property market like London. It has fared relatively well and even with the recent cooling measures, itis expected to remain stable for the second half of 2014 and into 2015. But its resilience is yet to be fully tested and this is one of the list of indicators put forward that will determine if a city or country’s property market will have a longterm future. Resilience Indicators There seems to be a common practice amongst governments to equate rising property prices with increasing affluence. While housing prices are often used as a yardstick

to measure economic health in many countries, increasing prices are great when you have growing equity in your property but not so great if you have to max out on lending just to get in on the action. So what should you consider before investing a huge sum of money in prime property in Malaysia? A report on Resilient Cities by international real estate company Grosvenor International Research cited that apart from a stable pattern of urban and population growth, adaptability as one of the main indicators of resilience. In the report’s foreword, its CEO Mark Preston quoted: “At Grosvenor, we realise that a city’s long term success cannot be measured on annual volatility and returns alone. We need to evolve

our approach and analyse the risks and opportunities of cities holistically, taking into account their geographical location, governance, predicted population growth and resources, amongst other things. We need to know how vulnerable they are, but also understand their ability to adapt and improve. We need to establish their resilience.” Malaysia has a proven list of the qualities to attract prime property investors– geographical location, accessibility, communication, excellent public, health and educational facilities and a thriving property development industry. Property investors in Malaysia now have more information available to them to help them decide on what to invest in. Knowledge is power and the more data you have, indeed the more you are able to invest wisely.

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/// West Malaysia Property News

WEST MALAYSIA PROPERTY NEWS

Sharing news and information about various issues related to the property industry from Peninsular Malaysia.

Hong Kong Developer Ventures Into Johor

The building of R&F Properties onsite sales gallery next to the Singapore Johor causeway link bridge in March, 2014

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Hong Kong-listed R&F Properties plans to build a luxury apartment project on a 116-acre of land in Tanjung Puteri, Johor after it successful acquired the land from the royal family for RM4.5 billion last year.

initially release next month 400 units housed in four 30-35 storey towers.

On a psf basis, the prime land costs more than RM890, making it the second most expensive land in the Johor Bahru, trailing the RM991 psf price tag of a 37-acre land in Danga Bay that was also bought by another Chinese firm.

Notably, this is R&Fâ&#x20AC;&#x2122;s first offshore development outside of China. With more than 20 years of experience in the property sector, the firm has built five-star hotels, classical bungalows and grade-A office towers.

Recent launches in Iskandar revealed that prices fall between RM600 and RM1,000 psf, with prime units costing at RM1,500 psf.

Phase 1 of the project will comprise 15 blocks of high-end apartments, which will be launched by midJuly. The sales gallery will open this Saturday and the developer will

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/// West Malaysia Property News

Eco World Chosen to Develop Former Pudu Jail Site Based on Expertise

UDA Holdings Bhd chose Eco World Development Bhd to be part of the redevelopment of the former Pudu jail site due to the expertise of the latter’s key personnel who were involved in the London-based Battersea project while they were with SP Setia. SP Setia is developing the Battersea project with Sime Darby Bhd and the Employees Provident Fund (EPF). UDA Holdings chairman Datuk Johari Abdul Ghani said the company invited Eco World to participate in the redevelopment project, dubbed Bukit Bintang City Centre, after it could not find a suitable partner. “When we did the RFP (request for proposal), we found that the companies did not fulfil our requirements. So we started looking for the expertise, which was the experience of developing a project of similar size, as well as having the financial strength,” he said at a briefing yesterday (June 24). StarBiz reported yesterday that UDA would jointly develop the RM7 billion gross development value project with the EPF and Eco World. UDA and Eco World will hold 40% equity stake each in a special purpose vehicle, while EPF will hold the balance 20%. In September last year, UDA called for parties to submit their proposals to redevelop the site. Of the five companies that submitted proposals, only three were shortlisted. The three were Malaysian Resources Corp Bhd, the Naza Group and another small company, said Johari. Bukit Bintang City Centre will comprise residential and commercial towers, a one million sq ft mall, a retail centre, a music and entertainment hub, a

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Country Garden Diamond City to Be Launched in September

Malaysian grand bazaar, a mosque, al fresco dining terraces and a food court. One of the main features of the development will be an 88-storey tower comparable to the Burj Khalifa in Dubai. The tower will feature strata title offices, a 300 to 400-room hotel, and an exclusive condominium. The project will also have the advantage of accessibility to public transportation with light rail transit, mass rapid transit and an underground bus terminal. At least 50% of the contract work will be awarded to qualified bumiputra companies, he added. “We would like to invite qualified bumiputra contractors to participate in the construction of the project,” he said. Qualified bumiputra companies with strong retail branding will also be given priority to lease retail and commercial spaces in Bukit Bintang City Centre. Meanwhile, bumiputra retailers that have yet to establish themselves in retail branding will have the opportunity to participate in the Malaysian bazaar component of the development. Johari said UDA, the landowner of the 8.1ha site, would manage the retail mall and some office buildings to generate recurring income. The project has a net lettable area of 5.1 million sq ft. He stressed that the land would still be owned by the company after the project was completed. The Pudu jail redevelopment is part of the Economic Transformation Programme to turn the Klang Valley into the Greater Kuala Lumpur economic district and Malaysia into a high-income nation by 2020.

Plot B of Country Garden Diamond City in Semenyih, Selangor, will be launch in September by the Hong Konglisted Country Garden. As reported by Business Times, the project is upbeat on property sales, against the backdrop of a sound investment market. Spanning 102ha, this freehold development will be divided into Plot A and B. It is a 55:45 joint venture between Country Garden and Mayland Group. Plot A was launched last November, comprising 415 units of luxury link houses, bungalows and mansions worth about RM710 million. According to Country Garden Malaysia regional sales and marketing general manager You Li, 70 per cent of the units were sold during the first week of its launch. Each unit was sold for between RM700,000 and RM5.4 million. Eighty per cent of the buyers were Malaysians and the rest were from China.

“The joint venture decided to keep the remaining units in Plot A and are now opening them to the market again,” said Li. “The prices were increased by over 20 per cent because of on-going infrastructure development and the entry of big boys like Eco World Holdings Group Bhd and SP Setia Bhd, which is boosting property prices here. For Plot B, the joint venture will have more than 500 units of semi-detached homes and bungalows, worth about RM1.7 billion. Diamond City is supported by facilities that include a clubhouse and world-class golf-themed landscape garden elaborately designed by China’s chief golf course designer. Located opposite the University of Nottingham Malaysia campus and is 30km from Putrajaya and 45km from the Kuala Lumpur city centre.

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/// West Malaysia Property News

Property Consultants Urge Local Housing Market to Address Structural Issues institutions have to step in to release the land and do joint ventures with private developers to develop affordable housing, particularly in the Klang Valley, Penang and Johor. The Government can also absorb some of the infrastructure costs from the private developers so that they can sell at lower prices. It will also help if affordable housing and housing for the low income group are built to be rented out as an alternative to buy.

Structural issues in the local housing market need to be addressed if the market is to advance into a more well-balanced and sustainable one, property consultants concur. A double-digit jump in the prices of houses of between 15% and 20% in the last two years and a spiraling cost of living has caused a widening gap between income level and price levels, and a resultant mismatch between disposable income and house purchase affordability. As a general rule of thumb, mortgage repayment should not exceed 28% of gross monthly income, but for many house buyers, they have no choice but to contend with much higher repayment amount leaving them with very little disposable income. One of the obvious structural issues is the mismatch in the housing products being launched that comprise a higher percentage of higher priced housing products, even though the supply of affordable and medium-priced housing is still grossly inadequate to meet the high demand.

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Chartered surveyor and registered valuer Dr Ernest Cheong says a holistic solution to ensure a more equitable and sustainable housing market for Malaysians is certainly in order. “The only holistic approach to the provision (or lack of provision) of affordable housing in the form of low-cost and medium-cost houses is for the Federal and state governments to assume the role and responsibility to perform their rightful public duty and responsibility of providing for these housing units. They have at their disposal land reserves and the financial resources to implement the mammoth task of providing affordable housing to the millions of Malaysians who need these housing. “The private sector developers, being profit-motivated, will not build low-cost and medium-cost houses and sell them at prices they consider to be unattractive or even below their costs,” Cheong says. Agreeing with him, DTZ Nawawi Tie Leung executive director Brian Koh says the Government has to play a larger role not just in the

low-cost but middle segment of the market that is ignored by private developers, and cites the case of Singapore where the city-state has its Housing Development Board building affordable housing projects that make up a high percentage of the total housing stock. “Meanwhile, at the higher end segment of the market, although there is substantial investment demand, yields and rental demand are too low and insufficient. The property market can do with some tweaking in product offering by the developers to ensure more mediumrange housing units are being built to meet the high demand,” Koh points out. VPC Alliance Malaysia Sdn Bhd managing director James Wong says the main reason why developers are still launching more high-priced products and not enough of the affordable projects is because land prices in the Greater Klang Valley, Johor, and Penang have risen and it will not be feasible for developers to develop affordable housing. To release more land for affordable housing, the various government

He adds that speedier and more transparent planning guidelines and approvals of development projects which indicate the actual zoning, density and maximum height for each lot to be developed will also help matters for the lower income group. National House Buyers Association (HBA) honorary secretary-general Chang Kim Loong says HBA has alerted the Government of the sprouting up of a “homeless generation” where the younger generation of Malaysians will not be able to afford their own homes. Also, for single parents and those from the lower income groups, buying a property is getting more and more difficult and may soon “be impossible”. “We are glad that the Government has finally taken some action in Budget 2014 to address this issue such as increasing real property gains tax and to outlaw Developer Interest Bearing Scheme. Bank Negara has also imposed a loan to value ratio cap of 70% for the third mortgage to reduce speculation and these measures have cooled down the market,” Chang says. Knight Frank Malaysia managing director Sarkunan Subramaniam calls on developers, bankers and other stakeholders to play more responsible roles to ensure the gap between supply and demand is manageable, and to be more socially responsible by building communities instead of just being profit-driven. “In these challenging times, developers have to be more balanced in terms of their pricing strategies, by not overpricing their products and provide purchasers a chance to enjoy potential price appreciation when the products are completed,” he says.

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/// West Malaysia Property News

Stormy Landscape for Johor Property Development offices, hotel and a shopping mall, all of which will be on a saleable floor area of about 3.5 million sq m, which is close to 10 times the floor space of the Petronas Twin Towers in the capital. Local developers are starting to feel the pressure following the massive developments by the Chinese developers.

The booming presence of developers from China in Johor has not only ruffled feathers among local developers but also sparked concerns of the Singapore government due to the massive land reclamation works. Following the high-profile entrance of Guangzhou-based Country Garden Holdings Co Ltd, which launched 9,000 units in Danga Bay at one-go in 2013, all eyes are now on other developers from China who are expected to adopt carpet bombing kind of development. Country Garden made the first move in Johor Baru. It is followed by Guangzhou’s R&F Properties Co (R&F) that bought 116 acres near the first link in Johor Baru from the Sultan of Johor for RM4.5 billion. R&F could be launching as many as 30,000 units over the next few years on land that is to be reclaimed. Agile Property Holdings Ltd is another China-based developer that is expected to make its presence felt in Johor Baru after it bought 1.3ha from Tropicana Corp Bhd in Bukit Bintang, Kuala Lumpur. A study by a government investment body, which had undertaken a comprehensive development plan for Johor estimated that the number of new condominiums coming up in Johor Baru is about 30 times over the number of units built in Mont Kiara. “That is the number of new units coming into the market,” says an official. But what has caught the attention of the Singapore government is a project near the Second Link involving 5,000 acres (2,023 ha) reclaimed from the sea.

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But the developers from China are optimistic that Johor will be akin to Shenzhen and the units being built would eventually be taken up. Country Garden, one of the Top 10 developers in China, has teamed up with a subsidiary of Johor’s stateowned investment arm, Kumpulan Prasarana Rakyat Johor (KPRJ), to undertake the job. Singapore’s concern The development has caught the attention of Singaporean authorities who felt that it would eventually have an impact on their shore line. Towards this end, Singapore has sent a note to Wisma Putra expressing concerns over the project. “It is being dealt with” says a source. An addition of 5,000 acres also means that there will be much more land in the southern region, possibly impacting the sustainability of the supply-and-demand chain. In an interview with StarBizWeek, Country Garden regional president for Malaysia project Kayson Yuen says the mega project “Forest City” will span over 30 years and the company had studied it more than a year ago before committing into it. He said the land was bought at a “reasonable price” but could not furnish with details for Forest City’s land cost. As for R&F, a very high-density project is in the pipeline, with the company planning to launch 15 blocks in the first phase. The six plots it bought from the Johor Sultan last year came with a high plot ratio of 1:10. Industry observers say the plot ratio can be further extended to 1:13. R&F plans to develop high-rise residential units, retail properties,

Says Yuen: “It takes Shenzhen 20 years to where it is today... so we expect for it to take some time for Johor to develop into the same status.”

That said, the sustainability of Iskandar Malaysia is in question due to supply far outstripping demand. Currently, Iskandar Malaysia has a population of 1.6 million while Singapore has 5.4 million. Shenzhen’s population is a whopping 11 million while Hong Kong’s has 7.2 million. That leads to another question: Who will take up the massive supply of houses in Iskandar Malaysia and Johor Baru? Country Garden’s Yuen says Chinese buyers make up 35%, locals 40% and Singaporeans 20% for its highrise Danga Bay project.

But Iskandar Malaysia, which is almost three times the size of Singapore, is already being positioned as the Shenzen of Hong Kong. Shenzhen is about twice the area of Hong Kong.

Who are the buyers? While there are rumours that Country Garden has employed a “buy-one-free-one” approach to lure Chinese buyers, Yuen outright denied such talks.

Iskandar’s sustainability The Chinese are investing in Malaysia because of political stability, potential from the Singapore spillover effect, low cost of entry, cultural similarities, language and also partly due to the slowdown of the property market in China.

One commercial banker tells StarBizWeek that many of the purchasers from China who buys into Malaysian properties fall into the middle-income level.

The developers, especially listed companies, come to Malaysia because it is still considered one of the most affordable countries in the region.

“To them, Malaysian properties are very cheap. Some of them do not even bother to take up loans due to the lengthy process of approval.”

“Take Vietnam as an example, the recent (anti-China) riot shows that there is a considerable political risk to invest in the Indo Chinese nation,” one developer explains. As for the Philippines, the political relationship is not amicable over the years. Singapore, on the other hand, is expensive. Betting on Iskandar Malaysia as the next Shenzhen, Johor becomes a natural investment choice for China developers but it is also the very same reason that Malaysia has to strike a balance to maintain a congenial relationship with Singapore.

Their profiles range from small business owners, teachers to executives.

He says such buyers will opt to buy in cash and the property prices here are much cheaper compared with those in their homeland. Some buy the houses as investment while others buy for their children, so that when they send their children here, there will a place for them to live. “Other countries like Australia, Singapore and Hong Kong are too expensive for the middle-income Chinese buyers while in Thailand, foreigners cannot own property there,” he explains. Depending on the bank, the process to approve the loans may vary.

He says normally foreign buyers can get 50% to 60% loan of the total purchase price and banks may request for the foreign buyers to deposit few more months of instalments upfront.

Eco World Tipped to Get Prized Pudu Jail Land for RM7 Billion Project prompting rumours he would join Eco World as his son, Tian Xiong, is also a director and substantial shareholder in the company. Eco World has embarked on a programme to expand its land bank and projects worth up to RM30 billion after a corporate exercise last year. Its jointventure in the Bukit Bintang City Centre is expected to help UDA trim its debts and raise money for affirmative action projects.

“To prevent the risk of default, banks are usually more cautious with the approval process as the checking of the income statement can be different from the local buyers. “Some banks may also perform a credit checking on the buyers in their country,” he adds. It is usually easier for buyers to borrow from the developers’ panel banks, which can also be a local bank. As for Country Garden, analysts say the company raises bonds in Hong Kong and utilise the funds for its expansion overseas. While listing can be another way of raising funds, in Country Garden’s case, analysts opine that floatation of its Malaysian unit is unlikely to happen in the nearterm. As for project execution, industry players note that besides developers from China, many contractors from the mainland are also moving into Malaysia. However, Country Garden’s Yuen says it engages with mostly local contractors for its projects in Johor and hired an Australian consultant for the gargantuan reclamation works. Chain reaction from China? So far, Country Garden has the most number of notable projects in Malaysia. R&F is fast gain prominence with its launches in a big way. Country Garden’s Danga Bay project has a gross development value of RM10 billion while its projects in Semenyih and Serendah are estimated at RM3.5 billion jointly. It also has the major capital commitment for the land reclamation works for the Forest City off the coast of Pendas, Johor. Some quarters are concerned that the property growth in China will have an impact on the Chinese developers that have venutred into Malaysia following reports of property bubbles in some of the cities in China. John So of RHB Research who is based in Hong Kong tells StarBizWeek that the perception that there is a property bubble in the third and fourthtier cities in China is a “simplistic view”. “The national home sales (of China) has gone down 10% for the first five months while developers like Country Garden and Evergrande Real Estate Group have experienced robust growth for the same period,” he says. He notes that sales in certain tier-one and two cities have slowed down by some 20% and it will be impacted by affordability and demand.

Upstart property developer Eco World Development Group Bhd is tipped to win the RM7 billion redevelopment project of the Pudu Jail land in Kuala Lumpur, a prized UDA Holdings Bhd property that Bumiputera firms say should only be developed by them. The Malaysian Insider understands Eco World is going into a 70:30 jointventure with UDA for the 7.85ha prime land in the capital city’s Golden Triangle that once housed Kuala Lumpur’s main prison, the 101-year-old Pudu Jail which shuttered officially in 1996. “Eco World is getting the project, the announcement should be made soon,” a source told The Malaysian Insider, saying the site has been abandoned for the past few years despite being made an Economic Transformation Programme (ETP) project. In 2011, China-based developer Everbright International Construction Ltd was to get the project with a RM2 billion investment with UDA, which has land but not money to develop projects. But several Umno members and Malay developers protested the deal, prompting UDA’s only shareholder, the Finance Ministry, to order a new plan. There is now disquiet over Eco World getting the project, dubbed Bukit Bintang City

Centre, as UDA had called for a tender last September. Sources said the result of the tender exercise has not been revealed and there are rumblings that UDA should have considered all the bids before deciding on a directly negotiated contract. “There are no details as to how Eco World got the project. We understand that the Finance Ministry made the decision, not the UDA board,” a source said. The Finance Minister is Prime Minister Datuk Seri Najib Razak while the Second Finance Minister is Datuk Seri Ahmad Husni Hanadzlah, both of whom have oversight over UDA, which was set up to redevelop urban areas and increase Bumiputera participation.

Analysts said the decision over the Pudu Jail redevelopment will be yet another test of Najib’s commitment to economic liberalisation as the hardliners in Umno, Perkasa and Utusan Malaysia had once criticised UDA for allegedly abandoning the Bumiputera agenda by not appointing Bumiputera jointventure turnkey investors for the project. UDA, whose assets were estimated to be worth RM2 billion two years ago, is more than RM900 million in debt. It had an outstanding RM104 million land premium for the Pudu site that was due in September 2012.

Eco World has been scooping up big projects since its inception last year and has among its directors, experienced property man Tan Sri Liew Kee Sin, who resigned as developer SP Setia Bhd’s chief executive office last April 30. Liew was SP Setia’s group managing director from 1996 and turned the RM200 million company in 1998 into a multibillion ringgit international property firm. He quit just over a year after state investment company Permodalan Nasional Bhd bought over SP Setia,

UDA was set to get Everbright as its partner two years ago as the RM2 billion offer from the Chinese firm was three times the land value but politicallyconnected firms scuttled the deal.

Eco World is getting the project, the announcement should be made soon,” a source told The Malaysian Insider, saying the site has been abandoned for the past few years despite being made an Economic Transformation Programme (ETP) project.

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/// Contributor

Our Bank Negara had a conservative reserve of close to RM500 billion in its vaults and we were in fact booming with all the hot currency – the USD – pouring in from the west. The GDP was healthily growing every year and the ETP was on the run.

Michael Yeoh The Mortgage Expert

With over 15 years of experience in the mortgage and investment industry and working with prominent companies such as Standard Chartered Bank, Hong Leong Bank, HSBC and Hwang DBS Unit Trust, Michael has helped thousands of loan borrowers by providing comprehensive mortgage advisory and solutions.

reduced the interest rate to BLR6++ that brought the mortgage interest rates down to between 4 – 4.5%pa, which was the lowest in Malaysia’s financial history record.

Michael regularly conducts mortgage courses and has produced many graduates. He is also a regular columnist and also has being featured in New Straits Times Press, The Star, Property Guru and also Property Hunter magazine. He speaks regularly in Property Exhibitions, Seminars and also for developers. You can get in touch with him at Website: www.michaelyeoh.com.my

Property Investment: A Game of Chance D

o you remember the board game called Monopoly that we used to play during our childhood in the 1970s and 1980s? The last man standing wins. But now we are living the reality of a Monopoly game. Whether you like it or not, or want to play or not, you don’t have a choice because you are already in the game. What paradigm shift in the real estate investment market can we expect next from the government? The government has been giving investors a hard time entering the market by imposing restrictions and new rulings to cool off the perceived threats in the property market. Here’s a simple explanation of how I look at the market sentiments based on my understanding and experience in the real estate market.

While the author makes reasonable efforts to present information which he believes to be reliable, the author makes no representation that the information or opinions contained in this article is accurate and complete. Readers are advised to seek specific professional advice before acting on the views.

100

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If my memory serves me right, before 2007 the RPGT was all the while 30% over capital gain and interest rate was around 6%+pa. However, during the 2007 Euro debt crisis and the USA subprime market crash, market shares in the west came tumbling down and caused real estate prices to depreciate by 20%-30%. The domino effect kept on coming – currency fluctuated, manufacturing short-circuited, general trading slowed, and

mega projects halted. Retrenchment and unemployment rates increased and it was just one piece of bad news after another. However in East Asia, we had the great 8 Tigers to see us through the storm. There were the 4 Financial Tigers in Hong Kong, Singapore, Japan and Taipei and the 4 Production & Manufacturing Tigers in Thailand, Indonesia, Malaysia and the Philippines. Malaysia wasn’t hit very badly due to its low household debts and low gearing. Our Bank Negara had a conservative reserve of close to RM500 billion in its vaults and we were in fact booming with all the hot currency – the USD – pouring in from the west. The GDP was healthily growing every year and the ETP was on the run. Everywhere you looked, things were looking up and on the move. The Bursa was active, infrastructure was being upgraded, highway interchanges were opening up, hundreds of thousands of jobs were being created and much more! Then in 2007, the Malaysian government abolished the RPGT and the policy makers

Soon after, the QE bailouts in the west began with all kinds of stimulus packages to try and ease federal debts by printing massive amounts of paper currency and injecting “created” money into the market. Printing huge amounts of dollar notes led to skyrocketing inflation and price increase of every essential item we needed in our everyday life. If we look at the global inflation chart over this period, the 2007/08 line was going straight up into the sky and that’s HYPER-INFLATION. With this simple adjustments in the financial and banking system, reduced interest rate and abolished RPGT came the speculators and investors into the market at full force. The banks had loads of money they desperately needed to lend out to make a profit and were encouraging borrowings. Every single individual leverage were geared up to the maximum. Speculation, ease of financing and hyper-inflation caused property prices to hit peak bullish market. It seemed that any property you bought between 2005 and 2008 would gain a single fold appreciation on purchased value. Everyone was making money at the drop of a hat.

NOTES

Developers were churning our offers and packages to lure investors into buying properties like choosing apples and oranges. All you had to do was point your finger at the best offer with an enticing list of perks such as minimum RM1000 to buy a property, DIBS, credit note rebate, super mega discount, bulk purchase discount, Alibaba Investor Club discount, free iPads, free this, and free that.

- RPGT revised and revised and revised

The game was on indeed and all the players were reaping the rewards of their smart game play. Then came 2010 and Bank Negara to put on the brakes.

Market crash? If you had money, would this mean anything to you?

“We have to control prices; no more speculation; our citizens are facing difficulties in home ownership; prices are beyond their reach; we have to do something now.” The “do something now” involved a list of cooling measures: - Loan to the value of 70% on 3rd home purchase - Finance margin slashed - DIBS abolished - No more Investment Holding SdnBhd - Only immediate family can sigh SPA together

- Interest rate increase by 25 basis points @ BLR6.85 It is now 2014. Do we know what direction we are heading towards? Bubble burst? I have been hearing about this since 2007 but it has not happened yet.

Some people are forever waiting for the next crash without realising that they are running out of time. They could have spent the last 10 years waiting, looking and listening for that loud crash that never came. What if the property value depreciates? If you don’t sell, what’s value depreciation? So what’s next?

2. Many people get stuck with a second property and get lost with their investment direction. How? 3. Majority of people have burst their DSR and quota. How to breakthrough? 4. Some people have too many residential, SOHO, SOVO and so on. Eventually, they will find themselves stuck with a neverending residential portfolio. How to reshuffle the portfolio and jump league? 5. Some people are stuck in a job with no clear direction forward but are aware that their friends are making big bucks in the real estate business. They wonder how they do it. Is there a secret formula? Or just nerves of steel? These are never ending questions and problems. But it all boils down to LACK OF KNOWLEDGE.

As far as I’m concerned, there are many unfinished and unanswered questions. 1. Many people unfortunately have not owned a house. So the question is should you buy first? Or invest first? How do you start with the most basic understanding of investment fundamentals?

- DSR being revised

Keep reading up on more information and articles from experts in Property Hunter to get the latest news and views in and around the market.

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Real Estate Entrepreneur About The Sabah Boy Enoch is currently the Vice President of Property Hub Sdn Bhd, an award winning MIEA Real Estate Agency based in Mont Kiara, Kuala Lumpur. He leads the New Properties Division with a team of 100+ negotiators. Since 2010, Enoch has successfully brought in RM150 million worth of investments from East Malaysia to property developments in Peninsular Malaysia. He is voted by Propertyguru Malaysia as Malaysia Top 20 property negotiator 2013 and is featured on radio (BFM89.9) & Investor Central TV (Singapore). He speaks in selective events in Malaysia, Singapore, Vietnam and crisscrosses between East & West Malaysia every 2 weeks. He can be contacted at enoch.khoo@propertyhub.com.my or https://www.facebook.com/enochkhoo. hartanah

Does Sabah Have What It Takes To Attract Overseas Investors?

here has seen a dynamic push in the property development industry in Sabah to attract overseas investors for its luxurious residential and mixed-development projects. But do sales figures stand up to all the hype about these properties? Are we doing enough to lure more foreign investment? A realty salesman had just closed his first deal, only to discover that the piece of land he had sold was completely under water. “That customer’s going to come back here pretty mad,” he said to his boss. “Should I give him his money back?” “Money back?” roared the boss. “What kind of salesman are you? Get out there and sell him a houseboat!”

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While we can be happy that we have flyovers and decent quality of roads in Kota Kinabalu we definitely need to consistently invest in better infrastructure. We are glad we have an impressive Kota Kinabalu International Airport which impresses tourists and we have to credit the state government for making this happen.

Plastic surgery is big business and I feel that medical tourism is an area which is non-existent in Sabah but has the potential to grow really big.

Enoch Khoo

However we need to invest in more public infrastructure to solve the current daily traffic jams which is suffocating Kota Kinabalu city. Public transport which is almost non-existent reminds me of this quote: A developed country is not a place where the poor have cars. It’s where the rich use public transport – paraphrased from Enrique Penalosa, former Mayor of Bogotá, Colombia We also need to have a comprehensive expansion plan for our electricity infrastructure as this forms the backbone of any development. Reports that Sabah is poised to be the next Dubai and what not are mere rhetoric if the energy plans for the state does not deliver on its promises. I am sure savvy investors do not want to invest in a place where blackouts are a normal way of life unless we plan to market Sabah as the world’s best spot to enjoy Earth Hour.

Sabah is blessed with the beauty of Mt Kinabalu, the beaches and clear blue skies most of the time! It has the potential to develop into an international education hub for the region as we have the availability of land and air connectivity to make it a reality. In this area I believe our neighbours Sarawak has done a tremendous job attracting the likes of Swinburne, Curtin University, etc etc to setup full fledge campuses. This is an area Sabah should learn from Sarawak and try to perform better.

The below are some of the common reasons why someone would invest in an overseas country:

Another area I believe Sabah can do more is in the area of medical facilities. While we have Gleneagles coming in to Sabah which is great news, it would be great if we can develop a new sector which is in the medical aesthetic industry. Plastic surgery is big business and I feel that medical tourism is an area which is non-existent in Sabah but has the potential to grow really big. Instead of us going to Korea for plastic surgery, why don’t we have them come over to Sabah to do plastic surgery and they can rest and recuperate in our wonderful resorts? The currency exchange and business would benefit the local economy tremendously.

A place to live due to relocation for a job Investment & portfolio diversification Vacation / holiday homes

The below are some of the common reasons why someone would not invest in an overseas country: 1.

Could not find a desirable property to purchase Cost / Tax structure which is unattractive Immigration laws Financing issue

Wow, it has been a hectic year for me in 2014 and I have not written in this column for 8 months! While I have been busy wheeling and dealing and feeling the pulse of the property market in Peninsular Malaysia, a question that always pops up is, does Sabah have what it takes to attract overseas investors?

2. 3. 4.

I recently came across a report in the Star papers business news section which quoted Knight Frank (Sabah) projecting that Kota Kinabalu’s high end residential sector is undergoing a growth cycle with a projected demand of 2,000 residential units per annum. It also estimated a new supply of 4,318 condominiums to come on stream over the next 3 years. The question is how did the report came out with these figures or are these just mere “foh sang coffeeshop talk” or gut feel?

Based on the dynamics of overseas investors, these are not your normal property investors who are buying a home to meet their daily needs as most of them would be more discerning and technically more well-versed.

The above reasons are not exhaustive but are the main reasons cited based on NAR Profile of International home Buying activity report.

The 3 main areas I believe Sabah can do more to attract foreign investors would be as per below:

International Schools & Medical Tourism A big factor for relocating families for expatriates is education. A recent report cited that many European expatriates chose Singapore instead of Hong Kong for their work placement due to better quality of education system and cleaner air! The competition to attract top brains in the region has come to even the quality of air in a city!

While we have no idea from which source the data is coming from or from what sources Knight Frank was able to come out with that projection, let us look at what it takes for Sabah to attract overseas investors.

1. 2. 3.

Infrastructure Investment

Freehold Land One of the main reasons foreign investors chose to invest in Malaysia is because we are the only country in the South East Asian region which allows foreigners to invest in Freehold properties. Credit has to be given to SHAREDA (Sabah Housing and Real Estate Developers Association) for fighting this cause as the draw to be able to buy freehold properties is a big factor for foreigner investors. If they were to choose to invest in a RM1 million dollar property in KL or Sabah, and by investing in KL it is a freehold property while in Sabah it is only a 99 years leasehold property, chances are they will decide to invest in KL. We need all parties to work together to make Sabah an attractive property investment spot and a sustainable one. While foreign investment is great, we need to be cautious to ensure it is sustainable growth without affecting the local Sabahans ability to own a home.

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Chris Tan

You can get in touch with him at Facebook: Chur Associates Email: consult@churassociates.com

PURPOSE AND COVENANTS

Tenancy period may ranges from a month to several years. It depends on the target tenant group; expatriate may be wishing to rent for a few months when he is stationed in Malaysia while a family may be treating it as a permanent home and looking for a longer renting period. Tenancy can be divided into the following:-

If the purpose or usage of the tenancy is for residential, it shall be stated in the agreement. This is similar for commercial tenancy. The covenants of the tenant and landlord will then be parallel with the purpose of the tenancy. For example, if the tenant is renting a shop from the landlord, it is the tenant’s obligation to obtain the relevant licenses to renovate, to store items, to commence business, indemnify the landlord if there is any claims arising from the tenant’s fault etc while the landlord shall allow the tenant to peaceably enjoy the tenanted premise without interference. It is wise to check your own covenants as a tenant or landlord and make sure the same are being observed throughout the tenancy period.

Below 3 years

Tenancy

More than 3 years

Lease

It is common to hear that tenancy agreements with 1+1, 3+2 and etc. The number behind the + indicates the option to renew period for the tenancy. Most of these options normally require notice in advance to the other party and failure to comply will render the option void. Landlord may favour to revise the rental during the exercising of the option and must be put down in writing.

Lawyer Specialising in Real Estate Chris Tan is the founder and now Managing Partner of Chur Associates, a boutique legal practice that thrives in delivering business friendly solutions for its clients and having a niche positioning of ‘Everything Real Estate’ serving the entire value chain from the upstream to the downstream. Chur Associates is a boutique legal firm founded in 2004, specialising in designing legal solutions catered to our clients’ needs. Chur Associates’s brand promise is “We Deliver!” To that end, they offer clientsthe necessary means and methods to ensure their requirements are met.

TENANCY PERIOD AND OPTION TO RENEW

DETAILS OF THE LANDLORD AND TENANT Check the accuracy of the details such as name and NRIC no. Both landlord and tenant must make sure that they are reachable on the corresponding address provided as the notice mentioned above would normally be send to the corresponding addresses. An advice for landlord is not to put the tenancy premise as the correspondence address of the tenant despite him saying it would be the most convenient address. It is definitely not your intention to send a letter of demand to your own premise to ask for rental in arrear when the tenant has moved out.

Reading Your Tenancy Agreement

VACANT POSSESSION At the expiration of the tenancy period, the tenant has to deliver the keys to the landlord and it is always advisable for the landlord to visit the premise and do a thorough check on the furniture provided and the condition of premise. This practice is essential for both parties to agree on any deduction on the refundable deposits and to avoid any disputes upon the refund. The tenancy agreement is the only binding agreement that governs the relationship between the landlord and the tenant. Thus it is your duty as the landlord or tenant to understand your obligations prior to signing the tenancy agreement. If you have signed your tenancy agreement earlier, it is never too late to observe what your obligations are and at least identify the above main areas in your tenancy agreement.

DEPOSITS, RENTAL SUM AND MODE OF PAYMENT The most essential part of the agreement is the consideration. Do check the amount of the security, utility deposits and rental sum correspond with the agreement of all parties. The mode of payment must be clearly spelled out in the agreement too; ie. Payment in advance on 1st day of each calendar month, within first 7 days of calendar month etc.

o you have a standard tenancy agreement?” This is the most common question

Dencountered by any legal practitioner whenever a landlord approaches them.

It was suggested that this norm emerged from real property agent who provides a full package service from matchmaking with the potential tenant until signing of the standard tenancy agreement prepared by their business firm. However, while the terms of the sale and purchase agreement governed under the Housing Development (Control and Licensing) Act 1966, particularly to those prescribed in Schedule I, J, G and H may be standard to the public, there is neither tenancy act nor pro landlord/tenant act that indicates a “standard” tenancy agreement. It all goes back to the Contracts Act 1950 where all parties are at their free will to enter into an agreement based on mutually agreed terms and consideration. Having said that, have you, notwithstanding as a landlord or tenant, read through and agreed with the tenancy agreement before signing on those dotted lines?

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I am hoping for a majority yes. Most tenancy agreement only takes up few pages and will be done studying the whole in about 20 minutes if not sooner. If you are not agreeable to certain terms in the agreement, it is your option to discuss with the other party to mutually amend the same and do not hesitate in doing so just because someone is telling you that it is “standard”. Nonetheless, you may not know where to begin with or afraid of misunderstood when reading through the words or phrases drafted in legal jargons. Here are some head start for you to be the professional “lawyer” of your own:-

This is a series of articles that examine the latest trends and issues in real estate investment. Stay tuned. NOTES

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No EIA but Johor Coastal Reclamation Projects Already Underway, Sources Claim He also reportedly said that the DOE would be closely monitoring the activities carried out throughout the duration of the project to ensure that the environment was not compromised.

Despite the absence of an Environmental Impact Assessment (EIA) report and a call for intervention by Singapore, two massive reclamation projects are well underway in the Johor straits that separate Malaysia and the island republic. The coastal reclamation work has also raised concerns over the effect the project will have on the coastal eco-system and the livelihood of fishermen in the area apart from Malaysia’s transhipment hub in the Port of Tanjung Pelepas (PTP).

The source, however, disagreed with Ayub, saying that as of June 15, 2014, publicly available information on the DOE web portal showed that no EIA report, either preliminary or detailed, was submitted by Country Garden Pacific View Sdn Bhd for the 2,000 ha project, and by Spektrum Kukuh Sdn Bhd for its reclamation off Tanjung Piai. According to the source, most worrying of all was the coastal reclamation work stretching over 1,817ha by Country Garden Pacific View, dubbed the Forest City.

An environmentalist who declined to be named questioned how work was allowed to proceed despite the projects being “illegal” in the absence of the EIA report.

The plot near the second link crossing to Singapore has also been given a lot number, Lot PTD 4071, Mukim Tanjung Kupang, Daerah Johor Baru.

Several queries by The Malaysian Insider to the Department of Environment (DOE) on the status of the projects, their impact on the environment and the lack of an EIA report have not been answered.

A company search in February revealed that one of the directors of Country Garden Pacific View is Datuk Daing A. Malek Daing A. Rahaman, who is believed to be a long-time friend of the Sultan of Johor and is a member of the council of the Royal Court of Advisers to the Sultan.

Johor health and environment exco Datuk Ayub Rahmat had told The Malaysian Insider when contacted that it was unlikely that no EIA report was done for the reclamation projects. Nevertheless, he said that he was waiting for a report by the state’s Economic Planning Unit (EPU) on the matter. “It is improbable that there is no EIA report if it is indeed required. Even for the Tanjung Kupang reclamation project, a preliminary EIA report has been done, so it cannot be that no such report was done for the other reclamation projects. “Whether it’s a big or small company doing the project, I’m sure they know the law so let’s not politicise the issue until we find out the facts and the EPU report is ready, hopefully in a week’s time,” he had said last week.

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China’s Country Garden Holdings Co Ltd had undertaken its first project in Danga Bay, which covers 20ha of land – for which it paid RM900 million several years ago. It was reported that Country Garden Holdings and Kumpulan Prasarana Rakyat Johor are jointly undertaking the new Forest City project, which is poised to become a tourism hub. Two weeks ago, Johor Menteri Besar Datuk Seri Mohd Khaled Nordin had assured the state assembly that the land reclamation for the development of the Forest City project in Iskandar Malaysia would not affect the environment. He had also said that the state government had issued a notice to the developer, Country Garden Pacific View to prepare an action plan to effectively clear any sediment caused by the reclamation work.

The other reclamation project covering 1,410ha near Tanjung Piai, which is the southernmost tip of continental Asia, is being undertaken by Benalec Holdings for the purpose of an industrial oil and gas hub. The Johor crown prince Tunku Ismail Idris Sultan Ibrahim and Daing A. Malek are directors of Spektrum Kukuh, which partnered Benalec in the Tanjung Piai reclamation project. “There are serious environmental concerns here because the area is surrounded by fishing villages, given the rich sea grass and marine diversity,” the source said of the projects. “Their livelihoods will be affected by the coastal reclamation.” The source questioned how the land reclamation was allowed to be carried out without detailed EIA reports as required under the law for coastal reclamation projects over 50ha in size. This requirement is stated under the Environmental Quality (prescribed activities) (Environmental Impact Assessment) Order 1987 to be read together with the Environmental Quality Act 1974. The Edge Review had reported three weeks ago that Singapore’s diplomatic feathers had been ruffled over concerns that the Country Garden project would extend the Johor coast around the Second Link right up to the edge of the boundary separating Malaysia from Singapore. Media reports said Singapore Prime Minister Lee Hsien Loong had written to Prime Minister Datuk Seri Najib Razak to voice his concerns over the project. Another letter was handed to Minister in the Prime Minister’s Department Datuk Seri Wahid Omar when he was in Singapore recently, according to the report.

and had said that environment and water issues were state matters. The sultan had said in his speech that in carrying out development work, environmental issues needed to be given priority and that EIA reports needed to be prepared for development projects. “However, there are irresponsible quarters who use their powers with the EIA as a weapon to stop a development that does not benefit them. “For instance, the development project by Benalec, where the MOU was signed three years ago and witnessed by the prime minister himself, has yet to obtain the EIA approval until now,” Sultan Ibrahim Sultan Iskandar had said. The sultan had further questioned why certain quarters were bent on delaying the approval, and said that such actions only hindered the development of the state and drove away investors. “Johor is for the people of Johor and only the people know the conditions and the needs of the state so why are there outsiders who are trying to interfere or even trying to teach us what we should do in our own state?” the sultan had asked. The Johor ruler had also suggested that the jurisdiction on environmental issues be handled by the state government because it was related to land and water matters. “A state environmental body should be set up under the Johor state enactment as what has been done in Malacca, Sabah and Sarawak,” the sultan had said.

China’s Country Garden Holdings Co Ltd had undertaken its first project in Danga Bay, which covers 20ha of land – for which it paid RM900 million several years ago.

The Sultan of Johor, when officiating the opening of the second session of the state assembly last month, had made remarks about the DOE

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/// International Property News

Studio Flat in Tai Po Sets Record for Cheapest New Home in HK

Australia’s Residential Hotspots Revealed

residential use. We also secured lower construction cost as the contract was awarded several years ago.” Buyers who opt for any threebedroom unit in Tower 6 would enjoy the right to buy an additional studio flat next door first.

INTERNATIONAL

Low land cost allows Cheung Kong to price the 194 sqft unit at Mont Vert below HK$2 million mark. A studio flat at Mont Vert in Tai Po is the cheapest new home available for sale in Hong Kong, at HK$1.94 million, according to the price list released by Cheung Kong (Holdings) yesterday for the first batch of units at the project.

PROPERTY NEWS

Catch up on the latest property and real estate news, views and analysis from across the globe featured

The flat has a saleable area of only 194 square feet, which works out to HK$10,031 per square foot. The smallest unit at the development, of just 177 sqft, is not included in the first batch. Of the 260 units on offer, 43 are studio flats, 20 are two-bedroom units and 197 are three-bedroom units. They are priced at HK$8,961 to HK$11,162 per square foot, while the going rates for second-hand flats in the area are HK$8,310 to HK$10,334. However, most of those flats are more than 20 years old.

More Singapore Residents Have Trouble Selling Their Flats The problem surfaced in the past month. At Ms Lee’s Meet-the-People Session, four residents asked for more time to sell their flats, reported Chinese evening daily Lianhe Wanbao. “They are mainly middle-aged and older, mostly looking to downsize their flat, but had been unable to sell their old flat to fund their new flat,” Ms Lee was quoted as saying. “Without money, how can they get the keys to their new flats?”

Is there an oversupply of flats? This was a question raised by Nee Soon GRC Member of Parliament Lee Bee Wah recently, after she noticed that many residents in her ward faced problems selling their homes. In a Facebook post, Ms Lee said residents have approached her at

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Meet-the-People Sessions, saying that their Build-To-Order (BTO) flats are ready but they are unable to find buyers for their current flats. “Is this (a) sign of oversupply of flats?” she asked.

She said there were residents who did not even have a single prospective buyer view their flat, adding that all she could do is to help them get an extension of time to sell their flat. Gan Thiam Poh, MP for Pasir RisPunggol GRC, also encountered two to three such cases over the past year and, on most occasions, he had been able to get them a six-month extension, Wanbao reported.

SLP International research head Nicholas Mak did not think there is an oversupply yet, but noted that demand has definitely softened, with flat prices expected to fall further. So, sellers have to price their flats ahead of the market, Mr Mak told My Paper. “From the buyer’s point of view, he would want to buy at next month’s price because by the time he gets hold of the flat, its price would have fallen more,” he said. Lee Lay Keng, DTZ’s regional head of research for South-east Asia, said restrictions placed on permanent residents and allowing singles to buy BTO flats also contributed to the drop in resale demand. “Buyers will tend to take their time to shop around, so sellers have to be more flexible with their pricing,” said Ms Lee.

The Mont Vert studio flats released yesterday range from 194 to 195 sqft and are priced between HK$1.94 million and HK$2.1 million each. After discounts, which add up to as much as 15 per cent, the lowest price for a studio flat is HK$1.65 million. “New flats selling for less than HK$2 million are almost impossible to find in Hong Kong,” said Louis Chan Wingkit, managing director of Centaline Property Agency’s residential department. The launch prices for Mont Vert were the lowest for a new project in Tai Po, industry observers said. Justin Chiu Kwok-hung, an executive director at Cheung Kong, said he was told by property agents that prices at the project were about 30 per cent below transaction prices for other new flats in the area. “The stunning low price is because of low land cost,” he said. “The site was converted from farmland for

“We offer more choices for our buyers and we have no plan to sell the large flats and the studio units as a bundle,” Chiu said. Buyers will get a 5 per cent discount and an extra 3.25 per cent reduction if payment is made in cash. A further 3 per cent discount is offered if the preliminary purchase agreement is signed by August 31. They will also be given a 3.75 per cent discount to offset the impact from the double stamp duty. The total discounts amount to 15 per cent. Factoring in the discounts, an 843 sqft flat on the first floor of Tower 6 will cost HK$5.82 million, or HK$6,909 per square foot. The units will be offered for official sale on July 26. The Sales and First-hand Residential Properties Authority (SRPA) criticised Cheung Kong last night for demanding that prospective buyers sign a “no viewing agreement” to be eligible for balloting for the flats. The SRPA said it considered the sales arrangement “a serious departure from the spirit of the ordinance which requires that vendors must make the residential property which a person intends to purchase available for viewing” before sale. Cheung Kong defended its move, saying phase one of the development shared the same entrance as the construction site for phase two. “Phase two has not secured an occupation permit, unlike phase one, and construction work is still going on inside the site,” it said. “Due to consideration of the safety of prospective buyers, it is not practical to open the project for public viewing.” It said shuttle buses between the show flats in Hung Hom and the Tai Po site would be arranged so that prospective buyers could view the project’s surroundings.

The currently under construction Elizabeth Quay in Perth Central Business District

Western Australia and Victoria have led the way in a table of the nation’s residential hotspots. According to the latest Population and Residential Building Hotspots report compiled by the Housing Industry Association (HIA), Victoria dominated the rankings, with the state accounting for 10 of the top 20 nationwide. Western Australia also had a strong year, with the state represented four times in the top 20 ranking. The ACT punched well above its weight, providing two hotspots in the national top 20. New South Wales also had two hotspots, a welcome development following the state’s absence from last year’s list, while Queensland and the Northern Territory each made one contribution to the top 20. The report defines a “hotspot” as a local area in which population growth exceeds the national rate (which was 1.6 per cent in the year to June 2012) and where the value of residential building work approved was in excess of $100 million. “Residential building activity is in decline in Victoria and the ACT, but is heading south from record levels. It is no surprise these two regions still feature prominently in the top 20 list,” HIA chief economist Harley Dale said. “WA, meanwhile, is seeing a recovery in new home building this year and four spots in the top 20 list provide an indication of the potential in the west.” Bonner in the ACT was Australia’s top building and population hotspot in 2011/2012, with $171 million

worth of residential building work approved and a population growth rate of 100 per cent, reflecting the relatively new history of this area. The second-placed hotspot was Forrestdale-Harrisdale-Piara Waters in WA, with $143 million worth of residential building work approved and a population growth rate of 23.5 per cent. Yanchep in WA ranked third where in 2011/2012 the value of residential building work approved was over $102 million and the population growth rate was 18.8 per cent. The top five list was rounded out by Baldivis in WA, followed by Tarneit in Victoria. “In total there are 68 hotspots identified and many more areas where population growth is relatively fast or where the value of approvals for new homes or larger alterations and additions is quite healthy,” Mr Dale said. “There is clearly considerable potential for residential construction work in Australia – for a start, six of Australia’s eight states and territories feature in the national top 20 hotspots list. “The ‘disconnect’ comes from an insufficient amount of this potential being realised this year in terms of actual residential construction activity. “With interest rates falling significantly, we would normally be seeing far healthier levels of activity and compelling evidence of a sustainable recovery, but neither of these outcomes is forthcoming in mid-2013.”

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Singaporeans Still Keen to Own Homes in Johor

Despite the Government’s plan to impose a Vehicle Entry Permit (VEP) fee for foreign vehicles entering Johor, Singaporeans are still keen on acquiring homes and commercial lots here, R&F Properties sales executive Chan Fook Kee said. He said the fee announcement did not affect Singaporeans’ demand for properties here. “The entry fee is still very much affordable for Singaporeans. They are still able to save since house prices here are lower than those across the border,” he said at the Star Property Fair in the Johor Baru City Square shopping complex on Monday. It was the last day of the threeday fair. Sunsuria Medini Sdn Bhd project consultant Datuk Jacky Ker Cherk Yee said the sales of commercial lots in Medini, just a few minutes drive from Pinewood Studios, were also up. He said about 10% of its buyers were Singaporeans.

Galeri Tropika Sdn Bhd senior sales consultant Darryl Goh Boon Leong said Singaporean homebuyers placed priority on the location of the property. “We offer service apartments in Genting Highlands, which not many Singaporeans are keen on. But we managed to generate interest from Malaysians planning to own a holiday home,” he said. Plenitude Tebrau Sdn Bhd senior sales executive William Sia said most Singaporeans who purchased homes in Desa Tebrau showed their interest in getting a place for their retirement. The fair saw participation from developers Naza TTDI Sdn Bhd, Hatten Group Sdn Bhd, KSL Holdings Bhd, Scientex Skudai Sdn Bhd, Tropicana Corporation Matrix Concepts Holdings Bhd, Encorp Bhd, Tropicana Danga Bay Sdn Bhd and Medini Iskandar Malaysia.

“Although most of our customers are locals, many Singaporeans are also very interested in starting up businesses here,” he added. Rei Properties project consultant Tan Kim Hoong said its newly developed Seri Austin Residence Apartment was a hit among Malaysians and Singaporeans. “Our apartments are catered for both the local and foreign market. At least 20% to 30% of our customers are Singaporeans,” he said.

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The entry fee is still very much affordable for Singaporeans. They are still able to save since house prices here are lower than those across the border

China House Price Fall Accelerates in July

China’s decline in property prices accelerated in July, an independent survey showed, adding to concerns over the sector, a key component of the world’s second-largest economy. The average price of a new home in 100 major cities was 10,835 yuan ($1,757) per square metre last month, down 0.81 percent from June, the China Index Academy (CIA) said. It was the third consecutive monthly decline and an acceleration from the falls of 0.50 percent in June and 0.32 percent in May, which was the first in nearly two years, according to CIA data. In July, prices dropped in 76 cities and rose in just 24, compared with 71 versus 29 in the previous month, it added. All of China’s 10 biggest cities posted month-on-month falls, with the average price in Beijing dropping 1.6 percent to 32,736 yuan per square metre. “Pressured by high inventory levels and elevated debt ratios, most property developers adopted a price cut strategy to boost sales,” said CIA, the research unit of real estate website operator Soufun. “On the demand side, consumers still expected the market to continue to go down, leading to low buying desire.” China has long sought to contain rising property prices, while also promising to increase

the supply of affordable housing, as surging costs stoke discontent among ordinary citizens unable to afford new homes. Market control measures have included restrictions on purchases of second and third homes, higher minimum downpayments and taxes in some cities on multiple and nonlocally owned homes. At the same time, local governments which make much of their income from land sales to developers have sought to find ways to loosen limits when property prices have fallen. The city of Hohhot in the northern region of Inner Mongolia in June became the first to drop restrictions on the purchase of second homes, and more municipalities have since followed suit. Woes in the huge but troubled property sector, which has been a key driver of Chinese growth, have sparked concerns over the prospects of the overall economy, which slowly bottomed out in the second quarter from a downturn in the January-March period. Year-on-year, prices in the surveyed cities rose 4.72 percent in July, 1.76 points lower than the annual rise in June and the seventh month of shrinking yearly increases, said CIA.

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Homing in on the Real House Price Tax consultants are already holding interviews and talks on the effects of the GST on the economy. Although the residential segment of the property market is GST-exempt, there are concerns about its impact. Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector president Siders Sittampalam advises caution. Net and gross price

NEWS

The banking and investment industry has a crucial role to play when it comes to property. Read about the most recent news and trends in this trade

This is an informal poll with property professionals, potential house buyers and a lender on the various issues in the property market today, including the BLR increase and lending based on gross/net selling prices and the effects on mortgage payments.

GST May Hit Home Sales our development plans to cater to current market demand and trends,” he said in an interview. On an overall basis, Izzaddin said the company expected a slight decline in margins with rising cost pressures but there would be a transitional period as the markets would focus more on costs and margins. He said UEM Sunrise, in anticipation of the coming GST, has made provisions to prepare for the impact as it believed that its financial impact would be reflected in the company’s future financial results.

Property developer, UEM Sunrise Berhad, expects demand for homes to taper off after the implementation of the goods and services tax (GST) on April 1 next year, especially in the second quarter. Executive director Datuk Izzaddin Idris said this was based on trends in

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countries that have implemented GST as there was a pullback in demand within the quarter of implementation. “We believe that in this challenging market environment, we are prepared to hold back launches if necessary. We are revisiting some of

Izzaddin said as residential properties were exempted from GST, the increase in input tax cannot be claimed by property developers or passed on to the home buyers for residential projects already launched and sold. He said most contractors or suppliers tendering for projects had already factored in potential cost increases pursuant to GST.

Izzaddin said it would pay to price new launches competitively and to offer the “right” products especially in a slower market to ensure good take-up rates. Internally, he said, UEM Sunrise would strive to be more nimble and was developing a new consciousness in which all employees understood the essential to keep costs low and find ways to realise savings throughout the organisation. UEM Sunrise, listed on the Main Market of Bursa Malaysia, is the flagship company for township and property development businesses of UEM Group Bhd and government investment arm Khazanah Nasional Bhd. UEM Sunrise’s core competencies are in macro township development, high-rise residential, commercial, retail and integrated developments, as well as property management and project and construction services.

And so the much-anticipated increase in the overnight policy rate (OPR) of 0.25% came. And with this increase, so will the base lending rate (BLR) on which mortgage rates are based, moving from the previous 6.6% to 6.85%. But this week’s increase in the BLR is not the only issue affecting the current property market. There are other concerns, starting with the most recent. According to an informal poll with four property professionals, this increase of 0.25% is “marginal and will not impact mortgage payments significantly.” Nevertheless, it is best not to let our guard down because any increase, however small, impacts one way or another. The OPR resembles a set of tentacles that reach far into the nooks and corners of the economy – and our pockets. The OPR is the rate at which banks lend to each other. Changes in the OPR invariably and inevitably are passed to consumers through a series of changes in the BLR of commercial banks and financial institutions, be it personal loans, mortgages and, hopefully, in the fixed deposit rates. Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng, on the current round of increase, says the Government will

“not want to spook the market.” Another round? So the increase will be “gradual”, he says. “Whether there will be another round later on depends on the economy,” Tang adds. To really comprehend the significance of this round of increase on the property market, it is pertinent to consider the various anti-speculation measures imposed this year. These various measures work together to impact the market. As it is, the various anti-speculation measures have already taken effect, as seen in the slower sales today. Savills Rahim & Co managing director Robert Ang says: “Sales have been slow since this year. This increase in BLR will make property investors think twice. It will be translated into a higher investment cost.” Ang says this marginal increase is “psychological”. There may be another round of increase before the end of the year, he adds. Insignificant an increase of 0.25% may be, a total increase of 0.5% over the longer term will be significant. Says a 40-year-old home buyer who is mulling a purchase: “I am not so bothered by this increase in BLR. I am more concerned about the goods and services tax (GST) which comes into effect next year. That will be far more painful for me, which is why I am thinking of buying now.”

“It will have an impact on prices and value. The GST is imposed on construction materials. The whole value chain has to bear it. When the price of the final product is calculated, for example in a developer’s launch, the developer will factor in the GST that he has paid into the launching price. There is no way a developer will absorb the GST that he has paid. He will not take a hair cut.” Siders says he expects developers to put launches on hold, which reduces supply. With the drop in supply and demand remaining the same, the price goes up. Besides the BLR and the GST, another current issue besetting the housing market are the marketing strategies developers employ which invariably raises the price of housing over the longer term. A property consultant who wants to remain anonymous says a package which comes with air-conditioners, electrical products like washing machines, refrigerators and “free” legal fees increases the overall house price. “This happens in the primary market when a buyer buys from the developer. The selling price is a package comprising a discount, electrical products and legal fees. The buyer thinks the legal fees are being absorbed by the developer. In reality, all these products and fees have already been factored into the price of the house,” he says. Based on two different examples, a condominium and a double-storey landed unit, the source says a closer examination of both reveals that the extras tend to push up prices.

“Buyers are happy when they are given a discount. But this discount is actually factored into the price of the house. In the sale and purchase agreement, the price of the house is stated as RM800,000, the gross price. He gets a loan based on this gross selling price. He will be paying less if the loan were to be based on the net selling price,” he says. Consider scenario 1 for a doublestorey house. The house is sold for RM800,000. If the free stuff and discount were to be removed, the net price is actually RM756,500, a difference of RM43,500. The monthly mortgage payment under a BLR of 6.6%-2.4% is RM3,369. Under the new rates, it is RM3,762, a difference of RM393. If one were to take a loan based on net selling price under the new rates, he will be paying RM206 less, that is RM3,556. Under scenario 2, the net selling price of the house is RM797,100, a reduction of RM43,900 from its launching price of RM841,000. The monthly mortgage payment is a difference of RM207. Over a 35-year loan tenure, these differences in BLR and gross/net selling price calculations will be considerable. The basis of selling a house based on gross price, instead of the net price, results in the next launch being priced higher. It has a snow-balling effect for subsequent launches.

There are other concerns, starting with the most recent. According to an informal poll with four property professionals, this increase of 0.25% is “marginal and will not impact mortgage payments significantly.”

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70% Loan Rejection Rate Among 1st Time Buyers

The tougher mortgage rules introduced by Bank Negara Malaysia will continue to negatively affect first-time home buyers, according to Datuk Othman Omar, Chief Executive Officer of Oxley Holdings (M) Sdn Bhd (OHSB). During his term as the General Manager at Selangor State Development Corp (PKNS), he pointed out that 70 percent of the housing loan applications of this group are rejected as eligibility is now based on net income rather than gross income previously. Unless the central bank changes its rules on first-timers, this trend is expected to continue throughout 2014, Othman predicted “Previously, first-time house buyers qualify for loans just above the border but now they do not qualify due to the loan-to-value ratio and the new credit assessment guidelines.” “The ruling punishes the first-time home buyers seeking affordable homes more compared to the highend property buyers,” he noted. As a result, property purchases are falling and developers are launching fewer products locally due to BNM’s existing measures, coupled with the Improvement Service Fund (ISF) in Selangor. Earlier this year, Petaling Jaya Mayor Datin Paduka Alinah Ahmad, stated that developers with projects in the city are required to contribute to the fund to lessen the impact of their new projects.

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ISF will be used by the Petaling Jaya City Council (MBPJ) to upgrade basic amenities such as roads so that there will be less traffic at these locations. To cope with these measures, many investors are looking at overseas real estate, especially in Australia and the United Kingdom, said Othman. “For properties in London, getting housing loans is still the main challenge for Malaysian investors, however, several local banks like Malayan Banking Bhd (Maybank) and CIMB Bank Bhd are offering housing loans and we see low rejection rate as most of these investors are high-networth individuals with good credit records.” In particular, London’s Royal Wharf project has seen strong interest from Malaysians who are keen on waterfront properties. The development consists of 3,400 apartments and townhouses, office space, retail as well as F&B spaces.

Unless the central bank changes its rules on firsttimers, this trend is expected to continue throughout 2014, Othman predicted

Maybank Had Toyed With Idea of Merger With RHB Cap

Malaysia’s largest banking group, Malayan Banking Bhd (Maybank), has resigned itself to waiting on the sidelines after being locked out of the negotiations for RHB Capital Bhd and Malaysia Building Society Bhd (MBSB).

Meanwhile, Reuters reported that investment banks were rushing to court Maybank with a range of merger and acquisition ideas, convinced that CIMB’s merger plans will push Malaysia’s top bank to do a deal of its own.

Sources said Maybank had expressed its interest to the authorities on RHB Cap two weeks ago, but has decided to stay out of the race for now due to the exclusivity agreement between the banks and CIMB Group.

“Everybody is pitching, but Maybank seems very relaxed to me,” said a Hong Kong-based investment banker who has spoken to Maybank, adding that it was reluctant to run the risk of overpaying for a bank just to retain its No. 1 ranking.

“Some two weeks ago, Maybank’s senior management had broached the subject of acquiring RHB Cap. The idea was even floated at Bank Negara level,” said a source. However, last week’s move by CIMB to start negotiations with RHB Cap and MBSB with the view of forming a large commercial bank and establishing a mega-Islamic bank has caught Maybank by surprise. Hence, banking officials said the Permodalan Nasional Bhdcontrolled bank was off the negotiations unless the deal did not happen. In 2011, Maybank and CIMB were in neck-and-neck negotiations to take over RHB Cap. But the price was not agreeable to the Aabar Group of Abu Dhabi, which had a 25% stake then. A transaction was done between the groups of companies within the Aabar Group, setting the benchmark price for RHB Cap at RM10.80 per share. The Aabar Group’s interest is now down to 21.43%, and it is said to be seeking some RM12 per share for its stake.

To bolster its position, Maybank is likely to weigh buying a domestic bank such as Public Bank Bhd, the nation’s No. 3 lender, or smaller banks such as Alliance Financial Group Bhd and Bank Islam Malaysia Bhd, banking sources and analysts said. It might also pursue overseas targets such as Thailand’s TMB Pcl, a bank that sources said it had expressed interest in before. Bankers declined to be identified, as discussions with Maybank were private. Asked about possible acquisitions, a Maybank spokeswoman declined to comment. Public Bank, Bank Islam and TMB declined to comment too. A spokeswoman for Alliance was not available for comment. Under the proposed merger between CIMB, RHB Cap and MBSB, the parties have 90 days exclusivity to come up with a proposal to be submitted to Bank Negara.

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Companies Urged to Prepare Early for GST Implementation especially for small and medium scale enterprises (SMEs). The government allocated RM150 million under the Budget 2014 to assist SMEs in purchasing the GST compliant accounting software or for upgrades, to be GST compliant. This includes encouraging SMEs to use an effective and efficient accounting system as well as increase the GST compliance rate. With the goods and services tax (GST) to be implemented on April 1, 2015, the clear message to all companies is to start preparing early. The sooner they start, particularly in incorporating GST-compliant software and training, they can avoid bottleneck situations most likely to happen closer to the implementation As the recently-concluded National GST Conference 2014 organised by Malaysia’s national news agency Bernama and Tax Advisory and Management Sdn Bhd (TAMS), showed, many companies and businesses are still vague about the GST. With the effective date of implementation less than nine months away, one can assume that time is running out, more so since most firms seem to be adopting a “waitand-see” mindset in preparing themselves. Obviously, the state of readiness among companies is far from satisfactory, but the lack of understanding is an unacceptable explanation for avoiding to prepare. Some participants admit being far from ready and certain companies said they are unwilling to make a major conversion ahead of the Budget 2015 announcement. It is true that concerted efforts at all levels, especially from the government and its agencies – particularly the Royal Malaysian Customs Department – is needed to ensure businesses are adequately prepared.

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But companies themselves need to play a more proactive role in seeking information and assistance. This is because the GST will affect all businesses, whether they sell goods or provide a service and their state of preparation matters. It will also impact all parts of operations starting from the IT system, procurement, sales and marketing, the price setting department, supplier and customer relationships to cash flow. TAMS’ executive director Yong Poh Chye said normally it takes about 18 months for companies to prepare for the GST, but they now had only nine months to do so. Time is running out and they have to redouble efforts to ensure their businesses are GST-compliant by the time of implementation, he said. Yong explained that companies needed to train their staff on the GST, acquire GST-compliant accounting software and commence trial runs by January 2015. At present, he said only 50 per cent of companies in the country were GST ready. “Many businesses are unaware that they need to upgrade their accounting software to comply with the GST,” Yong added. Such software upgrades cannot be done at the last minute, as extensive preparation and training is required. There is plenty of assistance being given by the government to ease this conversion process,

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Financial assistance is also provided by SME Corp Malaysia in the form of a GST eVoucher worth RM1,000. In addition to the allocation to purchase the GST software, the government is also providing training grants worth RM100 million to businesses to send their employees for training in 2014 and 2015 on the new tax regime.

Sara-Timur Hopes to Bolster Investor Confidence With Completion of Shopping Mall

“The slow response of surrounding developments is causing potential investors to take a wait-and-see approach. They want to see how the development takes off before making their move. This has affected us more than anything else, which is why we hope that with our first parcel [the super store, shopping mall] coming up soon, it will bolster the investors’ confidence,” chairman Datuk Dr Zawawi Ismail told The Edge Financial Daily.

Others incentives are a reduction in the corporate tax rate from 20 per cent to 19 per cent from 2016 for small businesses and tax deduction for secretarial fees and tax filing fee from 2015.

According to Dr Zawawi there are still many developments coming up in other areas of Kota Baru which will help increase interest.

The GST at six per cent is aimed at enhancing the efficiency of the tax collection system.

“We were able to build 620sq ft single-storey terrace houses in Negri Sembilan for RM14,600 per unit using building methods similar to those in the UK,” he said.

Sara-Timur Urban Development Sdn Bhd is banking on the completion of its first parcel to bolster investor confidence for its RM1.2 billion landmark development — Lagenda Tunjong in Kota Baru, Kelantan.

He said that with the piling work for the development already started, the infrastructure should be seen in about six months’ time.

SMEs with annual sales of less than RM500,000 are advised to evaluate and volunteer to be in the GST system, which will bring many advantages over the longer term.

blame detractors in those days because the public perception then was that anything cheaper was considered inferior,” he said. Perceptions changed after Perunding ZNA won first prize in the Prime Minister’s Award in the Malaysian National Low-Cost Housing Competition in 1995, beating more established competitors.

This includes an accelerated capital allowance until the year of assessment 2015 for the cost of purchasing ICT equipment and software, tax deduction on expenses incurred for training in accounting and ICT related to GST for the years of assessment 2014 and 2015.

It is estimated that almost 25 per cent of SMEs (around 160,000 businesses) will find themselves embracing the GST at the registration threshold value set at above RM500,000 a year.

Value Engineering Consultants Vital in Building Better and Cheaper Projects

Inspired by the popular KLCC Park, Lagenda Tunjong is a fully-integrated development set on a 40-acre (16.2ha) enclave and consists of residential units as well as a two-tier plaza, the CheSiti Village Mall, Lagenda Galleria and a Giant superstore.

“The upcoming developments show that people still want development in Kota Baru which is a good thing. Apart from Tesco, Aeon is also set to appear ... groundworks for that have already started.” Lagenda Tunjong will be developed in seven phases over the next five years. The completion of the development is set to spur economic growth and increase employment opportunities for the locals. “Embedded in our vision for this new urban development is bringing the Lagenda Tunjong experience into one place and stimulating economic growth,” said Dr Zawawi. Situated less than 10km from the airport, the development also provides easy accessibility for tourists and locals alike.

During World War II, General Electric Company purchase engineer Lawrence D. Miles was assigned to deal with material shortages when production of turbochargers of B-24 bombers had to increase from 50 units per week to 1,000 units per week. Miles, who is recognised as the “father of value analysis and value engineering”, developed a systematic methodology that reduced unnecessary costs by identifying and separating costs that had no impact on customers. Value engineering (VE), as the methodology came to be known, is a powerful approach that can be applied in various industries and Perunding ZNA (Asia) Sdn Bhd uses it for civil, structural and geotechnical consultancy works. The consultancy company, which began in a rented room in Old Klang Road, Kuala Lumpur in 1992, was set up to use VE so construction projects could be designed and built while reducing cost without compromising safety. Founder and executive director Zulhkiple A. Bakar said his interest in the field began when he worked in the engineering design section of the Public Works Department (JKR). “I noticed that most of the engineering designs were conservative, wasteful and sometimes unsafe. I started questioning the conventional wisdom but, working within the government

hierarchy, it was not easy to introduce radical changes in the design approach,” Zulhkiple said. This prompted him to carry out his own research and, with the guidance of his former lecturer from Liverpool Polytechnic (now known as John Moores University) in the UK, realised that even in the 1980s, most projects in Malaysia could be optimised while maintaining or even increasing safety levels. By using VE, he said, construction costs could be reduced as much as 20%. For example, a 50-storey mixed development could see its construction costs reduced from RM750 million to RM650 million. With considerable savings at stake, it is no surprise that the Economic Planning Unit (EPU) of the Prime Minister’s Department has stipulated that all public service projects costing more than RM50mil will require value management analysis, which includes VE, to ensure value for money. Benefit of the doubt When Zulhkiple first started out, he used savings from his salary as a government engineer and also fees earned from his part-time design work. However, he was surrounded by people who were sceptical about his idea of helping housing developers reduce construction costs by optimising the foundation and structural design. “I was only a junior JKR engineer when I left the government. I don’t

Even today almost all residential houses in the UK are built using load-bearing brick walls and the developers do not use the expensive reinforced concrete structures used in Malaysia. “Today, we can still see some examples of load-bearing brick wall construction in the Sultan Abdul Samad Building and the Kuala Lumpur Railway Station built during British colonial rule in Malaya,” he said. While the technique helps reduce foundation and structural construction costs, he explained that the steel and cement industries market themselves as more modern materials. “Our local universities also taught engineers to design their projects with concrete and steel, which has led our construction industry to where it is now,” he said. Apart from public perception, some of the early challenges that his company faced included the culture of secrecy where companies, including listed companies and government-linked companies, did not want to reveal construction details to an external party. “They prefer to keep certain things like costing a private affair, which is understandable, because sometimes their strategic operations are not based on being cost efficient alone,” he said. However, he said developers are slowly opening up to ideas and several large private and public-listed property developers are engaging the company’s services to help

reduce construction costs. The human touch The company long since left the rented room behind and now occupies a 4,000 sq ft office in Petaling Jaya, housing 40 employees. Zulhkiple explained that clients can consult the team for an audit. From there, his team works out how the client can optimise designs. “If the client agrees, we sign a contract with the client where we share a percentage of the savings,” he said. He cautioned that VE involves a lot of study and skills before using computerisation to calculate the materials needed for a project. He explained the situation using the example of the number of beams in a building. “If the engineer over-engineers the design and uses too many beams, you would end up allocating more steel than needed,” he said. Over the years, Zulhkiple has created a field manual of observations and construction wisdom that can be shared with the team. He said it was a “live” document that continues to evolve and he has been invited to share his knowledge with various universities, the latest being the National Defense University of Malaysia. “I was also invited to assist the university in introducing VE as part of its engineering curriculum. This is a very good move to train a new breed of cost-conscious engineers,” he said.

Today, we can still see some examples of load-bearing brick wall construction in the Sultan Abdul Samad Building and the Kuala Lumpur Railway Station built during British colonial rule in Malaya

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APARTMENT FOR SALE

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*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

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/// Property Listing

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

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TERRACE / LINK HOUSE FOR SALE

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*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

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CONDOMINIUM FOR SALE

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*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

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BUNGALOW / VILLA FOR SALE

*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

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*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my www.PropertyHunter.com.my

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SEMI-DETACHED HOUSE FOR SALE

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*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

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*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

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SOHO / SOVO FOR SALE

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RETAIL SPACE FOR SALE

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OFFICE SPACE FOR SALE

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WAREHOUSE FOR SALE

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SERVICES RESIDENCE FOR SALE

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INDUSTRIAL FOR SALE

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*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

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APARTMENT FOR RENT

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*Listing are accurate at the time of print. Kindly contact the respective agents for updates. For more real estate listings, please visit www.propertyhunter.com.my

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