Issue 82 - Sept 2016 by Property Hunter Magazine

EAST MALAYSIA’S LEADING PROPERTY PORTAL, MAGAZINE & EXPO

EXCLUSIVE REPORT

ISKANDAR MALAYSIA

A CITY OF FAST MOVING DEVELOPMENT Legal Fee & Stamp Duty : What You Should Know | Shareda Nite : Shareda President, Datuk Francis Goh’s Last Presidential Speech | Dato’ Sri Gavin Tee Challenges that Malaysian Housing is Affordable | Knight Frank Real Estate 1H2016 Report | Foreign Property Ownership Around the World HOT TOPIC

KOTA KINABALU

A WALK DOWN MEMORY LANE

ISSUE 82 RM9.50

Sabah post office and Jesselton before land was reclaimed from sea, 1930s

(Inc GST)

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CONTENTS PRoPERTY SHOWCASE | 14

SETIA SKY SEPUTEH : SEPUTEH’S FINEST. RIGHTFULLY YOURS

PRoPERTY SHOWCASE | 22

THE SHORE Kota KINABALU

MALAYSIA DAY SPECIAL | 24

Kota Kinabalu - A WALK DOWN MEMORY LANE

INTERVIEW | 34

jESSICA YEW & CHARLES RYAN: REDISCOVERING HERITAGE THROUGH ART

HOT TOPIC | 42

LEGAL FEE & STAMP DUTY : What You Should Know

FEATURED EVENT | 46

SHAREDA NITE : SHAREDA President, Datuk Francis Goh’s Last Presidential Speech

HOT TOPIC | 52

FOREIGN PROPERTY OWNERSHIP AROUND THE WORLD

FEATURED EVENT | 62 HOT TOPIC | 64 EXCLUSIVE REPORT | 71

hot topic | 86

DATO’ SRI GAVIN TEE CHALLENGES THAT MALAYSIAN HOUSING IS AFFORDABLE KNIGHT FRANK REAL ESTATE 1H2016 REPORT

ISKANDAR MALAYSIA - A CITY OF FAST MOVING DEVELOPMENT • Iskandar Malaysia : The Main Southern Development Corridor In Johor • The Caspian : Hidden Treasure of the South • Propenomy of Iskandar Malaysia - Is Iskandar Really in Trouble? Malaysian Property Sector After the 3% Cut of OPR

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PROPERTY SHOWCASE

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PROPERTY SHOWCASE

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PROPERTY SHOWCASE

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PROPERTY SHOWCASE

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PROPERTY SHOWCASE

The Shore is located at Kota Kinabalu City Centre or Downtown KK, which also the Central Business district (CBD). This property is located on the narrow coast overlooking Gaya Island. This is where most hotels, travel agents, transportation bases and most of the action are found. It is a short 10-minute drive from Kota Kinabalu International Airport, the second busiest airport in Malaysia after Kuala Lumpur International Airport. Absolute prime location â&#x20AC;&#x201C; Strategically located in the city centre, The Shore has many tourist spots, and various restaurants to suit every budget along the streets of Jalan Tun Fuad Stephens, Jalan Pasar Baru, Sinsuran, Segama and for something more local, the night market â&#x20AC;&#x201C; which is also the largest night market in the city. There are also a number of malls within walking distance, such as Imago, Oceanus, Centre Point, Parkson, KK Plaza, Wisma Merdeka and Warisan Square. Another attractive shopping alternative is the Filipino market selling handicrafts. This is where one can find local food products, souvenirs, and traditionally hand-made toys. Pearl lovers should also not miss this place. Some of the KK Islands are also closely accessible from The Shore, only 15 minutes away by boat. There are three boat/

This modern development comes with the best in-house

ferry terminals, Jesselton Point Ferry Terminal, Sutera Harbour

facilities such as a swimming pool, gym room facilities, sauna

Marina Jetty and STAR Marina that can take you to most Sabah

and a rooftop barbecue area, as well as an exclusive and

islands on the west coast.

boutique-design retail mall on the ground and first floor of the building.

Many government institutions (Bank Negara, City Hall, High Court, Library & Pos Office) and international corporations like

Once completed, The Shore tower will become a striking

banks have set up branch offices here.

landmark in Kota Kinabalu, with 25 floors offering unobstructed views of the city, the South China Sea and Mount Kinabalu.

The Shore comprises two towers with 561 SOVO/SOHO units of

Exclusive privately owned premier sea view and waterfront

various sizes from 409 sq ft to 729 sq ft and serviced residence

units offer breathtaking views of the sunset and ocean. All

(Citadines, managed by the Ascot Limited). The Citadines

SOVO/SOHO units are fully-furnished and have everything you

Waterfront Kota Kinabalu will be the first international brand of

need to move right in.

serviced residence in Sabah.

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HOT TOPIC

Kota Kinabalu

A WALK DOWN MEMORY LANE Just one look at present-day Kota Kinabalu or KK, with its mesmerizing sunsets reflected on the South China Sea, and lined with concrete buildings all vying for this spectacular scene, one would be excused for thinking that this is fairly a new city. The only remaining remnants of the old city â&#x20AC;&#x201C; otherwise previously known as Jesselton â&#x20AC;&#x201C; are the old post office building and the Atkinson Clock Tower, signifying the almost century-long British colonialization. Words Property Hunter Photos courtesy of The Sabah State Museum

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hen the British North Borneo Company (BNBC) began to establish colonies throughout North Borneo in the 1880s, it founded a small settlement in the area known as Gaya Bay, which was home to the Bajau people. When the first settlement on Gaya Island was destroyed in 1897 by the famous Bajau-Suluk fighter, Mat Salleh, BNBC relocated its settlement to Gantian Bay (now Sepanggar Bay) in 1898. Nonetheless, they later found the location to be unsuitable and made another move to a fishing village called Api-Api. The new settlement was founded by Mr. Henry Walker, a British Land Commissioner, who identified a piece of 30-acre land opposite Gaya Island. The site was chosen due to its proximity to the North Borneo Railway, as well as to its natural port that provided good anchorage -- up to 24 feet deep. By the end of 1899, constructions had begun to fill Api-Api with shoplots, a pier and multiple government buildings. Api-Api was later renamed Jesselton, after Sir Charles Jesselton, who was the then-Vice Chairman of BNBC. Jesselton went on to become a major trading post of North Borneo. However, when the Japanese took over Borneo during World War II, Jesselton was once again renamed Api-Api. Despite its initial prosperity, Jesselton (Api-Api) suffered a great destruction due to a bombing by the Allies in 1945. Of all the buildings in the area, only a handful survived -- one of them being the old Post Office, which is now the Sabah Tourism Board Building. On 22nd December 1967, the State Legislative Assembly, under then-Chief Minister Tun Mustapha bin Datu Harun passed a bill renaming Jesselton as Kota Kinabalu. Kota Kinabalu was then upgraded to city status on 2nd February 2000.

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HOT TOPIC

Bond Street (Gaya Street)

Padang Merdeka

Jesselton Harbour Strip before land was reclaimed from sea, 1950s, Robert Knowles

Bond Street (Gaya Street), 1950s, Robert Knowles Originally named Bond Street, Gaya Street, which is located in the Kota Kinabalu Central Business District has been the centre of business for over a

Jesselton Point (Jesselton Pier)

Playing sports, Town Padang (general view from the old block), 1950s, Robert Knowles Located just a short walking distance from the Atkinson Clock Tower, the

hundred years.

historic Padang Merdeka has lived to

The wooden shops with nipah roofs are

parades during its century-old lifetime.

long gone but here is where generations-

It was here that the historic ceremony

old family businesses are still thriving,

that marked the formation of Malaysia

passed down from father to child.

in 1963. In 2010, this iconic field became

bear witness to numerous matches and

the venue of the first nationwide

During the British colonial time, Jesselton Point was known as the Jesselton Pier. It was the main harbour where goods came into the city. In 1967, it was renamed as the Kota Kinabalu Ferry Terminal. After its privatization in February 2006, the name was once again changed to the Jesselton Point Waterfront. It has since become one of the main city attractions in Kota Kinabalu.

Malaysia Day celebration on 16th

Situated north of downtown Kota

September.

Kinabalu, this quaintly scenic place has an unmistakable historical feel to it â&#x20AC;&#x201D; complete with olden daysâ&#x20AC;&#x2122; snapshots of Kota Kinabalu city (Jesselton) and vintage red English phone booths. Jesselton Point Waterfront serves as the only ferry terminal for Labuan-bound passengers as well as the main (and cheapest) boat terminal for the Tunku Abdul Rahman Marine Park and Gayana Island.

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Atkinson Clock Tower Jesselton Airfield (Kota Kinabalu International Airport Terminal 2)

View of the old Sabah post office and of Jesselton before land was reclaimed from sea, 1930s, Photo courtesy Sabah Museum via Sabah Tourism Board

Atkinson Clock Tower and new police station, 1950s, Robert Knowles

An iconic landmark at KM0 Kota

One of Sabah’s oldest architectural heritage, the Atkinson Clock Tower was once known as the Atkinson Memorial Clock Tower – a commemoration of the first district officer of Jesselton, Francis George Atkinson who died of malaria at the age of 28 in December 1902. A twofaced clock was presented by his mother as a tribute to him and the erection of the clock tower was later commissioned on April 20th, 1905. The century-old structure of the clock tower was originally built using Mirabau wood and was made by William Potts and Sons in Leeds, England. At 50-feet tall, the Atkinson Clock tower stands mightily atop a hill overlooking the city. In the olden days, ships calling port at the wharf used the tower as a navigational landmark due to its visibility from the sea. It was illuminated at night and was used as a shipping landmark until the 1950s.

Old Post Office Building (Sabah Tourism Board Office)

The first air control tower and passenger terminal, 1950s, Robert Knowles The history of the Kota Kinabalu International Airport (KKIA) dates way back in the 1940s when it was first used as a military airfield, which was built by the Imperial Japanese Army during World War II. Back then, the airport was known as the Jesselton Airfield. However, towards the end of the war, the airfield suffered severe bombings by the Allied Forces and subsequently led to the surrender of the Japanese army in 1945. In the 1970s and 1980s, a new terminal building was built on the other side of the runway. Following this new addition, almost all commercial flights were shifted to this newer and larger terminal. In January 2007, the original terminal (Jesselton Airfield) was rebranded as Terminal 2, whilst the newer terminal became known as Terminal 1. As of December 2015, the KKIA Terminal 2 was phased out, moving all flights to KKIA Terminal 1, which is the sole airport in Kota Kinabalu at the moment.

Kinabalu, the Sabah Tourism Board building is one of three pre-war structures that still remain in Sabah to this day. The construction of this building started back in 1916 by a Sandakan-based printing company. Two decades later, in 1936, the building was renovated to accommodate the Treasury, Audit, Bank Agency and Post Office. During World War II, the old Post Office building sustained some damages from the bombings by the Allied Forces. After the war in 1945, the building was repaired and went on to become the headquarters for the Posts and Telecommunications, the Treasury, the Audit, the Town Board, the Resident Office, the District Office and the Attorney General’s office. The building was then restored as the Kota Kinabalu Post Office until September 1986. In June 1987, the Ministry of Tourism, Culture and Environment took over the building to become the headquarters for the Sabah Tourism Board and Tourist Information Centre until this present day.

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PROPERTY NEWS

PROPERTY, INVESTMENT & BANKING NEWS KEEP TRACK OF THE TRENDS IN PROPERTY AND REAL ESTATE

Sabah

SB IN

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International

Sarawak BK

West Malaysia

Banking & Investment

AmBank Hopes Financing Hits RM1 Billion

Ambank Group hopes its

The agreement was signed by

partnership with Credit

Ambank Islamic CEO Eqhwan

Growth Corporation Malaysia

Mokhzanee Muhammad

Bhd (CGC) to provide

and CGC President/CEO

financing to Small Medium

Mohd Zamree Mohd Ishak,

Enterprise (SME), will reach

witnessed by Ambank Group

RM1 billion in six months, as

Chairman Tan Sri Azman

reported in Borneo Post.

Hashim, CGC Chairman Datuk Agil Natt and Sulaiman.

Ambank Group chief executive officer (CEO) Datuk

Sulaiman said Ambank

Sulaiman Mohd Tahir said

was keen on continuing

the first tranche of RM300

this partnership with CGC

million, launched last year,

to further assist SMEs

was fully subscribed within a

with funding considering

year, resulting in an additional

their large contribution to

RM300 million being launched

Malaysia’s economy.

on Monday (Aug 8). “Ambank acknowledges that

Meanwhile, Ambank also launched two financing packages, Ambank BizSolutions Kontrak and Ambank BizSolutions 2Trad3

the fees for our customers so we can further grow this business going forward,” he added. Meanwhile, Ambank also

facilities which are specifically tailored for a specific project, varying with the type of contact such as construction, supply and services, among others.

“In the next six months, we

SMEs are an important driver

hope to increase lending to

for the economy and we have

RM1 billion,” he told reporters

disbursed about RM12.1

at the portfolio agreement

billion worth of loans to SMEs

signing between Ambank

in Malaysia so far.

Ambank BizSolutions 2Trad3.

financial assistance to

“CGC is also seriously looking at reducing

Ambank BizSolutions Kontrak

export transactions for food

offers contract financing

industries.

Islamic and CGC on Monday, Aug 8.

launched two financing packages, Ambank BizSolutions Kontrak and

The Ambank BizSolutions 2Trad3, on the other hand, extends the necessary fund autoparts import and

South East Asia Property Awards (Malaysia) 2016 Names the Year’s Finest Real Estate The time has come again to

and Industry, who gave the

celebrate the most innovative

opening address.

looking vision in sustainability.

led by its founder and group CEO, Chuah Theong Yee,

Putting an emphasis on the

who received the prestigious,

Malaysian real estate at the

“Inheriting its legacy of

importance of corporate social

excellence in plantation, Sime

non-compete Real Estate

South East Asia Property

responsibility in the property

Personality of the Year award

Awards (Malaysia), presented

Darby continues its quest in

sector, three equally deserving

nation-building, from putting

from the editors of Property

by Hansgrohe and organised

winners were chosen to

Report, Asia’s leading luxury

by PropertyGuru Group.

food on our table to building

receive the Special Recognition

roofs over our heads,” the

real estate, architecture and

in CSR: LBS Bina Group

Sime Darby Property was

independent judging panel

design magazine, and official

Berhad, Mah Sing Group and

awarded the year’s top

noted. “Given its significance

media partner of the Awards.

Matrix Concepts Holdings

honour – Best Developer

and constant reinvention,

Berhad.

(Malaysia) – for its long-term

Sime Darby is certainly part of

commitment to developing

developing Malaysia’s history.”

developers and projects in

quality townships, in front of

Known in the industry for his aggressive and visionary

The judging panel also

leadership, Chuah dedicated

introduced a Best Boutique

his award to the entire

a 300-member audience that

Another big moment for the

Developer category for the

Mitraland staff and to his

included Guest of Honour

conglomerate was when it

first time in the programme’s

was announced as one of the

family. “This is an unexpected

Yang Amat Mulia Tunku Seri

three-year history. The award

yet tremendous honour….  It

Menanti Tunku Ali Redhauddin

two victors – along with triple

went to Mitraland Group for

winner UM Land – in a new

is a wonderful feeling to know

ibni Tuanku Muhriz, chairman

its well-conceptualised, well-

that the work you do is being

of PropertyGuru Malaysia, and

category: Special Recognition

designed and well-priced

in Sustainable Development.

appreciated and considered

VIP guest Yang Berhormat

boutique projects such as

to be of great value amongst

Datuk Chua Tee Yong, the

The two companies were

Kiara 1888 and Cascades.

chosen for their exemplary

your peers. My team and I are

Deputy Minister of the Ministry of International Trade

track record and forward-

Mitraland’s delegation was

proud of our achievements and will continue to strive www.PropertyHunter.com.my

NEWS

to create more incredible moments for

Prem Kumar,

our purchasers, investors and business

executive director

partners.”

of Jones Lang Wootton, and

Multiple awards went to the Kuala

chairman of this

Lumpur-based green condominium

year’s central panel

project, Serai, Bukit Bandaraya, KL by

of judges.

BRDB Developments Sdn Bhd. Aside from clinching the Best Luxury Condo

He added that the

Development (Central Malaysia) trophy, it

long-term growth

also collected two Best of the Best honours

of the Malaysian

for BRDB: Best Green Development and

property would

Best Residential Development (Malaysia),

not be hampered by

the latter qualifying them for the regional

a temporary market

grand finals of the South East Asia

slowdown, especially

Property Awards 2016 in Singapore this

in view of government policies that have

November.

always encouraged growth of the sector

The winners of the third annual South East Asia Property Awards (Malaysia) 2016, with Guest of Honour Yang Amat Mulia Tunku Seri Menanti Tunku Ali Redhauddin ibni Tuanku Muhriz, chairman of PropertyGuru Malaysia

The black-tie event at the InterContinental Kuala Lumpur on 11 August was preceded by the inaugural Property Report Congress Malaysia 2016, which debuted

as one of the key contributors to the Also moving forward to the finals is two-

in the country right before the annual

advancement of the Malaysian economy.

Gala Dinner. Attended by around 100

time winner Medini 10 by Medini Iskandar Malaysia Sdn Bhd, which earned the

Kumar led the 2016 central panel of judges

Best Commercial Development and Best

that comprised the country’s prominent

Commercial Development (Malaysia)

leaders in real estate development,

awards.

management, architecture and design.

welcomed seasoned speakers such as Kumar and Sheldon Fernandez, country manager of PropertyGuru Malaysia, to discuss investor sentiment, and the

The judges have been working together

current state and future of the Malaysian

Genting Property, one of Malaysia’s

in the last six months under the fair and

leading multinationals, also dominated

transparent supervision of BDO, one of the

the evening, coming in with four nods for

world’s biggest accountancy and auditing

its outstanding residential developments,

firms, to deliberate on the eligibility and

Raintree Residences and The Crystal, and

quality of nominations.

real estate industry. Other speakers at the Congress included a who’s who of industry heavyweights, including: YBhg Datuk Hj Sahrom, director

winning two awards in development and design for the latter.

participants, the high-level conference

of the Planning Department, Kuala Lumpur

“Our esteemed central judging panel for

City Hall; Ian Paynton, digital strategist

the third annual South East Asia Property

and founder of Hashtagcontent.com; and

“The annual South East Asia Property

Awards (Malaysia) was very well received

Awards (Malaysia) definitely showcases the

for their credibility and expertise. We

year’s best properties and investments,

couldn’t have been prouder to have them

which have gone beyond mere financial

as our jurors for Malaysia’s premier real

gains and specific attributes pertinent

estate awards,” said Terry Blackburn,

to the difference and enhancement it

founder and managing director of the Asia

has created in the property industry,”

Property Awards.

South East Asia Property Awards (Malaysia) judges, author Khalil Adis and DTZ’s Low Han Hoe. For more information, visit the official website: www.asiapropertyawards.com

according to 30-year property veteran

Sabah Raked in RM2.852b From Tourism Arrivals This Year Sabah has registered

revenue was an increase of

1,337,126 tourist arrivals as

5.3 percent as compared

of May this year, generating

with RM2.709 bilion for the

revenue of RM2.852 billion,

same period last year from

said state Tourism, Culture

1,295,484 tourist arrivals.

and Environment Minister Masidi Manjun, as reported in Malaysiakini. Answering a question from Lajim Ukin (PKR-Klias) in the Sabah state assembly sitting today, Masidi said the

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“From the number, 882,109 were domestic tourists and 455,017 foreign tourists,” he said, adding that China accounted for the

highest number of tourists, while South Korea, Brunei and Taiwan were second, third and fourth highest respectively.

respective countries with

However, he said the number

tourists, including by issuing a

of tourist arrivals from the United Kingdom and Australia had dropped, possibly due to safety concerns after a travel advisory was issued by their

regard to safety in the east coast of the state. He said the ministry would therefore increase measures to improve the confidence of ‘Sabah Advisory’, briefing to the head of foreign missions, and familiarisation trips for media and tourism operators on the safety condition in the state.

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NEWS

MRCB & PropertyGuru’s Exclusive Online Strategic Partnership to Market Sentral Suites

Malaysian Resources Corporation Berhad (MRCB), one of Malaysia’s leading property developers, has entered into a partnership with PropertyGuru, Asia’s leading property portal, to develop an exclusive digital campaign for the marketing and promotion of MRCB’s Sentral Suites, Kuala Lumpur Sentral CBD, which is slated for launch in September this year. The deal will see PropertyGuru develop a customised digital marketing

MRCB, Malaysia’s leading property developers, has entered into a partnership with PropertyGuru, Asia’s leading property portal, to develop an exclusive digital campaign for the marketing and promotion of MRCB’s Sentral Suites, Kuala Lumpur Sentral CBD

and branding plan specifically

“We are confident

work with as it is renowned

41 retail units. The serviced

for Sentral Suites, Kuala

PropertyGuru’s established

for setting new milestones,

apartments available are one

Lumpur Sentral CBD worth

regional presence and

and as an industry innovator.

to three bedrooms, ranging

RM4 million – the biggest

its extensive marketing

What sets this apart from

from 651 sqft to 1166 sqft.

digital spend reported by

platform comprising portals,

other partnerships we have

This strategically located

any property development

publications, events, awards,

had previously, is that MRCB

residence offers the best of

company in Malaysia thus far.

project marketing solutions

is entrusting PropertyGuru to

cosmopolitan living in a self-

and more will not only enable

spearhead the whole digital

sustaining city, complete with

us to reach a more relevant

marketing campaign”.

lifestyle-centric amenities

The investment by MRCB also marks its biggest digital marketing and branding

demographic, but also at a lower cost per reach” he said.

“That simply means

tandem with its strategy to

“It is also an efficient and

for all strategic decisions and

better target home buyers,

focused way of engaging with

to work closely with their

who largely use digital

our target customers, who

marketing team to reach

mediums for property search

actively utilize digital platforms

the targets necessary, yet

and research. This was

and will find Sentral Suites,

within a pay for performance

validated by a PropertyGuru

Kuala Lumpur Sentral CBD

marketing model,” he said.

and Google survey which

a very appealing residential

found that 90% of property

development well suited to

spend to date, and is in

PropertyGuru is accountable

Sentral Suites, Kuala Lumpur Sentral CBD is the last

buyers had moved online for

their active lifestyles,” added

their property search and

YBhg Tan Sri Mohamad Salim.

remaining residential plot

research needs.

within the Kuala Lumpur

Mr Sheldon Fernandez,

Sentral CBD vicinity,

Sharing his optimism on

Country Manager of

benefitting from its world

this ground-breaking digital

PropertyGuru Malaysia said

class mass transport hub.

campaign, MRCB’s Group

“PropertyGuru is extremely

With an indicative price of

Managing Director, YBhg Tan

honoured to be named an

RM1100 psf, the exclusive

Sri Mohamad Salim Fateh Din

exclusive partner of MRCB, and

apartments are centrally

said, “Leveraging on a digital

it is exciting times for us here

located, with a dynamic

online campaign is a step in

at PropertyGuru, as we are

contemporary building design.

the right direction for MRCB,

heading this digital revolution

as we want to adopt a more

to market Sentral Suites, Kuala

interactive and engaging

Lumpur Sentral CBD.

43-storey towers, the

“MRCB is the right partner to

of 1,434 apartments and

approach in capturing our target audience”.

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Comprising of three development offers a total

– all conveniently close by. Amenities include: two floors of retail shops at street level, 15 sky gardens, 15 sky pods, gymnasium, an infinity pool, a family fun pool, Jacuzzi, a dance studio, sauna and a games room. For more information on Sentral Suites, please visit: www.sentralsuites.com.my

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INTERVIEW

REDISCOVERING HERITAGE THROUGH ART Words Property Hunter Photos All4One Productions

What started off as a personal collection of rare antique pieces has turned into a mini gallery of Bornean Art. Charles and Jessica named their gallery Ensera, which in the Iban language, means â&#x20AC;&#x153;storiesâ&#x20AC;?. Property Hunter spent the afternoon with the couple who are not only trying to preserve the dying traditional Bornean art, but also to promote meaningful and responsible tourism through their travel company. So what are their own stories?

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Journeys Begin With A Single Step “Originally, I came here doing conservation and community development work,” Charles began. “Getting exposed to the culture and seeing how lovely people are here were what made me fall in love with Sabah,” he continued. Charles Ryan is from Hawaii and has lived in Sabah for about 8 years. Back then, he lived in a village in a small house with 22 other people. Jessica Yew was born here in Sabah but left to KL at the age of 6. Growing up there most of her life, she came back to Sabah 6 years ago as an adult without having much understanding of what it meant to be a Sabahan. “It was only when I came back here that I began to look into my roots. My dad’s Chinese and my mom’s Dusun with a little bit of Chinese, so I tried to understand what that really meant,” she explained. Upon meeting Charles who had spent some time working with the Penan people in Sarawak, it elevated her interests further in the different ethnic groups in Borneo. They both started collecting traditional art pieces quite some time ago. According to them, opening Ensera was more of a selfindulgent excuse really, for them to be able to find and collect more of these exquisite and rare pieces that you can no longer find anywhere else. “This gallery is purely a passion project. We didn’t really open it to make money,” said Charles. With quite a number of antiques in their possessions, they both also hope to create a sense of awareness for the dying local culture. Most of these things are delicate, yet bold at the same time; they’re old, but still, timeless.

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INTERVIEW

Jessica & Charlie in front of Ensera Art Gallery

Meaningful Tourism However, the presence of Sarawak and Kalimantan

Besides the gallery, this couple also run a travel

culture is much stronger in the gallery. “Sadly,

company called Sticky Rice Travel. What sets them

we don’t really have much from Sabah. This kind

apart from other travel companies though, is that

of craftsmanship here has disappeared a long

they tend to shy away from mass market tourism.

time ago.” But Charles says that you can still find

“We see the potential in more responsible form of

old coffins and beautiful totem poles that are

tourism. Tourism that involves the communities of

probably thousands of years old in the forests of

the places we go to and also going to places that

Kinabatangan.

aren’t necessarily developed for tourism yet, like Sapulot,” says Charles. He claims that it’s just as

When we asked them why Sarawak and

amazing and beautiful as other places in Sabah.

Kalimantan’s traditional art is still being produced, they both agree that Sarawakians still have a strong

Jessica continues, “We both love traveling. And when

sense of pride in their traditions.

we do, we like to go to places where the culture is disappearing rapidly. Going to these remote places

“If you go back 100-200 years ago, there was a

is like going back in time and gives you a sense of

precedence during Brooks’ time to preserve the

identity that’s not defined by development and

culture in Sarawak, whereas Sabah just developed a

modernity.”

lot quicker,” he continued. “I think it’s very important for Sabahans – the Kadazans, Dusuns, Muruts, the

She also points out that most people here only see

people who used to make these things to have a

the potential in mass market tourism. “Our revenue

sense of appreciation of what their ancestors used

in a year is similar to a tourism company that only

to make and to revive the craft.”

does mass market. But they service 3, 4, 5 times the number of people.

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We asked them if Sabah should try to be like Bali or Phuket. “Nope,” Charles replied flatly. “I think if we had to emulate a tourism model, we should take places like Costa Rica as an example, or a lot of places in South America that focus more on this nature-based tourism, but at the same time, they’re also targeting high-value individuals.” Jessica also believes that we should not try to be something we are not. “I think, we as Sabahans need to find and have our own sense of identity. We have various different ethnic groups, different types of foods, easy accessibility to outdoor activities and programmes, to name a few. So I don’t think we should stray away from what we have.” “Less people, less impact, more awareness. Because in smaller groups, it’s more personalised and you

Kenyah Godly Mask

get to really experience a place,” said Jessica.

The Grass is Greener Where You Water It Charles has seen the rapid changes and development in the city since he moved to Sabah. “I wish there was more precedence in retaining KK city’s heritage, like Lorong Dewan and Jalan Gaya. Like 8 years ago, the city had more personality and you could still see a lot of shops that have been running in families for about 60 to 70 years. Now, rent’s just too expensive around here. I think development is definitely okay especially in cities, but we need proper rent control and development plans, so that local businesses can grow along at the same time,” Charles stresses. Jessica then says, “I think it’s too late for Gaya Street. But now, Lorong Dewan (where the gallery is also located), I think there’s still a chance to retain its charm and identity. But everyone has to be on board, to work together. From building owners, tenants, the general public, to the local authorities, especially in guiding businesses to head towards the right direction.” Jessica finishes off by saying that this whole thing about Kota Kinabalu being one of the best places to retire: “We have health care services, shopping malls, mixed developments and apartments buildings… it’s nice, because they’re close to the sea and close to the mountain (Mount Kinabalu). You’re talking about expats wanting to retire here. But, they’re also going to look into the liveability of a city, and that includes the city’s unique culture, green parks, community areas, and more walking streets. Perhaps a dialogue between everyone involved should be done so that having more of these things around the city could be possible.”

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NEWS

East Malaysia Property Market Remains Stable

Defying the lackluster performance of the property market in across almost all property sectors, in all regions of Malaysia, both Sarawak and Sabah have continued to experience rising property prices in the last year. The overall house price index of these East Malaysian states have remained on the uptrend, understandably at a slower pace given the current economic and

Kota Kinabalu city

political climate locally and globally. The growth of three

residential property despite

underscores the initiatives

and increase in economic

main sectors in the past,

it being exempted from

of the Sarawak Corridor of

activity has created an

agriculture, oil and gas and

GST. WTW reported the

Renewable Energy (SCORE)

unprecedented demand for

tourism have contributed

increase in the residential

and the Sabah Development

affordable homes in areas

to strong socio-economic

sector as being 3% to 6%

Corridor. Concentration

surrounding Kuching and

growth and the development

and described the property

is on the construction of

Kota Kinabalu. Majority of

of infrastructure in East

sector as stable especially

more than 3000 km of

residential development in

Malaysia. Rising prices of

those in prime locations.

roads between 2016 and

the next two years will be

land too has propelled

Residential property below

2020 and the improvement

focused on low cost, low

the property sector to the

RM400, 000 remained in

of healthcare standards

cost plus and affordable

forefront generating interest

good demand but those at

in the state, which will see

housing. Developers will be

in land acquisition in urban

the upper end of the scale

the upgrading of Tawau

compelled in addition to

and suburban areas of the

are affected by slower sales.

and Marudu hospitals in

fulfilling their obligation to

states.

Other positive developments

Sabah and the Miri Hospital

government requirements,

in Sarawak include it

in Sarawak. Additionally a

to build according to market

maintaining its foreign

new hospital will be built in

wants and what buyers can

ownership minimum pricing

Sri Aman, Sarawak. Other

afford rather than what

of RM350, 000 per property

major infrastructure projects

developers prefer in terms of

as well as the announcement

include the construction

profitability.

by the Sarawak Chief Minister

of airports in Mukah and

that subsidiary land titles

Lawas, which will boost

CONCLUSION

shall follow the land tenure

the Sarawak’s progress.

Both Sarawak and Sabah

of the original parent title

The construction of the

are in the preliminary

sector. This augurs well for

Pan-Borneo Highway (PBH)

stages of growth, with

the property sector as the

linking Sabah and Sarawak,

much undeveloped land

interests of owners and

scheduled for completion by

and untapped resources.

purchasers are protected.

2025 will span 633 kilometres

The focus has been mainly

SUSTAINED PRICES According to the CH Williams Talhar & Wong (WTW) 2016 Property Market report, Sabah property prices are expected to be sustained in 2016. There has been no evidence to indicate a fall in property prices. The only notable development in the market is the state government’s approval of the earthquake-resistant building

The highway is instrumental

in Kuching and Kota

guidelines. which is envisaged

DEVELOPMENT PLAN ON

in stimulating further

Kinabalu but as the reach

to raise construction costs,

TRACK

economic development and

of the main infrastructure

affecting property prices.

Both states are currently

facilitating the opening up of

frame is extended to other

in a rapid economic

small towns and villages.

townships, ample investment

The overall property market for Sarawak is best described as being cautious. The rise in construction costs has pushed up the prices of

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development phase as

opportunities and options

under the 11th Malaysia

RISING DEMAND FOR

will open up particularly for

Plan, as part of the Nation’s

AFFORDABLE HOMES

West Malaysians looking to

Economic Transformation

Rising prices particularly

diversify their portfolios.

Programme. The Plan

in the residential sector

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NEWS

S P Setia Previews Villas in the Sky at Taman Seputeh S P Setia Berhad previews

its own private lift lobby.

its much anticipated Setia

Purchasers will also be

Sky Seputeh exclusive

spoilt with choices, with a

condominium development

selection of six generously

which will be built across 4.8

proportioned layout ranging

acres of prime land in Taman

from 2,300 square feet to

Seputeh at its sales gallery at

3,000 square feet, providing

Setia international Centre this

ample luxurious living spaces

evening, as it gears up for its

for residents.

official launch in September.

Strategically located amongst the affluent residential area of Seputeh, Bangsar, Pantai and Mid Valley City, this exclusive high-rise luxury condominium comprise only 290 units of “sky villas” spread across two towers with a gross development value (GDV) of RM950 million.

To accommodate residents’ Artist Impression : Grand entrance to Setia Sky Seputeh

lifestyle, each unit will be allotted 3-4 parking bays to ensure that every family member will not have to go through the hassle of searching for additional parking bays when they came home. Besides that, the contemporary building design equips each unit with wide windows and broad balconies that allow generous light penetration.

(L-R) Daniel Ong, Head of Sales & Marketing, Niche Development, Paul Soh, Divisional General Manager of Niche Development, S P Setia Berhad and Kam Tek Kong, Deputy General Manager, Niche Development presenting Setia Sky Seputeh.

Mid Valley shopping mall and

It is also located within

“For this upcoming launch,

A host of 5-star leisure and

approximately 4km to our

8km radius to affluent

we are only launching Tower

recreation activities have

KL Eco City integrated mixed

neighbourhood such as the

A which comprises 145 units

also been planned for this

development just down the

Kuala Lumpur City Centre,

of condominiums with a

luxurious development with

road which will be connected

KL Sentral, Bangsar and

GDV of RM470 million. We

the primary attraction being

to transportations such as

Damansara Heights.

are targeting upgraders

a unique 1.5 acre resort-

the Abdullah Hukum LRT

and owner occupiers who

themed podium featuring

station and KTM Komuter

Prices range from RM2.99

are currently staying in the

one of Malaysia’s longest

station.

million to RM3.6 million or

surrounding area of Taman

man-made sandy beach in

Seputeh and neighbouring

a high-rise development.

“Setia will be investing into

“Setia’s 10:90 promotional

township of Bangsar. Setia

Other facilities available are

improving the current

scheme where purchasers

Sky Seputeh is an ideal

swimming pool, reflection

pedestrian crossing at Jalan

will only need to pay 10%

development as the spacious

pool, Jacuzzi, heated aqua

Syed Putra so that Setia Sky

down payment and the

built-up is akin to living in

gym, sky gym, gourmet

Seputeh home owners can

balance 90% only upon

a villa-in-the-sky but with

kitchen, study room, game

take a walk to Mid Valley

vacant possession is

condominium facilities as well

room and much more.

if they like to. In addition,

applicable for this project.

Setia will also upgrade

This is a golden opportunity

To further satisfy residents’

and enhance Jalan Taman

to own an amazing property

needs, Setia Sky Seputeh

Seputeh,” Soh said.

at this location and we hope

as better security features,” said Paul Soh, Divisional General Manager of S P Setia

approximately RM1,300 psf.

Berhad during the preview.

is surrounded by ample amenities from mega

Setia Sky Seputeh is well

Residents will enjoy utmost

mall to F&B outlets,

connected via major

privacy as each floor at

convention centre, hotels

highways such as Federal

Setia Sky Seputeh houses

and transportation hub

Highway, New Pantai

only four to six units of

within walking distance. The

Expressway and SPRINT

condominium and each unit

development is situated

Highway intersect at the area

is serviced exclusively with

merely 500 metres away from

around the development.

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the property purchasers will take up this special offer,” Soh added.

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hot topic

LEGAL FEE & STAMP DUTY

What You Should Know In a sale and purchase transaction, there are other things that a buyer has to pay besides the purchase price. More often than not, many people are not aware of this and are often caught by surprise. Sometimes, it can turn into a deal breaker, because as it turns out, the buyer does not have enough money to pay for the other costs. Words Jason Lee of Lim Chung & Zahbia

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Two of the most substantial costs involved in a sale and purchase transaction are:

1. the transfer instrument i.e. the ‘memorandum of transfer’ (MOT) for individual title property or the ‘deed

1. the legal fee for the Purchaser’s lawyer; and

of assignment’ (DOA) for master title property; and

2. the stamp duty that’s payable to

2. for the loan documents, in the event

the collector (Lembaga Hasil Dalam

the buyer is obtaining a loan to

Negeri Malaysia).

finance the purchase of the property.

LEGAL FEE

The stamp duty that is payable for the

In Sabah, the legal fee that a lawyer

respective instrument set out above are

charges is governed under the Advocates

governed by the Stamp Act 1949.

Remuneration Rules 2010.

STAMP DUTY FOR THE TRANSFER

The legal fee for the preparation of the

INSTRUMENT

Sale and Purchase Agreement (SPA) (for

The stamp duty for the transfer

both individual and master title property)

instrument (either MOT or DOA), can be

and loan documents (for individual title

calculated based on the following formula:

property) is calculated based on the following scale:

RM1.00 stamp duty is chargeable for each RM100.00 or part thereof for the

Purchase Price / Loan Sum (RM)

Fee (%)

Up to

10,000.00

2.50

For the next

40,000.00

1.00

each RM100.00 or part thereof for the amount in excess of RM100,000.00 but

first RM100,000.00 RM2.00 stamp duty is chargeable for

For the next

50,000.00

0.90

For the next

200,000.00

0.80

For the next

400,000.00

0.70

RM3.00 stamp duty is chargeable for

For the next

500,000.00

0.60

each RM100.00 or part thereof for any

For the next

1,000,000.00

0.45

For the next

3,000,000.00

0.35

It is important to bear in mind that the

For the next

5,000,000.00

0.25

stamp duty for the transfer instrument

Where the purchase price or loan sum involved is in excess of RM10,200,000.00, the legal fee will be negotiable. In any case, there will be a minimum fee of RM500.00 If the property is held under a master title, the buyer shall pay a further sum which is equivalent to one quarter of the scale fee for the preparation of the loan documents. GST ON LEGAL FEE

not exceeding RM500,000.00

amount in excess of RM500,000.00

is chargeable based on the purchase price or the current market value of the property, whichever is higher. STAMP DUTY FOR CONVENTIONAL LOAN AGREEMENT The stamp duty for a loan agreement involving conventional loan can be calculated based on the following formula: RM5.00 stamp duty is chargeable for each RM1,000.00 or part thereof ISLAMIC FINANCING FACILITY

All the legal fees mentioned above are

= 20% REMISSION

subjected to the 6% Goods and Services

As the government of Malaysia is

Tax (GST).

promoting Islamic financing to its citizens, one of the incentives that an Islamic

STAMP DUTY

financing can offer is the 20% remission

The most substantial stamp duty that’s

on the chargeable stamp duty for the

payable will undoubtedly be the one for:

primary loan agreement, subject to www.PropertyHunter.com.my

CONTRIBUTOR

the condition that the Islamic financing facility is one that is

EXAMPLE

approved by Bank Negara of Malaysia.

If A intends to buy the following property and to obtain the following loan to finance the said purchase:

Hence, the stamp duty for Islamic financing facility can be Purchase Price

: RM800,000.00

Type of Property

: Master Title

(RM5.00 stamp duty is chargeable for each RM1,000.00

Loan Amount

: RM720,000.00 (90% margin)

or part thereof) – 20%

Loan Type

: Islamic

calculated based on the following formula:

50% REMISSION FOR FIRST HOUSE

A will need to pay the following:

Currently, in Malaysia, IF you are buying a property for the first time AND if it is a RESIDENTIAL property AND that the purchase

1. RM6,100.00 for the preparation of the SPA;

price of the said property is RM500,000.00 or below, there will

2. RM7,250.00 for the preparation of the loan agreement;

be 50% remission on the chargeable stamp duty for both the

3. RM18,000.00 stamp duty for the transfer instrument i.e. DOA; and

transfer instrument and the primary loan agreement.

4. RM2,880.00 stamp duty for the primary loan agreement. Calculation of the legal fee for the SPA:

Calculation of the legal fee for the loan documents: RM

Fee

Up to

10,000.00

2.50

250.00

400.00

For the next

40,000.00

1.00

400.00

0.90

450.00

For the next

50,000.00

0.90

450.00

200,000.00

0.80

1,600.00

For the next

200,000.00

0.80

1,600.00

For the next

400,000.00

0.70

2,800.00

For the next

400,000.00

0.70

2,800.00

For the next

100,000.00

0.60

600.00

For the next

50,000.00

0.60

300.00

Total

800,000.00

6,100.00

Total

750,000.00

Fee

Up to

10,000.00

2.50

250.00

For the next

40,000.00

1.00

For the next

50,000.00

For the next

5,800.00

RM5,800.00 + 25% = RM7,250.00 Calculation of stamp duty for the transfer instrument i.e. DOA: RM

Calculation

Chargeable Stamp Duty (RM)

1st

100,000.00

RM100,000.00 / RM100.00 x RM1.00

1,000.00

400,000.00

RM400,000.00 / RM100.00 x RM2.00

8,000.00

300,000.00

RM300,000.00 / RM100.00 x RM3.00

9,000.00

Total

800,000.00

18,000.00

Calculation of stamp duty for the primary loan agreement which is an Islamic financing product: (RM720,000.00 loan sum ÷ 1000 x 5) – 20% = RM2,880.00 OTHER LEGAL FEES AND DISBURSEMENT

KNOW EARLY

Apart from the above, there are other legal fees, stamp duty

It is good practice to know the exact cost that is payable apart

and disbursements that are payable in a sale and purchase

from the purchase price before confirming or committing

transaction depending on the nature and/or characteristic of

to the buying or investing of a particular property. This will

the transaction. However, those costs are generally not as

certainly allow for better arrangement of financing and to avoid

substantial as those set out herein.

the possibility of any forfeiture of money and other liabilities.

This article is intended for general awareness purposes only and should not amount to any form of advice. While every effort has been made to ensure the accuracy and correctness of the calculations, contents, information or data contained herein, the writer accepts no liability for loss or damage suffered or incurred by anyone as a result of the reliance on this article or howsoever arising from the use of the information or material set out herein.

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Wilson Lim, Sabahan Chung & Jason Lee, managing partners of Lim Chung & Zahbia - is a firm that strives to provide a comprehensive and integrated range of professional legal services and emphasises innovative planning and practical solutions to complex issues.

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FeatureD Event

SHAREDA NITE:

SHAREDA President, Datuk Francis Gohâ&#x20AC;&#x2122;s Last Presidential Speech SHAREDA celebrated their 38th Anniversary cum Annual Dinner on Saturday, July 30th. With the theme of Black and Gold â&#x20AC;&#x201C; A Midas Touch, the evening saw property developers, real estate agents and distinguished guests come out to play on the memorable and dazzling night. Words Property Hunter Photos All4One Productions

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Organizing Chairperson and SHAREDA Council Member, Ms Emily Chew Fei Sean giving her welcome speech

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FeatureD Event

he past 3 years have clocked in many key

The soft economy, accompanied by the implementation of

challenges and changes in the property and real

cooling measures, have affected greatly on the middle lower

estate development landscape. As one may know

income group. The government has since acknowledged the

and may have repeatedly heard that this is one of

need to be lenient so as to assist the middle lower income

the most challenging periods for the industry.

group home ownership ability. The announcement of Budget 2015 and 2016 provided various incentive schemes to

President of SHAREDA, Datuk Francis Goh gave his last speech

encourage home ownership, such as MyHome scheme and

as the President during the dinner. He reminded the guests of

MyDeposit. Despite the many incentives, there are many

the cooling measures that were imposed by the government in

people still unable to purchase or own a house.

October 2013, during his first presidential tenure. Goh also took the opportunity to apprise SHAREDA’s initiatives “We were hit by the cooling measures to curb the rising

and CSR efforts towards assisting buyers or owners whom

speculators in the market, and followed by the announcement

have yet to obtain their titles. The 96 successful titles obtained

of Budget 2014, such as the abolishment of DIBS, the increase

for the owners/buyers of Taman Sri Kepayan was SHAREDA’s

of RPGT, minimum priced capped at RM1 million for foreign

pilot project.

purchasers and restriction of buying more than 4 units by a single purchaser”, he added.

To conclude his speech, Goh thanked his fellow council members for their coopeeration and support throughout this

In a larger perspective, being one of the major pillars of the

presidential tenure.

Sabah economy, standing next to the palm oil and oil and gas sectors, the property and real estate development industry

“It has been an honor and privilege to work side by side with

has created a positive spill-over impact by creating ample job

you to strengthen our property and real estate development

opportunities to the other 165 construction and supply chain

industry”, he said.

related industries. Based on SHAREDA’s Annual Report, it can be deduced that there is a significant fall of 50.4% recorded from the year 2013 to 2014, and a subsequent fall of 28.8% from the year 2014 to 2015 in Gross Development Value (GDV).

SHAREDA President, Datuk Francis Goh, giving his last presidential speech

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3 2

1. SHAREDA Committee Members 2. SHAREDA Youth Members 3. YB Datuk Seri Panglima Haji Hajiji Haji Noor, Minister of Local Government & Housing 4. Donation for the Sabah Society For The Blind 5. Prize giving to one of the sponsors 6. PH photobooth contest winner, Kwong Yuan Zee 7. One of the performances of the night 8. Having a good time

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NEWS

15,056 People’s Housing Program Units Completed

A total of 23,114 People’s

and occupied whilst as

He also revealed that there

those having a monthly

Housing Program (PPR) units

many as 1,080 PPR units

are 1,785 PPR housing units

household income of less

have been completed and in

are still under construction,”

(rented) in Inanam, 785

than RM3,000, he added.

the process of being built in

Hajiji clarified, in response

completed PPR Puri Warisan

Sabah so far, as reported in

to the question by Sekong

units that are occupied by

Up to now, the minister

Borneo Post.

assemblyman Datuk

Inanam and Kota Kinabalu

explained no lease-

Samsudin Yahya on the PPR

folks.

purchasing method has

Local Government and Housing Minister Datuk Hajiji Mohd Noor told the State Assembly sitting on Monday (Aug 8) that his ministry, through the National Housing Department (JPN), have completed 15,956 PPR housing units whilst 7,158 units are in the middle of construction. “In Sandakan alone, 4,000 units have been completed

been considered in Sabah

status in the district.

When answering Datuk Seri Panglima Lajim Ukin (PKRKlias) on the PPR construction status at Kampung Lumat in Beaufort, the minister said a total of 67 units are now at 93% completion and expected to be completed this year.

Tawau First to Hand Over PPA1M House Keys Hap Seng Properties

between December and

Development Sdn Bhd

January next year, involving

(HSPD) is the first developer

more than 3,000 units.

Another 1,000 PPR Kionsom

as the rented PPRs have

units are under construction

been maintained as transit

in Inanam, Hajiji said in

homes for the many squatter

response to Dr Roland Chia

household heads.

Ming Shen (PKR-Inanam). He also assured the House Those eligible for PPR

that the government will

housing units are local

implement a lease-purchase

Malaysian squatters, single

policy for PPR housing

mothers from the low-

units once the renters are

income group, persons with

willing and able to make

disabilities (OKU), fire victims

loan payments in order to

(subject to availability) and

purchase the units.

to hand over house keys to successful applicants of the

“However, Tawau took the

1Malaysia Housing Project

lead among the projects,”

for Civil Servants (PPA1M) at

he said when congratulating

Bandar Sri Indah on Sunday,

HSPD for its early completion

Aug 7th, as reported in

during the launching

Borneo Post.

ceremony of PPA1M Bandar Sri Indah and the handing

Chief Secretary to the

over of keys on Sunday.

Government, Tan Sri Dr Ali

Chief Secretary to the Government, Tan Sri Dr Ali Hamsa receiving a token of remembrance from HSPD general manager David Wan

Hamsa, congratulated the

He said the government also

successful applicants and

intended to add an additional

for these terrace units and

affordable housing under the

also HSPD for taking the lead

200 units of PPA1M in the

have offered 100 homes for

MyHome Scheme consisting

and completing its project of

district, bringing the total

purchase at about 30 per

of 1,000 units of walk-up

100 units two years earlier.

units for Sabah to more than

cent below the market price.

apartment priced under

the targeted 7,000. He said 100 units of the

He said HSPD also offered

RM200,000 which are now open for registration.

houses were offered to

Meanwhile, HSPD general

another PPA1M Scheme at

civil servants from various

manager David Wan said the

Ria Heights, Jalan Utara, for

“We fully support the PPA1M

agencies, with spacious area

scheme is being implemented

100 units of double-storey

Scheme as home ownership

of 1,689 sq ft to 1,853 sq ft

in major cities in Malaysia and

terrace houses which are

is becoming increasingly

priced from RM283,752 to

stressed on comfortable sizes,

now open for application at

difficult for many. Our Sabah-

RM300,000 per unit.

design, quality, location and

the PPA1M website.

born company is proud to

the right price. Ali said the handing over of

In line with the government’s

the first house for the PPA1M

Since its registration opened

aspiration to provide more

project was initially planned

in May 1, PPA1M received

affordable housing, Bandar

to be carried out in Putrajaya

overwhelming applications

Sri Indah will also have more

www.PropertyHunter.com.my

be a part of an initiative that encourages home ownership while providing many facilities within the township for its residents,” David said.

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HOT TOPIC

FOREIGN PROPERTY OWNERSHIPs Around the world Defining exactly who qualifies as a foreign buyer, and figuring out what it all means in the bigger picture can be a bit of an arduous process. Countries around the world have tried to make home ownership more affordable with an assortment of different approaches. Words Property Hunter

www.PropertyHunter.com.my

uying property in Malaysia is becoming an increasingly attractive proposition for expats, with the Malaysian government actively looking to increase foreign

investment in the property market through the Malaysia My Second Home (MM2H) initiative. There are some areas of the country in which expats are still not allowed to buy property, and there are also restrictions on the value of a property price in order to protect low- to middle-income Malaysians from property inflation. Loans and mortgages are freely available from Malaysian banks and other financial institutions. During the first eight months of 2015, there were about 1,136 approved applications under the MM2H Programme. Most foreign buyers (out of the 122 countries) came from China (23.3%), Japan (13.4%), Bangladesh (10.9%), United Kingdom (7.9%) and Iran (4.7%). As of 2014, expats can purchase any kind of property with a minimum value of RM1 million. They are allowed to purchase up to two residential properties – two condominiums (max. 50% foreign ownership within a block) OR one condominium and one of the following: •

Terrace or linked houses above two storeys, but limited to 10% of the total number of units built of this type

•

Lands/bungalows and semi-detached houses, but limited to 10% of units built of these types

STAMP DUTY PROPERTY VALUE (MYR)

RATE

Up to 100,000

100,000 – 500,000

Over 500,000

LEGAL FEE VALUE OF PROPERTY (MYR)

RATE

Up to 150,000

150,000 – 1 million

0.70%

1 million – 3 million

0.60%

3 million – 5 million

0.50%

5 million – 7,500,000

0.40%

Over 7,500,000

negotiable on property value exceeding threshold but shall not exceed 0.40%

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HOT TOPIC

EXPLORING INVESTMENT OPPORTUNITIES OVERSEAS Foreign investments namely, South East Asia for a better break.

AUSTRALIA

CAMBODIA

Expats moving to Australia will find plenty

Expats are able to buy property in

of housing options available to them, from

Cambodia, however there are restrictions. It

furnished or unfurnished apartments

is important to understand the restrictions

(known locally as flats), to houses, studios and luxury

before making any sort of investment, as expats will be

apartments.

subjected to enforcement if they do not uphold the rules. In order to buy property, expats will need current passports and

Expats who buy vacant residential land have to build on it

visas, and it is recommended that they consult a real estate

within two years.The ease with which Expats can obtain a

agent or lawyer, in order to fully understand the restrictions.

mortgage approval in Australia depends on several factors, the most significant of which are the type of visa they are on, and

Malaysian banks such as Maybank, Public Bank, RHB, CIMB and

their credit rating.

Hong Leong Bank are willing to offer bank loans up to 50% with a maximum loan tenure of 10 years.

Australia also forces foreign investors to register their purchases with the federal government, part of an effort to gather and analyze an extensive data set on the issue.

CHINA Expats are allowed to purchase any types

Malaysian banks such as CIMB and Maybank are willing to offer

of property in China and they are required

bank loans up to 70% with a maximum loan tenure of 30 years.

by law to register their address at the local Public Service Bureau (PSB) as soon as they move in.

BRUNEI

Expats who have lived in the country between one to five Similar to the Permanent Residences, expats can purchase land, houses and shophouses but freehold ownership is non-existent, and

property ownership will only last for 60 years. They can also buy apartments which will be considered theirs for 99 years. It is unlikely that a foreigner will be able to secure a mortgage

years must pay tax in China based on their local income and on income brought into the country. After five years, residents must pay tax on their worldwide income, although deductions are often applicable if tax is also paid to their home country. Should they wish to transfer the ownership of a property to a different owner, they are subjected to 5% of ownership transfer fee.

from a Brunei bank unless they have lived in the country for a number of years. It may be possible to obtain a mortgage from a bank in your home country and you should be in the process of arranging this when you are looking for a home.

HONG KONG While Hong Kong is part of China, its housing market stands apart. In fact, it is consistently

Buying a property incurs a number of fees. Buyers will need to engage the services of a lawyer to complete the transaction, and the cost of this cannot be estimated as the different law firms vary in their charges. There is also the cost of any survey that you

ranked the most expensive market in the world. The median price of a Hong Kong home is about 19 times the median income of its citizens.

have carried out on the property and the value of the deposit,

Property prices in Hong Kong are very expensive. Expats

which can be as much as a third of the cost of the property.

generally only buy a property if they intend to stay for the longterm. Without having permanent residence, buying property in Hong Kong can be difficult. Local banks are often unwilling to offer loans for those looking to buy older apartments or to those without a long-term financial track record within Hong Kong. The government has responded with a 15-per-cent surcharge on homes purchased by non-permanent residents. In 2012, the city announced the establishment of areas with new dwellings that can only be sold to permanent residents of Hong Kong for the next 30 years.

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INDONESIA

MACAU

Expats cannot own land in Indonesia, unless

There are no restrictions on foreign

they are an Indonesian citizen. However,

property ownership in Macau.

they can purchase a building on the land without owning the land itself. It is possible for expats to lease

Property tax is levied on real property (buildings) situated in

a piece of land for up to 70 years, effectively owning it until

Macau. The property owner is liable to pay for this tax. For

their death; however, the rules and regulations surrounding

leased property, the tax is levied at 10% on the net rental

this are vague.

income. A standard deduction of 10% is granted to cover repairs and maintenance, and certain property-related

Expats can purchase a house or an apartment without owning

expenses. A standard annual deduction of MOP3,500 (US$438)

the land it is built on, but this is quite often still a difficult

is allowed for all properties.

process. Expats may purchase a house on freehold land by written consent from the landowner, for 25 years and

Stamp duty for sales or transfers of property ranges from 1%

extendable to a further 25 years.

to 3% of the property value. There is an additional 5% stamp duty levied on the stamp duty payment, hence the effective stamp duty is 1.05% to 3.15%.

JAPAN There are no legal restrictions on expats owning real estate property in Japan. Negotiations and private survey may begin

MYANMAR An important limitation on land use

once property has been chosen. It is important to hire the

relevant to foreign investment is found

services of a real estate agent, who can also act as the buyer’s

in the Transfer of Immoveable Property Restriction Act of 1987, which generally prohibits any sale,

translator.

transfer or exchange of land to any expats or foreign company. Expats will be required to pay two types of tax while in Japan

Non-Myanmar nationals and companies are only allowed to

– income tax, which is usually worked out as a percentage

lease land for a term of less than one year. Fortunately, the

of one’s salary (ranging from 5 percent to the maximum 40

act allows exemptions from these prohibitions if granted by

percent), and the annual resident tax, which depends on where

relevant government ministries when extended to foreign

they live. The resident tax is worked out on an annual basis and

governments, diplomatic missions or other organisations.

is only applicable when living in Japan for longer than a year. As of 2016, Expats are legally allowed to buy units not exceeding 40 percent of a condo building, the law stipulates that Expats are not permitted to “manage” condos. Until very

LAOS

recently, there has been a recent positive change in policy Foreign individuals and foreign-invested

as the Office of the Register of Deeds is now receptive to the

companies, including minority foreign-

registration of foreign long-term leases.

owned companies, are restricted to leasing land and receiving land concessions from the state. A land concession granted by the State to foreign-invested enterprises is limited to 50 years. The lease of land by a Lao

NEW ZEALAND

citizen to a foreign-invested company registered in the Lao

Expats will have a wide variety of choices

PDR is limited to 30 years. In both cases, leases are usually

when it comes to house types in New

renewable. Leases of land in SEZs are limited to 75 years.

Zealand. The range of accommodation includes free-standing and duplex houses, apartments and

Expats who lease land or receive land concessions from the

home units. There are very few legal restrictions on foreign

state must fulfil certain obligations. Under the Investment Law,

buyers of property in New Zealand. If you are simply buying

the property of investors is protected from nationalisation or

a house with a garden then there are no issues.The limit is

expropriation, except for public purposes and upon payment

reduced to just 1 acre when the land is close to a nature

of compensation.

reserve or other protected area.

Share sale and purchase agreements are subject to stamp

There are no restrictions on the resale of property and there

duty at a rate ranging from LAK 15,000 (RM7.30) to LAK

is no requirement for a person to be in possession of a visa or

100,000 (RM48.74) depending on the purchase value. Income

work permit in order to purchase a house or stay in it, although

from profit from the sale of shares is subject to income tax at

without the relevant visa the amount of time you can spend in

the rate of 10 percent.

the country is limited. www.PropertyHunter.com.my

HOT TOPIC

For expats moving to New Zealand there should be no worry about obtaining a mortgage through a New Zealand bank. The

PHILIPPINES Expats looking for accommodation in the

general rule with most banks is if you have the right to live and

Philippines will find a variety of options to

work in New Zealand and have visa paperwork to prove it, you should be able to apply for a mortgage.Expats will fall into one of three categories when applying for a mortgage:• Category 1: Loan of up to 95% of the value of the property for those who have achieved permanent residency. You will also get the same rights with the banks as New Zealand citizens. • Category 2: For those who simply have a work permit. A minimum of 20% of the purchase price will be asked as deposit – there are some banks which may ask for as much as 50%.

choose from, depending on their budget and particular circumstances. From luxury condominiums, to free-standing houses, from metropolitan city living in Metro Manila to the tropical beaches of Palawan, every area of the Philippines has something unique to offer Expats. Expats cannot own land, but can own condominium units or apartments in high-rise buildings as long as the foreign proportion does not exceed 40%. They can also buy a house but not the land on which it is built. Leases on land up to 50 years, renewable for another 25 years, are available. Expats can only own up to 40% of a condominium project.

• Category 3: For those who purchase holiday homes but have no residency right. Some banks may be even stricter and there are one or two banks who will insist on measures such as opening an account with them and depositing a minimum amount first. Conveyancer fee is NZD1,500 (RM4,309) for every transfer of property.New Zealand is an investment friendly country with no stamp duty, mortgage stamp duty, land tax, property purchase

Citizens and resident Expats are allowed the following deductions, aside from the expenses and taxes related to the property as well as the surviving spouse’s share, before arriving at the taxable estate: • PHP1 million (US$21,277) standard deduction, • PHP1 million (US$21,277) for the family home, • PHP200,000 (US$4,255) for funeral expenses, and

tax, nor capital gains tax (if the property is owned for more than two years and you have the intention of purchasing for

• PHP500,000 (US$10,638) for medical expenses during one whole year before the testator’s death.

rental income).

PAPUA NEW GUINEA

SINGAPORE

Foreign companies and individuals are

Some banks will offer up to 60% for first

not permitted to acquire customary land

time home buyers, 40% loan for those with more than one outstanding loans, and

or freehold land. Foreign companies and individuals must obtain ministerial approval from the Minister

between 40-50% for the non-individuals who wishes to obtain

for Lands, when they are a party involved in the disposing of, or

a loan.

a contract or agreement to dispose of, a leasehold estate.

Forexpats, the maximum rate of additional buyer seller duty is

Stamp duty (duty) in Papua New Guinea is payable on the

a flat rate of 15%, with the loan tenure capped at a maximum

transfer, agreement for sale, declaration of trust over, or grant

of 35 years.

of certain property. The amount of duty payable will depend on the type of property and its value:-

Where the value does not exceed K35,000.00

K5.00 or an amount equal to 2 per cent of the value, whichever is the greater

Where the value exceeds K35,000.00 but does not exceed K70,000.00

An amount equal to 3 per cent of the value

Where the value exceeds K70,000.00 but does not exceed K140,000.00

An amount equal to 4 per cent of the value

Where the value exceeds K140,000.00

An amount equal to 5 per cent of the value

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Expats can now buy apartments in buildings of less than six stories without prior government approval. However, expats still cannot purchase vacant land and landed properties without permission from the Singapore Land Authority. Non-residential property is not subject to these ownership restrictions. Aside from these restrictions, expats can buy condominiums freely. There are few foreign exchange restrictions, and nonresidents can now borrow up to 80% of the property cost locally, in Singapore Dollars.

SOUTH KOREA A nonresident expat can hold Korean property through a ‘limited liability company’ (YooHan hoesa). This requires no company registration, only tax registration with the tax authority. It is possible for Expats to buy property in South Korea;

with the possibility of renewing the lease for additional 30-year periods. Stamp duty is 0.50% of the declared amount or the assessed value of the property, whichever is higher. Legal fees are negotiable and it ranges from THB20,000 (RM2,301) – THB30,000 (RM3,452).

however, house prices are staggeringly high, and – unless they plan to move to South Korea permanently – it is difficult to turn a profit on their investment. Mortgages are difficult for most people to obtain, as they will need to be able to put down a

TAIWAN Expats moving to Taiwan can expect to find

large deposit on the property to even be considered for one. Legal fees are around 0.25% to 1% of the property value. A typical lawyer will charge between 5 and 10 hours to prepare the sale agreement at the rate of between KRW100,000 (RM361) and KRW 250,000 (RM902) per hour of work. Typically, the stamp duty is around 0.20% of the property value.

plenty of accommodation options available to them. Although housing in Taiwan can be relatively expensive, there is so much on offer, that with a little patience and ingenuity. Expats can only purchase land for personal, investment, and social welfare purposes. State-owned bank lowered loan-to-value ratios for first-time buyers from 80% to 70%, and to 50% from 60% for people

UNITED KINGDOM Expats are able to buy property in the UK and most nationalities are entitled for investment loans, although the number of banks offering them are scarce. Those living abroad will require proof of income and may be asked to pay up to a 40% deposit. Mortgage rates currently vary between 3–5% and the type of mortgage available will depend upon its intended use. Expats can often secure loans in their own country as they may already have established assets they can charge against and have mature relationships with their existing banks. Expats and local residents alike are allowed to resell their

owning more than one property. Market interest rates on housing loans have continuously risen since 2010, despite steady policy rates. In 2014, the average rate for housing loans rose to 1.963%, up from 1.948% in 2013. Stamp duties are imposed on the sale, exchange, donation, or subdivision of real property executed within the territory of Taiwan at 0.1% of the contract value, whilst legal fees are negotiable and generally around TWD5,000 (RM640). Property sellers will be required to pay between 15% and 45% of gains based on market prices, instead of the currently used government-assessed values.The new law will take effect on January 1, 2016.

properties. As of April 6, 2015, the taxman takes up to 28 per cent at the point of sale on foreign-owned residential property. The capital gains tax for overseas owners was introduced

VIETNAM Expats can now own all types of properties,

shortly after the government took steps to cool sales of luxury

including condominiums and landed

homes by boosting the stamp duty, a progressive tax paid on

property such as villas and townhouses.

most residential properties in the UK, for homes valued at

The properties owned by expats can be sub-leased, inherited

more than 1 million pounds, or about $1.9 million.

and collateralized.Expats are not allowed to own land. In fact, even citizens are not allowed to own land. In Vietnam, land is theoretically collectively owned by the people, but regulated by

THAILAND Expats cannot buy land in Thailand, only

the State.

condominium units and apartments. Expats

For foreign individuals, the house ownership period is 30 years,

cannot make up more than 40% of the

but it can be extended. The new law also limits expats from

condominium’s unit-owners. However, expats can buy a whole

owning more than 30% of a single apartment building, or more

building, minus the land on which it is built providing there are

than 350 houses and apartments in a ward, a sub district-level

more than 49% of the total number of units are Thai owned,

administrative area.

otherwise aexpats can only buy the leasehold. Expats can transfer money to Vietnam to buy a house - but it Although Thailand restricts foreign ownership of land, expats

is not yet clear that they are allowed to transfer money abroad

may hold total leasehold interest in Thai land and house leases.

after they sell or transfer their houses in Vietnam, or to borrow

Thailand lease law allows a 30-year maximum lease period,

from banks in Vietnam to purchase houses. www.PropertyHunter.com.my

HOT TOPIC

FOREIGN PROPERTY OWNERSHIP CONDITION COMPARISON IN REGION Country

Purchase Primary Property

Purchase Secondary Property

Foreigner Can Purchase

Foreigner Cannot Purchase

Foreign Investment Approval

Resell Property

Real Property Gain Tax

Ownership Transfer Fee

Stamp Duty

Malaysia

YES

All property types (Except Native Title)

Anything below RM1million

YES

ANYONE

5% (After 5 years)

0.00%

1-3%

Australia

YES

All property types (New property and subjected to FIRB Approval)

Secondary market properties

YES

PR / Citizen Only

32.50%

0.00%

4% - 7%

Brunei

YES

Condominium, Apartment (Strata highrise property)

Any landed property

YES

N/A

0.00%

N/A

Cambodia

YES

Condominium, Apartment (Anything strata property above first floor)

Any landed property

NONE

ANYONE

0.00%

4.00%

0.00%

China

YES

All property types

Uncompleted house/project and farm houses

YES

ANYONE

20.00%

5% below 2 years. NO VAT above 2 years

0.05%

Hong Kong

YES

All property types

NONE

ANYONE

0.00%

N/A

20.00%

Indonesia

YES

N/A

House, Apartment, Condominium

Freehold land

N/A

5.00%

IDR6,000 (US$0.45)

Japan

YES

All property types

Land

NONE

ANYONE

30% before 5 years, 15% after 5 years

N/A

2.00%

Laos

Any property

N/A

24.00%

0.00%

0.01% 0.20%

Macau

N/A

12.00%

N/A

1.05% to 3.15%

Myanmar

NONE

N/A

10.00%

N/A

New Zealand

YES

All property types (New property and subjected to Approval)

Land

YES

ANYONE

33.00%

0.00%

4% - 7%

Papua New Guinea

N/A

5.00%

Philippines

YES

Condominium, Apartment

Land

NONE

ANYONE

6.00%

1.00%

0.25%

Singapore

YES

Complete or off the plan, non-landed and residential only

NONE

ANYONE

0.00%

N/A

18.00%

South Korea

YES

N/A

ANY

NONE

YES

N/A

38.00%

N/A

0.20%

Taiwan

YES

N/A

YES

N/A

45.00%

0.10%

Thailand

YES (51% owned by Thai citizen)

Any (51% owned by Thai citizen)

Land

YES

Citizen

35.00%

N/A

United Kingdom

YES

ANY

NONE

ANYONE

28.00%

N/A

1% - 7%

Vietnam

YES

All property types

Land, Buy-tolet properties

N/A

ANYONE

25.00%

N/A

0.30%

www.PropertyHunter.com.my

Legal Fee Range

Local Banks Lending

Malaysian Bank Lending

Maximum Loan Tenure

Maximum Margin of Finance

Interest Rate Range

Mortgage Insurance

0.40 - 1%

All major banks

30 years

60%

4.40%

YES

1% - 3%

Citibank (Malaysian Not Accepted), Bank of China (Chinese Citizen Only)

CIMB (Sydney & Melbourne Only, Maybank (Sydney, Melbourne & Perth Only)

30 years

70% + 5%

4.5% - 6%

YES

N/A

15 years (Standard Chartered), 25 years (Baiduri Bank)

N/A

0.20% 0.50%

None

N/A

10 years

50%

9% - 10%

NONE

N/A

Bank of China, China Agriculture Bank, China Construction Bank and Industrial and Commercial Bank of China

N/A

4.35%

NONE

N/A

YES

0.5% to 1.5%

N/A

7.55% to 17.04%

N/A

Bank of Japan, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation, Mizuho Bank

N/A

30 years

60%

0% - 0.1%

YES

0.10%

NONE

N/A

1% - 3%

Most major banks

N/A

30 years

70%

4.5% - 6%

YES

N/A

Banco De Oro Bank, Bank of the Phillippine Island

Maybank, HSBC

15 years

60%

4.5% - 6%

YES

0.30%

All major banks

Maybank (Prime District)

15 years (max 35 yeaers capped)

60% (1st time), 40% (more than 1 loan), 40 50% (non-individual)

3% - 5%

YES

0.25 - 1%

N/A

20 years

N/A

1.50%

N/A

0.05% 1%

Central Bank of the Republic of China (Taiwan)

N/A

25 years

1st time 70-80%, and to 50-60% for more than one property

1.75%

N/A

NONE

N/A

1.75%

N/A

0.5% - 1%

Most major banks

Maybank, CIMB 30 years (London Zones; 1, 2 & 3)

80% + 5%

1.93 - 3.02% (fixed YES rate mortgage), 2.49% (tracker mortgages), 4.56% Standard Variable Rate mortgages

N/A

Selected major banks

N/A

50%

7.5 - 7.99%

15 years

NONE

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NEWS

Penang Proposing Rent Control on Pre-War Buildings The Penang government

chairman Jagdeep Singh Deo

is proposing a rent control

told a press conference here

policy for pre-war buildings

today.

after numerous complaints from business operators

Bernama also reported

in the George Town

Jagdeep saying that this was

Unesco World Heritage

the first time such a proposal

Site over excessive rental

has been brought up for

hikes, as reported on

consideration.

TheEdgeProperty.com.my.

“Currently, we only know that

“We are seeing an unnatural

many [tenants] had left but

increase of rental at [the]

we do not have the actual

George Town Unesco site

statistics to back up the idea

property industry at the

control to curb rising rents of

and the tenants had been

which we needed the most to

Penang International Property

heritage properties.

complaining that they had

enforce the Rent Control Act

Conference this Friday.

suffered more than 500%

1997,” Jagdeep said.

hike in rental for several years, which had forced them out, leaving their business,” State Housing and Town and Country Planning committee

The Penang government is proposing a rent control policy for pre-war buildings

According to Lim, the move Penang chief minister Lim

would stop the gentrification

He said the state will therefore

Guan Eng has said a few

that was driving locals away

seek out suggestions,

weeks ago that the state

from pre-war houses in the

views and reactions of local

government is considering

core and buffer zones of the

stakeholders and the private

the reintroduction of rent

island’s heritage site.

Loan Rejection Dilemma Persists

The dilemma for new

Bank Negara on this issue, as

homebuyers continues as

to come up with a solution

many are still struggling to

for the applicants of the

acquire mortgage loans to

affordable housing scheme.

purchase affordable homes, as reported in PropertyGuru.

On the other hand, a similar

com.my.

situation is faced by the citizens of Selangor as the

According to Sabah State

loan rejection rate in the

Local Government and

state is about 60% of the

Housing Minister Datuk

total loan applicants. One

Seri Hajiji Noor, the state

of the identified reasons for

encountered nearly 75%

the rejections are due to the

loan rejection rate for the

applicants’ National Higher

application of homes below

Education Fund Corporation

RM250,000.

(PTPTN) loans.

“It’s saddening that, despite

“Many applicants, mostly youngsters, are facing loan rejection due to their unsettled or pending PTPTN payments. Most have deferred their education loan installment previously, which

an abundant supply of affordable homes in the market, many youngsters are still unable to purchase homes for their own stay,” he said. In regards to this, the minister is looking forward to having a discussion with

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The dilemma for new homebuyers continues as many are still struggling to acquire mortgage loans to purchase affordable homes

poses difficulty in obtaining a mortgage loan now,” said Selangor Housing Committee chairman Datuk Iskandar Abdul Samad.

As to help the applicants to

To come up with a solution

projects and the remaining

for this problem, Samad had

11 projects are still under

approached Bank Negara

construction. The houses

Malaysia for a discussion.

are priced below RM250,000

However, the request for a

under this scheme.

discussion was declined.

purchase their dream home, the committee has arranged schemes such as Smart Sewa scheme and Dana Sel. At the moment, the SelangorKu housing programme has successfully completed 3

www.PropertyHunter.com.my

FeatureD Event

Dato’ Sri Gavin Tee Challenges that Malaysian Housing Is Affordable

By Swhengtee Group

With a strong belief that everyone has the right to own a house, Dato Sri Gavin Tee, the mentor of “Anyone can be a Property Millionaire” thinks Malaysian property is still affordable and people should be able to own a property despite the current dire market conditions.

uditions for aspiring

the stage together with fellow millionaire

They are held up as potential millionaires

property millionaire stars

hopefuls as part of a real estate reality

and may eventually be role models for

kicked off on 24th July

TV show, the first of its kind in the

some people, hence we take seriously

for the widely anticipated

country and possibly the world. Expected

the selection process.

“Anyone can be a Property

to be broadcast in the 2nd quarter of 2017, Tee said he is inviting everyone

“This doesn’t mean you have to be rich or

(Chinese-speaking for the 1st season)

smart to succeed in property investing.

The show’s creator and host, Dato’

to apply to participate. Shortlisted

The whole idea of this TV programme

Sri Gavin Tee said that the data and

participants will then go through a

is to show that anyone can succeed

information from the public, and

selection process where factors such as

in property investing, if given the right

even the government which named

how they express themselves, financial

guidance and training.”

Sabah and Sarawak as having the least

ability, assessment tests results, and a

affordable housing is quite misleading. In

simple self-introduction, will be taken

fact, he thinks Sarawak can be the most

into consideration.

Millionaire” Reality TV Show.

affordable state in terms of property. Elaborating on the criteria, Tee The definition of affordability was further

continued, “These basic qualities are

elaborated during the press conference

essential to ensure the participants are

whereby transportation, family income

able to go through the entire buying

and cost of living play an important role.

process successfully, while being

The search is on for Malaysia’s future property millionaire star who will take to

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watched by the audience. Even part of their personal lives may be broadcast.

Personal challenge Tee added that the show is also a personal challenge for him – “to be able to mentor anyone to a point where he could be considered a property millionaire is a tall order and if I am able to do that, it means I have succeeded.” Tee will personally guide each of the 8 participants at each stage of the buying process, from the selection of properties,

borrowing of loans to the signing of the Sale & Purchase agreement. The objective is to buy a property that eventually gives the greatest return within a specific time-frame. “There will be at least one participant who

The audition launch

would be worth at least a million ringgit at the end of the show,” Tee, a leading international real estate trainer and investor promised. The shortlisted applicants will be placed under 8 different categories – Celebrity, Professional, Foreigner, Disabled, Businessman, Young Graduate, Retiree and Real Estate Expert. “These are ordinary members of the public who typify the particular category that they belong to, for example, the young graduate who has a strong desire to own a house and who has experienced some mistakes along the way; the businessman who owns several properties without proper management of his portfolio and who may constantly face problems renting out his properties or has rental collection issues,” Tee said. The show will even include a disabled person – “this is to prove that even a disabled is capable of buying his own house with proper guidance and strong motivation.” Tee, who is widely regarded as one of the top property speakers in the region, emphasised that the show will feature a cross-section of society, “real people who will really buy a property and not merely acting.”

topic – the property market performance

Malaysia’s Best Investible Project Award 2016

is the worst ever in the last 8 years. But

At the same event, the consultant also

this is precisely why I picked this timing

announced the launch of a brand new

– to prove that even in the worst market

award, “Malaysia’s Best Investible Project

condition, anyone can still make money

Award 2016”. “In conjunction with

from property.”

“Anyone can be a Property Millionaire”

The property veteran of 25 years further said that the timing couldn’t be better. “Yes, this is the worst time to air this

Reality TV Show, we would like to award During the launch event, the property

6 developers who have demonstrated

expert summed up his 3 key points in

excellent project achievements,” he

the road towards financial freedom

said, adding that the developers will be

through property investment. The

showcased in the reality show.

3-step journey to becoming a property millionaire –

Nomination for the award is now open for both completed and under

1. Mindset change – You have to

construction projects including high-end

believe anyone can be property

condo, medium-cost apartment, landed

millionaire. The rich need to invest;

property, commercial property, resort

the poor even more so. Investment

and hotel categories.

is not a matter of money but a matter of getting the highest return.

This programme is produced by Swhengtee Group, a production of SKT

2. Master the skills and knowledge –

Media & Entertainment Group.

You need to have the knowledge of the property industry such as how

Interested participants and sponsors

to manage your property and the

may log in to www.propertymillionaire.

technical aspects of buying, selling

com.my or contact 03-2288858 /

and renting; as well as be part of the

yeeting@swhengtee.com.my (Yee Ting).

best networking group to ensure you buy into the right investment at the right time. 3. Risk management - Every property investment carries a risk; the higher the risk, the higher the return. The one who knows how to manage the risks such as avoiding common mistakes will be the one who wins. There are a lot of pitfalls; one mistake can even delay your return on investment for years. www.PropertyHunter.com.my

HOT TOPIC

Knight Frank Real Estate 1H2016 Report Knight Frank Malaysia has just recently released their latest report on Malaysia Real Estate Highlights for the 1st half of 2016.The report looks into market performances across the various property mix â&#x20AC;&#x201C; residential, office, retail; and highlights the trends and outlook in the four key markets â&#x20AC;&#x201C; Kuala Lumpur, Klang Valley, Penang, Johor Bahru and Kota Kinabalu. Photos All4One Productions

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According to Knight Frankâ&#x20AC;&#x2122;s Managing Director, Sarkunan Subramaniam, the construction industry, particularly infrastructure-related, continues to drive economic growth despite the cloudy outlook for all market sectors amid further weakening in the domestic economy and global uncertainties. He also added that the scores of infrastructure-related projects in the country will inevitably shift the focus of future segments, as more of the population embraces public transport, encouraged by reduced traveling time. For a brief report on the other markets in Malaysia, scan the QR Code at the bottom of this article.

KOTA KINABALU Market Indications Similar to the second half of 2015, the property market in Kota Kinabalu saw fewer new property launches and moderated transaction activities. Based on Property Sales Data (Q1 2016) by NAPIC, Sabah registered 1,595 transactions with a total value of RM820.90 million, a decline of 27% and 49% in volume and value respectively against Q1 2015. Factors that have collectedly contributed to the situation are the existing challenges such as the general buyerâ&#x20AC;&#x2122;s sentiment, rising cost of construction, and general heightened restrictions of financial institutions regarding lending criteria. The gross development value (GDV) for properties launched in Sabah has plummeted tremendously from RM7.65 billion in 2013 to RM3.75 billion in 2014 and further dropped by 28% to RM2.7 billion in 2015. Developers have responded with smaller units and more affordable projects despite what they prefer building in terms of profitability. Benefits from Long-Term Mega Infrastructure Projects In April 2016, the Prime Minister, Datuk Seri Najib Tun Razak officiated the first phase of the Pan Borneo Highway, which costs RM12.86 billion and scheduled to complete in 2021. According to the PM, the project has the highest impact on Sabah and will elevate the state to higher levels of socioeconomic development, creating about 400,000 new jobs for the locals. The RM1 billion Bus Rapid Transport (BRT) system is expected to be completed in 2020, according to Chief Minister Datuk Seri Musa Aman. The BRT involves an intelligent transport system comprising closed-circuit television (CCTV), automated fare collection and fleet tracking systems, allowing users to manage their journeys more efficiently with lower costs. A total of four integrated terminals will be developed.

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HOT TOPIC

Project Highlights

by Singapore’s CPG Group, Desa Impian

Some development project highlights

In the mixed development category, the

aims to be the first of its kind in Sabah.

are Bukit Bantayan, the first property

latest debut is The Shore (previously

development by peninsular-based

known as Blu Summer Suites) in Kota

In the residential segment, the total

Gamuda Land in Sabah. It’s set to be

Kinabalu City Centre. This mixed-use

number of condominiums/apartments

the first earthquake resistant designed

commercial development within a prime

in Kota Kinabalu tallies at 17,105 units as

condominium in the State. It was

waterfront spot will consist of SOVO,

of Q4 2015, according to NAPIC. Slowly

launched at RM390,800 onwards, and to

serviced residences – managed by

but surely, the market is growing towards

date, 60% has been sold.

Citadines (Ascott Limited), and a retail mall.

improving its performance in the year 2016. New development options for

Maya@Likas is another latest

Borneo Estate Development Sdn Bhd’s

buyers have been limited, and as a result,

development by Borneo Estate

upcoming mixed-use development “Desa

projects launched in the first half of 2016

Development after its maiden project

Impian” with a GDV of RM4.2 billion is

have been achieving steady take-up

– Riverson. The project’s GDV is RM295

scheduled to launch by 2H2016. The

rates, signifying that consumer sentiment

million and to date, 60% of its units

project is an approved PR1MA affordable

is gaining traction from a challenging

have been sold which are priced from

development modelled after Singapore

2015. This is because developers have

RM476,710.

HDB (Housing and Development Board)

responded to the market environment

flats and with its initial concept planned

with smaller and affordable projects.

Supply of Condominium / Apartment Units in Kota Kinabalu (2006-2015)

17,105 units

Source: Knight Frank Research

16,015 units

14,428 units

12,315 units

11,709 units

9,904 9,736 units

8,136 units

7,952 units

2,357 units

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units

Incoming Supply of Selected New Office Space (Under Construction)

E Residence is the latest development of Cahaya Hartamas Sdn Bhd, a subsidiary

Location

Estimated Net Lettable Area (sq ft)

Southern Fringe of KK CDB

233,544

SOVO Exchange @ Aeropod

Kepayan

331,720

priced from a reasonable RM288,000

Boutique Office @ Aeropod

Kepayan

233,544

onwards.

Pacific Enterprise @ PacifiCity

Likas Bay

144,679

Sabah State Administrative Centre

Likas Bay

645,834

of Eng Han Group. The development comprises of 1,280 units housed in a 5 storey apartment with built-up areas between 1,029 sq ft and 1,176 sq ft and

Casablanca Residence by Kinsabina is a gated and guarded community off Jalan

Name of Development Signature Office Suites @ Sutera Avenue

Total

1,589,321

Kolombong. A two-storery terrace house

Source: Knight Frank Research

price ranges from RM788,000 onwards. space into the market due to recent

Kota Kinabalu Market Outlook

Meanwhile, in the office segment, similar

completions of Plaza Shell and Riverson

The overall property market is

to the 2nd half of 2015, the current

Suites. The average occupancy rate

anticipated to see little change

supply stands at 6.22 million sq ft with

of office space in Kota Kinabalu also

throughout 2016. However, good,

the new influx of 289,740 sq ft of office

remains at 91.8%.

developable land in sought after locations will continue to be safe bets in

A quick glance at the table above will

the long term.

show that approximately 1.5 million sq ft of office spaces will be added to the

Well-priced, affordable residential

market in one or two yearsâ&#x20AC;&#x2122; time. Moving

properties are expected to be

forward, market values for purpose-built

received well by the market as well as

offices should be sustained given the

end financiers. Transactions are still

general rise in the launch process of

anticipated to be skewed towards the

new office and shop office developments

secondary market as a result of limited

though yields are compressed as growth

new releases by developers.

in prices outpace increases in rental rates.

Commercial office occupancy may have its challenges towards the end of the

In February 2016, Petroliam Nasional

year and early 2017 when we expect to

Bhd (Petronas) has launched its

see completions of new purpose built

second office tower next to its existing

offices around the CBD fringe.

headquarters in Sembulan. Besides Petronas, there were no new launches

Retail rents may compress as strata mall

after the completion of Plaza Shell and

owners compete for the same tenants.

Riverson Suites.

Malls that are managed well, have good tenant mix, trade mix and advertising

However, there is significant portion of

and promotions will absorb the windfall

incoming office supply over the next one

of tenants. The tourism market will play

or two years, namely the Sabah State

a critical part across all sectors and with

Administrative Complex, Sutera Avenue,

the increase in hotel accommodation

Aeropod, PacifiCity and ITCC.

and flights, the outlook is positive in the medium to long term.

Looking ahead, there are expectations to attract more multinational and

For a brief

local corporations to venture into

report on the

Kota Kinabalu office sector with major

other markets

developers such as Mah Sing Group Sdn

in Malaysia,

Bhd, SP Setia Bhd, and Gabungan AQRS

scan this

Bhd have plans to incorporate Grade A

QR Code

purpose-built office buildings for their upcoming integrated developments.

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NEWS

Le Meridien Expands Footprints in Putrajaya, Malaysia

Le Méridien Hotels & Resorts, part of Starwood Hotels & Resorts Worldwide, Inc. (HOT: NYSE), unveiled Le Méridien Putrajaya, a newbuild hotel in the heart of Putrajaya, Malaysia’s federal administrative centre on Friday (Aug 19). Marking the brand’s third property in Malaysia after Le Méridien Kuala Lumpur and Le Méridien Kota Kinabalu, the hotel offers signature amenities and mid-century modern design that resonates with creative minded travellers seeking enriching new experiences. Handing over the mock key of Le Meridien Putrajaya

“Malaysia continues to be a bright spot for our growth and development,” said Charlie Dang, Regional Vice President, Southeast Asia, Starwood Hotels & Resorts Worldwide. “With the country’s growing influx of visitors, the opening of Le Méridien Putrajaya is set to be an inspired alternative to a traditional urban hotel stay in the Federal administrative Centre of Malaysia, for business and leisure travellers alike.” “We are thrilled with the addition of Le Méridien Putrajaya, expanding the brand’s footprint in Malaysia,” said Brian Povinelli, Global Brand Leader, Le Méridien Hotels & Resorts. “As our third Le Méridien hotel in Malaysia, we look forward to inviting both leisure and business travellers to unlock the destination through cuisine, culture and art.” “We are pleased to unveil the spectacular Le Méridien Putrajaya, a highly anticipated

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addition to our properties

Paris-born brand such as a

ensuring a fun element

investment”, said Lee Yeow

24-hour soundtrack curated

to any family stay. As part

Seng, Chief Executive Officer

by French Bossa Nova band

of the Le Méridien Family

of IOI Properties Group Bhd.

Nouvelle Vague, a variety

programme, the hotel

“With its culturally-refined

of delectable éclairs, and

offers Le Méridien Family

design and atmosphere

exclusive illy coffee prepared

Kids Club facility that

combined with stunning

by Master Baristas.

encourages children to

views of IOI Resort City, the hotel is sure to impress and

The hotel also offers 15

attract travellers.”

versatile venues for business meetings, conferences

learn and play through its cultural and educational activities. The hotel also presents compelling

Le Méridien Putrajaya

or one of-a kind social

features 353 contemporary

gatherings. Creative touch

guestrooms and suites,

points through visually

boasting expansive city or

appealing art and welcoming

garden views. Every space

pre-function spaces help

showcases a timeless

keep guests and delegates

European style through an

engaged and productive

artful Malaysian perspective

throughout any event. A

with locally inspired motifs

grand ballroom comprises

and craftsmanship. Upon

nearly 2,500 square metres

arrival at the hotel, guests

of contemporary function

encounter a complete

space, supported by a

sensory experience in the

dedicated event planning

signature Le Méridien Hub,

team and the most

which reinterprets the

technologically advanced

“The mission of Le Méridien

traditional hotel lobby into

audio-visual equipment.

is to expose the creative

a social gathering place and builds on the brand’s award-

Recreational facilities include

winning arrival experience

an inviting swimming pool

and coffee culture. Le

and a special kids’ pool,

Méridien Hub comprises

providing a welcome respite

signature elements from the

from a day of business and

culinary experiences with two distinctive in-house eateries. Signature restaurant Latest Recipe serves à la carte and comprehensive buffet selections along with interactive live-cooking stations, featuring innovative global flavours and locally inspired cuisine, while specialty restaurant Le Mei creates new interpretations of fine Chinese cuisine.

minded traveller to the most unexpected and engaging experiences, inside and outside the hotel. We are confident that we will be able to offer this distinctively

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NEWS

memorable experience

skating rink, an

at Le Méridien Putrajaya,”

entertainment

said Kumar Renoo, General

park in the

Manager of Le Méridien

largest shopping

Putrajaya.

mall in Southern Klang Valley,

Just 15 minutes from

the Botanic

downtown Kuala Lumpur

Gardens and the

by high-speed rail link, and

distinctive pink-

30 minutes by car from

domed Putra

Kuala Lumpur International

Mosque. Other

Airport, Le Méridien

recreational

Putrajaya is ideally situated

activities include

within close proximity to

golf, nature

Putrajaya’s key commercial

walks and an

and retail districts. With

open air cruise

wide boulevards and

on the 650-hectare

expansive greenery, the

MYR360++ per night for single

September to 31 December

man-made Putrajaya Lake.

occupancy in a ‘Signature

2016.

area incorporates cultured design that transcends the

Opening Offer

old and new. Also, guests

To celebrate the opening,

are just steps away from

Le Méridien Putrajaya is

a host of leisure facilities

offering a special ‘opening

such as an Olympic-sized ice

package’. Rates start from

Ribbon cutting ceremony

Room’, including breakfast for 1 person and high-

For more information or

speed Internet access. SPG

to make a booking, please

Members will enjoy double

visit www.lemeridien.com/

Starpoints® upon booking

putrajaya

this package for stays from 1

High Loan Rejection Rate of 75.30percent for Below RM250,000 Value Properties According to the Association

It is understood that while

of Banks in Malaysia 2014

commercial banks are also

Annual Report, it was reported

profit oriented entities, they

that ”the Malaysian banking

would still prefer to take lesser

sector remained resilient

default risk loans. NAPIC

due to sound capital ratios,

source reflects an increase in

solid liquidity and low credit

the total property loan value

risks notwithstanding the

from 2014 to 2015, with an

challenging market conditions

increase of RM187.7 million,

and uncertainties in the global

however the rise of loan value

economy”.

is mainly from the high cost property loan approval. While

It would be safe to say

It is understood that while commercial banks are also profit oriented entities, they would still prefer to take lesser default risk loans.

the weaker loan approval is

applicants experienced an

Prime Minister, Dato’ Sri Haji

that with the sound

more apparent, especially

alarming rate of 95%. Thus,

Mohammad Najib bun Tun

performance and strong credit

the middle to lower range of

this risk adverse attitude of

Haji Abdul Razak’s, promises

property type.

banks and tightening of bank

to provide 500,000 units of

fundamentals which are well poised by our major banks

policy have deter many people

PR1MA Homes to the Rakyat

in Malaysia, should reflect

This is also backed by

to own property and reduce

would not be any encouraging

more encouraging and lenient

information collected from

the effective demand in the

and successful without the

lending policy and outcome for

SHAREDA Research Unit, which

market.

banking industry’s support by

home buyers. Unfortunately

reflects high loan rejection

this is clearly not reflected in

rate of 75.30% for below

The pressure from the

or alternative to package

the property and real estate

RM250,000 value properties.

government to build and

their products that can be

development market.

On top of that, rejected

supply more affordable

redeemable in par with the

loans for MyHome Scheme

homes, especially to echo our

loan amount.

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providing immediate approval

EXCLUSIVE REPORT

ISKANDAR MALAYSIA

A CITY OF FAST MOVING DEVELOPMENT Iskandar Malaysia is the main southern development corridor in Johor. With a target achievement of 2025, Iskandar Malaysia plans to become an internationally competitive and resilient region. Positioned as South East Asiaâ&#x20AC;&#x2122;s premier specialty terminal, Flagship D is home to Tanjung Langsat Port and Johor Port â&#x20AC;&#x201C; boosting trades with the likes of Singapore and other countries. In this issue, Property Hunter highlights the prominence of flagship zones A & D in Johor.

Aerial view of Sultan Iskandar CIQ, photo courtesy of IRDA www.PropertyHunter.com.my

EXCLUSIVE REPORT

ISKANDAR MALAYSIA

THE MAIN SOUTHERN DEVELOPMENT CORRIDOR IN JOHOR Iskandar Malaysia is set to become Southern Peninsular Malaysiaâ&#x20AC;&#x2122;s most developed region where living, entertainment, environment and business impeccably converge within a bustling metropolis.

FLAGSHIP A: JOHOR CENTRAL BUSINESS DISTRICT (CBD) Johor Bahru City Centre is Flagship Zone A, a development of a new financial district, the central business district, the waterfront city of Danga Bay, a mixed development in Tebrau Plentong and the Malaysia/Singapore Causeway.

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Flagship A covers 18,433 acres,

Johor Bahru, originally called Tanjung

confined by Pasir Gudang highway

Puteri was founded in 1855 by

up north, Sungai Tebrau to the east,

Temenggong Daeng Ibrahim. The city

Sungai Skudai to the west and the

centre is now the primary area for

Straits of Johor. Other than Johor

commercial and trading activities. Its

Bahru city centre, the key areas in

role as an administrative centre is

Flagship A are the industrial area of

shared with Kota Iskandar, the new

Tampoi, and the mixed residential and

state administrative centre for the

commercial areas of Pelangi, Larkin,

state of Johor. The completion of

Majidee, Tebrau and Danga Bay.

Sultan Iskandar Customs, Immigration and Quarantine Complex in 2008 next

View of Danga Bay, photo courtesy of Iskandar Waterfront Holdings

to the present Johor Bahru railway

with its vicinity, makes it one of the

2018) and Iskandar Malaysia. Another

station has strengthened its function

fastest growing cities of Malaysia.

Light Rapid Transit hub (serving fast

as the southern gateway of Malaysia,

and light mass transport) is also

making it the largest custom and

In 2015, an influx of approximately

scheduled to be built at Kempas

immigration centre in the country.

twenty million visitors were anticipated

Interchange to serve as the transport

to visit Iskandar. It is also anticipated

hub for Southern Johor and Iskandar

Johor Bahru City, also known as JB, is a

that there will be further development

Malaysia.

quarter size of neighboring Singapore

of a rapid transit hub at the doorsteps

and has about a million residents.

of the CIQ to be a connection point

There are about another two million

between the Singapore Mass Rapid

staying in its outskirts and together

Transit (scheduled to be operational by

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EXCLUSIVE REPORT

KEY LANDMARKS

in addition to supporting the water

international and local products all

pipeline system into Singapore. On a

compete for attention.

Danga Bay

typical day, it carries approximately

Danga Bay or Teluk Danga is the largest

60,000 vehicles.

recreational park in the city of Johor Bahru. Many interesting events are held there especially during festive seasons. Danga Bay is also sometimes referred to as the “Vision City of the South”. Danga Bay Phase 1 makes up 240 acres of an integrated Waterfront Development comprising financial, commercial, residential, lifestyle, leisure and familyoriented tourism development.

Sultan Ibrahim Building, Bukit Timbalan

Istana Bukit Serene

Constructed in the 1940s, the Sultan

Istana Bukit Serene in Johor is the

Ibrahim Building dominates the Johor

palace of the Sultanate of Johor. The

Bahru skyline. The Japanese army used

palace is located on high ground and

it during World War II in their final

has a 35-metre high tower. The Istana

assault on Singapore. The Saracenic

Bukit Serene was built in 1938 and is the

character and mosaic detail make this

official residence of the Sultan of Johor.

one of the most interesting buildings in Johor Bahru.

City Centre Given city status in 1994, Johor Bahru

Customs, Immigration and

The Causeway

is a fast growing city. Latest census

Quarantine Complex (CIQ)

The Johor-Singapore Causeway is a

figures indicate that it is fast becoming

Located at Bukit Cagar, the Customs,

1,056 metre causeway that links the

Malaysia’s second largest city, with a

Immigration and Quarantine Complex

city of Johor Bahru in Malaysia across

population of over 1 million. Shopping

(CIQ), occupies an area of 232,237

the Straits of Johor to the town of

opportunities flourish in Johor Bahru.

square metres. It is the largest of its kind

Woodlands in Singapore. It serves

Modern malls, arcades, handicraft

in Malaysia. Comparisons have been

as a road, rail and pedestrian link,

centres, bazaars and markets offering

made to Kuala Lumpur International

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Airport and Singapore Airport, which are

For Flagship A:

cargo imports and exports via

also major entry points into Malaysia

Rapid Transit System (RTS) is the

Changi Airport.

and Singapore, respectively.

hero. Forget High Speed Rail (HSR). RTS is expected to operate in 2019,

There are speculations on a

The CIQ, which was unveiled to the

meanwhile citizens will see the

development of an internal bridge from

public in 2008, is a very large complex

completion of HSR in 2026, some 10

somewhere within close proximity of

at the causeway to Singapore that

years from now. The RTS will see Bukit

Tanjung Langsat to the West-East sea

accommodates Malaysian customs

Chagar as the terminating station,

across, to link Pengerang and Desaru,

checks for cars, trucks, buses and the

which links Johor Bahru and Singapore.

ensuring better and easier accessibility.

JB Sentral train station. CEO of Ho Chin Soon, Ishmael Ho, said “since

For Flagship D:

time immemorial, human beings were

Many forgotten that several months

inclined towards places of livelihood.

ago in a Star Interview, the Sultan

In today’s milieu, people gravitate to

himself, Sultan Ibrahim Ismail, hinted of

economic activity areas”.

a 3rd bridge, connecting a district from

Sources: 1.

https://iskandardevelopment. wordpress.com/2013/07/09/ flagship-a-iskandar-malaysia/,

Stulang Laut Johor towards Changi As Iskandar Malaysia’s economy is

Airport. Having a 3rd bridge will pose a

tied closely with Singapore, proximity

great deal of advantages for example:

http://www.iskandarproject.com/ flagshipa.html,

1. Better land connectivity

https://iskandardevelopment. wordpress.com/2013/07/09/ flagship-a-iskandar-malaysia/

is important. Distance and travelling period play an important role in terms of proximity. 2. Benefit industrialists for their air

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EXCLUSIVE REPORT

FLAGSHIP D: EASTERN GATE DEVELOPMENT

linkages and a complete ecosystem

warehousing. Johor Port is a subsidiary

with high value added and employment

of MMC Corporation Berhad.

Flagship D covers Pasir Gudang Port,

core sectors are strong and vibrant,

The port itself was established in 1977

Pasir Gudang Industrial Park, Tanjung

thus further actions are needed to

under a government authority and all

Langsat Port and Tanjung Langsat

strengthen them.

operations were fully privatized in 1995

contribution to the region. Not all

under JPB. Being a part of the MMC

Industrial Complex. This township is set to be a high

EMERGING SECTORS Finance, Insurance, Real Estate & Business Services (FIREBS)

growth region driven by the services sectors and with continuous support from selected manufacturing sectors especially the existing key economic

Creative

group of companies, the company managed to prove itself as a capable operator and a profitable venture. The reasons behind its success are: •

new requirement as a catalyst for

drivers, namely electrical and electronics

the further development of its

(E&E), oleochemical, petrochemical and

Health Services

food processing. Flagship D has the

infrastructure. Every new customer entering the port becomes part of a

largest concentration of palm oil refining

valued community working towards

industries and downstream activities in

Education Services

the world.

their shared development. •

With state-of-the-art-facilities to revel

Diversity of Services. JPB provides facilities for the handling of many

in, Iskandar Malaysia is a destination

Contrariwise, Emerging Sectors are

filled with infrastructure and one-stop

newly induced. Their horizontal and

business centres to ensure business

vertical linkages with other industries

transactions are fast, seamless and

have great potential to be developed to

convenient.

drive economic growth.

raw materials can be received in

To achieve this target, the nine

With a target achievement of 2025,

Free Zone or the surrounding

promoted sectors are categorized into

Iskandar Malaysia plans to become

industrial area, and then exported

two groups namely the core sectors and

an internationally competitive and

via containers. Thus, there is an

the emerging sectors.

resilient region. They believe that the

enormous potential for savings in

core promoted economic sectors shall

terms of cost and time to be gained

be geared towards higher value added

due to the options available for

activities and deeper cluster linkages.

cargo handling.

CORE SECTORS Electrical & Electronics

On the other hand, the growth of emerging sectors shall be supported by

Petro Chemical and Oil & Gas Food & Agroprocessing

Logistics

Tourism

Customer Focus. JPB uses every

types of cargo and provides services across more than one mode of cargo. For example, liquid bulk form, processed in the

Tanjung Langsat Port

a complete ecosystem.

Tanjung Langsat Port (TLP) is the third

Transformation of Johor Port and Tanjung Langsat Port

the Port of Tanjung Pelepas and Johor

Johor Port

handles bulk cargo such as liquefied

Johor Port Bhd (JPB) services include

petroleum gas (LPG) and dangerous

cargo handling for a diverse range

chemicals. Established in 1995 and

of cargo, namely, dry cargo, general

begun partial operations in 2003, TLP

cargo, liquid bulk and containers. They

is situated 22km from the international

also include the endowment of marine

shipping lane, 5km from Johor Port and

port in Johor, designed to complement Port in Pasir Gudang. Placing itself as Southeast Asia’s premier forte, it

services such as towage, piloting, ship-

30km from Johor Bahru. It has more

Core Sectors are sectors that have been

to-ship transfer, bunkering and supply

than 750 acres of land within the port

long established in Iskandar Malaysia.

of fresh water. Port facility management

area and a 4.5km shoreline fronting the

They are stable economic drivers,

includes the running of the Johor Port

Straits of Johor.

with strong horizontal and vertical

Free Zone, property management and

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Other Key Developments for Flagship A

This is the core of Johor Bahru and is

a dedicated and steadfast port with

Ibrahim International Business

first Grade A office building at Komtar

the ability to meet the demand for

District (IIBD):

JBCC will be available soon.

petroleum, petrochemical, edible oil

Regeneration project for the Johor

and bulk dry cargo handling facilities.

Bahru CBD. Including the Sungai

Flagship D however sees Mah Sing’s

Endowed with a 4.5-kilometre shoreline

Senget Transformation project, and the

Meridin East and EcoWorld’s Eco Tropic

ideal for O&G and marine-related

development of Coronation Square,

developments popular with the market.

industries, the port’s development

a RM3 billion GDV mixed residential,

These project have products in a more

is divided into four zones – storage

commercial and medical suite

affordable spectrum and is seeing a

terminals, oilfield services & equipment

development.

good response. Located between the

The 1,000-acre port, operated by Tanjung Langsat Port Sdn. Bhd. (TLP), a wholly owned subsidiary of JCorp, is

(OFSE), regional marine supply base and

a prime location for Residential and Commercial properties. Furthermore JB’s

business district of Flagship A and the

offshore fabrication maritime hub.

High Speed Rail and Rapid Transport

RAPID development over in Pengerang,

System:

Flagship D is in a strategic position

Property Outlook

Both are vital infrastructure upgrades

As quoted on the Iskandar Malaysia

aimed at improving travel between

website, “Iskandar Malaysia houses are

Singapore, Iskandar Malaysia and

generally built with the greening nature

Kuala Lumpur. These projects when

in mind because we know, you just

completed will be greatly beneficial to

love nature. We make the best of living

the region and property located in the

environment to flaunt our beautiful sunny

vicinity to station locations can expect to

and breezy tropical climate.”

be hotly contested.

Ricky Lee, Executive Director of Knight

Flagship A also sees Bukit Chagar, Bukit

Frank Malaysia (Johor Head) shares

Senyum and along the Tebrau Highway

some information about the property

as one of the main hotspots as these are

outlook in Johor (see table below).

likely locations for HSR and RTS Stations.

Sources: 1.

http://iskandarmalaysia.com.my/ promoted-sectors/,

http://www. worldwidepropertyinvestment.com/ flagship-d.html

Executive Director of Knight Frank Malaysia (Johor) – Ricky Lee

http://iskandarmalaysia.com.my/ housing/

http://www.jcorp.com.my/tanjunglangsat-port-sdn-bhd-105.aspx

PROPERTY OUTLOOK IN JOHOR

FLAGSHIP A

Name

Location

Developer

No of Units

Floor Area (sq ft)

Price, from (RM/sq ft)

Development Status

Pinnacle Tower

Jalan Dato Abdullah Tahir, Johor Bahru

Mahabuilders Berhad

273

1,115 – 1,427

800-950

Ongoing

Twin Galaxy Luxury Residences

Jalan Dato Abdullah Tahir, Johor Bahru

Golden Oriental Realty Sdn Bhd

668

560 – 3,100

800

Completed

Sky Suites

Jalan Bukit Meldrum, Johor Bahru

Mahabuilders Berhad

250

581 – 2,281

800 - 900

Completed

The Wave @ Marina Cove

Sited along the Tebrau River Basin

IOI Properties

1,465

526 – 1,344

800

Ongoing

Tower B Southkey Mosaic Serviced Residences

Southkey, Johor Bahru

Selia Pantai and IGB Corporation Bhd

584

676 – 1,509

900 – 1,000

Ongoing

Paragon Residences

Jalan Tenku Petri 1, Straits View, Johor Bahru

ACG Group and Joland Group

533

735 – 10,725

1,000-1,200

Completed

FLAGSHIP D Name

Location

Developer

No of Units

Floor Area (sq ft)

Price, from (RM/sq ft)

Development Status

Green Haven

Kota Puteri

Welton Development

1,134

698 – 1,598

503,000

Ongoing

Taman Rinting

Masai

I & P Group Sdn Bhd

2,235 – 2,384

541,000

Ongoing

Pine Signature

Pasir Gudang

Scientex Berhad

182

1,725 – 1,908

330,000

Ongoing

The Caspian @ Meridin Bayvue

Masai

Venice View Development Sdn Bhd

1,269

980 – 1,366

432,000

Ongoing

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PROPERTY SHOWCASE

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EXCLUSIVE REPORT Johor Bahru Causeway, photo courtesy of IRDA

Propenomy of Iskandar Malaysia

Is Iskandar Really in

By Dr. Daniele Gambero

Fact file about Iskandar Malaysia Iskandar Malaysia is an economic development corridor booming in Southern Johor, Malaysia. The development region encompasses an area of 2,217 square kilometres which is three times the size of Singapore and two times the size of Hong Kong. Iskandar Malaysia is envisaged to capitalize on its current synergies with Singapore as it aims to complement each other as an economic hub. Meticulously planned under the Iskandar Malaysia Comprehensive Development Plan (CDP), the economic region comprises of five flagship zones. Encompassing a vast acreage of land, it is the largest single development project ever to be undertaken in the region. Because of its strategic location, accessibility to leading Asian cities, proximity to some of the world’s most rapidly growing and important economies, Iskandar Malaysia is poised to attract an exciting influx of foreign and high-level corporate investments as discerning investors looking to benefit from growth in Asean and Asia.

“

Trouble?

We have all heard about the possible best and worst of this much spoken about economic development region and still most of us do not see the long term picture.

Located in Johor, the southern gateway to Peninsular Malaysia, its advantages include: •

Six to eight hours’ flight radius from Asia’s burgeoning growth centres such as Bangalore, Dubai, Hong Kong, Seoul, Shanghai, Taipei and Tokyo.

•

Within reach of a global market of some 800 million people.

•

Accessible by air, land, rail and sea.

•

Flanked by three major ports, the Pasir Gudang Port, Port of Tanjung Pelepas and Tanjung Langsat Port.

Sultan Iskandar CIQ Complex, photo courtesy of Khalil Adis

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Perception & Reality of Iskandar Malaysia

We have all heard about the possible best and worst of this much spoken about economic development region and still most of us do not see the long term picture. I’ve recently read an article published in a Singaporean paper recommending to avoid as much as possible Malaysian and especially Iskandar Malaysian properties as investment product. Surprisingly, the article mentioned a few unsuccessful stories and none of the real successful ones. I keep repeating in my columns and presentations that smart investors shouldn’t look at properties as something that stands on its own! Property is the guaranteed result of a properly planned economic growth which

Mahkamah Tinggi Johor Bahru, photo courtesy of Khalil Adis

includes: 1. Master-planning of a well-diversified, in terms of industries – manufacturing – services, medium or long term growth. 2. Planning and execution of major infrastructures such as roads, highways, public transportation, commercial harbours, public healthcare, public education. 3. Incentive packages designed to attract FDI for a well-diversified and wide list of countries.

“

4. Wealth growth and distribution as without an adequate purchasing power given to the rakyat, there will hardly be a good economic growth which is boosted mostly by domestic consumption (Malaysia stands at 60% domestic consumption contribution to its annual GDP grow).

There are 5 flagship areas; each of them has been designed with different economic growth drivers

The Singaporean article only mentioned the MM2H program, which, since its inception, was mostly designed to attract foreigners to reside in Malaysia at the end of their working lives. Most people would call this retirement. If we are looking at economic growth, I would rather look into the statistics of TalentCorp or at the number of professional working visas released by the Immigration Department in the last 5/6 years and, out of the total, how many are currently based in Johor/Iskandar Malaysia. Another surprise came for the fact that the author

of the article has made a mere, superficial and “visual” evaluation of how the development of Nusajaya, now Iskandar Puteri, is proceeding without looking into actual facts and numbers. Iskandar Puteri is only a very small component of the master-plan for Iskandar Malaysia. There are 5 flagship areas; each of them has been designed with different economic growth drivers and from all the recent assessments done, most of the committed and non-property related investments have kicked- off or have been completed. Now, I always say in my presentations, look at numbers and facts not perceptions: to do so, let’s see together where Iskandar Malaysia is today and possibly in the next 4 to 5 years…

This article is the first of a three-part series by Dr. Daniele Gambero. In the next issue, Dr. Gambero will explain about the economic development and identify the different triggers that constitute Iskandar Malaysia as still one of the best places to invest in. REI Group of Companies CEO and Co-Founder, Dr. Daniele Gambero gives presentations on the Property Market and welcomes feedback at daniele.g@reigroup.com.my “ Sources: Napic Property Market Report, CIMB, Pemandu, Sime Darby/ University Malaya Affordable Housing Publication, department of Statistics Malaysia and REI Group Research archives

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This Special Feature is brought to you by

Log-on to www.PropertyHunter.com.my/special-features for more exclusive reports and news on property

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Insurance for Developers

He said that in case of abandonment of the project, the five percent bank guarantee would eventually be claimed as part of the cost to complete the project.

He added that

its members must submit

However, in many cases, the

insurance scheme.

to the housing controller in

five percent amount would

exchange for a developer

not be sufficient to bear the

licence, as reported in

overall cost to remedy the

Borneo Post.

project, he said.

Speaking at the National

“Under the new insurance

Association of Malaysian Life

scheme, developers would

Insurance Field Force and

be able to purchase an

The Sabah Housing and Real Estate Developers Association (SHAREDA) has called on life insurance companies in Sabah to propose an insurance scheme that developers can purchase in lieu of the five percent bank guarantee that

Advisors (Sabah Branch) 13th

insurance instead of just

AKARD Award Banquet held

paying the five percent

at the Hakka Hall on Friday

bank guarantee. This is

(Aug 12) evening, SHAREDA

to eradicate the worry of

president Datuk Francis Goh

purchasers and house buyers

said that the five percent

association who always

bank guarantee was to

oppose the concept of ‘sell

ensure the developers would

then build’ rather than ‘build

be able to complete their

then sell’ concept which is

projects without fail.

already being practised in Australia.”

SHAREDA would be able to provide insurance companies with all the necessary information so that they could come up with such an

He added that such schemes were already available in Korea.

NAMLIFA president

Award was the premier award

James Bong commended

for life insurance industry and

the 70 recipients of various

that it symbolises excellence,

categories of awards

dedication, good conduct,

presented during the event.

professionalism and of providing the best service to

He said that the awardees

endured the first year of the

Global Survey of Consumer

goods and services tax (GST)

Confidence and Spending

without the economy facing

Intentions, Malaysia has

major downturn.

their customers.

had achieved a remarkable success with their hard work,

At the same time, the

dedication and commitment

association also hoped to

towards their business.

achieve its 10,000 members target by next year, he said.

He explained that the AKARD

Malaysia Is the 28th Most Confident Nation Globally According to Nielsen

SHAREDA President, Datuk Francis Goh

Meanwhile,

snapped the 28th spot for the most confident country

Thus, the consumer

globally for the second

confidence outlook is

quarter of 2016. Previously

improving with more

in the first quarter, Malaysia

Malaysians believing the

was in the 36th position, but

economy is becoming sturdier

has now improved 8 spots,

than it was a year ago.

reported Nielsen, a global performance management firm, as reported in

Among the major concerns of Malaysians are economy

PropertyGuru.com.my.

(45%), job security (25%), as

Nielsen Malaysia Country

job prospects (36%) for the

manager Richard Hall stated

next 12 months.

that, Malaysia has faced currency devaluation and had

well as positive take on local

Meanwhile, almost half of the respondents have a

The consumer confidence outlook is improving with more Malaysians believing the economy is becoming sturdier than it was a year ago

positive view of their personal

Provident Fund contribution

finances (48%) in the coming

to 8%, coupled with the

year, despite the lethargic

increase in the minimum

market.

wage has also improved and

“The government’s recent move to reduce the

boosted consumer spending power,” he noted.

mandatory 11% Employees

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NEWS

Transport Plan for Perth With 3.5m People New train lines and freeways,

to Marshall Road in Malaga.

an inner-city subway and

Northbridge and Leederville

“Aside from new infrastructure

with a high-capacity, high-

and expanded services,

frequency service.

network efficiency measures

more bridges across the

Marshall Road is part of a

river — including several

proposed rail line between

specifically for bikes —

the city and the northern

The new road proposals

travel choices will make sure

are part of the Barnett

suburbs. The first stage will

include a highway that links

involve a tunnel from the CBD,

we get maximum value out of

Government’s long-awaited

Tonkin Highway to the Mitchell

the transport system.

transport plan that was

with the second stage linking

Freeway and another that

released today (July 29), as

it to the Joondalup line.

links Kwinana Freeway near

“With the cost of congestion

Rockingham with Stock Road.

in Perth currently

reported in The Western

and strategies to influence

Australia news.

The plan proposes two significant new river

The plan does not include

year, the Liberal National

The plan is designed

crossings, one that will link

specific costings.

Stock Road to Stephenson

Government has developed

to prepare Perth for a population of 3.5 million

Avenue and the other that

Mr Nalder said the existing

people, which is expected

involves a tunnel under Perth

transport network would

around 2050.

Water that connects the

require fundamental changes

Causeway to the Narrows

to support a population of

“This plan draws from

interchange.

3.5 million people, resulting

expertise within the

in improved connectivity with

State’s transport agencies,

It does not include the controversial MAX light-rail

estimated at $2 billion a

a comprehensive and smart plan that will keep Perth and our economy moving.

proposal from Mirrabooka

This would allow Riverside

activity centres where people

universities, recent research

to the CBD but does have a

Drive to be closed.

live, work and play and

and global knowledge.

light-rail service — previously described as the Knowledge Arc — that links the University of WA and QEII and Canning Bridge, via the CBD and Curtin University. And a rail link to Ellenbrook is canvassed in the plan for “beyond 3.5 million people” but, unlike other previous proposals, involves a spur line

expanded public transport And the plan also involves

and cycling networks

“green bridges” for cyclists

“While this is a plan prepared

connecting people to where

and pedestrians, including

by transport planning

they want to go.

experts, everyone has a

one that connects Chidley

right to have a say on what

Point, Point Walter and Point

“Improved road and freight

Resolution.

we aspire our city to look

networks, tunnels and river

like. The State Government

crossings will play a part in The city subway is another

will be consulting with local

our future network, keeping

long-term proposal. It

governments, industry and

the city vibrant, connected

will connect the CBD with

the community during the

and productive,” Transport

East Perth, West Perth,

next three months.”

Minister Dean Nalder said.

Malaysian Houses Priced Up to RM165,060 ‘Considered Affordable’ Malaysian houses priced

were attracted to build

mismatch

up to RM165,060 each are

higher-end properties priced

between the

“considered affordable”

above RM500,000 each.

pace of growth

to the median Malaysian household, but only 21% of housing launches in the country were priced below RM250,000 in 2014, as reported in TheEdgeProperty. com.my. This was one of the talking points mentioned by Deputy Finance Minister Datuk Othman Aziz in the 2017

“While affordable housing initiatives by the Government have gathered some momentum, the current level of house-building in the affordable housing segment has not been sufficient to meet the demand.

in the supply of new houses and the net increase in the number of households, particularly in the past five years,”

Othman said developers were attracted to build higher-end properties priced above RM500,000 each

Othman said in a

by Prime Minister Datuk Seri

statement today.

Najib Tun Razak on June 16 this year.

According to him, the focus meeting on affordable

Malaysia’s 2017 Budget will

on affordable housing.

“The worsening shortfall in

housing followed the 2017

be tabled in Parliament this

Othman said developers

housing supply reflected the

Budget consultation chaired

Oct 21.

Budget focus group meeting

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HOT TOPIC

Malaysian Property Sector After the 3% Cut of OPR By Ooi Chia Shen

On 12th July, Bank Negara Malaysia unexpectedly reduced the Overnight Policy Rate (OPR) by 25 basis points to 3% during their Monetary Policy Committee (MPC) meeting recently and cited rising risks from Britain’s exit from the European Union. As reported by media and research firms, banks including CIMB, Ambank, Maybank, BSN and Public Bank had revised their base rate (BR) for loans and financing products following the central bank’s latest move. Aside from encouraging more spending in the market by consumers due to lower interest rates in savings, the property sector is deemed to receive a boost from this. But as a property buyer and investor, here is what you can expect to benefit from the policy change:

Lower costs to be paid for mortgage loans As most banks have already revised their base rates,

Malaysia’s household debt-to-gross domestic product

it is very likely you will be able to pay lesser interest

(GDP) ratio increased to 89.1% as of 2015 from 86.8%

rates as long as the OPR remains at current status.

in the previous year.

For example, CIMB Group Holdings Bhd has recently announced that it is lowering its base rate (BR) by 20

It is important to note that housing loans are the

basis points for loans or financing products for its

largest components of household debt at some 49% –

Malaysian business.

expanded at a slower pace of 11.9% in 2015 compared with 13.3% year-on-year in 2014. Market observers and

This may come as a relief to all debt owners considering

experts believe that this number may see a slight drop

the fact that Bank Negara announced earlier that

supported by lower base rate revision from the banks.

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Easier housing loan approvals Banks which have revised interest rates for both

if you are looking to buy a car, house or seeking to

savings and loans might experience lower liquidity in

borrow money, it might be easier to get approval

cash flow as people might withdraw their money to

now compared to before where banks were very

put into other alternatives that can earn them higher

cautious and particular with lending.

returns compared to saving in a bank. However, it is important to consider all possible As a result, these banks might make it easier for

options when it comes to selecting the products

people to borrow from them to boost income from

offered by loan providers by factoring in costs and

loan growth and help the bank stay competitive. So

also your capability to pay back the loan.

Possible boost in real estate investment trusts (REITs) Following the lower interest rates offered by banks

have become more attractive due to the expected

in fixed deposits and savings account, Malaysia REITs

widening spread between the sectorâ&#x20AC;&#x2122;s yields against

and property stocks may be your next target for

the risk-free Malaysia government securities (MGS).

investment considering its higher yield of REITs and revival of interest in the property market.

On top of that, larger interest in REITs may drive capital appreciation in its unit price for the short

With interest rates back at 3% following the

term, which may justify your investment in REITs

surprise move, the valuations for Malaysian REITs

starting now.

Minimal impact on property sales growth Despite the positive move in OPR revision by Bank

In other words, you might want to hold the decision

Negara, analysts are certain that it may not be enough

to sell or rent out your property as market demands

to boost the stagnant property market for now.

are expected to remain sluggish. However, if you have the capital to take on a new property, this might be a

In another report by The Star, Association of Valuers,

good opportunity to invest in property as developers

Property Managers, Estate Agents and Property

are offering more freebies and prices are stabilizing at

Consultants in the Private Sector Malaysia (PEPS)

the moment.

organising chairman Elvin Fernandez said that the Malaysian residential property sector is expected

However, as a smart investor, you should make sure

to remain flat going into 2017, weighed down by

your finance position is in the right place with enough

uncertainties in the global economies.

cash flow and healthy debt service ratio to avoid yourself falling into a financial pit hole in the future.

What is OPR? OPR is an overnight interest rate set by Bank Negara Malaysia as

About the author Shen is a content writer in CompareHero.my, a

the target rate for its day-to-day liquidity operations and is also

financial comparison service. He is passionate in

used for monetary policy direction.

so many things, music and journalism come on top of it. He also believes the world has much to offer

It is the interest rate at which a depository institution lends funds

and everyone should try harder to learn as much as

to another depository institution (short-term), or the interest rate

they can. He believes the best way to do that is by

the central bank charges a financial institution to borrow money

travelling.

overnight. The overnight rate is the lowest available interest rate, and as such, it is only available to the most creditworthy institutions.

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APARTMENT FOR SALE

Extracted from PropertyHunter.com.my

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

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Liwagu River

Kinabalu Park Boundary

Kinabalu Park Approximate outline of proposed resort site in yellow

Royal Kinabalu Site

Prime Mount Kinabalu Resort Development Land For Sale Location of proposed resort site adjoining Kinabalu Park

Attention Developers and Investors! A unique opportunity to develop a luxury eco-resort on 22.4 acres of cool pristine highland forest land located at the foothills of Mount Kinabalu. The land comes with fully approved development plan for a 192-room luxury resort and is on a CL title which can be owned by a non-Malaysian. The property borders directly on Kinabalu Park, the Liwagu river and the main road from Kota Kinabalu to Kundasang with an uninterrupted view of Mount Kinabalu. Kinabalu Park is a major tourist destination and the gateway to Mount Kinabalu. Accommodation: 64 / 1-room Villas, 40 / 2-room Villas (with living room) , 48 Hotel Rooms, Executive and Staff Quarters

Facilities: Restaurant/Bar with Pool Deck, Health Spa Complex, Conference Room

Access from main road and ridge top location

Asking Price

USD 3.75 million For further information, kindly contact: Nasran Harun at +60188318282 or Kinabaluprop@gmail.com

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APARTMENT FOR SALE

Extracted from PropertyHunter.com.my

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

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CONDOMINIUM FOR SALE

Extracted from PropertyHunter.com.my

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

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SEMI-DETACHED HOUSE FOR SALE

Extracted from PropertyHunter.com.my

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

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TERRACE / LINK HOUSE FOR SALE

Extracted from PropertyHunter.com.my

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

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BUNGALOW / VILLA FOR SALE

Extracted from PropertyHunter.com.my

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

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100