Issue 83 - Oct 2016

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.

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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

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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

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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

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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

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Children Pool

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Pool Lounge

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Steam Bath & Sauna

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Gourmet Lounge

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BBQ area

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Steps Studio

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Zen Deck

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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.

www.PropertyHunter.com.my

33

FEATURED EVENT

ADMIST HILLS, SEA AND SKY, LIES ALILA2

By Property Hunter

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Rising majestically from the embrace

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the use of, energy, water and materials,

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Alila2 is more than just contemporary

What truly sets Alila2 apart from others

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is its enviable location. It rests high

rare blend of nature, modern designs,

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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

40

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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.”

42

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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

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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

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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

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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

52

•

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

www.PropertyHunter.com.my

53

PROPERTY SHOWCASE

54

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This Special Feature is brought to you by

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

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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

60

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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)

www.PropertyHunter.com.my

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.

64

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.�

66

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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

67

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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www.PropertyHunter.com.my

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 •

•

•

•

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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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

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APARTMENT FOR SALE

Extracted from PropertyHunter.com.my

*Listing are accurate at the time of print. Kindly contact the respective agents for updates.

For more real estate listings, please visit www.propertyhunter.com.my

84

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*Listing are accurate at the time of print. Kindly contact the respective agents for updates.

For more real estate listings, please visit www.propertyhunter.com.my www.PropertyHunter.com.my

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

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*Listing are accurate at the time of print. Kindly contact the respective agents for updates.

For more real estate listings, please visit www.propertyhunter.com.my www.PropertyHunter.com.my

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

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*Listing are accurate at the time of print. Kindly contact the respective agents for updates.

For more real estate listings, please visit www.propertyhunter.com.my www.PropertyHunter.com.my

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

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*Listing are accurate at the time of print. Kindly contact the respective agents for updates.

For more real estate listings, please visit www.propertyhunter.com.my www.PropertyHunter.com.my

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

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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

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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

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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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