Issue 86 - Feb 2017

EAST MALAYSIA’S LEADING PROPERTY PORTAL, MAGAZINE & EXPO

TOP 10 HOT TOPIC

MOST SEARCHED PROPERTIES IN KK

WHEN TO BUY A HOUSE? State Of The Housing Market

PH APPreciation NIGHT And So, The Adventure Begins!

Work-Out Your Rental Budget Consumer Sentiment

to Improve in 2017

ISSUE 86 RM9.50 (Inc GST)

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CONTENTS PROPERTY SHOWCASE | 08

Welcome to The Met Corporate Towers Experience The New Business Class

hot topic | 18

Consumer Sentiment to Improve in 2017

HOT TOPIC | 22

TOP 10 MOST SEARCHED PROPERTIES IN KK

PROPERTY SHOWCASE | 30

GM City : The Latest Instalment TO Grand Merdeka

HOT TOPIC | 34

The Multifacetedness Of The Sharing Economy Do Homestay Networks Like Airbnb Have What It Takes To Survive?

FEATURED EVENT | 38

MIEA Social Nite 2016

FEATURED EVENT | 40

PH APPreciation NIGHT And So, The Adventure Begins!

FEATURED EVENT | 44

MIEA Sarawak to Build More Affordable Housing

INTERVIEW | 46 FEATURED EVENT | 52 hot topic | 58 CONTRIBUTOR | 62

Ready, Set, Invest!

A chat with Kenny Wong & YK Hwong REAL ESTATE GETS REAL! An MIEA event DREAM IT. WISH IT. DO IT. The 4Ws and 1H in Financing Your Home Purchase

hot topic | 66

When to Buy a House?

hot topic | 72

Work-Out Your Rental Budget

hot topic | 76

USING SOCIAL MEDIA TO DRIVE UP YOUR PROPERTY’S RENTAL

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PROPERTY SHOWCASE

Welcome to The Met Corporate Towers EXPERIENCE THE NEW BUSINESS CLASS words by Property Hunter

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PROPERTY SHOWCASE

The Met is a product for today that is ready for tomorrow

Grand Lobby

Glass Box Function Hall

State-of-the-art Security

D

esigned as an answer to the

The first, if not only premium grade

is a space where people are more

question “what’s next?” for

strata office suites in KL Metropolis

motivated and more productive,

a premier business address,

and Mont Kiara boasts a brand new

comprising areas which cater to three

The Met is a business

3rd space concept that will appeal

distinct business communities – the new

destination that addresses the needs of

to multinationals, corporations,

generation and emergent businesses,

diverse corporate communities, young

professionals and millennials alike.

growing and medium-sized companies

or established, local or global, in the

The 3rd space is a departure from

and also large corporations and

heart of KL Metropolis, the new city

traditional office spaces in the way it

MNCs.

centre within 5km of the KL CBD. It

integrates personal and professional

will be where the world meets and its

spaces, promoting a high-performance

Housing these diverse communities in

visionary new concept redefines the

but balanced culture by blurring the

a common location requires solutions

new business class.

divide between work and play. It

for high functionality and not just from

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The Met Business Centre

the aspect of tailoring each work space to suit different needs. Especially for a strata development, the spatial characteristics, featured facilities and individual components must be versatile yet uniformed in their offerings to ensure a positive relationship and cohabitation amongst members of these dynamic communities. The Met fulfills these possibilities holistically.

Professionally managed business and recreational facilities have also been carefully planned to cater to differing

The Met Business Centre

demands. For example, the needs of smaller businesses that require additional meeting areas will be met in the common meeting room facilities, medium-sized companies will find the extended boardrooms and seminar rooms highly beneficial, while larger MNCs will be able to enjoy the maximized capacity of the auditorium and the glass box function hall. and etc will definitely be an added feature to integrate the diverse business needs.

Office Interior With Panoramic Views

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PROPERTY SHOWCASE

The KL Metropolis Development Master Plan is the flagship component for the growth of the northern district of Kuala Lumpur

With the pioneering 3rd space concept, and improved space utilisation and efficiency, The Met is ready for today’s corporate needs and that of millennials. From careful planning to ensure Fibre Optic readiness, WIFI in common areas, and charging stations for electric/ hybrid cars, to technical specifications such as generous 3.6-metre high ceilings for every office units, 23 passenger lifts, and a grand 10-metre ceiling height lobby; The Met will be a true home for business at KL Metropolis.

In short, when it is the pride of the developer, it is the dream for investors!

For more information, kindly contact Property Hub (Sabah) Sdn Bhd, 017.7467.118 (Mr. Khoo).

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The Met At A Glance Project By

Triterra Metropolis Sdn Bhd

Exhibition Centre (MITEC), the new MITI headquarters and MATRADE building.

Project Name

The Met

Immediately adjacent to KL Metropolis is Solaris Dutamas (popularly known

Property Type

Commercial Office Tower

as Publika) and other landmarks such as Solaris Mont’ Kiara, the KL High

Land Area

2.47 Acres

Courts, Syariah Courts, the National Archive, Masjid Wilayah Persekutuan,

Tenure

Leasehold 99 Years

Inland Revenue Board and the National Registration Department service centre

Unit / Lot Type Range

16,104 sf

nearby.

Unit / Lot Types & Build-up

Expected Completion Date : Q1 2020

Tower A •

Levels 10 – 25 818 sf – 2,584 sf

•

Level 26 – 31 3,606 sf – 4,231 sf

•

Level 32 – 39 8,500 sf - 16,104 sf

Tower B •

Levels: All

915 - 2,368 sf

For more information, visit our sales gallery at Suite L-06-05, Solaris Mont Kiara, No.2 Jalan Solaris,

Total Units / Lots & Block / Levels

Mont Kiara, 50480 Kuala Lumpur.

Total Units : 488 units Total Carpark Bays : 1,208 bays Total Motorcycle Bays : 300 bays

Marketing Agency:

3rd Space Features : Business Centre, Business Theatre & Auditorium, Glass Box Function Hall, HIIT Gym & Recreational Centre, Private Locker & Changing Room, Integrated Landscape Area.

Main Attractions, Public Transports and Amenities Nearby: The subject land of 2.5 acres occupies one of the highest points of the 75-acre master development, KL Metropolis, within which is located the spanking

Property Hub (Sabah) Sdn Bhd Unit 1.5, 1st Floor, Wisma Milenia, 3 1/2 Jalan Tuaran, 88400 Kota Kinabalu, Sabah.

Mr. Khoo : 017 746 7118

newly completed one million square feet Malaysia International Trade and

LEGEND

MINUTES FROM EVERYWHERE

EXISTING KTM LINE

PROPOSED MRT 3 LINE

PROPOSED DIRECT LINK TO DUKE 3

PROPOSED LINK TO JALAN KUCHING

PROPOSED UPGRADED ACCESS ROADS

SENTUL KEPONG

6 km

4 km

2 km

SEGAMBUT

KL METROPOLIS

MONT’ KIARA

HARTAMAS

SOLARIS DUTAMAS

ADMINISTRATIVE OFFICES

KLCC

BUKIT TUNKU

DAMANSARA HEIGHTS

BANGSAR

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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

Criticism on TAED Premature and Unfair, Says Mayor Those bent on criticising

Kinabalu City Hall and the

the Tanjung Aru Eco

public consultation will be

Development (TAED) and

conducted soon.

SB

predicting its failure are doing so prematurely and

At the same time, he said

unfairly.

the Special Environment Impact Assessment (SEIA) had

”Why the doom and gloom?

also been submitted to the

Why the suspicion? It is almost

Department of Environment

as if some wish for the project

for its approval, adding that

to fail,” said Mayor Datuk

members of the public could

Yeo Boon Hai in a recent

give their feedback through

statement.

the department.

He also commented that

Transparency on TAED is

some reacted to the

clearly demonstrated in the

development as if the

set up of an Information

government is completely

Center at Perdana Park for

incompetent and will bulldoze

public viewing of the project.

Master plan of the TAED development

Boon Hai said the premature criticisms and speculations have not only led some

through the project without an EIA, adherence to by-

“The response and feedback

laws, development plans and

have been very positive

simply sideline public interest.

and the general feedback job opportunities for their

that the master plan for the

children and will have a

Tanjung Aru Eco Development

positive impact to Kota

(TAED) has already been

Kinabalu,” he said.

The State Capital will soon

Government but the many renowned experts in a wide engaged.

The TAED development, when completed, is expected to benefit the wider community which includes giving job opportunities, improved tourism facilities as well as better recreation facilities for the people of Sabah, said Yeo.

“Worst still, some have resorted to scaremongering that has led to public fear and even distaste for the project.

submitted to the Kota

KK to See a New 360-Degrees Watchtower

and credibility of the State

array of fields that have been

is that TAED will bring many Yeo said it was announced

to question the integrity

This is highly unfair,” he said.

SB

parking for vehicles.

have a new tourism attraction in the form of an observatory

This was revealed by Chia

station atop signal Hill to be

Chun Keong, president of

called KK360 Degrees.

the NGO Heritage Sabah at a recent PAM gathering,

As the name indicates, visitors

“Archilab – Conserving

would be able to enjoy a

Heritage KK, Design Series

panoramic 360-degree view

No. 8”.

of the city and surround landscape with a cable slide

According to Chia, the existing

ride down to the Kota Kinabalu

observatory was built in the

Wetlands Park.

late 80’s and is considered

Signal Hill observatory

as one of the city’s heritage

of the city and its surrounding

sheets of glass that just several

structures.

areas.

metres out which offers

years ago with a new car park

No doubt Signal Hill provides

However, it is not known

to be built as the existing

the best vantage point for

whether the design would

observatory lacks adequate

enjoying a breath-taking view

incorporate a glass skywalk –

The idea was mooted by the State Tourism Ministry two

a unique and memorable experience.

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NEWS

Harrington Suites Topping Up Ceremony

SB

On 5th September 2016,

in accordance with the

directors, consultants,

Green Building Index

contractors, employees and

compliances. From the

construction workers of

rainwater harvesting system

Harrington Suites witnessed

to the highly insulated three-

the topping up ceremony

layer-double-glazed with

of their brainchild. Cheers

low E glass and thermal

filled the air as they saw

break aluminium frame to

the crane pulling up the

promote energy efficiency,

last batch of concrete up

these resources and energy

to its last floor, marking

saving features have put

its completion of the

Harrington on the map for

development structure.

a truly sustainable premier condominium living few

Harrington Suites was

others can match.

awarded “Best Condominium Malaysia” at the Asia Pacific

Ir Peter Chu, Interland

Property Awards in the

Properties Sdn Bhd CEO,

Shangri-La Hotel, Kuala

said: “Good building

Lumpur, on the 8th of April

management will increase

2016.

the value of the property directly or indirectly. We

The property consists of an

will endeavour to organise

independent elevator to the

a team of experienced,

lobby of each 116 units - with

trustworthy and strong

only five residential units on

executive management

each level. This 30-storey

team, implement a higher

luxury apartment comes at

level of standard operation

an average price from RM800

procedures (SOP), to ensure

psf.

a focus on individual owners

Harrington Suites is the first ever residential project

and administer daily affairs and problems properly”.

Group photo. Chu: The company will continue to strive for excellence in quality and efficiency

As part of its corporate social

in the property market, the

welfare, Interland Properties

company remains confident

Sdn Bhd will upgrade and

in the future prospects of

expand the roadside parking

the market and have several

spaces and build a new

new development projects in

concrete walkway along

mind.

the entire road pergola to facilitate the Sri Gaya School

Interland Properties Sdn.

students and parents. Chu

Bhd. Chief Executive Officer

said the public welfare

Ir. Peter Chu and volunteers

project to upgrade the road

of the project vowed to

infrastructure surrounding

continue the noble mission

the area will help relieve

to enhance the lives of

traffic, especially during

new higher-level setting.

peak hours. The upgrade is

Ir. Peter Chu also said that

expected to be completed in

“the company will continue

mid-January.

to strive for excellence in quality and efficiency of the

Harrington Suites obtained

corporate philosophy ‘in one

sales from buyers and has

go’ (do things right the first

since achieved 80% of sales.

time).”

Despite the current weakness

to be rated Gold Standard

S P Setia to Launch More Projects in Melbourne It was a cool, sunny spring

2015 Global Liveability Index

morning in Melbourne in the

for the sixth year running,

middle of last month when

reaffirms S P Setia’s strategy in

S P Setia Bhd hosted the

expanding to Australia and in

ceremony for the completion

particular in Melbourne.

IN

of Parque Melbourne, its third residential project

“We have acquired another

there. Parque was launched

three sites — in Carnegie,

in 2013 and the 332-unit

where we just launched

block was sold out in three

48 low-rise apartments in

months.

August called MAISON, a

Guests at the opening ceremony of Parque

site in Prahran and a much-

to me and said they are

Australia, thanks to (S P Setia

In his speech, S P Setia

anticipated site in Exhibition

happy with the product. That

Melbourne CEO) Choong Kai

chairman Tan Sri Wan

Street,” he said.

is very good to hear. As far

Wai and his good rapport with

as S P Setia is concerned,

the people here.”

Mohd Zahid Wan Noordin said Melbourne, which was

After the ceremony, Wan

awarded the top city in The

Mohd Zahid told Malaysian

Economist Intelligence Unit’s

media, “I was pleased when a few purchasers came up

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quality is very important.

Demand has been good. We

The developer is building its

plan to make many forays in

reputation for timeliness and efficiency.

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HOT TOPIC

Consumer Sentiment

2017 to Improve in

words by Property Hunter

1. PropertyGuru, Malaysia’s number one property portal reveals 10% jump in consumer positivity as home buyers accept pricing realities and re-adjust strategies for 2017.

2. 58% intending to buy property within the next six months, 38% to buy from property developers rather than secondary market.

3. However, ineligibility to qualify for loans and inability to fork out for downpayment and other fees will remain key stumbling blocks for many aspiring homeowners.

W

hile Year 2017 is likely to be another sluggish year for the Malaysian property sector, PropertyGuru.com.my – Malaysia’s number one property portal revealed that 2017 will see a continued trend of improving consumer

sentiment with more Malaysians looking to buy homes this year.

PropertyGuru’s recent Consumer Sentiment Survey – conducted at the end of 2016, indicated that up to 38% of consumers expressed overall satisfaction with the property market – a 10% increase from the 28% recorded in the first half of 2016 (1H 2016) and 13% more than 25% measured during the second half of 2015 (2H 2015).

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HOT TOPIC

The PropertyGuru Consumer Sentiment Survey also showed that 58% of consumers would like to buy a home within the first six months of 2017 either for their own stay or for investment purposes.

About 38% will choose to buy brand new homes while 15% would opt for the secondary market.

“Since 2015, consumers have begun to accept that prices are unlikely to crash like in 1997 or 2008. In fact, with new game-changers such as the MRT lines and Transit Oriented Developments (“TOD”), property prices will remain stable or continue to appreciate, albeit at a more moderate pace. Hence, consumers are now having more realistic expectations and adjusting to conditions accordingly,” shared PropertyGuru Malaysia Country Manager, Sheldon Fernandez.

Fernandez explained further that in accepting market conditions, potential homeowners are now looking to buy at locations further away from the city, but with good transportation infrastructure, or choosing smaller units in the city centre or other urban locations. This indicates the emergence of new

“But while they wish to buy, consumers are still concerned about many factors. This includes overall home prices which are perceived to be expensive“

Satisfaction with Real Estate Climate Overall Satisfied H2 16

21

15

H2 15

20

Q1 13

23

21

24

26

15

0 to 2

3 to 4

5

9

28% 23%

22

10

32%

22

10

32%

24

6 to 7

38%

7

24

22

12

18

26

23

20

Q2 13

22

23

22

19

24

26

19

Q4 13

26

26

27

H1 15 H1 14

26

13

11

8 to 10

Figure 1 1: EXTRACT FROM THE ROPERTYGURU CONSUMER SENTIMENT SURVEY INDICATING IMPROVING CONSUMER SENTIMENT

Figure 1. 1: Extract From The Propertyguru Consumer Sentiment Survey Indicating Improving Consumer Sentiment

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37% 35%

property hotspots in the suburban areas of Selangor – between 20-40km from the city centre.

“But while they wish to buy, consumers are still concerned about many factors.

This includes overall home prices which are perceived to be expensive. In fact, high property prices remain the primary concern for potential homeowners (59%)

The issue of unaffordability is further exacerbated by rising living costs, salary increments that are not on par with increasing expenses and difficulties in qualifying for home loans.

followed by “timing”1 (44%) and inability to secure loans and upfront capital for the initial downpayment (39%).

Consumers Say Home Prices Still Pricey The newly introduced PropertyGuru Affordability Sentiment Index (“PASI”)2 showed a low score of 37 points; indicating that despite the market downturn, almost two thirds of consumers have expressed discontent

Home Loans Vital for the Property Market

with house prices despite the deluge

With 97% of those polled stating they

of discounts and home ownership

require a home loan to finance their

packages offered by developers.

purchases and 88% hoping to obtain 80%-100% financing, the role of financing

The issue of unaffordability is further

remains a vital component to the real

exacerbated by rising living costs, salary

estate sector. 48% of respondents also

increments that are not on par with

felt loan interest rates were too high.

increasing expenses and difficulties in qualifying for home loans.

“PropertyGuru has always stressed that financing is a key component that needs

Given this overall scenario, home

to be reviewed further. Most Malaysians

ownership in 2017 will continue to be a

will not be able to own a home without

challenge for many Malaysians, especially

financing. We have proposed some

those who come under the Generation Y

measures to assist the middle-income

demographic bracket.

buyers or the M40 Group. These include

tenures to 40 years, where possible.

These measures can be allowed specifically for those purchasing a firsttime home priced between RM350,000RM500,000,” explained Fernandez.

The PropertyGuru Consumer Sentiment Survey measures property sentiment and expectations amongst Malaysians with regards to the local property market. It polled 1013 respondents online. Similar surveys are carried out concurrently in Singapore, Thailand and Indonesia. The goal of the Survey is to help consumers gain an insight into the local property market to make better business and buying decisions. The survey was conducted in collaboration with Intuit Research Consultants, a wellrespected international research agency.

relooking interest rates, assessing loan eligibility based on gross income (and not nett income) and extension of loan

1.

Timing: i.e. prevailing sluggish market conditions

2.

The PropertyGuru Affordability Sentiment Index derives its score from a basket of factors which include current real estate satisfaction, current real estate climate, financing interest rates, value for money ratings, perceived government effort and expected property prices in the next 1-5 years. www.PropertyHunter.com.my

21

HOT TOPIC

TOP 10 MOST SEARCHED PROPERTIES IN KK Owning a home is a keystone of both financial affluence and emotional security. There are a lot of property investment opportunities in Sabah. Be persistent to learn, differentiate and evaluate the risks and returns. Happy investing!

words by Property Hunter

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C

ondominiums and terraced houses are the most popular choices for residential living in KK. We’ve narrowed them down to five of the most searched in each category to give you a brief view of what makes these properties so sought after.

The Kepayan and Penampang areas are amongst the few family-oriented areas which are being developed over the years. Landed houses and beautiful condominiums have been erected in these areas to boost the lifestyle and atmosphere just outside of the city centre.

In recent years, due to rapid economic boom and its proximity to Kota Kinabalu, Kepayan and Penampang have observed a rapid growth in the secondary and tertiary sectors of economy.

Kepayan is considered as one of the fastdeveloping areas both in commercial and residential developments. This matured suburb adopts many accessible conveniences and good eateries within reach.

Today Penampang strives as one of the major industrial and commercial centres within the greater Kota Kinabalu area. Many retail stores are found scattered in the district primarily in the Donggongon area, anywhere along Penampang Lama Road and Penampang-KK Bypass Road.

Here are the top 10 most searched properties in KK in 2016.

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HOT TOPIC

CONDOMINIUM LIDO FOUR SEASONS A stylish collection of 840 elegant modern units for the urban family. The residence enjoys a prime location in the mature neighbourhood of Kepayan and Penampang, situated towards Jalan Lintas.

It is just minutes away from the Kota Kinabalu International Airport and the hustling city centre.

Amenities

SURIAN RESIDENCES Surian Residences is located along Jalan Kepayan Kobusak in Kota Kinabalu, Sabah.

This is a leasehold low density condominium development offering just 176 units in two 12-storey towers.

Amenities

GRACE GARDEN (DUPLEX) Located opposite Sutera Harbour Resort, in between Harbour City Commercials and Grace Point food court, this development is minutes away from the city centre and all its conveniences – Gleneagles Hospital, Imago Shopping Mall, KK Times Square, Gaya Street, to name a few.

Properties in the city are comparatively expensive but being in the heart of the KK CBD, this development has good value for money. For less than RM1 million, one can get a sizable duplex unit as compared to a condo unit that is smaller but with the same price tag.

Amenities

TROPICANA LANDMARK Located in Bundusan beside Fairway Mansion Condominium, this development boasts a spectacular golf view (Sabah Golf and Country Club). It is also a walking distance away from Bukit Padang recreation park and few schools. This low-density development only houses 149 units.

Amenities

THE LIGHT RESIDENCE This 22-storey high-end condominium development is situated adjacent to the Penampang By-pass, boasting a great view of the Penampang countryside. Nestled in the peaceful greenery of the City’s prime Penampang district, it offers both serenity and convenience. The development is also just minutes away from KKIA and Kota Kinabalu City Centre.

Other notable specialties of this development is that all units are corner lots, with ample of natural lighting and ventilation, as well as each unit receiving 2 parking lots located in between levels 1 to 3.

Amenities

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TERRACED / LINK HOUSES TAMAN KEPAYAN PHASE 3A (Kepayan) Located within 10 minutes radius drive to KK City Centre, KKIA/Terminal 2, Lintas, Luyang and Damai, this neighbourhood is suitable for families.

Amenities

TAMAN PUTRA POGUN (Penampang) This contemporary terraced property boasts about an 18.5ft high stairwell for the 2-storey terrace unit, a spacious 22ft wide frontage for all terrace villas and a mind-blowing 30ft for its 3-storey link bungalow.

Its winning location to good accessibility and unmatched hilly fresh air of Penampang makes this development a family favourite.

Amenities

TAMAN KINAMOUNT (Luyang) This 2-storey leasehold terraced house is located in a mature residential township in Luyang.

The standard unit has a land area of about 3,550sq ft with a built up area of around 1,876sq ft.

It is suitable for those who are looking to build a family home.

Amenities-wise, it is close to the basic necessities from schools, hospitals and convenience stores.

Amenities

TAMAN FOH SANG (Luyang) This is one of the busiest suburbs with only 3 rows of shops selling almost everything from coffee shops to fruit stalls. It is a 15 minutes drive to the KK City Centre and a few minutes drive to Damai, Lintas and Penampang.

Amenities

GRACE COTTAGE (Kepayan) This newly developed 2-storey terraced house is a few minutes drive to Kota Kinabalu International Airport and KK City Centre.

Located in a prime location of Kepayan, it is within easy access to all the basic necessities.

Amenities

Disclaimer: All information provided are accurate at the time of publication. www.PropertyHunter.com.my

25

NEWS

Early Planning for High Capacity Transportation DBKK’s Traffic and Public

“We don’t want to wait five

Transport Department

more years to say that high

director Kalvin Liaw sees

capacity transport is suitable

the need for plans towards

for Sabah. If we only build it

creating a high capacity

10 to 15 years from now, it

public transport such as

may be too late,” he added.

SB

the Light Rail Transit (LRT), Monorail or Tram in the city,

Kalvin said statistics from

apart from the development

the Malaysian Statistics

of the Bus Rapid Transit.

Department indicated the population of Greater Kota

He said high capacity

Kinabalu (including Kota

transport facilities need

Kinabalu, Tuaran, Penampang,

to be planned early as the

Putatan and Papar) in 2000

population is growing.

An example of a Light Rail Transit. (Photo: Metrolink. Used for illustration only)

population growth of 2.5

He said the state government

percent, it is estimated

yearned for upgraded

was 686,474.

that Greater KK will have

city public transport and

a population of about 1.1

improved traffic flow in the

“Looking in terms of

“The total population in Kota

million by 2020.

central business district.

population, maybe we have

Kinabalu’s metropolitan areas

not reached (the capacity to

and neighbouring towns have

Kalvin said the state

“We hope these efforts and

allow LRT and Monorail) but

increased to 855,556 in 2010,”

government fully backed the

plans will improve the road

five years from now we will

he stated.

transportation plans as it

and public transport system in

would be able to transform

Sabah,” he added.

Based on the average

the city of Kota Kinabalu.

have the sufficient capacity.”

Construction of Four Main Terminals

SB

Four main terminals were

All bus services from the

listed under the Kota

North Zone will terminate at

Kinabalu Public Transport

the Inanam Terminal; buses

Kalvin hoped

Master Plan, namely the

from Lawas-Menumbuk-

for a paradigm

Wawasan Terminal, Inanam

Sipitang will end at the South

shift among

Terminal, Selatan Terminal

Zone; while services from

bus operators

and Penampang Terminal,

Tambunan-Keningau-Tenom

in order to

according to DBKK’s Traffic

stop at the Penampang

improve their

and Public Transport

Terminal.

services to be at par with bus

Department director Kalvin Liaw.

near KKIA.

Bus services within the city

services at the

will go through the four

four terminals.

The development will feature

terminal including other areas

an integrated bus terminal

such as Likas, Kepayan and

“Once the terminal is ready,

concept for public transport

Kolombong to make it easy for

only then we will arrange the

connecting Kota Kinabalu to

users to get buses according

buses,” he added.

other districts with smoother,

to schedule.

timely and enjoyable service

Kalvin said based on DBKK’s

According to Kalvin, the

public transport master plan,

Wawasan Terminal developed

a Rapid Transit Bus (BRT)

Besides being user-friendly

with the cooperation of

will be developed and the

and safe, the integrated bus

the private sector is under

project implementation will

terminal will also include other

construction while the Inanam

be handled by Prasarana

public transport facilities

Terminal would be upgraded

Malaysia Berhad.

such as taxis, parking lots

with more modern elements.

and facilities for commercial

The Selatan Terminal was

activities.

proposed for construction

for users.

26

www.PropertyHunter.com.my

The project is expected to be completed and begin

Aerial view of the Wawasan bus terminal

operating at least by 2022, he added.

“Proposal papers have been submitted to the federal government and also brought to the attention of the state government. We are now just waiting for a decision on implementation,” he explained.

Kalvin hoped that the construction work could start next year and completed on schedule. He also hoped that all parties would support the plans.

www.PropertyHunter.com.my

27

NEWS

Is Now the Right Time to Invest in Singapore?

IN

While Singapore has long been South East Asia’s biggest success story (with property prices to match), the current climate poses another, less rosy picture.

With a declining economy and fears of a recession in the air, real estate values have hit new lows, and record numbers of agents are turning their backs on the business entirely. The downturn may seem sudden to some, but for those keeping a beady eye on things, this was to be expected.

“Singapore is at a crossroads at this point,” says Dan Toh, founder and CEO of consulting firm RunningStream International. “The country is facing new challenges that require it to innovate its way through the rise of ASEAN and a very different world economic landscape due to globalisation.”

Singapore has achieved phenomenal economic progress over the last 50 years. However, as a country reliant on outside

Singapore has achieved phenomenal economic progress over the last 50 years

resources, its continued

time to be investment hunting

where it is non-viable,” he says.

success depends on a great

in Singapore,” Toh says. “That

“Given the current economic

many factors outside its

said, Singapore will remain a

challenges I suspect the

immediate control.

key player in ASEAN and will

government will be happy to

continue to serve as a base

let the prices fall to increase

The cooling measures may

for many businesses. The

the country’s competitiveness,

have effectively moderated

property market will certainly

and unless business

price growth. Singapore

not crash.”

conditions improve, I wouldn’t

is seeing a drastic fall in

see the motivation to let prices

transactions and rental

In terms of the kind of

demand as the country

properties investors should

becomes less attractive

consider, two bedrooms allow

“The country’s track record

both in terms of costs and

for the best growth potential

should inspire some amount

infrastructural advantages

and balanced yield, Toh

of investor confidence.

for business. Fewer jobs and

advises. Buyers should only

Singapore will remain a key

fewer foreigners equate to less

consider buying now if they

market, but for its property

overall demand, especially in

are wanting to live in – buying

to boom again, we will need

the luxury segment.

a rental property would not be

to see some major new

wise given the current outlook.

directions. Only when that

“Increasing unemployment

happens would I be keen to

and a weak rental market

“Currently, Singapore prices

mean that now is not the best

have escalated to a point

Razed Kudat Shop Building to Be Rebuilt

rise again just yet.”

call a property bull market.

SB

Minister of Special Tasks

Leader (PPM) Datuk Peter

Datuk Teo Chee Kang has

Chin and liaison secretary to

vowed to assist owners and

the minister, Albert Kok.

operators who lost their shops and businesses in a

Teo said he would assist the

fire that destroyed a block

owners and operators in

of two-storey wooden shop

rebuilding the shops so that

building at Tamanggong

they could resume business.

Kurantud recently.

He also presented financial

Teo, who is also Tanjong

aid to the owners and shop

Kapor Assemblyman,

operators affected by the fire.

inspected the damage along with Tanjong Kapor Community Development

28

www.PropertyHunter.com.my

Kudat town centre

On another note, Teo also said he would facilitate

allocation to repair the damaged Kudat Marina.

Construction Players, Contractors to Benefit From PR1MA RHB Research Institute

material incentive or cooling

Sdn Bhd (RHB Research)

measures was unveiled aside

expects the government’s

from the hike in stamp duty

affordable housing or

rate for properties costing

1Malaysia People’s Housing

above RM1 million (effective

programme (PR1MA)

from 1 January 2018).

SB

to primarily benefit construction players and

In addition to PR1MA, the

contractors, on the back of

government also allocated

increasing job flow.

lands for affordable housing developments to government-

O&C Resources Bhd (O&C)

linked companies.

has been identified as one of the stocks with significant

“Apart from the supply side,

exposure to government

the government has also

affordable housing.

assisted the end-financing scheme so that access to

“The company has bagged

credit financing is available

a few housing jobs from the

to the lower-income group,

government over the last few

which typically experiences

months,” said the research

difficulties in obtaining loans,”

house.

said RHB Research.

Set to be this year’s focus,

Meanwhile, CIMB Research

affordable housing was

expects the property market

the only key subject on the

to see a positive spillover

property market mentioned

effect from the potential influx

in Budget 2017, in which no

of mainland Chinese buyers.

In addition to PR1MA, the government also allocated lands for affordable housing developments to government-linked companies

In the last two to three years,

But since these buyers would

the research house noted

likely buy from Chinese

that more Chinese companies

developers with a presence

have ventured into Malaysia’s

in Malaysia, the initial impact

property, construction,

may not be positive for local

infrastructure and power

developers until such buyers

sectors.

have become more aware of

“We believe it is a matter of time before the Chinese

“However, overall property

become key buyers in

transaction volume and

our property market. The

prices for the country may be

prolonged weakness in ringgit

supported as a result,” added

could potentially be a pull

CIMB Research.

factor as well,” it said.

1 Sulaman Investors Win Legal Suit Against Insolvency Dept On 9th January, investors

The 1 Sulaman Platinum and

who invested in the doomed

Gold Tower Buyers’ Action

1 Sulaman project have won

Committee was set up in

the Proof of Debt (POD)

April last year to follow up on

legal suit against insolvency.

the progress of the project.

Investors can now submit

Currently, there are about

their lodges to the Insolvency

800 members in the group.

the local brands.

SB

Department. However, there is a RM3.00 charge for

Investors are encouraged

making the said lodge.

to submit their Liquidation Damages (LAD) lodge as

The construction of

soon as possible. Failure

1 Sulaman started in

to do so may result in the

2009 and the first tower,

following: -

Platinum tower, was slated to be completed by 2012.

However, construction has stopped since 2011. On 24th November 2016, the Ministry of Local Government and Housing declared the project abandoned.

1. Lose your rights to claim your condo unit.

2. Excluded from any voting right on the decision regarding the appointment of White Knight.

The abandoned 1 Sulaman project

3. Affect the decision of the

LAD claims is approximately

Judge on the Liquidator

RM28 million, meaning that

(if the LAD claims are

the Judge will rule in favour of

against the debtor,

the investors, provided that

Sagajuta, the Judge will

ALL who have invested in this

rule in favour of the

project submit their POD.

investors).

Good news is that so far, the www.PropertyHunter.com.my

29

1 Property Showcase

GM City : The Latest Instalment TO Grand Merdeka words by Property Hunter

S

Turning the Northern Corridor of Kota Kinabalu into a more self-sustaining satellite city with a mixed development that features the five natural elements.

ituated on a 19-acre prime

(wood element), Permata Tower (metal

One of the directors of Grand Merdeka,

land along Tuaran Road, GM

element), The Phoenix (fire element),

Mr Chew Sang Hai, has emphasized that

City is the latest addition to

which sits on top of a 4-storey of retail

due to softer market sentiment and

Grand Merdeka’s project

and shopping mall called The Hive (earth

stringent loan approval process, GM City

which aims to change the

element).

will be implemented in 3 phases.

landmark of KK Northern Corridor into a more self-sustaining satellite city. One of the main features of GM City is a familyoriented water theme park. A variety of fun-filled rides and attractions such as an active river, racer slides, wave pool and so on makes GM City a perfect location for a day of outdoor family fun.

This project features a mixed development product which captures a unique design and concept of the five natural elements. Such exceptional addition would bring about four towers of business haven, namely, Embun Tower (water element), The Oak3

30

www.PropertyHunter.com.my

2

3

Phase 1 will consist of Embun Tower and The Oak3, Phase 2 will consist of Permata Tower and The Phoenix, and The Hive and water theme park would be the last phase. The expected construction work for Phase 1 would kick-in by the end of 2017.

Mr Chew believes that there is still a strong and lucrative demand in the market. Hence, the first business haven tower - Embun Tower was introduced and launched at RM238,000 onwards per unit at the SHAREDA PROPEX 2016.

This tower consists of 3 types of unit and with an additional feature of dual-key concept. Mr Chew

4

recognized the viability of dual-key concept as it has already gained its momentum 3 years ago in Malaysia. It is expected that with a lower entry level of investment, it would encourage many investors to purchase the units, as it would lead to higher yield of return. The development is aimed at the middle-income household. Mr Chew explains that the GM City would be an additional investment opportunity to younger generations and also to newlywed couples.

Looking at the location of the development, it surely has a winning edge as it is located next to Tuaran Road and adjacent to GM Mall, which is expecting its Occupation Certificate (OC) in February 2017 and opening by June 2017. This will provide a 5

greater accessibility and convenience to the public.

In a nutshell, Grand Merdeka is a conducive and integrated development at its best, and it would a worthwhile investment.

1. GM Mall fascade day view

2. An artist impression of GM City fascade

4. GM City Water Theme Park

3. GM site plan

5. GM Mall night view

www.PropertyHunter.com.my

31

NEWS

KK to Become Livable City by 2022

SB

The Kota Kinabalu City Hall

plans aimed to improve the

(DBKK) is optimistic that

city’s image, which is the

Kota Kinabalu will become a

centre of attraction for local

livable city by 2022.

and foreign tourists, as a firstclass city.

Two master plans, namely the Kota Kinabalu Public

Kalvin said the first phase

Transport Master Plan and

of the Kota Kinabalu Public

the Traffic Improvement and

Transport Master Plan, which

Urban Transport Master Plan

was outlined in 2012, would

for Kota Kinabalu Central

focus on upgrading and

Business District (CBD), will

improving the public bus

help make it possible.

system.

It includes providing a more

The plan covers upgrading

systematic and efficient

the route and bus schedules,

public transport system which

besides creating an integrated

begins from the Kota Kinabalu

public transport from one

International Airport (KKIA),

integrated terminal.“We

apart from ensuring smooth

want a more comprehensive

traffic flow.

public transport network

Kota Kinabalu CBD

routes only,” he added.

system and coverage that is DBKK’s Traffic and Public

easily accessible to residents,

Transport Department

without bus operators

director Kalvin Liaw said both

needing to choose profitable

enforcement of the bus schedule is under the

Therefore, an integrated

jurisdiction of the Sabah

bus terminal is the main

Commercial Vehicle Licensing

component that needs to

Board (LPKP), he pointed out.

be completed first as Kota Kinabalu does not yet have

However, Kalvin hoped all bus

an infrastructure that can

companies would be open to

connect intercity and city

the proposed changes and

buses.

follow procedures so as to provide the best service to city

Furthermore, the role

folks.

of coordination and

Generation Y Most Affected by Lack of Affordable Housing The lack of affordable housing in the

lower rents due to external factors

market has mostly affected the mid-

like the slump in the oil and gas

income mass market segment or those

industry, which resulted to expats

in Generation Y, said Sheldon Fernandez,

leaving many vacant units within the

country manager at PropertyGuru

city centre.

WM

Malaysia.

To keep prices low and within the Accounting for 38 percent of the

reach of Generation Y and first-time

population, those in Generation Y are the

homebuyers, property developers

ones likely to find their dreams of owning

build smaller units within the city

a house dashed.

centre and other urban centres that are priced from RM300,000 to RM500,000.

Nonetheless, the market still has its bright

Unit sizes range between 450 sq ft and

spots with the rental market expected to

850 sq ft, said Fernandez.

remain robust driven by the increasing pool of aspiring first-time homeowners

The Selangor Housing and Property Board

who in deferring their home-buying

(LPHS) has capped the price for affordable

decision, will turn to the rental market

small office versatile offices (SOVOs), small

“to provide a roof over their heads while

office flexi offices (SOFOs) and small office

continuing to save for their future home,”

home offices (SOHOs) at RM230,000, while

said Fernandez.

that of serviced apartments at RM270,000.

“It is likely that rentals may increase or

As buyers look to finance their

remain stable but this will depend on the

acquisitions, Fernandez expects to see

location of the property per se,” he added.

withdrawals from the Employee Provident Fund (EPF) to increase, both in value and

Higher-end rental properties may see

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www.PropertyHunter.com.my

number, next year.

The lack of affordable housing in the market has mostly affected the mid-income mass market segment or those in Generation Y

In fact, he expects the property market to remain sluggish in 2017, on the back of the unresolved issues of unaffordability, high loan rejections and other macroeconomic issues.

“Homes priced between the RM500,001 to RM700,000 range are likely to see the most number of loan rejections and thence slower sales,” added Fernandez.

www.PropertyHunter.com.my

33

34

www.PropertyHunter.com.my

HOT TOPIC

The Multifacetedness Of The Sharing Economy Do homestay networks like Airbnb have what it takes to survive? words by Property Hunter

O

f late, the world is

Founded in 2008 and

invaded by a rapidly-

headquartered in San Francisco,

emerging, high-

California, Airbnb is a privately-

flexibility economic

owned and operated homestay

model, known as the

network that caters to people

‘shareconomy’ (sharing economy)

who are interested in listing their

concept. Also known as ‘peer-to-

short-term lodging in residential

peer’, ‘collaborative consumption’,

properties -- with the rate being set

‘peer economy’ and so on, this

by the property owners -- as well

business model is basically a

as people interested in looking for

decentralized model wherein two

short-term properties to rent. The

individuals (the buyer and seller)

company will then receive a certain

interact to buy and sell goods and

percentage of service fees from

services directly with each other.

both the guest and the host with

This economic model eliminates the

every successful booking made. To

roles of the intermediary third party,

date, Airbnb has over two million

company or business.

listings in 34,000 cities in over 191 countries.

This hybrid market model is essentially facilitated by community-

Somewhat similar to Airbnb,

based online services, in which

HomeAway, Inc. is a vacation

participants mutualize access to

rental marketplace that offers the

products or services, as opposed

most comprehensive selection of

to having individual ownership of

rentals for holidaymakers, ranging

the product or service. Excellent

from cabins, condos, castles, villas,

examples of thriving peer-to-peer

barns and farmhouses. Founded

model companies are Alibaba.com,

in 2005 with its headquarters in

Mudah.my and Uber. For property

Austin, Texas, HomeAway has more

rentals, Airbnb and HomeAway are

than one million vacation rental

two of the most successful peer-

listings in over 190 countries and

to-peer online marketplace and

operating through 40 websites in 22

homestay networks out there.

languages.

www.PropertyHunter.com.my

35

HOT TOPIC

Shareconomy And Its Roaring Success The success of the shareconomy model undoubtedly lies in its flexibility.

By making it easier to share resources on demand, this economic model increases its efficiency. The peerto-peer economic model allows participation without necessarily possessing properties and it creates boundless opportunities for others to extract wealth and create value from idle properties and/or talents.

Nonetheless, the shareconomy model relies heavily on technology for its very existence. Therefore, in some parts of the world where internet access is still quite limited, the peerto-peer economy model may still be inapplicable.

One of the most obvious appeals of the shareconomy model is its costeffectiveness.

Online marketplaces and vacation rental hubs like Airbnb and HomeAway provides travellers with cheaper accommodation options that are personalised according to their budget, amenity needs, and personal preferences.

www.PropertyHunter.com.my

all, unlike letting out a property to a long-term tenant which requires a lot of thorough research and a more detailed contract, short-term rental means fewer-fuss and more straightforward business dealings.

At the same time, many peer-to-peer platforms have built-in ratings and reviews that help keep providers on their toes and consumers honest

For some participants, this also

about the quality of service they’ve

means making potential new contacts

received. Other aspects of the

through the property owners and

sharing economy model also help

vacationers. Sometimes, vacationers

build stronger communities. For

are offered free tours around the

instance, Airbnb has coordinated free

neighbourhood by their hosts, and

accommodations for people who are

for an outsider, having a local to show

affected by natural disasters, which

them around is definitely an added

helps build constructive relationships

bonus to any vacation.

in the most unique way possible.

In addition to cost-efficiency, the peerto-peer marketplace also provides opportunities for hosts to make extra income by letting out an idle property

36

or an extra room for rent. Best of

Then again, the downside‌

of profits by illegally renting out their

“

space for the short-term permanently.

Whilst Airbnb has been great in offering budget travellers more

options and flexibility in regards to

their chosen accommodations, the rest of the story is not so peachy.

The biggest problem with Airbnb is that it allows some hosts or landlords to take advantage of the cushier short-term rent by taking whole units off the rental market altogether and turning them into de-facto hotel rooms, sans paying the necessary hotel tax.

In some cases, the multi-unit buildings

are allocated for short-term rentals for

up to six months, making it unavailable

A 2015 research by the Los Angeles Alliance for a New Economy (LAANE) has shown that some of the people who use Airbnb are landlords renting out their units for the short-term, instead of as regular apartments.

According to LAANE, although only six percent of the property owners on Airbnb are renting out two or more units -- they still make 35 percent of the total revenue as the market monopolisers. Out of this number, 42 percent of the people renting a single unit are making 54 percent of the revenue, whilst the 52 percent who are renting out an extra room make just 11 per cent of all the Airbnb revenue in Los Angeles. In addition to this, other issues such as security and credibility are also legitimate causes of concern.

for long-term tenants.

Business Model of The Future Like any economic model, the peer-topeer economic model is a promising model with huge potential.

For travellers on a shoestring budget, the services offered by Airbnb and HomeAway may seem to be a godsend, making travelling a lot more affordable, accessible and practical; whilst giving hosts alike the winsome opportunity to host travellers and build friendships. Unfortunately, the same is also true for opportunistic property owners, to whom, the money-making prospects of these platforms are just impossible to resist. Here is where lawmakers play a significant role to maintain a healthy balance.

In the end, the overall success of a sharing economic model is reflected by its effectiveness in upholding a community.

In Berlin, Airbnb has been blamed for the ever-increasing rent. Such is also the case in

Los Angeles where unscrupulous

landlords indirectly contribute to the

city’s rising housing

crisis. This has urged

city officials to create a new housing law,

which bans regular short-term room

letting without prior

The success of the shareconomy model undoubtedly lies in its flexibility. By making it easier to share resources on demand, this economic model increases its efficiency

permission from the authorities.

The flexibility and

simplicity of Airbnb have also made it

so much easier for certain people to

make large amounts

www.PropertyHunter.com.my

37

FEATURED EVENT

MIEA Social Nite 2016 words by Property Hunter

Building fluid relationships and expanding connections with MIEA Youth Social Nite on Thursday, December 15 at Kuta Bistro, Waterfront.

From left: Winnie Ngo, Head of MIEA Youth, Richard Chong, Deputy Head, Bryan Chong, Professional Development, Henry Tai, MIEA Sabah Chairman, Erick Kho, MIEA President, TJ Wong, Treasurer, Joel Low, Social Director, Fiona Wong, Secretary, Abby Tan, Membership Growth Director and Donald Dunstan Wong, Immediate Past Chairman.

T

he purpose of organising

for the members below the age of 40

and members of young and dynamic

this social event was to bring

to meet, interact and network while

associates in MIEA Youth”.

together fellow estate agents

enabling them to conduct attractive

and negotiators in Sabah

activities.

“We believe by working closely together, we can make a better future for the real

and professionals involved in

the real estate industry, such as valuers,

MIEA Sabah Chairman, Mr Henry Tai,

bankers, lawyers and developers alike.

expressed his gratitude to those who

estate industry”, he added.

attended the social event last night. He

Also, present at the social event was

MIEA is the recognised body

added that developers, valuers, bankers,

MIEA President, Mr Erick Kho, immediate

representing all registered estate agents

lawyers and other affiliated partners

past MIEA Sabah Youth Head, Donald

in the country. MIEA Youth is a group

have been supportive of their events.

Wong and the new MIEA Youth committee members.

within MIEA that provides a platform “We are looking to grow the numbers

38

www.PropertyHunter.com.my

www.PropertyHunter.com.my

39

NEWS

FEATURED EVENT

PH APPreciation NIGHT

AND SO, THE ADVENTURE BEGINS! words by Property Hunter

12th January 2017 wasn’t just any ordinary day. Maxx Media, publisher for East Malaysia’s leading property magazine Property Hunter, threw their annual party at Plaza Shell to celebrate their accomplishments for 2016.

“2016 has not been an easy year. We

According to Kho, the event was also

were all plagued with the weakened

held to honour their supportive clients

ringgit, and the fall in consumer

who have contributed to the success

“We’ll continue to roll out new platforms

spending,” said Elson Kho, Director of

of the company and who have made

and find new ways of doing old things. In

Maxx Media.

a difference in their lives since their

March, we will be revamping our flagship

40

www.PropertyHunter.com.my

journey kicked off.

expo to make it more relevant and

features of the app was played during

event organized by Maxx Media to

interesting. One thing to look forward

the party, leaving the attendees in awe.

commemorate the team’s hardworking

to is our coffee sharing session,” he

spirit as well as to enhance the existing “Soon we will launch our property gallery

network with their business partners.

in Imago. It is a bold and costly move but

The event was sponsored by Nippon

Kho also revealed that towards the

we feel it is time for us to walk into the

Paint and supported by Plaza Shell,

second half of the year, the team will

crowd rather than trying to attract them

Adelphi & Co., Vino-Vino, Creative

host more of the smaller scale expos

to us,” revealed Kho.

Advertising and Instant Exhibitions with

continued.

called PIHex in Kota Kinabalu.

“It’s 2017, our ways of communication We took the opportunity to launch our

and information retrieval have

new mobile app, “Property Hunter” app

completely changed. Users will be able to

which is now available for both Android

score their property on the go and faster

and iOS users. The app is tailored to

than before,” Kho explained.

delightful music by Diary of Us, a local band.

‘hunt’ for available properties across the region. A teaser video showcasing the

PH Annual Party is an annual www.PropertyHunter.com.my

41

NEWS

Ekovest-Samling JV Bags RM2.1 Billion Pan Borneo Highway Job Ekovest Bhd, with its joint

SW

the project.

venture (JV) partner Samling Resources Sdn Bhd, has

The initial subscription of

bagged a RM2.11 billion

the Samling-Ekovest shares

contract for package WPC-

and future investment or

02 of Phase 1 works of the

shareholders’ advances

Pan Borneo Highway in

would be funded via

Sarawak.

internal funds, and/or bank borrowings.

Ekovest said its whollyowned subsidiary Ekovest

Samling Resources will sub-

Construction Sdn Bhd

contract the project in its

has entered into a JV and

entirety on a back-to-back

shareholders agreement with

basis to Samling-Ekovest

Samling Resources for the

at the same price at which

proposed project.

the project was awarded to Samling Resources.

The JV company, SamlingEkovest JV Sdn Bhd, would

Ekovest said the agreement

be held on a 70:30 ratio

was an opportunity for both

by Samling Resources and

parties to co-operate and

Ekovest respectively. It will be

leverage on each other’s

incorporated as the vehicle

strength and expertise.

for the parties to implement

A Sarawak rural stretch of the Pan Borneo Highway being upgraded

It added that Ekovest

providing management in

Construction has experience,

liaison with sub-contractors

expertise and track record

and the state government in

in providing technical

Sabah and Sarawak.

expertise and procurement of construction materials and

“The JV agreement also

equipment to undertake the

represents an opportunity

project.

for Ekovest to participate in large-scale construction

On the other hand, Samling

projects in East Malaysia,”

Resources is experienced in

said Ekovest.

Things Will Get Worse for the Malaysian Ringgit Malaysia’s ringgit, one of

BMI has lowered its forecast

Asia’s worst-performing

for the ringgit. It expects

currencies over the past

it to average 4.50 per U.S.

year, has further to fall,

dollar this year and 4.40 in

according to BMI Research.

2018, from 4.00 and 3.88

BK

previously. The currency, One reason is because it is

which fell 4.3 percent against

affected by the yuan, which

the greenback last year and

is going to remain under

18.5 percent in 2015, hasn’t

downward pressure, BMI said

posted an annual gain since

in a Jan. 4 note. There will

2012.

The Ringgit’s steady decline

also likely be a narrowing of “The Chinese economy

The ringgit is, however,

The risks to BMI’s view are

between the U.S. and

remains mired in a medium-

likely to claw back some

to the downside. If the

Malaysia, with the latter

term slowdown as the

losses over the longer

Fed increases rates faster

probably staying on hold

structural weaknesses

term, supported by the

than expected it could lead

this year while the Federal

such as overcapacity in

rising price of commodities

to higher outflows from

Reserve increases rates by

the industrial sector and

such as oil and improving

Malaysia and put the ringgit

a total of 50 basis points.

dominance of inefficient

terms of trade, which will

under greater pressure.

Further weakness in the

state-owned enterprises

be positive for domestic

Donald Trump’s presidency

global bond market would

persist,” the note said. “Given

savings and investment, BMI

also raises the likelihood of

also put the ringgit under

that China is Malaysia’s

said. Malaysia’s relatively

a global trade slowdown,

pressure given that around

largest export partner,

positive fiscal position relative

while Malaysia’s export sector

40 percent of Malaysian

we believe that Malaysia’s

to the U.S. should also

would suffer if additional

bonds are held by foreigners.

export-driven economy

keep inflationary pressure

protectionist measures are

remains exposed and is likely

subdued, it said.

imposed, it said.

real interest-rate differentials

to be negatively impacted.”

42

www.PropertyHunter.com.my

Bigger Airport for KK in Discussion Kota Kinabalu needs a

SB

foreign tourists into Sabah.”

completed in time before the

However, Abdullah explained

existing airport reaches its

that KKIA only has a single

influx of tourists will push

Although Abdullah declined

full (runway) capacity because

runway which could only

the existing Kota Kinabalu

to disclose the exact site for

it is unable to accommodate

accommodate up to 13

International Airport (KKIA)

the new airport, he said the

the influx of tourists,” he said

million passengers a year.

to its full runway capacity

location would not be far

in an interview recently.

of 13 million passengers

from Kota Kinabalu.

new, bigger airport as the

“Although the terminal can He said the current capacity

accommodate up to 21

Abdullah said although the

of KKIA could be increased

million passengers per year

study was still in preliminary

from the present 9 million

if expanded, a single runway

stage, the new airport could

passengers to 12 million

cannot take the number

be completed in four years,

passengers per year without

of flights of that figure,”

Abdullah bin Ahmad.

or five years maximum once

major construction.

Abdullah said, adding that the

“A study is in the process

decided on the project and

By constructing an additional

now to look into a new site

obtained endorsement by

building on the available land

for a bigger airport and it will

the Federal Government.

at the current terminal can

annually in the next five years, says Malaysian Aviation Commission (Mavcom) executive chairman General Tan Sri

have more than two runways to cater for the big influx of

the State Government had

increase in foreign tourists to Sabah would mainly come from China, as well as from Taiwan and Thailand.

further boost KKIA’s capacity “It will be a loss to the State

to 21 million passengers a

if the project cannot be

year.

Property Investment to Be More Popular Than Other Investments Property investment would

He said there would be a rise

continue to be relatively

in demand for affordable

more popular than other

housing below RM400,000.

BK

forms of investments in this country for 2017, said

The property market was

property consultancy firm,

also expected to cool down

CH Williams Talhar & Wong

and stabilise with prices to be

Sdn Bhd.

more realistic, he said.

Its managing director, Foo

Foo said the growth areas

Gee Jen, said this was mainly

would likely focus on good

because the return on

transport connectivity and

investment from the property

with strong demographic

sector was higher, at about

forces and residential

5.2 percent, compared to

properties would also

returns from bonds, the stock

continue to be supported.

market and mutual funds of about two to three percent.

“Among the transportation connectivity are High-Speed

“However, our take on the

Rail (HSR) KL-Singapore, Mass

property market this year will

Rapid Transit (MRT) Line I and

be another flattish period

II, Light Rail Transit 3 and West

weighed down mostly by

Coast Expressway,” he said.

low commodity prices and continued slow economic growth in major countries and political uncertainties,” he said at the presentation of the 2017 Asia-Pacific Real Estate Market Outlook here yesterday.

He said the proposed HSR, East Coast Rail (KL-Tumpat, MRT 2 & 3, Gemas-JB rail, Singapore MTR (extension to Johor Bahru), SerembanPort Dickson and Pan Borneo Highway would also open more opportunities for new

The property market was also expected to cool down and stabilise with prices to be more realistic

growth centres and spur

He said this year would

economy activities along its

be a challenging one for

path.

developers due to rising construction costs on weak

On another note, he

ringgit, which included higher

said, there were growing

crude oil price, increased

expectations that property

electric tariff and labour

prices would drop further in

shortage.

2017 as well as an increase in the vacancy rates.

“The inability of the emerging young working population to buy homes due to the rate of house price increase and tighter lending rules are probably the most pressing matters facing the country,” said Foo. www.PropertyHunter.com.my

43

FEATURED EVENT

MIEA Sarawak to Build More Affordable Housing words by Property Hunter

The Malaysian Institute of Estate Agents (MIEA) Sarawak branch is working together with the government to build affordable houses for the people.

44

www.PropertyHunter.com.my

According to MIEA Sarawak branch

Ting also urged all estate agents to

supporting its Sarawak branch by setting

chairman, Alex KK Ting, the

work together and to be professional in

up its state secretariat office three years

government has agreed to increase

their dealings to boost their image and

ago.

the density for landed development

increase public confidence in them. He

from 8 units to 10 units per acre.

also urged banks to come up with more

“Besides serving our members, it also

innovative financing schemes.

provides education and continuous

During their third annual dinner, Ting

training for real estate practitioners in

acknowledged that the hard work has

“For example, property prices and

been paid off from the countless appeal

incomes of purchasers will always

by the Sarawak Housing and Real

increase, therefore, banks should look at

Kho added that MIEA was working hard

Developers Association (SHEDA).

the staggered loan repayments. Another

at all levels in Malaysia, in the ASEAN

scheme could be for payment of interest

and globally to improve its services to

Ting revealed that the government had

on the loans, commonly practised in

members.

also approved some 9,000 units under

Western countries”, he added.

the state,” he explained.

the 1Malaysia People’s Housing (PR1MA) programme in Sarawak.

Meanwhile, MIEA’s 16th president, Erick YT Kho, said that Kuala Lumpur MIEA was www.PropertyHunter.com.my

45

INTERVIEW

Ready, Set, Invest!

Meet Kenny Wong and YK Hwong of PropertyKid.com. These two are real-life investors, with very interesting and pretty similar investing backgrounds. They are also our new speakers for the upcoming expos in 2017. In this interview, they tell PH’s editor, Iza Abidin, about their clumsy starts, what they learned and what they hope to achieve this year. words & photography by Property Hunter

46

www.PropertyHunter.com.my

at B Side CafĂŠ

www.PropertyHunter.com.my

47

INTERVIEW

YK Hwong of PropertyKid.com & Kenny Wong

So, YK, you’re in the quarry business. Can you tell us a bit about that?

just read. I sort of ‘discovered’ property

earning very little back then, I was like,

investing after reading this book by

“Ok, I think I should buy property”. When I

Robert Kiyosaki. It’s not “Rich Dad, Poor

started, I didn’t really know anything about

Dad” but a book prior to that is less

it, learning as I went along. In restrospect,

YK: Yes, it’s actually my father’s business. I

known in my opinion called, “If You Want

doing it that way was very high-risk. Now,

assist him with the day-to-day things, like

to Be Rich & Happy Don’t Go to School”.

when I talk to people about property

managing the human resource, payroll… more on the admin side. At the beginning,

investment, I tell them, “Don’t just dive

Oh, wow really?

in”. Yes, I dived right in, but I was lucky.

If it had turned out differently, then I

I was doing everything. But eventually we started hiring people, so things are much

YK: Yea, that’s the actual title of the book.

wouldn’t be where I am today. I learned

easier now. Back then, we were travelling

I was so intrigued by the book because it

a big lesson after getting my first loan.

about 8000km every month that we had

had opened my eyes to a lot of things.

Back then I thought that when you buy

to change the car oil frequently. It was basically a routine, travelling constantly,

Did you finish school though?

So, that would mean you were in that business for a year before you started investing?

YK: I did. And because I finished my

man, I’ve got to fork out 5%”. So, I learned

studies, I didn’t get that rich. (laughs)

that it was so important to know these

Kenny, you also got inspired by Robert Kiyosaki’s book, but it was “Rich Dad Poor Dad”.

YK: Actually, before I started investing, I was already studying about it (property investment). Back then, when I was at

things beforehand. And it was there that I hit the wall so hard. And that’s when I started picking up all these books and approaching experts with questions. I even had mentors. A year after that experience,

YK: Yes, correct. You’re so smart (laughs).

Thank you, I read your profile.

90%, but it was a commercial property, so it was only 85% loan max. I was like, “Oh

taking things from KK back to the site every day. But it was fun.

property, you’re definitely going to get

Kenny: Actually, my genuine interest in

I decided to buy another property. But this

property investment started after I read

time, I really studied on it and made sure I

the book…but my property investment

did it properly.

journey started before that.

Oh…can you explain?

the site, there was absolutely nothing to

So what were your different methods of learning for property investment?

do there. No internet, no phone lines,

Kenny: The way I started was, I would say,

nothing. So, on my free time, I would

very ‘kan cheong’. I started to hear about

Kenny: Most of the time I look to experts

property investment, and because I was

and mentors because they are the ones

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www.PropertyHunter.com.my

that have knowledge and experience in this. I would just straight up ask them.

Also, I would talk to bankers and talk to agents to know the market.

What about you, YK? How do you satisfy your property interests?

YK: I studied on it for about a year and I would go to Mudah and all these websites to look at listings every day. In fact, I still do this today. Anyway, I would jot down all the prices and call the agents and ask them anything I needed to know because, I knew nothing. And back then, there weren’t any decent books on the Malaysian property market, except for Milan Doshi and Vincent Leong. But, nothing prepares you for the real thing.

Just like Kenny, I sort of just dived right in, but I also calculated everything. To be honest, there were a few things that weren’t good about the first property that I bought. It was this apartment in KK called Fairway Mansions and it was close to high tension wires. I still remember clearly when the bank officer asked me if I was sure about buying it, because according to her, nobody would want to stay near high tension wires. But it was the cheapest per square feet in this category and in this size and I did the calculations. It was very low at the time and the rental was enough to cover my loan, and despite the bank officer’s concerns, I bought it anyway. (laughs)

So, was the bank officer, right?

YK: Nope. I think my instincts have been right from the start until now. I’ve always been a contrarian investor where people would say, don’t buy this, or don’t buy that…but I still buy what I want and I still make money out of it. However, I’m not so sure how long I’d keep doing this (laughs). Luck may have some part in the eight years I’ve been doing this, but my point is, that you should try to see value below the surface. That’s why I focus more on the numbers.

Kenny: He’s looking for the ‘uncut diamond’.

www.PropertyHunter.com.my

49

INTERVIEW

YK: Ahh…the gem. Yea, most of the investing that I’ve done, the most successful ones anyway, have been the ones that people might not buy. But I would, if I see potential value in them.

How did you feel after buying your first successful property?

YK: As I mentioned before, it was the Fairway Mansion. And it was kind of like a turbulence. What was even worse was what I found later. Besides the hightension wires, the property was right across the dumpster! But because I was so gung-ho on buying a property at the time, I didn’t even notice it. But, I was very lucky, because just two weeks after I got the keys, a lady rented it. She was my first tenant for the place up until I sold off the property last year. I actually made double the value, so I made quite a bit out of it.

The experience made it feel like it was the beginning of something that I can greatly achieve in the future. It was so addictive, I wanted to do it all over again! (laughs) I’m very much enticed with the negotiations part. The more I invest, the more I realise that I absolutely love the thrill of the deal.

As you know, the market is in bad shape right now and will only get worse before it gets better, which is predicted to happen only in the next year or two. What would you say to those that are thinking about starting their investing this year?

YK: Well, there’s always a chance to invest.

Property investment is a long-term game and is not about whether you start this year or next year. It’s about what happens in five or ten years. Don’t just depend on reports that say everything is down, everything is bad, because then, you’ll never start.

So, what you’re saying is that it doesn’t really matter when you start. If you find something that feels right, then you should just do it.

Kenny: To me personally, timing is very

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www.PropertyHunter.com.my

important. But it’s not the timing of a good or bad economy, but the timing to catch what is best at that time. When you study the market, you’ll notice that when the economy is bad, developers will offer a lot of rebates and that’s when people will be selling off their houses, so, it’s an opportunity for people to take

2017 will be an exciting year for both PH and the both of you. You’ll be our first, real-life investors to give talks at a session called “Coffee Talk” where you will be sharing your investment journeys with others. What do you both hope to achieve from this?

hold of. Yes, when the economy is good,

With me and Kenny going out there with the intention to educate others…. hey, we’re no experts or professionals in the industry, but instead, we are just like the average person out there. So far, we’ve done all the work – the studying, talking to experts, understanding the market.

Kenny: Also I think that besides arming

it may be easier for banks to give you

Kenny: Personally, my aspiration is

yourselves with knowledge, it’s very

a loan, but there will be lesser rebates

to share my experience and inspire

important that the young investors and

from developers. I understand that it may

the younger generation, my peers. It’s

investors-to-be, prepare themselves

be hard for some to get a loan, but my

been quite a challenge because I’m still

mentally. I believe that the “I can”

suggestion would be to partner with a

considered a very young investor, and

mentality is much more important than

sibling or someone you trust, and just get it

most people would ask me, “Who are

having a high IQ. The reason why I started

started. Try to find other ways to just start.

you?”, without knowing my investing

this was because I met someone that

background and that I started very young

shared something with me that changed

YK: One should try to find ways to

(at 22). Through this platform, I hope that

my whole life. I was inspired and wanted

invest, rather than make excuses and

it would be easier to reach out to them

to become that person so that I can

say that you don’t have the money start.

and for people to take me more seriously

change other people’s lives too.

Even between 2010 to 2014 when the

because I have so much to share.

economy was good and booming, many people still weren’t investing out of fear

YK: As for me, you know I run a blog

to start. You just got to find ways to do it

(PropertyKid.com) about property, so

because pretty much everything in life is

what I want to achieve is pretty similar

like that.

to Kenny’s. I want to educate those who are just starting out. Anyone can do it, but you just need to know how to do it. www.PropertyHunter.com.my

51

FEATURED EVENT

REAL ESTATE GETS REAL! words by Property Hunter

T

Malaysian Institute of Estate Agent (MIEA) has been running the Malaysian Annual Real Estate Convention (MAREC) for more than 30 years where it contributes learning, real estate knowledges and industry’s current information to practitioners.

he most awaited upcoming

increase number of buyers and the

major event’s convention

rise of cost living which is parallel to the

chairman, Mr. Lim Boon Ping

current market condition; ASEAN Real

said that he is privileged

Estate Network Alliance (ARENA) a talk

to invite all to attend the

on networking in the regional real estate;

Malaysian Annual Real Estate Convention

‘7 values for an incredible business and

2017 (MAREC’17) which will be held

life’, a talk which defines the way we

on 3rd and 4th of March 2017 (Friday

think, work and act upon the changes in

& Saturday) at Setia City Convention

the industry; ‘Implications of Augmented

Centre, Shah Alam. The event will be

and Virtual Reality in Real Estate’ which

graced by YB Dato’ Lee Chee Leong,

discusses about the upcoming issues for

Deputy Minister of Finance II.

real estate.

The theme “Transforming Your Real

Other topics which will be explored

Estate Business in A Changing Era” has

during the convention include, ‘Keys

been adopted to educate the public

to Successful Project Marketing’,

about many challenges in the current

‘Crowdfunding in Malaysia and how

real estate industry. Technology has

property agents can benefit from it’,

played a huge part in our lives from the

‘IT Start Up: Friends or Foe’, ‘Latest

invention of the wheel to the Internet,

Challenges on Property Management

technology has been growing faster

Issues’ and ‘How to Profile A Buyer For A

and been a great factor on the way our

Bank Loan’.

civilization has grown.

In the previous MAREC, the Million Dollar Topics that will be presented include

Round Table forum has received a huge

‘New Trend in Property Development’

response. In pursuant to that, MAREC’17

which describes the outlook of Malaysian

has designed a new forum called Multi-

homes in terms of demographics, the

Million Dollar Deal Forum, where few

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www.PropertyHunter.com.my

corporate agents in the country are going to share their experiences in closing Multi-million dollar deals. Along with that, a new forum called Cross Border Transactions Forum was also introduced, where speakers are invited to speak on cross border property transactions between Malaysia with Singapore, Australia, United Kingdom and People Republic of China.

“I assume having speakers with technical background to talk on various topics and forums will guide each and everyone with extra knowledge, fruitful and productive ideas and being up-to-date with real estate information where it will help oneself to counter the transformation of real estate business in a hive of activity,” said Mr Lim Boon Ping, MAREC’17 convention chairman.

www.PropertyHunter.com.my

53

NEWS

Property Industry to Remain Lacklustre This Year The property industry is

“We are still seeing strong

expected to remain lacklustre

demand for selective new

this year after the sluggish

projects which offer a value

sales in 2016, driven by

proposition to buyers despite

prolonged weak sentiment,

the relatively weaker market.

BK

low affordability and accelerating incoming supply.

“Differentiating features and value-driven pricing have

In a research note by

increasing dominated buyers’

AllianceDBS Research Sdn

priority list given the weak

Bhd, it said that buyers were

sentiment,” it said.

likely to adopt a wait-and-see attitude in anticipation of

AllianceDBS said developers

lower selling prices in the near

with right product offerings

to medium term.

at emerging growth corridors

The property industry is expected to remain lacklustre this year after the sluggish sales in 2016

with huge population

offerings to incorporate more

catchments were expected to

‘value-added’ properties

sustain their sales.

with differentiating lifestyle amenities that will distinguish

“The developers would

themselves from the lower-

have to revise their product

priced public housing,” it said.

Sad Unexpected Response About TAED From Public A lot of people have posted

According to a statement

their comments, expressing

made by a citizen on

their unfavourable opinions

Facebook, he believes hat

about the multi-billion

TAED will definitely help KK

Ringgit project. One of the

move towards another level

most prevailing issues is the

as a destination city.

SB

privatisation of the iconic Tanjung Aru beach and

Without proper comment, the

Prince Philip Park.

current Draft Masterplan will be taken as received without

During a public consultation

objection.

at the Kota Kinabalu City Hall

TAED schematic master plan report

office recently, it was reported

In a statement made by

that only some 30 plus forms

Mayor Datuk Yeo Boon Hai

submit their comments and

Because of the success, we

have been taken and less than

on 10th December 2016,

objections before the end of

are now launching Setia Sky

10 were submitted.

he urged the public to

February 2017.ft is sizeable.

Ville in Jelutong,” he added.

Promising 2017 Outlook for Construction in Sabah

SB

The construction sector

more upside in light of the

such as the redevelopment

Plan 2016-2020, a key focus

outlook for 2017 seems

RM12.8bil Sabah portion of

of Kota Kinabalu (KK)

for Sabah’s development is

promising, particularly for

Pan Borneo Highway as well

Port, which includes the

to invest in infrastructure to

infrastructure construction

as the upcoming High-Speed

development of Sabah

improve connectivity within

players, given the slew of

Rail (HSR) projects.

International Convention

the state and international

Centre, comprising One

linkages.

government projects.

According to an Affin Hwang

Jesselton, Jesselton Quay, and

According to a head

Capital sector report, three

KK Convention City.

of research, property

packages from the Sabah

construction activities are

portion of the Pan Borneo

Currently, SP Setia is

there are plans to build a new

not going to be as buoyant.

Highway have been awarded,

developing the RM2.2bil

KK Airport, light rail transit

This is due to the property

with the remaining packages

Aeropod project in

system in KK, new railway

development cycle, which will

targeted to be awarded by

Tanjung Aru while the

lines to connect the north

continue to be soft this year,

end-2017.

state is developing the

and east coasts of Sabah as

RM4bil Tanjung Aru Eco

well as upgrading of Lahad

Development.

Datu Airport.

he said.

There are more major Apart from ongoing projects,

property development

the construction sector holds

projects planned in Sabah,

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www.PropertyHunter.com.my

As part of the Sabah Development Corridor (SDC),

Under the 11th Malaysia

www.PropertyHunter.com.my

55

NEWS

Privacy and Security Essential for Homebuyers

SB

Tourism attractions in West

being cautious about their

condominiums. Landed

almost hassle free; the

Coast Sabah will be boosted

investments and prefer to

properties came in second;

security, amenities and

to cater for the ‘timid’ In a

invest in ready-to-move-in

some families prefer to stay in

maintenance (to name a few)

recent poll conducted on

properties or in projects

landed properties because of

are there.

Facebook, we took a sample

where construction is at an

the land space they would be

of a small group of people

advanced stage of completion.

getting.

and having a good sense of

With the scarcity of land

privacy and security topped

space, most investors are

With one’s busy lifestyle now,

the list. Secure parking was

now looking into investing

owning a condominium is

the second on the list.

Ready-to-move-in was third on the list. These units are amongst the safest options, given the current market scenario. Experts believe that it is primarily the endusers and not necessarily investors who are looking for ready-to-move-in options. Home buyers are

Important attributes to look at when buying a property

Preferred types of properties

Steady Steps to Revive Prince Philip Park and Tanjung Aru Beach Tanjung Aru Eco-

metres of sand during low tide

Development (TAED) has

but after development, its new

been entrusted with reviving

length will be 1420 meters with

Tanjung Aru Beach. The need

a new beach width of 50 to 110

to save Tanjung Aru Beach

meters.

SB

and Prince Philip Park which has already lost 60 to 70

Presently, the beach has

meters due to erosion over

already gone down by 60 to 70

the past 50 years is one of

meters due to erosion, if left

the State’s priorities now.

as it is in years to come, Prince Philip Park will itself be claimed

The present Prince Philip Park

by the sea.

in Tanjung Aru Beach covers 14.5 acres and with the revival

Savills’ Project Director of

project it will cover 27 acres.

Development and Project

The present length of the

Management, Peter Adam says

beach is about 1400 metres

TAED aims to provide greater

with a width of 9 meters of

social economic benefits with

sand during high tide and 25

the improved infrastructure

An artist’s impression of the revived Prince Philip Park

and facilities and added key

economy, and now the

attractions to the city of Kota

booming tourism economy, it

Kinabalu and the state of

would be good to have a fresh

Sabah.

green revolution in Sabah.

“The revitalization of the key

Members of the public who

attractions are to provide

are keen for more information

better public amenities and

about TAED can also visit

clean beachfront with safe

the TAED information centre

water for Sabahans and its

located at Perdana Park

future generation to address

(Tanjung Aru). The centre

old features and thus the

provides an overview of the

underutilization of Prince Philip

development and its features.

Park and also current beach pollution”, says Adam.

This centre is open Mondays to Saturdays, from 6.45pm

The walkway in Tanjung Aru Beach

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www.PropertyHunter.com.my

With Sabah being

to 8.45pm and is closed on

predominantly an agricultural

Sundays and Public Holidays.

www.PropertyHunter.com.my

57

HOT TOPIC

DREAM IT. WISH IT. DO IT. We at Property Hunter know that now is the time to start venturing into something new and trust the magic of beginnings. This year, we will be introducing three new elements to our cliques.

words by Property Hunter

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www.PropertyHunter.com.my

Progress is impossible without change, and those who cannot change their minds cannot change anything. As with all things new, we also have some new exciting line-ups to share.

www.PropertyHunter.com.my

59

HOT TOPIC

Find properties in “map view”

Get the latest property news

Discover upcoming property

Post properties for sale/rent

events near you

for free

Discover properties based

Receive exclusive promotions

on your search preferences

NEW APP Turning ideas into action. We’ve been working on a mobile app to stay on top of the game. This year, we finally launched it. Now, you can access all sorts of information with just a click of a button. This app is available on both iOS and Android versions.

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www.PropertyHunter.com.my

NEW EXPO FEATURES Because in your dreams, every detail matters. We have decided to make your experience at our expo friendlier.

Coffee Talk at VIP Lounge Area

Legal Clinic

Food and Beverages area – catered by Adelphi & Co. (only in KK)

Tax Expert consultation

Media Partners’ Kiosk

Mobile Charging Zone

Consultation from bank(s)

Visitors who wish to attend our expos this year

But fear not, the customary walk-in and register

are welcome to pre-register their interest and

option will still be available to you.

attendance online. A unique QR code will then be sent to you.

PH PROPERTY GALLERY Located in Imago Shopping Mall, one of the largest and

also an effort to build a strong presence for PH in Kota

most prestigious malls in Kota Kinabalu, the objective

Kinabalu.

behind this space is to execute a mid- to long-term approach (3/6/12 months) to gain more market share

Officially opened this month, it opens daily from

and to achieve higher sales targets for our clients. This is

10am – 10pm.

Target audience:

PH Magazine Readers

Tourists

Footfall of Imago

PH Online Portal Visitors

PH Database

Shopping Mall

Activities: Events

Mortgage Talk

Bankers’ Night

Investment Talk

Wine Appreciation

Association Night

Exclusive Events for Developers EXCLUSIVE

www.PropertyHunter.com.my

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CONTRIBUTOR

4Ws THE

&

1H

in Financing Your Home Purchase words by Chris Tan

www.PropertyHunter.com.my

63

I

CONTRIBUTOR

Where to get financing?

Your initial monies can be

Banks are the obvious choice to

your own savings, your friendly

take care of the rest of your home

loan from friends and family,

financing requirements. However,

First and foremost, you need to

your advance salaries from

housing loans are also available

your employer, personal loan

from Insurance Companies,

from the Co-operative that you

Licensed Finance Companies,

are a member to; to even the

Licensed Money Lenders as well

permitted withdrawal from your

as Building Society although the

EPF contribution that is allowed

interest rates, margin of financing,

for first home purchased. If you

loan tenure, loan repayment

are qualified, you might want

and requirements are all unique

to explore the various schemes

respectively and are different from

announced under the Budget for

the banks.

have some monies in your pocket before you commit to any home purchase. You need to provide for the initial booking, deposit, professional fees, stamp duties, property valuation fees etc., depending whether you are buying from the Housing Developer or the secondary market. It is almost impossible to get 100%

early Skim Rumah Pertamaku

If you are a civil servant, you can

purchase in the market place.

to the most recent, MyDeposit

even apply for a housing loan from

scheme last year.

the Government.

When to look for Financing?

grant you to finance your intended

loan to finance your studies.

helpful to assist you to short list

If you are buying from the

It is always good practice to look

properties that are within your

secondary market, do not take too

affordability and credibility with

long to shop for the best financing

the bank. Otherwise, you might

package as you are required

misinterpret your own credibility

under the normal transaction

and end up disappointed.

time of 3 months to pay the

financing to fund your entire home

II

for financing before you commit to a home purchase. There are also many variances of home financing packages in the offering and you can always shop early to identify a

home purchase. This is extremely

balance purchase price or you are

package that suits your needs.

Pay a visit to Bank Negara to

subjecting yourself to late payment

conduct a check on the CCRIS

interest or even at risk of a

First you need to get your set of

system as it will also be helpful

termination with forfeiture of your

to ensure your intended loan

deposit too. If possible, sign your

application goes smoothly without

set of Loan Agreement as soon

any unnecessary remarks in your

as you’ve signed your Sale and

record. PTPTN is another marker

Purchase Agreement, preferably

too for those of you who have a

no longer than 2 weeks after that.

proof on incomes ready so that you can start checking with the Banks on the indicative range of loan amount that they are ready to

64

the last few years from the very

www.PropertyHunter.com.my

III

Who will borrow?

This is not the same question as ‘who will buy’. Although it might seem obvious that the person that buys should be the one that borrows, there are some strategic considerations involved.

security in terms of charging the

name of the housewife with no

home so purchased to the bank.

income. The persons with better financial standing could either be

The loan approval, the margin of

one of the borrowers or one of the

financing, the loan tenure, the rate

guarantors.

of interests all depends on the profile of the borrower.

If the Borrower is a Sdn Bhd, Bhd or a LLP, it is also common for

Typically, joint borrowers with

the Directors or Partners to give

multiple incomes would have a

joint and several guarantees for

better chance of loan approval

the loan too. Using a company to

than a single income single

buy a home of residential purpose

borrower. An income earning

would mean a lower margin

husband would be welcomed as

of financing that requires the

homebuyer providing third-party

a borrower for a case where the

purchaser to have a larger sum of

home is purchased under the

initial monies.

What type of Financing?

but available to all including non-

that is most suited to your unique

Muslims.

profile to ensure that you make

There is no such thing as the

Within the conventional sphere,

Pay attention to various

pay attention to the details

conditions for the disbursement

in things like, term loan, flexi,

of the loan sum for little things

overdraft, daily rest interests,

like opening a new bank account

principal reduction, early

that could delay your progress in

redemption penalty, effective

completing the home purchase

lending rate. Take your time to

that could potentially mean that

understand the unique features

you need to pay late payment

on Syariah compliance principles

of the housing loan packages on

interests.

How to select your Financing Package?

You need to also approach the

certainly one package that works

banks on your own, although

best for you.

as your lawyers might give you

As for the need of Mortgage

If you are buying from Housing

professional references within

Insurance like MRTA/ MLTA, it

their network.

is at your discretion unless the

A Borrower can be an individual, a group of people of borrowers, a Sdn Bhd, a Bhd or even a Limited Liability Partnership (LLP). It

IV

could also be a borrower with the

standard home financing package as there are many different offerings in the market to cater for the various needs of the borrowers. For starters, there are conventional loans as well as Islamic financing that operates

V

Developers, most of the time there will be a panel of Banks that are ready to consider your loan application strictly based on your profile. Unlike the secondary market, there is a need to have a property valuation report to be done on a case-by-case basis to satisfy the lending Bank along with your profile as a borrower.

the most out of it.

offer to you and select the one

the real estate agents as well

loan package prescribes it as Consider you unique need in

the condition for approval. The

financing, your preferred income

premium involved could actually

and repayment pattern as well

be part of the loan sum or you

as your objective in your home

could choose to pay with your own

purchase to enable your best

funds. There are pros and cons

selection of the home-financing

to Mortgage Insurance and it is

package. There is no best loan

certainly worth considering for a

package universally but there is

genuine homebuyer.

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65

HOT TOPIC

When to Buy a House?

Part 1 - State of the housing market It has become the norm that apart from getting housing for homeownership, people are investing in housing for wealth creation. During the earlier cycles of house price run-ups, many who have made timely investments into housing have reaped good returns in value from their investment properties. But when prices move in the opposite direction, the situation can become very hostile to property owners, especially those who are heavily tied-up with home loan mortgages.

66

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T

So, when is the right time to buy/invest in a house?

his is indeed a burning

of a turbulent economic-social-

restore confidence which will then

question for many

political environment, beset with

produce a chain reaction that will

hopeful homebuyers

perennial problems from political

improve the overall economy in

and investors that

tussles to weak governance. It

general and the housing market

are keen to have

does not help that bad news or

in particular.

some sound and solid answers.

negative news, be they facts or

A research team in UTAR led by

rumours, usually receive greater

Malaysia is currently in the midst

Assistant Prof Dr Yip Chee Yin, is

attention. And in this digital

of the downward trend of the

currently conducting studies on

age, news travels fast and wide.

most recent housing price cycle

the Malaysian housing market

Inundated with such negativities,

which has commenced around

under the Ministry of Higher

people’s confidence gradually

2010. The current growing slack

Education Fundamental Research

erodes. This negative perception

in housing sales is apparently

Grant Scheme (FRGS). Based on

is shared practically by all those

gaining traction as shown by the

the information collected through

interviewed from both the supply

increasing number of unsold

interviews with industry players

and demand side of the housing

houses at the end of the 2nd

and consumers as well as results

market.

quarter of 2016, a jump of 16%

of econometric modelling, the

over the previous quarter. In

research team will present their

While the development of

the secondary market, offers

findings in a 2-part series which

external challenges is not within

for sale are aplenty. Meanwhile,

will provide some insights to help

the control of the country, the

the brakes are being applied

readers make more informed

government of the day must put

on construction activities as

decisions regarding their housing

in a concerted effort to draw up

witnessed by the falling number

investments, This article is the

effective policies to enable the

of piling drivers and sentry cranes

first of a 2-part series that will also

nation to ride through these

on the horizon, especially in hot

look into the current state of the

rough patches. Most countries

demand areas.

domestic housing market.

face the same external factors but handle them differently via

To get a clearer picture of

Malaysia is facing many significant

individual government policies,

the pattern of change and

challenges both within the

as demonstrated by the better

fluctuations of prices in the local

country and internationally

performance in economic

housing market, we estimate the

including the decelerating

growth of some of our regional

housing price cycles using Figure

economic growth rate, lower oil

neighbours. The state of the

1 which shows a graph illustrating

prices and falling value of the

current Malaysian economy is

the year-on-year (y-o-y) house

ringgit. On the backdrop of all

largely due to the various policies

price changes from 1989-2016.

these critical issues, the domestic

implemented by the Government.

housing market has entered

The present Government

into a sluggish phase. From the

needs to focus on key areas of

opinion of those interviewed,

concern and implement bold

both housing industry players

but positive policies to gain back

and consumers, the housing

the Rakyat’s confidence as well

market is adversely affected by

as to demonstrate its capacity

the pessimistic sentiment over

in influencing the economy and

the uncertain economic outlook

creating sustainable economic

of the country. On the domestic

growth. This will immediately

front, the country is in the midst

improve the public sentiment and

www.PropertyHunter.com.my

67

HOT TOPIC

Figure 1 suggests that there are three cycles of house prices during the periods from 1990-1993, 1994-1997 and 2010-2016. The first two cycles involve rapid increase in house prices and subsequently followed by sharp drop which are basic characteristics of a housing bubble. However, the third cycle demonstrates a comparatively more gradual rising, peaking at a y-o-y increase of less than 20% between 2010 and 2013 when the trend reversed. The downtrend is also taking a rather gentler gradient.

This means that this time around, the housing market will not be as turbulent as the last two cycles two decades ago.

This can be attributed to the timely interventions taken by the government as well as the quick adaptive approach of housing suppliers to sustain demand/ sales.

Opinions gathered through interviews with housing developers, architects, project senior managers, civil engineers and marketing officers, point to a serious confidence crisis in the national economy being the primary factor that is depressing the housing industry in general, a point that seems to be supported by statistical figures. GDP growth rate has declined to about 4.5% which is 0.7% lower than the 5 years (2011-2015) average growth rate.

Private sector spending has slowed down considerably. Both consumption and investments saw a slower growth

going to foreigners. The problem facing

infrastructure (highways, LRT lines,

in 2015 of 4.4% in Q3 compared to

the industry now is more of issues of

upcoming MRT lines), new growth areas

5.7% in Q2 and 9.6% in Q1. Consumer

supply and demand. With supply being

further away from the perimeter of the

spending (51% of demand) had its annual

highly inelastic in the short-run, the effect

city are developed with prices of homes

growth pulled back sharply to 4.1% in

of dedicated government policies will

at lower and more affordable levels. Such

Q3 from 6.4% in Q2. These drops in

take a while to kick in. While consumers

new growth areas include Cyberjaya,

economic growth, consumer spending

complain of the skyrocketing of housing

Semenyih, Rawang, Nilai, Seremban,

and investments are shown in Figure 2.

prices, suppliers have a rather different

etc., apparently offering lots of choices

Many interviewees opined that concerted

view. Some developers feel that housing

to homebuyers. Thus house prices are

efforts by all parties and the right policies

prices have over the years moved up

moving up largely due to higher land

are vital in restoring the confidence

but in a controlled manner. This trend

cost, construction cost and compliance

of both our people as well as foreign

is especially so in growth areas in the

cost but still have not moved beyond

investors in order to strengthen the

country; a typical example is the Klang

affordability. And again due to high land

economic growth.

Valley. As land become scarcer in prime

cost, construction cost and compliance

areas within the city and its immediate

cost, house prices are not likely to come

The housing industry in Malaysia

surroundings, property prices would

down. According to these developers,

generally caters mainly to the local

naturally spike up. This happens all

the best-case scenario is that prices will

market with only a small percentage

over the world. But with the improved

stabilise because they, the developers,

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will hold back new launches and slow

housing market. Our opinion gathered

market for intent buyer/investors. Part 2

construction once they think that they

shows developers have a different view

will be published in the next issue.

do not make reasonable profit from their

on this issue. Foreigners are attracted to

projects.

prime areas mainly KL, Penang and Johor

This article is presented by the Research

Baru/Iskandar and Melaka. These are

Team of UTAR currently undertaking a

The days of volatile housing prices

always premium price locations where

study on the Malaysian housing market.

are over and speculators have long

foreigner buying has minimum influence

This study is funded by the Fundamental

retreated to the sideline as commented

on price movements. Additionally,

Research Grant Scheme (FRGS) grant from

by a developer. Due to slowdown in

as pointed out by some developer

the Ministry of Higher Education. The

sales, developers have become more

respondents, the foreigner purchase

Research Team members are Yip Chee

adaptive to the market, adjusting to the

trend over the years show a relatively low

Yin (team leader), Choong Chee Keong, Au

needs of the buyers in terms of product

uptake, within the 20% to 30% range and

Yong Hui Nee, Abdelhak Senadjki, Woo Kok

type, specifications and neighbourhood

on properties in the high price category,

Hoong, Tan Yan Teng and Ahmad Nazri bin

facilities. If developers are not able to

restricted by the minimum price level set

Wahidudin.

price their houses within the attractive/

by the Government.

competitive range then they will lose out.

Additionally, they lamented that sales are

Yet looking at the above scenario, therein

significantly affected by the low approval

lies a seemingly ironical situation – that of

rate of bank loans following more

the issue of affordability. There is much

stringent regulations imposed by Bank

concern of the growing inaccessibility

Negara Malaysia. With the already very

of housing, particularly to those in the

high household debt (reported currently

20s-30s age group, that has gotten

at around 90% of GDP), the more

society worried sick lest they become a

demanding loan approval criteria aims to

“homeless generation”. When the market

protect the borrowers and the stability

was running up steeply, the Government

of the local financial industry which will

implemented various measures to

check the risk of housing bubble threat.

control the housing price rally and has since taken concerted efforts

A further concern raised by one of the

with various programs to help target

developers is the aggressive participation

groups on homeownership.

of foreign developers in the local housing market with mega projects. It is feared

But the bottom line is still the

that these projects covering thousands

purchasing capacity of the

of units when completed over the next

consumers which is significantly

one or two years would have significant

linked to disposable income,

negative effect on the already sluggish

a factor that in turn is

market. Nevertheless, the feeling is that

dependent on economic

it is now a buyers’ market where they

growth. If history is of

are spoilt for choice. From the point

any guide, economic

of the consumers though, with the low

activity is cyclical.

confidence in the outlook of the economy and future prospects, people are paring

In Part 2 of this

down their expenses and re-assessing

series, the authors

their financial balance sheets. Would

will try to analyse

people be so willing as yet to pick up

the bearing of

another long-term big mortgage bill?

the housing market in

Concern has also been raised of

the current

foreigners taking advantage of the

cycle and

weakened ringgit and entering the

suggestion

housing market to snap up properties

on the

and thus could contribute to unhealthy

timing

price hikes and more serious

for entry

consequential slowdown effects on the

into the www.PropertyHunter.com.my

69

NEWS

Weighing Bridge for Keningau-Kalabakan Highway to Be Completed This Year A weighing bridge and rest

hectare site not far from the

complex to monitor usage

entrance of the road leading

of the Keningau-Kalabakan

to Maliau Basin.

SB

highway is expected to be completed this year.

Chief Conservator of Forests Datuk Sam Mannan in a

Its purpose is to address road

statement on Tuesday said

damage due to overloading,

the decision was made by the

dangerous loading and

Sabah government during a

non-compliance of the Road

meeting of the State Action

Transport Department

Committee on January 28,

regulations, among others.

2015.

overloaded and dangerously

Manned and managed by the

“Hopefully, with penalties and

Road Transport Department,

further punitive actions taken,

it has a task force comprised

the menace of road damage

of the Forestry Department,

can finally be controlled, if not

Road Transport Department

eliminated”.

and other relevant departments.

Based on the department’s observations, overloading

Located within the Kalabakan

is caused by all types of

Forest Reserve it is

trucks carrying all types of

strategically placed on a two-

goods. These include largely

Property to See Slight Improvement

Logging trucks resting by the roadside

damage.

loaded trucks transporting oil palm, cement and steel rods

As a comparison, the Sapulut-

as well as general goods.

Tibow to Keningau portion is in a far better shape despite

On narrow roads, vehicles

experiencing similar usage to

tend to veer to the road

the Kalabakan-Sapulut stretch,

buffer or shoulder to

which is the most degraded

avoid collisions, especially

portion.

in corners, putting extra pressure on the pavement

It is believed that the two

and thus contributing to road

stretches, were built by two different contractors.

WM

Malaysia’s property industry

improve next year on the

is likely to see a slight

back of increasing commodity

improvement next year,

prices, such as oil and gas,

helped by better economic

the property market would

growth, said Second Deputy

also likely to follow suit.

Finance Minister Datuk Lee Chee Leong, as reported in

Statistics from the National

The Edge Property.

Property Information Centre showed that from January to

Lee said gross domestic

September 2016, property

product (GDP) is expected to

transaction value in Kuala

grow by between 4% and 5%

Lumpur fell by 19.1% year-

next year, which would be

on-year to RM2.05 billion.

slightly better than this year’s estimated growth of 4% to

For the same period, the

4.5%.

sector also saw its volume

Gross domestic product (GDP) is expected to grow by between 4percent and 5percent next year. (Photo: All4One Productions)

dropped 22.3% to 2,599 units

Earlier, Lee said, it was

“As Malaysia is an open

from 3,347 units recorded in

estimated that at least

economy, we are following

the same period last year.

941,446 units of strata

“That means discerning

properties, including

buyers are now paying more

condominiums and

attention to value-added

apartments, would be

features like security, privacy,

completed nationwide by

covered parking space,

year-end.

landscape garden and many

global economic movements,” he told reporters after

“The residential segment

launching the Lavile

dominates the market, taking

Condominium, a resort-styled

up 49.6% of total transaction

residence here on Saturday.

volume, followed by two- to three-storey terraced houses

others,” he said.print and

Lee said with the projection

(13.7%), low-cost flats (11%)

“The number is growing

that the country’s GDP would

and flats (10.9%),” it said.

yearly and the trend now is

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www.PropertyHunter.com.my

more towards quality living.

electronic media.

Booming Secondary Housing Market, Says MIEA Despite market softening,

Providing an overview of

the secondary housing

the current condition, Soma

market still offers the best

Sundram said the property

value in terms of price and

market was still finding its

value.

direction and it was a matter

WM

of supply and demand.

Malaysian Institute of Estate Agents (MIEA) past president

“I see there is more supply

and chief trainer K. Soma

than demand, and the

Sundram said the secondary

demand is based on factors

market would continue to

such as income level,

from a wider awareness,

unregistered transactions,”

move the real estate business

financing and so forth.

there must also be a stronger

he said, highlighting that East

regulation and enforcement

Malaysian states were among

to kerb the activities of these

the highest.

this year.

“Prices have gone up and it’s “Many don’t realise this. It

good that the market is going

is the secondary market

through this period.

transactions that move the real estate business, making

“It is now finding the balance

up to about 80 percent of the

where it should go from here

real estate transactions in the

on,” he said, adding that in

country.

the long run, it would help the market correct itself.

“New projects account for between 20 and 25 percent.

Touching on the activities

It is the secondary market

of illegal real estate agents

that drove the market last

in the country, MIEA deputy

year,” said Soma Sundram.

president Eric Lim said apart

80 percent of the real estate transactions in the country comes from the secondary market transactions

agents.

Lim, who is also the BOVAEA’s “Bulk of the real estate

Estate Agency Practice

agents registered with the

Committee (EAPC) chairman,

Board of Valuers, Appraisers

said for the past three years,

and Estate Agents Malaysia

the firm has been educating

(BOVAEA) are concentrated

the public and creating

in clusters in the Klang Valley,

awareness about the dangers

Penang and Johor.

of transacting with illegal agents, in mediums such as

“In other states, since the these agents thrive on

Melodramatic Lido Four Season Lift Claim Clarified

SB

On a Facebook post made

of the incident and found

retracted her police

by an owner of a Lido Four

that the lift did reset itself

report and lodged

Season unit on January 5th,

and stopped at the 11th floor

another report to

claiming that the lift she

but it did not drop to the

clarify the matter.

got on “drop” from the 11th

7th floor and Ground Floor

floor to the Ground Floor

soon after. The lift in fact

Datuk Gerald Goh,

has been clarified.

returned to Ground Floor

Chief Operating

at the normal speed after

Officer of Kinsabina

Her claim and police report

stopping. The lift’s safety

Sdn Bhd issued a

went viral almost instantly,

features prevent the lift from

statement urging

attracting attention and

dropping in case of a power

owners and

raising concerns of other

cut and other unforeseen

residents to lodge

residents. The police report

circumstances.

their complaints to

stated that the lift stopped at

the Management

the 11th floor and suddenly

The unit owner inside the

dropped to the 7th floor and

lift at that moment went

Ground Floor soon after,

into a panic mode and

“The entire incident

resulting in her needing

lodge a police report was

was misinterpreted

medical attention at Hospital

lodged in an emotional state,

and blown out of proportion

Queen Elizabeth.

which then lead to a flawed

and will definitely affect

statement of the incident.

the prevailing market value

Kinsabina Sdn Bhd reviewed the 3 minutes CCTV footage

print and electronic media.

activities are rather scarce,

first.

of your property. Please The owner has since

know that we are always

Statement by Kinsabina Sdn Bhd

here together with the Management team to solve any problems that you may face”, he said.

www.PropertyHunter.com.my

71

NEWS INTERVIEW

HOT TOPIC

Work-Out Your Rental Budget So, you’re finally taking the next step in your adult life: moving out of your family home and into your new rented apartment. It’s a good start towards independence and a good warm up to get you ready for (gasp!) mortgage in the future. Although not as big a commitment as a mortgage, renting a property is just a big responsibility as any, especially if you’re renting alone and with none to split the expenses with. Here is where working out a good rental budget play a crucial park. Read on as we show you how to draw a sensible rental budget and still have some money to spare for fun. words by Property Hunter

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73

FEATURE HOT TOPIC

.1 .2 .3

Figure Out Your Total Income

Before drawing out a budget, you have to first figure out

how much disposable income you have i.e. the sum of money you get to spend after setting aside money for bills and emergency savings. Knowing how much money you have will give you a clearer picture of how much

you can afford to pay for rental. It helps to also track your spending on a printable balance sheet in order to

minimize unnecessary financial leaks.

Stick To The 25-35 Rule

Ideally, how much you spend on rental should not

exceed 25 to 35 per cent of your disposable income.

This means that, if your nett income (after tax, bills and savings) is RM3,000, your rental expenditure should

not exceed a maximum of RM1,050. Bear in mind that this sum is inclusive of other expenditures, such as utilities (water, electricity, maintenance, etc.) and other household spendings.

Make Compromises

Like anything else in life, working out your rental requires a good deal of weighing in pros and cons

as well as making compromises. For instance, if you’re looking to stay in a popular, more urban neighbourhood, be prepared to fork out more money

on rental. Alternatively, if you don’t mind a longer commute and limited access to public amenities, there

are better rental options in the suburban areas that are more suited to your budget.

74

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4.

5.

6.

Decide On Furnishing Rental prices are very much affected by the furnishing and facilities available in the respective properties. If you should decide that you could do fine with minimal furnishing and facilities like water heater and air conditioning, then you could very well spend more on a bigger property and/or look for a place in a more popular neighbourhood. Otherwise, you could opt for lower rent and choose to invest in furniture instead, which you can take with you when you have your own house.

Save Up For Two Months In Advanced Most landlords require a ‘1+1+utilities’ payment upon signing a contract with a new tenant, which means that you would be required to pay one month of rental as a deposit, which is usually refunded when you decide to move out; plus one month of rental and utilities fee. This means that you will have to save up at least two to three months of rental payment before moving in. Also, don’t forget that you will normally have to invest in one-time household purchases, such as a mop, broom, toilet brush, new curtains, floor mat and so on.

Go Through The Fine Print Some property rentals are pretty straightforward: a set lump sum to be paid each month to cover rent, utilities, management fee and other expenses. However, there are some landlords who still expect you to foot the management fee, property assessment tax, quit rent, utilities and other expenses on top of your monthly rent. In this case, make sure all terms and conditions have been fully understood and agreed upon before you sign the tenancy agreement/contract.

All done?

Welcome to your new home!

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75

HOT TOPIC

HOT TOPIC

USING SOCIAL MEDIA TO DRIVE UP YOUR PROPERTY’S RENTAL The process of renting out your property can sometimes be an emotional and strenuous process. Get creative and make use of all the social media platforms to increase your property’s visibility and engage and attract your ideal tenant. words by Property Hunter

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www.PropertyHunter.com.my

USING SOCIAL MEDIA TO HELP FILL RENTAL UNITS ALLOWS YOU TO MAKE A MUCH MORE PERSONAL AND MEANINGFUL CONNECTION WITH PEOPLE THAN OTHER FORMS OF MARKETING.

I

n today’s modern world, social media is used as a business tool to attract new businesses and help define what your target audience is looking for.

It’s about telling a story and having an indirect conversation with people.

Your present and potential clients use it as a trusted source for everything. It’s where they go for news, entertainment, communication and advice.

In other words, it’s a great way to drive up rentals to your property, maximizing your income and reducing costly turnovers. Being on these social media platforms allow you to reach a greater audience, allowing you to connect your properties with the people that want to be in them.

Using social media to help fill rental units allows you to make a much more personal and meaningful connection with people than other forms of marketing.

However, a simple tweet about available units won’t make the cut – you’ve got to sweeten the deal and get creative to increase your property’s visibility and engage and attract your ideal/potential tenant.

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HOT TOPIC

why do i need to actively post on facebook and twitter, you might ASK?

networks like Facebook and Twitter

to help us grow our businesses.

allow you to blast out your post to

There are so many popular

all your friends and connections,

platforms being used by

asking them to send you referrals.

renters today, so you might be

Twitter, however, is a good

overwhelmed in trying to decide

platform to ask for help, ideas and

the best places to connect. Here

feedback.

are some ways to drive rental

Well… You may never know when

Sometimes, all we have to do

consider when planning your social

is make our needs known in a

media strategy.

a potential tenant or a new owner will pick up your posting(s). Social

interest online that you should

tasteful way and people will step in

‘Pin’ apartment photos on Pinterest

1

Use Pinterest to share photos of your staged rentals.

If your compound has multiple floors, create a pin for each. Incorporate photos of the best amenities you boast as well and relish in the number of users that happily share the details with subscribers and other casual browsers on the social site.

3

Be a resourceful blogger Become somewhat of a local news source not only for current residents, but for prospective ones. It may also be useful to include nearby conveniences such as schools, hospitals, supermarkets – if any. You may be surprised with the amount of hits you’ll get from those searching for places to live as well as things to do in the neighbourhood.

2

Prowl Twitter for questions Many Twitter users will post geo-targeted questions about apartments in specific cities and states, and you can be there ready with a response. Twitter makes it easy to search for related questions and for you to provide quick answers. Invent #hashtags unique to your rentals and the local area so followers can re-tweet.

Link up with prospects on LinkedIn

4

Create a customized home page for your property to connect with residents and even your primary contractors and service providers.

Make personal recommendations for them and collect several recommendations for your property that in return can win over even other competing professionals within your industry and targeted demographic.

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Social media marketing is a relatively inexpensive

You don’t have to be a computer whiz to learn how to

advertising method, which offers an exciting

drive rentals using social media, but you do have to

opportunity to grow quality rentals for your property.

make time for these social media tasks daily, weekly,

Used correctly, it’s a brilliant tool that can boost your

or even on a monthly basis for maximum results and

profile in the community, allow you to stay in contact

efficiency.

with current tenants, and help provide top-notch customer service.

Time Well Spent on Facebook

5

Tease prospective rental hunters searching online for your property in particular by hosting a renter-exclusive Facebook page. Promote fun in your postings by including current/upcoming events, inside community jokes, and things that will inspire individual postings and discussions by building an online community for residents.

Are you making the most of YouTube?

7

Teens, millennials, seniors, and everyone inbetween are drawn to YouTube videos, and if you don’t have a few property highlights and units featured there, you’re missing out on a major social media opportunity. YouTube is a great place to feature a 360-degree property tour, complete with videos highlighting your available units.

Know Your Target Demographic

6

Get yourselves familiar with the local, trendy and favourite social sites. Discover what local forums discuss about; rental properties, issues, concerns, property management perspective and more. The more you’re rooted in these niche communities, the more exposure you can gain for your rental properties or community.

Make networking work for you.

there is no reason why you shouldn’t take advantage of the social media tools available! 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

80

www.PropertyHunter.com.my

www.PropertyHunter.com.my

81

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

82

www.PropertyHunter.com.my

www.PropertyHunter.com.my

83

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

84

www.PropertyHunter.com.my

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 www.PropertyHunter.com.my

85

CONDOMINIUM FOR SALE

Extracted from PropertyHunter.com.my

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

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

86

www.PropertyHunter.com.my

www.PropertyHunter.com.my

87

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

88

www.PropertyHunter.com.my

www.PropertyHunter.com.my

89

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

90

www.PropertyHunter.com.my

www.PropertyHunter.com.my

91

TERRACE / LINK HOUSE FOR SALE

Extracted from PropertyHunter.com.my

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

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

92

www.PropertyHunter.com.my

www.PropertyHunter.com.my

93

COMMERCIAL FOR SALE

Extracted from PropertyHunter.com.my

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

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

94

www.PropertyHunter.com.my

www.PropertyHunter.com.my

95

APARTMENT FOR RENT

Extracted from PropertyHunter.com.my

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

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

96

www.PropertyHunter.com.my

COMMERCIAL FOR RENT

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 www.PropertyHunter.com.my

97

CONDOMINIUM FOR RENT

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

www.PropertyHunter.com.my

CONDOMINIUM FOR RENT

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 www.PropertyHunter.com.my

99