Property Insight April 2016 by PropertyInsight

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COVER STORY

APRIL 2016

AREA FOCUS

BUKIT JALIL HATTEN GROUP TAKES HOSPITALITY TO A NEW LEVEL

MAIN FEATURE

RETAIL: STILL THRIVING IN MALAYSIA KDN PP 18181/04/2013 (033492)

A PR I L 2016 RM7.50(WM) RM9.00(EM)

DEVELOPMENTS Best Family Living Development HomeTree by BCB Berhad Best Leisure Living Development East Utama by CK East Group Best Eco-Urban Development Green Residence by Binastra Land Sdn Bhd Best Mixed Development EkoRiver Centre (KL River City) by Ekovest Berhad Best Facilities Development Atlantis Residences by Teladan Setia Sdn Bhd Best Refurbished Development The Resident @ Ampang South by OCR Land Holdings Sdn Bhd Best Self-Sustained Development Temasya Glenmarie by I&P Group Sdn Berhad Best Hi-Rise Development - Northern Region TreeTops Residency by Team Keris Berhad Best Hi-Rise Development - Southern Region The Elysia Park Residence by BCB Berhad Best Hi-Rise Development - Central Region Lakeville Residence by Mah Sing Group Berhad Best Luxury Landed Development Lambaian Residence by Anvil Development Sdn Bhd Best Landed Development Hijauan Enklaf @ Alam Nusantara by Selangor State Development Corporation (PKNS) Best Boutique Lifestyle Development Rimbawan Residences by De Centrum Land Sdn Bhd Best Transit Oriented Development Kuala Lumpur Sentral CBD by Malaysian Resources Corporation Berhad Best Integrated Development Times Square Ipoh by Team Keris Berhad Best Hill-Top Development Foreston by Bukit Hitam Development Sdn Bhd Best Luxury Lifestyle Development City of Dreams by Ewein Zenith Sdn Bhd Best Urban Lifestyle Development H20 @ Ara Damansara by Titijaya Land Berhad Best Hybrid Development Rencana by CK East Group Best International Destination Development The Meridin @ Medini by Mah Sing Group Berhad Best Themed Resort Ramada Lumut Resort by KB Group (Malaysia) Sdn Bhd Best Eco-Urban Township Development Southville City by Mah Sing Group Berhad Distinctive Lifestyle Township Development Seri Austin by United Malayan Land Berhad Best Sustainable Township Development Sunsuria City by Sunsuria Berhad Best Township Development Alam Impian by I&P Group Sdn Berhad

Congratulations TOP 10 DEVELOPERS Ekovest Berhad I&P Group Sdn Berhad IJM Land Berhad Mah Sing Group Berhad Malton Berhad Malaysian Resources Corporation Berhad Sime Darby Property Sunsuria Berhad United Malayan Land Berhad WCT Land Sdn Bhd

DEVELOPERS Best Emerging Developer Skyworld Development Sdn Bhd Distinctive Developer Binastra Land Sdn Bhd Best Affordable Housing Developer Syarikat Perumahan Negara Berhad (SPNB) Best Boutique Developer Alfranko Development Sdn Bhd Best Township Developer Matrix Concepts Holdings Berhad Outstanding Developer - Northern Region Asia Green Group Outstanding Developer - Southern Region BCB Berhad Outstanding Developer - East Malaysia Wah Mie Group

SPECIAL RECOGNITIONS Personality Of The Year Dato’ Ir Jauhari Hamidi Outstanding Young Developer Dato’ Sri Dr Vincent Tiew Leadership Excellence Award Dato’ Simon David Leong Most Aspiring Personality Dato’ Colin Tan

PROPERTY SHOWCASE 2016 EVENTS CALENDAR

A place where the right people meet to achieve their dream homes & investments PIPDA GALA DINNER 2016

PROPERTY SHOWCASE

SHANGRI-LA

NU SENTRAL

Kuala Lumpur

KL Sentral, KL

1 APRIL 2016

13 – 19 APRIL 2016

night

days

PROPERTY SHOWCASE

INVESTORS’ HOT PICKS PROPERTY SHOWCASE

QUEENSBAY MALL

4 days

KOMTAR JBCC

MID VALLEY EXHIBITION CENTRE

Penang

Johor Bahru

Mid Valley Megamall, KL

12 - 15 MAY 2016

3 – 5 JUNE 2016

3 days

15 – 17 JULY 2016

HOME+ & PROPERTY SHOWCASE

PROPERTY SHOWCASE

IPC SHOPPING CENTRE

CHERAS LEISURE MALL

PARADIGM MALL

Mutiara Damansara

Cheras

Kelana Jaya

25 – 31 JULY 2016

02 – 07 August 2016

12 – 14 AUGUST 2016

days

PROPERTY SHOWCASE

PRISM 2016

GURNEY PLAZA

SETIA CITY CONVENTION CENTRE

days

Penang

Shah Alam

27 – 30 OCTOBER 2016

5 – 6 NOVEMBER 2016

days

We look forward to collaborating and partnering with you Enquiries: +6012-2050 911 / janet@propertyinsight.com.my

EDITOR’S NOTE

EDITORIAL

Comfort to be uncomfort

KK Chua, Editor

nother month, another set of challenges, but the same resilience from the passionate team here at Property Insight. This month we persevered through delivering our monthly issue whilst simultaneously preparing for our Property Insight Prestigious Developer Awards (PIPDA) 2016 night on the 1st of April. But trust us when we say this is one of our renowned events, so do not let the date fool you – pun intended. On our cover this month is another charming mogul from Hatten Group, Dato’ Edwin Tan. He tells us at Property Insight how it feels to work in the renowned Hatten Group alongside other family members and where the group will be in the future. This month, our Senior Writer, Fara went over to Bukit Jalil to get a glimpse of the up and coming area, whilst having fun with some drones as well. You’ll get to see the aerial view video of this area as well, by scanning the QR code given to enjoy the view from wherever you are! We had fun visiting the young entrepreneur responsible for the ever famous Chatime Malaysia, Mr Bryan Loo, for Personality of the Month. Bryan shares with us his journey of investing in commercial property and how that has helped him be where he is today.

As investors and home buyers as well (at some point!), we figured it would be informative to write a feature on guarantors. Avinash has all the answers for you in one article. Should you become someone’s guarantor? Do you know what that entails? Read this interesting piece before making an informed choice on the matter! March was fun and hectic at the same time as we travelled to Penang for an event, and concurrently decided to write about the property market there as well. We also featured Sekeping Kong Heng in our Destination section, for those who want to relax and unwind, or if you have any ideas of opening up your own version of Sekeping Kong Heng! PIPDA 2016 is a baby we have all been working hard to deliver for these past few months, to present the best of quality to our unsung heroes. We hope all our hard work and efforts show, as appreciation to all the stakeholders involved. Check out our special pull out for PIPDA 2016 and get to know our acclaimed winners! Our winners were always inspirations to us here at Property Insight, hence when PIPDA was launched in 2015, we put in words how we felt. “Awards are meant to inspire. This time, it is the other way around.”

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Editor-In-Chief KK Chua kkchua@propertyinsight.com.my Writers Fara Aisyah Firdaus Petial Natasha Gideon Avinash Sagran CREATIVE Art Director Sarah Tan sarah@propertyinsight.com.my Designer Irman Hakim BUSINESS DEVELOPMENT General Manager Janet Loh 012-205 0911 janet@propertyinsight.com.my

Armani Media Sdn Bhd (1032085-H) No. 32-3, Jalan Pekaka 8/4 Seksyen 8, Kota Damansara 47810 Petaling Jaya, Selangor Tel : +603 6156 3366 Fax : +603 6156 3399 PRINTER Percetakan Osacar Sdn Bhd Lot 37659, No. 11, jalan 4/37A Taman Bukit Maluri Industrial Area Kepong, 52100 Kuala Lumpur, Malaysia ENQUIRIES enquiries@propertyinsight.com.my

PropertyInsight

Although every reasonable care has been taken to ensure the accuracy of the information contained in this publication, neither the publisher, editors, writers nor employees or agents can be held liable for any errors, inaccuracies and/or omissions. The contents of this publication do not constitute investment advice. It is intended only to inform and illustrate. No reader should act on any information contained in this publication without first seeking appropriate professional advice that takes into account their personal circumstances. We shall not be responsible for any loss or damage, whether directly or indirectly, incidentally or consequently arising from or in connection with the contents of this publication and shall not accept any liability in relation thereto. The views by our contributors expressed here are their personal opinions and do not necessarily reflect Property Insight’s views. The publisher does not endorse any company, organisation, person, investment strategy or technique mentioned in this publication unless expressedly stated otherwise. The publisher does not endorse any advertisements or special advertising features in this publication, nor does the publisher endorse any advertiser(s) or their products/services unless expressedly stated to the contrary. All rights reserved. No part of this publication may be reproduced in any form or by any means, including photocopying and imaging without the prior written permission of the publisher.

CONTENTS

20 PERSONALITY OF THE MONTH

Brewing Success in Modern Tea

The story of Chatime Malaysia Bryan Loo’s true calling

ROOKIE INVESTOR

52 14

Winning Big in a Rich Man’s Game

Thus, while many are still struggling to service their mortgages at 30, Abel has attained a few properties at only 22

INVESTOR NEXT DOOR COVER STORY

Hatten Group Takes Hospitality to a New Level

Hatten Group Deputy Managing Director Dato’ Edwin Tan says it is only natural for the group to inject its winning DNA into its hospitality business, and thus plans to expand from 1,100 to 8,000 rooms by 2020

Practicing and Properties Makes Perfect

A lawyer by profession, but an investor by passion, Dato’ Teh Tai Yong tells us his secret to balance and success

INDUSTRY INSIGHT

Building a Real Estate Brand

FEATURED PROPERTY

Opportunities are out there for those who take risk

HOME PLUS

Setia EcoHill - Semenyih’s Sanctuary

With specifically themed landscapes for each area, Setia EcoHill proves comfort and aesthetics can go hand in hand

DESTINATION - RETREAT

Sunsuria City

The smart city offers residents a balanced lifestyle while not compromising on perfection in every aspect

MAIN FEATURE

Retail: Still Thriving in Malaysia

Malaysians are resilient. We are not going to let things disrupt our lives so easily

Of Spaces and Passions

Exploring interior design with PDI Design & Associates

Sekeping Kong Heng

Wake up to the heady aroma of white coffee that perfumes the air in the mornings, listen to the cacophony of banter between hawkers, go on a culinary adventure and experience living in the heart and soul of Ipoh

LEGAL

Best Time For Home Ownership Yet?

FEATURE

STRATEGY

Ready to be a Guarantor

There is no turning back

Penang Island: The Pearl of the Orient

Evaluating Penang Island’s property market with REHDA Penang Chairman, Dato’ Jerry Chan and Director of Henry Butcher Malaysia (Penang), Dr. Jason Teoh

E.O.I. Approach to Real Estate Investing: 3 ‘E-Factors’

Developers & Investors Should Know

Buying a Home for Own Stay – Should We Buy it Just

Because We ‘Like’ it?

Know Your Competition

AREA FOCUS

FINANCE

Bukit Jalil: The Next Investment Hotspot

A must have in your portfolio

Financial Management by Smart Financing - Part 1

NEWS & EVENTS

M20 - MANSION TWENTY PULAU PINANG th 26 FEBRUARY 2016

WHERE INTELLECTS CAME TOGETHER

roperty Insight has expanded to the Pearl of the Orient! Our Social Night in Penang was a night of merriment amongst our business partners, mainly consisting of developers from around Penang, namely IJM Perennial Development, Mah Sing Group, Plenitude Bayu, PBB Property Development, BDB Land from Kedah and many more. Our event was also revolved around sharing of market sentiments by the Henry Butcher Malaysia â&#x20AC;&#x2DC;s Penang team, presented by the Vice President of Business Strategy & Marketing, Max Wong. Miichael Yeoh from GM Training Academy was also there to share with us on financial related issues. The attendance was beyond expectation and we would like to thank everyone who made the time to be with us on such an influential occasion.

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BEN’S, PUBLIKA SOLARIS DUTAMAS 04th MARCH 2016

SOCIAL NIGHT AND PROPERTY SHOWCASE

roperty Insight held a Social Night at Publika from on the 4th of March. It’s Managing Director, KK Chua gave the opening speech followed by a sharing session by Jeevan Sahadevan of Business Coach Legend, Action Coach Sdn Bhd and Vince Tan of Shock Media Studio Sdn Bhd. The event was graced by more than 80 attendees with Chris Tan of Chur Associates making an appearance. During the event, Jeevan shared his insights on building customer relationships and a succesful business surrounding, an element which was the key driver of the event. The event also brought numerous networking and partnership opportunities amongst attendees.

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NEWS & EVENTS

BRAZZO RESTAURANT & LOUNGE JOHOR BAHRU 11th MARCH 2016

CATCHING THE WAVES OF THE SOUTHERN PROPERTY HOTSPOT

ith the constant buzz surrounding the Iskandar development, the Property Insight team hosted a social night at Brazzo Ponderosa and Lounge at Taman Ponderosa. The event was graced by Datoâ&#x20AC;&#x2122; Soo Kai Chee and KK Wong Managing Director of Property Insight, along with more than 70 developers looking to explore opportunities to expand their footprints in Johor. The event was attended by Tiong Nam Properties, Tropicana Corporation, Glenmaries Properties, IOI Group, CI Medini, MB Group and many other renowned developers. The event saw a sharing session by Ryan Khoo from Alpha Marketing SG where he shared 10 predictions for the Malaysian Real Estate climate.

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PROPERTY SHOWCASE WITH A MULTIMILLION OUTCOME

roperty Insight held a property showcase in Publika from the 4th to 6th March. We had numerous prominent exhibitors namely Mah Sing, Hatten, Titijaya, Tropicana, Sime Darby showcase some of their latest and finest releases in the 3 day event. By the end of the event, a combine total of RM32 Million in sales was achieved, increasing the confidence in the property market. The weekend crowd certainly had a good choice and selection to observe. Throughout the 3 day showcase, guests were serenaded by talented home-grown artists like Fikri Hisham, Brendan De Cruz, Hilmy Amin, Ian Tai and Quintessential Live Band. Rhythm of charity played a few sets with the proceeds donated to support Rumah Kanak-Kanak Angels

CIDB AND REHDA COLLABORATES TO PROMOTE SUSTAINABILITY

ELANA JAYA, Mar 3, 2016: The Construction Industry Development Board (CIDB) Malaysia and the Real Estate And Housing Developers’ Association (REHDA) Malaysia entered a momentous partnership today with the signing of a Memorandum of Collaboration (MoC) to promote low-carbon and sustainable practices as well as to increase the deployment of the Malaysian Carbon Reduction and Environmental Sustainability Tool (MyCREST) amongst developers and construction industry players in Malaysia. The signing ceremony was represented by Ir Ahmad ‘Asri Abdul Hamid, the Chief Executive of CIDB Malaysia and Dato’ Ir. Soam Heng Choon, the Deputy President of REHDA. As part of the collaboration, CIDB and REHDA will be initiating regular awareness programmes to increase the understanding of the MyCREST green rating tools among developers and key industry players. Furthermore, the collaboration also seeks for greater exchange of expertise and knowledge on sustainability between CIDB and REHDA. www.propertyinsight.com.my APRIL 2016 I 11

NEWS & EVENTS

MANAGED CARE INKS COLLABORATION AGREEMENT WITH ROCKWILLS TRUSTEE AND KENANGA

MALAYSIAN ANNUAL REAL ESTATE CONVENTION (MAREC ‘16)

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uala Lumpur, 24 February 2016 –Managedcare Sdn Bhd (“Managedcare”), a wholly-owned subsidiary of Aged Cared Group Sdn Bhd, today inked a Collaboration Agreement for the launch of CareTRUSTTM with Rockwills Trustee Berhad (“Rockwills Trustee”) and the Wealth Management arm of Kenanga Investment Bank Berhad (“KenWealth”). CareTRUSTTM is a living trust where an individual’s monies areset aside to ensure provision of continuum care that is financially stable in the event of failing health and or long term retirement care. CareTRUSTTM encourages Malaysians to sustain a decent post retirement lifestyle and sufficient funding for their long term care needs. Rockwill Trustee is the independent trustee for CareTRUSTTM and is given custodial rights to manage the funds. As a trustee they will safeguard the client’s interests by monitoring and disseminating the monies for care according to their instructions. For those interested can engage Managedcare at info@managedcare.com.my

angsar South, 11 March 2016 Themed ‘Elevate to Differentiate’ MAREC’16 saw the gathering of real-estate practitioners and property investors to tackle the threat of illegal brokers and the recent risk of disintermediation posed by digital platforms. Datuk Sr Faizan Bin Abdul Rahman President of BOVAEA officiated the event and mentioned the topic covered will equip everyone with new tools, strategies and mind-sets that will help drive the real estate business and consequently, the industry to the next level of excellence. MIEA 16th President Erick YT Kho begun an ICT initiative with tagline “GROW WITH IT” to achieve effectiveness, reliability and quality services to their customers furthermore leveraging ICT to transform and grow our professional and business practices.

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COVER STORY

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HATTEN GROUP TAKES HOSPITALITY TO A NEW LEVEL

Hatten Group Deputy Managing Director Datoâ&#x20AC;&#x2122; Edwin Tan says it is only natural for the group to inject its winning DNA into its hospitality business, and thus plans to expand from 1,100 to 8,000 rooms by 2020 BY: NATASHA GIDEON

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COVER STORY

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atten Group has come far from where they were in 2004. Despite being only twelve-years-old, they have carved a name for themselves in the property development industry. Hatten Group today is the result of the whole new facelift and rebranding of LianBang Ventures which started as a development company in 2004 and known for its flagship project Dataran Pahlawan Melaka Megamall. Property Insight was fortunate to have an exclusive interview with Hatten Group’s Deputy Managing Director Dato’ Edwin Tan, who shared with us the journey towards the success of the group. In the discussion, Edwin shared his views on the direction of the company as well as shed some light on qualities that have become winning formulas for Hatten Group. The group’s accolades speak of their reputation and this includes 2015 Influential Brand Awards and Malaysia Property Press Awards 2015. Hatten Group has grown into a reputable luxury developer over the years, thanks to a transformation of the group led by Dato’ Edwin Tan and his brother Dato’ Colin Tan, who is the group’s Managing Director. “The group was established in 2008 with proper rebranding and consolidation of our other companies,” says Edwin adding that the transformation was necessary for the family-run business. Edwin, a graduate in Human Resource and International Business, was never pressured into joining the family business and had the interest in the business even before he entered college. Thus, it was only natural for him to follow the footsteps of his elder family members. “I studied courses unrelated to construction or real estate but similar in terms of management. After graduating I joined my father, Datuk Wira Eric Tan Eng Huat, Group Advisor of Hatten Group, straightaway.”

“Hopefully, at the end of the day, my younger brother will join myself, Colin and our sister so we can work towards having a professionally run company and eventually become members of the board. That is the plan in the long run,” he adds. Edwin always had his father, Datuk Wira as his mentor. Datuk Wira has great influence in exposing Edwin and his siblings to the business, all for the purpose of grooming them to helm the captainship of the Hatten Group today. The only time Datuk Wira encouraged his two sons to take time off was when they needed to focus on their education. “I have always been interested in property because I was exposed to it day in and day out. At the time, being young, I was still trying to get a feel of what it would feel like. I was exposed to construction work, the learning foundations of the building and even in admin and accounts,” says Edwin. Edwin took over the captainship of Hatten group as Group Deputy Managing Director in the year 2008. He now envisions that the

group should not only grow organically but sees diversification as a source of growth. Hatten’s core business is more than just property development. Among all the branches of what Hatten Group does, Edwin says he has an undying affinity towards the hospitality part of it. Edwin always had a knack for managing projects and thus managing post investments only comes naturally to him. Perhaps these are the areas where Edwin will be banking on for future growth. Nonetheless, the legacy of the Hatten Group, which was first set in stone by Datuk Wira, will always be the brand affinity the group has built throughout the years. Hatten’s commitment to quality produces an enduring trust towards its product something that all developers strive to achieve. Hatten Group’s reputation is not only established in Malaysia but also in Singapore, where a local publication named the group as one of the preferred brands in the industry. What’s next for Hatten Group? Edwin says it is only natural for the group to inject its winning DNA into its hospitality business, and thus its plans to expand from 1,100 rooms to 8,000 by 2020. Apart from growing capacity, Edwin says the group is toying with a few bold ideas to set the themes of the hotels. “We decided to choose a (theme) more towards business leisure hotel, not a family attraction.” “By the year 2020, expect to see 5,000 rooms in Melaka.” As a group only passing its 12th birthday, Edwin admits that there will be more challenges for the group as it reaches the pinnacle and what more to venture big into the hospitality business, where there is plenty of competition. “It is quite difficult being in the hospitality sector, whilst still trying to make a brand for www.propertyinsight.com.my APRIL 2016 I 17

COVER STORY

ourselves in Malaysia or any other region for that matter. Hatten Group is new and small.” “We aim for 500 rooms a year whilst our competitors increase theirs by 15,000 to 16,000. We are still a far cry from international standards but we are working just as hard, if not more for the same opportunities and brand excellence” Hatten Group’s developments in the area of hospitality include Hatten Hotel, Estadia Hotel and soon a three-star Nobleton Hotel. There are more mixed-development projects underway namely SilverScape Luxury Residences, Imperio Mall and Imperio Residences. Hatten Group recognises that without the support of other stakeholders, particularly the society at large, it would not have achieved its milestones. Hence, the birth of their Corporate Social Responsibility (CSR) program under its unit, Hatten Cares, designed to help the surrounding community focused towards animals, people and the environment. These efforts have begun in Johor, Negeri Sembilan and Pahang. “When we first started we did not have as many CSR initiatives as we do now, but as we progressed, so did our CSR efforts. Before we started building, the field was a way of business for the locals, so we created job opportunities away from the sun and rain, allocating and providing sufficient space for them to do business and showcase their art and culture,” says Edwin. Terminal Pahlawan is an example of how locals are given the opportunity to share their culture and provide for their families at the same time. “We’re promoting and educating visitors on the Peranakan Culture, but other than that, being Buddhists we thought it would be best to work with Kechara in building a 35-acre retreat centre in Bentong. This project is a significant boost tourism in the 18 | APRIL 2016 www.propertyinsight.com.my

area and increases the standard of living there,” Edwin says. “It is important to have a balance in life. We develop and provide hospitality services but we also believe in preservation and building a better community. It is in our tagline, ‘Building Tomorrow Together’, with the intention of shaping the landscape and building the surrounding community.” Hatten also recognised that it is opportunistic to develop projects in Melaka, which is granted UNESCO status - a status that helps the state make policies for preservation purposes. For example, Edwin says Dataran Pahlawan houses the nation’s Vision 2020 and preserves actual relics of Melaka’s heritage. Hatten has proposed other future developments, including Harbour City, which will be located on an island in the Straits of Melaka, built in the shape of a ship to remind how trade is an important cog of the state’s economy. Like any other businessman, Edwin does have concerns in regards to the local economic climate. Nonetheless, he sees a golden opportunity with the depreciation of the Ringgit, especially in tourism. Melaka, being an epicentre of tourism, thus presents Hatten Group something better than just a silver lining. “Tourism is getting better, especially with Singaporeans, or Chinese from China. Malaysia is seen as a great place to spend their money, seeing as they are getting the better end of the deal,” Edwin explains. Despite the milestones and opportunities, Hatten Group is not resting on its laurels as it is aiming for greater things. “We too want to list the company. We also aim to be the brand people immediately relate to investments and first homes.” “Most of all, we aim to have Hatten Hotel in every state in Malaysia and go international

at some point. Right now we’re looking at enhancing investment values that investors place with us. We look at enhancing our tourism rate and marketability of the state itself.” As a person who has had ample experience in the hospitality industry, Edwin hopes to not only develop and sell but to enhance the surrounding values of these areas. “We don’t want to be a developer to just build and sell when we can bring the surroundings up a notch higher and increase the standard of living as well. Beyond Melaka, Hatten Group has also extended its projects to states like Johor, Negeri Sembilan and also Pahang. Edwin’s growth strategy includes a proper corporate structure of the Hatten Group, which now has one Development Arm, which is led by his brother Colin and an Investment Arm. Edwin says the group will most probably see new additions to the family business while his father Datuk Wira remains as their main advisor. “Under the tutelage of my dad, I hope to take this group to a higher level.” “My youngest brother is 15 and is already interested in the business. My sister is good at speaking so she is training for a Corporate Communications position, doing her English Literature major at the moment.” As for Edwin, a visionary himself, the group is on track to realise their visions beyond generations and to him, hard work and good team synergy will propel the group to greater heights. “Our vision and tagline exists to let people know that we are here to help build a future for everyone, and the following generations.” “At the end of the day, it’s all about teamwork within the family and the team. We took quite some time and effort to get where we are, but it has all been worth it.”

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FEATURED PROPERTY

SETIA ECOHILL – SEMENYIH’S SANCTUARY With specifically themed landscapes for each area, Setia EcoHill proves comfort and aesthetics can go hand in hand BY: NATASHA GIDEON

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ithin the hilly and cooling Semenyih, lies a sanctuary of wellness, design and liveability. Setia EcoHill provides modern homes, designed for those who dream of tranquillity within reach of the city centre. “With a GDV of RM4.0bil, Setia EcoHill will be a mixed development, bungalows, zero lot bungalows, semi-detached units, terrace units, high-rise apartments and commercial units. This low-density enclave will boast just 10 units per acre,” explains the Deputy General Manager, Sr Koh Sooi Meng of S P Setia Sdn Bhd. With an overarching objective of achieving the right balance between man and nature, Setia EcoHill is targeting a population of 30,000 once this township is fully developed in 10 years’ time.

LIVE This modern township of 673 acres is equipped with high end amenities which are also environmentally friendly, hence the tagline ‘Live Green!’ with 80 over acres being park land and green spaces. Among the amenities invested for Setia EcoHill is their pride and joy, the 360° Club House situated at the highest point of the area, with a breathtaking view of the surrounding areas. The club house is built up of 350,000 sqft with amenities specifically for the residents in the area. Construction for the

club house commences early April 2016 and will tentatively reach completion within 2 years. You will also be able to admire and appreciate the beautifully curated landscapes around Setia EcoHill from the top of the club with its 360° view with reastaurants at the top floor. For enquiries on retail outlets in 360° Club House, please contact Group Leasing Senior Manager, Joanne Ang (+6019 657 2312) Setia EcoHill is built in such a way that anyone who enters and feels the Setia EcoHill experience will feel at home just

We are committed to this township, and we have proven that by being a fast track development delivering what we promise. We’re here to create not only homes, but value all around” - Sr Koh Sooi Meng

Floris Collection

by driving by. With specifically themed landscapes for each area, Setia EcoHill proves comfort and aesthetics can go hand in hand. Apart from the town park, Setia EcoHill boasts a number of theme parks and gardens, each planned as a unique interactive experience. With evocative names like Oriental Garden, Sunbird Walk, Weeping Meadows and Grassland Park, these enticingly landscaped spaces will draw residents and visitors outdoors to enjoy the active and contemplative facilities provided. Deeper in Setia EcoHill, a beautifully blooming area of residences exist. The Floris Collection is located in the gated and guarded precinct of Horizon Residence. Its concept was inspired by the desire to create a sustainable yet luxurious environment that offers serenity and peace of mind. These super-link units at 23.6’ X 76’ with a 2,563 sqft built-up, are a fine-tuned version of earlier units built in Setia Alam, which have appreciated by a big margin in the past few years. Units in Setia Alam sold for RM600k in 2009, and is valued at RM1.1mil now. The Floris Collection is a fine tuned version of that, with practical layouts and new improved floor plans. The security system includes the PIDS Agilfence system with CCTV surveillance, arguably the world’s most advanced perimeter security system which is also

Open space kitchen for a scrumptious cooking experience

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FEATURED PROPERTY used by Singapore’s Changi Airport. Other key components are 24-hour security patrol within the precinct, individual home alarm system with intercom link to central guardhouse, and an access card system with guest recognition/registration features. The super-link houses in The Floris Collection offer generous built-ups. In the living area, the flexible open-plan design concept with high ceilings enhance the sense of spaciousness even further. The floor plans emphasise practicality. Upstairs, instead of the family room, the master bedroom has been extended to allow flexibility for a baby’s room or study. A covered lanai in place of a balcony further increases the usable floor space. The lush landscape was designed to promote a healthy community with ample green spaces for neighbours to gather and children to play. The open concept of the streetscape encourages an open and harmonious living environment. Beautiful themed parks are right at the doorstep including Sunbird Walk which is a linear park that connects every unit in Horizon Residences. Other parks that complement the serenity within The Floris are the Musical Garden, Reflection Pond, Oriental Garden and the alluring Grassland Park.

LEARN Apart from ensuring a healthy lifestyle and comfortable living, it is also quintessential for townships to include institutions of

learning to complete the life balance of any modern existing township. We spoke to Mr Jason Graham Baigenk, Headmaster of Tenby International School to speak about what Tenby has in store for residents and those who choose to enroll in the near future. “Tenby International School will be completed by the end of March 2016 and will be operational by September 2016 when we welcome our first batch of students,” he explains. “Tenby International School will add convenience to the residents within the area. We expect to start this year with close to 200 students, but eventually that number is expected to grow to 1800.” In 5 years’ time, Tenby International School aspires to be the absolute school of choice in the area, promising the best education can offer. “We are setting up primary and secondary links with Queens University and Nottingham University and University College of London. Aside from being passionate and dedicated, we will also ensure trained staff, equipped with leadership and development skills.”

WORK The concern regarding areas like Semenyih, is getting to the city, which most times means getting to work. Jalan Semenyih used to be a one-way in and out road and the only accessible road, causing massive jams, and even massive headaches. Thus

the new highway, LEKAS-EcoHill Link was contrived to benefit the residents and ease traffic in the area as well.

PLAY In 2020, Setia EcoHill will see up to 5,000 houses with easily 15,000 residents. Being the visionaries they are, SP Setia Sdn Bhd already has plans to build a retail mall of 200k sqft equipped with commercial lifestyle outlets. “We’ll call it EcoHill Walk, so people will be able to relate to the concept.” If you had Setia Walk in mind when reading that line, you probably get the gist of the concept. “We’ll have 4 levels of retail mall and 80 units of lifestyle commercial shops. It will be the first lifestyle shop concept introduced into Semenyih. We’re building this thinking of a long term investment, an investment in our residents is always a good investment.” The aforementioned will be launched tentatively by the third quarter of this year. All four elements of live, learn, work and play are encompassed within Setia EcoHill, investing in the comfort and tranquility of its residents and future generations. The secret to success, is always within its planning. “We are committed to this township, and we have proven that by being a fast track development delivering what we promise. We’re here to create not only homes, but value all around.” For further information, visit www. setiaecohill.com or call +603 8724 2255

Grassland park at night view

22 | APRIL 2016 www.propertyinsight.com.my

Rainbow Creek

Left to right : Mr Jason Graham Baigenk , Sr Koh Sooi Meng

Oriental Garden

Developer: S P Setia Bhd Group. Location: Between Jalan Lekas Highway and Jalan Semenyih (GPS coordinates: 2.923583, 101.844935). Project: Horizon Residences Product: Floris Collection Type: Super-link houses Total unit: 82 units Land Size: 23.6’ x 76’ Built-up: from 2563 sq ft Selling Price: Minimum RM 798,000.00 Maximum RM 1,076,000.00 Tenure: Freehold Total GDV: RM4.0 bil CONTACT DETAILS For enquiries on FLORIS Address: Setia Ecohill Sdn Bhd (903607-T) Setia Ecohill Welcome Centre No 2, Jalan Ecohill 1, Setia Ecohill, 43500 Semenyih, Selangor Malaysia Contact No: +603 8724 2255 Fax No: +603 8724 2525 Email: ecohill@spsetia.com Website: www.setiaecohill.com For enquiries on EcoHill Walk & 360° Club House retails Joanne Ang Group Leasing Senior Manager Contact No: +603 3348 2385 HP: +6019 657 2312 E-mail: joanne.a@spsetia.com

360˚ Club House

www.propertyinsight.com.my APRIL 2016 I 23

MAIN FEATURE

RETAIL:

STILL THRIVING IN MALAYSIA Malaysians are resilient. We are not going to let things disrupt our lives so easily BY: NATASHA GIDEON

24 | APRIL 2016 www.propertyinsight.com.my

lthough the development of the Malaysian economy remains strong, with robust economic integration with ASEAN and now with the signing of the TPPA, the e-commerce market is still lagging well-behind other developed nations in the world. We set out to talk to experts and lay-people of Malaysia to ask them their thoughts on the retail outlook this year. Allan Soo, the Managing Director of Savills mentioned in a recent seminar that, “Malaysia has been and will have a tough year ahead with strong headwinds. In 2015, Malaysia saw an overall drop of 20% in same store sales across the board, however all online and outlet retails did well. Johor, however was a different story and made an increase in 20%. Not all luxury retail met with a similar fate. One or two luxury brands saw a sales growth of 75%. In fact, one of the luxury brands opened here in Kuala Lumpur hit their sales target number two in the world and in the whole group, that particular luxury brand ranked number 3 last year, behind Australia and New Zealand. However, even when the market crumbles, the rich keep getting rich.” A lot of malls have sprouted in 2016, in fact, we have close to 58million sqft of malls. Allan says “When the sales density goes up, so does profit margin. However, we will see rentals go south in even the best of malls. We have already seen rental increase consistently for up to 20 years already. In KLCC, even small shops are already rented out for RM120 psf, and can

still go up to RM200 plus psf. Retailers can look for better outlets if they wait for weaker retailers to leave.” The weak ringgit will be an opportunity for tourism and luxury. Foreigners with stronger currencies tend to come Malaysia more often (Singapore - 13.93 million). As the year nears an end, there will be a lot of pent up demand, like when GST was introduced on the 31st march, so there may be many months of people not spending, but eventually things should be okay. Prices have to go down and after a certain point, it (spending & economy) will become positive. Retail is about demographics. We have a population of 31 million. In KL and Selangor alone the population is 7.7 million. Nowadays the urban population makes up of 74%. No one wants to live in rural areas or farms anymore so that is good for retail.” Then again almost 1.9 million households are in greater KL with almost 7 million vehicles. So the retail space is expected to exceed 60 million sq.ft by end 2017. In 2014, 600,000 cars were sold, and all were bought mostly in Kuala Lumpur. The average age of Malaysians are now 27 to 37 so that is good for household population and residential property.” Added Allan. In 2014, we witnessed a staggering increase in new supply, which increased by 9% from 2013 but dropped by 5.1% in 2015. Areas like IKEA Cheras, Atria Shopping Gallery and Mitsui Outlet Mall to name the few. Dato’ Stewart LaBrooy, Executive Chairman AREA Management Sdn Bhd in www.propertyinsight.com.my APRIL 2016 I 25

MAIN FEATURE FIGURE 2: Malaysia retail sales 15% 11.5%

10% 5%

6.9%

7.5% 5.9%

4.8%

4.7%

4.6%

4.5%

4.9%

5.3% 4.6%

3.1%

2.0% -0.8%

-5% -10% -15%

11.9%

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Source: Retail Group Malaysia, The Star. (RGM forecast for 2015 is +3.1% Y/Y, revised down the fourth time. 2014 growth was 3.4%)

his presentation at PEP’s had this to say “In the retail segment, we continue to see the larger, integrated malls outperforming their smaller, stand-alone counterparts.” 1H15 Y/Y retails sales showed flat-tolow-single-digit growth for KLCC, Pavilion REIT, CMMT, and Sunway REIT. IGB REIT’s 1H15 retail sales, however, saw stronger high-single-digit growth. Retail Group Malaysia (RGM) has revised down its Malaysia’s retail sales forecast for 2015 from 4.9% to 3.1% (3.4% in 2014) versus its long-term historical mean of 5-6%. Rental reversions have slowed to 5-10% over three years for KLCC and Pavilion REIT in 2014/15 (vs 10%-13% in 2012/13), and a low-teen rate for Sunway Pyramid mall in 2014/15 (versus a mid-single-digit rate in 2013 and before). IGB REIT’s rental

reversions in turn have been relatively stable YTD in 2015 at the historical rate of 15%. Another sensitive subject that people aren’t really talking about but are thinking, are the DAESH Threats. I talked to Andrin Raj, who is the SEA Regional Director for the International Association for Counterterrorism and Security Professionals-Centre for Security Studies. He had this to say. “The threat from ‘DAESH’ is very real. The modus operandi of DAESH is based on ‘taking control’ and as such is a different threat scenario altogether. The Malaysian authorities have stepped up their security within public places since the Jakarta bombings a couple of months ago. The threat of DAESH within Malaysia and the

In KLCC mall, even small retail lots are already rented out for RM120psf, and can still go up to RM200 plus psf. Retailers can look for better outlets if they wait for weaker retailers to leave” - Allan Soo 26 | APRIL 2016 www.propertyinsight.com.my

region is at a high level.” “Malaysians are generally complacent when it comes to ‘just about anything’. A simple example is a fire alarm going off; you will clearly see that no one actually acts upon it. In the US, it is a law that one has to leave the building when the alarm goes off, even if it’s a ‘false alarm’ as it can be a serious offence under US laws.” The whole of January and February, after news of threats coupled with news reports that retail may not be fairing to well, I set to the streets of Kuala Lumpur to see firsthand how badly the retail market might be affected. At first, with friends planning around the targeted areas, it seemed like people actually took this danger seriously. Then Chinese New Year came around, and there were sales everywhere. A visit to One

In the retail segment, we continue to see the larger, integrated malls outperforming their smaller, standalone counterparts” -Stewart LaBrooy

Source : Allan Soo, Savills

Utama proved how compelled Malaysians felt to shop for good deals. We’d rather risk our safety than not get a good stainless steel pan for 40% off. Since December 2015, Bershka has seen double their sales, even after the DAESH threats. “Sales have increased, actually. We have yet to be affected by neither threats nor GST. That could also be because our target market here in Bandar Utama is mainly Chinese residents and it is Chinese New Year.” Said Phoebe, Brand Manager at Bershka. Other outlets like Hamley’s in Quill City

Mall, right smack in Jalan Sultan Ismail saw a slight dip in sales, but not drastically, comments Far, Admin Executive for GRV Toy Store whom run Hamley’s. In fact, a trip to KLCC during the holidays was quite a bit of a culture shock, even for a KL-ite like myself. There was a queue to go up the escalator, the sea of people was not easily parted and the water fountain outside was packed with tourists and locals alike, taking selfies of the Malaysian pride. Places like Bangsar were full as usual, on weekdays with your average white collared buddies out for a drink, and on the

weekend, brunch hangouts for ladies and a few packed banana leaf shops. Places like ZOUK as well, with its new location, were packed to the brim on Fridays and Saturday nights, as they always are. If you ask me, we Malaysians are resilient. We are not going to let things disrupt our lives easily. To be honest, there were really no drastic changes in the streets of Kuala Lumpur these past three months. In fact, I’m pretty sure if we have a lockdown on the city centre everyone will probably update their Facebook statuses blaming the government for their lack of a social life. www.propertyinsight.com.my APRIL 2016 I 27

MAIN FEATURE

HIGHLIGHT

KLANG VALLEY RETAIL MARKET The weak local currency and recent toll hike are expected to further dampen consumer sentiment over the next six months as disposable income fall Majority of retailers are adopting a ‘wait and see’ approach and caution in their expansion plans amid poor sales performance and reduced profitability. A handful of regional and local retailers operating several brands are taking up larger lots at competitive tenancy terms with attractive rentals and incentives to improve space and cost efficiencies. Despite a high impending supply of circa 4.61 million sq ft by 1H2016, rental and occupancy levels at prime and established regional and neighbourhood shopping malls are expected to remain resilient.

Shopping Centres Scheduled for Completion / Opening in 1H2016 NEW PROJECTS

LOCATION

ESTIMATED NET LETTABLEAREA (SQ FT)

Lulu Hypermarket @ Jakel Square

KL City

300,000

Sunway Velocity Mall

KL Fringe

850,000

Damansara City Lifestyle Mall

KL Fringe

169,000

GLO Damansara (previously known as G Avenue)

KL Fringe

360,000

Bangsar Trade Centre

KL Fringe

230,000

M3 Mall

KL Fringe

200,000

Sunway Pyramid (Phase 3)

Bandar Sunway

62,000

da:mén USJ Shopping Mall

Subang Jaya

420,000

The Square@ One City

USJ25

120,000

Aeon Shah Alam

Shah Alam

700,000

M Square Shopping Mall @ Millenia City

Puchong

380,000

Centrus Mall

Cyberjaya

110,000

Gallerie @ De Centrum

Kajang

160,000

Selayang Star City Shopping Mall

Selayang

550,000

28 | APRIL 2016 www.propertyinsight.com.my

Source: Knight Frank

www.propertyinsight.com.my APRIL 2016 I 29

FEATURED PROPERTY

SUNSURIA CITY The smart city offers residents a balanced lifestyle while not compromising on perfection in every aspect BY: FARA AISYAH FIRDAUS PETIAL

unsuria Berhad is developing a new township called Sunsuria City that is expected to set a new benchmark in its class. The 525-acre project, located at Putrajaya South, Salak Tinggi offers homeowners a balanced lifestyle while not compromising on perfection in every aspect. Sunsuria City consists of a new and modern master plan that aims to provide an all-in lifestyle, combining smart living solution such as ICT ready infrastructure as well as livable and sustainable environments. Located in the heart of Sunsuria City will be the Xiamen University Malaysia

30 | APRIL 2016 www.propertyinsight.com.my

Campus, the first overseas campus of a Chinese university, and also the Kuala Lumpur International Outlets (KLIO). Sunsuria City will be launched in phases of 10 years with integrated components comprising of; • Commercial: Retails and shop-lots, semi-detached shops, offices • Residential: Terrace houses, townhouse, villas, semi-detached houses, bungalows, condominium, serviced apartments • Integrated Development: Serviced apartments and SOHOS, hotels, shopping malls and corporate office buildings

When combined, these components will foster a sense of vibrancy and activation within a multi-functional public realm. Sunsuria City has three lifestyle principles which are Smart, Livable and Sustainable (SLS). SLS will be a beacon that guides the township’s residents to lead a balanced and healthy way of life. The township’s SLS concept aims to create an all-in lifestyle for the public and residents with a touch of sophistication. ACCESSIBILITIES & AMENITIES This master planned township development is strategically located in Putrajaya South, Salak Tinggi – the capital of Sepang district

Jasper Square 2 & 3 - Storey shop office

in Selangor, Malaysia. It is well-connected by the ELITE Highway, MEX Highway, Putrajaya–Cyberjaya Expressway, and North–South Expressway (NSE). What’s more is that Sunsuria City has international accessibility as it is located only a few minutes away from the Kuala Lumpur International Airport (KLIA). The township is adjacent to Salak Tinggi

Accessibility via major highways

Accessibility via ERL

ERL (Express Rail Link) station, which is connected to KL Sentral and KLIA. Underway is a multi-storey park-and-ride facility at the station that integrates public and private transportation. With such high-speed rail services (ERL), and its surrounding areas can travel with ease to the airports and the KL City Centre. Hence, it is no surprise that most

residents of this area and neighbourhood including Putrajaya, Cyberjaya, Puchong, Dengkil, Nilai, etc. comprise of airport staffs and airline crews. Adjacent to KLIA is the Sepang International Circuit where international sports motoracing events, including the Formula-1 Malaysian Grand Prix is held yearly. Apart from the Xiamen University Malaysia Campus, Sunsuria City is also surrounded by up to 40 universities and colleges within a 20km radius. The township is near matured development such as Kota Warisan, Bandar Baru Salak Tinggi, Putrajaya, Cyberjaya. Sunsuria City is well complemented by amenities around it, such as universities, colleges, schools, hospitals, police stations, fire stations, shopping malls, recreation centres and many more. With the uniqueness of the location and amenities, this growing township has a high investment potential for both home buyers and investors. To experience more on Sunsuria City development, please visit www.sunsuria.com or call 03-6142 2727

Developer: Sunsuria City Sdn Bhd (Formerly known as Sime Darby Sunsuria Development Sdn Bhd) Location: Putrajaya South, Salak Tinggi, Selangor Darul Ehsan Property type: Master Planned Township Concept: Smart, Livable, Sustainable Tenure: Freehold Total GDV: Estimated RM10 billion Estimated year of completion: Over 10 years Unique selling propositions: • Freehold Master Planned Township • China’s first overseas University in Malaysia: Xiamen University Malaysia Campus & Kuala Lumpur International Outlet (KLIO) within the Township • Connected to major highways – ELITE Highway, MEX Highway , Putrajaya-Cyberjaya Expressway, and North-South Expressway • Next to existing Salak Tinggi ERL Station, which connects KL Sentral to KLIA • Close proximity to KLIA • Within Greater KL CONTACT DETAILS Address: Suite 1-3A, Main Tower, Sunsuria Avenue Persiaran Mahogani, Kota Damansara PJU 5, 47810 Petaling Jaya Selangor Darul Ehsan, Malaysia. Contact No: +(60)3-6142 2727 Fax No: +(60)3-6142 2227 Email: info@sunsuria.com Website: www.sunsuria.com

www.propertyinsight.com.my APRIL 2016 I 31

FEATURE

READY TO BE A

GUARANTOR There is no turning back BY: AVINASH SAGRAN

32 | APRIL 2016 www.propertyinsight.com.my

ave you been approached by a friend or family member to act as their guarantor? Chances are you have whether for a car loan, student loan or housing loan. With banks tightening lending activity against the backdrop of a tough economic climate, a guarantor’s qualification could influence the outcome of a mortgage application. Before feeling obligated to sign up as a guarantor for a friend or family, it is best if you do not view this matter lightly. You have to keep in mind that being a guarantor is just like applying for a loan but without owning the asset and face the risk of gaining liability. WHAT IS THE ROLE OF A GUARANTOR FOR A HOUSING LOAN? When you become a guarantor for a mortgage loan, you essentially provide the lender confidence in the applicant’s ability

to pay their loan on time. Your commitment is to ensure prompt repayment even if the original applicant is unable to. It is important to note that most banks or lenders will require the guarantor to repay in full if the borrower forfeits payment. According to Jeremy Chong, Legal Associate “a guarantor or a “surety” pursuant to section 79 of the Contract Act 1950 is a person who agrees to pay the debts of a borrower in case the borrower defaults Things turn sour when a borrower defaults in payment. In such circumstance, a guarantor is likely to be entangled in legal proceedings initiated by the lender for recovery of debts. When a borrower and a guarantor could not pay the debts even after a judgment has been obtained against them. Typically, a lender will then find ways to execute the judgment against them. This may include bankruptcy action, seizing and selling off

A guarantor likely be entangled in legal proceedings initiated by the lender for recovery of debts”

- Jeremy Chong

assets, garnishee proceedings (obtaining monies from their bank accounts).” “Hence, do consider the legal

www.propertyinsight.com.my APRIL 2016 I 33

FEATURE

ramifications of becoming a guarantor,” said Chong. Gary Chua the CEO of Smart Financing Co said “To guarantee someone on a credit facility is equivalent to taking up the credit exposure yourself. One should be careful in performing the basic due diligence like know why you are guaranteeing the loan, what is the purpose of the loan, amount, tenure and etc. Especially if it’s beyond family members. Additional step has to be taken if this is done for the purpose of joint investment, both borrower and guarantor should know and detail down their exit strategy bearing in mind that a typical housing loan is up to 30 or 35 years.” BEING A GUARANTOR IS A LONG TERM COMMITMENT It is crucial for everyone to know that being a guarantor is a long-term financial commitment. Thus, before signing on the dotted line, assess your financial capacity thoroughly. If the duration of the loan is 30 years; how do you foresee your cash flow during the period? The reason for this assessment is because majority of guarantor agreement will require the guarantor to make full repayment of the serviced loan should the borrower default. Bear in mind the tough economic times now calls for worst case scenario assessment; you need to be confident you would not be placed in a financial predicament. Being a guarantor will not affect your credit report but if the borrower defaults the outstanding amount will be credited into your credit report and legal implications will be taken against you if you fail to make the necessary payment. WHO USUALLY BECOMES A GUARANTOR AND DO YOU TRUST THEM? According to a seasoned investor Sandeep Grewal, “why would anyone want to be a guarantor in the first place? It is typical if a child or family member is buying their first property then the parent or sibling 34 | APRIL 2016 www.propertyinsight.com.my

becomes the guarantor for this purpose to help them get the required loans but the guarantor needs to have a backup plan, in any event, the borrower defaults. “ He further added that anyone asked to be a guarantor should assess the applicant’s resume. “Furthermore have a security on the part of the property because if the person runs away or defaults.” Consider how much the borrower earns and their job prospects. Understanding the applicant’s track record in managing their money is important. One can track their repayment of their student loans, car loan or their monthly bills to determine if they are responsible borrowers. Cross-referencing with the prospective applicant’s family members or extended social circle would certainly help you to decide whether or not to be his guarantor. It has to be said that it can be difficult to scrutinise someone close to you but doing

so is crucial when making such a big financial commitment. NEED SOME ADVICE One can seek to advise with The Credit Counselling and Debt Management Agency, or commonly known as Agensi Kaunseling dan Pengurusan Kredit (AKPK). The agency set up by Bank Negara Malaysia allows citizens to discuss at length with qualified advisors regarding managing finances wisely, proper use of credit and basic money management. THERE IS NO TURNING BACK Being a guarantor comes with contractual obligations one can never run away from. While helping someone to get a loan is out of your noble intent, it is imperative to do so responsibly and aware of the consequences if things don’t pan out as planned.

EFFECTS OF BEING A GUARANTOR: You are responsible for the loan if the borrower does not make the payments.

It could affect your friendship or relationship.

May affect your credit and assets

You need to track the monthly payments to insure they are being paid.

QUESTIONS TO ASK PRIOR TO COMMITTING AS A GUARANTOR

Why is the ﬁnancier/ bank requiring this: Does the borrower have poor credit, or no credit? Am I prepared and able to make the payments: Can you afford to pay the payments if the borrower does not? How well do you know the borrower: The person asking you to be a guarantor, are they family, a close friend, do you feel they will make the payments? Are there alternatives: What is the loan for, are there alternative ﬁnance options, can they save the money. Consent to get a written agreement with the borrower: Allows you to see how much money is in the borrowers’ accounts and state exactly who is responsible for which part of the loan. What type of security are you providing for the loan: If you provide a 'secured guarantee' by listing assets, avoid listing any items worth more than the debt.

www.propertyinsight.com.my APRIL 2016 I 35

FEATURE

PENANG ISLAND: THE PEARL OF THE ORIENT

Evaluating Penang Island’s property market with REHDA Penang Chairman, Dato’ Jerry Chan and Director of Henry Butcher Malaysia (Penang), Dr. Jason Teoh BY: FARA AISYAH FIRDAUS PETIAL

36 | APRIL 2016 www.propertyinsight.com.my

enang was named the second best place to retire in the world by travel magazine, Conde Nast Traveller. Truly the Pearl of the Orient, the magazine boasts Penang’s culinary wonders, thriving art scenes and historical architectures as top draws that make the island a top retirement destination. The spillover effect on the real estate industry. According to the REHDA (Real Estate & Housing Developers’ Association Malaysia) Penang Chairman Dato’ Jerry Chan, “The market is a bit tough since the global economy is slowing down, and

even our Ringgit is weakening. However, a plus point for Penang is that the tourism industry has gone up.” PENANG DEVELOPERS Developers in Penang face a different set of challenges compared to their peers in the Klang Valley. “(For example) You don’t have counsellors (such as those) in DBKL (Dewan Bandaraya Kuala Lumpur). You have Datuk Bandar or Mayor and the policies are already set-up. If you comply and follow the guidelines, your developments

should be approved accordingly. “However, in the state of Penang, we have counsellors who might raise some issues and request additional conditions in approving your developments,” said Dato’ Jerry. “(Additionally) We all know that Penang developers have been facing difficulty in getting the APDL (Advertising Permit & Developer’s License) approved. The delay in approval not only is a challenge for developers, it is also a depressing experience for first time home buyers.” Dato’ Jerry said there is a silver lining

Image Courtesy : Goh PS / www.flickr.com/photos/27757645@N08

www.propertyinsight.com.my APRIL 2016 I 37

FEATURE

There is delay in getting the approval but it is getting better – it is not a total freeze, there are a few releases already. REHDA and its members have a few successful cases in fighting for the APDL” - Dato’ Jerry Chan

despite the challenges. “REHDA and its members have a few successful cases in fighting for the APDL. Like the PRIMA (1Malaysia People’s Housing Programme), I think the government is looking at it as a win-win situation. The more (supply of) affordable housing coming in, the better it is for the first time home buyers. I think the APDL matter will definitely be resolved but it’s going to take some time.” “Developers must not set their targets too high, they have to be more realistic. The current situation – the tightening of the loan by banks is not a shock to me because I was (already) aware three years ago. During that time, to my great disappointment, the people who suffered are the bumiputras. When they wanted to buy our low-cost units, they could not get their loans approved. I was very upset. Here we are, building affordable housings to help the people – the bumiputras especially, yet the banks are doing nothing to help them.” “I think Bank Negara really need to make a distinction between the people who need to buy their first home and the people who want to buy their fifth home. Doing 50 cheap loans is equivalent to one expensive loan and of course, financially it would be better to do that one expensive loan.But socially, is it the right thing to do?” asked Dato’ Jerry. 38 | APRIL 2016 www.propertyinsight.com.my

WHY PENANG? As stated by Dato’ Jerry, Penang has seven C’s to provide its home buyers and investors: • Choice • Cost • Culture • Cuisine • Connectivity • Care • Coast Penang offers choices in terms of language, homes, educations, hotels and even places of worship. This diversity gives people the ability to easily fit in. The cost of living is also reasonable and furthermore, the housing and rental cost in Penang are

more affordable compared to that in the Klang Valley. The Penang heritage is getting the reputation it deserves. The cuisine is unique because of the diverse culture. Penang also has a good connectivity and care by a good State government. And the most important part; Penang is a coast. There is a saying that if you invest in properties on an island, like Hong Kong, Singapore and Penang, your investment will never go wrong. “I think it’s the question of preference.” Said the Director of Henry Butcher Malaysia (Penang), Dr. Jason Teoh. “Between living on an island and mainland, people would prefer living on an island if they can afford

HIGHLIGHTS The Penang State government has awarded SRS Consortium, comprising Gamuda Bhd (60%), Ideal Property Development Sdn bhd (20%) and Loh Phoy Yen Holdings Sdn Bhd (20%), to be the project Delivery Partner (PDP) to implement the RM27 billion Penang Transport Master Plan (PTMP).The group recently announced their planned rail linkages for the state which includes amongst others a proposed cross-channel LRT linking Gelugor on Penang Island to the Prai Industrial Park on the mainland and then connecting onto two other proposed train services. Eastern & Oriental Bhd (E&O)’s letter of award to China Communications Construction Co Ltd (CCCC) to undertake land reclamation works for its Seri Tanjung Pinang Phase 2 (STP2) comprises 2 packages: award of package 1 to reclaim phase 2A, which comprises the 253-acre (102.4ha) STP2 island and the 131-acre extension of Gurney Drive, for approximately RM1.035 billion, and the conditional award of Package 2 to reclaim a 507acre STP2 island for approximately RM1.285 billion.

The market at the current time is a bit more opportunistic. Today is a buyer’s market – you have choice for you to pick and choose. As long as Penang is concern, the area is still doing reasonably well. Investing in Penang Georgetown heritage area is actually an obvious choice” Source : Knight Frank Research

it. Because they find that Penang has a lot to offer. The travel distance is very convenient and although you still have to put up with the traffic congestion – it is still tolerable compared to Klang Valley.” Dr. Jason added. PENANG PROPERTY MARKET Dato’ Jerry said “We would see some spillovers in tourism, I don’t think employment would be tough. Plus, we have some big things coming up in Penang, such as Ikea in Batu Kawan, reclamation by E&O, The Light by IJM, development by SP Setia, etc. All those new catalysts will bring new demands. I think, there would be some overhang on

- Dr. Jason Teoh

some high rise properties for a while, but landed properties will continue to grow strongly. Landed property prices have not come down and are way ahead of current selling prices.” Dato’ Jerry said the market at the current time is a buyer’s market. “Investing in Penang Georgetown heritage area is actually an obvious choice. We have done a lot of researches and we actually realised that in terms of performance, it (PR1MA) is by far the best performing asset class throughout the whole state of Penang,” explained Dr Jason. “The preference has always been to buy dilapidated or old buildings, where there

is an opportunity for you to seek the right balance in the old and the new – and how do you marry the two into a position whereby you get the best of both world?” Overall, Penang property market seems appealing mainly due to the tourism industry. While it is not isolated from the current weak market sentiment, it gives a very colourful lifestyle to the people – the best of the country’s culinary offerings, historic architecture, a thriving art scene, international-standard health care, and an English-speaking community of expats. Penang also supports the government initiative named ‘Malaysia My Second Home’ (MM2H).

www.propertyinsight.com.my APRIL 2016 I 39

AREA FOCUS

BUKIT JALIL:

THE NEXT INVESTMENT HOTSPOT A must have in your portfolio BY: FARA AISYAH FIRDAUS PETIAL

40 | APRIL

2016 www.propertyinsight.com.my

Bukit Jalil City / Artist’s impression

ukit Jalil is a suburb of Kuala Lumpur, Malaysia located in the centre of vibrancy; with the National Sports Complex on the east, the Shah Alam Expressway on the north, city boundaries to the west, and the Puchong-Sungai Besi Highway as well as city boundaries to the south. It was known as the Bukit Jalil Estate until 1992 when it was developed into the National Sports Complex for the 1998 Commonwealth Games. The Executive Director of Malton Berhad, Hong Lay Chuan which developed the Bukit Jalil City said “The Bukit Jalil suburb has come a long way since the place was developed into the National Sports Complex for the 1998 Commonwealth Games. Today, Bukit Jalil is seen as a new growth area in the south of Kuala Lumpur with fast growing population and is well connected by a synergy of roads, highways and public transportation. It also houses the International Medical University, Technology Park Malaysia, and

the Asia Pacific University of Technology & Innovation.” “We envision Bukit Jalil City which spans over 50-acre of prime real estate to soon become an iconic landmark for the Bukit Jalil suburb in the south of Kuala Lumpur offering cosmopolitan living and vibrant destination for business, shopping, dining, leisure and entertainment experiences,” Hong added. The CEO of Ho Chin Soon Research, Ho Chin Soon himself said in the past, Bukit Jalil mainly catered to those who worked at Technology Park Malaysia, its main industrial area. “However, with new highway extensions, we can see an influx in population growth for Bukit Jalil, catering to those who work in Kuala Lumpur and Petaling Jaya. In the near future, residents of Greater KL including those in Bukit Jalil can be expected to travel conveniently and even work in places like Iskandar Malaysia, and Singapore – thanks to the upcoming high-

speed rail link project,” said Ho. The Director of VPC Alliance, James Wong said most of the high-rise residential properties prices in Bukit Jalil are showing an upward trend except for KM1 Bukit Jalil, Green Avenue, The Treez Jalil Residence and Z Residence. According to Wong, the KM1 and Kiara Residence 2 are developments with DIBS scheme which reflects an artificial hike in the property price during launched date. He said KM1 that was completed in 2014 and market with DIBS scheme is showing price adjustments or corrections, a slight decreased of about 2%. Wong added another reason for the price to remain stagnant in Bukit Jalil is due to the sudden huge completion developments in between 2013 and 2014. Nonetheless, he said the oversupply issue will fade out: “Oversupply of highrise residential development might be the concern in the short term when the newly launched projects are completed www.propertyinsight.com.my APRIL 2016 I 41

AREA FOCUS RESIDENTIAL PROJECTS LAUNCHED IN BUKIT JALIL AREA OVER PAST 3 YEARS NO

PROJECT NAME

PROJECT BY (DEVELOPER)

TENURE

BUILING TYPE

PRICE RM PSF

MIN PRICE(RM)

Exsim Group

Freehold

Condominium

801

578,000

MAX PRICE(RM)

Twin ARKZ

Lamanbayu @ Bukit Jalil

Melati Ehsan Holdings Berhad

Freehold

Terrace / Super Link

472

1,404,000

1,872,000

City Of Green

BJ Homes Development Sdn Bhd

Freehold

Serviced Residence / Serviced Apartment

458 - 596

388,000

550,000

KM1 East

Berjaya Land Berhad

Freehold

Condominium

565- 1,150

1,060,880

2,693,880

The Link 2 Residence

Berjaya Land Berhad

Freehold

Condominium

650 -1,500

431,880

1,835,880

The Andes

Villamas Group

Freehold

Condominium

619 -896

685,000

1,652,060

Denai Sutera @Alam Sutera

I & P Group Sdn Bhd

Leasehold

Condominium

530

605,800

902,800

Parkhill Residences

Aset Kayamas Sdn Bhd

Leasehold

Condominium

504 - 523

555,000

680,000

The Park Sky Residence @ Bukit Jalil City

Malton Berhad

Freehold

Serviced Residence / Serviced Apartment

775 - 980

715,000

MBM Land Group

Freehold Soho / Sofo / Sovo / Soso

1,016

323,185.00

1,630,000 – 2,126,900

Exsim Group

Freehold

Condominium

630

953,190

1,563,300

Bukit Jalil Development

Freehold

Soho / Sofo / Sovo / Soso

691 - 705

416,300

920,600

10.

The Rev.o

11.

The Rainz

12.

Aurora SOVO

Source : Henry Butcher Research

between 2016 and 2019. But because of the scarcity of land in KL, in the long term, the property prices and supply in Bukit Jalil will eventually meet an equilibrium point, driven by the freehold status, close proximity amenities such as highways, LRT stations, etc.” According to the National Summit on Urban Public Transport 2010 report, the population in Klang Valley will grow at

42 | APRIL

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a healthy rate of 1.7% per annum from RM6.6 million in 2010 to RM7.8 million in 2020. It points out to the law of demand and supply, and to accommodate more people, more new residential areas will be needed. BUKIT JALIL CITY There are a lot of big developers currently in Bukit Jalil area, namely Berjaya

Properties with its KM1 East @ Bukit Jalil and The Link 2 Residences @ Bukit Jalil, Trinity Group with its Z Residence, Bukit Jalil Development with Aurora Place @ Bukit Jalil and Aurora Sovo @ Bukit Jalil, Malton Berhad with Bukit Jalil City and many more. Bukit Jalil City, an urban metropolis in Malaysia, is set to create a new dimension of an integrated community development that transcends the diverse lifestyle needs of the urban population with wellness, convenience, leisure, and connectivity at one connected location. Its tagline ‘Connecting Lifestyle, Living & Luxury’ truly defines what iconic Bukit Jalil City development offers. Apart from offering the best-in-class shopping experience, the sustainable and well-connected community are assured of a refreshing gateway via three special built pedestrian bridges connecting residents to the largest 80-acre public park in the Klang Valley. When asked the reason for choosing Bukit Jalil to develop the project, Hong said “We recognise the potential growth of Bukit Jalil within the nodes of KL as it is well positioned in terms of location and accessibility. Bukit Jalil is well-equipped with the superb infrastructure and public facilities which is boasted by the nearby Commonwealth Village, LRT stations,

SUMMARY OF BUKIT JALIL SECONDARY TRANSACTION PRICES OF RESIDENTIAL PROPERTIES SEMI-DETACHED HOUSES Land Area (SF)

3,853 - 7,373

Build-up Area (SF)

3,482 - 4,280

Price (RM)

2,050,000 - 3,080,000

TERRACE HOUSES Land Area (SF)

1,097-4,144

Build-up Area (SF)

1,584-3,188

Price (RM)

1,260,000 - 2,000,000

BUNGALOW HOUSES Land Area (SF)

5,414.24-9,073.97

Build-up Area (SF)

2,784.90-6,256.84

Price (RM)

2,400,000-5,500,000

HIGH RISE CONDOMINIUMS Land Area (SF)

N/A

Build-up Area (SF)

1,020 - 2,457

Price (RM)

560,000 - 1,191,380

Price RM psf

371 - 710

Source : JPPH / Henry Butcher Research

TRANSACTION SALES PRICE OF TERRACE HOUSES NOS

SCHEME

LAND AREA (SQ. FT)

BUILT UP AREA (SQ.FT)

2014

2015

% CHANGE

TENURE

STOREY

Alam Sutera

1,540

2,183

RM920,000.00

Leasehold

Laman Bayu

1,582

2,768

RM1,350,000.00

Freehold

Mutiara Bukit Jalil

1,400

2,308

RM900,000.00

RM1,150,000.00

Freehold

Mutiara Bukit Jalil

1,647

RM1,180,000.00

RM1,200,000.00

4.5

Freehold

to RM1,250,000.00

RM1,310,000.00

RM1,500,000.00

RM1,600,000.00

Freehold

to RM1,600,000.00

RM1,800,000.00

RM1,450,000.00

2.8

Freehold

to RM1,750,000.00

RM1,800,000.00

Bukit Jalil

Seri Jalil Homes

to RM950,000.00

2,034 – 2,885

1,840

3,188

2,662

3,032

Bukit Jalil Sports Complex, Bukit Jalil Golf & Country Resort, International Medical University and the 80-acre Bukit Jalil Recreational Park. More importantly, it is strategically located with excellent connectivity to KL city centre, Petaling Jaya and the Southern corridor via a network of highways and LRT services.” Bukit Jalil City development is set to craft a new dimension in an integrated community development which will bring new lifestyle choice and transform the lives of residents. It is thoughtfully designed and differentiated by offering distinct value propositions through a smart, sustainable and connected community for aspiring homeowners, investors, office workers and shoppers alike. Hong added, “Through the strategic collaboration between the two dynamic and powerful brand names; Malton and Pavilion, Bukit Jalil City offers strong concept, branding and delivery. The iconic development of Bukit Jalil City is the Pavilion Bukit Jalil mall, one of the country’s largest shopping mall to be managed by the award-winning Pavilion Kuala Lumpur retail planning team. Pavilion Bukit Jalil will bring the best-in-class shopping experience and aspires to be the ultimate cosmopolitan shopping hub to attract the increasing affluence of the surrounding populace and tourists.” Residents, office workers and shoppers are assured of a refreshing getaway through a direct access to the 80-acre Bukit Jalil Recreational Park via three special built pedestrian bridges. With all amenities within walking distance, Bukit Jalil City showcases the best of everything that a development has to offer in one inspiring community development, making it a preferred place to live, work and leisure. Malton’s mission is to shape lifestyle aspirations for generations with the focus

Source : Firdaus & Associates Property Professionals Research

www.propertyinsight.com.my APRIL 2016 I 43

AREA FOCUS

Artist’s impression

on design excellence, build quality and timely delivery. The Group has continuously set the benchmark in creating not just harmonious communities in luxury living but serves as an ideal investment for the future. After more than three decades in the property industry, Malton has become a household name when it comes to savvy investments.

“Bukit Jalil City, an integrated community development which sits on a 50-acre freehold land in the heart of Bukit Jalil is no exception,” explained Hong. “This masterplan is crafted on the cornerstones of accessibility, connectivity, innovative concepts and designs, generous open spaces, amenities, facilities, multi-tiered security and quality. Amenities and facilities

TRANSACTION SALES PRICE OF SERVICE-APARTMENT AND CONDOMINIUM NOS

SCHEME

BUILT UP AREA (SQ.FT)

RM (PSF) 2014

RM (PSF) 2015

% CHANGE

TENURE

The Z Residence

1,032 – 1,407

520.00 – 550.00

Stable

Freehold

Green Avenue Condominium

1,076 – 1,087

520.00 -550.00

480.00 – 500.00

-9

Freehold

Covillea

1,292 – 1,421

600.00 – 640.00

610.00 – 650.00

-1.5

Freehold

1,335 – 1,508

630.00 – 670.00

630.00 – 680.00

Stable

Freehold

1,140.00 – 1,700

650.00 – 730.00

620.00 – 750.00

2.7

Freehold

678 – 1,033

400.00 – 460.00

400.00 – 470.00

Stable

Freehold

1,020 – 1,413

500.00 – 600.00

Stable

Leasehold

Condominium 4.

KM 1 Bukit Jalil

The Treez Jalil Residence

Arena Green

Kiara Residence

Savanna 2

1,604 – 1,886

630.00 – 750.00

866.00

Freehold

Savanna

1,212 – 1,291

510.00 – 620.00

510.00 – 630.00

Stable

Freehold

10.

Vista Komanwel

1,163 -1,422

350.00 – 480.00

400.00 – 460.00

-4

Freehold

11.

Surian Wangi

592 – 1,465

280.00 – 410.00

280.00 – 380.00

-7

Freehold

within Bukit Jalil City are thoughtfully planned and created for all ages and community types. High levels of thoughts have gone into the planning and execution to enable homebuyers to reap the benefits and enjoy the extensive amenities that are already in place.” “Infrastructure will be built to improve the accessibility for the growing population in coming years. Our luxury service apartments called ‘The Park Sky Residence’ are equipped with quality furnishings and fittings. This not only elevates the development but effectively ensures that the investment gains value upon completion.” ACCESSIBILITIES AND AMENITIES Bukit Jalil has good infrastructure and wellplanned amenities. It is easily accessible and well connected via an existing network of highways such as Bukit Jalil Highway, KESAS Highway and Maju Expressway as well as a vast network of roads. Other main public transportations include Rapid KL Bus and LRT services via Awan Besar station. Nearby amenities and facilities include the landmark Bukit Jalil National Sports Complex, 80-acre Bukit Jalil Recreational

Source : Firdaus & Associates Property Professionals Research

NEWLY LAUNCHED, NEWLY COMPLETED AND FUTURE DEVELOPMENT NOS

SCHEME

BUILT UP AREA (SQ.FT)

RM ( PER SQ.FT)

DEVELOPER PRICE

TENURE

Twin Arkz

721 – 1,339

760

RM550,000.00 onwards

Freehold

The Link 2 @ Bukit Jalil

667 – 1,218

650

RM431,880.00 onwards

Freehold

SkyLuxe On The Park

661 – 1,214

915

RM605,000.00 onwards

Freehold

The Rainz

1,513 – 1,930

640

RM968,000.00 onwards

Freehold

Pavilion 2

868 - 1565

934

RM811,000.00 onwards

Freehold

Source : Firdaus & Associates Property Professionals Research

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RECENT TRANSACTED PRICES OF TERRACE HOUSES NOS

SCHEME

STOREY

TENURE

LAND AREA (SQ.FT)

BUILT-UP AREA (SQ.FT)

TRANSACTED PRICE IN 2014 (RM)

TRANSACTED PRICE IN 2015 (RM)

% CHANGE

Laman Bayu

1,582

2,768

1,350,000

The Treez Jalil Residence

4,344

2,600,000

2,800,000

7.7%

Jalan Seri Jalil 1

2½

1,841

3,033

1,350,000

1,450,000

7.4%

Mutiara Bukit Jalil

1,647

3,188

1,180,000

1,200,000

1.69%

Jalan Jalil Perkasa

2½

2,034

2,662

1,600,000*

1,600,000

Source : JPPH and VPC Research

Park, Bukit Jalil Golf & Country Resort, Medical University, SJK (C) Lai Meng school, Giant hypermarket, SIRIM centre, Calvary Convention Centre and Astro hub. Nonetheless, Hong said there is room for improvement to the current infrastructure in Bukit Jalil. “New infrastructure will have to keep pace with increased population and development growth.” “While Bukit Jalil progressively made strides into the future, we see a city that offers both connectivity and lifestyle within this self-sustained area. Bukit Jalil City will bring about a renewed excitement, deliver a fresh alternative and attract a large

catchment area within Bukit Jalil itself. Upon completion, Bukit Jalil City will attract a new influx of shoppers, office workers and residents. Hence, this will provide a welcome boost to the business owners while generating thousands of sustainable job opportunities within the area.” He said to support this growing population, Malton will build a new flyover to Puchong, a new 100’ road leading directly to Bukit Jalil City from Jln 13/155C, an underpass leading on and out of Pavilion Bukit Jalil and three new pedestrian bridges directly link to the 80-acre Bukit Jalil Recreational Park. Hong expressed that the GDV (gross

development value) for the entire Bukit City Development is in excess of RM3 billion. “We have seen property prices within the Bukit Jalil vicinity steadily appreciating by about 30%-40% over the past five years.” Bukit Jalil City is set to be an iconic landmark in Malaysia which will transform Bukit Jalil into a more dynamic and vibrant township with excellent connectivity to the city centre and the southern corridor. Classic high-rise residential area will be transformed into a shopping hub where the value of the surrounding properties will increase. Newly developed properties within Bukit Jalil have experienced double-digit

RECENT TRANSACTED PRICES OF CONDOMINIUM/SERVICED APARTMENTS NOS

SCHEME

TENURE

BUILT-UP AREA (SQ.FT)

TRANSACTED PRICE IN 2014 (RM)

TRANSACTED PRICE IN 2015 (RM)

% CHANGE

850,000

835,000

-1.76%

KM1 Bukit Jalil

1,335

Savanna Bukit Jalil

1,216

580,000

620,000

6.99%

Savanna 2 Bukit Jalil

1,604

1,200,000

1,390,000

15.83%

Vista Komanwel

1,227

460,000

480,000

4.35%

Covillea

1,292

780,000

841,600

7.9%

Green Avenue

1,076

515,000

The Treez Jalil Residence

1,700

1,000,000

Greenfield Apartment

990

505,000

530,000

4.95%

The Z Residence

1,232

620,000

10.

Bukit OUG Condo

1,222

360,000

393,000

9.17%

Kiara Residence

1,021

560,000

590,000

5.36%

Source : JPPH / VPC Research

RECENT TRANSACTED PRICES OF MEDIUM COST APARTMENT NOS

SCHEME

TENURE

BUILT-UP AREA (SQ.FT)

TRANSACTED PRICE IN 2014 (RM)

TRANSACTED PRICE IN 2015 (RM)

% CHANGE 6.25%

Arena Green

732

320,000

340,000

Jalil Damai

947

390,000

420,000

7.69%

Sri Rakyat

667

115,000

150,000

30.43%

Source : JPPH / VPC Research

www.propertyinsight.com.my APRIL 2016 I 45

AREA FOCUS NEW LAUNCHED CONDOMINIUM/SERVICED APARTMENT/TOWNHOUSES DEVELOPMENTS NOS

DEVELOPMENT NAME

The Rainz

BUILT-UP AREA (SQ.FT)

ESTIMATE COMPLETION DATE

DEVELOPER PRICE (RM)

PRICE (PSF)

1,513 – 1,930

Mar 2018

From RM953,190

RM630 psf

Twin Arkz

721 – 1,521

2016

From RM550,000

RM763 psf

Denai Sutera @ Alam Sutera

1,141 – 1,884

Jun 2017

From RM605,800

RM531 psf

The Andes

1,105 – 1,843

2018

From RM685,000

RM620 psf

Parkhill Residence

1,100 – 1,300

2018

From RM555,000

RM505 psf

Park Sky Residences @ Bukit Jalil City Phase 1

868 – 1,565

2019

From RM804,000

RM926 psf

Casa Green @ Bukit Jalil (affordable apartment)

825

2018

RM300,000

RM364 psf

Source : VPC Research

Artist’s impression

growth in the past few years. There will also be thousands of new employment opportunities when the shopping mall, hotel and residences are completed. Besides that, the Bukit Jalil National Sports Complex will be transformed into a versatile and modern sports city by 2020. This prolific development in the Greater Klang Valley is in line with our government’s goal to enlist Kuala Lumpur into the top 20 liveable cities in the world by 2020. “This is a good opportunity for both developers and buyers as the time is ripe to invest in Bukit Jalil and foresee good return in the near future. The average growth for house price in KL is 6.17% per annum in the last 22 years. Buyers can expect a good return on investment in approximately five years, once all the road and rail projects are completed,” Ho commented.

Scan here for aerial view video of Bukit Jalil

AGENTS SPEAK JAMES WONG Director, VPC Alliance (KL) Sdn Bhd Ampang Line LRT Extension which starts from Sri Petaling Station and passes through Kinrara, Puchong and ends at Putra Heights is one of the unique selling points of the area. The three new LRT stations go through Bukit Jalil namely – Awan Besar, Muhibbah and Alam Sutera were just completed and start for operation on 31 October 2015. This causes many of the residential property prices within the immediate vicinity of the LRT station are increasing in an average of 6% to 7%. There are notable future developments in Bukit Jalil which are, a 50-acre freehold integrated development known as Bukit Jalil City@ Kuala Lumpur are jointly developed by Malton Bhd and Ho Hup Construction Co. Bhd. It will consist of 3 & 5-storey signature shop offices, luxury high-rise Park Residence, regional shopping mall, proposed hotel or corporate office tower and scheduled for completion in 2019

LIM CHIEN HOW Head of Sales, Reapfield Properties (Bukit Jalil) Sdn. Bhd Bukit Jalil, commonly known as the location for the National Sports Complex is now set to be the next hot spot in Kuala Lumpur. We have all definitely heard about the iconic shopping mall in Bukit Bintang known as Pavillion Kuala Lumpur. In 2019, Bukit Jalil will host its own Pavillion Bukit Jalil which is currently under construction today. This development is a 20.2ha Bukit Jalil City integrated with residential, commercial, office and retail once completed. In terms of facilities and amenities, there are 4 major colleges which are Technology Park Malaysia College, Asia Pacific University of Innovation & Technology, FTMS College and International Medical University. Shops, banks, eatery, 80-Acre Bukit Jalil Recreational Park and Bukit Jalil Golf & Country Resort. Bukit Jalil is a center of connectivity with plenty of access whether to KL city or Klang Valley. Linked from Bukit Jalil Highway, KESAS Highway, Maju Expressway, LRT and other roads. Bukit Jalil residential properties comprises of a lot of condos and apartments up to date. Landed properties compromises from 2sty links all the way to Semi-D and also exclusive bungalows. Bukit Jalil will be expecting more high-rise developments in the upcoming years with plenty of positive points to grab due to its promising future. So, whether you are looking into investment or a new home, Bukit Jalil is definitely a gem not to be overlooked.

46 | APRIL

2016 www.propertyinsight.com.my

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PERSONALITY OF THE MONTH

BREWING SUCCESS IN MODERN TEA

The story of Chatime Malaysia Bryan Loo’s true calling BY: FARA AISYAH FIRDAUS PETIAL

48 I APRIL 2016 www.propertyinsight.com.my

PERSONALITY OF THE MONTH

ryan Loo is another amazing Malaysian male entrepreneur who started off at a very young age. He is the Chief Executive Officer of Loob Holding Sdn Bhd, who is responsible for bringing the popular modern tea beverage – Chatime Malaysia. Chatime is a Taiwanese franchise founded in 2005 with over 800 retail outlets across countries like Taiwan, Malaysia, China, India, Macau, Vietnam, Singapore, Hong Kong, Thailand, Korea, Philippines, Indonesia, Australia, Dubai, Vietnam, Canada, United Kingdom and the United States. THE DAWN Just like any other wage earner who has the desire to own his own business, Bryan decided to leave his job and venture into entrepreneurship at the age of 24 years old. According to Bryan, he had a very strong determination to pursue his own enterprise that he knew he was going to be successful regardless the type of business he would choose. “One day, I called my dad and told him that I’ve decided to venture into Food and Beverage (F&B) business. He asked me why, since no one in the family has ever done business in F&B. I actually went into a few entrepreneurship exhibitions and from my observation, I believe that only F&B business can resist any economic crisis.” The F&B business in Malaysia is huge.

However, after studying the market, Bryan found out that there were three untapped segments in the F&B market. They were namely: 1) tea representative/franchise 2) ‘Grab & Go’ concept and 3) cold beverages to cater the hot tropical weather. “When I was travelling to Taiwan, I learnt that there were 198 modern tea brands with 25,000 outlets in that country. Right at that moment, I knew this is the business that I need to bring back to Malaysia. Why would there be such a modern tea culture in the other side of the world, which is not happening in Malaysia? My first vision was to bring the entire modern tea culture to Malaysia, not just to bring bubble tea – a common misconception people have on Chatime.” TRUE CALLING Bryan’s journey was not entirely a smooth sailing one. He faced a lot of challenges, which eventually became learning curves to propel him to success. “Bubble tea in Malaysia, when it first started, was mainly prepared from powder, while Chatime’s is freshly brewed from tea leaves. When I first brought Chatime into Malaysia, the challenge was to educate the people on our bubble tea. That education process itself takes quite some time to have impact on the people.” “Resilient entrepreneurs must embrace failure and learn from it. As the boss, I always have the privilege to make

decisions, hence I end up making a lot of mistakes. But I grow a lot quicker than other people because of that. As time goes by, the decision making experience will teach you how to make a good one. It’s not about making a right or wrong decision, but making a quick decision, so that if it fails, we can quickly reduce its impact by changing course.” “Entrepreneurship is not a life style but a true calling. The moment you decide to become an entrepreneur, the determination will become much stronger than any other thing in the world. You must understand your intention – you want to become an entrepreneur because you want to change your life. My calling has become stronger and today, it has become my life purpose to make sure I continue to become the leader of my own,” Bryan added. Bryan mentioned that is it very important for young people to not treat entrepreneurship as a life style but as a true calling instead. “You cannot say ‘Because that guy is successful in entrepreneurship, I want to jump into the bandwagon as well cause I know I can be equally successful’ – then you will definitely fail big time. That guy is successful because he has a purpose in it. If you do the thing that excites you, you can feel the fire burning inside. That means you’re doing the right thing! I still feel the excitement and the fire inside me since the first day I established my company.” www.propertyinsight.com.my APRIL 2016 I 49

PERSONALITY OF THE MONTH

It doesn’t matter how visionary you are as an entrepreneur. If you don’t have the pool of people who are willing to get their hands dirty to achieve the vision, you’re just visionary – and that’s not enough” - Bryan Loo

Bryan’s advice to the young generation who is planning to venture in entrepreneurship: “It doesn’t matter how visionary you are as an entrepreneur. If you don’t have the pool of people who are willing to get their hands dirty to achieve the vision, you’re just visionary – and that’s not enough. Visionary goes hand in hand with execution. The only reason I could achieve the things I have now is because I have a team of great people working with me. I need to keep myself reminded even though we need to create so much things out of the organisation, I still have to take good care of my people. Am I making them happy enough so they can provide good services to our customers? These little things are very important for a company.” CHOOSING A LOCATION “Whenever we choose a location, it doesn’t necessarily mean the right one. But after some time in the market, we learned that because Chatime is more to ‘Grab & Go’ concept, we needed to use a different approach. Hence, we started expanding into Shell outlets – because we want to be more relevant in the lives of Malaysians who commute daily. They may not walk into shopping malls everyday, but they go to petrol stations every week. It is necessary 50 I APRIL 2016 www.propertyinsight.com.my

for Chatime to put its footprint there. Of course, location and demographic of target audience are important factors to look into, thus feasibility study is important. In this case, we look into traffic reports of a particular Shell station before the decision to invest is made. It’s the same as retail malls. To me, as a general perspective, retail market is a lot more under-performing this year compared to last few years. We are fortunate enough to say that we had about 6% growth last year. I think it was a miracle, because, the market is tough, to

even have a growth is almost impossible. I think the biggest gratitude goes to the operational team that has managed to pull through a refined SOP within the operations department.” ‘What doesn’t kill you makes you stronger’ - this applies to someone even as successful as Bryan Loo. In his journey towards success, he received many other rejections from the big companies for a franchise, but he did not give up. He then turned to the start-up of Chatime Malaysia, which is now possibly the most popular household brand in Malaysia.

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PRACTICING AND PROPERTIES MAKES PERFECT A lawyer by profession, but an investor by passion, Dato’ Teh Tai Yong tells us his secret to balance and success BY: NATASHA GIDEON

lawyer by profession, but an investor by passion, Dato’ Teh Tai Yong tells us his secret to strike a balance in life. Dato’ Teh is a senior partner at law firm Teh Kim Teh, Salina & Co., which has offices at Setia Alam, Kota Damansara and Johor Bahru. Dato’ Teh, who is also a Visiting Associate Professor at the Southwest University of Political Science and Law China, practiced Law before venturing into property investment. He started practicing in 2005 at Shearn Delamore & Co. and started investing in property later on in 2008. Investing in property came naturally to him as he was already involved in preparing legal documents for property related cases. Since then his interest in property investment grew tremendously and he has never looked back. The first property Dato’ Teh purchased was located in Bukit Jalil. Due to other commitments then, instead of letting the idea of buying the property, he made a wise decision by combining resources with three other friends to buy over the property in 2008 by way of a joint venture. “Like other great ideas, this one started at a ‘mamak’, too. We were having ‘teh tarik’ after a badminton session one day and decided to buy a unit at Vista Komanwel, Bukit Jalil for RM210k. The returns were good and after we sold the property few years later, we made over RM40k each. From there I reinvested into other properties and that’s where it all began.” The risk and capital for Dato’ Teh’s first investment was well spread and today, he

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INVESTOR NEXT DOOR

Have a mission and a goal. Ask yourself why you’re buying before you do anything else. Whether it is for your children or financial freedom, make sure you know why” - Dato’ Teh Tai Yong

has 35 properties in his portfolio. “I had 32 properties when I was 32, so people joke about me buying (a property every year) according to my age,” he chuckled. Amongst the many hurdles along the way, the toughest yet for Dato’ Teh is the financing part of it. “Banks are even more prudent than before and loan approvals are something all of us know are difficult to come by.” But he is positive in this trying time and hopes to see the market stabilise soon. “We hope to see loosening of bank loans and changes in policies. It should be a matter of time.” Besides that, another personal challenge that Dato’ Teh goes through is the accumulation of knowledge he sets to achieve on the property market. “It has and will always be my biggest long term challenge. I constantly keep myself updated with the relevant information.” Dato’ Teh has a multi-prong strategy when investing in properties. “I usually buy and flip units under construction which I choose to buy from reputable developers and sell them off once completed. For positive cash flow, I

usually rent out high rise and commercial properties as they bring in a higher yield.” In terms of managing all the investments at hand, Dato’ Teh ensures he has a good credit score, so that banks are more confident in giving out more loans for his future purchases. “It is also important to keep a cash reserve after vacant possession your property is delivered. That is when you need to service your loan instalment.” He also claims it is important to have a tight screening process to find the best tenants. “I’m not afraid to say ‘no’ to tenants I’m not comfortable with. It’s always important to set a good first impression, leaving them with an idea of how serious you are about payments.” Dato’ Teh seeks for good deals from all channels available and uses that opportunity to find himself investments with good returns. “There are online and offline portals, like magazines and online websites. But I also follow developers with a good track record very closely.” Besides that, he looks out for good townships with excellent potential, hence

he always make sure he is up to date with all the property know-how and knowwhere. Dato’ Teh has three tips he lives closely by when investing in property. “Have a mission and a goal. Ask yourself why you’re investing before you do anything else. Whether it is for your children or financial freedom, make sure you know why.” “Secondly, it is important to have good connections. Keep a good team of strategic partners close so it’s easier for you to deal with your business investments.” He explains the last bit with a laugh. “You also need to know the law! Know the property and banking laws, what amendments have been made, when? For instance, the RPGT (Real Property Gains Tax) may change from time to time. Find out all these things before diving into the market.” For the challenging year ahead, Dato’ Teh urges all investors and investors to-be to keep their eyes open for good deals in both primary and secondary markets. “Good market players will survive this cycle. I’m optimistic about 2016 and I will not take a break this year, that’s for sure.”

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INDUSTRY INSIGHT

BUILDING A REAL ESTATE BRAND Opportunities are out there for those who take risk BY: AVINASH SAGRAN

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ason Doo began his journey as a real estate negotiator in the 90’s when the industry in Malaysia lacked regulations. Being the eldest son in his family, he was motivated to strive for success. Prior to his stint as a real estate negotiator, he foresaw that regulatory bodies and professionalism in a more matured industry would eventually distinguish the men from the boys. With that in mind he started Metroworld Realty Sdn Bhd in 2003. The agency had humble beginnings with the opening of a small office in Puchong. Back in the 90’s, Puchong was identified as a hotspot. The agency started by tapping into the local domestic market catering solely to local homebuyers. Jason’s foresight and bold move paid off today; after 13 years in the industry, Metroworld has grown into a larger entity with over 400 negotiators. The growth stemmed from Jason’s belief that the real estate agencies have to be distinctive in their services; that Metroworld Realty negotiators stood apart in quality and deliverables. Metroworld has 10 offices along the peninsula; they are active in Penang but their primary business comes within the Klang Valley. They cover four key sectors in the real estate market. Firstly the secondary market, targeting both sales and rental from residential, commercial, industrial and agriculture. Secondly new project launches, where negotiators develop key strategies in selling. Thirdly auctions and

tenders and lastly the foreign market. HOW METROWORLD DIFFER The real estate industry has grown leaps and bounds from the 90’s in Malaysia and building a strong brand was key to Metroworld’s relevance in the industry. Jason acknowledged that in a more matured current real estate industry, the approach to selling has changed, and thus, it was imperative to apply different methods when training his team of negotiators. “We as bosses must educate agents on the proper techniques and system of selling, sales alone would not sustain one’s career. Therefore we take the time to build a team with wholesome values to be a proper negotiator.” The company also ensures the negotiators build on their careers to become leaders, managers to CEO’s. They are encouraged to acquire professional certificates and or any equivalent qualifications that enhances their resume as negotiators. Metroworld, which has received ISO certification, continues to strive to reach standards set by international agencies although it is not compulsory. Jason mentioned “I’m inspired by agencies abroad, they are able to provide complete services with such quality effortlessly.” He capitalized on globalisation to increase his knowledge and guide his team from all aspects in the areas of administration, listing and securing properties in the market, as well as in marketing, prospecting to closing a vacant property position.

It is upon us to learn about the needs and specification of the market so we are able to produce sufficient information to our clients” - Jason Doo

TAKING OPPORTUNITIES DURING TOUGH TIMES “The immediate challenge is always getting the right human resource, our agents are assets to the company. Having the right group of people in return produces great results. We have to understand property is similar to shares, it is highly sensitive to market sentiment. Having said that opportunities are always available to those who are willing to seize them.” He further added by saying “It is upon us to learn about the needs and specification of the market so we are able to produce sufficient information to our clients.” By conducting www.propertyinsight.com.my APRIL 2016 I 59

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in such manner; Metroworld Realty stands apart in their services as they are able to give a clear outline to guide people during this difficult time. It is noteworthy that despite a risky market, opportunities are aplenty if the buyers or investors purchase properties wisely with proper guidance of an agent. According to Jason, having faced two tough economic periods the 1998 Asian Financial Crisis and 2008 subprime mortgage crisis he mentioned, “Those who found a way to get an opportunity of purchasing properties during the crisis are currently making handsome rewards.” “Everyone talks about properties during the heydays but to those who persevere during the hard times, they surely will be rewarded for their efforts.” THE RIGHT FRAME OF MIND Jason believes that in order to succeed in the business, all stakeholders should be in a win-win position. He says everyone seeks profit but to achieve the profit, it is 60 | APRIL

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important to treat everyone as partners. “My way of business is to look at everyone as lifetime business partners therefore there is a continuous rapport between myself with my agents and clients.” Jason said leading Metroworld to greater heights includes implementing the right set of entrepreneurship skills to each of his employees. “I tell them to treat this job as their own business thus pushing them to be independent and disciplined in time management, delivering jobs and having knowledge on all aspects of the property, legal, financial and current trends.” As the founder of the company, Jason’s vision is to make Metroworld a premier and profitable agency and ultimately a household name for both agents and homebuyers. “Such distinctive practices by Metroworld negotiators should persuade real estate agents to pursue their career and homebuyers to feel they can find their home sweet home from us.”

THE FUTURE Jason said Metroworld cannot be contented or complacent in business and thus it needs to continuously learn and obtain knowledge that is pivotal to ensure longevity in the highly competitive industry. “Therefore moving forward I’ll be conducting more training to guarantee personal development to all our staff hence knowledge can guide us to greater heights by providing more accurate advice and information to clients.” He further added the agency plans to develop more branches to serve the customers from different locations. There are also plans to expand the agency overseas. “The appreciation showed by customers drives us to reach greater success. Property purchase is a special moment especially those who wants to settle down and start a family. This is the time to make a decision when homebuyers have a plethora of opportunities for numerous incentive schemes given by developers.”

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OF SPACES AND PASSIONS

Exploring interior design with PDI Design & Associates BY: FARA AISYAH FIRDAUS PETIAL

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ave you ever been to any Interior Design company’s office? It was my first time when I went to PDI Design & Associates at Jalan Maarof, Bangsar. I was charmed by the interior design of the office and felt the need to design the interior of my own property. The question is, how do I do it? ENGAGING PDI DESIGN According to the Senior Designer and Partner of the company, Ian Lee, “We basically provide our clients everything including the basics. Apart from designing the interior, we also renovate and build the decoration needed for the spaces in the property. Home renovation is such a tedious process hence, we are providing our clients with a hassle free process and guiding them along the way. We have our own trusted contractor whose quality is up to our standard and will not cause any trouble to our clients. Our clients only have to move their baggage into the house.” “Some homeowners might already have the interior design in their minds, so we

conceptualise and make it real for them. Some clients would also love to have their own personal touch, so what kind of service do we provide them? We would even shop with them and help them to beautify the property.” Ian added. The Interior Designer and also a Partner of PDI Design, Morgan Granese mentioned that the team put their hearts and souls into every project that they do. “We have an incredible connection with our clients because we go through the whole round of emotion with the homeowners, in designing their properties. It is difficult to say we love one project more than another because each project represents a different time of ourselves – every design that we do represent us.” UNDERSTANDING ID You can feel it whenever you walk into a place where the interior design is complete with full of love and passion. As an interior designer himself, Morgan stated that one of the important things to look at in interior designing is how the environment affects the way people live?

“Space is nothing if you don’t do anything about it. Having a space that is designed to be a particular space – you have to create the mood; you have to put decorations that can relate to the feel of space. This works only if space can intrinsically make people feel the space.” said Morgan. “Show units are the closest example to this theory,” said Ian. Show units are designed to sell – to be the ‘wow factor’ that engages the potential buyer which in return provides sales to the developers. “Property investors could also add value to their property by using space creatively through interior design, which in return provides them with a better rental yield. For example, if you are creative in a small condominium, like making the hall bigger just by taking down a wall. This, however, depends on the demographic and the target market of your investment that might look into that kind of value.” Junior Designer of the team, Diyana Amira said that “Interior design plays a big part in property investment. I personally will opt for a property with a good interior

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design located in a dodgy area, compared to a property in a safe area but a plain interior design.” In interior design, it is crucial to first identify the function of one particular space before deciding to do anything with it. “By identifying the function, only then you can decide on the materials that the budget is allocated for the interior design of space,” said Ian. “I think the issue that we face nowadays is limited space. How do we fully utilise the space? We should have integrated space in between – something multifunctional.” said Diyana. On the other hand, Diyana also explained that “I think the first problem that

homeowners face in interior designing by themselves is that they tend to go to the shop and buy the things such as the decorations first, and then only they think of where to put it. You must decide before you buy anything.” Any established interior designer should be very alert and sensitive towards the local property market. They should know how to improve your investment and manage your budget. They should be able to advise you in many ways. In addition to that, Morgan said “We believe that everyone should have the best of everything. You don’t need a lot of money to have a good interior design – it’s a misconception. You can do it even

with the lowest cost, such as paints and plants. Whether you’re living in affordable housings, studios or even bungalows – everyone deserves to live in a space that is comfortable and personal.”

“Creativity and innovation are two main pillars in interior designing, but people are one of the major keys to success. I allow my team to have and express their creativity. I am very proud of every project that we have successfully delivered together. Although the economy is a bit stagnant and the industry is quite cautious, we still manage to deliver 98% of our projects. If you’re doing interior design for the money, then the business is not for you. The passion and the love for this industry must come first before you can earn a good income. 2016 might be a grey year to most people, but we are now working on more projects and are actually investing in properties. I think that the affordable homes and first time home buyers would be two good sectors to invest in, as well as for agricultural land” -Dato’ Tan Su Cheng Managing Partner, PDI Design & Associates

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DESTINATION - RETREAT

SEKEPING KONG HENG

IMAGE COURTESY: RUPAJIWA STUDIOS

poh mali! Ipoh, Ipoh mali! As we come to the start of the second quarter of 2016, some of us may want to take a short vacation or weekend getaway. While I was searching for great places to go for the weekend, I came to the website of Sekeping Retreats.

There are many properties under the Sekeping Retreats group, especially in the Klang Valley. The company also has a few retreat spots in Ipoh and Penang. As I was planning for my own retreat, away from the hustle and bustle of the Klang Valley, I decided to book and experience 3

days 2 nights stay in Sekeping Kong Heng, Ipoh. The latest addition to the Sekeping family of retreats is located in the charming old town of Ipoh. Sekeping Kong Heng is located in a 3 storey neo-classical building which also houses the famous kong heng www.propertyinsight.com.my APRIL 2016 I 65

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coffee shop on the ground floor that serves the best local dishes in town. FEATURES & FACADES Sekeping Kong Heng was designed by Ng Sek San and Farah Azizan. All efforts have been made to preserve the heritage, which is a stark contrast to the surrounding new and modern architectural interventions. In addition, an extension has been added at the back of the building, a revealing inner courtyard with a dramatic stairway to take guests up to their rooms. My room was a standard room for two. The room was spacious with an open

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concept bathroom. Lucky for me, I didn’t have to share the room with anyone else as the only thing that separates the bed and washroom is a sheer curtain. However, I would say Sekeping Kong Heng is not for everyone. It is not suitable for the elderly and disabled because there are no lifts, only stairs to take guests to their rooms. The bathroom floor is also metal-based, which can be slippery and unsafe for kids. It is also not recommended for light sleepers because you can hear the slightest creak at Kong Heng. You can hear your neighbours showering, the music from Plan B in the evening, and the hawkers’ chattering at wee hours of the morning. There is no television in the room but there is a common guest room where you can catch your shows. Food and drinks are allowed at the common hall. The nofrills and budget stay does not provide shampoo, toothbrush, toothpaste, potable water, or other amenities. They do not have room service. It is only fair for the price you pay.

AROUND KONG HENG Testimony to Ipoh’s decadent past, Kong Heng was used as a hostel to house theatre performers who performed in the adjacent theatre building that was burnt down in the 50s. Now rejuvenated, it is hoped that Sekeping Kong Heng will be able to offer guests a piece of history within a real old town setting which is much alive, and bustling. Other than the famous Kong Heng coffee shop, the retreat is also hosting the late Yasmin Ahmad’s museum. It is named as Yasmin @ Kong Heng, and the spaces celebrate Yasmin’s remarkable body of work in the form of her photography, filmography, as well as creations devoted to her by other artists. This museum itself is an attraction many tourists from around Malaysia.

Address: 75 Jalan Panglima, Ipoh 30000, Perak Tel: 05 241 8977 E-mail: kongheng@sekeping.com Website: www.sekeping.com/kongheng

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E . O . I . APPROACH TO REAL ESTATE INVESTING: 3 “E-FACTORS” DEVELOPERS & INVESTORS SHOULD KNOW

uch has been said about T.O.D. when it comes to real estate township planning for the urban community. Transit Oriented Development is the new buzz in regional property development for sustainable living. This urban model to harness the transportation and infrastructure hub as a catalyst for mixeduse of residential and commercial growth while reducing emission and congestion and revitalizing efficient communities is an exciting trend to create vibrant, livable generations which are compact yet dynamic in nature. 68 I APRIL 2016 www.propertyinsight.com.my

Whilst this can be a solution for future development, the urban sprawl we face in existing townships or communities can only mean there has been lack of TOD, especially when it comes to land use and town planning policies for urban development in past decades. ENERGY-ORIENTED-INVESTMENT “Energy Oriented Investment” or in short E.O.I. is what I termed as the ULTIMATE approach in Real Estate Investing. If TOD is centred

around mass rapid transit hub, E.O.I. is the model to harness natural energy in the universe and determine a prosperous and livable space within a period of time. Before a TOD model even takes place, the consideration of where energy flows dictates urban development for a progressive and harmony growth. In essence, everything starts with energy. How many have placed importance into identifying an area before any development is worth taking place or at least when it comes to worthy land acquisition by developers using energy based considerations? This is imperative for the long term since township project planning involves Gross Development Value (GDV) into multi-millions of ringgit. Disruptive energy or energy that is less susceptible for long term growth should be minimised at all costs. E.O.I. presents a major solution to all serious and growing problems of urbanisation around the world by harnessing the hidden wisdom from ancient civilisation that exist long before us. Properties are built in environments where natural energy must first be respected. It’s the Universal Law. Choose to respect the natural energy and live in harmony with nature. So what are the 3 “E-Factors” in E.O.I. about ? Being an ‘Energy’ practitioner in Property Investing since 2006, I have outlined the E.O.I. approach generally from 3 factors, namely:ENERGY BASED ENVIRONMENT We have seen how some townships prosper with urbanisation taking place in cities that we feel if and only if we were born into such an area prosperous in nature. Is it really mere coincidence or just pure luck when one considers the prospect of growth and subsequently happens to be there at the right time and the right place. Every property ever built on land is surrounded by natural formations of beautiful landscapes such as the mountains/hills, lakes or rivers. Make no mistake about it, for the untrained eyes, these natural occurrences took thousands of years to happen and they are energy storage which need no further explanation. Just as how the sun can shine brightly and emit its fullest energy upon us for our daily living. While we may not scientifically study these existences, we can feel the energy around them. Take for example, do we feel different when we are on higher ground compared to being in an open space in the field? The ability to feel differently already means we are affected by the form of energy around us. In the basic study of energy based environment, non movable objects in nature such as the mountains are known as ‘Yin’, storage energy objects whereas the rivers or lakes are moving water with ‘Yang’ energy. Depending on whether an area has plenty ‘Yin’ or ‘Yang’ energy, each and every of the natural environment allows a form of energy attraction. It is this energy based environment as the sole factor that will determine whether a developer when conducting their land feasibility study for a project or township planning, will have an advantage over funds invested for long term. An investor who bought into an area filled with the suitable energy for future growth will see their investment bloom in no time! ENERGY BASED DIRECTION After harnessing the right energy flow from a suitable environment, Energy Oriented Investment takes us around the property or

compound that an investor usually is keen to look at for R.O.I. (Return Of Investment). While we may get attracted into properties for the mere reason of its facilities, design and furnishing for home living, it is crucial that we also get to stay in a happy and healthy home in harmony with nature. As the external energy from the environment flows, different properties with different directions will be able to capture this energy with a certain degree of capacity. In such instances, we may have noticed in a row of commercial shop offices where some can be tenanted out easily whereas some shops may find it hard to even get a potential tenant to view its unit! Energy Based Direction can vary depending on the environmental energy which ultimately affects the people occupying the property in later stages. Hence the saying holds true; “Environment produces the house, the house produces the man.” ENERGY BASED MINDSET Last but not least, everything starts with us. We are equally responsible in our decision when it comes to life choices or consequences! Everything, practical yet simple or often confusing and misunderstood reality is within the control of our own mind! Just as life itself, we are energy beings. Our thoughts, our feelings are a composition of complex natural biology which can be manifested if we do really care! How is this important? Well, it has everything to do with real estate actually. Imagine a developer ignoring his intuition to tell him that his decision making is purely based on only financial bearings without the heed of the effects of nature law. That would definitely be a disaster in the making as investors who do not see the E.O.I. approach will invest into areas that do not churn out good calculated financial returns. We had too many cases to quote in the past when projects do not live up to expectations and people start to blame each other. While there are real estate laws that govern and put parties involved into accountability, one does not need to get into such a compilcated situation if E.O.I is practiced from the onset. A PERSPECTIVE LIKE NO OTHER Given the accuracy of studies and practicality of adopting E.O.I. approach in real estate investment from the developer and property investor viewpoint, it now makes sense that the right approach in Energy Oriented Investment definitely brings benefits to its subject while increasing R.O.I. (Return Of Investment) as a desirable outcome. Respect the law of nature that there are unknown forces in the form of energy that can either help us propel further or slow us down. The choice is obvious. Why not choose E.O.I before we talk about R.O.I.? It is as good as it gets!

ABOUT THE CONTRIBUTOR Alan Poon is a real asset value investor, who focuses on tangible and undervalued assets, specifically real estate, as his choice of investments. He founded Superior Wealth Mastery, an organization dedicated to the mastery of wealth education as the cornerstone of success and happiness in life.

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LEGAL

BEST TIME FOR HOME OWNERSHIP YET?

he year 2016 has much in store for prospective homeowners after a challenging year last year, which saw many events that had impacted the real estate industry negatively. The implementation of Goods and Services Tax, dramatic fall of the Ringgit and oil price, the rise of living cost and the increase in unemployment rate affects the affordability sentiment in the property sector. To add insult to injury, the financial institutions are also practicing stricter policy in lending. Investors who saw savings in interest payments via the Developer Interest Bearing Scheme (DIBS) are now feeling the pinch as they start paying installments for their purchases against the backdrop of a low rental yield environment. It is no surprise that many have concluded that 2016 will not be as attractive and rewarding for the real estate investors as the property prices have maintained relatively stable, leaving very little room for speculation. There is a silver lining in the industry, especially for homebuyers.

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It is a good time for genuine home buyers, especially those middle-income earners aged between 25 and 45, to shop for their long awaited home nest while cautious investors put on hold investments till the economy recovers. Thus, affordable housing will be the major focus in property market this year in conjunction with the Governmentâ&#x20AC;&#x2122;s initiatives to help first home owners. Recognizing the issue of home ownership in Malaysia, the Government has introduced several affordable housing schemes through programmes and organizations such as People Housing Program (PPR) and Perumahan Penjawat Awam 1Malaysia (PPA1M) by National Housing Department (JPN), 1Malaysia People Housing Programme (PR1MA) by PR1MA Corporation Malaysia, Aspirasi SPNB (previously Affordable Housing) and Rumah Idaman Syarikat Perumahan Negara Berhad (SPNB) by SPNB and Housing Assistance Program (PBR) by Ministry of Rural and Regional Development. The latest stroke of Governmentâ&#x20AC;&#x2122;s

commitment is shown in the recently recalibrated budget 2016 where new housing projects priced up to RM300,000 will be limited to first-time homebuyers only. The Government too will organize the Integrated House Ownership Expo Roadshows that offer more than 100,000 housing units. Further raising the bar of housing developer and home buyer protection, the amendments to the Housing Development (Control and Licensing) Act 1966 (“HDA”) have come into force June last year. The current homebuyer protection regime is the best in Malaysia’s history to-date where its provisions include statutory termination of the sale and purchase agreement upon any cease work and abandonment of the residential property development for at least 6 months continuously. To further avoid the occurrence of abandonment, the entry point for any developer is now set higher by stipulating a variable housing development deposit calculated based on the gross development cost. There is more control in bridging finances by a developer with less payment during construction period until the delivery of keys to the homebuyers. Housing development market is now a game for serious industry players and restricts the participation of self-fancied housing developers. Not to forget, these housing developers have to be more competitive with the participation of PR1MA, JPN and SPNB to each grab a bite of this affordable housing cake. With the direct competition from government agencies, the standard of affordable housing will hopefully get better and cost effective. Additionally, the tightening of homebuyer protection increases the confidence of the financial institutions in providing security loans to facilitate the purchase. This certainly is good news to prospective homebuyers. Other encouraging policies include withdrawal of Employment Provident Fund (EPF) to fund the deposit or and/or loan installments of the property and the Rentto-Own Scheme for those who are unable to secure a loan facility just yet. The current tax regime is also favorable for first time homebuyer where - the purchase of any residential property with

the purchase price below RM500,000 is entitled to 50% stamp duty exemption for the instrument of transfer documents and loan agreements. This tax relief is applicable until the end of 2016. The property market may not regain its historic glory in the past 10 years and buyers may be more cautious now. Nonetheless, it is perhaps timely to take a leaf out of from Warren Buffet’s book to “Be fearful when others are greedy, and

greedy when others are fearful.” Furthermore, with lesser competition from investors and more stable prices, it is a good year for genuine home buyers to shop for a home. The slowdown in 2015 also indicates that there are hungry developers that are going to package attractive offers for the homebuyers to boost sales. The lunar year of the fire monkey is the best time for purchasing your first home with the best legal protection possible.

ABOUT THE CONTRIBUTOR Chris Tan is the Founder and Managing Partner of Chur Associates, Advocates, & Solicitors. He is deeply involved in the real estate industry, and is now the honorary Legal Advisor for FIABCI Asia Pacific Regional Secretariat on regional concerns.

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STRATEGY

BUYING A HOME FOR OWN STAY – SHOULD WE BUY IT JUST BECAUSE WE “LIKE” IT?

n my article this month, I’d like to share some people’s investment philosophy (or lack there of it) when it comes to buying their own homes for own stay (Let’s term an Own Stay Home as “Residential Home” for ease of discussion). More often than not, some well meaning folks will dispense the following conventional wisdom when it comes to buying a Residential Home, - “If you’re buying a house for own stay, don’t worry too much la. As long as it fits your budget and you like it – go ahead and buy it lah.” Well, if you just buy a Residential Home purely because you “like” it, and it’s within your budget, the following real life

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scenarios could happen. SCENARIO 1 (THE BEAUTIFUL CONDO FACING A CEMETERY) Barry & his wife Linda (fake names of course) bought a Condo in the fairly upscale area of Damansara. Unfortunately or fortunately, their unit faces a cemetery. If it was purely for investment purposes, they would not have proceeded with the purchase. However, since they are buying for their Own Stay and liked the unit, they decided to buy it anyway. A couple of years later, our lovely couple wanted to refinance their home to unlock some of their equity. However, most banks including their own

banker did not even want to refinance their unit, due to its proximity to the cemetery. Barry & Linda are now perplexed at their lack of options. SCENARIO 2 (THE HOUSE FACING A T-JUNCTION) About 2 years ago, Charles & his wife Stella (fake names of course) were very keen to buy a unit in Taman Tun Dr. Ismail. They looked high & low but just couldn’t find a unit within their budget, as most of the Double Storey Link houses were priced at more than RM 1.3 mil. Finally, they found a unit within their budget, but it faced a T-Junction. They happily bought the unit

STRATEGY since it was for their Own Stay and they liked it. They plonked in a further RM 300K for renovation, and they got the House of their dreams. Just recently however, Charles managed to get an attractive offer overseas, and will be bringing his young family along for an indefinite time period. They decided to sell their home at the normal market price, thinking that potential buyers would appreciate their tasteful renovation. Alas, potential buyers did not even want to pay the market price, let alone premium for their home because of its proximity to the T-Junction. Our lovely couple is now in a limbo. SHOULD YOU VIEW YOUR OWN RESIDENTIAL HOME AS AN INVESTMENT? The point I’m trying to impress is this there are people that advocate that one shouldn’t look at your own residential home as an investment. After all, you will be staying there, and normal investment considerations should not apply. To be fair, there is no malice or ill intent in this “conventional wisdom” per se. However, I do not subscribe to that notion. To me, your Residential Home should be evaluated using sound & consistent investment principles, even though you may be using it for your Own Stay. Why is that the case? Let me share my 2 cents: (a) When you buy a Residential Home using sound Investment Principles, you may reap advantages that benefit you as an investor. Just to share, my wife and I bought our Residential Home in a fairly old but affluent area in Damansara Jaya back in 2007. We are still staying here today. However, the price has appreciated 3 fold since then, and we have tapped on our home equity to refinance our home several times. In short, my Residential Home has become a “refinancing engine” that I can draw funds from to expand my Investment Portfolio more efficiently. (Please note that refinancing should be done responsibly and to generate a higher rate of return)

buying a BMV Home at RM 500K versus its Bank Valuation of say RM 700K will result in an instant RM 200K gain to your Net Worth. (c) When you buy your Residential Home using the strictest of Investment Criteria – you tend to be more stringent and selective when it comes to the proximity of “taboo” objects like Electrical Towers, Indah Water Depots, T-Junctions, Cemeteries, frontage towards Main Commercial areas, etc etc. Direct translation – you don’t just think about what you like, but you also consider what the market likes. Your thinking will dwell on what is mostly acceptable to the market in terms of a suitable abode. This brings advantages in terms of sales and liquidity. If you need to make a sudden sale of your property, you tend to fetch a

better price because your Property would be in demand. Moral of the Story? The only certainty in life is uncertainty. You may have the noblest of intentions to stay in your current home forever. But sometimes, life doesn’t quite pan out the way you want it to be. Look at what happened to Barry, Charles and their wives. In all humility, please do not just consider your own emotional affinities & budget when it comes to your Residential Home, whilst discounting sound Investment principles. Evaluating your own residential home as an investment property may bring advantages as described above. Sometimes, conventional wisdom may bring adverse circumstances. Sometimes, it pays to be unconventional.

(b) Your net worth gains when you buy a Residential Home using sound investment criteria & principles. For instance, buying a property at Below Market Value (BMV) or at a Margin of Safety (MOS). As such,

ABOUT THE CONTRIBUTOR Mark Chua is a Senior Vice President (SVP) in a Financial Institution. He is living proof that one can be successful in both our Careers & Property Investments. He can be reached via markchuamy@hotmail.com or www.facebook.com/MarkChuaMY

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FINANCE

FINANCIAL MANAGEMENT BY SMART FINANCING – PART I I

t’s important to keep your personal finances in order, and reading articles about how to manage your personal finances is a great way to start. Since you are reading this article, you have made a first step in learning what personal financial management is all about, from a view point of SMART Financing. If you are looking for another plain article to remind you to start saving towards financial freedom, we are sorry that you have picked up a wrong article to read and you may flip this page over. SMART Financing teaches an evolution of financial movement where the key towards having strong financial management is via leveraging. It’s a concept where the objective is to ultimately achieving financial freedom via SMART leveraging (making use of other people’s money). The key underlying principles towards SMART Financial Management is mainly focusing on leveraging in order to accelerate your wealth expansion. The very first step in SMART Financial Management is first to understand your current financial situation. Everyone knows that in the current state of the global economy, the only way to be financially strong (and not even financially free yet) is to invest. In the SMART Financing dictionary, invest means to make or grow your money in a meaningful way via OPM (other people’s money). Gone are the days where we rely on just a 9 to 5 job and to save as much as possible to achieve financial freedom. Why? A few points to ponder. 1. Is your salary increment growing more

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than the actual inflation every year? Do you know that there are new types of fees which you seem to be paying more now than before. The amount you pay now vs the year ago seems to be even higher than the yearly inflation. There are new types of taxes that we need to pay. The ever growing needs of our lifestyle where what once seems to be a “nice to have” item becomes a “necessity” now. As such, in view of the above, it is very important before we even start any sort of investment journey to make money, we must first learn the basic of financial management. There are 8 key elements in financial management that you need to know. a) Income This is the most important basic item which many may not pay attention on. The single most important key element before we begin on financial management is how we get the funds from. Getting a pay cheque as an employee or running your own business being self-employed are the basic 2 categories of how people obtain their income or funds. The better the ability in getting a higher income surely put you in a better position in managing your finances. The key issue is once you have obtained your income, what should you do to make the most out of it in contributing to your financial freedom roadmap? b) Cash Flow Now that you have allocated your funds structurally, next is how you manage your cash flow. Managing spending and

planning ahead to make the most of your income is critical. Cash flow basically refers to an input of funds and an output of funds towards expenses or investment. We will look at it from a property investor’s perspective. Input of funds • Your basic input of funds are your existing active source of income which you have segmentised into item 1. This covers your basic need to survive but let’s take another step deeper into your investment where at the end of the day, switch your input funds towards 100% on passive earnings. • As you venture to be financially free, you will start off by building your investment portfolio. When you reach a stage you manage your large portfolio of properties, input of funds is highly important. You need to behave like a portfolio manager. • You must ensure you invest smartly into properties which potentially generates upfront input funds to self-sustain • You must ensure that when you venture into such a big journey, you have built a strong rainy day account. Your investment should take care of itself and we are not referring to just an investment taking care of itself but on a portfolio level where there may be some investment which may be able to support other investment so that you can further leverage and grow your financial freedom account.

Output of funds • Output refers to each items which you are required to expense off on a structural basis every month as well as on irregular needs. • It’s all about keeping detailed records. For example, by working out how much you spend in that same period as your input funds - not just on daily expenses but in rent, on subscriptions, for insurance, etc. you can very quickly paint a picture of what sort of financial trajectory you are on. • You can then adjust accordingly, perhaps cutting back expenses where possible to increase the amount of income that you actually get to keep (that is, that doesn’t go immediately towards expenses). • Truthfully, this can all be done in a well-managed excel sheet or various mobile apps on the go. What gets tracked gets managed. • Though the above paints a picture of having limited funds to budget, there are always ways to overcome this by having a strong, recession proof strategy in managing your input funds to be ready for any unforeseen output of funds. This will not be covered in this article, but we will touch on this in our next issue. c) Capital for investment This is your fund for investment purposes. When you are on the journey towards meeting your financial freedom goal, your capital is basically what you have saved and allocated for investment purposes. This is the single most important drive towards working your way meeting your desired financial freedom target. Whatever extra cash after your structured cash flow builds on your capital funds. This element is critical as it determine how far and fast you can go towards achieving your financial freedom via investment. Remember, opportunities do not come often and opportunities waits for no man. Your goal should work towards moving away from active income towards allowing your passive income to take care of you. Make money work hard for you, not the other way round. d) Family Security A good financial planning involves some degree of security, especially on your family

and children. Providing for your family’s financial security is an important part of the financial management process. Insuring your loved ones can provide a peace of mind for you and your loved ones. The other part is to give them a comfortable life and it should be self-sustainable. e) Standard of Living Planning on how much money to set aside for a comfortable living with you and your family. In this element, funds saved over the months should never be re-assigned back to other accounts such as your investment funds. If there is an excess, go out and celebrate once in a while in pampering yourself and your loved ones. Celebration is key as it self-motivates you to continue what you are doing right, right now. The savings created from good planning can prove beneficial in difficult times. Plan it well and you sail smoothly out of any untoward bad economic hit. No one likes cutting down and living a poorer lifestyle right? f) Financial Understanding Take a pause once a while and reflect back what could have been done better. Apply and execute to continuously improve your process. Better financial understanding can be achieved when measurable financial goals are set, the effects of decisions understood, and results reviewed. Remember, you are the driver. Be in control. By doing so, it gives you a whole new approach to your budget and improving control over your financial lifestyle. Financial understanding allows you to leverage your way towards meeting your financial freedom targets. Having the right knowledge in today’s complex banking system allows you to maximize your capabilities to leverage by getting banks to love you, it also prevents you from incurring unnecessary fees or hidden charges which a lot of us get caught by surprise on. In short, it gives you opportunities to make

money using other people’s money as well as not paying a hefty cost doing so. Not only do you make money, you save on cost! g) Savings Having emergency cash on hand or stored in high liquidity investments. Though the returns for this is generally lower, a simple rule of 6 months of your current income is required for any emergencies. This prevents any untoward incidences where you are required to borrow and pay hefty interests. Savings are not only in a form of setting aside funds from your active income, it also involves grabbing occasional banking campaigns, offers and opportunities where you can “borrow” at a low cost to “save” at a higher return. It could be savings from a good savings plans or even to further save interest from paying down / off your higher interest yield liabilities. The knowledge of settling the liabilities, comes with the understanding of your finances. Every asset acquired must have an exit strategy planned beforehand. The overall process helps build assets that don’t become a burden in the future. Understanding the 8 key elements of SMART Financial Management is the first critical step before starting your journey in working out a good Financial Management roadmap to achieve Financial Freedom. In a world where assets and investments move quickly and we link our bank accounts to innumerable services and make purchases with the touch of a button, financial management is now getting more and more complicated. As such, to make the most out of your money, understanding the key elements as listed above is critical. As SMART Financial management covers a full spectrum of strategies, this article will end here being the first part only. We have covered the basic part of Financial Management which is to first understand the 8key elements. We will cover in our next coming issue on Financial Management strategies. Stay Tuned!

ABOUT THE CONTRIBUTOR Gary Chua runs workshops to educate people on latest winning formulas to stay ahead in these trying times! Please go to www.smartfinancingco.com to get the latest updates on upcoming events. He always welcomes feedback and valuable sharings. Please feel free to drop him an email at general@smartfinancingco.com or connect via social media at Facebook.com/Garychualw

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STRATEGY

KNOW YOUR COMPETITION W

ith so many properties out there for people to choose from, what is it about yours that will make them choose it? You need to know your USP (Unique Selling Propositions), what are the different values you can offer to the market. But do you know the market? Do you know what your competition is doing? Being aware of what is happening in the marketplace is critical if you are to stay ahead. Tastes change, areas go in and out of fashion, prices fluctuate – the property market is a moving feast. The playing field is not level – different players are entering all the time and are changing and breaking the rules. There is no excuse for not knowing what your competition is doing. It takes just a few minutes research online. Property portals such as Property Guru and mudah.com show you what your competition is doing in a flash. Knowing what is happening in your area needs to become second nature – you need to be familiar with what is for

“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle” - Sun Tzu

sale and rent and at what price, at any given time. Set up search alerts so that you are notified every time a new property is added to the site within your area. Watch what properties are being added and look at the internal designs and the price they are asking. Monitor new additions and check how long it takes to sell/rent the property. If a property sold or rented particularly fast, call the agent. Ask them why the property went so fast – what was it that people liked so much? Write it down and keep it for future reference. If a property you’re monitoring is sticking, call the agents. Ask them 76 I APRIL 2016 www.propertyinsight.com.my

about the property and find out why it’s not moving. Understand what the issues and barriers are in the marketplace and think about how these may apply to your property, if at all. View the competition. If you have a property for sale or rent, go and see other properties that you think are comparable to yours. Don’t be afraid to know what you’re up against. View them, assess them, go back to your property and see what you can do better. What can you do differently? What do you need to change to make your property the top choice for people? Perhaps you need to lower the price, redecorate, change the kitchen or simply just dress it better? These are all ideas that, until you know what your competition is doing, you’ll just be guessing at. Ask for honest feedback. Understand exactly what it is people think of your property. Know what you have done right and what you have done wrong. Look to put things right. Change what you need to change to get the result you want. Remember you are in competition with other properties and other people – this is not a one-horse race. Know who you are up against and do what you need to win.

ABOUT THE CONTRIBUTOR KK Chua is the strategic advisor & managing director of Armani Media. He is also a registered real estate agent and an investor with more than 10 years of experience in the industry. He can be contacted at kkchua@propertyinsight.com.my

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