Property Hunter Magazine Issue 63 - February 2015 by Victor

Time Your Property Purchase Timing in Everything When Buying In 2015

COVER STORY

HOT TOPIC

INVESTING In Student FEB

2015

ISSUE 63 RM8.90

Accommodation

New Project Raises Bina Puri Order Book to RM2.01 Billion SHAREDA to Showcase Sabah Properties in West Malaysia The Sabahan Migration And Education Destination

AUSTRALIA Property Market Outlook 2015

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COVER STORY | Tropicana Metropark

A Sustainable Haven in the Heart of Subang Jaya Scan For EXTRA Content

Mention the word ‘sustainable’ and the colour green naturally comes into mind. With a 9.2 acre central park, a man-made lake featuring a bio-filtration system to ward off odours and pests, strategically placed flora and fauna to create a more natural ventilation system, Tropicana Metropark has all the makings of a ‘green’ inspired development gem that’s worthy of recognition.

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Dedicated direct access to Tropicana Metropark

Paloma Courtyard Villas

Paloma Family Pavilion

Paloma Sky Gym

01 03

ocated in the upscale township of Subang Jaya, Tropicana’s latest endeavour in the area intends to create a pleasant orchestra of comfort, serenity and convenience, brought together by a myriad of features and facilities that compliments the lifestyle of those wanting to live in the Klang Valley. Components comprising of townhouses, serviced apartments, proposed shop fronts, business suites, SOHO units, office towers, a shopping mall, a medical centre and an education hub with a renowned international school make up for this development which has an estimated GDV of RM6.3 billion.

04 options in two residential towers – studio, two and threebedroom units with built-up areas ranging from 599 to 1,288 square feet. The second phase, Paloma Serviced Residences has a GDV of RM465 million and comprises two serviced residential towers, which offers a total of 587 units. Paloma Residences has already achieved more than 70% take-up. Tropicana Metropark offers a diverse range of units to suit different profiles from single professionals to young couples and families. These are augmented in the form of the built-up space ranging from 609 sq ft to 1309 sq ft.

Launched in 2013, the first phase of Tropicana Metropark – Pandora Serviced Residences had a successful take-up rate of over 96%. With a GDV of RM365 million, the 627 units in Pandora Serviced Residences offer three design

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COVER STORY | Tropicana Metropark

03 EXCLUSIVELY CONNECTED

9.2 acre Central Park

Al Fresco

Paloma Infinity Pool

THE CENTRAL PARK

Dubbed as the ‘Green Lung’ of Tropicana Metropark, the central park is a centralised element that adds to the ‘green’ inspired lifestyle with this development. Sprawling across nine over acres with a 750 metre linear lake, the central park’s design is to create a new living experience where one can wake up and come home to an opulent embrace of nature and serenity. The central park’s linear lake also houses a bio-filtration system, made for emitting a more eco-friendly habitat and a healthy overall open environment. The central park also plays host to carefully selected flora and fauna which creates a large and spacious ambience, resonating of European and Western inspired parks. The park also serves to be a platform for encouraging the development to be a more thriving and close knitted community through other features of the park such as a dedicated cycling and running track, a designated area for flea markets and benches that are strategically located throughout the park. Trees are also planted in areas that promote security, thus eliminating any shaded spots.

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The need for connectivity is ever more present in this day and age. Tropicana has embedded in the Group’s signature Development DNA. Starting with a dedicated flyover that is currently being constructed which gives residents exclusive access to the Federal Highway (set to be completed in 2016), Tropicana Metropark is also connected to major networks and access roads which include the Federal Highway, the New Klang Valley Expressway (NKVE), the Damansara-Puchong Highway (LDP), the Shah Alam Highway, the NorthSouth Central Link Highway, the New Pantai Expressway and the South Klang Valley Expressway (SKVE). Tropicana Metropark is also situated within close proximity to neighbouring townships such as Petaling Jaya, Shah Alam, Klang and Puchong.

01 1.

GEMS International

GEMS International School Entrance

Tropicana Metropark Waterfront

CULTURED AT EVERY CORNER

Tropicana Metropark not only offers a unique and sustainable living environment, but also ensures that the developer’s signature development DNA is augmented throughout this address. With plans to integrate retail, F&B, SOHO units and facilities that would suit any budding city dweller and families alike, Tropicana Metropark plays host to the upcoming build of the renowned GEMS International School. The school will offer world-class teaching facilities and an extensive curriculum that rivals other educational providers in on a 5-acre land dedicated to the institution. The school will be completed in 2017, with the first intake expected to begin in September 2017, accommodating up to 2,400 local and international students aged 3 to 18.

PALOMA…LIVING WITH AN IDYLLIC DISTINCTION Located along the stretch of the central park’s liner lake sits 16 exclusive duplex courtyard villas. . The luxury residences, in its low-rise glory are meticulously crafted with two design options. The Garden Villas feature a courtyard within each unit that brings light into internal living spaces. Other special features include a spacious terrace where one can bask in scenic and relaxing views of the central park. The second design option, dubbed the ‘Sky Villas’ also offer spectacular panoramic views over the central park on a private roof terrace garden. An ideal setting for gatherings, these villas are situated in a strategic open environment with the sky as a suitable backdrop, no matter the occasion.

To discover the world of Tropicana Metropark, please visit us at our Property Gallery in Subang Jaya or contact us at

+603 5636 6888 / 018 379 2088 www.tropicanametropark.com.my

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CO N TE N T ISSUE 63 06

Cover Story Tropicana Metropark: A Sustainable Haven in the Heart of Subang Jaya

Hot Topic Investing in Student Accommodation

Sabah Property News

Hot Topic Sabahan Migration And Education Destination

Sarawak Property News

Feature Property Showcase Bandar Utama

Hot Topic Australia Property Market Outlook 2015

Feature Property Showcase Greenland Group

Contributor: Chris Tan The Role Of A Lawyer In A Property Transaction

West Malaysia Property News

Contributor: Charles Tan In Search Of Perth

International Property News

Contributor: Encoh Khoo Investing In Western Australia

Banking and Investment News

Coffee Talk: kopiandproperty.com • Kota Kinabalu Property Market Shortages Soon? • Soaring And Tumbling After GST Like Australia? Not Likely

Sabah Property Listing

Sarawak Property Listing

04 14 Sneak Peek of March 2015 Issue

HOT TOPIC Sabah & Peninsular Property Development Line-Up Featuring developers participating in the PH Kota Kinabalu Expo in March 2015. First Home Buyers - Is Generation Y’s Future at Stake? A survey of today’s Generation-Y on their ability to be a first time home buyer. Can they buy a house before turning 30? What’s stopping them?

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HOT TOPIC | Investing in Student Accommodation

INVESTING IN

Student Accommodation

Student accommodation has changed in the past few years. Gone are the rudimentary digs with bare bones furnishings and utilities. Todayâ&#x20AC;&#x2122;s accommodation commands a much higher standard with some even located within buildings complete with gyms, cafes and other lifestyle comforts.

tudent housing and investment in more matured markets like the UK, USA and Australia have ballooned from a fringe investment some ten years ago to being a global market worth billions today.

According to the United Nations Educational, Scientific and Cultural Organisation, the boom in undergraduate

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study has resulted in the number of people entering higher education rising from 19 per cent to 29 per cent over the past decade. All estimates suggest that this growth will continue, albeit at a slower pace In the book Making a Difference: Australian International Education (2012), contributor and higher education consultant Bob Goddard reckons that the number of

These numbers point to a potentially lucrative property investment market in student accommodation. While student property has performed well in recent years, there is no guarantee this will continue. Rental income is not guaranteed and yields can vary so it is essential to do proper research when choosing which location to buy and investment strategy. The Knight Frank Student Property Index shows that total returns from student accommodation outperformed other property asset classes in the year to September 2013. This has been the case since 2011. According to the Knight Franck Student Property Report 2014, the attraction of the student accommodation sector in the UK has been driven by the story of structural undersupply and positive rental growth

every year throughout the economic downturn. It is forecast that this contra cyclical dynamic will remain the driving force behind investment into the medium term. The structural undersupply remains in all key university markets and this will ensure positive rental growth remains a defining characteristic. The stability and performance combined with the improvement in profile of the sector have established student accommodation as an asset class in its own right.

Weighing The Pros And Cons

As with all investment decisions, itâ&#x20AC;&#x2122;s important to carefully weigh up the pros and cons before making a decision. Investing in student accommodation whether in Malaysia or overseas will entail a certain number of considerations that you have to take into account.

â&#x20AC;&#x153;

students around the globe enrolled in higher education will reach 262 million by 2025, up from 178 million in 2010.

Investing in student accommodation whether in Malaysia or overseas will entail a certain number of considerations that you have to take into account.

Private and institutional investors have been attracted to student property as an asset class due to the relatively high

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HOT TOPIC | Investing in Student Accommodation

yields on offer, which look set to continue in the foreseeable future.

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GRRs, also known as leasebacks, buy-to-let, cash back or own-for-free are resultant of developers’ creativity in wooing investors with a GRR on yetto-be-built properties. According to the plan, developers will agree to pay buyers rentals ranging from 8% to 12% gross or net returns of the purchase price or a proportion of the purchase price for a stipulated period.

The bottom line on student accommodation as a capital city property investment option is that it is not necessarily a bad option. But the worst reason to go for it is that you can’t afford anything better

Paul Khong, executive director of CB Richard Ellis (Malaysia) Sdn. Bhd.,however cautions investors to clearly understand the incentive structure of GRR schemes such as the actual legal entity that is extending the guarantee and the credibility rating of the guarantor. He advises a thorough analysis of the developer or the party giving the GRR, to ensure it is reputable and demonstrates the ability to withstand a continuous payment of guaranteed rentals over agreed periods. One of the greatest concerns about student accommodation is the limited scope for capital growth and the difficulty encountered when trying to sell these apartments. In an article published in www.lifestyle.com.au, writer Veronica Morgan commented that both these problems stem from the one main cause: they have a lack of owner occupier appeal. She says that owner occupiers are the property buyers who push up prices, largely due to their emotional involvement. Owner occupiers are not interested in buying student accommodation for the obvious reason that they can’t live in the property.

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The article also cited the importance of taking into account the buyer’s current stage of life as well as goals for the future in coming up with investment strategies. “Student accommodation may be right if you are heading into retirement and want to minimize your borrowings (or) simply want an income. But it could be the wrong solution if you are seeking to reduce your tax bill and build equity while you are in your prime earning years.” “The bottom line on student accommodation as a capital city property investment option is that it is not necessarily a bad option. But the worst reason to go for it is that you can’t afford anything better.” If all you can afford to buy is student accommodation, then you should weigh in the pros and cons in more detail and consider the bigger picture. Making a checklist on the pros and cons to investing in student accommodation might help

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in the decision process. Michael Conolly, Head of McGrath Network Property Management, Australia gave a list of what to consider:

Pros 1.

Ability to achieve a high yield.

Strong demand as universities expand the number of places on offer and interest from overseas grows.

Many students are subsidized by their parents, with some able to pay six months in advance, therefore reducing the arrears risk .

Many universities run programs to help students find accommodation.

Cons 1.

In student accommodation blocks, the onsite management fees can be expensive and will eat into your returns. It’s critically important that you check out all the fees associated with buying in a student building before purchasing

While there is strong demand in university areas, you might find turnover is high. As students form new friendships, they tend to change their living arrangements

You might find maintenance costly, as younger renters can have a lesser sense of responsibility

When you purchase a normal residential property in a known university area, there can be a stigma attached. If a suburb is known as a ‘student suburb’, this might be off-putting to future buyers and this will impact your capital growth

There can be language barriers with overseas students. More than 35 per cent of overseas students in Australia today are from China or India, according to the Immigration Department. Overseas students might be unfamiliar with Australian law and their obligations as tenants

Students love to party – and why not, these are some of the best years of their lives so there’s plenty to celebrate! But this isn’t so great for investors, who might find themselves on the black list of neighbours due to noise issues!

Some items in this list might not be relevant to you or your area but by and large, it covers most

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The properties are already very expensive there but paying rental is likely to be almost the same if not more. Thus, if my kids are studying there, of course I would buy a property there. That’s why Malaysians are huge buyers of UK and Australian properties

of the important elements related to student accommodation investment.

Investing Overseas

If you are already thinking of investing in student accommodation, your next option would be to decide on whether to invest overseas or locally, as a buyer-occupier or buy-to-let. Local property analyst Charles Tan opined that investing in student accommodation overseas would be a sure thing for him. “Yes, I would do it if my kids are studying there,” he explainss. “I would not want to pay rental. Once they have graduated, I can sell if there’s profit in it or get an agent to rent out for me. UK or Australia, both are matured markets and the agents are used to all these rental arrangements. “The properties are already very expensive there but paying rental is likely to be almost the same if not more. Thus, if my kids are studying there, of course I would buy a property there. That’s why Malaysians are huge buyers of UK and Australian properties.” Charles adds that even though investing in student accommodation can be an attractive option, he would still do further research before making a final decision. “If buying for investment, I would ask myself a few questions first. What is the institution they are talking about? Is it considered a good university? If it is an unknown college / university or not considered a good school when I search online, I would immediately say ‘no’ to the

investment scheme no matter how attractive it would be,” he says. Project design and surrounding facilities such as other schools and malls nearby would also affect his decision. “Students do not normally like to stay in places where there’s nothing for them to do after school.”

Investing Locally

If the boom in student accommodation investment in the UK and Australia are anything to go by, investors in Malaysia would now be well prepared to take advantage of the huge potential that already exist in the local market. Purpose-built student accommodation can already be found in several university towns in Malaysia such as Kampar, Perak where Masa Handal Sdn Bhd has just completed its 2,000-unit Kampus West City project in 2014. About 95% of the units with an average floor area of 323 sqft and currently priced at RM90,000 has been sold to date. Kampar is home to the Universiti Tunku Abdul Rahman campus with a student population of 15,000 and with no on-campus housing, the need for student accommodation will always be present. Masa Handal has already embarked on a 2-tower condominium project with 360 units ranging from 713 sq ft to 856 sq ft selling from RM188,000 onwards and targeted for both the more affluent student community and local residents. Meanwhile, the HSK Capital Group launched Jazz Residence in 2013 which consists of 174 units of service apartments in Ara Damansara. It comes complete with swimming pool, gymnasium,

“

Photo Credit: Kampus West City, Kampar

multi-purpose hall and 24-hours security, with easy access to public transportation which is an essential component for student accommodation. “Jazz Residences is mainly aimed to accommodate students of SEGi College in Subang,” Lim Ching Choy, the group chief executive officer of HCK Capital explained in a media report, noting that currently, SEGi College in Subang has a total student population of 28,000. Through an investment scheme called Property, Education Partnership Invest (PEPinvest) and with the help of HCK Capital’s property management team, potential investors would able to rent out their property at Jazz Residences to students of SEGi or nearby universities. “After property investors buy from us, they could opt for us to rent it back from them for three periods of three year tenant. Every unit apartment has a minimum rental back guarantee of six per cent per annum. “Within the first six years, the students pay the monthly installment for them, through the rental fees,” he added. Malaysia is shaping up to be a magnet for foreign students and the potential for investment in student accommodation is evident. But as all reports suggest, consult a professional property manager first to make sure it is the right investment for you.

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SABAH PROPERTY NEWS

SABAH

PROPERTY NEWS

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

New Project Raises Bina Puri Order Book To RM 2.01 Billion external roundabout for proposed traffic diversion and fencing. Construction is expected to be completed in 16 months. Including the latest award, the group has secured RM760 million in new projects in 2014.

New State Administrative Complex (right) under construction at Teluk Likas

onstruction firm Bina Puri Holdings Bhd has secured an RM64.99 million project in Sabah, bringing its total unbuilt order book to RM2.01 billion. In a filing with Bursa Malaysia, the company said its unit Bina Puri Sdn Bhd had accepted the letter of

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award from Jabatan Kerjaraya Sabah to undertake additional works for the proposed new Sabah State Administrative Complex in Teluk Likas, Sabah, under the Federal Government’s facilitation fund. The contract comprises upgrading works to an existing seawall, an

The new proposed Sabah State Administrative Complex is located in the vicinity of Sabah’s most prominent landmark, the Sabah Foundation Building. The new Sabah State Administrative Complex covers 15 acres of land, sited along the shoreline overlooking the South China Sea. The facility includes a 30-storey office tower and two blocks of ninestorey buildings, making it one of the tallest structures in Sabah.

The tower, which is currently 76% complete, will also house the Sabah Chief Minister’s office, together with his Cabinet Ministers.

Bina Puri was awarded the construction of the Sabah State Administrative Complex valued at RM388.7 million in July 2011.

Potential Property Hotspots In Malaysia For 2015

Vinci To Complete Jesselton Residence Project In Just 1.5 Years

roperty developer Jesselton Group has awarded Francebased Vinci Construction Grands Projects the contract to develop a 125,000 sq m mixed-use development in Kota Kinabalu.

Real estate

eal estate in a number of developing areas in the Klang Valley has risen in popularity despite the economic uncertainties in recent years. Although there were many successful launches with units snapped up within a weekend or two, they did not indicate the growth of a developing hotspot, says C H Williams Talhar & Wong Sdn Bhd managing director Foo Gee Jen. There had been instances of people buying on “herd instinct” similar to the stock market, where prices were already too high or when sales were driven by rumours or market manipulation.

“Sometimes, the market activity is due to genuine market forces but it is difficult to be certain,” he says. “Rather, it is the fundamentals that drive the upcoming of real estate in an area.” PA International Property Consultants (KL) Sdn Bhd head of agency Wendy Tong points to infrastructure development as a key factor in bolstering property growth.

“Developments near the upcoming light rail transit (LRT) and mass rapid transit (MRT) lines are likely to comprise stratified residential and smaller mixed-use components,” she says. “As accessibility is a big issue for buyers and investors, the mantra seems to be to choose properties where train stations and highways are built,” Malaysian Institute of Estate Agents president Siva Shankar says. However, there are exceptions to the general “rule”, he adds, where some hotspots do not seem to be location-driven. “We have seen many locations that were previously perceived as “disconnected”, such as Bangsar South - previously Kampung Kerinchi - but developers have transformed it into an urban and lively locale. This has changed perceptions as to its attractiveness as a hotspot,” he says. Foo says well-planned developments will be selfsustaining as they are developed with a clear and solid objective. Foo says such localities will sell fast with facilities and amenities such as education, healthcare, leisure, entertainment and security.

The project will include a seven-storey podium over two underground levels which will feature a 20,000 sq m shopping centre and over 900 parking spaces, as well as a complex that is made up of three 20-storey residential buildings with a total of 333 condominium units. Vinci will only have more than one and a half year to build the development since handover of the project is set for July 2016. In a statement, Vinci revealed that the value of the contract, which does not include foundations and underground levels, is €70 million (RM293.57 million). In Malaysia, Vinci Construction Grands Projets Sdn Bhd has undertaken prominent flagship projects selectively in Kuala Lumpur such as the Berjaya Times Square and Berjaya Central Park which incorporates the Ritz Carlton Residences as well as the offices for Bangkok Bank. In Kota Kinabalu, Vinci is constructing the Menara Hap Seng in the CBD as well.

Executive Chairman of Jesselton Waterfront Holdings and Palikota Sdn Bhd, Datuk David Chu expressed confidence that with the appointment and award of Vinci Construction Grands Projets Sdn Bhd as the main contractor for Jesselton Residences, purchasers will be assured of quality finishes and construction quality given Vinci’s international reputation as a global contractor with its financial and technical expertise in delivering and completing their projects on time and within the project budgets. Chu adds that the value of the condominium units would appreciate in value once Jesselton Residences was completed due to its location as well as being the highest structure at the waterfront. “We are still selling the condominium units at the old price of around RM700 psf while other developments in the central business district are selling at more than RM700 or RM800 psf,” he said. He added that Jesselton Residences is now 80 per cent sold, mostly to locals but also investors from Sarawak, Kuala Lumpur, China, Singapore, Taiwan, Korea, Indonesia and Brunei.

From left; Bertrand Renouf, Technical Manager of Vinci, Michel Oliveres, Vinci’s Director for South East Asia & China, Jean Luc Brial, CEO of Vinci Construction Grands Projects, Datuk David Chu, Executive Chairman of Jesselton Residences, Denis Mathern, Vinci’s Director of Business Development, Kevin Thong, General Manager of Jesselton Residences

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SABAH PROPERTY NEWS

Property Hunter To Continue Collaboration With Habitat For Humanity with expertise in various fields to facilitate the design, construction and delivery of houses to those who qualify. Each house costs an average of RM30,000 to build with funds received in cash and in kind from generous corporate sponsors. Elson Kho, director of Property Hunter says that they are honoured to be supporting such a noble initiative by the locals.

Staff of Habitat For Humanity presenting mementoes of appreciation to Property Hunter team led by Elson Kho (3rd left)

roperty Hunter has been supporting Habitat for Humanity as part of its CSR (corporate social responsibility) since 2013 through its series of property expos in East Malaysia. This collaboration will continue with the Property Hunter 2015 expo series which will kick off this March in Kota Kinabalu and continue to Kuching, Miri, Sandakan and Tawau. Habitat for Humanity will be included in the expos’ online and print media campaign to enhance awareness of Habitat for Humanity and its noble goals. They will also

have a presence at the expos to disseminate information on their goals and objectives and hopefully raise some much needed funds for their work.

Thomas James, the organisation’s affiliate executive officer, says that they will be targeting to recruit more local volunteers to help out this year to make up for the shortfall.

In conjunction with its 10th anniversary, Habitat for Humanity Kota Kinabalu is planning to build ten houses for the underprivileged in 2015. However, with the economic downturn in many countries worldwide, they are expecting fewer international volunteers to sign up to help them with the construction process.

“Most of our volunteers would spend one to two weeks with us, either working on site or in the administrative office. Their contribution in whichever way is most welcomed as we are short of staff to manage our operations.”

“We admire the work and spirit of the Habitat for Humanity team in Sabah, that despite the many challenges they face, they continue to strive to provide a roof over some of the less fortunate families in Sabah,” he adds. “We will continue to promote their initiative in Sabah and help to raise more awareness about their work and needs via all of our media platforms. We believe with the collective effort of the public, we can all come together and make a positive impact in the lives of others.”

Except for three full-time staff, Habitat for Humanity‘s office is managed by a team of volunteers

Shareda To Showcase Sabah Properties In West Malaysia In 2015

Datuk Francis Goh, President of SHAREDA

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According to Datuk Goh, the entry cost for investors in Kuala Lumpur

is high, ranging frfom RM1000 to RM1500 per sq ft. In Kota Kinabalu, the price per square feet in still kept at RM400 to RM500 at locations within 8km radius of the city. Therefore, properties in Sabah should appear as a very affordable investment option for investors in West Malaysia.

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“Is it a chance for East Malaysian products to be sold in West Malaysia, especially in Kuala Lumpur.

“

Datuk Francis Goh, President of SHAREDA, has revealed that SHAREDA has decided to venture into West Malaysia by bringing local projects over to be sold in the Klang Valley. “Is it a chance for East Malaysian products to be sold in West Malaysia, especially in Kuala Lumpur.

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HOT TOPIC | Sabahan Migration And Education Destination

SABAHAN MIGRATION

EDUCATION DESTINATION

IS (UNESCO Institute of Statistics) data on the mobility of students sheds light on the shifting demand for higher education, particularly in the developing world. The number of students pursuing studies abroad continues to surge as higher education institutions around the world vie for the best and brightest minds.

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So what is behind this increase? Steve Woodfield, a senior researcher in higher education policy at the UK’s Kingston University, suggests it’s simply down to students looking for a better education. “There is continuing unmet demand for good quality higher-education in many countries, particularly in Asia, combined with a willingness amongst potential students to travel and to pay for high-quality overseas study.”

More students are studying abroad today and it is predicted that the figure could rise to 7 million by 2020. Data released by the OECD (an international trade and research organization) revealed that in 2010, 4.1 million students were studying abroad. This is a rise of 0.4 million since 2009, and a truly stunning increase of 99% since 2000.

Elizabeth Shepherd, Research Director for the British Council’s Education Intelligence, agrees. “There are an increasing number of relevant aged young people whose families have an increasing disposable income that they are willing to spend on higher education overseas to give their children an opportunity to progress in their future careers. “Students are looking for a ‘value add’, beyond the qualification they

obtain to help them stand out from the crowd when it comes to employment.” Jasmine Leong, Executive Director of IEC Sdn Bhd, a one-stop education centre in Kota Kinabalu that assists students with overseas university placement concurs saying that better environment, experiencing a different way of life and culture, and more course options and choices are the main reasons why students in Sabah consider studying overseas.

A long history of cultural, political and administrative influence has had a significant impact on where Sabah students choose to further their studies. “Australia is still the most popular destination due to proximity and familiarity (friends and relatives could have emigrated there, for example). The UK comes a close second now and then the rest are USA, Canada, and New Zealand in that order,” says Jasmine. “For Australia, the main cities such as Melbourne, Perth and Brisbane are still top choices. For the UK, the location does not concern them as much as the UK has easy access by train. Usually students will want to know the university’s proximity to London. This would sway their choices depending on their preference.” Chief Executive Officer Loh Boon Eng of Partner Australia,a licensed employment agent that provides assistance for people who want to work in Australia,was quoted in an article saying there is already a large community of Malaysians living in Australia as Permanent Residents or Australian citizens. A large number of Sabahans, especially from Kota Kinabalu are concentrated in Perth. Many have studied there before and appreciate the quality of life, education, health care services and more. Similarities in terms of education structure also make it easier for new students to assimilate into the local education system. Among other factors that make Perth the preferred education destination city for Sabahans is its accessibility. It takes less than six hours to fly direct from Kota

Kinabalu to Perth on the twice weekly flights operated by Malaysia Airlines. Both cities share the same time zone so keeping in touch with family and friends back home is very convenient and helps smoothen the transition phase into a new community and lifestyle.

reach a goal of enrolling 150,000 international students by 2015. This surge in numbers will certainly impact the flow of Malaysian students going abroad to study in the future and potentially reverse the pattern as Malaysia continues to host a larger number of international students.

NEW FORMS OF INTERNATIONAL STUDY

POST-STUDY OPPORTUNITIES

The migration pattern and international cities of choice have remained relatively consistent but recent developments within Malaysia have affected the number of Sabahan students studying abroad.

Although the availability of university twinning programmes within Malaysia have affected the numbers going directly overseas significantly which is understandable, there are still students who will opt to forego the twinning programmes.

“Over the last five to ten years, the percentage has definitely dropped as overseas universities are now facing stiff competition with local providers and private colleges which are setting up within Malaysia such as the new Heriot-Watt University which opened just a year ago, and University of Reading scheduled to open in 2015. Not to mention Curtin, Swinburne, Monash and Nottingham University which all set up about 10 years ago and are all Australian /UK university branch campuses.

“There are still students who see the benefits of going overseas as university experience should not just be what degree you obtained but the environment which you studied in. This is just as important a factor when choosing your university, “says Jasmine.

“They have chosen Malaysia as the location for their branch campus, much to the advantage of our Malaysian students. Imagine obtaining a UK / Australian degree but at half the cost! Students can even opt to articulate into the main mother campus halfway through their course. By doing this they get the best of both worlds,” explains Jasmine.

“Students usually opt for on-campus accommodation or student housing provided by the university. Often times, the students will choose to live off campus on rented or property bought by their families after a semester or the first year; once they are familiar with their environment. We do often receive enquiries about property investment especially for Australia as parents do see it as a good investment.”

According to an article in the New Straits Times in 2012, Malaysia has received 25 applications from foreign universities to set up branch campuses as it attempts to

The consistent partiality for the top education destination of Australia, UK and USA has also created an uptrend in property investment in these countries.

Enoch Khoo, vice-president of Property Hub & Alex Lee, associate director of Laurel Cap visiting Edith Cowen University, Joondalup Campus in Perth, Western Australia

groups of foreign property investors especially to house their children who study in the country. The migration pattern of Sabah students may change in the next decade as competition and global economic factors prompt students to seek out countries that offer both educational and business incentives. “As of November 2011, Australian immigration has also come up with a new visa called Temporary Graduate Visa, which means all students who graduate with a Bachelors, Masters or PhD after November 2011, will be eligible to apply for this visa and stay in Australia for a minimum of 2 years to work,” explains Jasmine. Other countries such as Germany and Canada have also introduced post-study work opportunities like Australia to attract overseas students. As the demand for education rises, and the awareness to develop a ‘global mindset’ to benefit both the student individually and society in general becomes more important, we will see more countries offering attractive valueadd opportunities.

According to statistics released by the Australian government, Malaysians form one of the largest

Jasmine Leong is the Executive Director of IEC Sdn. Bhd. She holds an LLB, Bachelors of Law & Human Resource Management degree from University of Keele, UK and has been counselling and placing students overseas for the past 10 years. She also gives leadership and career talks to students in schools and is available for free education counselling sessions at IEC Sunny Garden 9-5pm Mondays – Saturdays. IEC’s placement and counselling services are FREE of charge. For more information, please contact www.iec.com.my T: 088 212939

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SARAWAK PROPERTY NEWS

SARAWAK

PROPERTY NEWS

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

Sri Aman Town Booming With New Shops will be shortened by 50 km. This will further boost the economic potential of Sri Aman town in the very near future,” Francis told The Borneo Post here recently.

ri Aman town is booming with new shops with the improvement in the people’s purchasing power due to better prices of rubber, palm oil and paddy. This is despite the fact that the town is isolated from the main trunk road from Kuching to Sibu, Bintulu and Miri, said Assistant Minister of Housing and Assistant Minister of Rural Development Datuk Francis Harden.

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Sri Aman Town

He said under phase I of the town extension project, the Land Custody and Development Authority (LCDA) had constructed 44 shophouses and a hotel and it planned to build another 120 units of shophouses under phases II and III of the project soon.

“Although Sri Aman town seems to be quite isolated from the main trunk road, it’s actually quite vibrant. Now with the people’s purchasing power greatly improved with better prices of rubber, oil palm and paddy, the shophouses which were built by LCDA have all been sold.

“With the purchasing power of the people greatly improved, many of them are now able to purchase the shophouses which cost between RM680,000 and RM750,000 per unit. The trend shows that there is a healthy growth in the property sector as well,” he said.

“And with the government’s plan to build a bridge across the Batang Lupar near the town area, the journey to Betong town

On the proposed Batang Lupar bridge, Francis disclosed that he had forwarded the proposal to the Ministry of Works and

hoped the RM80 million project would materialise under the 11th Malaysia Plan.

“The proposed bridge project across Batang Lupar near Kampung Ulu, Sri Aman town will also include the upgrading of certain parts of the road from Sri Aman town to Lidong, Ng Skrang a distance of 10 km. And another 13 km from Ng Skrang to Betong Town will certainly shorten the journey from Sri Aman to Betong,” said Francis. Sri Aman District has a population of about 70,000 people, including more than 10,000 residing in the town.

More Land For Affordable Housing In Sarawak

Minister Datuk Amar Abang Johari Tun Openg

he Housing Development Corporation (HDC) will expand its land bank throughout the state for development of future affordable housing projects under the 11th Malaysia Plan. According to Housing Minister Datuk Amar Abang Johari Tun Openg, a total of 3,508 units of affordable housing would be constructed by HDC within the next three years in five urban centres in the state. “I have discussed this with Chief Minister Datuk Patinggi Tan Sri Adenan Satem and he had agreed on this matter. With the land bank, we can have one area where the premium is not that high for low income group and this enables us to develop affordable housing,” he said at a press conference after chairing the 13th State Housing Coordination Committee Meeting. At the meeting, Abang Johari also pointed out that based on the recent amendment to the Housing Development Corporation Ordinance, HDC was now empowered to collect levy from private housing developers which could then be utilised by to develop affordable housing projects in Sarawak. “Developers who do not wish to construct low-cost houses under the current low-cost housing quota policy shall pay a certain amount of levy to HDC instead.

“This is part of the key strategy by the government to boost the supply of affordable housing over the long-term,” he said, adding that his ministry was currently in the process of finalising the proposal on the housing levy implementation. The meeting, which was attended by all the relevant stakeholders including representatives from Sarawak Real State and Developers Association (SHEDA), Sarawak Banks Association, National Housing Department, 1Malaysia People’s Housing (PR1MA) and other professional bodies, also touched on the promotion of the Youth Housing Scheme as part of the initiative to help first-time house buyers and the younger generation to purchase their own house. “Sarawak is among the four states that have been selected for the implementation of this scheme this year and Datuk Abdul Karim, who is also Assistant Minister of Youth Development, has been appointed to monitor the scheme,” Abang Johari said.

Perbadanan PR1MA Malaysia was established under the PR1MA Act 2012 to plan, develop, construct and maintain high-quality housing with lifestyle concepts for middle-income households in key urban centres. PR1MA homes come in various types and sizes within an integrated community; sensibly designed to suit different household needs. Earmarked for development in key strategic urban areas nationwide, PR1MA is open to all Malaysians with a monthly household income between RM2,500 to RM10,000.

The two projects that are slated to kick off soon are PR1MA@ Kuching Zone (Kuching Utara) and PR1MA@ Matang Zone (Padawan) consisting of apartment units measuring between 800 sqft and 1,200 sqft, and priced between RM198,000 and RM235,000.

PR1MA has approved 15 affordable housing projects to be developed in Greater Klang Valley, Johor, Penang, Sabah and Sarawak. Locations for the PR1MA projects in Sarawak have been identified as Petra Jaya in Kuching, Nangka in Sibu and Permyjaya in Miri.

He also informed the meeting that the State Housing Development Study was currently undertaken by Universiti Teknologi Mara (UiTM) to chart the future direction of the housing development up to the year 2030. “The study is the first ever comprehensive study and research on housing in the state that would produce a holistic housing master plan to meet the needs of the growing population. “The areas which are given emphasis in the study are demography, employment as well as level of income,” he revealed. The minister called on all stakeholders to render the necessary assistance to the consultants to ensure successful completion of the study.

Source: www.pr1ma.my Illustrations of concept designs are subject to approval by the local authorities.

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SARAWAK PROPERTY NEWS

Sarawak Studying Possibilities Of Creating Retiree Villages What They Said Prime Minister NajibRazakin a special address on 20 January to announce revisions to the national budget for 2015: “We are not in crisis. Indeed, we are taking pre-emptive measures following the changes in the external global economic landscape which are beyond our control.” He added that government spending would also be trimmed but not the RM48.5 billion budgeted for development expenditures which includes a slew of infrastructure development projects such as the PanBorneo Highway.

arawak’s Housing Ministry is studying the possibilities of creating retiree villages in Sarawak. Its minister Datuk Amar Abang Johari Tun Openg said that such type of villages is the latest trend in developed countries. He said one such renowned retiree villages in a residential area in Australia allows retirees to buy houses. “The village is managed by developers and has home-care, nursing, recreation and exercise facilities.

“These houses are sold, but managed by an appointed company, and when the owner leaves, the house can be resold to other people through its property developer,” Abang Johari said when speaking at the Taman Desa Guru Playground officiating ceremony recently.

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Master Builders Association Malaysia president Matthew Tee in response to the government’s ambitious infrastructure goals for 2015: He added that once the ministry has obtained feedback from developers, they will start to work out the plans to build these retiree villages in the state. Abang Johari, who is also Tourism Minister, said they had received the paperwork from interested developers, but the appropriate sites had not been identified. “We also received a suggestion from Yang di-Pertua Negeri Tun Pehin Sri Abdul Taib Mahmud to see if the area in Telaga Air can be developed into retiree villages. Thus, we are looking into the possibilities and we are waiting for feedback from developers,” he said.

“We hope the government will implement its projects progressively, rather than all at one go, because there is a real shortage of manpower and machinery.The industry is dependent on foreign labour, and with the recent government policies and crackdowns on migrant workers, we may face greater difficulty in completing our jobs.”

Maybank IB Research views revised 2015 Budget positively for construction sector: “Listed construction players with exposure to infrastructure projects stand to win contracts from the major public transportation projects. They would also benefit if foreign workers levy rate is reduced.” Despite lower oil revenue, the government has decided to maintain gross development spending which includes allocation for rural transport infrastructure, water projects, flood mitigation, affordable housing and property/facility maintenance.

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FEATURE PROPERTY SHOWCASE| Bandar Utama

LIVE IT UP IN THE AWARD-WINNING

ONE OF BANDAR UTAMAMALAYSIA’S

MOST DESIRABLE ADDRESSES IN SELANGOR Bandar Utama Development Sdn Bhd is a leading property developer in Malaysia, also one of the pioneering developers who heed the government’s call for more “Build-then-Sell” developments as advocated by the Ministry of Housing and Local Government.The company has also earned a reputation for constructing homes that set the standards for premier living, world-class business facilities, and the ultimate urban lifestyle experience in a leisurely and friendly environment.

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Bukit Utama, a development encompassing a vast 7.5 acres of freehold land in the prime and mature award-winning Bandar Utama township, Petaling Jaya, offering spacious residential units surrounded by beautiful settings and a resort-like environment.

the dynamic young couples ready to take on the world in a big way and in big style.

Consists of three blocks – Aria, Beva and Ceta, units are offered with generous living spaces ranging from 2,286 sqft to 4,719 sqft, while penthouses range from a grand 7,547 sqft to 8,250 sq ft. Having such spacious built up, 9 Bukit Utama has gained the name of “Semi-D in the Sky”. Their sizes make them perfect homes for big families who enjoy personal privacy and solitude within a home, or for

Another unique feature of this development lies in the fact that selected walls in the homes are made of drywall room partitions, where they are structurally tough and smooth, yet easily dismantled for flexible reconfiguration purposes.

All 911 units at 9 Bukit Utama boast of value-added features which include air-conditioners, kitchen cabinets, built-in oven, cooker hood and hob, wardrobes, and water heaters.

Residents at 9 Bukit Utama can enjoy a plurality of lifestyle amenities and facilities including the lap and leisure swimming pools, wading pool for the

children, badminton courts which also double up as a multi-purpose hall, tennis court, children’s playground, barbeque area, yoga corner, sauna, and even a skate park. Of course, the quintessential indoor gym is also available for your daily fitness needs, fully equipped with top range gym equipments. There is also an outdoor gym and jogging track for those who prefer to sweat out the traditional way. To top it off, the 24-hours security surveillance system issure to give you the ultimate peace of mind. With a gross development value of RM1.3 billion, this upmarket development is targeted at families, investors, professionals, and MM2U candidates.

Located across 9 Bukit Utama is The Effingham, stylish and stately Zero-Lot Bungalows spread across a 32 acres of prime freehold land. With a serene and picturesque environment offering nothing less than the best in urban living, The Effingham is a prestigious symbol of success, affluence and premier living standards. Comprising a total of 212 exclusive homes when completed, Phase 1 and 2A consists of 100 units measuring between 5,654 sqft and 12,713 sqft, completed with Certificate of Fitness (CF). Each unit is fitted with airconditioners, kitchen cabinets, built-in oven, cooker hood and hob, dishwasher, solar water heaters, home security system – all for that wholesome home ownership experience.

With security being a priority amongst homeowners, The Effingham offers 24-hour security surveillance and trained security personnel on duty. Targeted at high income professionals, families, and entrepreneurs, this “Build-then-Sell” development is within a gated and guarded enclave with its own facilities such as a swimming pool, barbeque corner, children’s playground, and clubhouse which houses a gymnasium, multipurpose hall, management office, surau, and changing rooms. 9 Bukit Utama and The Effingham are both strategically located within the affluent neighbourhood of Bandar Utama, a location

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FEATURE PROPERTY SHOWCASE| Bandar Utama

9 Bukit Utama

Living Area

Bedroom

The Effingham Artist Impression

Living Hall

4. envied by many and a sanctuary for the privileged few. The awardwinning Bandar Utama township is located on a prime freehold land within Petaling Jaya, a mere 9 kilometers away from Kuala Lumpur. Bandar Utama prides itself to be a modern township with green concepts, located within lush landscapes and open parks, and yet in close proximity to some of the best conveniences in the Klang Valley.

For the food & beverage connoisseur and those enjoy frequenting malls, look no further than our 1 Utama Shopping Centre, the worldâ&#x20AC;&#x2122;s 4th largest mall awarded by CNN, featuring some

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of the best international and local retail brands and restaurants. There is also Centrepoint, a neighbourhood mall popular among residents for its vast variety of outlets. Located beside One Utama Shopping Centre is the One World Hotel, one of Petaling Jayaâ&#x20AC;&#x2122;s first 5-star hotels, perfect stay-in for guests and dignitaries. There is also The Club @ Bukit Utama, a fully equipped fitness club with an Olympic-sized swimming pool, gymnasium, racquet gaming facilities, and even a function hall which is increasing in popularity for weddings and

Dining Area

Water Feature

Effingham Club House

events among Bandar Utama and Petaling Jaya residents. In addition, one could sooth their minds and revitalize their spirit at the nearby Westlake Sanctuary Park or Central Park, or even have light game of golf at the 9-hole golf course within The Club’s immediate vicinity. Schools in the vicinity include the prestigious British International School, popular tertiary educational institution – KBU International College, and several national-type primary and secondary schools. Commercial area in Bandar Utama include various businesses such as IBM, KPMG, TV3, Wawasan Open University’s administration office, banks, etc.

Connectivity is no problem as it is easily accessible and well-connected via a multitude of highways and expressways, namely the Damansara-Puchong Expressway (LDP), Penchala Link, SPRINT, and more. Bandar Utama is also a central hub for public transportation and coach terminals, making it a breeze to get to Kuala Lumpur, the Klang Valley area, Penang, Singapore, and international airports. Apart from that, the approved Sungai BulohKajang Mass Rapid Transit (MRT) which will be passing Bandar Utama, is currently under construction and expected to be fully operational by July 2017. Find more details on the MRT @ http://www.mymrt.com.my/.

BANDAR UTAMA DEVELOPMENT SDN BHD

For a first hand experience of 9 Bukit Utama and The Effingham, contact

03-7729 8363

www.bukit-utama.com.my / www.the-effingham.com

06 07 08 09

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HOT TOPIC | Australia Property Market Outlook 2015

AUSTRALIA PROPERTY

MARKET OUTLOOK 2015

Foreign investment now accounts for about 13 per cent of turnover in the Australian real estate market with offshore investment in housing nearly doubling over the past year (2013 – 2014) – most of which came from China.

nvestor interest in Australia’s property market continues to draw traffic from Asian markets with Malaysia ranking amongst the top 10 investors. The FIRB (Foreign Investment Review Board) 2013-2014 annual report quoted Malaysia as ranked 6th with A$1.60 billion in real estate investments. At the top of the table is China with A$5.93 billion, Canada in second place with A$4.92 billion, followed by the USA with A$4.4 billion, Singapore with A$2.08 billion, and the UK with A$1.67 billion. China has been Australia’s strongest growing investor since 2007 having purchased properties predominantly in capital cities such as Sydney, Melbourne, Brisbane and Perth. According to a report from global investment bank Credit Suisse in

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2014, China is expected to sink around $44 billion into Australian residential real estate over the next seven years. The Credit Suisse report estimates that Chinese investors and newly arrived immigrants have spent about $24 billion on Australian property over the past seven years with purchases concentrated in Australia’s two largest cities, meaning that an estimated 18 per cent of new dwellings in Sydney and 14 per cent in Melbourne are being purchased by Chinese nationals. The level of Chinese buyers in other markets is estimated to be 7 per cent or lower. While Chinese investors may still be the most significant foreign presence in the Australian

property market, developers and property industry executives say Singaporeans are emerging as a serious player where properties are mainly purchased through developer seminars, exhibitions, and local agents.Australian properties are also making their presence felt at property expos in major cities in Malaysia.

THE RISE OF AUSTRALIA Malaysian investors have a long association with Australia’s real estate market and the trend has been steadily growing through the years. Emil Andrawo, an Australian property consultant who has been actively exploring the Malaysian investor market, says the confidence in Australia’s property market is due to its sustained investment growth. “With over 25 years involvement in the Australian property market, I have come to the conclusion that real wealth in Australia has been achieved through long term investment in Australian properties,” opines Andrawo.

“Malaysian citizens have traditionally invested in Australian real estate for lots of reasons, one of which is the safety of their investment, having very conservative and responsible governments of all persuasions, as well as the steady appreciation of the property values.” The larger, more dynamic cities on the east coast have enjoyed top billing for a while now but other cities, even in the western region, are picking up interest. “Sydney has had the biggest share, but recently Perth has started to fare well due to lower value properties than Sydney and what the city has to offer Malaysian students as far as courses and training, not forgetting how close Perth is to Malaysia, with direct flights to Kuala Lumpur and Kota Kinabalu.”

“Long term, because property, like other investment products goes through economic cycles, usually between 8 and 12 years, during which property values usually double in value. “ Andrawo also attributes Australia’s stable economy and political climate in holding up steady interest amongst Malaysian investors in its property market.

Perth WESTERN AUSTRALIA

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HOT TOPIC | Australia Property Market Outlook 2015

“Remarkably in 2006/7 properties median values in Perth matched those of Sydney for the first time in recorded property history, an achievement that no other Australian city ever came close to, and with the next mining boom I expect this phenomena to be repeated, giving properties in Perth a unique and prosperous investment future,” says Andrawo. He adds that this current trend is likely to continue and rise with other cities such as Gold Coast and Brisbane in Queensland and Melbourne in Victoria.

INVESTMENT VALUE OF AUSTRALIAN PROPERTY Since World War II, the property market in Australian has been performing very well. The Australian property market started to show significant improvement after the Second World War when people started to put their

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lives back together again and to carve out a new future for themselves, their families and country. And with such a big country, Australia needed to have a growing and sustainable population to feed into its economic evolution. The same still holds true today. “Australia has a steady intake of new migrants every year, and the Government controls where they should settle to ensure job securities and good supply of services by providing the required infrastructure, all of which adds to the stability and improved property values as well as supply,” says Andrawo. “Malaysians may invest in Australian properties from as little as $100, 000, as Australian banks has full confidence in the security the property provides and willing to lend up to 80% of property value! “The best news from the previous point is that investors can leverage their money almost 4

folds, as $100,000 may control property valued at $400,000. When the property doubles up in value and reaches $800,000, the end result is an investment being fourfold their initial investment.” When planning to buy property in Australia, Ken Dodds, Vice President & Senior Partner of Resimax Group advises that you buy what the locals buy, and buy where the locals buy. Under Australian law, foreign buyers can only sell their property to a local and not to their family members or another foreign buyer. “Almost all properties in Australia are landed property and this is the local preference. But if you want to buy a condo in the CBD, you must check what the percentage of locals who have bought units there,” says Dodds. “If it is mostly foreign owed, that means the locals are not interested in the property. So when you want to sell the property, it will be difficult because the interest among local buyers would

be low since they did not purchase that many units there in the first place.” “Also, if the units are mainly for foreign investment and not owner occupier, it would be hard to rent out the units.” At the time of writing, the latest property rental figures for Sydney to come in points to a shortage, despite the high level of new releases that pushed rental yields to new highs. “This is great news, as normally other cities follow the trend. But it is worth to remember, when investing in property; it is the time in the market and not timing the market that is the key to being a successful investor. Also invest in what your initial funds allow you to invest in, let time, tenant, planed population growth and steady conservative trust worthy government help you to achieve your financial freedom,” surmises Andrawo.

EMIL ANDRAWO Australian property consultant

Sydney, New South Wales AUSTRALIA

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FEATURE PROPERTY SHOWCASE| Greenland Group

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FEATURE PROPERTY SHOWCASE| Greenland Group

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CONTRIBUTOR| Chris Tan

Chris Tan

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.

THE ROLE OF A

LAWYER

IN A PROPERTY

TRANSACTION

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

LEGAL TIPS AND TRAPS

ou have just found yourself a dream home, or a potential property for investment. But not long after your initial excitement, you soon realize that the sweet joy of owning that plot of real estate isn’t as forthcoming as you thought. Instead, you are left completely baffled by the long and confusing process involved in property transactions. In fact, you really have no clue what to do next! Then, dear future homeowner, you should look no further than to your lawyer for assistance. As a purchaser, you can enlist your lawyer to assist you in each stage of the property transaction: Stage 1: Understanding the Property Stage 2: Pre-contract Negotiations Stage 3: Execution of Sale and Purchase Agreements Stage 4: Assisting in Financing Arrangement Stage 5: Discharge and Redemption

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Stage 6: Transfer of Land Stage 7: Apportionment and Follow up Typically however, investors and purchasers alike tend to engage a lawyer only during the stage of execution (signing) of the Sale and Purchase Agreement. Instead, they should maximize the service of their lawyers by bringing them into the picture as early as possible. No extra cost will be incurred by doing so, because the legal fees are governed and fixed to scale.

STAGE 1: UNDERSTANDING THE PROPERTY Before actually deciding to buy, a potential purchaser should seek and gain an in-depth understanding of the property. This goes beyond a mere physical examination of the building in question, and involves a further investigation into the nature of the property title. In particular, a purchaser should find out the following: 1.

The type of land (residential/commercial land)

To many, 2015 is a year to wait and see. To the disciples of “Buffetology”, they need no reminder that when everyone is cautious, it’s the best time to seize the many opportunities ahead. Happy hunting, Property Hunters!

The availability of land title or strata title.

The type of title (leasehold/freehold)

Is the land free from encumbrances? (such as caveats or prohibitory orders)

Is the land charged to any individual/company/ financial institution?

Is there a need to obtain the state authority’s consent?

Verification of the owner’s background (It is always essential to know the background of the owner/ vendor)

Tip: Conduct searches (such as land search, bankruptcy search for individuals and winding-up search for companies) and let your lawyer interpret the results for you. This early-stage preparation will help you set out your expectations on cost, time and potential complications, which is crucial for informed decision making. Using a common lawyer is not encouraged as a lawyer acting for both the vendor and the purchaser could very well find himself (or herself) caught in a conflict of interest, and would have trouble maintaining impartiality. As such, you would be at a disadvantage should your lawyer be biased in favor of the vendor.

Whether the deposit paid will be held by the vendor’s lawyer as a neutral party and to be released to the vendor only after the whole transaction is completed?

When may you take possession of the premises?

Whether any stamp duty or tax is payable by you on the purchase for your financial planning?

Your lawyer can also help you scrutinize the contract that your seller or agent has proposed, to see if the terms and conditions stated inside are fair and reasonable, or suited to your needs. Tip: Consult your lawyer and inform him of your expectations towards your new property Trap: Do not think that if the transaction is simple, you do not need a lawyer!

STAGE 3: EXECUTION OF SALE & PURCHASE AGREEMENT (SPA) If all goes well during the negotiation stage and both parties have come to an agreement, the lawyers will then prepare the relevant documents to be signed. The common issues to note at this stage are: 1.

Whether the deposit paid will be held by the vendor’s lawyers as a neutral party and to be released to the seller only after the whole transaction is completed (or upon fulfillment of certain conditions)

When can you take possession of the premises?

STAGE 2: PRE-CONTRACT NEGOTIATIONS Before you sign your SPA, it is always essential to first consult your lawyer. Your lawyer will be familiar with the common practice, and will be able to advise you on what should be clarified with the vendor. These include: 1.

Who will be liable for any defect of the house?

When are the payment dates?

Tip: 1. If you are not comfortable with the agreement, do not sign the documents. 2. Always ask questions, no matter how silly they might seem. You have paid for your lawyer’s services after all.

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CONTRIBUTOR | Chris Tan

Using a common lawyer is not encouraged as a lawyer acting for both the vendor and the purchaser could very well find himself (or herself) caught in a conflict of interest, and would have trouble maintaining impartiality. As such, you would be at a disadvantage should your lawyer be biased in favor of the vendor.

STAGE 4: ASSISTING IN FINANCING ARRANGEMENT If required, your lawyer can also make arrangements for you to meet the bankers to arrange for your housing loan. The bankers in turn will let you know whether you are eligible to obtain a housing loan. Here, you should be well aware of bank loan terms, such as promotional and long term loan rates, commencement dates and redemption penalties etc. Tip: Get a loan provider of your choice rather than your lawyerâ&#x20AC;&#x2122;s choice.

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Tip: This stage might drag on for a long period depending on the efficiency of the financial institution. As such, always provide for enough time in the agreement to facilitate this stage.

STAGE 6: TRANSFER OF LAND

There are many products out there to choose from. (Financial Institutions, Insurance Companies, EPF, Government Loans, Industrial Bank Grant, Islamic Banking Products).

This process begins by sending the necessary documents including the transfer form to the Inland Revenue Board for adjudication who then ascertains the amount of stamp duty that needs to be paid.

Choosing the lawyerâ&#x20AC;&#x2122;s recommendation is a convenient option, but it might not be the best for your needs! Other than the commercial terms of the loan, your lawyer can actually share with you the unique practice and work culture of each bank. This is extremely helpful to manage your expectation of the bank.

Once the value of stamp duty is ascertained, the lawyer must then collect the respective amount from the purchaser and stamp the transfer form. Note however that the lifespan of the transfer form is only 3 months. Failing to register the transfer form within its lifespan may lead to a penalty being imposed on the purchaser.

STAGE 5: DISCHARGE AND REDEMPTION (IF APPLICABLE)

After stamping this transfer form, the lawyers will then present the transfer form to the Land Registry/Office for registration. Upon presentation, the purchaser would effectively on the same date be the registered owner of the property.

In the event that the vendor has charged the land to a financial institution for a loan, this step will be a necessary part of the transaction process.

Here, your lawyer will request for a redemption statement from the respective financial institution to indicate how much is to be paid to redeem the property. Also there will be an exchange of undertaking (legally binding promises) between all parties, which you will need to sign. Once the redemption sum is released and paid to the respective financier, this process is then complete.

It may take several months depending on the land office, before the physical title is returned by the Land Registry/Office to the purchaser. The financier (if any) would only release the balance loan sum after the presentation takes place. Tip: If property is held under individual title, the purchaserâ&#x20AC;&#x2122;s lawyer can enter a caveat to freeze the property from any dealings until the transfer is registered. Trap: Be prepared to pay the cost of stamp duty in addition to the purchase price. There is a fixed scale and generally the stamp duty is based on purchase price or market value, whichever higher. (See diagram below.)

PROPERTY VALUE

STAMP DUTY PAYABLE

First RM100,000

Next RM400,000

In excess of RM500,000

STAGE 7: APPORTIONMENT & FOLLOW UP It is the duty of the vendor to pay the outgoings such as quit rent, assessment and utilities charges prior to handing over possession to the purchaser. The outgoings are normally apportioned from the date of delivery of possession. Your lawyer should check if all payments have been made by asking for copies of the receipts from the vendor. If you have paid for the outgoings instead, insist that the vendor reimburse you for his share of the payments made. Finally, ask your lawyer to follow up with the Land Registry/Office on the extraction of the title.

CONCLUSION The legal process in ensuring the completion of the sale and purchase is a complicated process. Maximize the service of your appointed solicitor!! Stop thinking of your lawyer as the toll gate, they are your highway to your destination

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.

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WEST MALAYSIA PROPERTY NEWS

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

REHDA’s New Year Wish: Exempt Houses From GST

REHDA President Datuk Seri Fateh Iskandar Mohamed Mansor

he Real Estate and Housing Developers Association (REHDA) of Malaysia is wishing that the federal government would exempt residential properties from the Goods & Services Tax (GST).

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According to its President Datuk Seri Fateh Iskandar Mohamed Mansor, they have already submitted this proposal to the authorities and are awaiting their response.

Aside from that, the higher land premium charged by some state governments to housing developers could result in higher home prices, noted Iskandar.

“We will try again as we still have time before the government enforces the GST next April,” he told the media.

In the last five years, the premium was only five percent, but now some are charging up to 18 percent.

In particular, the organisation is hoping that the government would adopt this suggestion in regards to low-cost homes priced below RM500,000, he said, emphasising that the exemption would help firsttime property buyers.

“This will definitely contribute to the higher costs of doing business, which might be passed on to consumers. So I hope that state governments like Selangor would help us lower the price of its land,” he added.

Construction Sector To Resume Bullish Performance In 2015

Land Prices Continue Upward Trend In Penang

uala Lumpur and Penangbased developers will launch approximately more than RM1.418 billion worth of residential properties in Seberang Prai in 2015, a year in which the property market is expected to perform badly.

alaysia’s construction sector is expected to remain “energetic and enthusiastic” in 2015, driven by large scaleprojects announced during Budget 2015 which include projects such as the Pan-Borneo Highway in Sarawak. M&A Securities Sdn Bhd’s research team (M&A Securities) in a recent Equity Strategy Outlook 2015 report for Malaysia, said Budget 2015 gave a clear indication on the continuous growth prospect of the construction sector, underpinned by major railway and highway projects to be implemented in 2015. With the aim to develop an efficient and integrated public transportation in Malaysia, the government is set to spend big to the tune of RM120 billion, it added. The research team said, according to the latest Malaysia Economic Report 2015, the government projects construction sector real output to gross domestic product (GDP) to rise by 10.7 per cent in 2015. “The key projects consist of KVMRT2 (RM23 billion), LRT3 (RM9 billion), Pan-Borneo Highway (RM27 billion) and West Coast Expressway (RM5 billion). Other projects that could get a ‘go’ next year include Eastern Klang Valley Expressway (RM1.6 billion),

Construction site Damansara-Shah Alam Highway (RM4.2 billion), Sungai Besi-Ulu Klang Expressway (RM5.3 billion) and upgrading the East Coast railway (RM150 million),” it explained. On the individual projects, the research team highlighted, “MRT Corp has appointed Gamuda-MMC to be the project delivery partner (PDP) for KVMRT2 which is within our expectation based on their excellent track record in developing KVMRT1 and their investment in related machinery such as Tunnel Boring Machine (TBM). “The tendering is expected to be called by the second half of 2015 (2H15) with initial contract awards could be expected by 1H16 onwards. “MRT Corp has hinted that the award for KVMRT2 may be skewed towards existing players in KVMRT1 such as IJM Corporation Bhd, Gadang Holdings Bhd, Mudajaya Group Bhd, Sunway Bhd (Sunway), Ahmad Zaki Resources Bhd and Naim Holdings Bhd.

The developers launching the projects are Wing Tai Malaysia Bhd (RM300 million GDV), Tambun Indah Land Bhd (RM469.6 million), IJM Land Bhd (RM379 million), and Sunway Bhd (RM70 million). The projects are located in the prime locations of Central Seberang Prai and South Seberang Prai, where land and property prices have increased significantly since 2006, just before the announcement of the second bridge project in late 2006. Henry Butcher Seberang Prai’s associate director Fook Tone Huat says the prices of vacant land in the area, especially in south Seberang Prai where the second bridge is located, are now hovering between RM42 and RM60 per sq ft, a huge jump from 2006’s RM8 to RM9 per sq ft. Land prices in Central and North Seberang Prai were then between RM20 to RM40 per sq ft, compared with today’s range of between RM50 and RM120 per sq ft. The increase in land prices has translated into higher property prices. “New landed properties such as double-storey terraced units in

South Seberang Prai are now priced between RM360,000 and RM450,000 compared with between RM150,000 and RM200,000 prior to 2006,” said Fook. Double-storey terraces in prime locations in Central and Northern Seberang Prai have doubled from RM200,000-RM270,000 range to RM400,000-RM630,000.

“We are also seeing a number of life-style condominium projects being planned in Bukit Mertajam this year with new units priced at around RM300 to 350 per sq ft,” Fook says. Fook adds that there won’t be much price appreciation expected due to cautious market sentiments and stringent financing policies. “The volume of transactions is unlikely to improve, but property prices are expected to remain high for those residential cum commercial schemes at popular areas such as Butterworth, Bukit Mertajam and Simpang Ampat neighbourhoods. “For the residential segment, the trend of development would shift towards high-rises in view of high land cost especially in Central Seberang Prai,” he said.

“Therefore, we believe this will be the earnings catalyst to boost their construction order book which may keep them busy until 2020.”

IJM Waterfront, Penang

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WEST MALAYSIA PROPERTY NEWS

Consultants Forecast Property Market Rebound Post GST

lthough the Goods and Services Tax (GST) has caused uncertainties among the people, the real estate market is expected to even out after the initial rush to close sales, property agents say. Developers are also taking advantage of public expectations that they would have to pay more for property after the GST becomes effective, real estate consultants say. The implementation of the GST is expected to increase house prices by between 3% and 5%. It would likely further exacerbate the market sentiments. “So (until April 1), some buyers are likely to adopt a ‘wait and see’ approach due to the uncertainties on the impact of the GST,” says C H Williams Talhar & Wong Sdn Bhd managing director Foo Gee Jen. The overall price increase will be less in the residential sub-segment, but more in the commercial subsegment, PA International Property Consultants head of agency Wendy Tong says. Although residential properties are zero-rated for GST, materials and services supplied in the development process will be subject to GST and these costs are likely to be passed on to home buyers.

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CIMB Research head of research Terence Wong said in a report that this would be a “tricky” year given the pick-up in sales momentum in 2014 on expectation of property prices rising post GST. He points out developers have faced a slow first half of last year due to Budget 2014 measures to curb speculation, however, property sales has picked up in the second half on renewed confidence and expectations that property prices would rise. “The net effect is that 2015 could end up being a similar year to 2014 in terms of property transactions, which we could categorise as a lacklustre year,” Wong said. Based on the experience of several countries that implemented GST, Wong says there has been a pick-up in retail sales ahead of the valueadded tax, particularly three to six months before the implementation. Retail sales then eased (in those countries) in the six months after GST before rebounding in the nine to 12-month period after (see chart). “If Malaysia goes through the same pattern and property sales also mimic retail sales, the second half of 2015 will be a trying period for developers,” Wong says. Several developers have lined up aggressive launches to take advantage of preGST buying to lock in as much sales as possible before potential postGST blues set in.

Malaysia’s Property Sector Lowered To Neutral On GST: CIMB Research

IMB Equities Research has downgraded Malaysia’s property sector from Overweight to Neutral due to tougher property market conditions after the Goods and Services Tax (GST) is implemented. The research house said that developers that found it difficult in 2014 will have to contend with another difficult year in 2015. However, it pointed out that savvier and stronger developers such as Mah Sing and Eco World should be able to weather any turbulence better than the rest and therefore “we keep them as our only Buy calls”. “SP Setia and UOA Dev are projecting flattish new sales while Mah Sing and UEM Sunrise have yet to announce their official targets. It would appear that Mah Sing and Eco World will likely be the only developers aiming for higher new sales in 2015,” it added. Eastern & Oriental is confident that the group can achieve more than RM1 billion in sales in FY3/15 if sales for the last Andaman block pick up pace or if it can launch the RM900 million Tamarind condominium in Penang by February 2015. For FY16, E&O plans to push out a new RM700 million condo near KLCC.

As for Eco World Development, it pointed out the new kid on the block is actually controlled and managed by some of the top people in the property industry. “Despite being brand new, Eco World has leapfrogged many older and more established developers by coming up with the third highest new sales in 2014 amounting to nearly RM3.2 billion. “Eco World is aiming for a twoyear sales target of RM7 billion for 2015/2016. Despite tougher property market conditions, Eco World has been able to buck the trend due to its strong marketing prowess and township-type landbank,” it said. As for Mah Sing Group, CIMB Research believes that it can still grow new sales in 2015 despite its own caution about the impact of GST. “It also continues to scout for landbank, particularly in the Klang Valley. This is best reflected by the group’s proposal to undertake a rights issue to raise RM630 million. “With the proceeds from the rights, Mah Sing could further gear up its balance sheet to the tune of an extra RM1 billion while keeping within the comfortable net gearing level of 0.5 times.

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WEST MALAYSIA PROPERTY NEWS

DOE Sets New Limits To Controversial Johor Straits Housing Project

hina developer Country Gardens Holdings can only develop less than 1,000 acres (405ha) or a quarter of its controversial 1,600 hectares Forest City project in the Johor Straits under new limits set by the Department of Environment (DOE). The Malaysian Insider has learnt that the DOE has verbally informed Country Garden Pacificview Sdn Bhd (CGP), a joint-venture unit of Country Gardens Holdings Co Ltd, of the new limits after complaints from locals and the Singapore government over reclamation works in the narrow waterway between Malaysia and the island state. “The DOE has decided to limit the project to the first phase and wait for a few years to see the impact before looking at future phases,” a source told The Malaysian Insider. “The DOE is expected to send an official letter about its decision soon to relevant parties,” he added. Country Gardens Holdings is China’s seventh-largest property developer with a market capitalisation of HK$63 billion as of December 31, 2014. Its financial revenue for the financial year ended June 30, 2014, was HK$38.3 billion with HK$5.5 billion nett profit. Another source said Malaysian environmental authorities made

their decision after Singapore presented videos and documentary proof of continued reclamation works for the ambitious ChinaMalaysia joint-venture project. It is understood that the evidence was presented at the last MalaysiaSingapore Joint Commission on Environment (MSJCE) which met last month. Singapore had raised the issue of reclamation works near its sea border as it had effects on its coastal areas. The reclamation works had also affected Malaysia’s nearby key transhipment hub, the Port of Tanjung Pelepas (PTP). Last September, the Johor government said it wanted Country Garden Pacificview (CGP) Sdn Bhd, the developer of Forest City, to comply with the Environmental Impact Assessment (EIA) before developing the project at Tanjung Kupang, Gelang Patah. Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin had said it was important to ensure issues such as environment were given full attention and regulations were adhered to. “We hope the developer complies with the requirement to submit an EIA report, which is very important for us to ensure all concerns, including from the environmental aspects, are given attention,” he said in Johor Baru.

Reclaimantion works in Johor curtailed by new DOE limitations

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Mah Sing Targets Mass Market Segment

Tan Sri Leong Hoy Kum briefing Minister Of Urban Wellbeing, Housing and Local Government Datuk Rahlan Dahlan on the company’s development projects during its annual charity dinner

iven that the majority of its project launches for next year are priced below RM1 million, Mah Sing is optimistic that these mass market homes will see strong demand in 2015.

“This is due to first time home buyers, upgraders, new household formations and government incentives for first time home buyers under Budget 2015,” according to its Group CEO and Group Managing Director Tan Sri Leong Hoy Kum. Aside from that, mass market homes that it had previously released had seen good takeup, such as the D’sara Sentral in Sungai Buloh, Lakeville Residence in Taman Wahyu at Kuala Lumpur and Savanna Executive Suites in Southville City@ KL South in Bangi. Units at these projects are priced from RM548,000, RM529,800 and RM338,000 respectively. Moreover, its Lakeville Residence in Kepong is expected to benefit from the Light Rail Transit (LRT), Mass Rapid Transit (MRT) and the planned High Speed Rail project,

while the appeal of its recently bought land in Shah Alam is projected to grow as LRT3 will pass through Section 13. Over at Johor, Mah Sing’s Bandar Meridin East project is expected to become sought-after due to its proximity to the Pengerang oil and gas project which is estimated to generate 10,000 new jobs, while Southville City@KL South in Bangi is accessible via MRT 1 and 2 in Putrajaya and Kajang. “In 2014, Mah Sing acquired landbanks in both Puchong and Seremban, to target the mass market and upgraders. The developments in Puchong and Seremban are intended to offer mass market products with pricing starting from RM585,000 and RM350,000 respectively,” he added.

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WEST MALAYSIA PROPERTY NEWS

Foreigners Unlikely To Buy Properties With Ringgit Fall

Damage To Property And Infrastructure Close To RM1 Billion

Chan also said people looking for properties could still find homes selling at affordable prices under RM400,000 on Penang island and under RM250,000 on the mainland. In Penang, the ceiling prices for affordable homes are set at RM400,000 and RM250,000 for the island and Seberang Prai respectively.

Penang REHDA Chairman, Datuk Jerry Chan

he fall in the ringgit is unlikely to attract foreign buyers to snap up properties in Malaysia, said the Penang Real Estate and Housing Developers’ Association (REHDA). Its chairman Datuk Jerry Chan said foreign buyers would exercise caution rather than buy properties in Malaysia right away just because the exchange rates favoured them. He said foreign investors would wait until there was stability in the ringgit. “Now there is no stability yet. If there are concerns that foreigner buyers will cause property prices to increase, I think we will not see that happen. “We won’t see an immediate effect like that since they are not coming in right away,” he told the media at the Penang International Property conference in Penang today. Chan said local buyers would still buy properties at the same value of the ringgit and would not be affected by any exchange rates. According to Bloomberg, the ringgit fell to 3.5862, the lowest since July 2009, and has lost 2.4% this year. The fall of the currency follows the drop in oil prices, which puts pressure on the Malaysian government’s fiscal deficit target.

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Meanwhile, local government exco Chow Kon Yeow was asked to comment on the high density issue in the state, which has been blamed for causing congestion. It has been a major concern among residents and non-governmental organisations in recent years that certain areas on the island have had an increased density from 30 units per acre to 87 units per acre. Chow said that the policy allowing higher density in certain areas was because the state wanted to ensure enough affordable homes to cater to buyers in Penang. “For developers to be able to build affordable homes while keeping to the ceiling prices fixed by the state, the projects must also be made sustainable, and that is by building more units,” he said. He added that the higher density policy might not be a permanent policy once the state had enough affordable homes to go around. It was reported that the Penang government planned to build about 50,000 affordable homes in the state, with nearly 20,000 to be built by the state-owned Penang Development Corporation (PDC) in Batu Kawan on the mainland and on Jalan SP Chelliah on the island.

ealisation is starting to sink in on just how devastating the floods have been on the country, infrastructure and people. At the forefront are the thousands of villagers who lost their homes and those who lost their lives in the disaster. But as the nation moves to recover, it is finding that there are more who have also lost. Among them are some 69,000 rubber smallholders and up to 50,000 oil palm planters whose plantations are submerged. They are suffering a loss in income while a lengthy submersion in water can damage the oil palm trees, adding to the cost. In the worst-hit east coast state of Kelantan alone, there are about 150,000 farmers and livestock breeders with destroyed padi fields and vegetable plots, drowned livestock and swamped fish ponds. The total damage to property and infrastructure in all the affected states is still being tallied but already the cost is close to RM1 billion. Some officials announced estimates yesterday totalling RM878 million. This comprises RM350 million to repair damaged schools in five

One of the worst floods in recent history states, RM200 million in property damage, RM100 million to repair roads in Kelantan, RM132 million to repair roads in Terengganu and RM96 million to repair 93 collapsed hillslopes along the damaged roads in four states. The tally does not include the losses incurred by the rubber, oil palm and agriculture sectors, which are among the main economic activities for residents of the east coast states. The National Association of Small Holders (Nash) said that about 119,000 smallholders were affected and that a survey to determine the losses they suffered were ongoing. “This has been a terrible flood and worst hit are oil palm smallholders in Pahang and Terengganu as well as rubber smallholders in Kelantan,” said Datuk Aliasak Ambia, president of Nash. He said the rubber smallholders needed help in the form of equipment, such as cups and tapping knives, while the oil palm smallholders were hoping for fertiliser aid. Nash has about 375,000 members who each plant rubber, oil palm and cocoa on plots of land less than 40ha.

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WEST MALAYSIA PROPERTY NEWS

Felda chairman Tan Sri Mohd Isa Abdul Samad said the land development authority was conducting a survey to determine the extent of damage and losses.

IOI Launches New Township In Bangi

“So far, what I can say is that most of the damage has been to our plantations in Gua Musang, Kelantan, and in parts of Pahang,” he said. Agriculture and Agro-Based Industries Minister Datuk Seri Ismail Sabri Yaakob said a more accurate estimate of damage was not yet possible because most of the farmers were still in relief centres. Also, with the farmers affected, the prices of vegetables are rising nationwide because the commodity has become scarce and inaccessible roads make it difficult to get the produce to market. Tenaga Nasional Bhd’s Kelantan office general-manager Md Yuslan Md Yusof also could not put a figure to the damage but added that the flood damaged equipment such as switchgear, transformers, cables, conductors and electricity poles, mostly in Tanah Merah, Gua Musang and Kuala Krai. Works Minister Datuk Fadillah Yusof said he could only give an accurate estimate on damage once the water subsided. The Defence Ministry has pledged to help the Works Ministry with manpower to repair damaged public infrastructure, especially roads. Unless roads are made accessible quickly and the weather improves, the supply of foodstuff in the badly affected states would only be fully restored within two weeks, said Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek.

he town of Bangi will be adorning a vibrant landscape with the launching of IOI Properties’ Bandar Puteri Bangi township - a 370-acre FREEHOLD integrated mixed development. Its master plan includes 167 acres dedicated to the development of a commercial hub that will make it one of the biggest centres of business and economic activities within the Southern Corridor of Klang Valley covering Kajang, Bangi, Semenyih and Nilai. The centralized location of Bandar Puteri Bangi commercial hub makes it the ideal lifestyle magnet for alfresco dining, street cafes, quaint boutiques, and hypermarkets such as Tesco Hypermarket which will be opening its doors in about two years’ time. The whole site comes with a GDV of RM4 billion and will be transformed into a fully integrated modern lifestyle township over the next 8 years. The development is based on the concept of “the living theatre of nature and people”; while the landscape concept is called “The Streets of Dreams” which offer visitors a glimpse of the famous California Street, Tropical Street and Art Street; and complemented by tree-lined boulevards, lush flora and spectacular landscape. Collectively, The Streets of Dreams create a green network that reconnects the urban population with the natural landscape through a system of parks, paths and open public spaces. The other components are the arenaOasis Clubhouse and ecoOasis Parkland. Bandar Puteri Bangi is strategically placed within the Southern Corridor of Klang Valley, which has been experiencing booming growth, thanks to

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IOI Properties’ Bandar Puteri Bangi township launch the emergence of Putrajaya, Cyberjaya and the vicinity around Kuala Lumpur International Airport as popular choices for residential and commercial developments. In addition, Bangi is also fast emerging as a genuine hotspot location due to the increasing demand for affordably priced properties by investors and housebuyers. Bandar Puteri Bangi offers a wide range of residential and commercial products with thoughtful architecture and sustainability elements. From the total of 370 acres, 40% will be developed as residential precincts, 40% dedicated to a commercial hub (3 & 4 storey shop-offices, integrated retail lifestyle commercial developments & Tesco Hypermarket), and 20% to landscape, parkland and public amenities. The spectrum of properties to be launched includes Kubica Square 3 & 4-storey shop-offices (built-up 5,237 - 17,465 sq ft & priced from RM1,525,800); The Terresse 2-storey superlink house (built-up from 2,510 sq ft & priced from RM728,800); and Almyra serviced apartment (builtup from 969 sq ft & priced from RM360,800). They will cater to the growing demand for affordable and mass housing that follows the recent spike in prices for landed properties in selected locations within the Klang Valley.

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CONTRIBUTOR| Charles Tan

IN SEARCH OF

Charles Tan

Founder kopiandproperty.com

Charles loves cars but he buys properties instead. A good car gets you to your journey faster but a good property gives you returns for your comfortable retirement faster! Currently, he has properties in Penang, Klang Valley and Kota Kinabalu. His mantra for property investment is, ‘Buy Objectively’. In his previous role with a leading property portal in Malaysia, he regularly speaks about the property market in property fairs, public property talks, workshops and even as panels in property related forums. He blogs on a regular basis inkopiandproperty.com which is a popular property blog in Malaysia. The blog is dedicated to his personal views about the property market.

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PERTH A recent visit to Perth gave Charles Tan a bunch of ideas on why you should consider investing there. Find out what they are.

or the past few months, I have seen a few marketing promotions for properties in Perth here in Malaysia. Their advertisements could be seen online, in newspapers and some property fairs. I think for the past few years, when people talk about Australian properties, it would most probably be Melbourne or Sydney. These two are bigger and more vibrant cities as everyone would tell you. In November, I travelled to Perth. I have been to 18 countries thus far but have never been to Australia. So, what do I think of Perth as a city for potential property investment? Statistics are one thing but what about actual on the ground experience? Read on. Family friendly. It’s really a friendly place for a family of old and very young. Google for Perth CBD, enlarge it and look at all the little parks and gardens that Perth has. Do note that I said Perth CBD because city centres are normally places where there are the least public spaces compared to suburbs. In Perth, these are available everywhere. My parents do not like huge shopping

centres and they prefer natural surroundings where we can have a nice family picnic. My baby had lots of fun running here and there in a safe surrounding in some of these parks and gardens. It was truly a family friendly place to visit. All in all, we had two picnics and visited no less than 6 different parks and 3 different beaches. All were clean and the public facilities were working. Food diversity and affordability. I estimated RM50 per pax per meal. This is around AUD$15 which is a normal price for one lunch set. I spent much less. Not just because of the price but because of the diversity. From Chinese to Japanese to Vietnamese and of course the famous fish and chips, Perth seems to have everything. Including the very delicious Apple Strudel of Corica Pastries. The whole family enjoyed different meals every day and needless to say I rate their food diversity and affordability as better than my expectations. In the end it was just an average of AUD10 per meal per person. Mind you, the portions are bigger than our usual. No matter which country we go to, do you seriously want to eat the same type of food everyday? For food, in Perth, there’s no need to worry.

Convenience. Shops close at 5pm. Oh dear, are we able to buy anything at all since everything closes at 5pm? No offense but I think this labeling is a little unfair because every evening, I was still able to buy stuffs at the supermarkets there. Yeah, its true that MANY are closed by 5pm but there are still many specific stores of the supermarket chains which are open till 9pm and for one nearby CBD, it’s open 24 hours. Just to name a few of the chains, they include Woolworth’s and IGA. Both offer attractive prices for some of their products and some of their dairy products are cheaper than Malaysia, after conversion. As for the eateries, there are still many which remain open even up till 9pm including those in the neighbourhood of Belmont. Even the casino is easily accessible. Property prices and the potential gains. Please note that foreign buyers are not allowed to buy secondary properties from the market in Australia and of course that includes Perth. However, we can buy new properties or newly redeveloped ones. In terms of the prices versus the quality in terms of location, size, convenience and environment, Perth is really pretty good even when compared to Malaysia. Not many of us can buy a home just within walking distance to a nice park with a garden or even water features for just AUD$400,000 or lower. In terms of capital appreciation, Perth remains a growing city and buying new properties would not be that easy because many of the more popular suburbs are already pretty mature and new units are not easy to come by. This is why when we buy a good one, the chance of it appreciating is definitely good. There is the potential for AUD$ to appreciate again since today it’s lower than its historical highs. Thus, there’s potential for further gains due to currency exchange. I have not changed back my AUD$ to RM because it has depreciated more than RM from the day I bought them. Sigh… Services are expensive though. Yes, this one is not a myth. Your plumber will be charging you a number that would make you feel ‘dizzy’. So would your dentist and so would the electrician you called to your home. Australians love to DIY for a good reason. There are lots of huge DIY stores too and I think if you DIY, the overall cost savings would be huge. Thus, if you are thinking of

staying for a longer term than usual, be prepared for this or you can prepare your funds too, to pay them. On second thought, if you intend to learn some new skills, why not think of this as an advantage too? Haha. No thick smoke, no burning of rubbishes, clear water right beside the housing area. Perth is surrounded by water. Lots of water. I went to Mosman Park for a stroll and when I was taking pictures, I noticed that the water was clear. In fact very clear. This was right beside a restaurant and I told my wife and we were very impressed. I did not see a single vehicle spewing thick black smoke. There were also no rubbishes on the streets. Perhaps I have only passed the good areas? I have no idea but when we look at this aspect, Perth is way ahead of many of the cities I have visited thus far. There are lots of other factors. Just go and experience it yourself. Perhaps Sydney and Melbourne would have all these that I have mentioned above. Perhaps they are more exciting. However, both of these are also further than Malaysia. Both of these cities have also been ‘hotter’ for many years where properties are concerned. If you do think that some of the reasons stated above are valid, it’s time to take a look at Perth. Properties are not just about where everyone is buying or where everyone said we should buy. It should also be where we have been and we felt good about it. If one whole family of different ages, background and even occupations can all agree that Perth is worth another visit soon, I think there’s something right about it. Happy visiting or considering.

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INTERNATIONAL PROPERTY NEWS

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

Singapore Home Prices Post Longest Losing Streak In Decade first year-on-year fall since 2008, as the government’s five-year campaign to rein in property values curbed demand. The drop is now more prolonged than during the global financial crisis, when prices slid for four consecutive quarters between the middle of 2008 and mid-2009.

ingapore’s home prices dropped for a fifth consecutive quarter, the longest losing streak in more than a decade, as tighter mortgage curbs cooled demand in Asia’s secondmost expensive housing market. An index tracking private residential prices fell 1 percent to 205.8 points in the three months ended

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Highrise apartments in Singapore December 31, the longest stretch of declines since March 2004 and bringing the slide to 4.9 percent from the record high set in September 2013, according to preliminary data released by the Urban Redevelopment Authority (URA) recently. Residential prices fell 4 percent in 2014, the URA figures showed, the

“The decline in the last quarter was quite sharp,” said Alan Cheong, a Singapore-based director at real estate broker Savills Plc. He said home prices may fall another 3 percent in 2015, while sales may remain at the low levels seen in 2014. The government has imposed various curbs to cool the property market, including restrictions in June 2013 on the total loan amount for individuals. The measures prevent borrowers from taking on mortgages that push their total debt

servicing costs above 60 percent of income. Singapore is unlikely to ease curbs until “a meaningful correction” takes place, Finance Minister Tharman Shanmugaratnam said October 28, suggesting prices have further to decline. Mortgage loan growth of 6.2 percent in November was the slowest pace since May 2007, data compiled by Bloomberg based on MAS figures showed. Developers sold 412 units in November, according to previously-released URA data, the fewest homes sold in any month last year. New private home sales may have fallen to about 7,500 units for all of last year, almost half the 14,948 units sold in 2013, according to Nicholas Mak, executive director at SLP International Property Consultants.

Movie-Set Themed Resort Launched In Batam

Chinese Developer Buys Canadian Ghost Town For US$840K

The Scene, a movie-themed holiday resort

nfinite Studios, an integrated media entertainment and creative services company, in partnership with Landstar Development, brings movies to life with the launch of The Scene, Asia’s first liveable and filmable movie town themed holiday resort. This unique movie themed development is located in the upscale Nongsa coastal area in Batam, Indonesia. The Scene is a one-of-a-kind holiday resort inspired by classic European architecture by leading architect, Piter Gan and renowned Hollywood scenic artist, Peter Collias. It spans 31,600 sqm featuring 295 low-rise condotel units comprising of studios, one/two bedroom apartments and suites as well as 50 retail spaces. The resort will showcase top-of-the-range facilities including a lobby lounge, all-day dining, alfresco café & dining, rooftop bar, pool bar, clock tower gallery, wedding chapel, fitness and wellness centre, shopping streets as well as MICE rooms. Prices for both condotel and retail units begin at S$200,000. The full construction of The Scene is planned in four phases and expected to be completed by December 2018. Beyond The Scene’s cinematic living, this unique vacation home prides itself in its accessibility – a half-hour ferry ride from Singapore

and connected to Nongsapura Ferry Terminal by a short footpath. Guests of The Scene will be located nearby several golf courses and the favorable sloped terrain of Nongsa allows most apartments to enjoy uninterrupted views of the sea and lush green landscape. “The Scene’s unique concept stems from the strong demand we are seeing in Asia for movie production, with more international directors now choosing to come to this region,” says Mr. Mike Wiluan, Chief Executive Officer, Infinite Studios. “What you see on the big screen, we have created in reality with The Scene. Its breathtakingly stunning cinematic environment presents an exciting opportunity as a new vibrant place to stay. Its close proximity to Singapore, excellent transport links, and first-rate architecture and hotel facilities, make The Scene destined to become a new iconic landmark.”

Location of Bradian Town in Canada

In the 1930s, Bradian was home to workers from the nearby Bralorne gold mine but they and their families left after the mine closed in 1971.

China Zhong Ya Group Hebei Canada-China Co. beat out bidders from around the world, real estate agent John Lovelace said in a statement.

Then in 1997, a couple touring the region reportedly stumbled upon Bradian and decided to buy it, using it as a summer retreat. But after their two children grew up, they decided to sell.

ghost town in Canada’s westernmost wilds has been sold to a Chinese real estate developer who intends to bring it back to life, according the realtor.

The sale of Bradian, 230 kilometers (142 miles) north of Vancouver, closed on December 29, 2014. It includes 22 homes, vacant lots, streets and fire hydrants on 50 acres. “The company told us they plan to rehabilitate the town but I think they are prepared to take the time to plan everything out first,” Lovelace said. “That planning process will undoubtedly take considerable time.” The asking price was just under CanUS$1 million (RM3 million). The actual sale price was not disclosed. Several Canadian towns have been put up for sale in recent decades after being abandoned following the closure of a local mill or mine. Others were levelled.

The area offers good snowmobiling or skiing in winter or fishing, boating, swimming and hiking in summer.

Lovelace said the sale to a Chinese group is indicative of a new trend involving foreign investors: Chinese buyers looking beyond condos and single family homes in Vancouver to invest in farms, ranches and other rural businesses throughout the province “and in this case an entire town!”

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INTERNATIONAL PROPERTY NEWS

Country Group Partners With Four Seasons Hotels And Resorts In Bangkok

hai developer Country Group Development this week announced its latest luxury multi-use development along the banks of Chao Phraya River in Bangkok’s city centre. The low-density development, collectively called Chao Phraya Estate, is being developed in partnership with Four Seasons Hotels and Resorts, and will comprise a 300 plus-room branded luxury hotel and a 73-storey residential tower. Featuring more than 350 metres of prime riverfront stretch, the mixeduse property will consist of the new Four Seasons Hotel Bangkok at Chao Phraya, and the Four Seasons Private Residences Bangkok at Chao Phraya, boasting more than 350 all-corner luxury units. “Country Group is exceptionally proud to be collaborating with Four Seasons to develop one of Bangkok’s most iconic hotel and private residences, demonstrating our long-term commitment to the people of Thailand,” said Ben Taechaubol, Country Group CEO, in a statement. “Through our collaboration with Four Seasons,

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Chao Phraya-Estate 2 our aim is for Chao Phraya Estate to redefine the waterfront experience in Bangkok and Asia.” Michael Crawford, president, Asia Pacific, of Four Seasons Hotels and Resorts, also commented: “We’re thrilled to be working with Country Group on the historic development of this unique and exquisite Bangkok landmark located on the banks of the Chao Phraya River. Bangkok continues to be a destination of choice for business and leisure travellers and this property will embody our commitment to innovation and exceeding the expectations of our discerning guests.”

Facebook’s Sprawling New HQ Designed By Frank Gehry

fter Facebook assumed the former Sun Microsystems complex in Palo Alto in 2011, Facebook founder Mark Zuckerberg set out to find an architect capable of handling a grand design for its main main headquarters building. Zuckerberg chose world famous architect Frank Gehry for the job (amid major concessions to the city of Palo Alto). If he was looking for impact, Zuckerberg could have made no better choice. Gehry’s past designs have become renowned tourist attractions, like the Guggenheim Museum in Bilbao, Spain. They are considered some of the most important works of contemporary architecture on the planet. Photos of the Gehry model that will become Facebook’s new HQ have been floating around for a couple of years. But with the building slated for completion next year, Facebook provided these new, exclusive images to Business Insider of what the world can expect from Gehry’s latest design: At more than 435,000 square feet, spread across 22 acres, the new building dips and rises from 45 to 73 feet. It is built above a

surface-level parking lot with a massive rooftop green space that resembles a park more than a small corporate outdoor garden.

Facebook’s new building is a powerful example of how people create a sense of space and ownership over their environment. Buildings have long been held up as shining example of human innovation. Considering Gehry’s new design is just one of many expansive new Silicon Valley projects, it feels as if the whole area is gently reshaping its self image. The roof will support a handful of outdoor cafes, barbecues and work benches beneath full-size trees to complete the park-like effect. One building will be large enough to house 10,000 workers in a single room. The building is scheduled to open in the spring of 2015.

Hamiltons International has been appointed to design the masterplan of the project, along with interior design consultants BAMO.

Frank Gehry (left) and Facebook founder Mark Zuckerberg (centre) discussing plans for new HQ

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CONTRIBUTOR| Enoch Khoo

Enoch Khoo

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

INVESTING IN WESTERN AUSTRALIA You know it’s a credit crunch when… 1.

The cashpoint asks if you can spare any change.

There’s a ‘buy one, get one free’ offer – on banks.

The IRB is offering a 25 per cent discount for cash-payers

Your builder asks to be paid in Pesos rather than Ringgit.

Howdy mate! A happy blessed New Year 2015 to all readers of Property Hunter! As we enter 2015, many are anxious about the impact of GST and change in regulations, tightening of bank loans, oversupply and many other concerns. Many property investors such as me need to find ways to hedge against inflation and to park our assets in an environment where we are comfortable. I decided to explore more seriously the international front where it seems to offer a more stable platform for property investors compared to our local front as their policies tend to flip flop less.

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I recently participated in a study tour in Perth and drove more than 1,000km, meeting up with 19 property developers, checking out 25 different projects and engaging in discussions with officials from Western Australia. I would like to share with you the result of my findings and why I have decided to invest in Perth this year to hedge my assets. 3 MAIN REASONS TO INVEST IN PERTH, AUSTRALIA: 1.

Economy & Population of Western Australia (WA)

Why I decided to invest in (WA) and not the more famous Eastern States such as Melbourne and Sydney is based on the following. Upon further analysis, (WA) has been outperforming Melbourne and Sydney over the past 10 years! The annual gross state product for (WA) is at 4.9% which is the highest in Australia. As of today, AUD146 billion of investment in resource projects is under construction in (WA) and to my surprise, 35% of all ASX listed companies are based in Perth!

Population growth? A staggering 17.2% growth for the last 5 years and all these reports are coming from their government websites where data is of high integrity and not like ours which is a rough estimate! The population of Perth city is at 1.7 million where the median age is 36 years old. This is a very important factor for me as I always emphasize on population growth and the current median age tells me this is a relatively young community which is good for property investors such as me as it gives me a long term outlook. 2.

Education

When I studied in London in the year 2000, I learnt a very important lesson which is a rich man never pays for his kids’ education. A classmate of mine studied for 4 years in London and her mum bought her an apartment during her course of study. Upon completion of her studies, she sold the apartment and the appreciation value from those 4 years actually took care of the entire cost of her education in London! That’s no different from being awarded a scholarship!

Many Sabahans have studied in Perth and for those who were fortunate enough to invest in a property, they would be able to share with you that should they sell their property today, the appreciation value would be able to take care of the entire cost of their education. Perth being a well known education city attracts thousands of students to its universities and many Sabahans go to Perth for their tertiary education. Renting to these students shouldn’t be a problem as an apartment in a prime location in Perth is only at the range of AUD400K – AUD700K. It’s not much different from investing in a condo in KK these days. Below is a simple calculation on renting and investing in a property. SAVE BACK ON RENTAL DURING CHILD’S EDUCATION: Eg: 3 students sharing an apartment •

AUD500 per unit per week

•

AUD2,000 per month

•

AUD666.66 per person per month

•

Converted to Ringgit: 666.66 X 3 = RM2,000

•

RM2,000 X 12 months x 4 years = RM96,000

•

RM2,000 X 12 months x 3 years = RM72,000

Apartment (AUD410K) held for 5 years Conservative forecast 30% increase in value •

AUD410,000 x 1.3% = AUD533,000

•

AUD533,000 - $ 410,000 = AUD123,000

•

CAPITAL GAIN = AUD123,000 OR RM 369,000

3. Financing & Currency Exchange Had I invested in an Australia property last year as compared to today, I would have paid a minimum 10% premium. Why so? Last year the currency was at RM3.20 to AUD1 but as of today it is only at RM2.90! This is a good time to capitalize on this huge savings and hedge our investment to the Australian Dollar which I anticipate to be more stable in the long run as compared to the Ringgit. In Australia, developers adopt the Build to Sell concept where they are not allowed to touch any money from the booking received as it is placed under a trust fund that earns interest for you during the construction period. A developer would need to bear all the risks to complete the project and can only receive funding from the banks when they are at an advanced stage of construction. The current margin of financing from Australian banks to foreigners is at 80% for an unlimited number of properties based on your financial capability. That’s even better then DIBS as you pay nothing during construction. To take note when you obtain financing from Australian banks, they do not look into your Ccris or Ctos which means your payment records in Malaysia do not affect your credibility in Australia. Let’s also take a look at the risks involved in investing in Australia. 3 MAIN RISKS TO TAKE NOTE WHEN INVESTING IN AUSTRALIA 1.

Market value VS Contract Value

In Australia, it is actually possible for the property which you purchased at contract price to be valued differently upon completion of the project. Case in point, one of my friends bought an apartment at Docklands Melbourne two years ago for the price of AUD 575,000. Upon completion this year when the handing over of the property was

Sabahans residing in Perth and enjoying the lifestyle it has to offer due, he was informed that the value of his property is only worth AUD 540,000. That would mean not only has he lost a value of AUD35,000, he needs to top up that difference as his bank loan is not based on his contract value of AUD575,000!

business might not be doing well or there could be some unforeseen circumstances. The risk lies nearer to the completion date: will we be financially able to obtain a loan? If we can’t obtain a loan, then we risk losing the 10% deposit.

As a foreigner, you are only allowed to purchase new properties or off the plan properties. The risk involved in this is that when the properties are completed, you can only sell this to a PR or local resident. Therefore should you invest in a property thinking of flipping it, do ensure that it is in an area that the locals would buy from you and not mainly for the international market only. For Melbourne, there are a huge number of apartments being built within the CBD area but local resident feedbacks indicate that they will not stay in the CBD area. Therefore the challenge is to sell it to someone who is a local citizen or PR and wants to stay in the city.

There is so much more to share but I do not think I have enough space to write on this edition. However, do join me when I conduct future public talks on investing in Perth! Till then, keep calm and continue to invest in properties!

Loan approval near settlement date

The beauty of investing in a new off the plan property in Australia is that you only pay a 10% deposit and you pay nothing else until completion of the project. The risk factor kicks in once you starting applying for a loan for the property 3 months before the completion of the project. Some of us might be financially stable today as we pay the 10% deposit but 2 years down the road our

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BANKING AND INVESTMENT NEWS

$₤ € BANKING & $ INVESTMENT

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

Surge Forecasted Post-GST

ith only three months remaining before GST is implemented, there’s a forecasted rush for people to acquire property and to avoid paying the additional 6% tax. If that happens, will the Malaysian property market become mobilised?

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Michael Geh Property market transactions may surge in the run up to the start of Goods and Services Tax on April 1, a real estate agent Michael Geh said. The FIABCI Malaysia vice-president said those who can afford it will be rushing to buy homes in the three months before GST.

“The GST applies equally on both newly completed and second-hand older properties so buyers who are able to will be in a rush to buy properties to avoid paying the extra six per cent,” he said in a press conference.

Last year, the National Property Information Centre (NAPIC) revealed that overall residential property market transactions in the country dropped from 272,669 transactions in 2012 to 246,225 transactions in 2013.

Geh said after the GST, some buyers may wait to gauge the situation before making a commitment.

The primary property market refers to newly built units direct from developers.

“There will still be transactions after April as people still need to buy their first homes, to upgrade or to downgrade from their current homes, but it will be slower compared to the first three months of this year,” he said.

However, the secondary property market — for second hand or older houses — transactions only dipped slightly. It recorded 212,428 transactions in 2012 and dropping to 205,035 transactions in 2013.

The primary property market was affected the most, dropping from 60,241 transactions to 41,190.

Knight Frank Asia-Pacific Residential Review January 2015

Latest report on Asia Pacific residential investment scenario

night Frank Asia Pacific, the independent global property consultancy has launched its Asia-Pacific Residential Review for January 2015.

Providing a complete view of the major taxes incurred when buying, holding and selling a residential property, the report analyses the costs of residential investment in Asia-Pacific. COMPARING TAX BURDENS ACROSS ASIA-PACIFIC Using a hypothetical residential investment scenario, the report investigates the tax liabilities borne by cross-border investors in the region – the focus is on the eight markets in Asia-Pacific that allow foreigners to invest more liberally, without residence requirements in particular.

there is also a need to understand potential liabilities. One of the most significant of these is undoubtedly tax. Be it a tax on acquisition, holding or exit, returns on all residential property investments are impacted.”

in the region, with Cambodia having some of the lowest. Not only are these two markets more expensive than the other markets, foreign investors have to shoulder a significantly heavier tax burden than their local counterparts.

Holt adds, “Helping balance the books has not been the only motivation for the introduction of new taxes when it comes to property. As a macro-prudential tool, taxes have been introduced to cool residential markets – markets ironically buoyed by stimulus measures and the low interest rate environment we have seen since 2009. The strong price growth in a number of these markets has led to numerous rounds of interventions by policy makers as they look to address the issues of affordability and household debt, with tax being one of the key tools at their disposal.”

The disparity between tax burden on foreign and local investors is explained by:

KEY FINDINGS 1.

Mr Nicholas Holt, Head of Research for Asia Pacific, says, “Total returns are not the sole concern of investors looking at real estate;

Investment Premium

•

Some markets effectively charge an “investment premium”, essentially the additional tax a purchaser would pay on the property as an investor as compared to self-use. The premium also varies between foreign and local buyers.

•

Markets like Cambodia, Japan, Malaysia and South Korea do not impose an investment premium on either local or foreign buyers.

Regional snapshot on price growth

•

Australia and New Zealand continue to see solid price growth, sentiment improved in India, while China and Singapore continue to see prices slide.

•

Five out of the 10 mainstream residential markets in AsiaPacific saw prices increase in Q3 2014, as reported in Knight Frank Global House Price Index.

Australia: A higher income tax* imposed on foreigners Hong Kong: A cooling measure of 15% Buyer’s Stamp Duty on foreigners Malaysia: A combination of higher income tax* and cooling measure of higher Real Property Gains Tax imposed on foreigners Singapore: A combination of higher income tax* and cooling measure of 15% Additional Buyer’s Stamp Duty imposed on foreigners * Please refer to the centre spread (pages 4 & 5) of the report on major taxes for individual homebuyers.

Tax Burden •

Singapore and Hong Kong impose the highest tax burdens on residential property investments

Japan is the only country that bills locals more, as its local inhabitant tax is only levied on residents.

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BANKING AND INVESTMENT NEWS

Malaysia Has Liberal Policies On Foreign Ownership is price pressure here and land is a state matter with different pricing limits for foreign ownership. However, they are allowed to buy freehold, landed properties and high-rise condominiums in these three most popular areas. Foreign buyers in Penang are subject to a minimum threshold of RM1 million for condos and RM2 million for landed properties on the island, and RM1 million for all types of properties in Seberang Prai on the mainland.

ven as the Asean Economic Community (AEC) heads towards the goal of regional economic integration by 2015, the regional property markets continue to see restrictions among member countries. Here is a quick roundup of Asean 5 comprising Singapore, the Philippines, Indonesia, Thailand and Malaysia. The conclusion is that Malaysia seems to be the most liberal in the case of foreign property ownership although land is a state matter. If a foreign national wishes to purchase a residential property in Malaysia, he must therefore make an application to the state authority to obtain the state consent before he completes the transaction. If this is not complied with, the sale or disposal can be rendered null and void. Even with this additional level to overcome in order to complete a purchase, foreigners can own and purchase freehold land and other types of properties, landed and high-rise projects, industrial and commercial properties, anywhere in the country as long as they are

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prepared to fork out a minimum of RM2 million. Only Malay reserve land is prohibited. They can own properties 100% under their names. Therefore, despite the various pricing thresholds in the different states and the need for state consent, these restrictions seem minute compared with the compliance in other countries. While the current interest among Malaysians and well-heeled Singaporeans are Britain, Australia and the United States, perhaps in the very distant future, the property markets closer to home will be more appealing and the buying process more cohesive and integrated among the people who reside in this region. Knight Frank Asia-Pacific head of research Nicholas Holt considers four of these five markets. THAILAND The last couple of years saw the marketing of Thailand’s condominiums in Malaysia. Foreigners are allowed to buy into this market as long as local Thais own

51% of the project. This is by far the most straightforward of purchases among individuals and corporations. Buying land is more complex. A number of foreigners have bought into this market but the number is not big with Malaysian, Singaporean, British, and Hong Kong investors among the investors. Compared to the Singapore and Hong Kong real estate, Thailand is many times more affordable for investors from these two countries. People buy into the market because they like the culture and shopping opportunities there. The political uncertainties and the disruptions to law and order have not dampened appetite. Every couple of years, an issue erupts but the city bounces back. Thai developers sell quite well. Bangkok, Phuket are the top destinations, followed by a lesser degree of interest in Pattaya and Chiangmai, and a smaller number in Koh Sah Mui. MALAYSIA The key markets are Iskandar Malaysia in Johor, Penang in the north and the Klang Valley. There

In Johor, the minimum price cap is RM1 million but they are allowed to buy most types of properties, while in Selangor it is RM2 million in most of the districts. In the Federal Territory, the minimum threshold is RM1 million. These restrictions aside, the last couple of years have seen a greater interest in locations such as Kota Kinabalu in Sabah among Asian buyers. Malaysia also has a Malaysia My Second Home programme under the Tourism and Culture Ministry which is open to all countries. The programme has numerous requirements which include a minimum monthly income, minimum liquid assets, a fixed deposit, plus various other rules. It was launched in 2002. SINGAPORE This market has always been attractive to Malaysians, Indonesians and Chinese nationals. Prices have kept going up from 2009 to 2013, prompting multiple rounds of cooling measures. The market has been going down for over a year and will continue to cool in 2015. The commercial and office market is quite strong. In October the government said there was some distance to go in achieving “a meaningful correction”, signaling “an engineered slowdown”.

Base Rate To Create Stiff Competition Among Banks About 80% of housing stocks is with Housing Developers Board units while 20% in private housing market but this 20% plays a significant in the overall market. When a project comes up, the prices move up, and fingers point towards the foreign buyers but the reality is that, it is the Singaporeans who are pushing up house prices. Therefore, it all depends on what the government wants, and how far they want to drive prices down.

The research house expects the implementation of the new BR mechanism to stir up competition among banks. Nonetheless, the outcome will depend on the final ELR being offered to borrowers. Affin Hwang Research said it does not think that the implementation will significantly improve a banks’ bottomline over the longer run though accepting customers with a higher risk profile will enable a bank to price the ELR higher and hence earn a more profitable net interest margins (NIM).

Interest rates could likely inch up midway through 2015 in tandem with the rates in the US; challenges are expected as the US dollar has an indirect effect on the Singapore dollar. It is packaged to a basket and US dollar makes up a large part of it. The

However, that would mean potentially higher default rates in future and any loan pricing will still be dependent on management’s risk appetite.

government may possibly taper stamp duty but this is still uncertain. Singapore is a good market for the long term and investors like the safety and liquidity aspect of their investments. INDONESIA It is a bit more complicated here and the market is cooling. Foreigners are restricted as the market is regulated. People buy leaseholds through proxies and corporations. Legality of some of these transactions may be questionable. President Joko Widodo was thinking of opening up the property market but the understanding is that it is not going to happen. Jakarta properties are predominantly a domestic market and a foreigner is not going to get freehold title like in Malaysia. The Indonesian market is regulated. THE PHILIPPINES Knight Frank declined to comment on this market. According to various blogs and websites, investing here seems trickier than in the other Asean 4. Purchasers have to be 100% in the name of a Filipino spouse. In the case of a corporation, it must be 60% Filipino-owned.

Banks And Affin Hwang Investment Research

he new base rate (BR) mechanism will stir up competition among banks and Affin Hwang Investment Research expects banks which have set a lower BR and effective lending rates (ELR) such as Maybank and Public Bank, which also have strong niche in consumer financing, will have an initial edge. “Nonetheless, loan pricing will still depend on management’s risk appetite. Maintain Neutral on the sector,” it said on Monday, adding its top stock picks are Public Bank and Hong Leong Bank. Affin Hwang Research expects the various banking institutions to offer borrowers the ELR based on the new BR. The new ELR is based on the BR, which is the banks’ benchmark funding cost as well as a spread, of which is

comprised of a liquidity premium, credit risk, overheads, statutory reserve requirements (SRR) and a profit margin.

“Apparently, Maybank’s BR is the lowest at 3.2% followed by Public Bank at 3.65%, Standard Chartered at 3.67% and Citibank at 3.7% while the rest of the banks base rate have been set at an average 4%. “The shift to the benchmarking against funding cost allows banks to adjust the future ELR accordingly to match movements in their cost of funds due to fluctuations in KLIBOR as well as potentially higher funding costs that may arise in future,” it said.

The research house maintained its Neutral rating on the Malaysian banking sector given a muted earning outlook going into 2015, as we foresee continuous NIM pressure, further weakening in loan growth, lacklustre capital market activities (due to heightened risk-aversion). “Overall, given the new BR framework, we believe that the impact on banks’ profitability will be relatively immaterial, and hence banks with a strong niche for consumer financing such as Public Bank, Maybank, Hong Leong Bank and Alliance Bank will continue to defend their franchises. “For sector exposure, we favour Public Bank and Hong Leong Bank, given a more stringent track record in credit underwriting standards and niche in the domestic retail financing markets,” it said.

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COFFEE TALK | kopiandproperty.com

Kota Kinabalu Property Market

SHORTAGES SOON?

ow many foreign workers would you find in a construction site in Sabah today? Well, except for the site supervisors, I think nearly everyone is a foreign worker. Of course, not just true for Sabah but Peninsular Malaysia too. The problem with over-reliance is that if some unforeseen circumstances do happen, it will affect the construction and thus the actual property development’s completion date itself. According to a local daily report, it is said that 95% of the construction sector in Sabah is reliant on foreign labour. Yes, it’s 95%. Needless to say, if these foreign labourers suddenly disappeared from the construction sites, the majority of all property developments would be affected. Even today, it is already facing labour shortages, especially because developments bought less than 3 years ago are in progress of being built and any delay comes with late penalties. According to the Sabah Housing and Real Estate Developers Association (SHAREDA)’s President, Datuk Francis Goh, the property sector is a very important contributor to Sabahs economy. Thus, the

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industry needs a sufficient and consistent supply of workers. This will help in all the projects which is being built whether they are government related ones or private ones. As usual, locals are not interested in these jobs which are deemed to be tough and low level. Thus, the number of foreign workers continue to increase with the booming property sector for the past many years. In fact, another important factor why these numbers would reduce is also because of the release of the Royal Commission of Inquiry last month. This will definitely see more action being taken on the undocumented migrants in the state and this will indirectly affect the number of workers available in the construction sector. Many more will be deported once caught. Personally, I think the developers just have to do things the correct way. If they hire illegals to save on documentation fees, in the long term it would come back to haunt them. If however, everyone follows the usual rules and regulations, I think the state government would be clearer on what to help and how to help. Currently, I sense a disconnect and I seriously do not think anyone can say for sure how many construction workers are

actually needed. Once this is not transparent, there’s no way that action can be taken. No, I do not think the locals would take up the job even if they pay slightly higher because it’s the perception too. Not many Malaysians would want to slog under the sun together with a majority of foreign workers. Would you? I also believe that the numbers being contributed to the Sabah economy from the property sector is huge and the state may have to do more to ensure this ‘engine’ does not stall. Do remember that once the workers leave or are deported, the construction work slows down and the completion dates delayed. Very soon, the risks to build becomes far higher than the expected profits and the smaller ones may just opt not to build. In the future, no one benefits from this. The industry slows, the number of output goes down and well, with the same demand, the prices would go up. I just hope that the state government and the developers are working together because the Sabah economy is at stake here, not to mention a home sweet home for majority of all Sabahans. (I am partially Sabahan too by virtue of my wife being from Sandakan, haha.)

SOARING AND TUMBLING

AFTER GST LIKE AUSTRALIA? NOT LIKELY

roperty transactions soaring since 2009 – 2011. Property transactions started tumbling in 2012 and continued in 2013 and should still continue in 2014. What about the effect of GST? Would everyone be rushing to buy 1-2 quarters before GST and push up the prices further and 1-2 quarters after GST, the prices come tumbling down, like what happened in Australia many years ago? CEO-Agency of property consultancy PPC International Sdn Bhd Siva Shanker says that buyers would be snapping up properties one or two quarters before GST but property prices would then find a level and stay there. It is unlikely to follow the example of Australia.

Always invest with the big picture in mind. GST is a new form of tax replacing the current one that we have. Do not buy with GST in your mind as the main factor affecting it. This is just like when someone tells you that Stock ABC is going up because so and so is buying into the company. Yes, you may earn big money but it may also mean that you lose big. Fundamentally, why did you buy in the first place. For retirement? Then, there should not be a change just because of GST. For your children? Then, starting earlier is definitely better than later because no one actually knows the best time to buy.

Happy ‘GST’ thinking if you still think GST is the main reason for buying or not buying.

He further said that his personal views are that 2013 and 2014 are slowdown years. 2015 is when the footing is found and recovery would start from 2016 onwards. CH Williams, Talhar & Wong managing director Foo Gee Jen says that he expects an 8-10% jump in price after GST and for landed property at an even stronger 10-15%. He said, he does not see an oversupply in landed but for condo, especially SOHO and SOVO he sees an oversupply already building up. In my personal view, I think many of us including myself know very little about GST. It is after all the first time in our history that GST will be implemented. Thus, when we hear people saying GST will push prices up, some would immediately make a decision to buy. Haha. Then, when someone says that GST induced price up is temporary, some may think it’s best to invest in something else first and wait till the situation becomes clear. How long should we wait for the situation to become clear?

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PROPERTIES IN 2015?

TOUGH TIMES

he Real Estate and Housing Developers Association (REHDA) has a few negative news for the market for 2015. It said that 2015 is going to be tough times ahead for their members because of the rising costs of doing business, tight monetary policy and also the new GST. I think the rising costs of doing business encompasses everything including the compliance costs, the material costs, the labour costs etc. As we noted, there are still shortages of construction workers in the industry.

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The compliance costs most of the time would be the ones caused by the state governments. True enough, REHDAâ&#x20AC;&#x2122;s president Datuk Seri Iskandar Mansor said that depending on states, the premium charges are contributing tremendously to the overall cost of doing business. Thus, this now varies between three to eighteen percent. I seriously wonder which state is he talking about. GST is nothing more than a negative sentiment caused by uncertainty. As soon as everyone understands that the uncertainty they are thinking about is actually a certainty, this would no longer figure in their decision of whether to buy

or not to buy. The question is when, right? Letâ&#x20AC;&#x2122;s assume this would take six months. REHDA did suggest something beneficial for the first time property buyers. He said that GST should be exempted from properties which are priced below RM500,000, specifically for first-time buyers. This would help them to get a roof over their head. In fact I think this may be faster than all the PRIMA or even other statesâ&#x20AC;&#x2122; affordable housing plans. I know of a few states which have spoken about this affordable housing for the longest time and yet until today, it is still just words that it would be ready in the near future. For these first-time home buyers, I think this request is valid and should be approved. Whether or not it can help a lot is another matter because if I am a first-time home buyer, I would also consider the secondary properties and not just the primary ones. After all, there are still attractive properties amidst the current market. Prices for the secondary market has not climbed a lot when compared to the primary ones.

Personally, I think demand is still strong, just that for now it is subdued. While pricing is one issue, I think the main issue is a combination of pricing as well as negative sentiment more than anything else. Just a few years ago, everyone was buying and queuing for new properties and then the prices just shot up through the roof. Suddenly, the cooling measures came because the prices were crazy and now, many of the buyers are hoping that the measures would push down prices. Seriously, I do not think the cooling measures would push down prices. Perhaps it has helped moderate the price increase. Perhaps it has helped to pressure some developers to price their properties lower so that they can sell faster. However, price decrease is not going to be a by-product of the cooling measures. Prices would only come down a bit more if the sellers can hold on longer and the buyers continue to rent before they buy. Prices would move downwards more if there is a world financial crisis. Well, if there is another crisis, many of the current buyers who are waiting would continue waiting. During normal times, you dare not buy, do you think you would dare to buy during bad times?

PROPERTY?

Anticipating And Waiting

Since this has not worked yet, it means that they would have to should wait a little longer. Surely the sellers cannot wait forever since they have to continue to pay their mortgages right? Let’s be very objective in this small disagreement. There are many first time home buyers, of course. Therefore they should be assisted. However, if house prices suddenly come down, it will affect everyone who has a property today. Every single home owner in Malaysia. Do you think the government, whether federal or state would want to affect every home owner in Malaysia? Think about it. Developers continue to ask the government for more exemptions, lower compliance

costs and many more things so that they can sell their properties, true? Yes, very true. However, their argument from then till now is to ‘maintain their pricing’. All these would help them NOT to increase the prices they sell. Frankly, have they said that with all these exemptions etc, they would REDUCE their prices. Every developer would want profit but every developer is also well aware that all their previous buyers are also looking at how they price their future projects. Come on, first project in the area might be RM500psf, second similar project has to be RM530psf and third project has to be very slightly higher during a slow market. However, do you expect their 4th project to be lower priced than their first project? Think about it. If you are the developer, what would you do? Okay, now let’s be even more objective. If the current low transaction numbers continue, would the sellers not face pressure to sell? Yes, of course they would. They cannot hold forever. If selling is not possible, they would rent it out. Suddenly, the answer is clearer. What if they rent it out, can they hold on for a longer time? The answer is yes. The reason is because even though the current rental yield is no longer positive like previously but based on the

lower prices that the owners bought a few years back, their current rental yield would still be positive. No wonder the fire-sale that everyone was waiting has yet to come. Wait a minute, what if Malaysia goes into a crisis? If Malaysia goes into crisis, it would not be just property prices which would go down, everything would also go down including our yearly increments, our yearly bonuses, the whole economy would slow down and by then, transaction numbers would drop further. At that time, even if the property prices are down, not many people would be confident enough to buy. I believe we should take actions based on what we believe in. If we do nothing, then we would get nothing. If we want to believe the crisis would come soon, then make sure we work hard so that the company would keep us and fire others. At that time, we would be confident enough to buy that property at the price that we have been waiting for. Your actions determine your success. Just remember to guide your actions objectively. Buying the wrong property, irregardless of good times or bad times is still a disaster.

“

Every developer would want profit but every developer is also well aware that all their previous buyers are also looking at how they price their future projects.

“

here are still people who believe that state governments would do their best to help them in their quest for their first property. This belief has truths because many state governments do have plans for more affordable homes. In fact the total number for the next few years exceed whatever number that the state governments have ever built on a yearly basis before this. So, ok, this is quite true. There are people who believe that the cooling measures are meant to reduce the house prices.

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PROPERTY BUYING?

UP IN H1 2015

ssuming you can have just one choice. Do you think buyers would buy more within the H1 of 2015 or H2 of 2015? Actually, this is a trick question. If you had answered ‘H1′, it meant that you are positive about the market. In brief, it means buyers may be rushing to buy before GST or that demand is slowly recovering. Yet, if H1 picks up, it is very likely that H2 would continue the momentum. From other countries’ experience with GST, most of the time, demand may be subdued just right after GST as they are not sure how to react. What if right after GST is implemented, the developers launch a ‘promosi besarbesaran’? Advertisement banners saying that they are absorbing all the GST and on top of that offering some free stuffs such as electrical goods or renovation packages? Fuel prices remain at current prices and the people have more money to spend since they are spending less on fuel? Economy moves along and Malaysia hits a lower growth than 2014 but still hit 5%? Okay, all these are presumptions but what’s the likelihood of this happening? Personally, I believe buyers of today are much more informed than yesterday

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due to the easy availability of information. I also believe that Bank Negara Malaysia is more likely to adopt a pro-growth stance instead of worrying about inflation. Petrol prices downtrend is considered a good thing since it takes away the GST effects. Thus, the pressure to increase interest rates is much lower than when oil prices were high and yet GST is looming. Many people continue to predict that the market would continue to slowdown as the cooling measures are still around. I think they are right but be reminded, the current slowdown will not last forever. If you are still ‘homeless’ and are not buying to speculate or even buying for investment, it may be best that you view and offer a price you are comfortable with. As long as it’s also considered equitable, the chances for the seller to accept is much higher than say, 2011, 2012 and even beginning of 2013. Today, it’s a buyers’ market after the crazy price increases for many years. What has happened in 2014? According to National Property Information Centre (NAPIC), eventhough on an overall basis, the numbers of primary transactions increased, this was mainly contributed by property market transactions in Johor. In Klang Valley, this has dropped while in Penang, it has showed a very marginal increase. Do note that Penang

is still a very small property market in comparison and even if it increase more, it is nowehere near Johor or Klang Valley. Second half would have shown that the growth is now negative. Even Johor was not spared. There’s just too much negative news; the toll rates increases, the fall in Singapore’s own property market, the way too many new supply from the huge China developers and more. Competition will be stronger and developers would be holding back, postponing or even launching at much ‘better’ prices. I think for Klang Valley it should recover when the MRT project is nearer to completion. When people can see, then they have higher confidence to buy. When we ask around we would notice that many people are still saying they want to buy but has yet to buy. Some can even afford but still want to see if prices weaken further. Many of the 2012 transactions are entering the market this year, increasing the supply of new units. With the high prices, rental yield has gone down too. In fact for the new units, it is likely to be negative. The incentive to buy for rental yield is thus lower than few years ago. My personal 2015 plans? Buy a good unit for rental yield, even if the yield is zero. Perhaps I may just get a good unit at a lower than usual price. Wish me luck.

PETROL DOWN.

PRICES REMAIN

On the other hand, in some huge departmental stores, some of the restaurants inside are giving out lunch sets or dinner sets at just RM7.90 including a soup, a main course and a drink! Yes, you guessed it, COMPETITION for customers. Even Mc.Donalds has their value sets and KFC. So does It has to be competition because both are not charity organisations. The real reason that all these are happening would always be the consumers. If we are still okay and patronise the restaurants while still lamenting the fact that they are expensive, then we are the real

cause. Don’t get me wrong, it’s not easy to survive when you open a restaurant, I do understand. However, there are many restaurants that are overcharging and all of us know about it. Yet, we continue to eat there. What a great encouragement. Everyone said more competition would push for better services. Very true. Where does the competition come from? It’s from the buyers and users of such services. Why do the majority of us shop around when we want to buy a new smartphone? Most of the time, we would go to places where many phone shops would be operating side by side. That way, we know we would get the best possible price. It’s the same. Is it true that the food that we want to eat, only that ONE shop sells it and only that ONE shop is our only choice? If the answer is Yes, then congratulations to the shop, they can continue increasing their price. Pity the ones who must eat from that one shop only. Until today, there is nasi lemak, with half an egg, some sambal, kacang and timun for RM1.50 and all the way to RM5 or

higher. Do we believe in the power of the people? If we do, it’s also time to exert a little influence on prices that we feel are not justified, not just continuing to post in Facebook comments and then doing nothing. Personally, if I ever come across any restaurants which I feel is overcharging, I would not go there and I would tell everyone I know about it. Perhaps it is just the nature of us Malaysians, we are good people. Therefore, most of the time, we complain and then forget about it. Inflation, according to economists depends on demand and supply. Higher demand, insufficient supply, prices go up. Too much supply, insufficient demand, prices come down. When we go back to the actual foundation for this inflation matter, whether its demand or supply, it points back to us, the people. During good times, even the hotel rooms would be expensive and yet during low periods, the hotels can throw special discounts. Please do not tell me that their operating costs differ between good times and slow times? I know, everyone has their favourite spots. Please

continue to patronise and support them as much as you want. Would I still go to Starbucks? Yes, I would. These days, mostly for those buy one free one offers. I also have some vouchers where I get another free cup of coffee when I buy any coffee there. We shall see what happens when they run out of offers / promotions. Seriously, I don’t think so.

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Everyone said more competition would push for better services. Very true. Where does the competition come from? It’s from the buyers and users of such services.

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read an interesting article in a local English daily. The petrol prices has come down a lot. However, the restaurants said they can’t lower their prices. It’s funny because they said the main reason they could not lower the prices is because their suppliers are still charging them the same. The suppliers meanwhile said that the transporters have yet to reduce their prices after the petrol price drop. The transporters meanwhile are saying that it is hard to estimate how long this fuel price would last, thus, no adjustments.

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FIRST PROPERTY?

Some CONSIDERATIONS

irst property is always the hardest, especially for a white collar executive with less than 5 years of working experience. It’s the single largest item that one would be buying in their lives. Lots of doubts, questions and worry running in my head every time I think about my first property. What if, that first property turned out to be the wrong one?! I do have some savings. Yet not enough and simply not fast enough in terms of savings for the property that I feel comfortable with. With my ‘just enough’ salary, I still have to maintain my normal lifestyle, give some to my family and save a little for that elusive first property. I represent some of those who have graduated outside Penang and somehow have chosen Penang as their new home cum working destination.

Actually, it’s not that different in Penang. I applied for a medium cost apartment and got rejected. I had forgotten that with a total population of 1.7 million people within the state of Penang, I am still considered very slightly above average and thus should not have gotten a unit until those who are more qualified has one before me. It’s a bittersweet feeling, should I be happy or should I be sad? I did not want the low cost apartment but for the medium cost apartment, one’s salary must not exceed RM3,500. Somehow, I overqualified and yet when I look at the condo prices, I knew that I may join those who got rejected in their loan applications. I know the state government is pushing for more affordable homes costing less than RM500,000 in 2015. I hope I get one by then. 2) Acceptance of location

I am a Johorean and I have worked in Penang for the past 2 years. So, what do ‘outsiders’ like me consider before buying their first property? 1) Try first, who knows if you are lucky? In Singapore, it’s tough to apply for an HDB flat especially when there are so many applicants.

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Where should we live? I want to live near to town. I want to live near my friends. I want to live near my workplace. I want a good location which is not far from everything that I want. Ok, perhaps that’s a bit too much. Yet, everyone would have an ideal location in their mind. Actually you can choose any location if you are rich enough. However, I

think everyone should be willing to consider their second choice if they can still reach the places they want, just slightly further away. 3) Managing expectations At our current age, there’s little reason to overburden ourselves. The reason is because the road to retirement is still many years away. If we simple can’t qualify, then don’t try. Just look at the high rejections for loan applications and you understand what I mean. Truth is, a 650sf apartment may be even more suitable for me than a 1,000sf one. Current low cost apartments include those of 650sf costing around RM100,000 and also those which are 850sf for RM250,000. If I can renovate it with some inspiration, I think it would be a home sweet home, for five years or until I can upgrade. Last but not least, do not keep looking at just the new ones. Why not buy one which you can almost stay immediately? I have been to many secondary properties and the truth is, it’s not all bad. In fact, some can be considered very well maintained. Just do your research well, view a few more units. Use a little imagination and make that your home sweet home. I think I should be able to get one soon. Wish all of us luck in 2015.

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PROPERTY LISTING |SABAH

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 www.PropertyHunter.com.my

TERRACE / LINK HOUSE FOR SALE

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SEMI-DETACHED FOR SALE

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APARTMENT FOR SALE

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RETAIL SPACE FOR SALE

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OFFICE SPACE FOR SALE

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INDUSTRIAL FOR SALE

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AGRICULTURAL FOR SALE

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RESIDENTIAL FOR SALE

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WAREHOUSE FOR SALE

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SERVICE RESIDENCE FOR

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COMMERCIAL FOR SALE

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BUNGALOW / VILLA FOR SALE

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PROPERTY LISTING |SARAWAK

CONDOMINIUM FOR SALE

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SEMI-DETACHED HOUSE FOR SALE

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TERRACE / LINK HOUSE FOR SALE

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APARTMENT FOR SALE

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BUNGALOW / VILLA 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 www.PropertyHunter.com.my

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PROPERTY LISTING |SARAWAK

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