Property Insight June 2018

www.propertyinsight.com.my

JUNE 2018

RM7.50(WM) RM9.00(EM) KDN PP 18181/04/2013 (033492)

JUNE 2018

DELIVERING ON DISTINCTION DATO’ DR. DAVID KOH

MILLION DOLLAR MAKEOVERS FOR HIGH-END RESULTS AT A LOW BUDGET

POST GENERAL ELECTION IMPACT ON PROPERTIES

Special thanks to

YB ZURAIDA BT KAMARUDDIN Minister of Housing and Local Government

for officiating the event

DEVELOPMENT AWARDS MAH SING GROUP BERHAD

• Best Hybrid Development • Best Mixed Development • Best Landed Development • Best Family Living Development

MALAYSIAN RESOURCES CORPORATION BERHAD

• Best Refurbished Development • Best Transit Oriented Development Catalyst

• Best Township Development

GLOMAC BERHAD

• Best Living Lifestyle Development

SUNSURIA BERHAD

• Best Office Development

NCT Group of Companies

• Best International Destination Development

BSS DEVELOPMENT SDN BHD

• Best Family Resort Homes Development

GD HOLDINGS SDN BHD

• Best Integrated Township Development

NAZA TTDI SDN BHD

• Best Value Creation Development

•Best Eco Urban Development

SIMAS-D SDN BHD

• Best Sustainable Community Development • Best Luxury Lifestyle Development

PUTRAJAYA HOLDINGS SDN BHD

GOLDEN ARMANI SDN BHD

• Best Boutique Lifestyle Development

MALAYSIA LAND PROPERTIES SDN BHD

• Best Lifestyle Oriented Development

UNITED MALAYAN LAND BHD

• Best Sustainable Township Development • Best Urban Lifestyle Development

• Best Malay Reserve Development

LBS BINA GROUP BERHAD

• Best Innovative Services Development • Best Opulence Development

• Best High Rise Development • Best Facilities Development • Best Gated & Guarded Development

GREEN TARGET GROUP

• Best Investment - Oriented Development

YONG TAI BERHAD

ASM DEVELOPMENT (KL) SDN BHD

• Best Integrated Development

GOLDEN LAND BERHAD

• Best Niche Industrial Development - Penang

DK GROUP

MK LAND HOLDINGS BERHAD MATRIX CONCEPTS SDN BHD

• Best Inspired Landed Development • Best Greenery Harmonious Development

DEVELOPER AWARDS

SPECIAL RECOGNITIONS

GOLDEN ARMANI SDN BHD

PELABURAN HARTANAH BERHAD

• Best Bumiputera Developer

GUH PROPERTIES SDN BHD

• Best Shopping Destination East Coast • Emerging Property Trust

MALVEST GROUP

• Best Beach Resort Destination

HCK CAPITAL GROUP

• Best Business Hotel

THRIVEN GLOBAL BERHAD

• Best City Hotel

• Best Emerging Developer

MK LAND HOLDINGS BERHAD

• Outstanding Developer - East Coast • Most Inspiring New Developer • Best Boutique Developer

MANHATTAN BUSINESS HOTEL

KERJAYA PROSPEK (M) SDN BHD

• Best Main Contractor

TAN SRI DATO’ SERI LEONG HOY KUM

• Lifetime Achievement Award

COMMON GROUND

• Industry Excellence Award

NEW WORLD PETALING JAYA HOTEL

• Best CSR Award

• Best Community CoWorking Space

LBS BINA GROUP BERHAD

• Best Corporate Hotel

• Best Affordable Housing Developer

COLONY

• Best Luxe CoWorking Space

SIROCCO, KUALA LUMPUR

PERBADANAN KEMAJUAN NEGERI SELANGOR (PKNS)

• Best Township Developer

ZOUK CLUB KL

• Best Entertainment Lifestyle Centre

DATUK SERI FD ISKANDAR TAN SRI MUSTAPHA KAMAL DATUK KAMALUL ARIFIN OTHMAN

• Leadership Excellence

GD HOLDINGS SDN BHD

• Best Innovative Responsive Developer

DISTINCTIVE GROUP

• Outstanding Developer - Southern

SHENG TAI INTERNATIONAL SDN BHD

• Best Niche Developer for Overseas Market

TOP 1O DEVELOPERS

PRESENTED BY

www.propertyinsight.com.my SPONSORS

For Enquiries:

012-378 8683 www.pipda.com.my

contents

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18 06

Delivering On Distinction

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Recognising Excellence at PIPDA2018

Million Dollar Makeovers For High-End Results At A Low Budget

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Top 10 Developers Honoured At Property Insight Prestigious Developers Award (PIPDA) 2018

Buying Phases For Under Construction Properties

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Recognising Excellence In PIPDA 2018’s Midst

Spotting The Future Trend In Mixed Developments

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The Master’s Masterpiece

Do We Really Have Rm1 Trillion In Debt?

What Does This Mean To You, Me & Property Investors?

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Post GE14 Impact On Properties

Don’t Peak Too Soon

DATO’ KK CHUA EDITOR-IN-CHIEF

EDITORIAL

The Next Chapter

Editor-in-Chief Dato’ KK Chua kkchua@propertyinsight.com.my Editor Yvonne Yoong yvonneyoong@propertyinsight.com.my

CREATIVE

Creative Director James Kua design@propertyinsight.com.my Designer Nasrul Nasri

BUSINESS DEVELOPMENT Sales & marketing enquiries support@propertyinsight.com.my +6012 3788 683

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

On The Cover

After the euphoric win of Tun Dr. Mahathir Mohamad at the recent epic election which had almost the whole nation sitting up awaiting the results of the General Election (GE) in restless uncertainty, a new chapter has emerged for Malaysia.

Alongside the forming of a new Government led by our 92-year-old Prime Minister who will be turning 93 in July, changes are on the way which investors are looking forward to seeing with eager anticipation. Amidst a sluggish market environment, people are now also looking towards a new era, fresh on the heels of a new Government being taking over by a veteran in politics who is now running high on the popularity vote.

Renewed hope it seems is certainly on the horizon, with the real estate industry and other businesses waiting to see the outcome and changes that will take place post-GE. There is talk that all properties except for the residential units will see an immediate positive impact by June 1 when GST is zerorised and there is no requirement to pay for the Goods and Services Tax (GST) on any property transactions.

Euphoria is the buzzword of the day and the excitement of change is certainly palpable.

The positive feeling in the air is certainly so intense as to almost seem tangible as seen in the talk going around at coffee shops, restaurants and even at social industry gatherings.

Even at the recent Master Builders Association Malaysia (MBAM) 64th anniversary dinner which experienced a full turn out a few days after the GE results, everyone stood up as the national anthem was played before the dinner. At the end of the dinner, everyone just burst out into a thunderous applause intermingled with laughter.

Now that the dust has settled, it is time for the new Government to clean up house. Read all about what the real estate industry experts have to say in our main feature article that details the nail-biting suspense in the lead up to the result of the GE and now that the dust has settled – what the market can expect in terms of improvements and challenges both in the near and distant future in this month’s main feature outlining a comprehensive take of the GE and its post effects.

On a personal front – Armani Media Group recently held its fourth Property Insight Prestigious Developer Awards (PIPDA) 2018 during a glitzy and glamorous awards dinner celebration held at Shangri-La Kuala Lumpur which was attended by the who’s who of the real estate industry.

Themed “Recognising Excellence”, the gala night saw the gathering of the property industry’s Top 10 Developers even as developments were awarded different titles according to their respective areas of specialisation.

The awards witnessed a full-house turn up with the crème de la crème of the real estate industry turning up in full force.

The awards timing – postponed from an earlier date due to the uncertainty of the GE couldn’t be more apt and favourable as PIPDA welcomed YB Zuraida Kamaruddin, Minister of Housing and Local Government as its VIP guest of honour to officiate the event.

On this note, we would like to thank and congratulate her for staying till the end of the event and for graciously handing out the awards to each of the deserving recipients.

For the full and comprehensive details of the awards, turn the pages and enjoy the read.

DATO’ DR. DAVID KOH

Till next month, happy reading!

Distinctive Group

www.propertyinsight.com.my

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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.

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news & events REHDA Institute Held Its Sales And Marketing Conference The Real Estate and Housing Developers’ Association Malaysia (REHDA) Institute held its Sales and Marketing Conference entitled “Utilising Data to Build Demand Driven Real Estate” that was attended by real estate industry practitioners. Armani Media Sdn Bhd and Property Insight Founder Dato’ KK Chua was the moderator at the event.

Mah Sing’s Biggest Township Carries Out It First Vacant Possession Mah Sing Group’s biggest township represented by Meridin East in Pasir Gudang celebrated the first Vacant Possession (VP) of its first parcel, The Greenway recently.

The Greenway is fully sold and comprises 492 units of two doublestorey linked homes with built-up areas starting from 1,595 sq ft.

This is a milestone for Mah Sing as the handover kicks off the first of many quality homes to be handed over within the group’s flagship 1,313-acre master planned township, with The Eden scheduled for VP in 3Q18.

Lanson Place Announces its First

Entry into Australia

Lanson Place Hospitality Management Limited, a wholly-owned subsidiary of Wing Tai Properties Limited announceed that it has signed a new management contract to operate a brand new luxurious serviced apartment in Melbourne, Australia. This marks Lanson Place’s first property in Australia and its 12th property.

Centrally located in Melbourne’s CBD adjacent to the Parliament House, this new property comprises a luxurious serviced apartment with 117 units ranging from studio to twobedroom apartments. Comprehensive facilities include a guest lounge with outdoor terrace, 24-hour gymnasium and café. It targets to attract the younger generation travellers who are tech-savvy and expect prompt delivery of service with the click of a button via the mobile device or iPad. The new Lanson Place is located on Albert Street and within 10 minutes’ drive to the Federation Square, Southbank area and the Melbourne Park. With direct access to the free tram zone, the property presents an ideal choice for guests pursuing quick accessibility to the many restaurants, bars, cafés, shops and major events in Melbourne.

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M101 Tops Up M101 Bukit Bintang For The First Monopoly - Themed Hotel M101 Holdings Sdn Bhd (M101) has proven the company’s ability for timely delivery. It recently held a topping-up ceremony for its second development: M101 Bukit Bintang; symbolising the completion of the development’s structure.

The ceremony was attended by the M101’s board of directors namely; Dato’ Seth Yap, Datin Lea Chan, Dato’ Joseph Yap, Cheong Kok Peng and representatives from First Commerce - the main contractor for M101 Bukit Bintang. M101 Bukit Bintang which will house the world’s first Monopoly hotel - Monopoly Mansion by Sirocco is scheduled to open in 2019.

Dato’ Seth Yap, CEO of M101 says, “The topping up of M101 Bukit Bintang brings us one step closer toward the opening of Monopoly Mansion. We recently closed a group purchase deal worth RM88 million with international buyers. We are very happy to see the people in Malaysia and overseas also looking forward to the opening of Monopoly Mansion. In less than a month since we have licensed Monopoly from Hasbro, we have sold more than 80 units internationally.”

PAM Awards 2018

Celebrates Malaysia’s Architectural Excellence

The architecture fraternity recently celebrated the best and brightest amongst its members at the Malaysian Institute of Architects or Pertubuhan Arkitek Malaysia (PAM) Awards 2018 and PAM Annual Dinner held at Sheraton Hotel, Petaling Jaya. Since its inception in 1990, this premier awards ceremony by PAM marks the highest recognition for architectural excellence in Malaysia, and has established itself as the nation’s most recognised honour for architects, building owners, builders and contractors.

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cover story

DELIVERING ON DISTINCTION

The breathtaking sight as viewed from the infinity pool at Iskandar Residences

Bearing the hallmark of distinction in its developments that are a distinctive notch ahead of the competition is the Distinctive Group – recipient of the Outstanding Developer – Southern at the recent Property Insight Prestigious Developer Awards 2018

BY YVONNE YOONG

What’s in a distinctive name? Plenty attests veteran property developer Dato’ Dr. David Koh who helms the Distinctive Group which specialises in developing niche premier boutique developments banking on the hallmark of distinctive delivery based on timeless elegance and top notch quality.

“A name is important for people to identify with it. Hence, the name ‘Distinctive’ because it reflects on our uncompromising stand on quality and punctual delivery. Our tagline is ‘We build homes, not just houses,” he shares with Property Insight.

Beyond that, Koh reveals that the secret behind its distinctive achievements is based on integrity and a commitment to deliver exceptional quality to its buyers.

Iskandar Residences

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“Distinctive Group has a good, lean and agile management team.

We listen closely to what our buyers want and we deliver. We work well with our contractors. We deliver what we promise to the owners of our boutique developments. So at Distinctive Group, our values define who we are,” attests Distinctive Group CEO Lim Ech Chan.

OUTSTANDING DEVELOPER - SOUTHERN

DISTINCTIVE GROUP

Dato’ Dr. Koh

Already, the developer which has to its credit, a honorary roll out of successfully completed projects that have been snapped up quickly even in the midst of an uncertain property market climate attests to its credible reputation of timely delivery backed by superior quality developments.

Counted among its list of completed developments is 1 Tebrau @ Johor Bahru – the first integrated residential and commercial centre in the Southern region here comprising two blocks of 30-storey condominiums featuring 483 designer suites with builtup sizes ranging from 621 sq ft to 1,049 sq ft.

The development comes complete with recreational facilities and 36 units of four-storey shop offices complete with lifts. This development that was completed in 2017 with a gross development value (GDV) of approximately RM407 million has been fully sold out.

In addition, the 1 Tebrau development enjoys direct frontage and access from Jalan Tebrau and is lined to the Customs and Immigration Quarantine Complex, the coastal highway of Bandar Nusajaya and the newly completed Eastern Dispersal Link via Jalan Bakar Batu.

“We started with 1 Tebrau followed by Iskandar Residences. Our strategy is to develop at a measured pace without over-gearing by researching the market conditions very carefully. Iskandar Malaysia is an extremely dynamic region with many economic activities happening over the last decade. We see great potential

Iskandar Residences

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cover story

Self-contained oasis of facilities at Iskandar Residences

Cabanas at Iskandar Residences usher in a sense of resort living

Comprehensive facilities such as a gymnasium overlooking the swimming pool at Iskandar Residences

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1 Tebrau @ Johor Bahru comprises one of the first integrated residential and commercial centre in the Southern region

in the growth of this region. Tourism, healthcare, manufacturing, logistics, leisure and lifestyle will be the key economic drivers,” shares Koh. “We hope to contribute to these growth sectors, identify niche areas to employ our forte and from there, participate in the development and prosperity of the region,” he elaborates.

court, multipurpose hall and BBQ area surrounded by greenery,” shares Koh. Indeed, the facilities are generous with five swimming pools including a 50-metre Olympic pool, two acres of landscape plaza, two sky pools, a badminton and squash court respectively as well as a gymnasium and BBQ area.

In keeping with its quest for excellence, Iskandar Residences completed this year, continues to raise benchmark standards with two blocks of 40- and 29-storey luxury condominiums. Tower A’s 40 storeys feature 355 units while Tower B’s 29 storeys comprise 285 units. In all, the development features 640 elegantly crafted suites with built-up sizes ranging between 678 sq ft and 1,668 sq ft. The development that was completed in February is complemented by full-fledged resort living recreational facilities in the heart of Medini that commands a GDV of some RM708 million.

He reveals that till today, the take-up rate has already exceeded 90 percent by virtue of its unique selling features that include great connectivity to Educity, Legoland, Gleneagles Medini Hospital and Senai International Airport amongst others.

“Iskandar Residences is a luxury condominium development promoting resort living spanning across over two acres of landscaped grounds. Residents here will have access to full recreational facilities such as sky pools, sky gardens and podium complemented by infinity lap pools, Jacuzzi, gymnasium, squash

The eye openers of this development with its luxurious resort residences include top notch and full-fledged recreational facilities that count sky pools on the level 40 and 29 respectively as privileges open to residents to partake fully of.

The Likedua Highway will also facilitate easy accessibility to other surrounding areas in Medini and beyond – adding to the convenience of travelling here – including it being a mere 30 minutes travel distance from Singapore.

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The winner of the Outstanding Developer – Southern at Property Insight Prestigious Developer Award (PIPDA) 2018 is also partnering IGB Corporation Bhd to jointly develop 18 @ Medini – spanning an 18-acre plot in Zone A, Medini in Iskandar Malaysia.

The sprawling 18 @ Medini development will witness an integrated commercial development comprising corporate offices, retail spaces, serviced apartments, food and beverage outlets, entertainment area and showroom galleries and hotel changing the skyline of Iskandar Malaysia while earmarking and transforming the area into a thriving hub with potential for capital appreciation.

In all, the total GDV for 18 @ Medini is estimated at being over RM2 billion.

Moving forward, the group will be launching another two projects in Iskandar Puteri, Medini namely Puteri Business Park comprising a commercial development and Puteri Hills consisting a boutique gated and guarded (G&G) development.

The group which has invested heavily in developing its slew of properties in the southern region, will continue to focus on its developments in Iskandar Malaysia.

Puteri Business Park

“We will work closely with the various stakeholders and align our development strategies to complement the comprehensive development plan of the region. Our projects will be diverse – ranging from landed residential to commercial spaces. We will cater to the needs of both Malaysian buyers and that of our international investors,” adds Koh. With the General Elections now over, Koh envisions an exciting journey in Iskandar Malaysia. He says the group as a whole feels proud that it is able to contribute to and be part of the innovative plans of Iskandar Investment Berhad for the region.

“A stable government with a clear vision on its policies on housing regulations and foreign investment is important for a progressive property market. We are certain that the new government will be able to provide this conducive environment,” he attests.

Puteri Hills Entrance

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(From left) Distinctive Group Founder Dato’ Dr. Koh and CEO Lim

Striking Chemistry with Property Development

Distinctive Group is helmed by Dato’ Dr. David Koh, a graduate from the University of New South Wales (UNSW) in Sydney, Australia. Instrumental in establishing the Malaysian Chapter of the UNSW Alumni, he served first as its President and is now its Patron. Under his leadership, the Malaysian Chapter continues to actively promote camaraderie and fellowship among alumni members. In addition to this, Koh is also a past Exco member of the Malaysia Australia Business Council.

Together with Distinctive Group CEO Lim Ech Chan, a chartered Town Planner, Distinctive Group is making its mark with the distinctive offerings of projects in Iskandar Malaysia. Turning their attention towards the development of Iskandar Malaysia as the next emerging property hotspot gem, the group’s Iskandar Residences development is designed by FIABCI award winning BEP Architects Ar Kam Pak Cheong with the landscape details undertaken by internationally renowned landscape architect Karl Princic.

After completing his tertiary education, he returned to Malaysia and became a lecturer at Taylor’s College in Kuala Lumpur. However, his ability and capacity went beyond teaching

Having emerged as the Outstanding Developer – Southern at the recent Property Insight Prestigious Developer Awards (PIDPA) 2018 came as no huge surprise – considering the resounding success of its developments in the southern region as witnessed in the robust take-up rates.

At that time, the building industry in Malaysia was growing fast.

Quick to notice that the young nation was in dire need of houses for its rapidly increasing population, without hesitation, Koh seized this opportunity and plunged into the world of property development, starting from scratch.

It was a challenge back then jumping into real estate matters but looking back now, Koh has no doubt that he made the correct choice.

Today, the previous lecturer specialising in chemistry turned into a well-known and reputable developer continues to launch landmark niche developments that boast of quality furnishings and finishes backed by timely delivery.

This successful developer with that unmistakable midas touch has indeed always had a knack for spotting great land deals and turning them into successful developments following a succession of launches especially in the Klang Valley and Kuala Lumpur, having built residential houses and apartments, as well as commercial buildings, factories and industrial complexes.

“At Distinctive Group, our values define who we are. We specialise in boutique residential and commercial properties. Our vision is to be recognised as a premier boutique developer specialising in delivery innovative and quality products in a timely manner.

“Distinctive Group is happy to share this exciting journey in developing Iskandar Malaysia. The Group feels proud that it is part of and able to contribute to Iskandar Investment Berhad’s innovative plans for the region,” says Koh. Preferring to remain low key, the developer who is big on delivery is not satisfied to rest on its laurels but will continue to innovate and raise the benchmark of excellence even higher. Going where other developers have not tread in terms of its generous offering of a comprehensive and superior range of facilities, residents will be cocooned in comfort.

Backed by an impressive track record of timely delivery, Distinctive Group intends to take the company to the next level within the next few years and has no plans of stopping.

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news & events

Recognising Excellence at

PIPDA 2018 The fourth edition of the Property Insight Prestigious Developer Awards (PIPDA) 2018 took off on a resounding note graced by Housing and Local Government Minister YB Zuraida Kamaruddin. The awards pays tribute to the real estate industry that represents the pulse of the nation’s economic heartbeat. The property industry aftere all, is a vibrant one which creates job opportunities while providing the impetus for the nation to move forward. Here’s a glimpse of the PIPDA 2018 gala award night in all of its splendour.

BY YVONNE YOONG

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Spotlight on PIPDA 2018

Top 10 Developers Property Insight Developers Award

BY YVONNE YOONG

The Property Insight Prestigious Developer Awards (PIPDA) 2018 witnessed more than 50 award winners taking to stage. The dinner night also culminated in over 600 guests attending the glitzy dinner night at Shangri-La Kuala Lumpur. Represented at the awards night was guest of honour - Minister of Housing and Local Government YB Zuraida Kamaruddin.

“This year, we received more than 120 nominations. The theme of this year’s PIPDA 2018 is entitled ‘Recognising Excellence’ which incidentally also represents the fourth edition of the awards that was created with the aim of recognising outstanding developers and development,” says Dato’ KK Chua, Founder and Managing Director of Property Insight.

Among those who received the Top 10 Developer awards were Malaysian Resources Corporation Berhad (MRCB), Mah Sing Group Berhad, OSK Property Holdings Berhad, United Malayan Land Berhad (UMLand), Putrajaya Holdings Sdn Bhd, IJM Land Berhad, Titijaya Land Berhad, LBS Bina Group Berhad , Sunway Property and Matrix Concepts Holdings Berhad.

“PIPDA represents the culmination of the passion of industry players as we each play a significant and important role in the continuity of excellence in the industry especially in this new Malaysia where hopes are renewed,” says Dato’ Chua.

Beyond this, he says that PIPDA can be an effective platform for encouraging greater collaboration between industry players as they network and build deeper and meaningful ties in order to raise the benchmark of greater excellence in the industry.

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Honoured At Prestigious (PIPDA) 2018 An illustrious panel of judges went through the nominations following four criteria namely track record, concept, building design and value creation.

Commenting on the criteria, he says that consideration was weighed in terms of the developer’s branding presence and track record as well as timely delivery backed by quality offerings.

The concept meanwhile takes into consideration innovation and viability in promoting a better place for work, play and stay. This is also to facilitate community living via aesthetic design and other value added offerings such as outstanding comprehensive facilities and unique addition would benefit communities.

Building design elaborates Dato’ Chua takes into consideration the aesthetics of the development’s façade and internal layout of the building as well as the interplay of form and function coming together to facilitate the proper functioning of the overall ecosystem of the space.

Meanwhile, the last criterion – value creation takes into consideration the future value of the development that could result in capital appreciation over the long term for buyers and investors alike.

Timing-wise, PIPDA comes at the right time to further encourage the mandate and call for excellence among industry players to up the ante, never give up and to further their quest in order to address the needs of the market.

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Spotlight on PIPDA 2018

Recognising Excellence In

PIPDA 2018’s Midst The four luminaries honoured on the gala night of the Property Insight Prestigious Developer Awards (PIPDA) 2018 represents a rare breed of true professional veterans who have done much for the real estate industry

BY YVONNE YOONG

The personal recognition for the “Best CSR Award” went to Tan Sri Datuk Hj Mustapha Kamal for his community initiatives under Yayasan Emkay. He was represented by Yayasan Emkay Chief Executive Officer Hjh Zainon Kasim.

The “Leadership Excellence” honour went to YB Datuk Kamalul Arifin Othman, Group Managing Director / Chief Executive Officer of Pelaburan Hartanah Berhad.

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The “Lifetime Achievement Award” went to none other than Tan Sri Dato’ Sri Leong Hoy Kum, Founder and Group Managing Director of Mah Sing Group Berhad.

For the first-time ever, the personal recognition awards in the “Industry Excellence “category went to REHDA President Datuk Seri FD Iskandar who is also the Group Managing Director and Chief Executive Officer of Glomac Berhad.

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main feature

The Master’s Masterpiece A work of art best epitomises Manhattan Business Hotel which received the “Best Business Hotel” title at Property Insight Prestigious Developer Awards (PIPDA) 2018 with its blueprint for inspiration being Manhattan city

BY YVONNE YOONG

Leo Chong, Executive Director of Manhattan Business Hotel

The unmistakable Manhattan feel makes its distinctive presence felt in the heart of Damansara Perdana, Petaling Jaya and Glomac Damansara in Taman Tun Dr. Ismail in Kuala Lumpur via the Manhattan Business Hotel. Inspired by the magnetic appeal of the charms of this beautiful city with its pristine setting promising guests a unique home-away-from-home stay, the hotel has built up its niche corporate clientele and has a distinct charm all of its own.

Indeed, the Manhattan Business Hotel makes its entry as the latest and newest kid on the hotel block - drawing inspirational magic from Manhattan where almost every blockbuster Hollywood movie was shot.

“Manhattan Business Hotel is themed with the beautiful Manhattan city settings which offers guests a unique experience of staying within a homely away-from-home feel. Every effort is made to ensure our guests feel comfortable and welcome,” shares Kenneth Chin, General Manager of Corporate Affairs and Marketing of the Manhattan Business Hotel.

“Manhattan is a beautiful city in the US. It represents an exciting and bustling district in New York City. The name is famous and

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easy to remember. To us, Manhattan is the financial market of the world. Its name also represents ‘Beauty’ and ‘Business’ which are apt descriptions of the hotel,” relates Chin further.

The hotel is owned by 3M Bintang Sdn Bhd’s Datuk Michael Lim who is the designated chairman of the group who shares that initially, the name Manhattan was chosen because it is a city full of life and teeming with various businesses.

“Everyone knows Manhattan. The city is built on strong metamorphic rock known also as Manhattan Schist. The same foundation is used to build the underlying principle of the Manhattan Business Hotel business. A group of very good friends from church had this idea of employing people at the hotel in order to prosper them and also as a way to serve others,” shares Lim. According to him, the idea started in 2012 and at that time, this idea came up to do a business hotel. After two years of planning, the first Manhattan Business Hotel was opened in Damansara Perdana on May 1, 2014. This was due to their researching findings showing there is a shortage of simple business hotels for people travelling from Kuala Lumpur for corporate meetings.

(From left) Kenneth Chin, Datuk Micheal Lim and Joshua Ang

The business which was started in 2013 under the name 3M Bintang saw seven shareholders joining forces in converting a six-storey shop lot in Damansara Perdana into the first Manhattan Business Hotel.

In all, around RM3.3 million to RM3.5 million alone was spent on renovations alone for the first hotel in Damansara Perdana.

Established with an aim to please, the Manhattan Business Hotel Group’s objective was to set a new high standard for corporate guests. Relying on the good design taste of the like-minded seven shareholders proved to be a resounding success – judging from the classy interior and exterior of the Manhattan Business Hotel.

“Some – in fact most - of the shareholders are in the construction business so they came up with this idea of a nice Manhattan feel just like that in New York. The hotel’s ambience is comfortable and looks simple but grand,” enthuses Lim stressing on the importance of adhering to this concept.

“We started with seven shareholders and we are lean and mean – with most of us having our own businesses. We appointed Joshua to run the show while we are the ones who support from behind,” says Lim crediting Joshua Ang who is the General Manager of Operations at Manhattan Business Hotel with running the show.

Manhattan Business Hotel, Taman Tun Dr. Ismail

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main feature No stranger to real estate, Ang, armed with his property agent background, adds that most of the people who patronise the hotel are corporate folks representing businessmen from outstation including those from Sabah, Sarawak and Singapore.

In fact, accordingly to him, out of the filtered corporate crowd, approximately 70 per cent of guests here constitute locals while 30 per cent are foreigners from Germany, Europe and Japan who appreciate the nice, comfortable and clean ambience at both hotels.

“Our mission here is to serve our guests. We chose this location as it is a business centre with lots of businesses operating here.

The location here is well-centred as many people go to The Curve and Kota Damansara,” he elaborates at the interview with Property Insight conducted at the hotel’s premise in Taman Tun Dr. Ismail.

Emerging As Best Business Hotel The Manhattan Business Hotel incidentally emerged as the “Best Business Hotel” at the Property Insight Prestigious Developer Awards (PIPDA) 2018 much to the pleasant surprise of the owners.

“Being a new player to the hospitality business, we are indeed surprised and honoured with this recognition. From our humble opening back in 2014, we are certainly blessed to enjoy repeat returns of good guests who continue to support us until now even though we are the new hotel kids on the block. We are thankful and today, we focus more on learning about our guests experiences,” reiterates Chin.

“Winning an award is really an honour and we’ve gotten a few awards already including from the Online Travel Experiences (OTAs) such as Booking.com and Traveloka. We are very honoured because we are relatively new to the business and industry. We have a lot to learn from our customers,” adds Chin.

“They come in sometimes stressed, with anger or disappointment and we try and make their day better. Now, it’s about customer

Manhattan Business Hotel, Damansara Perdana

experience, so from that, we learn from the customers to give them better service to make their stay here positive,” he shares.

According to Chin, testimony to the attractiveness of the business hotel lies with its 70% to 80% occupancy rate at anyone point in time.

Due to the brisk business, plans are underway for another two hotels – with a next door expansion in the pipeline that will double up the room count.

“Business has been very profitable and is growing very fast,” continues Chin.

And indeed, business has grown by leaps and bounds since the hotel was established whereby the whole concept was to give a comfortable place for people to come and stay as well as conduct their business dealings and launch off to go to work.

Expansion Plans For The Future Manhattan Business Hotel which is currently represented in Damansara Perdana and Glomac Damansara in Taman Tun Dr. Ismail is seeing another expansion with the owners looking into opening a new hotel in the very heart of Kuala Lumpur itself.

“We are planning to expand to as many as five to eight hotels within Malaysia in the next five years.

“In fact, we are on the lookout for investors who are interested to joint venture (JV) with us to be part of our expansion plans as we want to establish a hotel chain business using the Manhattan

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Business Hotel signage. Location is very important so if you have properties or a building at strategic locations, we can consider to do a JV,” he adds.

Manhattan Business Hotel – At Your Service

The Manhattan Business Hotel in Taman Tun Dr. Ismail has 58 rooms whereas Damansara Perdana will house 49 rooms. Price reasonably ranging from RM140 to RM200 and is equipped with seven levels of rooms and a mezzanine level complemented by a compreshensive set of room amenities.

Manhattan Business Hotel’s mission is guided by the following three pillars including:-

“Manhattan Business Hotel maintains a certain clientele – mainly corporate and travelling businessmen and business women.

We are premium but affordable as a luxurious, comfortable and reasonably priced boutique business hotel,” enthuses Chin further.

“Our target market are business travellers belonging to the Small and Medium-Sized Enterprises (SMEs) sectors. In the 2016 Economic Census Report, SME businesses made up 36.6 per cent of Malaysia’s Gross Domestic Product (GDP).

SMEs is the main driving force that is promoting the national economy. Although the scale and turnover of the SMEs are not big – it is recorded that 650,000 or 96 per cent of the business registration in this country are SMEs,” he states adding that the hotel location is chosen based on market study the owners have conducted on these SMEs in terms of demographics and location.

Bed & Breakfast At Its Best

• To serve our GUESTS by providing them with the highest standards of comfort and convenience. We seek to deliver on our promise of value and quality above all else.

• To serve our EMPLOYEES as we strive to create a better workplace for them to develop themselves in an environment of trust, loyalty and encouragement.

• To serve our COMMUNITY. We value our place in the community and will work to develop those relationships and also to respect and protect our environment.

Vision Manhattan Business Hotel aims to be the Business Hotel of choice and hopes to grow into a reputable hotel chain in Malaysia within the next five years.

For bookings and enquiries on Manhattan Business Hotel, kindly contact Kenneth Chin at 012 2090 268 or Joshua Ang 012 233 1616.

According to him, although Manhattan Business hotel doesn’t offer extravagant facilities of most other resorts or star-rated hotels – but only the necessary facilities, services, comfort and secure environment of a business hotel – the stay represents a “practical extension of our guests daily life” during their stay with the hotel.

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main feature

POST GE14 IMPACT ON PROPERTIES The 14th General Election (GE) has come and gone. And, with the dust having settled alongside the overwhelming excitement of which party would win, industry players are now waiting in anticipation as to the changes that would now envelop the nation - given the formation of the new Government under veteran politician Prime Minister Tun Dr. Mahathir Mohamad with Pakatan Harapan’s promise to do away with the unpopular Goods & Services Tax (GST) among others. Property Insight analyses the impact pertaining to the property industry by seeking viewpoints from the experts

BY YVONNE YOONG The dust has finally settled after the most epic 14th General Election (GE) that had everyone sitting on the edge of their seats (or beds for that matter - given the high level of excitement and anticipation of the pending results that ran into the wee hours of the morning) which had almost an entire nation sitting up in anxious expectation as to what the final outcome and results would be.

The unmistakable and palpable sense of euphoria that ensued with Pakatan Harapan’s overwhelming victory heralding in a new Government made history. And with that, Tun Dr. Mahathir Mohamad made history not only as Prime Minister of Malaysia for the second time - but also as the world’s oldest Prime Minister at 92 years old! Now, with renewed hopes and fresh expectations riding high on the winds of change, what can the real estate industry expect with the announcement of plans for the abolishment of the Goods & Services Tax (GST) and a host of other initiatives?

We asked the expert opinions of key industry specialists as follow:-

SIVA SHANKER, HEAD OF INVESTMENT AXIS REIT MANAGERS BERHAD

CURRENT MARKET SENTIMENT The property market has been on a decline since 2012.

Furthermore, it continued its decline well into 2017. All indications

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were that the decline concerning the property market was slowing down and that we would see some improvements in 2018.

A report by Jabatan Penilaian & Perkhidmatan Harta (JPPH) indicated that the volume of sales in January and February had improved by 4%, denoting the earliest indication of an improving market situation. Due to heavy speculation on the upcoming GE, the market went into a slowdown mode, preferring to adopt a “wait and see” attitude.

OUTLOOK/IMPACT ON THE PROPERTY MARKET All indications were that 2018 would be a better year for the property market than 2017. With the GE around the corner, the market waited with bated breath to see the outcome.

Two scenarios were possible:

Barisan Nasional would win the election

Pakatan Harapan would win the election

If Scenario 1 had happened, the business community would have heaved a sigh of relief and gone on their merry way. They may or may not have liked the result but they would have been glad that the uncertainty was over, the long battle finished, with things beginning to settle down. The market then would have started improving gradually over 2H18.

If Scenario 2 had happened, there would be initial apprehension at the result. The business community would now be facing

a brand new entity in all its dealings. This uncertainty would have resulted in a “wait and see� attitude extending beyond the elections. But the apprehension would have settled in the short term and the market would have started its upward climb, although far more hesitantly.

Sector / Volume

2017

Residential

121,483

Commercial

13,823

Industrial

3,504

Development

11,876

Agricultural

43,804

Others

194.68

Total

194,684

No one saw the third possibility.

62.4% The unimaginable 7.1% scenario whereby Pakatan Harapan 1.8% would win with 6.1% such a resounding victory.

Barisan 22.5% Nasional now 0.10% remains a mere 100% shadow of its former self while Pakatan Harapan is on a high and the feel good factor and euphoria amongst Malaysians is overwhelming.

%

I predict that this overwhelming feel-good January & February 2018 Total sales transactions factor will shortly spillover improved by into the market. This will start turning into increased sales - not just for the property market but also can be seen translated in the pick up of the retail market.

THE GOOD NEWS IS:

4%

I believe the upward climb will begin to gain momentum in 2018 and will continue its spike as Pakatan Harapan gets down to the business of running the country and cleaning house.

2018 would certainly register a significant improvement over 2017 - both in terms of volume of sales and total value.

With the abolishment of the GST from June 1, 2018 - the market will be further boosted. There will be more disposable income in the market and this should translate into more sales in all sectors

22%

Agricultural

6% Development 2% Industrial 7% Commercial

63%

Residential

of the market. The property market will also be a big recipient of this, with sales of commercial and industrial properties no longer attracting any GST. Hence, sales should improve.

I believe this is the light at the end of the tunnel that we have been waiting for, for such a long time. The results of the election has given everybody hope and this new hope will translate into improvements in the property market.

It is also encouraging that the new Government has placed much emphasis on affordable housing.

It is my ernest hope that the new Government gets the affordable housing issue right as this has been bandied about for so many years already, and with so little results to show for it. This is not a difficult thing to do and all it requires is an iron political will coupled by a sense of fair play and justice.

It is also time that the Government engages the relevant stakeholders before making policy decisions on property matters.

There are many qualified people around with many years of experience and they have much to contribute.

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main feature

DATUK SR. PAUL KHONG MANAGING DIRECTOR OF SAVILLS (MALAYSIA) SDN BHD All properties except for the residential units will see an immediate positive impact by June 1 when GST is zerorised and there is no requirement to pay for GST on any property transactions.

Buyers who have been holding back their property purchases in the current quarter will move forward in their buys and will see more transactions moving into 3Q18.

We have seen residential developer, Hillcrest Gardens such as the Kuok Group dropping their prices in its Hillcrest Heights project by 3% immediately in view of this GST savings in construction costs. This is a tax savings passed back to the purchasers. It is thus a good time to slowly start to venture and explore investing in properties again as the feel good factor is also returning.

As forecasted earlier, we expect the property market to firm up well by 2019 and it is a good time to start to venture and explore going into property investment again.

There Has Never Been A Better Time To Buy Savills Malaysia would like to reiterate that 2018 will be significant for the Malaysian property market, particularly with the new Government’s promise of clean and fair governance. We anticipate the markets to have a knee-jerk reaction this week, with Q218 set to be relatively quiet for property transactions with the onset of the Ramadhan fasting month. However, the outlook for Malaysia appears to be promising as the new Government gets ready to work to address some of the institutional problems that have held back Malaysia’s long-term prospects and deterred foreign investment.

Residential Market The value of unsold units that have been completed in Kuala Lumpur and Selangor rose by 44% in 2017. In the same year, the number of unsold houses in Selangor rose by 108% to 5,200 units.

We anticipate that renewed confidence in the market will encourage buyers who have been holding back. However, there will be a period of adjustment and consolidation required to clear existing stock before we see much evidence of price increases.

Generally, we foresee that prices will firm up in 2019, and it will be early 2020 before developers can respond by stepping up supply.

In short, particularly in Greater KL and Penang, there has never been a better time to buy.

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Office Space Sadly, not even the new Government has much influence on low global crude oil prices – and oil and gas players make up 33% of the office market in the Kuala Lumpur city center. While it will still take some time to absorb the 16.9 million sq ft of new space to be completed by 2020 – in the short term, we anticipate that with the uncertainties of the elections behind us, more potential upgraders will see their way clearer to invest in a move to new premises. This could lead to an absorption of more than the 1.9 million sq ft we saw in Greater KL last year. In the medium term, we anticipate that the new office take-up will increase in tandem with a growing economy and more foreign direct investment. Datuk Christopher Boyd, Chairman of Savills Malaysia does not think that the abolition of GST will have any meaningful impact on office rentals.

Retail Sector While the market is likely to remain well supplied in Greater KL, we see the likelihood that retail turnover will pick up in areas where GST is lifted from merchandise, and not replaced by a sales tax.

We hope that luxury goods will fall into that category, making Malaysia a major tourist shopping destination.

Mr Allan Soo, Deputy Executive Chairman of Savills Malaysia opines that the groceries, food and beverage as well as mass prestige fashion brands will see positive impact from the lifting of the GST.

Industrial Sector Datuk Paul Khong, Managing Director of Savills Malaysia believes that renewed market confidence will boost foreign direct industrial investment. Coupled with surging domestic consumption, the prospects for the industrial and logistics market are very positive.

Also, look out for rising industrial rents which have lagged behind recent strong increases in industrial land values. There’s good news for REITS and other funds which are focused on this market sector.

The Investment Market Institutional investors, particularly overseas investors, dislike uncertainty. With the GE14 behind us, we are preparing for a major uplift in domestic and foreign interest in commercial investment properties. Malaysia has extremely liberal policies related to foreign investment in commercial properties and can offer attractive yields.

The prospects of appreciation in the Ringgit and strong economic growth will now make Malaysia an outstanding regional investment opportunity (hub).

Platform

Weekly users Malaysia (%)

Weekly users - global %

Facebook

88

47

YouTube

76

35

WhatsApp

72

22

Facebook Messenger

71

28

Veena Loh Geok Mooi

WeChat

61

30

ASSOCIATE DIRECTOR OF JLL PROPERTY SERVICES (M) SDN BHD

Google +

52

28

Line

43

10

Instagram

36

11

Skype

36

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Transitioning to A New Malaysia We observe that personalities play a more dominant role than ideology in Malaysia with members moving among political parties.

We also observe that we are transitioning into a New Malaysia where race-based politics is slowly giving way to a political system of developed countries, as seen in a more liberal ideology supporting social equality or left wing and a conservative and generally traditional or right wing government that favours market forces and accepts social hierarchy as an outcome.

Pakatan Harapan is more like a left wing Government. It has diverse talent and as a coalition of differing ideologies, there are people in these parties that can be tapped into to formulate good policies.

As long as all parties are able to see what is in the best interest of the “rakyat”, the coalition can work towards a pragmatic solution.

Struggles of the new generation If we take a snapshot in time, Malaysia is also at the demographic window where the proportion of working age group is prominent.

The bulk of the Malaysian population (61%) constitute Gen Z and Millennials. Some of the biggest struggles of this new generation are the challenges of house ownership which constitutes the largest segment of their income.

An interesting workplace, career progression, opportunities and meritocracy are likely to be on their wish list. Those who have made it are likely to be in the Gen X and Baby Boomers constituting 29% of the population. In another two elections away, most of the Gen X would have retired and the Baby Boomers would have become the silent generation.

The voice of Gen Z and the Millennials will then make themselves heard. If what they are struggling with today is not fulfilled, we should not be too surprised if they vote for change again. The difference between the haves and have-nots could widen if capitalism is left unfettered or if the Government-linked enterprises crowd out the small players.

In all likelihood, if the Gen X and Baby Boomers are not living with their parents, they would be renting and paying for their daily expenses under a higher inflationary environment than their

Twitter

30

16

Yahoo! Messenger

30

12

Viber

21

7

LinkedIn

16

6

Tumblr

16

6

Snapchat

12

5

parents. According to i-Money, 86% of Millennials in Malaysia rate the cost of living as their top three biggest concerns. Only 35% of Millennials are able to own a property according to a study done

by HSBC’s “First Beyond the Bricks”. Without parental support, renting a very small new home is now the norm for the newly wedded generation.

The internet has become an “educational experience” for them and they are more exposed to local and international news than the Baby Boomers. Yet, they are also physically more isolated and may end up seeking social groupings through a chat group.

According to the Internet Users Survey 2017 by Malaysian Communications and Multimedia Commission, internet users in the country have increased to 24.5 million people last year which means nearly everyone in the country is connected online.

This compares to only 2.5 million people in 2006. Moreover, Malaysian internet users are amongst the most avid and socially engaged in the world. According to findings from Kantar TNS’s Connected Life study, over three fifths (62%) of internet users in Malaysia access social media networks daily as compared to 42% globally whilst 52% use instant messaging everyday.

Hence, the expectations for governance, transparency, fast answers and solutions are much higher for the new Government than in the earlier generations where the Government knows all and were revered and believed to do the right thing. Now, we have a new generation who is watching their leaders closely and they are not afraid of change. They respond to peer pressure via these internet forums, chat groups and facebook, etc. and as voters, can be persuaded to change when they are given credible information.

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main feature The new electorate will be well-informed (or mis-informed depending on their sources) through the numerous information channels now available. Decision-making may eventually move towards consensus rather than being reliant on existing personalities, especially given that positions of power can only be for two terms.

While campaigning in ceramahs have been a very important part of past elections in Malaysia, campaigning in the future will have to be more sophisticated to attract the attention of voters. Consistency is what voters are watching in the leaders that they have elected.

While no leader is free from mistakes, how the mistakes can be rectified and are clearly explained and communicated to the public is to be expected and can be forgiven.

Conclusion In a sense, it may have been easier to win the GE14 as the different parties were united by a common goal to save Malaysia

from the excesses of kleptocracy. To win the next election, the new Government should focus their efforts in addressing the needs of these future voters.

Pakatan Harapan needs to harness its talent to steer it through its next challenge and find the most basic and unifying stand amongst the coalition which Malaysians voted for and that would comprise good governance, pragmatism in favour of ideology, sound ethics and principles, a corruption-free Government which will creatively find a means to bridge the divide between the haves and have-nots in economic, political and social terms.

The need for opportunities, career progression and meritocracy amongst the struggling new generation of Millennials and Gen Y and Z need to be addressed to attract and retain local talent in order for the nation to grow and prosper. This is not just a new Government but the beginning of a New Malaysia.

TONY YAP HEAD OF MARKETING TEAM, IQI GLOBAL BERHAD

What’s Going To Happen After GE14?

Looking at the current status, what our new Government doing is RECOVERING our Government’s financial strength and the overall economic system in Malaysia. Besides solving the national debt and the living cost problems, as what I have observed so far, one of the directions our new Government is headed for will be focusing on attracting “Mutualistic” Investment instead of “Parasitic” Investment.

Parasitic Investment is a form of investment in which one party gets all the benefit while the other party suffers lost. Some of the previous mega projects initiated by our previous Government that is in Joint Ventures (JVs) with other companies are not showing a long term benefit to our people. In fact, the JV partners gain all the benefits.

As of now, we need more mutualistic and genuine investors to help us in the overall infrastructure development.

By cancelling off those projects that are from “Parasitic Investors”, we are now sacrificing our short term pain for long term gain. We may not be seeing a huge development process in the near future - but this is the time that we are filling the gap of “over-developed” issues.

And.... What about zero GST implementation? What will be its impact to the property market?

Building cost and material cost will now not be charged with the 6% GST and it is expected that the overall building cost will be lowered down. However, there won’t be any significant price drop in the short term as some of the building materials which were purchased previously have already been charged 6% GST. It is a smart move to stimulate the market, some developers have already lowered the price by around 2% - 3% in response to this 0% rate GST implementation. This implementation is encouraging those wait-and-see purchasers to take action now, especially those concerning buyers of commercial titled properties.

The decision to zerorise GST not only brings down business cost but also improves the ease of doing business in Malaysia. Hence, it would boost more money flowing into the market.

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international insight

Million Dollar Makeovers

For High-End Results At A Low Budget Australia’s No. 1 Interior Designer Sasha de Bretton shares 7 top renovation tips to add value to your property exclusively with Property Insight

BY YVONNE YOONG

Good Flooring

Floors are the first thing you will see when you walk into any setting. Using timber floors in rich deep colours and herringbone patterns can certainly add class to the overall look and feel of a place. Therefore, be sure to choose tiles that come with a faux porcelain or marble look. Don’t opt for flat and plain looking, boring tiles that look cheap. Another tip lies in using costeffective marble knock-offs that look like a million dollars.

Good Paint Colour

Paint can soften and warm the ambience in the home and you can use full strength, half strength or quarter strength to create ambient moods and different shades from the one base colour. You can also capitalise on feature walls by way of accentuating certain accent walls you want to stand out.

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Kitchen

Kitchens need to have the “wow” factor.

Use three to four mixes of materials as in gloss doors in two-toned colours mixed with wood grain features and LED lights under overheads. Use a door profile rather than flat doors or a mix of flat and profile doors and mix in two colours. Frame the kitchen in a different colour using wood grain to complement the outer edge of the kitchen and frame the underside of overheads and down sides to create a framed box behind the cooktop. The clever mixing of materials and colour as well as feature lighting and drop pendants over island benches can create the “wow” factor a kitchen needs.

People, particularly women who make most of the decisions when buying a home, want to impress with their kitchen as it is the hub of the home for the family to gather and to entertain guests so gorgeous kitchens can sell a home faster.

Bathrooms

Bathrooms need to feel luxurious so always use a marble, porcelain lookalike for a timeless, boutique hotel feel that looks expensive. If you choose to go contemporary, select tiles that look modern, urban and funky for that polished concrete look. Again, you will need to pick your style that matches the rest of the home. As yourself if it is contemporary, urban industrial, classic French Luxe, Hamptons costal or Art Deco style in order to flow with the same theme throughout the home. Use a feature wall on one wall such as the shower but use big tiles to make it feel large for i.e. 300x600ml, 450x450ml or 600x600ml or larger, depending on the size of the space. This will make the space feel bigger and more expensive. You can also include a fixed glass panel walk at the shower area but don’t box it in with a fully framed screen. Incorporate drop feature lighting/pendants over a bath or vanity basin. Make mirrors as large as possible and extend them to the ceiling to make ithe space feel larger.

Feature walls

Use wallpaper, laminate or timber panels and metal laser cut screens back lite to create a focal point in the room. You can add a lot of “wow” factors with feature walls but just keep it to two or three and don’t over do it, as less is more. This can be added to a lounge wall, dining or master bed head.

Interior Style Selection

Choose the right style or theme that flows coherently to create a nice ambience. Pick your style - be it modern, industrial,Hamptons or French, etc. Know what’s trending as well as what is currently hot in the market. You can add colour and personality into the space by way of accessorises but keep the main base pallete neutral. Ensure the same style flows throughout the space while making sure nothing clashes and one can keep a level of simplicity. Don’t have too many things competing with each other. Less is more. Custom-made television cabinets complemented by shelves can also be a focal feature in the lounge area.

Furniture & Accessories

These items create the overall look and ambience of the space. Having the right furniture to complement the base pallete will add character, charm, sophistication, the “wow” factor while creating a visually pleasing experience for the eye. Creating jsut the right mood and ambience can be achieved via the use of art, rugs, vases and accessories that are critical in raising the value of a property’s worth and make you fall in love with your home.

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strategy There have been many strategies required in the lead up to property buying from the understanding of one’s financial position to learning how to leverage wisely from banks and the researches on factors that could contribute to a high ROI (Return On Investment) including post purchasing action such as renovation and managing tenants.

Despite learning about every possible step involved to acquire the first, second or maybe more properties to add on to one’s portfolio, there are always many options for us to consider. Every opportunity that comes along requires careful consideration although the process can become familiar and smoother as one repeatedly invests in a similar segment of the property market.

Timing has always been a crucial viewpoint. As much as we want to predict the best timing to enter the market, no one really has a crystal ball to peer into the future.

Therefore, thorough preparation is crucial in any property investment decision. For those who are prepared - when presented with an opportunity, swift action could likely bring along a profitable venture. This is very apparent in “Pre-Launch” properties whereby below market deals are often seen as developers throw freebies to “lockdown” the buyers’ interest.

When considering a new project that has yet to be developed (also frequently known as “undercon” properties), there could be many phases that a developer may plan to release their launches.

Whether they are residential or commercial properties, a developer usually splits the launches due to many reasons such as to excite the market with lower priced launches first as well as to fulfil needs in a township for i.e. commercial shoplots providing staggered launches with the necessity that forms part of an investor’s consideration.

RESIDENTIAL PERSPECTIVE Phase 1 launches by property developers are usually priced lower than those to be launched later in terms of both absolute amount and the price per square feet (psf).

As subsequent phases cannot be lower than the initial launch for obvious reasons, many would want to rush into securing a unit for investment since ROI is all about entering the market at a low price.

Usual units that are easily grabbed by early investors and buyers are those that are in the lower floors since every floor increase would attract additional premium - not to mention different views.

R O F S E S A H P G N

N O I T C U R T S N O C R UNDE

BUYI

S E I T R PROPE

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While securing at below market value could be the underlying reasons for good ROI, one may need to rethink about the potential upside of the property too. If the properties can appreciate in value over the short to medium term, then it makes logical sense to buy into them even at later stages although one may have missed the inaugural phase. There is more good than harm in putting our monies into a potentially good property which can give a strong yield albeit at a later stage than investing early in a non-performing property.

COMMERCIAL PERSPECTIVE (SHOPLOTS) However, the same could not be applied when it comes to commercial properties such as shoplots in a township. Buying the earliest phase of a shoplot launch may pose a higher risk to the investor as there may not be anyone who would want to rent the shop to run a business especially if the neighbouring vicinity has yet to have any residents move into the area.

Not only does the shoplot investor have to prepare for a longer holding period aka deeper pockets to absorb the monthly instalments to the bank - they are also susceptible to competition from other shoplots having the same urgency to rent out their units in the fastest time possible.

Imagine - if one were to wait for a little longer and invest in the later phases of a commercial property, the whole dynamics of the investment game could be very much different. Yes, one may encounter a higher psf price than the earlier launched phases, but an investor who has been diligently monitoring the area or township could place the position back in his or her favour as the existing business environment of the earlier launches would have been proven.

Perhaps a more mature neighbourhood of residents would translate into more stable economic activities - ensuring a less risky form of rental return to the next potential shoplot investor. It is therefore imperative, from these viewpoints above, that an astute property investor might want to consider the ‘entering phases’ of property buying and not succumb to attractive offers usually provided for the earlier phase of a property development.

As much as the calculated ROI figure temptation is there, property investment must also be practical to the investor. In conclusion, nothing worth investing ever comes easy. Be a smart property investor is important but being a matured property investor does take time.

Stay vigilant and stay hungry, Happy Property Researching!

ALAN POON

is the Founder and CEO of SuperiorWealth Group.

Email him at alanpoon@superiorwealthmastery.com and for more information, visit www.superiorwealthgroup.com

JUNE 2018

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strategy Spotting The Future Trend In

MIXED DEVELOPMENTS

No matter which field you may work in, the market is always evolving to accommodate the changing requirements of the population. The real estate market is no different. The strategies and trends of yesterday may not apply to today’s property market though and one such trend lies in mixed developments.

In the past, the demand for mixed developments was quite low, as was the chance of approval for these kinds of developments. The old way of living used to be one whereby the living residences, workplace and shopping area would be separated by large distances.

Now however, as the Baby Boomer generation heads into retirement and the more career-oriented Millennials start their own careers, the demand for cosy, cost-effective housing with essential amenities nearby, is growing.

Before we continue, let us explain these terms.

What are mixed developments?

Mixed developments or Mixed-use developments is a type of urban development that blends residential and commercial real estate in one area. A mixed development may take the form of a single building, a city block, a district or an entire neighbourhood.

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Now let us look at

Why mixed developments are in high demand?

1. Convenience

3. Better Property Management

One of the most appealing aspects of a mixed development is the convenience of location to those who live there. Generally, these properties are situated in close proximity to amenities such as schools, clinics, libraries, parks and shops. These types of properties help save time and money since residents do not need to travel far to get to their homes or work area to buy what they need. Homebuyers today are looking for properties that can offer them ease of access and are well-connected.

Since mixed developments comprise a blend of residential and commercial real estate, well-seasoned management services are necessary to address the different needs of the community.

The benefits of good management services include better tenants, shorter vacancy cycles, better processes and improved overall support.

2. Greater Exposure Aside from cultivating a residential and commercial audience, mixed developments are able to attract immense interest and foot traffic as compared to stand-alone stores. What’s more, tenants and businesses of mixed developments are generally the ones which will benefit greatly thanks to spending from local residents as well as those working within mixed-use buildings.

4. An Enriched Ecosystem For the most part, a mixed development represents a closed ecosystem in which each sector provides for and supports each other. In this kind of ecosystem, should the value of one sector go up, the other sectors will go up as well.

A good example of a successful mixed development is Publika in Mont’ Kiara, Kuala Lumpur. The lower floors incorporate the commercial sector like the Publika mall while the upper floors comprise residential units.

Why Do We Need More Mixed Developments?

Land is a fixed resource which means we cannot create more land jsut whenever we need it. As it stands now, the availability of firsttier and second-tier land locations is going down. In other words, there is no more available land. We simply cannot afford to use the old system of having separate districts that are far apart from each other. This is where mixed developments come in. And, with mixed developments, we can make optimum use of the limited land we have available to us.

An example of a development project that makes good use of the land they have is Millerz by Exsim. Millerz is being built on just seven acres of land - yet it has luxury residences, top-tier commercial lots and a college nearby as well.

Conclusion In developed countries like England, Singapore, Hong Kong and Canada, all first-tier CBD (Central Business Districts) are mixed developments. This is an unavoidable trend. Today, everyone is looking for convenience whereby one can live, work and play all in one place. Mixed developments are the way of the future, and the sooner investors join the bandwagon, the more they have to gain.

Contributed by : RAINEE LEE

JUNE 2018

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strategy

RM1 TRILLION IN DEBT? DO WE REALLY HAVE

WHAT DOES THIS MEAN TO YOU, ME & PROPERTY INVESTORS? There has been a lot of talk lately about whether our national debt is RM 1 trillion or whether it should follow “international reporting standards” of RM705 billion.

I would like to offer a technical and accounting explanation of how the RM1 trillion was derived. P.S. - This post is not for the fainthearted and I have kept it as politically neutral as I can.

• 1st Component - Official Government debt = RM705 billion as of March 2018 (Source:- Bank Negara Malaysia) • 2nd Component - Government guarantees of RM199.1 billion are then added to the broader definition of national debt. Make no mistake about it folks - they are no longer contingent or “possible” liabilities that are just supposed to be disclosed. For example, a non-revenue entity like Dana Infra can’t pay its debt so the Federal Government has to foot the bill, no matter what.

• 3rd Component - Many have argued that lease payments of

MARK CHUA

is the bestselling author of the book “WHO SAYS”and is a Senior Vice President of a foreign bank. Email him at hello.markchua@gmail.com or www.facebook.com/MarkChuaMY

RM201 billion are just operating expenses (OPEX) that should not be a part of Federal Government debt. Hello? The technical definition of a liability is the “Future sacrifice of economic benefit that an entity is required to pay”. RM201 billion sounds like a pretty big sacrifice to me. An expense can’t exist without a liability or a reduction in assets.

• Mental theorists are therefore saying that official “standards” classify debt at just RM705 billion (point # 1). However, with all due respect, that’s deeply missing the point. Our broader but absolute debt commitment is > RM1 trillion (Sum of points # 1 to 3), because it fits the accounting definition of a liability. That’s circa 80% of Gross Domestic Product (GDP).

• Let’s say my critics still insist that Government debt should just be the “official standard” of RM705 billion. Well, in 2018, RM30.9 billion will be spent on debt PAYMENTS alone. This is equivalent to 96% of our RM32 billion income tax revenue and 71% of our RM44 billion GST Bill. And, that’s mind-boggling!

FOLLOW THE INFRASTRUCTURE? OR FOLLOW FISCAL RESPONSIBILITY? Why do you think the powers that be are relooking the various mega projects and scrapping things like the RM110 billion High-Speed Railway (HSR) project?

Dear Property Investors - The phrase “Follow the Infrastructure” is heavily overrated. It is now time to “Follow Fiscal Responsibility”.

I now wonder what will happen to developments that have promoted their proximity to the HSR. If you want to be one step ahead of the crowd, don’t just do a one-dimensional area analysis or merely study property projects. Spend time analysing the state of our Nation’s financials, Budget and policies as well. This will have a direct impact on future development and priorities.

For the record, I have nothing against mega projects - but economic benefits must be clearly spelt out and balanced against our debt situation. Let us ask the following questions when we evaluate so-called “Infrastructure” projects.

• Is the 350km HSR project economically viable? What sort of ridership and load factors are we looking at? And, what is the expected payback period?

• What would be the pricing of a two-way HSR ticket? Today, a two-way ticket from Singapore to Kuala Lumpur costs circa RM400 via a low-cost airline. Would a HSR ticket be substantially cheaper?

• What are the opportunity costs of the RM110 billion HSR project? Can the RM110 billion be better deployed elsewhere? So, why not invest in a world-class education system? Why not invest in value-added industries like Biotech, Fintech or Artificial Intelligence? Why not use it as incentives for multinationals to open logistics or manufacturing hubs?

In all humility, let’s not engage in mindless semantics and squabbles on whether “official” debt should be RM700 billion or RM1 trillion.

Whatever it is, problems may arise in the form of unsustainable interest payments. As an afterthought, do you think we can still spend money like Paris Hilton and Jho Low?

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Intersection of 4 highways: SKVE, SILK, North-South Hwy & Sg Besi Hwy Ready student population of more than 20,000 within 2-3km radius Total population of 70,000 within 10 minutes An MRT station (Uniten Station) to be built on Line 2 nearby Major hotels, 14 universities/colleges and 5 hospitals within 20 minutes Lifestyle mall at De Centrum Located in De Centrum city (100 acres of freehold development)

Your neo-urban lifestyle comes with a truly self-contained neighbourhood, where if you so choose to, you won’t need to drive out for almost anything.

Daily shopping couldn’t get more convenient at the De Centrum Mall & Retail Shops. With lifestyle stores spread over more than 160,000 sq. ft. catering to your needs, you couldn’t be more spoilt for choice, with all literally beneath your feet.

strategy

Don’t Peak Too Soon

The Best Way To Avoid Peaking Too Soon Is To Plan Your Property Investment Unless you’re on a short-term buy-to-sell strategy, property investment is a long game to play. The rules of playing a long-term game means you need to pace yourself out. This is rather like the fable of The Tortoise and the Hare of which I am sure you will know: Over-exertion and misplaced confidence is a sure-fire way to lose the game whereas slow and steady wins the race. The reason why slow and steady is a winning strategy is precisely because pace is needed to withstand the course. The cyclical nature of the property market means that you will need to be prepared for the long-haul journey. This requires stamina and staying power if you are to sustain your resources across a long period of time.

The importance of timing in property investment cannot be underestimated. Those who time their transactions well are those who make the most money. Admittedly, trying to time the market is an incredibly difficult feat - however, with research and a dash of luck, it is possible. Having time on your side is a critical part of the game plan. It is often those investors who are forced to sell who end up losing. To remain in the game, you always need to ensure that you build in extra time. This also means that any mistakes you may make in your investment career would grow out. Time really is a great healer - even in the property market.

The best way to avoid peaking too soon is to plan your property investment well. That means calculating how long you intend to own a property and what you intend to do with it. It is about knowing

DATO’ KK CHUA

is the Strategic Advisor and Managing Director of Armani Media. Email him at kkchua@propertyinsight.com.my

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your “exit plan” from the start and all the different stages of the investment. This is even more important when you are planning on buying a property that requires refurbishment. Properties can be refurbished to varying standards and, while the local market will dictate much of what you are required to do, it is critical you assess any planned works within the context of the bigger picture.

Not planning or failing to stage works over defined time periods, is an error I have seen made by many investors. To get the most amount of “bang for your buck”, it is advisable to plan refurbishment works for maximum impact. Therefore, if you plan to rent a property for the long term, it is wise to hold back on high-end finishes until you are ready to sell. Glossy worktops and designer taps can look very stylish; however, they are unlikely to add any additional value to the rent, and are all too likely to create even more maintenance issues!

Rental properties inevitably suffer wear and tear over the years and, within a remarkably short period, take on that “lived in” and “used” feeling - regardless of how much money was spent on the renovation. For example, carpets can quickly lose their original lustre and kitchen units soon collect a huge variety of stains.

To regain the “premium” of a newly refurbished property and enhance the value of the end product, is the best practice plan and allow for additional improvements before placing it for sale. By doing this, you will ensure you maximise your investment - and get a top-dollar price for a “show home”.

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