EAST MALAYSIA’S LEADING PROPERTY PORTAL, MAGAZINE & EXPO
EXCLUSIVE REPORT
ISKANDAR PUTERI
Malaysia’s Perspective Of The Future Smart City Propenomy of Iskandar Malaysia : Is Iskandar Really in Trouble? | INTERVIEW: K C LEE : There’s More To Hansgrohe® Than Just Bathrooms | Choosing the Right Colours for Your Personal Space Property Transfer Of The Deceased’s Estate | Should you rent or buy a property in Malaysia?
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CONTENTS PRoPERTY SHOWCASE | 10 FEATURED EVENT | 18 FEATURED EVENT | 22 HOT TOPIC | 26 FEATURED EVENT | 34 HOT TOPIC | 40 EXCLUSIVE REPORT | 47
FEATURED EVENT | 58
Bukit Bintang City Centre : The New Heartbeat of Kuala Lumpur S P Setia previewed its luxury residential tower, ViiA Residences S P SETIA LAUNCHES EXCLUSIVE VILLAS IN THE SKY Propenomy of Iskandar Malaysia : Is Iskandar Really in Trouble? ADMIST HILLS, SEA AND SKY, LIES ALILA2 UNDERSTANDING PROPERTY VALUATIONS : Is It Really That Important? ISKANDAR PUTERI : Malaysia’s Perspective Of The Future Smart City • The Bridging of Opportunities : Iskandar Puteri • Ramada Suite : Own A Piece of Luxury REDEFINING URBAN LIVING WITH THE ROBERTSON
INTERVIEW | 62
K C LEE : There’s More To Hansgrohe® Than Just Bathrooms
HOT TOPIC | 68
THE PSYCHOLOGY OF COLOUR : Choosing the Right Colours for Your Personal Space
contributor | 72
Rest in Peace : Property Transfer Of The Deceased’s Estate
contributor | 74
Value Investing in Australian Property using Warren Buffett’s Methods
contributor | 78
Should you rent or buy a property in Malaysia?
COFFEE TALK | 82
• •
Should Developers Be Allowed To Be ‘Money Lenders’? Buying Real Estate? It Better Be Legal, Else, Suffer The Consequences
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PROPERTY SHOWCASE
The New Heartbeat of Kuala Lumpur Introducing Bukit Bintang City Centre (BBCC) – The most extraordinary integrated city that is destined to inspire and rejuvenate the thriving Golden Triangle of Kuala Lumpur. A Development By UDA, ECOWORLD & EPF
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PROperty Showcase
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WHERE LIFE IS SPECTACULAR Introducing the Bukit Bintang City Centre (BBCC) – the most extraordinary integrated city that will inspire and rejuvenate the Golden Triangle of Kuala Lumpur. This immaculate cosmopolitan gem will be a comprehensive destination of work and leisure comprising state-of-the-art office towers, thoughtfully designed residences and luxurious hotels surrounded blissfully by lush parks and gardens. Shopping and dining experiences are in abundance, with an electrifying entertainment hub perfectly complementing a dazzling lifestyle mall. Spanning 19.4 acres , this much-anticipated multi-billion ringgit innovative development by the consortium of UDA, EcoWorld & EPF is poised to redefine the ecosystem of urban living. With the birth of BBCC, the most vibrant triangle in the city is set to become even more golden.
Retail Mall Entrance www.PropertyHunter.com.my
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PROperty Showcase
THE BENCHMARK OF CITY LIVING Retail Mall A one million sq. ft. retail mall will provide all the needs of modern shopping with specialty and eclectic brands complementing exciting alfresco eateries. A mix of local and international retailers will elevate this shopping experience to a new level.
Lifestyle Street Imagine a contemporary street that perfectly encapsulates shopping, eateries and entertainment for brilliant social gatherings that both residents and guests can enjoy.
Entertainment Hub BBCC will pulsate with music, lights and
Lifestyle Street
excitement in a capacious music hall managed by renowned, international entertainment powerhouse. Unwind at the large Cineplex or stroll through the Malaysia Grand Bazaar showcasing home-grown talents that create genuine heritage crafts and fresh contemporary works.
Signature Tower An iconic 80-storey Signature Tower will add grandeur to the skyline of the city. Prime offices are designed to meet green standards, there’s also a 5-star hotel with stellar hospitality features and serviced apartments overlooking a spectacular view of the city’s skyline.
Strata office Small Office’s spatial needs are often underserved and the Strata Office Tower not only steps out with 341 units of 948 – 1,187 sq. ft. offices, It even steps up with grade-A amenities for tenant to enjoy - a grand office lobby, professionally managed business conveniences comprising reception services, a business lounge, conference room, meeting rooms, video conferencing facilities and a vast rooftop garden, all making it the benchmark for efficient small corporate spaces in the city. The Stride Strata Office
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Lucentia Residences
Hotel Enjoy the luxury of BBCC’s hotel that pampers its guests with seamless experiences made memorable even for the most discerning traveller.
Residential Five luxury residential towers will each have its own deck overlooking the entire green park on the retail podium. This grand vision paired with top-notch security and a separate dedicated entrance will make it one of the most sought-after inner-city addresses. Rooftop Garden
Parks and Gardens Green lungs are threaded into BBCC’s design to ensure biodiversity and environmental sustainability. Wherever you look, there will be gardens – surrounding the architecture, enveloping the interiors, filling spaces with green life.
Transit hub A central transit hub connecting the existing Hang Tuah monorail, the LRT as well as linkage to the upcoming Merdeka MRT station will link BBCC to all parts of Kuala Lumpur and beyond. Aerial View From Top www.PropertyHunter.com.my
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PROperty Showcase
1// Retail Mall 2// Entertainment Hub 4// Strata Offices 5// Hotel
3// Signature Tower 6// Residences
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SEAMLESS CONNECTIVITY Surrounded by a web of transportation network, BBCC is served by major vehicular corridors and will incorporate a new city transit hub directly connected to the existing monorail and LRT at the Hang Tuah stations as well as linking to the upcoming Merdeka MRT station. It is strategically close to the SMART tunnel (Jalan Sultan Ismail exit) and has immediate access to four major highways – the Middle Ring Road 2 (MRR2), Maju Expressway (MEX), Federal Highway and KL-Seremban Highway. This interconnectivity links BBCC to all parts of Kuala Lumpur and beyond.
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Central Transit Hub
For more information about
The Stride Strata Office & Lucentia Residences
+603 2145 2255 www.bbcckl.com
Bukit Bintang City Centre Sales Gallery No 2, Jalan Hang Tuah, 55100 Kuala Lumpur. (GPS : 3.141656, 101.707755) Business Hours: Monday to Friday, 9am – 6pm Weekends and Pubic Holidays, 10am – 6pm Development Manager:
Eco World Development Management (BBCC) Sdn. Bhd. (Formerly known as Eco World Development Management Sdn. Bhd.)
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FEATURED EVENT
S P Setia previewed its luxury residential tower, ViiA Residences Conceptualized as a vibrant development, this 25-acre integrated green luxury development will be connected to The Gardens and Mid Valley City via a pedestrian link bridge and surrounded by grade A office buildings, a 252-room business class hotel and a 300,000 sq ft. lifestyle retail mall. By Property Hunter
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ViiA Residences will launch 326 units of
KL Eco City is anchored by prime commercial
serviced residences with a gross development
offices, high-end retail outlets, top-notch
value of RM450mil, comprising four types of
serviced residences, luxury residential tower
layout from one-bedroom to three-bedroom
and a business class hotel. It is also planned
units. Construction for ViiA Residences will
as a transport-oriented development where it
commence in the fourth quarter of this year,
is served by the existing Abdullah Hukum LRT
with completion targeted for 2020.
Station and the new KTM Commuter Station in an integrated rail hub.
The built-up ranges from 636 sq ft to 1,252 sq ft. Prices for these luxury suites start from
S P Setia has also invested in the construction
RM980,000 or RM1,600 per sq ft.
of dedicated ramps and bridges which cost approximately RM200 million.
Residents of this luxury residential tower will be able to indulge in a host of activities at
“KL Eco City has progressed over the years
home such as rock climbing, infinity sky pool,
with the launched components doing
pool lounge, steam bath and sauna, gourmet
extremely well. We have sold out phases such
lounge, Zen deck, steps studio, luxury lounge,
as the recently handed over strata offices as
BBQ area and AV Room.
well as high take-ups for our boutique offices. The planned 300,000 sqft retail component
“This is a good investment opportunity as we
is already underway and we are targeting
foresee the demand is there especially from
for operations to commence next year”, Ling
high income professionals who appreciate
added.
the premium of a prime asset in a very strategic location. These are also people who
KL Eco City is also developed to meet
appreciate the vibrant lifestyle that keeps
the stringent criteria of a minimum Gold
them on the move easily. They also seek high
certification from various green building
returns from rental and capital appreciation
certifiers. ViiA Residences is GBI and
in the future which on that note, S P Setia
Greenmark Gold certified.
is offering the Setia 10:90 Scheme for this project where investors need only pay 10% of
The Strata Office tower that we had recently
purchase price with balance 90% to be paid
handed over is Leadership in Energy and
upon handing over of the property.
Environmental Design (LEED) Core and Shell Gold certified while Residential Tower
“This provides an opportunity for one to
1 or Vogue Suites 1 which is earmarked for
enjoy the benefits of owning a very prime
delivery in Q1 of 2017 is also GBI and Green
property investment that otherwise requires
Mark Gold certified.
much larger upfront investments,” says Tony Ling, Divisional General Manager of S P Setia Berhad.
From Left : Tony Ling, Datuk Wong, Datuk CJ Khor and Adelene Wong www.PropertyHunter.com.my
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FEATURED EVENT
Artist Impression of the 25-acre KL Eco City integrated development by S P Setia, which ViiA Residences is a part of
Artist Impression of the Environment Deck (e-deck) of the residential tower
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ViiA RESIDENCES AT A GLANCE Project By KL ECO CITY SDN BHD (Joint venture with Kuala Lumpur City Hall (DBKL) Quick Facts •
Total Land Area : 25 acres (KL Eco City)
•
Location : Jalan Bangsar
•
Development Type : Luxury Residences
•
Land Tenure : Leasehold
•
GDV : RM7bil (KL Eco City)
•
GDV: RM450 million (ViiA Residences)
Tagline / Concept Luxury in the heart of vibrancy Features •
Luxury residences within a 25-acre mixed-use development with an integrated rail-hub
•
Connected to The Gardens and Mid Valley City via a pedestrian link bridge
•
Surrounded by grade A office buildings with over 3million sq.ft. of prime office space, a 252-room four-star business class hotel and a 300,000 sq.ft. retail mall
•
•
Two-tier internal road system design that provides multiple entries and exist point for efficient traffic circulation ViiA Residences is adjoining future hotel which enable residents to enjoy hospitality experience
Built-Up Total unit : 326 units (40 storeys) Type A (1-bedroom) Sizes ranging from 636-689sq.ft. Type B (1+1 bedroom) Sizes ranging from 777-810sq.ft.
Awards for KL Eco City Green Building Index •
Gold Award 2012- KL Eco City Sales Gallery, Kuala Lumpur
BCA Green Mark •
Type C (2-bedroom) Sizes ranging from 944-957sq.ft.
Gold Award 2014 – Provisional Certification for KL Eco City – Residential Tower (Vogue Suites One), Kuala Lumpur
Type D (3-bedroom) Sizes ranging from 1245-1252sq.ft.
South East Asia Property Awards •
Price Range From RM1 million to RM2 million or average RM1,600 psf
Best Green Development Award 2015 – KL Eco City, Kuala Lumpur
•
Best Luxury Condo Development (Central Malaysia) 2015 - Vogue Suites One, KL Eco City, Kuala Lumpur
•
Best Residential Architectural Design 2015 - Vogue Suites One, KL Eco City, Kuala Lumpur
Nearby amenities •
Shopping Malls Mid Valley Mega Mall, The Gardens, Bangsar Shopping Centre, Bangsar Village
•
Commercial Town Centers Mid Valley City, KL Sentral
•
Educational Institution Universiti Teknologi Malaysia (UTM), Brickfields Asia College (BAC), Sekolah Menengah (P) Kuen Cheng, SMK Confucian
•
Medical Centre Tung Shin Hospital, Pantai Hospital Kuala Lumpur
Facilities Podium Deck (Active) •
Children playground
•
Kid’s Area
Level 3 (Art) •
AV Room
•
Luxury lounge
Level 22 (Adventure) •
Rock Climbing
Level 40 (Arena) •
Infinity Sky Pool
•
Children Pool
•
Pool Lounge
•
Steam Bath & Sauna
•
Gourmet Lounge
•
BBQ area
•
Steps Studio
•
Zen Deck
•
Gymnasium
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FEATURED EVENT
S P SETIA LAUNCHES EXCLUSIVE VILLAS IN THE SKY S P Setia Berhad, Malaysia’s leading property developer launches its much anticipated Setia Sky Seputeh exclusive condominium development which will be built across 4.8 acres of prime land in Taman Seputeh, which is within 500 metres to the popular Mid Valley Megamall. By Property Hunter
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S
trategically located amongst the
To accommodate residents’ lifestyle, each unit will
affluent residential area of Seputeh,
be allotted 3-4 parking bays to ensure that every
Bangsar, Pantai and Mid Valley
family member will not have to go through the
City, this exclusive high-rise luxury
hassle of searching for additional parking bays
condominium comprise only 290
when they came home.
units of “sky villas” spread across two towers with a gross development value (GDV) of RM950
Prices range from RM2.99 million to RM3.6 million
million and is scheduled to complete in the fourth
or approximately RM1,300 psf. Setia’s 10:90
quarter of 2020.
promotional scheme where purchasers will only need to pay 10% down payment and the balance
The S P Setia team held a private viewing of
90% only upon vacant possession is applicable
the project at Magellan Sutera Harbour, Kota
for this project. The next good news is, Setia will
Kinabalu on 3rd & 4th September. The team took
allocate a limited number of units for early birds
the opportunity to introduce their latest project,
who will enjoy a 2% discount which will be offset
Tower A of Setia Sky Seputeh. The development
from the first 10% of down payment. On top of
comprises 145 units of condominiums with a
that, if their loan gets approved within 60 days of
GDV of RM470 million. Setia Sky Seputeh is an
letter of offer, we will be rewarding the buyer with
ideal development as the spacious built-up is akin
an additional 2% rebate upon vacant possession.
to living in a villa-in-the-sky but with condominium
This is a golden opportunity to own an amazing
facilities as well as better security features.
property at this location and we hope the property purchasers will take up this special offer.
Residents will enjoy utmost privacy as each floor at Setia Sky Seputeh houses only four to six units of condominium and each unit is serviced exclusively with its own private lift lobby. Purchasers will also be spoilt with choices, with a selection of six generously proportioned layout ranging from 2,300 square feet to 3,000 square feet, providing ample luxurious living spaces for residents.
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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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SW
International
Sarawak BK
WM
West Malaysia
Banking & Investment
Boost for Kinarut From Pan-Borneo Highway Developers and investors
“Kinarut has what it takes to
are turning their attention to
be a focal point for investors
Kinarut, the transit township
on property, tourism and
in Papar, as the RM13 billion
other commercial ventures,”
Pan-Borneo Highway takes
she said, adding that it was
shape, as reported in New
also an existing education
Strait Times.
centre with several training
SB
institutes and a Mara Junior Big corporations are
Science College in its vicinity.
forecasting strong growth in the area, located about 20km
“The high prices and
south of the state capital, in
even availability of land in
anticipation of the ambitious
neighbouring districts, such
highway project.
as Kota Kinabalu, Putatan and Penampang would certainly
The first phase of
allow for future southward
construction will run through
expansions to Kinarut,” said
Kinarut.
Rosnah, who is also a Papar member of parliament.
Deputy Works Minister Datuk Rosnah Abdul Rashid Shirlin
She said that, as a tourism
said the flood-free area was
hub and with the Kota
strategically located south
Kinabalu International Airport
of here with good road and
about 10km away, the area
rail connections, as well as
was popular for its Lok Kawi
infrastructure that supports
Wildlife Park, Kinarut Mansion
the growing residential and
Ruins and Dinawan island.
commercial needs.
The Jalan Donggongon-Papar stretch is being upgraded
“All these point to a huge
Residence, Taman Sutera
potential and with the Pan-
Jaya, Taman Sri Juta and Rose
Borneo Highway under
Garden.
construction, it can become a to complement the existing The highway project has been
industrial areas in Sabindo
described as a game-changer
and Lok Kawi, where major
for Sabah and Sarawak.
corporations have started operations, such as Hwa Tai,
Among the major development projects on the cards in Kinarut are The
Hing Wah Sauce and Desa Poultry.
Zil@KK South, Sri Khazanah
Pan Borneo Highway Intersection Project Draws Complaints Social activist Rustam Sapar
and entrepreneurs in the
down due to the
claimed that the ongoing
area were also affected
unsuitability of
construction of a traffic
by the construction of the
the construction
intersection under Pan
intersection, he added.
of the
Borneo Highway project in
These developments are set
reality,” Rosnah added.
SB
intersection.
Balung had affected the daily
Rustam said they had met
life and business of about
with a community leader
He said the
30,000 residents there, as
who informed them that the
construction of
reported in Borneo Post.
authorities were still waiting
the intersection
for funding from the Works
had caused
Rustam, 44, said the
Ministry to build another
difficulty to traders
residents had to drive extra
junction as a solution to the
going to their
four to eight kilometres to
problem.
business premises.
“We hope the ministry could
He believed that more
speed up funding for the
business operators would
Rustan said the Pan Borneo
project as we do not want to
suffer from loss of business if
“An initial study should be
Highway project in Balung
bear this burden,” he added.
the problem was not solved.
conducted by the relevant
The construction of the intersection had caused difficulty to traders going to their business premises and business operators would suffer from loss of business if the problem was not solved
their respective destinations due to work on the project.
residents but also to the school bus operators who were forced to increase their fare to RM10.
party to take into account
was supposed to give comfort to the people but
Meanwhile, a 37-year-old
Syed Ali Syed Ahmad, 56,
the convenience of local
what the residents were
businessman, Sabran Abd
who is a resident of Taman
residents before constructing
facing now was the opposite.
Hamid also claimed that
Sri Balung, claimed that
the intersection,” said
Besides, schools, the
many business operators
the intersection would not
Syaripuddin Mohd Jappar, 37
institute of higher learning
were believed to have shut
only cause trouble to the www.PropertyHunter.com.my
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HOT TOPIC
Propenomy of Iskandar Malaysia
Is Iskandar Really in
Trouble? By Dr. Daniele Gambero
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.
Economic Growth Triggers Recently IRDA has released an H1 2016 update with a very clear picture of the current situation and future plans as follows: 1. The first half of 2016 saw Iskandar Malaysia securing RM17.70 billion in new investments, bringing the total cumulative committed investment secured to RM207.99 billion from 2006 until 30 June 2016. From this total committed investment, domestic investments make-up 60% (RM123.93 billion) while 40% (RM84.05 billion) came from foreign investors. Top five countries with the highest investments into Iskandar Malaysia for the past decade are: China, Singapore, America, Japan and Spain.
Investment Updates 2006 to June 2016 Cumulative Committed Investment
207.99
Manufacturing
USD 52.13 Bil
Others
9.83
190.28 9.00 158.13
Residential
40.06
8.31
Government 131.36
Committed Investment
38.58
8.31
102.84
106.31
6.28
55.56 41.76
11.30
5.8 7.1 1.0 11.9
5.8 5.5
2006
2007 128%
6.83 8.17 5.06
16.52
21.7
23.65
2008 62%
2009 53%
2011 22%
28.79
2012 25%
2013 24%
2014 20%
54.08
50.09
46.82
35.07
31.22
26.92
2010 25%
43.26
19.98
14.45
9.11
61.14
27.30
21.83
6.28
87.14
35.14
6.28
69.48
32.97
7.31
84.78
25.80
2015 20%
% yearly increment- ((current yr-prev yr)/prev yr)*100 *Based on USD exchange rate as of 30th June 2016 *Others: Utilities, Emerging Tech, Tourism, Education, Healthcare, Creative, Financial, Logistics, Retail, Industrial
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41.06
54.26
2016 (June) 9%
2. Of the total cumulative committed investments, RM106.43 billion or 51% represents investments that have been realized as projects on the ground. 3. “The Iskandar Malaysia Second Comprehensive Development Plan (CDPii) will ensure that the growth corridor’s development is carried out strategically to transform it into a smart city. Iskandar Malaysia’s definition of a Smart City is how we focus, think and implement to achieve Iskandar Malaysia’s vision in 2025. It is a city that performs well and focused on 6 areas: the economy, governance, environment, mobility, people and living quality” said IRDA’s CEO Datuk Ismail Ibrahim 4. From Iskandar Malaysia’s inception in 2006 until 2015, a total 682,169 jobs have been created in Iskandar Malaysia and most of these came from the various sectors in Iskandar Malaysia including manufacturing, hospitality, food & beverage, and education. To further understand how strong Iskandar Malaysia’s “economic development” is, it is surely worth to see in which sectors those almost RM208 billion have been invested. Datuk Ismail Ibrahim gave a very precise list of it and from there everyone should clearly see why I keep on saying that Iskandar Malaysia has all the settings to be looked at as the Most Sustainable Location in the SEA region. Below is the precise breakdown of the investments: Promoted sectors in Iskandar Malaysia
Supporting sectors
Manufacturing
: RM 53.68 billion (26.0%)
Residential properties
: RM 40.87 billion (20%)
Logistics
: RM 6.15 billion (3.0%)
Utilities
: RM 12.96 billion (6 %)
Healthcare
: RM 3.17 billion (2.0%)
Retail properties
: RM 57.19 billion (27.0%)
Tourism
: RM 3.37 billion (2.0%)
Industrial properties
: RM 13.51 billion (6.0%)
Education
: RM 2.07 billion (1.0%)
Emerging Technologies
: RM 2.85 billion (1.0%)
Creative
: RM 0.56 billion
Government (Infrastructure)
: RM 9.83 billion (5.0%)
Financial Services
: RM 1.79 billion
Investment Updates 2006 to June 2016 Cumulative Sector Breakdown Manufacturing
53.68
Residential Props
40.87
Mixed Dev
57.19
Utilities
12.96
Government
9.83
Industrial
13.51
Logistics
6.15
Healthcare
3.17
Tourism
3.37
Education
2.07
Finance
1.79
Emerging Tech
2.85
Creative
0.56
6% 2% Utilities
Tourism
1% 5% 6%
Emerging Tech
Government
26%
Manufacturing
Industrial
3%
Logistic
2%
Healthcare
1%
20%
Finance
Residential Property
1%
Education
27%
Retail/Mix.Dev
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HOT TOPIC
Cumulative Investment Updates
Local VS Foreign
Performance Year On Year Committed Investment
Foreign Investment 40%
Realised Investment
200
Local Investment 60%
140
180
123.93 120
160 140
113.68 101.14
100
120
207.99 190.29
100 80
84.78
40
106.31
60
131.64
20
2010
37.75
43.70
56.32
77.07
98.47
106.43
2011
2012
2013
2014
2015
2016 (June)
0
76.60
50.64
56.99 47.01
40.70
40
20 0
84.05
67.78
158.13
60
84.62 80
30.08 18.92
25.48
28.78
34.14
38.53
18.92
2008
2010
2012
2014
2016 (June)
Some might think that residential, retail and industrial properties are making up more than 50% of the total investment but, these numbers should be looked at through the lens on economic growth or: 1. 682,169 new jobs already created should be read as at least 750,000 to 800,000 new house holds. 2. When new population comes into an economic development corridor, there is need of new housing and new retail and commercial space. It is a normal and very logical consequence or algorithm: economic development planning brings in investment which brings in industrial and commercial property development which brings in job creation/population increase which brings in need for residential and retail which generates new business opportunities and so on and on and on.
Demographic and Actual Purchasing Power of Iskandar Malaysia Population Iskandar Malaysia is no exception from Malaysia in terms of demographics. It actually shows an even bigger young group as actual surveys in the region reported a 68.8% of Johor state population being below the age of 39 as shown in this table.
Age Distribution in Iskandar Malaysia 0 - 14 Years
28.80%
15 - 24 Years
16.90%
25 - 39 Years
23.10%
40 - 54 Years
18.10%
55 - 64 Years
7.60%
65 Years and above
5.50%
68.80%
31.20%
Interesting now to see the results of income distribution researches done by REI Group. The table below gives a first big picture of how the work force in Iskandar Malaysia is divided and what the minimum and maximum levels of income are allowing a first understanding of where the region stands. By doing a deeper analysis on per-capita and per-household sharing of wealth, we might be able to understand where Iskandar Malaysia stands in terms of purchasing power referred to residential properties as shown in the table :
28
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Johor Home Values Distribution Population 2014 State GDP Per-capita GDP
3,637,360 89,502,282,720 25,302
HH Income based on 1 full as per-capita and 1 as 60% of main contributor
Average DSR used by banks 50% of HH income
Available income to purchase a home after deduction of commitment as 50% of DSR
Affordable home vale based on 90% financing, 30 years tenure and 4.6% BR
Ideal distribution of supply based on home value affordability
Quantity of home by class of value based on incoming supply of 170,691 homes NAPIC 2014
Income class
Population share per class of income
RM
RM
RM
RM
RM
RM
UP TO 1,999
19.60%
2,320
1,160
580
120,000
19.60%
33,455
2,000 - 3,999
36.30%
4,800
2,400
1,200
260,000
36.30%
61,961
4,000 - 5,999
21.00%
8,000
4,000
2,000
420,000
21.00%
35,845
6,000 - 7,999
10.90%
11,200
5,600
2,800
600,000
10.90%
18,605
8,000 AND ABOVE
12.20%
> 12,000
>600,000
12.20%
20,824
ISKANDAR MALAYSIA MIN - MAX INCOME BY PROFESSIONS SECTOR
MIN RM/MONTH
Banking & Financial Services
MAX RM/MONTH
ESTIMATE EMPLOYMENT
Existing Stock
Now
Completion
1 Year
Incoming Supply
2 to 3 Years
Starts
3 to 4 Years
Planned Supply
4 to 5 Years
New Planned Supply
4 to 5 Years
1,600
9,500
15%
Manufacturing
900
7,700
29%
Construction
900
8,500
25%
Plantation
900
8,500
14%
Oil & Gas
1,000
8,100
7%
Tourism
1,300
8,000
10%
Total Average
1,100
8,383
100%
Last but not least, we need to understand where Johor state, the Iskandar Malaysia region is located, amd where it stands in terms of supply and demand. For this part, the main source of information is the Property Market Report 2015 released by Napic and JPPH this year in April. The report lists all the residential properties on a state basis and dividing them in six main categories. Using a time laps of each category to be released in the market or ready for occupancy, we can do a good forecast of where we will be by the year 2020 in terms of supply and compare it with some population data as per table below. To determine the population growth, I have used the natural growth rate of Johor (1.4% per year) without taking into consideration the strong migration that Johor state, especially Iskandar Malaysia, are experiencing and will be continuing. Neither has considered the fact that Iskandar Malaysia will definitely absorb, in terms of residential offerings, a good share of the forecasted population growth that the Singapore government has planned: 2,000,000 new habitants or residents by the year 2030. Neither did I factor in the yearly migration towards Iskandar Malaysia of a good share of the 810,000 Malaysians, that are now residing in rural areas. Latest statistics have shown a consistent trend of about 200,000 migrants, or 45,000 house holds, to Johor every year.
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29
HOT TOPIC
Additional Long-term Booster for Iskandar Malaysia Economic Growth To conclude, we also need to consider the long term beneficial effects that recently implemented international agreements such as ASEAN, Trans Pacific Partnership Agreement and the One Road One Belt development plan will bring to the SEA region and particularly to Iskandar Malaysia. Iskandar Malaysia has been, is and will remain the most strategic and sustainable location for future property development ONLY through economic growth planning in the whole of South East Asian region; it is only a matter of being patient and looking at property investment as a medium, long-term plan.
DEMAND/SUPPLY ANALYSIS FOR RESIDENTIAL UNITS IN MALAYSIA TILL 2020 STATE
ESTIMATE POPULATION BY 2020
AVERAGE HOUSEHOLD SIZE
ESTIMATE NUMBER OF HH BY 2020
TOTAL SUPPLY OF RESIDENTIAL UNITS BY 2020
SHORT-FALL OF RESIDENTIAL UNITS BY 2020
Kuala Lumpur
1,948,261
2
974,130
655,277
318,853
Selangor
6,305,524
3
2,101,841
1,743,531
358,310
Johor
3,975,353
3
1,325,118
1,158,469
166,649
Penang
1,815,116
2
907,558
588,164
319,394
Malacca
846,466
3
282,155
224,696
57,459
Negeri Sembilan
1,252,469
4
313,117
405,291
(92,174)
Pahang
1,707,315
4
426,829
360,338
66,491
Perak
2,565,145
4
641,286
555,096
86,190
Perlis
251,753
4
62,938
31,629
31,309
Kelantan
1,869,788
4
467,447
94,863
372,582
Terengganu
1,203,098
4
300,775
148,822
151,953
Kedah
2,225,994
4
556,498
365,633
190,865
Sabah
3,847,964
5
769,593
240,251
529,342
Sarawak
2,793,770
5
558,754
267,192
291,562
9,688,040
6,839,252
2,848,788
MALAYSIA
32,608,016
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
30
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SHAREDA: LESS politicking, more Support
SB
Sabah Housing and Real
sensational issues like rallies
Estate Developers Association
for the removal of the Prime
(SHAREDA) has called
Minister political scandals.
on politicians to reduce politicking on economic
“These issues are fueled
issues and focus more on
by many political parties in
its development strategies
view of the forthcoming GE
in Malaysia, as reported in
(General Election) 2018, which
Borneo Post.
dampen foreign and national investment confidence to a
Regardless of their coalition
larger extent.
origin, politicians need to give more thought to the
“Therefore, l appeal to all
repercussions of the national
politicians to soften the
economic policies.
politicking and put more effort and thought on economic
SHAREDA Deputy President,
development and strategies
Mr Chew Sang Hai stressed
in our state and federal
that the issues might be
governments,” said Chew.
good in the game of politics and provide more bullets for
He also appealed for the
their next general election
focus to be channelled on
campaign, but it would be at
accelerating Sabah’s building
the expense of the country’s
material manufacturing
investment confidence as
industry to help bring down
well as the wellbeing of its
the state’s development costs.
endangered industry players and their workers. Chew said industry players are struggling in the current economic weather, where developers need to ensure they must have deep pockets to survive. “The crucial question here is how the property development industry can help property investors to move forward?
“It was noted that 90% of our construction materials are imported from West Malaysia and nearby countries, such as China. This has translated to one of the important factors behind the high property development costs in Sabah,” said Chew.
“To achieve this, it should
“Therefore, any expansion of
not only rest solely on the
the building material industry
developers, the government’s
would substantially reduce
utmost understanding and
the building material prices
support and stronger political
and boost the investment
view are the paramount
sentiment, and the spill-over
factors,” he said.
effect of creating more job opportunities.
“It was noted that our economic issues have been
“For instance, the
politicised and many of
implementation of the clinker
our politicians harped on
plant is an important issue to
be implemented immediately
Sdn Bhd for its Emporis
by our state government,” he
condominium development,
added during the Shareda
while second and third place
PropEX 2016 closing
went to Aeropod Sdn Bhd
ceremony at Likas Sabah
for its KL Eco City project
Trade Center here yesterday.
and Kinsabina Sdn Bhd for its Triconic Tower Bundusan
He said the four-day property
condominium development,
exhibition showcased up to
respectively.
RM10.7 billion in property value, with 36 developers and
Meanwhile, Kinsabina Sdn
real estate agents.
Bhd took the Best Creative & Unique Brochure Award 2016
Chew said although only an
with its Taman Casablanca
approximate 4,300 visitors
Residence, followed by Hap
were recorded by the
Seng Properties Development
organising committee, PropEX
Sdn Bhd for its Kingfisher
2016 has helped pull in total
Inanam project and GKS
sales value of RM27.5 million
Development Sdn Bhd in third
in its last three days.
place with its Canggih Heights
This proves all of the
condominium development.
organizer’s heightened
Shareda president Datuk
efforts had attracted genuine
Francis Goh Fah Shun,
buyers with real money, he
Council Member cum Event
elaborated.
Organising Chairman Mr
Meanwhile, the Shareda PropEX 2016 Awards were presented to the winners at the ceremony, with Aeropod Sdn Bhd taking the Best Decorative Booth Award 2016 winner, followed by Hap Seng Properties Development Sdn
Raymond Xavier Chan, Council Member cum Deputy Organising Chairwoman Ms Jen Kah Gen Fon, as well as PropEX 16 Magazine chief editor Mr Wesley Chai were among those at the closing ceremony.
Bhd and Grand Merdeka Development Sdn Bhd. The Best Creative Model House Award 2016 went to Marvelgold Development www.PropertyHunter.com.my
31
NEWS
Celebrating The MIEA National Real Estate Awards
WM
The most significant award,
Valuers, Appraisers and Estate
widen their network. More
Estate Awards Organizing
the MIEA National Real Estate
Agents (BOVAEA) Datuk Faizan
importantly, it will strengthen
Committee would like to
Awards (NREA) is coming back
bin Abdul Rahman.
public confidence, ease the
invite all media practitioners
this year to recognize the
recruitment for RENs and
to witness this remarkable
pinnacle of excellence and
This is the 8th year since
help them gain more respect
night on:
celebrate the outstanding
the advent of the first MIEA
among peers.
achievements in the field of
National Real Estate Awards
real estate throughout 2015.
in 2009. From only 10
One of the more notable
(Saturday)
Date: 1 October 2016
categories in the inaugural
awards is the Million Dollar
Time: 6.30pm onwards
Presented annually to Real
year, the Awards has now
Roof Top award, presented
Venue: Sime Darby
Estate Agents (REA), Real
increased to 19 categories in
to Estate Agents who have
Convention Centre
Estate Firms and Real Estate
total to recognize those who
in their personal capacity
Dress Code: Evening Wear
Negotiators (REN), the awards
excel in different areas. 31
collected a minimum of RM
is the most anticipated event
submissions were received
1 million in professional fees
in the industry. The winners
this year and there will
in 2015. Three recipients will
are judged by independent
be more than 20 winners
be sharing the award this
judges based on real estate
to be recognized, each
year which is a recognition
standards.
representing the outstanding
for the top talents in the
performance in different The result of the Awards will
industry. Meanwhile, The
category subsequently setting
be announced at the Gala
Lifetime Achievement Award
the yardstick in the industry.
will also be presented to the
Dinner, which will be held at
personality that contributed
the Sime Darby Convention
Apart from the honours
Centre on 1st October 2016.
significantly to the growth
bestowed that night, the
The event will be graced by
and development of the Real
press coverage and national
Guest of Honour YB. Datuk
Estate Agency industry over
recognition they will gain
Johari Abdul Ghani, Finance
the years.
through the Awards will
Minister II, in the presence of
definitely boost their
To celebrate this significant
the President of the Board of
business opportunities and
occasion, the National Real
Southeast Asia’s Tallest Skyscraper May Break Ground This Year Genocide, tortures, war
better laws to mitigate the
the property
— Cambodia has seen
effects of natural disasters on
market has seen
truly appalling things, but
high-rise constructions.
some problems
a significant earthquake
IN
in the sales
isn’t on the list. As its
Project insiders have told
department, it
buildings continue to shoot
The Phnom Penh Post that
does not pose
heavenwards on the back
construction of the Thai Boon
a problem in
of a prospering economy,
Roong Twin Trade Center, a
beginning the
it has dawned on some
500-metre high, 133-storey
construction,” he
Cambodians: what if?
skyscraper, will begin by
says.
the end of the year. The This has never been more
project’s groundbreaking will
The project’s completion,
apparent than last week when
reportedly take place within a
set for 2019, may be out of
a 6.8-magnitude earthquake
few months.
step with reality, however.
struck neighbour Myanmar,
“Although the targeted
The Phnom Penh Post
Architect Tous Saphoeun,
completion date is within
reports, as reported in Asia
who is involved in the project
quite a short timeframe,
Property Report.
sketches, confirmed this week
realistically, a development
that the plot for the building According to the Post, the
of this scale is going to
is suitable for projects that
Ministry of Land Management,
take significantly longer to
go up to 200 storeys and “all
Urban Planning, and
complete,” says Ross Wheble,
three steps of the testing
Construction is trying to draft
Knight Frank Cambodia
phase” are done. “Although
32
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Award sponsors included theedgeproperty. com, PropertyGuru, The Star and Mudah. my, with REM Magazine, Property Hunter, Homefinder and Property Insight as the magazine partners respectively. Nextdor Property Communications is the public relations partner.
Phnom Penh
manager, adding that infrastructure at present would not be able to support a project of this scale. The Post notes that the project has links to Chinese investor Ng Lap Seng, who will stand trial in the US in January for attempting to bribe John Ashe, former president of the UN General Assembly.
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33
FEATURED EVENT
ADMIST HILLS, SEA AND SKY, LIES ALILA2 By Property Hunter
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the use of, energy, water and materials,
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investors.
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Alila2 is more than just contemporary
What truly sets Alila2 apart from others
one prestigious address.
design, unrivalled facilities, breathtaking
is its enviable location. It rests high
rare blend of nature, modern designs,
landscape and captivating views. It is
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Hunza Properties Bhd continues to
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35
NEWS
Ground Breaking Ceremony of M101 SkyWheel
WM
Yang Berhormat Dato’ Seri Tengku Adnan Tengku Mansor, Minister of Federal Territories together with Yang Berbahagia, Hj. Mohd Najib Nordin B. Hj. Mohd., Executive Director (Planning) Kuala Lumpur City Hall accompanied by M101 Entity Sdn. Bhd. (M101) founder Yang Berbahagia Dato’ Seth Yap Ting Hau officiated the groundbreaking ceremony of M101 SkyWheel, a two tower state-of-the-art development with the highest Ferris-wheel in South East Asia designed by Studio F. A. Porsche.
Official Ground Breaking Ceremony of M101 SkyWheel (From Left to Right) Mr Cui Hai Zhen, General Manager, Zhongji Construction Sdn Bhd; Yang Berbahagia Datuk Haji Mahadi Bin Che Ngah, Chief Executive Officer, Perbadanan Pembangunan Kampong Bharu; Yang Berbahagia Datuk Affendi Zahar, Chairman, Perbadanan Pembangunan Kampong Bharu; Yang Berbahagia, Hj. Mohd Najib Nordin B. Hj. Mohd., Executive Director (Planning) Kuala Lumpur City Hall; Yang Berhormat Dato’ Seri Tengku Adnan Tengku Mansor, Minister of Federal Territories; M101 Entity Sdn. Bhd. (M101) founder Yang Berbahagia Dato’ Seth Yap Ting Hau; Mr Tobias Huettl, Head of Studio F.A. Porsche; Ms Robyn Peot, Vice President of Brand Marketing, Planet Hollywood Hotels Worldwide and Yang Berbahagia Datin Lea Chan Heng Si, M101 Group Director
The groundbreaking
Yang Berbahagia Dato’ Seth
Expressing his sincere
The attendance of Yang
ceremony marks the
Yap Ting Hau and further
gratitude and appreciation
Berhormat Dato’ Seri
beginning of a transformation
commented, “There is more
towards Guests of Honour,
Tengku Adnan Tengku
for the Kampung Bharu
to Kampung Bharu that meets
Dato Seth’ Yap said this
Mansor, Minister of Federal
neighbourhood that will lead
the eye. The M101 SkyWheel
development sets another
Territories together with
to a major economic boost.
project will be a game changer
hallmark and joyous occasion
Yang Berbahagia, Hj. Mohd
M101 SkyWheel will not only
in recent development plans
for the company. He hopes
Najib Nordin B. Hj. Mohd.,
help revitalise the surrounding
of Kampung Bharu. It will be
it will bring foreign direct
Executive Director (Planning)
community but will provide
the new image of Kampung
investment that would benefit
Kuala Lumpur City Hall at the
great amenities as well as give
Bharu.”
the economy and retail
ceremony further illustrations
the oldest residential area in
a vote of confidence to the
Kuala Lumpur a major facelift.
Aside to the entity that is the
industries.
M101 SkyWheel, Kampung
“With this, we also hope
“With its own magnitude
Bharu will be fitted with new
to encourage both local
The project which will include
and unique design, M101
highways, an MRT station
and foreign investors to
construction of a Ferris-wheel
SkyWheel has brought back
(Kampung Bharu North
take interest in Malaysia’s
positioned on the 52nd floor
excitement to the local real
Station) making it Kuala
property.”
and at its highest vantage
estate scene. The iconic
Lumpur’s second new City
point will provide a view
building will certainly raise
Centre.
from 220m above ground
the standards of commercial
success of this iconic project.
is a remarkable landmark skyscraper that will further
Elaborating on M101 SkyWheel, Dato’ Seth Yap said,
and retail development within
During his welcoming
“M101 SkyWheel is a true
Klang Valley. M101 SkyWheel
speech, Dato’ Seth Yap Ting
icon making it an engineering
place Malaysia on the map as
plays a major role in boosting
Hau commented that the
masterpiece, with an ‘all-in-
a top spot region for property
our nation’s economic growth
company’s mission is to build
one’ integrated commercial
and development after the
in the property market
ten buildings in the heart
and retail development which
Petronas Twin Towers. M101
sector and not to mention,
of ten different strategic
will herald a new era to the
SkyWheel will also feature
the tourism sector as well,”
locations around the Klang
very historic Kampung Bharu.
the world’s highest shopping
said Yang Berhormat Dato’
Valley region with a total
We want to take inspiration
experience with a SkyMall that
Seri Tengku Adnan Tengku
gross development value
from the past, to demonstrate
extends from 48th to 52nd
Mansor, Minister of Federal
(GDV) of RM 4 billion, to
the foundations of identity,
Territories.
promote property tourism in
and gain confidence towards
the country. “This is part and
taking the next step forward.”
level with over 200,000 sqft of retail space, will offer locals and tourists diverse product
Yang Berhormat Dato’ Seri
parcel of our goal to support
offerings and world-class
Tengku Adnan Tengku Mansor
the government’s tourism goal
M101 SkyWheel will also
shopping experiences.
congratulated M101 Entity
to increase the local economy
encompass the famous
Sdn. Bhd. (M101) founder
and tourist arrivals.”
Planet Hollywood Hotel,
36
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37
NEWS
impressive retail space and
launched two projects, namely
Culinary Heaven with lifestyle
M101 Dang Wangi and M101
amenities as well as an award-
Bukit Bintang, which will be
winning architecture by Veritas
completed by June 2017.
Architects Design Group.
M101 SkyWheel is the flagship
More than 1,000 potential
project under the M101 brand,
buyers have registered and
making it the third and largest
showed interest to the M101
project grossing RM1.4Billion
SkyWheel since the project
in Gross Development Value.
was previewed early this year.
The company also has plans to expand into Langkawi
M101 Entity Sdn. Bhd. (M101),
as well as abroad such as
Meridian 101 degree named
Karimun, Bintan and Bandung,
after Malaysia’s coordinates in
Indonesia.
From left to right is Yang Berbahagia, Hj. Mohd Najib Nordin B. Hj. Mohd., Executive Director (Planning) Kuala Lumpur City Hall; Yang Berhormat Dato’ Seri Tengku Adnan Tengku Mansor, Minister of Federal Territories; M101 Entity Sdn. Bhd. (M101) founder Yang Berbahagia Dato’ Seth Yap Ting Hau
2012 is known as a boutique property developer and the M101 brand has already
SIE 2016 Draws 40,000 Visitors
SB
The four-day Sabah
The organizers have been
all the delegates, traders,
become the hub for the Far
International Exhibition 2016
optimistic since day one that
businessmen and visiting
East.
which opened its doors to the
the number of visitors coming
public to ensure convenience
public on Thursday (Sept 15)
to the Expo will overshoot its
and smooth flow of the on
Musa added that the state
afternoon and culminated
target of 30,000 people.
going trade activities at the
is blessed with abundance
venue.
of natural resources, rich
on Sunday (Sept 18) received overwhelming responses from
“We are happy with the
the various sectors, namely,
turnout of visitors coming to
“I personally agree with
location within a region of
the business community and
the expo with 145 booths from
the Chief Minister that the
strong vibrant economies.
the public in general including
20 countries displaying various
involvement of the private
foreigners, as reported in
products and services,” SIE
sector in growing our economy
“Sabah is increasingly
Borneo Post.
2016 organizing chairman cum
is evident in the commitment
becoming an attractive
Federation of Sabah Industries
shown by leaders and
destination for meetings,
The exhibition centre located
(FSI) President Datuk Mohd
members of the Federation
incentives, conventions and
at the Magellan Hotel Grand
Basri Abdul Gafar said.
of Sabah Industries and
exhibition (MICE) activities
biodiversity and is in a strategic
the Malaysian International
not just for the BIMP-EAGA
Resort registered more than
He said the exhibition booths
Chamber of Commerce and
region but for other emerging
40,000 visitors comprising
were open daily from 10am-
Industries (MICCI) Sabah
markets in the region,” the
Malaysians and other foreign
10pm and admission was free.
Branch,” he said.
Chief Minister said.
Since the inception of SIE 14
Meanwhile, in reading the
After the culmination of SIE
The 2016 Expo aimed at
years ago, Basri said over
speech of the Chief Minister
2016 on Sunday, September
showcasing products from
334,000 people have visited
Wednesday night, Tan said
18th, the next trade and
other nations as well as to
the event and hundreds
Sabah has what it takes to
business event will be held two
serve as a platform for local
of million ringgit worth of
attract investors, both local
years from now.
entrepreneurs to promote
business transactions have
and foreign in its vision to
new products and services
taken place.
Ballroom in Sutera Harbour
nationalities.
was officially declared open during a dinner cum opening ceremony at the Pacific Sutera Hotel on September 14 by Chief Minister Datuk Seri Musa Aman who was represented by Deputy Chief Minister cum Industrial Development Minister Datuk Raymond Tan.
38
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“We estimated between 30,000 to 50,000 people would visit this year’s event that carries the theme ‘Sabah-Hub for the Far East’,” Basri said, adding that the organizers had stationed enough personnel to look after the needs of
Yayasan Sabah was the Winner of the Best Booth Competition (Services)
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39
HOT TOPIC
Understanding Property Valuations Is it really that important?
Whether you’re someone who is a potential home buyer or a rookie property investor, your formidable journey into the property market will revolve largely around valuations. Whether the piece of real estate is a house, an apartment or condominium, a commercial building or a piece of land, it will inevitably require the help of a valuer to come up with the rightful price value. Find out about the complex science behind property valuations and understand why it’s important to hire a professionally licenced valuer for the task. By Property Hunter
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What is Property Valuation? Property Valuation is the process of assessing the fair market value of real estate based on sales evidences, at a price that a knowledgeable seller is willing to sell his/her property within an arm’s length of the price a buyer is willing to buy. It is generally conducted on request by an individual or a lending institution such as a bank that is looking to fund the purchase of a property. Whether the piece of real estate is a house, an apartment or condominium, a commercial building or a piece of land, it will inevitably require the help of a professionally licenced valuer to come up with the rightful price value. It’s usually produced as a report, which includes property information such as the rates, size of the land, physical details on the construction and condition of dwelling, details on any immediate issues that may need addressing – as well as information on comparative sales in the area.
Why is it Important? Whether you’re someone who is a potential home buyer or a rookie property investor, your formidable journey into the property market will revolve largely around valuations. Having an accurate estimation of a property’s value is vital to both seller and buyer, more so to the buyer so that he or she can make a justifiable counteroffer and determine whether or not the upfront cost is within their budget. Meaning, as a buyer, property valuation is an important step to protect yourself from having to pay unnecessary and unexpected costs. Often, the 90% (or lower) loan margin by a bank is based on the valuation of the property; not the purchase price. A lower property valuation means a lower loan amount, since it’s unlikely that a seller would sell below the market value; therefore, the buyer will have to come up with more money to cover the upfront costs. Say for instance, you’ve fallen in love with a house. After back and forths with the seller, you both agree on a price of RM500,000.
TIP:
Please insist for a
A 90% home loan
clause in the booking
means that you would
receipt issued by the
need to come up with a downpayment of RM50,000 – on top of other entry costs. Now here’s where
seller or agent to include ‘entitlement to a refund’ of the booking deposit in the event of
valuation comes in – a
an unsuccessful loan
housing loan report by
application.
a valuation firm that’s recognised by the bank www.PropertyHunter.com.my
41
HOT TOPIC
you’re dealing with is needed. If the valuation firm only priced the said property at RM450,000, you would only be eligible for a loan of 90% of RM450,000. This means that if you were to buy the said property, you would need to bear the price difference which is RM95,000. Not the RM50,000 you were expecting initially. Worse still, if the buyer has already paid the booking fee before getting the property valuated, the amount paid will be forfeited, if in the end the buyer decides not to buy.
Determining the Value and the Process Loan application
Part Art, Part Science Whether valuing to buy or sell, investors need to have a clear understanding of how the valuation is done and to know what attributes to look out for. In general, and depending on the property, these are some factors that a valuer will look into that would determine the valuation: 1. Location – accessibility, development potential 2. Size – land and building 3. Age 4. Condition 5. Number of bedrooms and bathrooms
Bank instruction to valuer
Valuer checks property surrounding based on JPPH data
6. Amenities & Facilities – if any 7. Floor Level & Type of Tenant Mix – for apartments and condominiums The neighbourhood and surrounding developments play very
Valuer inspects the property
important roles. The availability of neighbourhood supermarkets, like for instance Giant, largely determine a property’s value. The same applies for commercial areas with major retailers, banks as
Property valuation report goes to the bank
well as schools. Occupancy rate is also a common factor. According to James
Bank lends the loan amount based on the valuation report
Wong of VPC Alliance (KL) and VPS Realtors (KL), “Occupancy rate of surrounding properties especially for strata properties where the occupancy rate is low could affect the maintenance and upkeep of the project in the long run and pose a security threat.”
iproperty.com.my, Property Valuation: How much do you really know?
Another important thing to note is that a valuer will rely on the most recent transacted sales prices from JPPH (Valuation & Property
Therefore, favourable security features especially with nonlanded strata properties can add to a property value.
TIP:
Services) from transactions which were compiled over the most recent three to six months in order to make the necessary adjustments based on the condition
It’s important to note that in an especially surging market, the valuation price might be outdated by the time the valuation report is issued
of the property and value added from renovation (if any). Therefore, properties in the same area located next to each other will not necessarily share the
“Other positive qualities and factors to look out for are good management for strata properties, as well as quality improvements and renovations within the building for landed properties,” adds James Wong. And what about qualities and factors that decrease the value of a property? Factors such as facing T-junctions, near high tension wires, septic tanks, waste disposal areas, oxidation ponds, and are in close proximity to squatter areas. Areas with high noise and air pollution caused by heavy industrial areas, dump sites or highways can also reduce property value. However, this is slowly changing. Although past buyers and
same value.
investors used to be concerned with most of these factors, these
On The Star Property Report, Siva Shanker, the ex-president of
more limited. Cornelius Koh from C H Williams Talhar & Wong
MIEA (Malaysia Institute of Estate Agents) said, “The difference in
(KK) said, “Attributes such as houses fronting T-junctions, cul-de-
valuation is a common occurrence when prices rise quickly and
sacs and cemeteries still do remain factors today; but, they aren’t
steeply.”
that much significant anymore as population has increased so
days, choices for that perfect environment are getting more and
much that there is little land left for development. If you don’t want it, someone else will take it. Basically, we’re running out of choices.”
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Common Misconceptions Many people tend to associate cost to value, but the truth is that the cost of renovation works is not equivalent to the market value of the property. The market Value of the property is dependent on many factors, such as supply and demand, current property transactions, location and type of improvements. Cost is just one of the factors.
has been listed in three months. Transacted prices should be the benchmark to use because in theory, they are much
Another misconception is that property buyers and investors are
closer to the fair market value.
eligible to obtain bank loans of up to 90% of the purchase price for their first and second property. The reality is not everyone is eligible. There are two factors that the bank will take into
•
mentioned earlier. To further figure out the condition of
consideration. 1. The financial status of the borrower; 2. The
the property, try to find out who had previously lived in it if
value of the property.
possible.
What Should You Do as a Buyer? Remember, above anything else, valuing a property should be done by a professional valuer. But, what if you’re just curious to know roughly the price of a specific property so that you can anticipate the cost
comparable properties, start with a trusted
fee? It doesn’t harm you
be the best resource to
to conduct some self-due
find recent sales for you
diligence, just to figure out if
to make a comparison
couldn’t find anything that fits into all these criteria? Then you should find the closest one and make adjustments across all the attributes. •
Don’t be afraid to ask for justification – By doing your homework first, and knowing what you know, you can always go back and question a seller or agent as to why the property is worth the asking price.
Despite everything, if there are just too many variables and you find it hard to find a comparable property, it is recommended
for the property you
to engage with a professional valuer as they have tons of
want.
experience in making these adjustments based on the different
Some points from our friends at GoodPlace.my (you can download their “How to Value a Property” report on their website): •
Make adjustments – By now, you should have a similar property to make a good price comparison. But what if you
When looking for
property agent. They will
consideration.
•
TIP:
before paying the booking
a property is worth the initial
Look out for its physical attributes – Attributes which were
Compare apples to apples – Find a suitable property to make a meaningful comparison. “Suitable” in this context
attributes and other features that may be relevant that we have probably missed out. Make sure that you find a highly recommended and accomplished valuer as it is not cheap and any mistake could be costly. Good luck!
is a property that’s ideally in the same neighbourhood. If somehow this property doesn’t exist, then you will need to find one that is in the next neighbourhood. •
Next, find a property – In said neighbourhood. One that had just been sold in the last three months, not one that www.PropertyHunter.com.my
43
NEWS
GSH Corp Launches Eaton Residences, a Luxury Condominium GSH Corporation Limited
It is also linked by MRT to
(“GSH” or the “Group”), a
the Bandar Malaysia and
regional property developer
the proposed terminus
listed on the Main Board of
for the Kuala Lumpur-
the Singapore Exchange,
Singapore high-speed rail
today announced that its
(approximately 5 kilometres
wholly-owned subsidiary, City
from Eaton Residences), and
View Ventures Sdn Bhd, has
Kuala Lumpur’s integrated
launched Eaton Residences, a
financial hub - the Tun Razak
632-unit luxury condominium
Exchange (“TRX”) - about 2
in the heart of Kuala
kilometres away.
WM
Lumpur’s city centre. Eaton’s typical one-to-fourSome 200 units have
bedrooom apartments range
been released for its first
from 635 sq ft to 2,874 sq ft,
phase of the launch. As
while sizes of its penthouses
of 20 September 2016,
range from 2,271 sq ft to
approximately 150 units have
2,982 sq ft. Eaton’s well-
been booked through VIP
appointed apartments are
previews and private viewing.
attractively priced, starting
Strategically located along Embassy Row, and just minutes away from the uberchic shopping belt of Bukit Bintang in Kuala Lumpur’s triple-A precinct, the leasehold Eaton Residences offers unblocked panoramic
from RM1,137,445 for a onebedroom unit, RM1,450,950
GSH Eaton Residences
for 1+1 bedroom unit, RM1,917,091 for a two-
for their strong endorsement
infinity edge lap pool, dip
bedroom unit, RM2,648,250
and support of our first
pool, wading pool as well as
for a 3-bedroom unit,
condominium project in
gourmet kitchen and sauna.
and RM4,194,537 for a
Malaysia. Moving ahead, we
penthouse.
will be launching two ocean-
Mr Gilbert Ee, GSH’s Chief
fronting residential projects
Executive Officer said, “This
in the Sutera Harbour
being our first residential
precinct in Kota Kinabalu.”
development in the Malaysian
views of the iconic Petronas
On the Group’s first
Twin Towers and the pristine
residential project in
greens of the Royal Selangor
Malaysia, Executive Chairman,
Golf Club, as well as the
Datuk Sam Goi said: “The
At 52-storeys, Eaton
efforts in maximizing the
fastest connection in and
launch of Eaton Residences
Residences cuts a distinctive
scenic views – we deliberately
out of the city centre. It
marks another significant
silhouette with its ultra-luxe
tilted the building so that
is currently within walking
milestone for GSH as this is
glass facade and iconic
every unit either has the view
distance of the Twin Towers
our first residential project
rooftop infinity pool – it is
of the Petronas Towers or
MRT station. However, Phase
shortly after we acquired
believed to be the first and
the golf course. We have
2 of Kuala Lumpur’s MRT
and developed our flagship
only residential tower to
also made great strides
project will see a station
commercial building,
have an all-glass cladding,
in introducing thoughtful,
established at Jalan Conlay
GSH Plaza, in the heart of
as well as the first longest
premium design and finishes
and Prince Court Medical
Singapore’s Central Business
and highest cantilevered
to enhance urban living in the
Centre, just 150 metres from
District. We are very
sky pool in Kuala Lumpur.
city.”
Eaton Residences.
thankful to the project’s main
The sky pool comprises an
capital, we have spared no
financier, RHB Bank Berhad,
Stable Price Growth Expected for Kota Kinabalu in 2H2016
SB
House prices in Kota
& Co Kota Kinabalu Housing
is based on the market’s
construction cost, weakening
Kinabalu are expected to
Property Monitor for 2Q2016,
performance in 2Q2016
ringgit, land scarcity, falling
rise slowly but steadily, says
as reported in The Edge
and despite the current
global commodity prices
Rahim & Co branch manager
Property.
cautious sentiment due to
and challenges in the
stringent bank borrowing
employment market,” he says,
guidelines, escalating
adding that the secondary
Max Sylver Sintia when presenting The Edge/Rahim
“We see stable price growth in 2H2016. This
44
www.PropertyHunter.com.my
www.PropertyHunter.com.my
45
NEWS
market saw positive quarter-
High-end condominiums
on-quarter and year-on-year
continued to do well on
price growth in the second
the primary and secondary
quarter of the year.
markets. “We expect positive performance at projects such
Prime areas that enjoy good
as SkyVue Residence and
accessibility, such as Luyang,
Triconic Tower as we observe
Damai, Jalan Lintas and Jalan
most buyers — young
Bundusan, continued to
professionals and families
be hot spots and recorded
— are avoiding the more
higher prices, especially
expensive landed homes.
for landed and stratified
This has resulted in improved
properties, on the secondary
take-up rates for smaller high-
market.
rises,” Sintia points out.
The asking price for 2-storey
Located on Jalan Penampang
terraced houses in these
ByPass, the 22-storey SkyVue
areas has reached RM1
Residence (developed by
million while average prices
NBLand and EH Property)
are hovering at RM500,000
comprises 200 condos and
to RM850,000, says Sintia.
offers 24-hour security guard
“Some houses in established
Millenium Height, Luyang
surveillance, CCTV, intercom,
(+5.5%), Alam Damai (+4.9%),
residential developments that
Perdana and Taman Jindo
high-speed broadband
Marina Court (+3.6%),
were sold on the secondary
recorded an average q-o-q
infrastructure, a swimming
Bayshore Condominium
market saw a more than
growth of RM20,000, followed
pool, multipurpose hall,
(+3.3%), 1 Borneo
100% capital appreciation
by Taman Sri Borneo
meeting room, landscaped
Condominium (+2.7%),
from 5 to 10 years ago.”
at RM10,000 and Ujana
garden and children’s
Radiant Tower (+2.2%), The
Kingfisher and Golden Hill
playground. Sintia says
Peak Condominium (+1.7%)
Garden at RM5,000. Only
the project is scheduled to
and Likas Square (+1.3%).
Taman Indah Permai did not
be launched in 2H2016 at
register any growth.
In the suburbs, especially Tuaran, Menggatal and Inanam in the north and Penampang, Kepayan and Putatan in the south, demand for landed homes remained strong, albeit at higher prices, Sintia notes. For example, the 2-storey houses in Bandar Sierra that are located on Jalan Tuaran are currently priced from RM400,000 to RM600,000 on the secondary market compared with RM250,000 six years ago, representing a capital appreciation of more than 40%. “Similar house types in the vicinity are going for about RM450,000 with encouraging take-up on the primary market,” Sintia observes.
46
www.PropertyHunter.com.my
The KK skyline
Landed Homes
Condominiums
The prices of 2-storey
The condominiums sampled
terraced houses sampled
recorded an average y-o-y
by the monitor rebounded
growth of 3.15% during the
from an average of 1.92% in
second quarter of the year.
1Q2016 to 2.25% in 2Q2016.
The better performers were Jesselton Condominium
RM490 psf to RM671 psf
On a q-o-q basis, the average price growth for
(regular units) and RM694 psf
The samples recorded an
to RM751 psf (penthouses).
average growth of 8.31% or RM40,838 year on year.
Meanwhile, Triconic Tower —
condominiums was 0.58%. To view the capital value, rental rates and yields
a development by Kinsabina
Meanwhile, the 1-storey
Sdn Bhd — offers 768 condos
tables, please visit www.
terraced houses sampled
theedgeproperty.com.my
housed in three 16-storey
by the monitor recorded
blocks.
an average y-o-y growth of 10.58% or RM33,333 in
“Despite the mushrooming
2Q2016. The highest growth
of condominiums on the
was seen in Taman Tuan Huat
primary market, we note
(+12%), followed by Taman
growing demand for landed
Nelly Ph 9 (+8.06%) and
homes on the secondary
Taman Sri Kepayan (+7.94%).
market in mature parts of Kota Kinabalu,” Sintia
On a q-o-q basis, the prices
says, adding that the prices
of 1-storey terraced houses
of landed properties are
grew 1.45% or by about
skyrocketing in areas such as
RM5,000. The best growth
Putatan, Penampang, Inanam,
was seen at Taman Tuan Huat
Kepayan, Menggatal and
(+1.61%), followed by Taman
Tuaran, which are offering
Nelly Ph 9 (+1.39%) and
homebuyers newer and more
Taman Sri Kepayan (+1.35%).
affordable alternatives.
EXCLUSIVE REPORT
ISKANDAR PUTERI MALAYSIA’S PERSPECTIVE OF THE FUTURE SMART CITY
As a greenfield development, Iskandar Puteri, previously known as Nusajaya, has gone through two growth phases - infrastructure and property development. Iskandar Puteri is projected to be a unique melting pot of business and culture for Iskandar Malaysia. Being one of the largest property developments in South East Asia, it aims to create synergies between Malaysian and Singaporean economies. In this issue, Property Hunter highlights the transformation of Iskandar Puteri from its palm oil plantation days to its economically vibrant city today. By Property Hunter
Johor Premium Outlet www.PropertyHunter.com.my
47
EXCLUSIVE REPORT
THE BRIDGING OF OPPORTUNITIES
ISKANDAR PUTERI Iskandar Puteri, a newly developed planned city in Johor Bahru District, has never been intended to attract the agriculture or manufacturing industries. Thought to be a signature and catalytic development billed as The World in One City, its convenience to Singapore and lower cost base makes it a primary location for the global business services (GBS) outsourcing industry. Formerly known as Nusajaya, the city adopted the forename, Iskandar Puteri, on January 1st, 2016. Yayasan Warisan Johor historical research officer Kamdi Kamil said Iskandar Puteri was the appropriate name to replace Nusajaya as it complements the existing waterfront development Puteri Harbour and the state administrative centre Kota Iskandar.
Country
Risk
Notes
China, Hong Kong, India and Singapore
Too expensive & restrictive
Cooling measures, anti-speculation, low loan quantum, foreign buyers restriction
Australia, Japan, Korea, New Zealand, Taiwan
Too slow
Stable, mature, strong anti-speculations measures in places for a long time
Cambodia, Indonesia, Laos, Philippines, Myanmar, Thailand, Vietnam
Too risky
Weak secondary market, lower standard of living, not suitable to those without holding power
Malaysia
Low cost, faster growth, less risky
Relatively developed, no language issues, close to other Asia Pacific countries, less restrictions on foreign property ownership
Serving as the heart of Iskandar Malaysia, Iskandar Puteri, a city at 22,000 acres, is projected to be a unique melting pot of business and culture for Iskandar Malaysia. Just under half of the entire Iskandar Puteri land bank is being developed by UEM Land Berhad, a wholly-owned subsidiary of UEM Land Holdings Berhad.
Signature Developments Previously known for its Greenfield site and home to palm oil plantations, Medini is rapidly transforming into an integrated urban municipality
Aerial view of Nusajaya
48
www.PropertyHunter.com.my
of international standing with four
Campus (USMC), University of Reading
carefully planned zones. Comprising
Malaysia (UoRM), Netherlands Maritime
of 2,273 acres, Medini is now home
Institute of Technology (NMIT), Raffles
to Legoland Theme Park, Pinewood
University Iskandar (RUI), -Multimedia
Iskandar Malaysia Studios and just a
University (MMU), Management
stone throw’s away from EduCity.
Development Institute of Singapore (MDIS), Johan Cruyff Institute Malaysia
EduCity
(JCIM), and Primary and Secondary
EduCity Iskandar Malaysia (EduCity) is a
Trust Schools. As an Entry Point Project
pioneering multi-varsity education hub
(EPP) under the education National
located in Iskandar Puteri, housing the
Key Economic Area, EduCity aspires to
celebrated universities and institutes
create Asia’s first “best-in-class” higher
of higher education such as Newcastle
education destination with a superior
University Medicine Malaysia (NUMed),
urban environment in which students
Marlborough College Malaysia (MCM),
and staff can live, work, study and play.
University of Southampton Malaysia
Pinewood Iskandar Malaysia
SiLC (Southern Industrial and
and spacious luxury resort homes
Studios
Logistics Clusters)
nestled within 7 parks featuring 31
Located on a 49 acres site, Pinewood
SiLC is Iskandar Puteri’s premier
hidden, intimate and lush gardens.
Iskandar Malaysia Studios is a studio
industrial and environmentally
Covering 275 acres, the lake, forest,
complex which targets the Asia-Pacific
sustainable development. Spanning
wetland and canal themes are
region. The state-of-the-art facilities
across 1,300 acres of neighbouring
combined together with tropical
in the studio include 100,000sqft of
development-ready land, SiLC
landscaping, celebrating the beauty
film stages, ranging from 15,000sqft
features advanced, innovation-driven
of nature. This development has
to 30,000sqft. The 30,000sqft stage
industries augmenting the value
received international recognition by
has a water tank for productions that
chain of integrated ‘clean’ industrial
being awarded Best Development
require work on or under water. The
sectors in four major areas – advanced
Malaysia (highly commended) at
studio houses 2 TV studios, each at
technology, health & nutrition,
the Bloomberg Asia Pacific Property
12,000sqft. In spring 2015, the studio
logistics, and biotechnology. SiLC is
Awards 2010. It was also recognized as
was used for the filming of a Chinese
complete with full fibre world-class
one of Southeast Asia’s 20 Best Resort
action film, Lost in the Pacific. The
ICT connectivity, an imperative to
Developments by Property Report
reputable studio was also used to
support 21st-century industries and
Southeast Asia’s i-Property Awards
film Marco Polo, an American drama
businesses.
2010.
filming facility will be a catalyst to
Afiat Healthpark
Horizon Hills
transform Malaysia into a destination
Iskandar Puteri’s Afiat Healthpark is
Spanning across 1,200 acres, Horizon
for filmmakers worldwide, aiming to
tailored specifically towards developing
Hills is an integrated residential
bring in RM1.9 Billion and create more
healthcare facilities to meet the
township complete with a private
than 11,000 jobs by 2020.
increasing local and regional demand
18-hole Par golf course. Regarded as
web television series. The world-class
for premier and all-inclusive healthcare
one of the best golf course residential
Kota Iskandar
services. Dedicated to bringing
properties in Johor Bahru, Horizon Hills
Kota Iskandar, Johor’s new
together health and wellness services
takes full advantage of its unrivalled
administrative centre, is a
in one location, Afiat Healthpark sees
location of a mere 30 minutes’ drive
development comprising Johor State
the establishment of private hospitals,
to Singapore. A strategic joint venture
and Federal Government offices, set
specialist clinics, health screening,
development between Gamuda
amongst landscaped gardens and
centre, rehabilitation and dialysis
Land and UEM Sunrise raises the
parks. Designed to house more than
centres and facilities for modern,
benchmark for property development
6,000 civil servants and 76 state and
traditional and complementary
in Johor.
federal government departments, Kota
medicines (TCM) in a 68-acre
Iskandar is expected to handle more
development.
Nusa Idaman Nusa Idaman is a mixed development
than 1 million transactions a day. Kota Iskandar stands majestically on 320
Residential Developments in
spanning 250 acres in the suburbs
acres of manicured gardens and parks
Iskandar Puteri
of Iskandar Puteri. This mixed
as a symbol of a new attitude towards
Iskandar Puteri Residences combine
development was the first in Malaysia
government efficiency.
the best of urban living and the
to introduce anti-termite homes,
refreshing, de-stressing power of
precinct concept, single entry and
Puteri Harbour
nature. Complemented by modern
exit points, low density, lush parks
Puteri Harbour is the jewel of Iskandar
conveniences and infrastructure, each
and family recreation space. This
Puteri that spans 688 acres offering
development will boast signature
residential precinct is adjacent to a
a panoramic view of the Straits of
topographies that distinguish it from
650-acre urban forest (Regional Open
Johor. The Harbour is designed to
the rest. Among the residential areas
Space) and features a large linear park.
bring world-class waterfront living
being developed are Estuari, Horizon
The development components of
to Malaysia. Located adjacent to the
Hills, Ledang Heights, Nusa Bayu, Bukit
Nusa Idaman comprise of residential
majestic Kota Iskandar, Puteri Harbour
Indah, and Nusa Idaman to name a
and commercial units, kindergarten,
offers the experience of unique
few.
primary school, mosque, a community
waterfront living, dining, entertainment, and the arts and culture in a safe and
East Ledang
scenic natural setting.
East Ledang is UEM Land’s most prestigious offering with contemporary
hall, public field, recreation lake, petrol stations, landscaped parks and vista points.
www.PropertyHunter.com.my
49
EXCLUSIVE REPORT
Game Changer With the iconic High-Speed Rail’s
Regional Development Authority (IRDA),
location in Iskandar Puteri announced
demand from investors have remained
by both the Singaporean and Malaysian
strong with a recorded total cumulative
Prime Ministers in July this year,
committed investments of RM202.45
Gerbang Nusajaya is fast taking shape
billion from 2006 until March 2016.
with a 25-year master plan that will match Singapore’s very own Jurong
DTZ Consulting & Research Malaysia
Lake District.
and Singapore concurs on this in its latest report, titled Market Assessment
Winner of Best Masterplan at the
of Gerbang Nusajaya and Iskandar
FIABCI Prix d’Excellence Awards in
Puteri.
2012, Iskandar Puteri consists of signature catalytic developments
Upon completion, Nusajaya Tech
aligned with the identified sectors
Park is expected to create 22,000
and industries in the 10th Malaysia
employment opportunities.
Plan. The next wave of catalytic developments spanning approximately 4,500 acres within Iskandar Puteri will
For the whole of Gerbang Nusajaya alone, the area is expected to create an
take place in Gerbang Nusajaya.
estimated 76,000 direct job offerings,
According to the data from Iskandar
with an estimated 220,000 population.
30 min to Singapore CDB
“With the presence of key catalytic developments ranging from tourism and leisure healthcare and wellness, education, creative to business and industrial sectors in place to stimulate job creation and economic activities, Gerbang Nusajaya is poised to generate strong population growth that will drive housing demand.” - DTZ Consulting & Research Malaysia and Singapore
137,000 indirect job offerings together
35 min to Senai International Airport & 45 min to Changi International Airport
Immediate access to North-South Expressway (PLUS), Malaysia-Singapore Second Link and Sultan Abu Bakar (CIQ) Complex
Transformation of Medini
3%
Medini is a 2,230 acres urban
Strategically located adjacent to Singapore and ready to capitalise on potential High Speed Rail link between Singapore & Kuala Lumpur
Medini Master Plan
9%
municipality development planned for a population of 450,000 by 2030.
Infrastructure
Coupled with an integrated and comprehensive master plan, Medini
30%
13%
is coordinated by Medini Iskandar
Residential
Malaysia Sdn Bhd (MIMSB). The master plan is designed with a strategic vision
Green area
to unfold Medini as a city that is strong
Mixed-use
and archetypal with distinct new building designs and people-oriented
Community
15%
public spaces. 30%
50
Commercial
www.PropertyHunter.com.my
Malaysia’s largest single urban development to date will become the smart and
“We are positioning Medini Iskandar as a smart and connected township with important amenities. We want to set a new benchmark for sustainable developments. We want to come up with a smart city blueprint, comprising developments that offer a unique experience and lifestyle for those living and working in Medini Iskandar”
connected Central Business District of Iskandar Puteri. The gross development value of Medini stands at approximately RM87 billion spanning 15 to 20 years. Medini Iskandar is divided into four main clusters. Zone A, known as The Park, comprises Mall of Medini, Gleneagles Medini, Afiniti Residences, The Elysia, Paradiso, Grand Medini and Medini. Zone B, or The Pulse, offers offices such as Medini 6, Medini 7, Medini 9 and Medini 10. Another part of Zone B, called The Compass, is poised to be a financial centre and the flagship development of MIM. Zone D is known as The Crescent. MIMSB’s Managing Director, Datuk Khairil Anwar Ahmad aims to develop Medini Iskandar into a unique central business district (CBD) of Iskandar Malaysia. According to Khairil, MIM will also focus on commercial developments in the near future, in addition to its residential and healthcare developments respectively.
- MIMSB’s Managing Director’s words
On August 11, 2016, Medini 10 was most recently awarded the “Best Commercial Development” in Malaysia, at the South East Asia Property Awards 2016, held in Kuala Lumpur.
9 Years On ... 2007 / 2008
2009
2010
2011
2012
2013
2014
2015
2016
LAUNCHED Medini Iskandar Malaysia
SIGNED WCT Berhad for 1 Medini
GROUNDBREAKING LEGOLAND Malaysia
SIGNED Zhuoda Estate Group
Completed LEGOLAND Malaysia
LAUNCHED Afinity Medini
LAUNCHED Prive Medini
LAUNCHED Elysia by BCB
LAUNCHED Global Business Services by i2M
SIGNED LEGOLAND Malaysia
Binapuri Holdings for Medini Square
Disctinctive Resources Ra Ta Land Sunway Berhad Khazanah / Temasek Wellness Project
SIGNED STLR Distinctive Ace WCT Land BGCR Mah Sing UM Land Stanford Properties
Avira
Opus Medini
Iskandar Residences
Grand Medini
Medini Square The Meridin @ Medini Paradiso Mouva D’Pristine 18@Medini iMedini Walk Medini Signature Completed LEGOLAND Water park & Hotel
SIGNED Huawei - 1st corporate tenent at Medini 6, followed by Intelsec, BCB Completed Medini 6, 1st purposed built office building
Sunway Citrine GroundMedini 9 UMCity by UMLand Completed Medini 7 1 Medini by WCT SIGNED Samsung C&T - 1st Medini 7 Corporate tenant
GROUNDBREAKING Medini 10 Operrational Gleneagles Medini Somerset Medini CIMB Training Academy Frost & Sullivan at Medini 7 1 Medini
Pinewood Iskandar Malaysia Studios Matsui & Co. Ltd acquires 20% stake in MIMSB
Source: Medini Iskandar Malaysia Sdn Bhd
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51
EXCLUSIVE REPORT
Huawei became the first tenant in the business district of Medini 6, in 2014. Medini witnessed the ground breaking ceremony for its high-rise office building known as Medini 9 last year (2015). Founder of Khalil Adis Consultancy and iProperty.com Malaysia’s Brand Ambassador for Iskandar Malaysia, Khalil Adis said, Medini could be the sweet spot for Malaysia in 2016 with its close proximity to Singapore, no minimum purchase price and zero Real Property Gains Tax.
1
Here are three reasons why Medini could be the saving grace for Malaysia this year.
Medini 6 Masterplan
Well planned township With the rise of Iskandar Puteri in 2008, Medini now has infrastructure that rivals that of Singapore’s. The urban township has been well planned with various catalytic industries to spur economic growth, create jobs and boost demand for homes in and around the municipality. Medini is home to many big players, namely, Sunway, Mah Sing, and Eastern & Oriental.
MEDINI - A SNAPSHOT uNIVERSITI TEKNOLOGI MALAYSIA
SENAI AIRPORT JOHOR PREMIuM OuTLETS IOI MALL BANDAR PuTRA
STADIuM LARKIN
SKuDAI
SOuTHERN INDuSTRIAL AND LOGISTICS CLuSTERS (SILC) GELANG PATAH
THISTLE HOTEL
AEON BuKIT INDAH SHOPPING CENTER MOTORSPORTS CITY
ISKANDAR PuTERI TECHPARK
TAMAN MOLEK
TAMAN MOuNT AuSTIN
HORIZON HILLS
BuKIT INDAH
KOTA ISKANDAR
LEGOLAND MALAYSIA RESORT
LEISuRE FARM
1-5 mins PuTERI HARBOuR
PINEWOOD STuDIOS
EDuCITY
5-15 mins
TAMAN PERLING
PORESIA
PERMAS JAYA JOHOR BAHRu CITY CENTRE
15-25 mins
25-45 mins
THE ZON (DuTY FREE)
JEN HOTEL
MARLBOROuGH COLLEGE
BANDAR BARu uDA DANGA BAY
TuAS CHECKPOINT
PORT OF TANJuNG PELEPAS
WOODLANDS CHECKPOINT
CHANGI AIRPORT
KEMPAS MARINA BAY
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•
5 mins to Puteri Harbour, EduCity, Kota Iskandar
•
20 Mins to JB City, Senai Airport, Woodlands Checkpoint
•
15 mins to Danga Bay, Motorsports City, SILC
•
30 to 40 mins to Singapore CBD & Changi Airport
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2 3
Cooling measures for foreigners While the rest of Malaysia is affected by the minimum purchase price requirements, Real Property Gains Tax (RPGT) and Bumiputera quotas, Medini remains the only place where these rulings are relaxed. This has predominantly made it attractive for foreign investors who are ensnared by the various industries and its well-planned surroundings but where properties are still reasonably priced. Labelled as a free trade zone to make it foreign-investor friendly, Medini is slowly coming to life with a growing number of expatriate communities. Endless incentives There are plenty of incentives in Medini for just about everyone. For foreign knowledge workers or returning Malaysians looking to live, work and play in Iskandar Malaysia, you can apply under the ’15 per cent tax rate scheme for knowledge workers in Iskandar Malaysia’. Those who wish to apply for this scheme need to have the interest to reside in Iskandar Malaysia and to be working in the 9 promoted sectors; tourism, financial advisory & consulting, education, healthcare, creative industries, electrical & electronics, logistics, petrochemical & oleochemical and food & agro processing.
Developments The State Administration Offices, traffic lights, Puteri Harbour, Kota Iskandar are only some of the developments in Iskandar Puteri. Name
Developer
No. of units
Floor area (sq ft)
Price, from (RM)
Development status
Iskandar Residences
Distinctive Group
640
633 – 1,765
600,000
Ongoing
UM City
UM Land
213
583 – 1,192
730,000
Ongoing
The Meridin
Mah Sing
644
318 – 885
342,000
Ongoing
Afiniti Medini
Afiniti Residences Sdn Bhd
147
484 – 1,064
501,888
Completed
Almas
UEM Sunrise
546
520 – 2,221
390,000
Ongoing
Elysia Park Residence
BCB Berhad JV United Harvest Group
987
518 – 1,251
400,000
Ongoing
Sunway Iskandar
Sunway Berhad
328
626 – 1,828
563,000
Ongoing
1Medini Residences
WCT Holdings Berhad
644
720 - 1,704
300,000
Completed
Paradiso Nuova
ZhuoYuan Iskandar JV Iskandar Investment Bhd
382
696 - 6,080
540,000
Ongoing
(Phase 1)
Sources: 1.
Nusajaya Is Now Iskandar Puteri,
3.
3 Reasons To Invest in Medini in 2016,
7.
http://www.khaliladis.com/blog/three-
Be the Game Changer,
community/2015/12/31/Iskandar Puteri-
reasons-to-invest-in-medini-in-2016
http://theindependent.sg/10-key-facts-
is-now-iskandar-puteri-johor-revertsto-its-old-name-as-it-has-historical-
why-gerbang-nusajaya-will-be-the-game4.
significance/ 2.
10 Key Facts Why Gerbang Nusajaya Will
http://www.thestar.com.my/metro/
Master Planned Developments, Iskandar
5.
projects/surrounding-developments/
changer-for-the-next-phase-of-iskandar-
(MIMSB)
puteri/
Medini Iskandar Malaysia, http://www.medini.com.my/master-plan/
Puteri, http://www.iskandarinvestment. com/master-planned-development-
Medini Iskandar Malaysia Sdn. Bhd.
6.
Nusajaya Malaysia, http://www.nusajayacity.com/
8.
Medini Going Ahead with Commercial Developments, http:// www.theedgeproperty.com.my/ content/883527/medini-going-aheadcommercial-developments
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53
PROPERTY SHOWCASE
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Log-on to www.PropertyHunter.com.my/special-features for more exclusive reports and news on property
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KLK Land to Build Private School at Bandar Seri Coalfields KLK Land the property arm
of its efforts in building the
of Kuala Lumpur Kepong
future generation of young
Berhad (“KLK”), a publicly
leaders who can contribute
listed company on the Main
to the advancement of
Board of Bursa Malaysia
Malaysia.
WM
Securities Berhad, is pleased to announce that it has
Tan Sri Lee Oi Hian, the CEO
signed a Memorandum
of KLK commented, “We
of Understanding (“MOU”)
have and always believe in
with Wesley Methodist
the power of distinguishing
School (“WMS”), for the
education to transform
building and the running
communities and contribute
of a private school at its
to the nation building
Bandar Seri Coalfields (“BSC”)
process. WMS was selected
Township. Phase 1 of the
because not only has it
development will see the
demonstrated a good track
setting up of a kindergarten
record in providing quality
are very pleased to partner
To date, over 1,500 units
and primary school. There
education (with WMS Kuala
KLK Land for this project.
have been completed and
is also a proposal for Phase
Lumpur achieving top results
I believe in the quotation
handed-over in BSC. Its latest
2 Secondary School with an
in the Sijil Pelajaran Malaysia
that ‘children are the living
offering, Ixora Residences
international syllabus.
Examination for 2014 and
messages we send to a time
consist of 2-storey terrace
(L-R): Rev. Dr. Ong Hwai Teik (Bishop, Methodist Church, Malaysia), Dato’ Chin Lean Keat (Chairman, Management Board, Wesley Methodist Schools), Dato’ David Tan Thean Thye, (Managing Director, KLK Land), and Tan Sri Lee Oi Hian (CEO, Kuala Lumpur Kepong Berhad)
2015 respectively) but more
we will not see.” It is also the
homes has seen a take-up
The erection of the school is
importantly, the school is
stated ethos of the Methodist
rate of 85%. It is targeted
part of KLK Land’s ethos to
geared towards character
Church that with education
to be completed by the
organically establish vibrant
building which resonates well
as a cornerstone every child,
first quarter of 2017. Ixora
communities through the
with our organisation.”
regardless of race, religion
Residences comprises of 226
or creed can succeed if
units of landed homes.
pillar of education. The MOU is a demonstration
Rev Dr. Ong Hwai Teik, who
of its commitment to the
is the Bishop of Methodist
community of BSC and part
Church in Malaysia said, “We
Rental Rates May Drop by 30percent
placed in the right school environment.
BK
Low demand and an
return to market equilibrium
Rents would drop by as
The number of expatriates
oversupply of high-rise
will occur in line with
much as 30 percent from the
leaving the country after being
residential units may see
economic sentiments.
projected rental return of two
retrenched has also left many
to three years ago, Siva said.
high-rise residential units
rental rates drop by as much as 30 percent over the next two years, The Malaysian Reserve reported, as reported in Free Malaysia Today. Axis REIT Managers Berhad head of investments Siva Shanker said thousands of newly-completed units were expected to come on stream simultaneously in 2017 and 2018, causing a further strain on the market. He added, however, that such a spike in the rental market will be short lived, and the
“Many of these unit owners cannot afford any losses as they have to pay mortgages and they have no choice but to put up their units for rent,” he said in explaining how a rental war was expected to start as buyers would compete to get tenants, the financial daily reported.
unoccupied. Malaysia’s property sector had been booming in the
In a research report on the
last five years. An increase in
property sector, real estate
demand and high returns had
agency Knight Frank Malaysia
prompted developers to build
revealed that property owners
high-end, high-rise units.
were willing to compromise on lower rents to secure and
However, the country’s
retain tenants due to job cuts
economic downturn had
from low oil prices.
rattled the property market. Since last year, property sales
Siva said despite all the talk
have decreased, battering the
of foreigners swooping in to
share prices of public-listed
buy properties in Malaysia,
developers.
the local property scene was driven by domestic consumption. www.PropertyHunter.com.my
57
FEATURED EVENT
REDEFINING URBAN LIVING WITH THE ROBERTSON By Property Hunter
Sitting comfortably on a 3-acre freehold land in the heart of Kuala Lumpur, The Robertson has been designed to provide residents with the balance between comfort and convenience, and aims to meet the demands of today’s discerning buyers. Gamuda Land held a private preview of
The General Manager of The Robertson,
its brainchild, The Robertson, on 6th and
Cheo Yuan Ping, was more than thrilled
7th August at Magellan Sutera Harbour,
to see the crowd’s participation and
The development has also been
Kota Kinabalu.
interest at the exclusive event.
awarded with Green Building Index
The RM736-million project comprises
“We received a positive vibe from
features many green design elements
a North and South tower, with 793
the crowd during the 2-day event”,
such as rainwater harvesting, natural
residential units. The standard living
commented Cheo.
lighting and ventilation design.
entry cost.
(GBI) Provisional Gold Certification and
and work spaces range between 527 and 807 square feet, while selected
The premium mixed development
units measure between 1,162 and 1,227
project is expected to be completed
square feet. The standard units come
in 2018. With prices starting from
in 10 design options, while the Cabana
RM780,800, the developer offered some
units have three layout options.
attractive incentive packages including the easy ownership packages with low
58
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59
NEWS
Gold Rewards for Citizen Setia Enjoy bespoke lifestyle experiences and fantastic rewards when you own a Setia property. S P Setia launched its newest rewards and appreciation programme aptly named “Citizen Setia” for its property purchasers. Citizen Setia is an appreciation programme to recognize and acknowledge our valued and loyal purchasers. It has been carefully crafted to differentiate and give a branded identity to the Setia community. It is a platform through which Setia will offer various lifestyle experiences and privileges to our valued purchasers. By being a part of this, they will belong to a privileged class of community who will enjoy many privileges,” said Dato’ Khor Chap Jen, President and CEO of S P Setia Berhad. Previous unique Citizen Setia experiences include “Citizen Setia loves Jet Setting”; where more than 60 lucky Citizens of Setia were rewarded with yacht cruises and all-expense-paid business class trips to countries where Setia has its presence namely; Malaysia, Singapore, Vietnam, China, Australia and the United Kingdom. On top of that, the holiday winners were rewarded with Canon cameras and a year-long supply of Focus Malaysia business newspaper. Recently in June this year, Setia rewarded 1,000 Citizen Setia for watching the Broadway Musical ‘Shrek the Musical’ at Istana Budaya, KL. For those who have missed the earlier musical show, “Shrek the Musical”, Citizens of Setia will once again be rewarded with tickets to another musical concert, “Yours Musically” by Dama Orchestra. Setia will be partnering this local production house to offer
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WM
a night down memory lane where the best-loved English, Chinese, Malay and Indian songs will be played. Just in July, Setia had organized several gardening and landscaping workshops across our Setia developments in Malaysia where experts from our award-winning teams were present to provide hands-on tips on growing and maintaining a beautiful garden. Special planting kits with a variety of flower seeds were given to Citizen Setia for them to beautify their gardens.
(L-R) Datuk Wong Tuck Wai, Deputy President and COO of S P Setia Berhad, Dato’ Khor Chap Jen, President and CEO of S P Setia Berhad and Dianne Chan, Head of Group Marketing, S P Setia at the official launch of Citizen Setia and Triple A Gold Rewards campaign
For those who have purchased selected Setia properties this year, they will stand a chance to win a trip to the prestigious and celebrated Royal Horticultural Society (RHS) Chelsea Flower Show 2017 in London.
Besides that, Setia will be launching the Triple-A Gold promotion campaign, where Setia property purchasers who purchase selected Setia properties this year can now double up on their existing Loyal Customer Rebate (LCR) and enjoy up to 5% rebates. To add on to this attractive package, a purchaser who buys property worth RM500,000 and above, are also being rewarded a 99.99% Gold coin weighing up to 1 ounce. ‘Gold items are precious because they symbolically represent the value of the receiver (in this case, our valued purchasers). It is an “expression of appreciation” where SETIA has put in a great deal of thought and effort in appreciation of our purchasers. It is also a medium of exchange that can function as a store of value, and therefore, has an economic value,” Dato Khor added.
All activities organised by Citizen Setia will be announced via S P Setia’s social media channel such as Facebook, Instagram, and website (www. spsetia.com/citizensetia). Interested purchasers are welcome to walk into any of S P Setia sales gallery nearby for more details. Each Citizen Setia programme is uniquely planned where different Terms & Conditions apply.
S P Setia would also want to take this opportunity to appreciate Citizen Setia who introduces their friends or family members to purchase any participating S P Setia properties through Introducer Reward Points (IRP) payout and rewards. Instead of the usual 1% of IRP, the rewards are now being doubled to a 2% cash reward that will be paid within 30 days upon
Citizens of Setia can expect more upcoming activities organised by Citizen Setia for the second half of 2016. Citizen Setia will have a chance to watch their favourite stars in action at the movies as Setia has been given exclusive movie passes to catch the first screenings of mega blockbusters every month such as Deepwater Horizon, Jack Reacher: Never Go Back, Star Wars – Roque One and much more.
signing of Sales & Purchase Agreement (SPA) with signed and stamped loan agreement. On top of that, 99.99% Gold Coins worth up to almost RM30,000 (price according to the current gold price) will be given out in accordance with various price range ranging from if the property purchased is RM500,000 and above. “Sub-sale purchasers and tenants will also stand to benefit from this promotion if they successfully introduce Setia properties to their friends and family. Upon successful introduction, sub-sale purchasers will also join the ranks of those existing purchasers who have purchased their home directly from Setia and enjoy the same privileges as of the status of a Citizen Setia. Not forgetting the tenants living in our developments, they are also being appreciated to receive gold coins upon each successful introduction,” added Dato’ Khor. Triple-A Gold Rewards is available from 5 September 2016 until 31 December 2016 and the rebates vary according to each participating projects. For more information please call 1300 13 2255.
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INTERVIEW
There’s more to Hansgrohe than just bathrooms
®
Interview with K.C. Lee, MD of Hansgrohe® Singapore Family tradition, innovation and design form the core values of Hansgrohe®, and its designs are found in many residential and hospitality developments around Asia. Here, K.C. Lee, Managing Director of Hansgrohe Singapore, talks about the company’s competitive edge, its future plans, and the reasons for supporting the Asia Property Awards. By Property Hunter Photo credit to Hansgrohe Singapore & South East Asia Property Awards (Malaysia)
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63
INTERVIEW
Mr. KC Lee giving his speech during the South East Asia Property Awards
F
or more than a century, HansgroheÂŽ has established
KC: Mr. Hans Grohe founded the
Under the Hansgrohe Group, we carry
Hansgrohe company in 1901 in Schiltach,
two brands - Axor and Hansgrohe.
itself as one of the world’s
Black Forest, Germany and the original
leading innovator in design,
humble three-men business has now
Axor is our luxury brand where we work
technology and sustainability
become a huge global success with
with world-renowned leading architects,
in the sanitation industry, making it the
34 subsidiaries and 22 sales offices
interior and product designers like
market leader in the premium and luxury
worldwide, making Hansgrohe one of the
Philippe Starck, Antonio Citterio, Phoenix
segment. The Hansgrohe Singapore
few global players in the bathroom fittings
Design, Jean-Marie Massaud, just to
Subsidiary was established in 1995, and
industry. The Hansgrohe company is well-
name a few, to create Designer Visions
since 2000, has been helmed by K.C. Lee,
known as a leader in innovation, design
for the Bathroom. The Axor Collections
the Managing Director of the company.
and quality in the global bathroom fittings
offer a great number of unique
Hansgrohe Singapore overseas the
industry. To date, the company has won
and sustainable solutions to create
operations in Southeast Asia, and has
more than 500 design awards, making us
personalised bathrooms of the highest
been, for many Asian countries, the title
the most decorated manufacturer in the
aesthetic and technological levels. Just
sponsor of the Asia Property Awards,
bathroom industry. In addition, we have
recently, Axor collaborated with famed
organised by PropertyGuru, Asia’s leading
also been recently ranked 10th in the
London designers, Barber and Osgerby,
online property portal group.
iF Design ranking for the highest design
to create Axor One, which is a minimalist
competence, where we are leading above
masterpiece which allows for the water
other sanitary brands.
volume, shower outlet and temperature
PH: Firstly, could you start by telling us a bit about Hansgrohe and what the
control in a single shower control
brand stands for?
element.
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www.PropertyHunter.com.my
from left - Mr Chuah Theong Yee, Group CEO, Mitraland Group; Mr KC Lee, Managing Director, Hansgrohe Singapore; Ms Udomluk Suwan, Business Development Manager, PropertyGuru International
winning design and outstanding product
On the commercial front, we consistently
benefits.
seek long-term value-added win-win partnerships with trade partners as well
Hansgrohe has traditionally been one
as corporate customers in the property
step ahead of its time, from the invention
and hospitality development sectors. It is
of the first hand shower in 1928, the
sad to see some established European
creation of a new shower era with
brands adopting short term hit and run
Raindance in 2003, and most recently,
practices that are clearly not sustainable,
the introduction of the intuitive Select
and destroying their brand reputation in
Technology which allows our customers
the process.
to easily select their shower pleasure with the click of a button. Therefore, it is
PH: What further product expansions
our unrelenting dedication to investing
will we be seeing from the company?
in innovation, our commitment to Hansgrohe is our premium brand of
outstanding quality products and our
KC: Hansgrohe Singapore will continue
bathroom and kitchen fixtures, showers
award-winning designs, a tradition that we
to explore untapped opportunities in
and shower systems. The Hansgrohe
hold closely to our hearts since Mr. Hans
each market and work closely with our
brand stands for modern technologies,
Grohe’s time, that differentiates us from
headquarters in Germany to grow the
innovative design, and a superlative level
other brands.
of functional quality. This explains the success of Hansgrohe as a market leader
We work with the world’s best designers
in the shower segment and as one of the
and architects to bring our customers
leading manufacturers.
leading-edge designs in the bathroom and kitchen, and our industry-leading
PH: And what differentiates Hansgrohe
products are found in the most
from other brands today?
prestigious residential and hospitality
“
developments around the world including KC: As I shared, the Hansgrohe brand
the Four Seasons Hotel in Milan, the
distinctly stands out for its modern
Burj Khalifa in Dubai, the W Hotels in
technologies, innovative design, and a
Singapore, and in Malaysia, the St Regis
superlative level of functional quality - our
Hotel in KL, The Wembley - A St Giles
customers love Hansgrohe products
Hotel in Penang, as well as the Dua
because they know that Hansgrohe offers
Residency and the RuMa Hotel and
top quality bathroom and kitchen fittings,
Residences within KLCC.
bathroom and kitchen fittings business,
On the commercial front, we consistently seek long-term value-added win-win partnerships with trade partners as well as corporate customers in the
property and hospitality development sectors.
showers and shower systems, with awardwww.PropertyHunter.com.my
65
INTERVIEW
“We remain optimistic about the property market in Malaysia to recover in the medium term, and we will continue to build on our stronog ties with our esteemed clientele in Malaysia.�
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with plans to expand our production
real estate market is doing well, with the
designers to bring greater designs and
facilities to meet the needs of the growing
economic growth projected to be 6.7%
innovations in the bathroom and kitchen
markets.
this year and the positive developments
to their customers.
For the Hansgrohe brand, we will continue to expand the product range with the integration of the intuitive Select Technology to more hand showers,
such as the increasing government investment in Vietnam’s infrastructure
PH: Hansgrohe has been a major
as well as the new Housing Law which
sponsor for the Asia Property Awards
opened up the Vietnam property market.
a few times. What motivated you to support them and how does it position
overhead showers, kitchen mixers and
We see positive developments and trends
basin mixers, allowing our customers
in Malaysia’s real estate market too,
to “select” their pleasure at the click
which has been unavoidably affected by
KC: When the opportunity was presented
of a button. In Malaysia, you can find
the global economy slow-down. There
to Hansgrohe Singapore to sponsor
our latest Hansgrohe products at our
is the development of the LRT/MRT
the Property Awards in Asia, we saw
authorised dealers.
lines which enhance connectivity to the
it as a great platform to help promote
Greater Klang Valley, including Seremban
excellence in the real estate industry
which bodes well for the residential and
in the region and to celebrate the best
property market, and there is a relatively
achievers at both the domestic and
young population of Malaysians which will
regional levels. This was in line with our
increase the demand for houses as more
commitment as the market leader for
young adults settle down. In the longer
bathroom fittings in the premium and
term, we can look forward to the High-
luxury projects sector.
For Axor, following the introduction of Axor Citterio E in 2015, we will be launching our first all-in-one interactive shower control element, Axor One, designed in collaboration with renowned London design duo, Barber & Osgerby, in Malaysia later this year. The Axor One is an all-in-one masterpiece which combines the perfect temperature and volume control together with easy-to-use paddles to control the different shower outlets. Axor will continue to work with outstanding designers and architects with the vision of creating bathrooms that are trendsetting and outstanding. You can expect more new series from Axor on a regular basis. PH: Where is Hansgrohe’s largest market in Asia currently? KC: The Hansgrohe Singapore subsidiary, which I manage, oversees 13 markets in Asia, namely Singapore, Malaysia, Indonesia, Thailand, Philippines, Hong Kong, Taiwan, South Korea, Vietnam, Laos, Cambodia, Brunei and Myanmar. All these markets are important to Hansgrohe, and they continue to offer different opportunities for growth for the company. For instance, we are doing very well in the Vietnam market, especially in the recent months, where we have been successful in securing many luxurious projects such as the JW Marriot Phu Quoc, the Vinpearl Phu Quoc, and the Mong Tay Resort Phu Quoc which will be fitted with our Axor and Hansgrohe products. Vietnam’s
Speed Rail link between Singapore and Kuala Lumpur which will cut the journey times between the 2 cities to around 90 minutes, and this is expected to give the economy a significant boost. We, therefore, remain optimistic about the property market in Malaysia to recover in the medium term, and we will continue to build on our strong ties with our esteemed clientele in Malaysia. PH: Where do you foresee the company heading to in 2016 and what strategies do you have in place to
and benefit the company?
Therefore, we began sponsoring the Awards in 2015 for Malaysia, Thailand and Vietnam and this year, we are proud to expand our collaboration with Property Awards with the addition of 3 more countries (The Philippines, Indonesia and Singapore). With the recognition of the high calibre developments and outstanding contributions of the “best of the best” developers, consultants, architects and interior designers in the Awards,
achieve them?
as the Title Sponsor, we are confident
KC: The Hansgrohe Group is on target to
the key stakeholders and inspire the
cross the 1 Billion Euro mark in Net Sales
further growth of the property market
in 2016. The group has set a mission for
in Malaysia. For Hansgrohe, this is what
sustainable strong growth until 2020 and
continues to drive us to support the
is already in good progress in executing
Awards in our commitment to contribute
in tandem, several strategic growth
to the real estate industry in Malaysia, a
initiatives to get there.
very important market for Hansgrohe, for
that this will continue to motivate
the 2nd year. In Asia, the company will continue to take advantage of our present position of strength to grow and reach new heights. Some of the fastest growing markets include Vietnam and Myanmar, and we will leverage on our current achievements to attain greater success, and in other similarly important markets in Asia, we will continue to build on our strong ties with the architects, interior and product www.PropertyHunter.com.my
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on the ground, medium colours on buildings and trees, and lighter as it reaches skyward. A
PICK A COLOUR FROM THE LARGEST PATTERN IN YOUR SPACE
foolproof way to make a space look good effortlessly is by using darker colour values on the floor, medium colour values for the walls and lighter colour values on the ceiling.
Go monochrome!
HOT TOPIC
If you’re a minimalist who is a bit
THE PSYCHOLOGY OF COLOUR
Choosing the Right Colours for Your Personal Space By Property Hunter
You may not realize it, but colours have always been an important part of our lives since ancient times. Today, colour psychology is used as effective mood enhancers in homes. Used correctly, colours are able to evoke the certain desired mood(s), be it playful, focused, relaxed or romantic. Colour psychology is also an effective tool of marketing and branding, as it is persuasive enough to influence decision-making. Read on as we share tips on how to choose the right colours for your personal space.
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wary about colour-experimentation, go monochromatic by pairing neutral white walls with a bold coloured piece of furniture, such as a fiery red coffee table or kelly green kitchen Take cue from the main piece of
cabinet. At the end of the day,
furniture or decor in your space. If
monochromes never go out of style!
you have a patterned sofa, a boldcoloured rug or a piece of artwork that stands out, pick colours you
Play around with the colour wheel
like from the pattern and work from there. Alternatively, for a more neutral colour, pick from the pattern’s whites and beiges, and apply similar colour schemes.
Decorate from light to dark, from top to bottom Every interior space should rightfully replicate the outside world: with the
Analogous colour schemes aka
natural environment generally darker
colours that are next to each other
smaller pieces, such as black upholstery or a black television cabinet.
Apply shades of grey For fuss-free and risk-free colour picks, go for the ever-trendy and everneutral shades of grey. Different shades
Before picking a colour, consider this: natural daylight shows the truest colour, incandescent lighting brings out warmer hued yellow tones, while fluorescent lighting casts a sharp cool blue tone. Therefore, next to a large window, a strong colour may appear a little overpowering. However, the same colour might work as an accent wall in rooms with indirect lighting.
to appear either warm or cool. Greys
Add depth with decorative finishes
also complement both pastels and
Add life to flat and dull walls with subtle
bright colours wonderfully. For a touch
or dramatic visual textures or broken
of pizzazz, try teaming up grey with
colours. Try burnished mineral or
some fuchsia, lime green or paprika
metallic finishes and layered coloured
yellow.
glazes for more depth and character. If
of grey allow other colours in the room
you have more budget, you can also opt
on the colour wheel are more casual
Focus on a feature wall
and relaxing when paired together.
If you live in a small studio apartment,
However, they work best on informal
you can paint the rest of the walls white,
and private spaces. They’re best
to make the space look bigger, whilst
applied when choosing colours for your
adding a feature wall with your favourite
Experiment with different paint finishes
bedroom or living room.
colour for a pick-me-up and extra
If you like to be more conservative with
oomph!
your colour, you can still prettify a room
What’s your favourite colour to wear? Pay attention to the colour of the
Team up warm and cool hues together
clothes that you like wearing and colours
If you want your bedroom to appear
to install a 3D wallpaper, which will give a different dimension to a room.
less ‘sleepy’, try to light it up by pairing contrasting cool and warm hues together. The contrast will create enough tension to perk up an otherwise soporific space.
Think about the mood you want that flatter you. Wearing a colour you
As colours are powerful mood-
like will make you feel good; the same
enhancers, think about the mood
principle applies to your living space.
you want to evoke in a room and pick
Add black for glam
colours that do just that. Softer and generate a quieter feeling, while brighter
and understated character to a room
colours, such as tomato red will keep
is by adding a bit of black in it. While a
you on your toes.
unforgiving, you can experiment with
on different areas of your space. For instance, you can use eggshell (matte) finish paint on walls and satin/semigloss finish on trims. Colours will appear slightly different on each surface with different finishes.
cooler colours, such as powder blue will
A simple way to add glam, elegance
black wall may look a little too harsh and
by applying different paint finishes
Consider your lighting www.PropertyHunter.com.my
69
NEWS
SHAREDA to Apply for Money-Lending Licence
SB
Datuk Francis Goh Fah Shun,
licence to give loans upon
especially those non-bankable
the Sabah Building Society
SHAREDA President welcomes
the endorsement and
applicants.
Bhd, as end finance business
the announcement made
implementation of the policy
is huge capital and long term
by the Minister of Urban
of our Sabah Minister of Local
SHAREDA feels that is better
Wellbeing, Housing And Local
Government And Housing
than none and the Money
Government, YB Tan Sri Noh
(MLGH) including SHAREDA
Lending licence somehow or
Datuk Francis also praised
Omar. Despite the fact that
Berhad a company already
rather can really help those
the initiative mooted by
the Minister’s statement to
established earlier. Today,
less affordable group to own
the Ministry of Urban
allow developers to apply
SHAREDA has the strength of
their first house but it has
Wellbeing, Housing And Local
185 members.
to depend if the individual
Government to build more
licence to give loans to those
business.
Developer is financially sound
affordable houses under the
loan approval from banks,
Datuk Francis said “We
or not as a Money Lending
Rent to Own (R2O) scheme
it indirectly concurs and in
agreed that the above move
licence does not allow the
of Projek Perumahan Rakyat
tandem with the findings of
is a win-win solution that will
lender to collect deposit from
(PPR) which SHAREDA and
SHAREDA and REHDA in the
benefit both house-buyers
public and it is different from
REDHA had in the past years
past that the root problem of
and developers. It is definitely
a bank licence. Thus SHAREDA
urged the government to
unable to purchase a unit of
very encouraging to note that
will only apply for a licence
implement more projects of
affordable home is not the
the market is offered with
from the respective ministry
this kind in order to assist the
cause of lack of supply but, is
alternative financing options
under SHAREDA Berhad.
eligible group to own homes
because of the house buyer’s
besides the existing housing
inability to obtain loan approval from Banks or end-financiers.
failed to secure their housing
through renting first. The
loans offered by the banks.
SHAREDA also welcomes all
rental can be later transferred
In this softer economy and
alternative finance to boast
as their 30% Deposit or so
stringent loan approval policy
effective demand of Home
forth. Will be looking forward
from banks, giving a “lending”
Ownership. We are exploring
to the mechanism to be
move and encourage the
hand to our buyers would help
the feasibility through JV of
unveiled by the respective
members to apply the
many “Rakyat” to own a home
SHAREDA BHD and Sabah
ministry.
SHAREDA will support the
State GLCs and others to form
Reviving DIBS May Help Boost Property Market
BK
Home buyers, particularly
before servicing the mortgage
than 90 percent or if the
“This will be quite helpful in
first-timers, may expect for
during the construction period,
method of loan assessments
servicing part or the full 10
more goodies should the
it, however, does not solve
for first-time house buyers is
percent deposit, or if one is
2017 Budget include some
the issue of low margin of
changed,” said the research
unable to secure the full 90
key incentives, as reported in
financing faced by many first-
house.
percent margin financing.”
PropertyGuru.
time house buyers,” it said. “However, we reckon it may
The research house also
These are the increased
“The issue is many developers
take some time for Bank
questioned whether it will
allocation of Employees
tend to price in the DIBS
Negara Malaysia to study the
be sufficient for robust sales
Provident Fund (EPF) Account
cost into the property price,
long-term impact of banking
growth and whether investors
2, relaxed loan assessment
resulting in higher prices.”
risks.”
will take profit upon any good
the Developer Interest Bearing
Kenanga underscored the
It also called for the increase
Scheme (DIBS) and more
biggest barrier for first-time
of the EPF Account 2 allocation
1Malaysia People’s Housing
buyers – financing. It noted
from 30 percent to 40 percent.
Kenanga does not expect
schemes.
that the budget should
The government could limit it
the government to lower or
methods, the reintroduction of
news considering that the market remains challenging.
address the concern of the
to first-time home buyers to
remove the real property
According to Kenanga
deposit and hidden costs,
address concerns that it may
gains tax or raise the 70
Investment Bank Bhd, these
particularly when these buyers
revive speculation.
percent loan-to-value cap
incentives will help rejuvenate
cannot obtain the full 10
the property market, with the
these addressed non-house
could be more meaningful
ownership markets. It would
“It will be a game changer if
compared to bringing back
also be detrimental to the
first-time house buyers get a
DIBS for first-time house
primary market.
margin of financing of more
owners,” said Kenanga.
percent margin of financing.
revival of the DIBS serving as a sentiment booster. “While it does help ‘buy time’
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on third home purchases as “We think this measure
www.PropertyHunter.com.my
71
contributor
Rest in Peace: Property Transfer of the Deceased’s Estate People collect assets and properties throughout their lifetime, but when one passes, everything will be left behind and passed on to other people, like their next-of-kin, best friends or loved ones. We are more familiar with the transfer or transaction - especially the buy-sell transaction or transfer by way of gift during one’s lifetime (inter vivos); but are less familiar about the process of transferring one’s property in a deceased’s name to the beneficiary’s until it is time to administer one’s estate. By Chris Tan
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T
he process of this kind of transfer is
Keuntungan Harta Tanah to be paid. For stamp
different when compared to the usual
duty, regardless of whether the estate left is testate
property transaction and the determining
(with Will) or intestate (without Will), there will be a
factor of this process depends on whether
nominal amount of RM10.00 if it is to transfer to the
there is a Will left behind. Where there is a Will, a
beneficiary. However, it is not the case when the
person can specifically choose a beneficiary for
property is to transfer to the third party purchaser.
certain properties in his or her estate. Prior to
Whereby, a full stamp duty ad valorem will be
death, the deceased who has made a Will or has
imposed on the purchaser.
given a legacy (a testator), can appoint the person of their choice, including any of his or her beneficiaries
The RPGT was introduced through Real Property
to administer the estate, i.e. to be the executor. The
Gain Tax Act 1976 (RPGT Act). It was suspended
distribution of the estate, as in which property is to
temporarily in 2008-2009, and reintroduced
be left for whom can be decided by the testator as
in 2010. As of our concern to the topic we are
well.
discussing, it only applies when the deceased’s property is transfered to the purchaser instead of
Without a Will, it can create more hassle, simply
the intended beneficiary, otherwise, it is exempted
because the estate is not listed, is scattered
from RPGT. It should be noted that, even if the
everywhere and the deceased did not leave a clear
RPGT is exempted, the beneficiary to the property
word of where his or her estate is to be distributed.
is required to file the CKHT Form with the Inland
This is where the legislations come into the picture.
Revenue Department. In a transaction that involves
The estate will be distributed according to the Distribution Act 1958 for Peninsular or Intestate Succession Ordinance 1960 for Sabah – it will be given to next-of-kin instead. These legislations give priority to the offspring of the deceased; secondly, to the spouse and the parents of the deceased; lastly, to the other relatives including brother(s), sister(s) and grandparents of the deceased. Transaction of immovable property (land or houses)
a third party purchaser, the time of the deceased acquires and disposal of the property is crucial in order to compute the RPGT. Such transaction would be considered as the estate directly sells to the purchaser, hence, the date of death of the deceased will be taken as the property’s disposal date. If the beneficiary/executor sells the property within 5 years, the following RPGT rate shall apply. The rate of RPGT is illustrated in the following table: Citizens
Non-Citizens
<= 3 Years
30%
30%
vested on the executor/administrator by way of
<= 4 Years
20%
30%
transmission. Once the beneficiary to the particular
<= 5 Years
15%
30%
property is ascertained, the executor/administrator
> 5 Years
-
5%
from an estate requires 2 steps regardless of the existence of a Will. Firstly, the property will be
will transfer to the respective beneficiary. The difference is on the required document. For the said transfer with the existence of a valid Will, the executor does not require an Order for Sale to transfer the property to the beneficiary. However, an administrator (without a will) will need an Order for Sale from the court to ascertain the beneficiary in the transfer. An Order for Sale is also needed to determine the purchaser when beneficiaries renounce the right on a particular property and intends to sell it to a third party purchaser. Most concerned part of this transaction is the stamp
Disposal
The transfer of the deceased’s estate is a lengthy and complex process especially when it deals with land. We have different sets of rules in Peninsular, Sabah and Sarawak. Not to mention different regulations could be applied in different states and the restrictions in every different piece of land could be varied from one another. The abovementioned information might help to clear some of the doubts but it is advised to engage a lawyer when facing such issues to enable seamless administration of the estate and to prevent infringes in law.
duty and the Real Property Gain Tax (RPGT) or Cukai
Chris Tan is the founder and Managing Partner of Chur Associates, a boutique legal practice that thrives in delivering business friendly solutions for its clients and having a niche positioning of ‘everything real esate’ serving the entire value chain from the upstream to the downstream.
www.PropertyHunter.com.my
73
contributor
Value Investing in Australian Property using Warren Buffett’s Methods By Yaron Gal
To most, Warren Buffett’s investment
And how do his principles apply to
Although the safety net of
strategy is a mythical ideology.
Australian property investing?
purchasing underlying companies
It’s astounding to note that a $1,000
A value investor, like a bargain hunter in
the central theme of most Graham’s
investment in Berkshire Hathaway—
a flea market, searches for companies or
students, Buffett uses a more pragmatic
Buffett’s investment company—in 1965,
assets that are currently out of favor with
approach by considering the overall
is now worth $15.3 million!
the market and are worth much more
performance of a company.
for much less than their worth is
than their current valuation. (adjusted for inflation with dividends
Its quality and capability to generate
included, at a compounded annual gain
The securities are undervalued and are
earnings are far more compelling to him
of 20.8 percent).
trading below their intrinsic worth when
than capital gains and when he invests in
they are snatched by the investor. The In comparison, the same amount
a company, he intends to hold the stock
concept provides substantial profits to
invested in the S&P 500 would be worth
for a long-term or indefinitely.
the investor once the market inevitably
a paltry $112,341.
re-evaluates the stock and corrects its
This approach and his adherence
price to fair value.
to personal frugality have made him
He is a genius to say the least and probably the world’s greatest investor. But how does Buffett, the Oracle of Omaha, do it?
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immensely wealthy beyond the average It also protects their downside should
man’s wildest dreams.
things not go according to plan and the business falters.
This value-oriented investing technique can also be employed by property
investors in Australia. Real estate
for companies with a small amount
out for your target price. Hold forever
assets have an underlying intrinsic
of debt.
if it’s a winning piece of real estate.
through vigorous evaluation and
The same principle is applicable to
This applies very well to Australian
analysis.
property investing.
property prices; historically they have
The opportunity for profitable
Avoiding incurring large amounts of
the past 100+ years. This is a proven
investments therefore often arises
debt to purchase a property as this
way to winning and growing your
when the intrinsic value of an asset is
increases the volatility of earnings and
wealth.
above its purchase price. Such insight,
adds large interest expenses, thus
however, requires one to familiarize
limiting the amount of money that
Here’s a brief checklist on what you
themselves with the tenets of Buffett’s
reaches your coffers.
should look out for when selecting
investment philosophy. Here we take
Margin of safety
value that is always determined
doubled almost every 10 years over
a look at some of them and how they can be applied in property investing in Australia.
Australian property: •
Make sure you buy from a
This is where the magic is.
reputable property developer
Ascertaining whether a company is
(Buffet buys blue chips stocks)
Return on Equity/ Return on Investment
undervalued is the most an important skill for a value investor. Buffett
•
If possible, select a landmark
calculates the company’s intrinsic
development that is unique
value based on a range of factors,
(Buffet selects stocks with a
A stock’s return on equity is a
including fundamentals such as
strong competitive advantage)
measure of its profitability. It reveals
revenues, earnings and assets, and
the rate at which shareholders
compares it to the company’s current
are earning per share and Buffett
market capitalization.
always looks at this metric to judge a company’s performance in comparison to others over a period
•
Choose a location that has good prospects for growth (Buffet selects stocks with good growth
If the intrinsic value is higher than
potential)
the market capitalization by not less
of time.
than 25 percent, Buffett believes that
Buffett is a great example and
the company has value. The essential
ambassador of the investment
In property investing, dividing the
task for the property investor is to
discipline. His basic ideas are timeless
purchase price of a house by the
determine the intrinsic value of the
and proven. If you want to improve
rental income you could expect to
investment and capitalize on the
your property investing returns, it
earn over a period of a year can paint
inefficient market mispricing.
doesn’t hurt to apply his proven
a good picture of the property’s ROI. With this, you can compare with other
strategies. Value investing requires being able to hold a position regardless
**Special offer for Property Hunter
historical values in that market.
of prevailing market conditions.
readers:
Low Debt to Equity Ratio
Buffett’s famous quotes: “If you aren’t
properties on the market and the
This sentiment is echoed in one of willing to own a stock for ten years, don’t even think about owning it for
Would you like help to create a personalised, Buffet-style investment plan for investing in Australian
ten minutes.”
property? Contact me by email or
prefers shareholder’s equity to be the
The basic principle is relevant to
with you for free!
main driver of the growth of earnings
property investing—buy at the right
rather than debt. To that end, he opts
time and at the right price and hold
Another feature that Buffett considers highly is the debt/equity ratio. Buffett
phone and I’d be happy to create one
Yaron Gal began purchasing investment properties while working full time and bought 4 investment properties within less than a year. He now works as a property strategist and helps individuals identify high growth properties for wealth creation. For more free information about investing in Australia, visit www.investinproperties.com.au.
www.PropertyHunter.com.my
75
NEWS
Melaka Gateway Developer Ropes in China State Firm KAJ Development Sdn Bhd,
Under the MoA, KAJ will
the master developer of
partner with PowerChina
Melaka Gateway, a 1,366-
for the development and
acre (552.8ha) mixed
construction of the three
development project
islands, which have been
scattered on four islands in
earmarked for various
the Strait of Malacca, has tied
tourism, commercial,
up with China’s state-owned
property and maritime
PowerChina International
developments.
WM
Group Ltd to develop the project, as reported in The
The fourth island, which
Edge Property.
has been designated as a container and bulk terminal,
The Malaysian Investment
with shipbuilding and ship-
Development Authority
repairing services, and a
(Mida) said KAJ signed a
maritime industrial park, will
memorandum of agreement
be developed by KAJ together
(MoA) with PowerChina
with Guangdong, China and
yesterday and investments
Chief Minister Incorporated,
in the project are expected
said Mida.
to reach RM30 billion in two years. The project comprises
Trade and Industry Minister
three reclaimed islands and
Datuk Seri Mustapa
one natural island.
Mohamed, who attended the signing ceremony,
Pan Borneo Highway on Schedule
An artist’s impression of Melaka Gateway
said this agreement is
teams to review the current
another reflection of the
technical data, and carry
confidence of investors in the
out initial feasibility studies,
fundamentals of Malaysia’s
consulting and design works
diversified economy. “It is
in Melaka Gateway.
my hope that it will further encourage more investors
Launched in February 2014
to look at Melaka as their
by Prime Minister Datuk Seri
profitable investment
Najib Razak, Melaka Gateway
destination,” he said.
is expected to open in 2018 and be finished completely
Mida said PowerChina had
by 2025.
already deployed its technical
SB
Construction of the Pan
packages,” said Fadillah
Borneo Highway, now
during a press conference
underway, is proceeding
after the Sabah Akademi
according to schedule and
Binaan Malaysia (ABM)
expected to be completed by
graduation ceremony cum
the year 2022, as reported in
Construction Industry
Borneo Post.
Transformation Programme (CITP) undertaking signing by
Works Minister Datuk Seri
industry players on Monday,
Fadillah Yusof said he was
September 5th.
pleased with the progress of
Pan Borneo Highway map
the 1,236-kilometre highway
He said that to date, the
thus far.
construction of the highway
made, we can commence
surveys and subsequently the
is right on schedule and “I’m happy with the current
with all the packages by
appointment of a contractor.
the ministry is targeting
report and although there
2018,” he said, adding that
to appoint a contractor by
there are still a few packages
He also said that appointing
are problems that need to
January next year, to fulfill the
a contractor must involve
be rectified, it’s only small
under Federal government
prerequisites of the package.
funds which include the initial
all the stakeholders as it is a
projects such as the Papar-
large-scale project.
problems; there are no big issues.
The appointment of the contractor must be finalized
Donggongon route.
“This is not a straightforward
“As for the Pan Borneo
by next year, said Fadillah,
project and we need good
Highway in Sabah, based
According to Fadillah, the
to proceed with the 35
ministry has already begun
coordination as we also
on what had been agreed
packages.
in their efforts to finalize the
have to resolve the issue of
appointment of a consultant,
land acquisition and land
which will be followed by
compensation,” he said.
on, the construction of this highway is divided into 35
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“Once the appointment is
www.PropertyHunter.com.my
77
contributor
Should you
rent or buy
a property in Malaysia?
By CompareHero.my
You could be newlyweds who are looking to start a family, or perhaps you’ve been renting this whole time and you’re now ready to make that huge leap into owning one to call your own. There are just so many factors to consider – from ensuring you’re able to afford a home; to location, location, location; maintenance costs and increasing rentals…it’s overwhelming and we feel you. There are two school of thoughts with reasons for and against – buy a property for investment purposes and to eventually live in, or live in a rental property and save yourself the high capital layout required? Hopefully by the time you come to the end of this article, you’ll have a better idea of the decision you’ll need to make.
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Are You Financially Ready? But, before we get into the reasons to rent or to buy a property, whichever decision you make needs to hold financial sense for you and your household. Can you afford the mortgage loan repayments? Do you have enough to put upfront for your down payment (among other fees)? Or are you barely making ends meet month-on-month? Is renting a more comfortable life for you? You can use the HSBC Rent vs Buy calculator (www.hsbc.com.my) to help you get an idea of your financial appetite, including an annual analysis of cumulative spend between buying and renting.
Reasons To Rent A Property Short-Term Stay If you’re looking for a short-term solution, renting is the better bet. You won’t be tied down to one home and you’re free to shift once your rental agreement is up. Perhaps you are uncertain of your career path and you’d like to have the option to “pack up and leave” whenever required. Renting gives you more control over the length of your stay which is negotiable with the landlord - you can choose to stay for a year or two, or renew your contract on a month-to-month basis. Fast Turnaround Renting a home basically requires you to find the home, contact the landlord, sign the tenancy agreement, pay the deposit fees, and voila – all yours! Even quicker if the property you’re renting is fully furnished. Home Repairs Are Not Your Concern Unless of course, you caused it! Else,
should be repaired within 2 – 3 weeks. You get to rest easy that you won’t have to ever fork out costs for maintenance or repairs. And even if you did cause something to break, or leak, there is your money from your deposit to cover those costs. It just means you don’t get your full refund from the landlord once the agreement is over. The ‘Cheaper’ Option For Short-Term Stays The Tenancy Agreement requires you to provide an upfront payment to your landlord before moving into your rented home. It usually consists of 3 major things: •
Refundable security deposit (2 – 3 months rent)
•
Utility deposit (half – 1 month rent)
•
Advance rental (usually 1 month rent)
Let’s just say that your monthly rent is RM1,500, the upfront payment that you’ll need to pay can be anywhere between RM5,250 to RM7,500. That looks like a lot, but still much less compared to the 10% – 40% down payment that you’ll need to put down for a home loan. Your down payment and monthly rent will be significantly lower if you’re renting with friends, and you won’t need to worry about taxes or maintenance. The extra money that you have can be channelled to build your savings, and in time you can eventually afford to buy your own house. The savings can also be used to invest in a long term investment to secure your financial future. Less Emotional Stress With renting, you are not exposed to the stress of the property market fluctuations. That’s usually something your landlord would be concerned about. Also, the initial capital outlay and upfront costs required for a rental property is far less, making it a decision that is easier to live with.
most home repairs are to be borne by the landlord and once notified, they www.PropertyHunter.com.my
79
contributor
The Downside To Renting?
It Is Not Yours To Call ‘Home’
you plan on setting your roots firmly in
At the end of the day, you’re a tenant
a particular place for now, buying is a
and the landlord could decide to move
better option because you’re more likely
into the property at any point in time, or
to reach breakeven, and over the long-
do so as he/she pleases. This means that
term, it will result in savings. Think about
even before your tenancy agreement
the day you retire, you won’t even have
is up, you could be asked to move out
to worry about paying for rent and can
whether you’re ready to or not. It’s just
enjoy the comfort of your own home that
never a place you can call “home”.
you invested in all those years ago. Tax Relief
On average, rent increases from 5% to
Reasons To Buy A Property
7% and due to market inflations and the
Long-Term Security
to RM10,000 per year x 3 years of
No Appreciation Of Your Ringgit Spent Unlike with a property you own, every ringgit spent on your rent is gone forever. You do not reap the benefits of the property increasing in value over time. Renting is not an investment, it’s a monthly expense. Rental Increase
rising costs of maintenance fees that are borne by your landlord. Furthermore, if the property is based in a location that has suddenly spiked in value, be assured that your rental amount will increase.
At the end of your mortgage loan, you will own a property to call your very own. That is a security for you and your family that renting can never provide. Be protected from rental increases, because you’ll only need to worry about your monthly mortgage repayments. Also, if
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Did you know that you can claim personal tax relief on your mortgage loan for up to RM10,000 in a year for 3 consecutive years? The amount (up assessment) is deductible every year for 3 consecutive years of assessment from the date the mortgage loan interest is first expended. The mortgage loan rebate was implemented in 2010, however, you’ll need to fulfil these criterion to be eligible for it:
Recurring Fees If you’re buying a high-rise unit, expect to pay monthly maintenance fees. You will also have to pay quit rent or cukai tanah every year typically before May 31. Then there is also cukai pintu, a tax imposed every two years and is charged based on the estimated annual rental value of your property, multiplied by a set of rates that are stipulated by your local authorities. Insurance While a homeowner’s insurance policy is a must have to protect your property from risks such as fire, flood and earthquake, mortgage insurance is equally important in order to protect your mortgage loan in the event of death, disability or illness. Mortgage insurance comes in two variety – Mortgage Reducing Term Assurance (MRTA) and Mortgage Level Term Assurance (MLTA).
The Verdict? Know your financial boundaries and make a choice that allows you to live within them. Review your credit score and assess if you’re even able to take out another loan before you apply for •
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Malaysian citizen who resides in Malaysia. The purchase of the residential property is limited to one unit. The Sale and Purchase Agreement has been signed from 10th March 2009 to 31st December 2010. The said property must not be rented out.
It Is An Investment You can choose to do as you please with your property. You can either rent it out at a higher price and cover your monthly mortgage instalments, or you can choose to sell it when the property’s value increases in the market and pocket your gains. Property generally appreciates
The Downside To Buying? The High Upfront Costs Your down payment is at least 20% of the total property cost. Banks are a lot more stringent in giving out mortgage loans, with very few now offering 100% or 90% loans. Even so, that can still be a huge sum to save up for. You have the option of withdrawing from your
a mortgage, and assess your lifestyle needs – if you need a property to live in, or the flexibility to move around. Traditionally speaking, it’s better to buy a house than to rent, as you’ll eventually be the master of your own home. But in this modern day, the younger generation should aim for financial stability and independence before all else, and renting helps you achieve those aims without taking away a huge chunk of your income.
Employees Provident Fund (EPF), but you’ll need to pay for the down payment first, and later claim it from your EPF’s Account 2 savings. You can find more information about it at www.kwsp.gov.my (Withdrawal to Purchase a House).
over time, and that’s an investment that
Don’t forget the additional fees like Sales
lasts for generations and beyond.
& Purchase Agreement (SPA) fees, stamp duties, agent fees and legal fees.
This article is contributed by CompareHero.my, a site dedicated to empower Malaysians with financial literacy and the tools to make better financial decisions in life. Find and compare the best credit cards, personal loans and broadband plans on CompareHero.my today!
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www.kopiandproperty.com By Charles Tan
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Should Developers be allowed to be ‘Money Lenders’? A friend and I were discussing this
Personally, my main worry are the
property bubble. I think this would be
issue the other day. She has an
buyers. Assuming that the bank would
a remote idea because the loans that
economics Ph.D. from the banking
only approve 80 percent, the buyers
the developers would give out would
fraternity. We both agreed that the
would need to either get the balance
be extremely small in comparison
idea of developers becoming money
from somewhere else, or they would
to the whole industry. Some say
lenders is not a good one.
have to abort the purchase. However,
that property prices will be higher
if they can still get approval from the
because of this – but I also think that
Her argument is simple: When one
developers, do they seriously think
this is developer specific. Without
developer is approved, then other
that they could afford something more
understanding objectively and buying
developers should also get approval.
expensive?
rationally, those few hotspots would
This will be followed by even more
remain to be hotspots and prices
developers getting approval and
Wouldn’t this, then, inspire more
would rise faster than secondary
the loans being approved by these
people to apply for loans that they
properties. I think this would remain
developers would be huge within a
couldn’t afford in the first place?
the major cause for property prices
few years. Let’s imagine that we are
Remember, as a country, we
to keep increasing – demand vs
suffering another external economic
Malaysians have a lot of household
limited supply. So, neither my friend
shock and that these developers have
debts. It’s very easy to get into debts
nor I, support this idea of developers
a hard time selling their properties
but it’s even harder to get out of.
becoming money lenders. And this
and, worse still, their buyers defaulted. So, who’s going to clean up the mess?
applies regardless of whether the rate Of course, there are also those who
is at 6 percent or 18 percent.
have said that this may create a
Buying Real Estate? It better be legal, else, face the consequences This has been mentioned a few
course, it did not start recently. In fact,
lost in subsequent elections and is
times and it’s now being more strictly
as of 2013, 46 properties worth a total
now a leader of ONE Nation.
enforced. Foreign buyers of Australian
of A$93 million (RM290 million) has
properties MUST get the Australian
been sold and most of these belonged
Honestly, the vibrancy of the Australian
government’s permission. It is a
to Chinese interests. One major
property market is because of firm
requirement that all foreigners must
reason for this is political. In fact,
interests from foreigners besides the
seek approval from the government’s
foreign buyers are usually blamed as a
locals themselves. To those Australians
Foreign Investment Review Board
major cause for property prices being
who managed to sell their properties
before they could purchase properties
increased, causing locals to suffer
for a good price and to the developers
in Australia. There are also restrictions
from high property prices. Previously,
who continue to build because of
on the type of properties that
there was a case where Londoners
buyers from overseas, they also need
foreigners could buy, which I think
were blaming foreigners for pushing
to speak up. If property investments
is one key reason why some choose
up the property prices in London.
from foreigners are also politicised
to skip this process. Those caught
too much and the foreigners feel that
without formal approval will be forced
This is an actual comment by a
other places are more welcoming,
to sell the properties that they bought.
prominent person in the Australian
rest assured that they would go
political circle. Far-right political leader
there instead. As of now, within the
Reported in The Malay Mail, a forced
Pauline Hanson said that “Any foreign
developed property markets alone,
sale of 16 properties bought by
ownership is regrettable”. She further
Australia is not the only choice
foreigners without the Australian
singled out Chinese investment and
available.
government’s approval has been
land ownership as unwanted. Who is
concluded. The majority of the buyers
she? Google her name and read about
Happy buying and please, follow the
were Chinese nationals but it included
her story over the years. You’ll learn
rules.
a few Malaysian buyers as well. Of
how she rose to prominence and later www.PropertyHunter.com.my
83
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
84
www.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 www.PropertyHunter.com.my
85
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
86
www.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 www.PropertyHunter.com.my
87
*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
88
www.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 www.PropertyHunter.com.my
89
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
90
www.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 www.PropertyHunter.com.my
91
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
92
www.PropertyHunter.com.my
www.PropertyHunter.com.my
93
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
94
www.PropertyHunter.com.my
www.PropertyHunter.com.my
95
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
96
www.PropertyHunter.com.my
www.PropertyHunter.com.my
97
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
98
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www.PropertyHunter.com.my
99
100
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