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01 AUGUST 2018 WEDNESDAY
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A Journey to Quality > P04-05
The pursuit of quality is never-ending and SkyWorld is committed to making continuous improvement in its journey to excellence.
INSIDE THIS ISSUE
unfair stigma of auction property
Auction is just another mode of selling and buying. > P06-07
a peek at the southern gem
Property investors bullish about the Johor property market. > P08
celebrating the month of independence Join the contest to win a dimsum subscription. > P12
02 01 AUGUST 2018
STARPROPERTY.MY
Event highlights
To buy or not to buy auction property
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duty, etc) to transfer the property from the seller. ODAY’S buyers face challenges that range from finding a Generally, the loan will be fully drawn down much faster “suitable yet affordable property” to securing “a big than when buying from the primary market. However, buyBy enough mortgage” for the purchase. ing from the secondary market gives the buyer faster access Those intending to climb up the property ownErnest Towle to the property -- as a result, the rent money can now be used ership ladder have plenty to choose from in the primary for the monthly loan repayment. In addition, the secondary mar(buying from the developer) and secondary (buying from ket buyer will not face the risk of delayed delivery or project abanthe owner, real estate negotiator/agent or auction house) mardonment. kets. Both sources offer pros and cons, thus being able to fully grasp the Another avenue of purchase in the secondary market is the auction unique features of each market will be advantageous to the buyer or inproperty, which could be cheaper. These properties generally become vestor. available when the original buyers are unable to meet their mortgage reBuying from the primary market has advantages mainly in the form payments, resulting in a foreclosure by the bank and subsequent property of a lower upfront cash requirement. As most developers offer a sales auction. package that includes a discount, buyers need only put up a fraction of the Despite some challenges which may be associated with auction prop10% booking fee. For the balance, a mortgage usually kicks in. erties, knowing what to do and how to mitigate them will present buyers If the property is under construction, the buyer will only have to conwith the opportunity of walking away with properties that are below martend with the total amount upon the full drawdown of the loan. Typically, ket price. this happens upon the handover of the property to the buyer. Some people feel bad about buying auction properties because they Primary market buyers are commonly renters. So they have to pay may have “harmed” the original owners by paying less. On the contrary, rent until the purchased property is delivered (or not delivered in the case the buyer is actually helping to “cash out” a property that the initial owner of an abandoned project). can no longer afford. Buying from the secondary market often requires a bigger cash outIn this issue of StarProperty.my, we shed light on how buyers and inlay; the purchaser will have to come up with the 10% initial deposit and vestors can benefit from securing auction properties. fund all the required paperwork (legal, memorandum of transfer, stamp
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Editorial Contributing Editor DAVID YEOH Assistant Manager of Content & Customer Engagement LEE YAN LI lylee@thestar.com.my Content AISYAH SUWARDI THARMINI KENAS NG PAU LING HAKIM HASSAN VIKTOR CHONG
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StarProperty.my Event Highlights Jewels of Johor back for the second year
Video Producer ALAN KHAW alankhaw@thestar.com.my Designers KWONG CHEE OON QUEENY YONG NURUL AIDA TAJUDIN
MARKETING & SALEs Head of Customer Engagement & Support Ivy Leong 03 7967 1347 ivyleong@thestar.com.my Property Business Head of Sales JAMES OOI jamesooi@thestar.com.my Agent Business Head of Sales Kent Thew 03 7967 1388 (ext 1861) kentthew@thestar.com.my Marketing Manager Faye Tan fayetan@thestar.com.my
StarProperty.my Real Estate Awards 2018 The SREA 2018 is back! Log on to bit.ly/srea2018 for more info.
StarProperty.my Fair coming to your town With an array of excellent developments to browse through as well as fun activities such as contests and DIY miniature models, StarProperty.my fair is a must-visit event for
Honouring the property developers that have contributed to the enviable growth of the southern state, the StarProperty.my Awards 2018: Jewels of Johor will be held this September. Stay tuned to find out more about the awards. For details, visit bit.ly/JohorJewels2018.
Highlighting the BEST The StarProperty.my Best@ series on Bukit Jalil is live at best.starproperty.my. Discover more about the vibrant and most happening places by registering at bit.ly/BEST_BukitJalil to get your free e-copy. For the next instalment, the Best@ features Shah Alam which is rich in Islamic heritage and fine arts. Watch out for this Best@Shah Alam edition on Aug 29 (Wed).
Sunway Velocity Mall Venue: G Floor, Main Atrium Date: 30 Aug to 1 Sept Time: 10am-10pm Visit fair.starproperty.my for more info.
A new look on Property Trends
for its second outing from Nov 1-4. Jointly organised by MIID Reka Sdn Bhd (MRSB) and C.I.S. Network Sdn Bhd, RIX 2018 will feature interior products, furniture and materials from renowned local and international brands as well as inspire designers with fresh ideas.
which motivates us to come up with something more unique and special every year,” said Bandar Rimbayu senior general manager Chai Kian Soon.
the whole family! Don’t miss the two fairs happening this August: Sunway Pyramid Venue: LG2, Blue and Orange Concourse Date: 10-12 Aug Time: 10am-10pm
For all things property in both Chinese and English, log on to bit.ly/StarProperty_Emag to download our e-mag Property Trends.
Latest happenings Soam takes over as new Rehda president Datuk Ir Soam Heng Choon has been elected the new president of the Real Estate and Housing Developers’ Association (Rehda). He was previously deputy president and succeeds Datuk Seri FD Iskandar. The handing over was done during the Annual Delegates’ Conference on July 14. New national council members for the 2018/2020 term were also elected.
Trade expo back for its second outing Reka Interiors Exhibition (RIX 2018), Malaysia’s trade exhibition for the design fraternity, will return
Bandar Rimbayu run celebrates healthy living Back for its fourth instalment, the 10km #RunWithMe2018 fun run organised by IJM Land was flagged off at The ARC, Bandar Rimbayu’s show gallery, on July 15. The objective of the run was to inspire locals to live a healthy lifestyle and have fun doing it. “Run With Me has become a go-to running event in the country. We received an overwhelming response for our 4th installation,
Agile launches freehold mixed development project Agile launched its second development project in Malaysia with Agile Bukit Bintang, a high-end freehold project with a GDV of RM2.2bil. A joint venture by Agile Property and Tropicana Corp Bhd, the freehold mixed development comprises three residential towers, SOVO units and commercial lots on an area of 3.76 acres. Located within the Golden Triangle of Kuala Lumpur and surrounded by a wide range of amenities and facilities, the development is set to be a new city landmark in 2018.
STARPROPERTY.MY
01 AUGUST 2018
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Ask Me Anything
FACING UP TO AN AUCTION OR SUB-SALE Ask Me Anything is a platform for all readers to ask about all things property. If you have any inquiries, key in your questions at bit.ly/AskMeAnythingProperty . Compiled by Tharmini Kenas tharmini@thestar.com.my
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N this edition, we tackle questions related to auction and sub-sale properties. The answers are provided by Low & Partners managing partner Datuk Andy Low Hann Yong, Canaan Building Inspection Sdn Bhd project director Sr Joshua Kang and Messrs Eunice Tan & Partners founder Eunice Tan.
How to deal with foreclosure proceedings, building inspection and stamp duty payment Q1: What happens when foreclosure proceedings are initiated after a property owner defaults on the monthly instalments? Does the owner lose the property, or gain cash from the sale of the property (minus the bank loan)? A1: In the event of default, the bank is entitled to foreclose the property. The bank will apply to the court for an Order for Sale and then sell the property by public auction. The sale proceedings will be used to settle all the outstanding sums due and owing to the bank as well as other expenses such as auctioneer fees or legal fees that may be incurred in commencing the civil suit and/or foreclosure proceedings. If there is any surplus, the bank will refund the
sum to the owner. Q2: What are the issues/aspects to give attention to when buying sub-sale property? A2: The building inspection for a subsale property is vastly different from that of a new property. A sub-sale property would have been in the market for some time and probably used by the previous owner. Hence, it is subjected to wear and tear. You have to make sure the structure is sturdy, and the property is safe to be occupied. Check the mechanical and electrical fittings, and the piping for signs of water leakage. Q3: I bought a house from a second auction at RM550K. However, during the first auction, the bank set the market price at RM650K. Now, should the stamp duty payment follow the bank’s market price of RM650K or the second auction price of RM550K? Is the auction price more accurate than market price?
A3: The stamp duty of the transfer of the property either by way of Memorandum of Transfer or Deed of Assignment shall be sent to the Stamp Office for adjudication to determine whether the stamp duty is chargeable based on the contract price i.e. the second auction price (RM550k) or the market value of the property, whichever is higher. The fact that no one is willing to buy the property at that price does not mean that the auction price is more accurate than the market price. The Stamp Office will determine the market value of the property by taking into consideration the recent transacted price, launch prices of any new and upcoming surrounding projects, plus other factors.
Have a question? Scan here.
Disclaimer: All data and information provided are for informational purposes only. All information is provided on an as-is basis. All users are strongly encouraged to seek professional advice before relying on any data and/or information provided.
CaREA
THE ART OF BEING AN AUCTIONEER By Aisyah Suwardi aisyahs@thestar.com.my
L
ike any other profession in the world, being an auctioneer calls for a deep knowledge of the industry. “Essentially, an auctioneer is a seller,” said Henry Butcher Malaysia associate director (valuation) Low Khee Wah. “In an auction, you can sell anything from property to machinery and furniture to artwork. Even cattle are auctioned in some countries. “For auction property in Malaysia, we normally deal with foreclosure or distress sale,” he said. Being a seller for foreclosure property, Low explained that the objective is to give the best value to customers who in this case are the borrowers. “So if you attend an auction event, you would see the auctioneer hype up the bidders and encourage them to buy the property. “However, it is also our job to smooth over the tense situation that may arise during the auction because we don’t want people to regret buying later.” This is where his expertise as a reg-
istered valuer and real estate agent is brought to bear. Low said: “As a valuer, I can estimate the property price. Sometimes if there is a huge gap between the auction price and its market value, I will try to stir up excitement so that the property can be sold at a better price. “In doing so, the sale will help the borrowers settle their debts.” You have to be certified to be a licensed auctioneer in Malaysia. “Because the licence is granted by the state, you need to apply for a different licence to practise in different states. “The required basic qualification is SPM with a credit in Bahasa Malaysia. Then you have to send in a completed form before being called for an interview,” said Low, who is licensed in Selangor and FT. Henry Butcher has two divisions, for art and asset auctions.
“You’ll be surprised at how many people turn up at our art auctions. The success rate for an art auction is about 90%; if 100 art pieces are put up, 90 gets sold,” said Low. Those interested in becoming an auctioneer should include this skill as part of their portfolio. “Of course you can opt to become just an auctioneer. But from experience, having a detailed knowledge of the industry will help you become a better auctioneer,” Low added.
"it is also our job to smooth over the tense situation that may arise during the auction because we don’t want people to regret buying later. – Low Khee Wah
For more stories on CaREA, scan this link or log on to bit.ly/2OuCGc4
04
STARPROPERTY.MY STARPROPERTY.MY WEDNESDAY 01 AUGUST 2018
By Hakim Hassan hakim@thestar.com.my
cover story
IT’S QUALITY FIRST FOR SKYWORLD
Developer underscores its commitment from construction to handing over
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KYWORLD goes to great lengths to ensure that customers are satisfied with their purchases once the keys are handed over. To emphasise its commitment to produce top-grade homes for the masses, the developer launched a quality centre earlier this year that focuses on the Qlassic and Conquas construction standards. “At SkyWorld, we believe that quality is a fundamental right of every homeowner and it is our responsibility to build quality homes for our customers. “It is something very close to our hearts, and why we invested RM3.8mil in the SkyWorld Quality Centre,” said chief operating officer Lee Chee Seng. The 7,500 sq ft centre represents SkyWorld’s quality benchmark and offers training and education. It serves as a sharing hub for company staff, consultants, civil engineers, electrical and mechanical engineers, university students, as well as prospective home buyers who want to know more about the quality of construction in Malaysia. Lee said the response from the public has been encouraging ever since the centre opened its doors. “We have received more than 800 registrations since our awareness campaign began in December last year. Among those who have visited us are students, homeowners, the media and industry peers. “In fact, many property developers have participated in the SkyWorld tour and most of them praised us for taking the lead to showcase quality workmanship,” said Lee.
Lee said the tour is an eye-opener for the public because most people are not familiar with the concept of quality workmanship and also unaware of their rights as buyers. “We hope this centre will elevate the standard of construction in the country,” he added.
Choosing the best locations As a city developer, the company concentrates on developments within or nearby the city centre. “Our research shows one winning formula – location, location and location. Hence, we decided to focus our landbank in the KL region and position ourselves as a city developer,” said Lee. “All our sites are strategically located and surrounded by mature townships with an abundance of amenities such as shops, restaurants, hospitals, public transport as well as easy access to major highways.” said Lee. With its three SkyWorld Strengths of value creation, sky living experience and innovation, the company aspires to be the best city developer in Malaysia. Due to the scarcity of land in the city, Lee said the optimal way of using a location is by building vertical homes because it would maximise the property value for the purchaser. “All our landbank is in KL, so we have to build up – to provide sky living experience as you are practically living on top,” said Lee.
Above: The centre has received more than 800 registrations from students, homeowners, the media and industry peers since the awareness campaign began in December last year.
Right: SkyMeridien@Bandar Baru Sentul is one of the latest developments launched by SkyWorld.
COVER STORY 05
STARPROPERTY.MY
STARPROPERTY.MY WEDNESDAY 01 AUGUST 2018
Over five acres of unique and luxurious lifestyle facilities are available at The Valleys Residence.
The Hub@SkySanctuary in Setapak is accessible via three major highways and surrounded by mature townships. Left: The quality centre also serves as an education hub for consultants, purchasers, prospects and industry peers.
Building a quality product
Cornerstone of the brand
To provide a good quality product, the developer has assigned a dedicated team of consultants, staff members, contractors and even site workers to ensure that quality standards are adhered to. Lee said, “From the selection of contractors to the execution of building works, we have a series of standard operating procedures, inspection test plans and training to make sure that all concerned conform to standards. “The Qlassic assessment from our internal audit team ensures that the end product is always of a higher quality than the market practice.” He added that the SkyWorld Quality Centre acts as a mock-up unit to show our buyers the standards the company aims for.
“By educating the public on quality assessment, we found that most purchasers are happy with our initiative and commitment. “The quality centre has minimised the problems faced by most purchasers after receiving their keys, including water leakage, unevenness on the wall surface, and hollowness in the tiles,” said Lee. “SkyWorld will always uphold quality as the cornerstone of our brand so that our buyers can enjoy their homes for generations to come. “To do so, SkyWorld will ensure that our projects are within industry standards and Qlassic or Conquas scoring of at least 70% to 80%,” said Lee. Lee said the centre features interiors that demonstrate the evenness of a wall or
floor surface, a mini auditorium that seats 30 people, and a comprehensive show unit consisting of living room, bedroom, yard, balcony, corridor, staircase, kitchen and bathroom. “SkyWorld will “Our centre helps you identify quality shortcom- always uphold ings that you might not be quality as the able to pinpoint visually. cornerstone of “All comparisons are divided into two sections – our brand so that quality finishing that is in our buyers can compliance with Qlassic and enjoy their homes Conquas standards versus for generations to unacceptable workmancome. ship. “Short notes at the side explain the quality require– Lee Chee Seng ments and how you can tell the difference,” he explained. Those interested are required to register online via www.skyworld.my in order to visit the centre.
On track to launch multiple projects Lee said SkyWorld is on track with its progress as the company plans to launch multiple projects by the end of the year. “We have soft-launched three upcoming projects – The Hub, SkyMeridien and SkyAwani3 (Block A & B) – and the response has been very good. “For the SkyMeridien Residence, 150 units were sold within two months while The Hub, our landed shop offices, sold 20 units within four months. The
SkyAwani3 Residence sold 1,200 units within six months while The Valleys Residence received 550 bookings within six months,” he said. The company aims to launch SkyAwani4, which is part of its Rumawip offering to the market, in the third quarter of next year. “We are still in the designing and planning stage. However, we have identified several unique selling points such as Sky Living experience, affordable price, quality
finishes, and built-up size of 800sq ft with three bedrooms and two bathrooms,” said Lee. SkyAwani4 will be fitted with full condominium facilities such as a swimming pool, kids’ pool, gym, multipurpose hall, cantilevered rooftop viewing deck, sunken tree lounge, meditation deck, Kidzania Play, Skybridge and three-tier security. The company plans to acquire more land, and Lee said SkyWorld is looking at a few areas, including
DutaMas, Kepong, Bangsar, Cheras and KL city centre. On the proposal by the authorities to streamline affordable housing agencies, Lee said that although the schemes are priced differently to cater for different target market groups, the company believes the move could aid home buyers, especially first-timers. “It can eliminate the confusion over eligibility requirements,” he said in supporting the government initiative.
06 01 AUGUST 2018
Feature
STARPROPERTY.MY
By Aisyah Suwardi aisyahs@thestar.com.my
UNFAIR STIGMA OF AUCTION PROPERTY Public need not fear this alternative mode of buying and selling
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OR the longest time, properties on auction have been associated with unfair terms like inauspicious, cheap bargains or foreclosures. These stigmas are what deter most people from buying from the auction market. “People sometimes think that auction is a bad word,” said Savills (Malaysia) managing director Datuk Sr Paul Khong. In Malaysia, an auction property is synonymously associated with the owner being in financial distress.But in many other countries, that is not the case and the auction process is merely a common mode of sale. “In fact, they prefer the auction because the bidding process can be exciting and result in the successful bidder securing a better price especially if the property for sale is a good piece,” said Khong. “Case in point, I attended a public auction for an endlot shop-office in Damansara Heights. The reserve price started at RM2.4mil but because the property was in a great location, it was finally sold for just below RM5mil. It seemed like almost everyone in KL turned up to make a bid. “The owner got a good price, but it is not always the case with every auction. As in any sale, it depends on the
product, location and the actual demand for it,” he explained. During an auction, a property will be priced based on its market value, which is called the reserve price (Section 257 (1)(d) of the National Land Code 1965 (NLC). If no bid is offered, the property will not be sold and the next round of auction will be held. Most of the other pertinent procedures of the auction are spelt out in Part 16 of Chapter 3 in the NLC (Sections 253 to 277). “Sometimes these auctions may even be held up to five or six rounds due to the lack of bidders and its reserve price will probably be revised downwards accordingly till the actual buyer comes along,” said Khong. Let’s say you want to sell a RM1.3mil terrace house in Bandar Utama and if you are bothered by the stigma surrounding auctions, you can opt to sell your house through a real estate agent.
Buying through an auction Another stigma associated with an auction is that after winning the bid, you have to pay in full within a short period. “Before you buy any auction property, there are three things buyers should consider,” said Tom Low Chee Hian, business director of Ng Chan Mau & Co Sdn Bhd. “First, they have to decide on the property itself. Do I accept the condition of the property? Do I want to buy it? Second, financing. Do you have the 10% deposit? Will you be able to pay the balance afterwards? Third, prepare yourself to bid during the auction.” Depending on the bank behind the auction, the given period to settle the 90% balance price is usually between 90 and 120 days. However, buyers can request to extend the period by writing to the bank. Approval will be at the bank’s discretion. Said Low: “So far, not many of our buyers have problems paying the balance. Before you buy an auction property, you need to prepare for it by looking into your eligibility for a loan, whether your CCRIS is looking good, among others. “It will ease the process of getting your auction property,” he added. Applying for a loan for the auction property is no different from other home loans. “After winining the bid, you will sign a contract that is considered the sale and purchase agreement (SPA). Then you can go to the bank to apply for a home loan without having to consult a lawyer for the usual SPA,” explained Low.
Enter the fairer online auction
Telephone bidders talking to their clients to bid on the clients' behalf for their desired property.
Ng Chan Mau became the first company to offer online bidding when it launched its first hybrid auction last December. “We were inspired by the High Court e-lelong, and adjusted it to suit our customers’ needs,” said Low. “We still have bidders who prefer the conventional way where they go to the auction hall to register and pay the 10% deposit for the paddle to bid. “We came up with a hybrid auction because of the young or tech-savvy bidders who prefer to do things online. They can join the same auction event through online bidding. “Go to our website and check the process yourself.
We even have a mock bid that shows you how the whole online auction process,” he said. Low reckons the process is more transparent with online bidding. “By digitising the process, the auction becomes fairer to all participants. During a hybrid auction, we set a specific time for the three calls for auction. Both the on-site and online bidder will have an equal chance to make a bid at the same time. “If you have been to a conventional auction, you will know that some manipulation might occur between bidders and auctioneers. Let’s say you are my friend and I, as the auctioneer, wanted to help you. I might
01 AUGUST 2018
07
Feature
Fun facts about an auction • A hammer will only be used for foreclosure auctions. A private auction need not use the hammer. For more stories on auction property, scan the link here or log on to StarProperty.my website bit.ly/2JVAozp
• The first Auction Act can be traced back to 1929 – some 29 years before Malaysia’s independence! • Some companies offer the option of credit payment for the 10% down payment.
For Auction
• An informal #TGIF poll by StarProperty.my Facebook found that 59% of respondents do not mind buying an auction property.
Interested buyers are looking through the auction properties selection.
Changing the public view While it is true that the auction is another mode of selling, the stigma surrounding auction properties is all too real. “A foreclosure property is not necessarily a bad thing. It just means that the owner can no longer service the loan. It can happen to anyone; the property was bought as an investment but did not bring profit, and ended up being auctioned,” said Low. “The good thing is buyers have a variety of options to shop for their property besides the usual new development or sub-sale property. And these properties may be sold below market value,” he pointed out. An auction has its pros and cons. “Society needs to change its view about auction properties. Before shopping for property, do thorough research to better prepare yourself. The same goes for auction property,” Low added.
A foreclosure property is not necessarily a bad thing. It just means that the owner can no longer service the loan. It can happen to anyone.
Paul Khong
elongate the call to help you win the bid,” he added. Online auction is slowly being accepted by the masses. Low said that nowadays, bidders comprise roughly 50% online and 50% on-site. “We introduced online bidding not because we wanted to follow the trend but because we wanted to improve people’s lives by making it more convenient,” he added. Of the company’s existing registered online bidders, Low said they range in age from people in their 20s to a 68-year-old guy from Sabah. “Another good thing with online auction is that you can bid for properties nationwide from the comfort of your home.”
Tom Low Chee Hian
08 01 AUGUST 2018
Feature
STARPROPERTY.MY
By Viktor Chong viktorchong@thestar.com.my
PROPERTY INVESTORS bullish on JOHOR
Market sentiment bodes well for state that’s tagged as the next Klang Valley Number of transactions by price range for property sectors in Johor
Source: ISKANDAR MALAYSIA
D
ESPITE a slowdown in the property market, property transactions in Johor increased by 11.56% -- second only to Selangor for having the highest number of transactions. According to the National Property Information Centre (Napic), the overall volume of residential property transactions has dropped by 7% from Q1 2017 to Q1 2018. In Johor, residential properties below the RM500,000 mark dominated the sector with an increase of 616 units (13.21%) transacted. Encouragingly, residential units valued at RM1,000,001 and above also enjoyed a boost of 45 units (31.91%) when comparing Q1 2017 and Q1 2018. All property sectors in Johor projected positive take-up rates with the exemption of industrial developments, which declined by 13.1%. At the Malaysian Institute of Estate Agents (MIEA) Property Market Sentiment report launched earlier this year, Johor chairman Liew Toh Sen expressed optimism when he said the property market will pick up from 2018 onwards because it is supported by domestic demand. He added that units ranging from RM400,000 to RM700,000 will be popular.
Iskandar Malaysia: Without a doubt, Iskandar Malaysia -- which spans 2,217sq km (three times the size of Singapore) -- is the most happening place in Johor, with major developers having a stake in the area. Among Iskandar Malaysia’s most prominent feature is its direct access to Singapore, with over 50,000 people commuting daily from Johor Baru for work and educational purposes in the city-state. Iskandar Malaysia and Singapore are collectively inhabited by over six million people, with four maritime ports, two airports and various overland links between them. Located at the crossroads of the important East-West trade routes, Iskandar Malaysia is situated in the middle of the region’s two economic powerhouses, China and India, and it can be easily accessed by air, land and sea.
Funding from the government
Over 50,000 students are enrolled at higher learning centres in Johor, with the inception of Educity adding 16,000 more.
Price
Quarter
Residential
Commercial
Industrial
Other
Total
<RM500,000
Q1 2017
4,664
394
36
2,080
7,174
Q1 2018
5,280
439
28
2,288
8,035
RM500,001-RM1,000,000
Q1 2017
884
180
28
238
1,330
Q1 2018
901
198
40
341
1,480
RM1,000,001 & Above
Q1 2017
141
121
104
145
511
120
78
159
543
695
168
2,463
9,015
757
146
2,788
10,058
Q1 2018 186 Under the Ninth Malaysia Plan (2006Total Q1 2017 5,689 2010), the federal government allocated RM6.83bil for projects to be undertaken in Q12018 6,367 Iskandar Malaysia. Seven projects worth Source: NAPIC RM1.45bil were road packages with another seven being drainage projects worth RM76.52mil. Four other projects worth RM89.60mil were for river cleanbachelor degree-holders yearly. Over ing. The river-cleaning effort alone costs 50,000 students are enrolled at higher RM103.6mil, while RM144.9mil was spent learning centres in Johor, with the incepon 11 urban drainage projects. tion of Educity adding 16,000 more. Substantial attention was given to the The development growth of industrial relocation of squatters -- a total of 3,652 zones in Flagship C and D augurs well for families (2,932 in Sungai Tebrau and 720 future job opportunities. The second link in Sungai Skudai) were moved to better bridge gives Johor residents access to the areas that offered improved living standSingapore job market while enjoying the ards. The relocation has the added benefit Malaysian standard of living. of reducing socio-economic problems and Over a 20-year period until 2025, the lowering the degree of water pollution, region is expected to record gross domeswith proper drainage and solid waste distic product growth of 8% per annum, reposal systems. sulting in nominal GDP of USD93.3bil in About RM203mil had been spent on 2025 and GDP per capita of USD31,100. the Sungai Tebrau squatter relocation A total of 1.43 million jobs will be created effort, while RM205.7mil went to the Scan for more info for a population that is expected to reach construction of affordable rental housing three million in 2025. for the lower-income group under the Rumah Iskandar Key economic activities of flagship zones in Johor Malaysia initiative. A sum of RM11.4mil was Flagship Key economic activities invested in the creation of 26 A: Johor Baru City Financial services, commerce and retail, arts Bas Iskandar Malaysia routes and culture, hospitality, urban tourism, plastic as well as the installation or manufacturing, electrical and electronics (E&E), and refurbishment of supporting food processing. infrastructure such as bus stops and bus poles. B: Iskandar Puteri Mixed property development, government
A ready workforce Drawing from a local population of two million, the talent pool is young, skilled and well-educated. The majority of the workforce has industry experience (finance, oil and gas, manufacturing and logistics) and are bilingual (Bahasa Malaysia and English). According to the 10-year report by Iskandar Malaysia, Johor produces over 17,000
administration and logistics. Hub for creative arts and entertainment, medical facilities, educational institutions, tourism, biotechnology and hi-tech manufacturing.
C: Western Gate Development
Port and marine services, warehousing, logistics, engineering, hi-tech manufacturing, food production, petrochemical industry, entrepot trade, power generation.
D: Eastern Gate Development
E&E, chemical, oleochemical, food and engineeringbased industries, ports, logistics and warehousing. It also has the largest concentration of palm oil refining industries and downstream activities in the world.
E: Senai-Skudai
Airport services, engineering, electrical and electronics, and education. Hub for agro and food processing, ICT and retail tourism.
Investors keen on Iskandar From 2016 to June 2017, Iskandar Malaysia secured a total cumulative committed investment of RM237.36bil of which RM130.55bil (55%) has been realised on the ground. Property and manufacturing sectors remain the main contributors of this committed investment. The top foreign investment was from China totalling RM26.51bil, followed by Singapore (RM20.87bil) and US (RM6.79bil). China’s investments in Iskandar Malaysia are mainly in the property development sector which saw the inception of listed Chinese development companies such as Country Garden, Greenland and R&F Properties undertaking massive waterfront development projects. Due to its proximity to Singapore, Iskandar Malaysia is the most successful of the five economic corridors in Malaysia. It has targeted to reach a total investment value of RM383bil by 2025. With Johor slowly becoming the next Klang Valley, StarProperty.my Awards: Jewels of Johor is here to pay homage to real estate developers that have contributed to the industry’s growth. Back for the second time this year, the awards aim to create a greater awareness of the property landscape in Johor. It is also designed to enhance the brand value of the state’s players by highlighting their outstanding projects. Last year’s gems included EcoWorld Development Bhd, Gamuda Land, Country Garden Danga Bay Sdn Bhd, Ipark Development Sdn Bhd and UMLand Bhd. Visit bit.ly/JohorJewels2018 for more details.
Wednesday 1 August 2018
Starproperty.my
9
10 01 AUGUST 2018
Feature
STARPROPERTY.MY
By Ng Pau Ling pauline@thestar.com.my
T
HE digital age has influenced businesses across all sectors to operate in a high-tech environment that’s efficient, productive and convenient. Using mobile devices and cloud computing, the ability to instantly access information is key for an organisation to remain competitive. In the construction industry, sharing information among all players will lead to higher efficiency and transparency. This can be achieved through the Building Information Modelling (BIM) technology, which helps Architect, Engineer and Construction (AEC) industry to work together in the cloud. The intelligent 3D information modelling system centralises all stakeholders – architect, designer, engineer, planner, surveyor, contractor and the owner – in one common base to share details of every component in a building. Every project participant has access to the system for instant updates. By integrating different aspects of the building, it shifts the conventional point-topoint communication to an integral level. The information models include the physical characteristics, materials, costing, coding, tagging, graphics, specifications, design and construction of the building. By enabling efficient monitoring and managing of information, BIM reduces the risk of construction mistakes and conflicts as well as minimising abortive costs.
WORKING TOGETHER IN THE CLOUD
challenge: “Industry graduates generally possess basic knowledge to operate the system, and we have sufficient BIM modellers in the local market. “However, there is a shortage of BIM managers even though CIDB has provided training for the profession.”
Implementing BIM in public projects
Virtual builder integrates project information for all stakeholders to share and monitor
Ezumi Harzani Ismail
Promoting the system In Malaysia, the promotion of BIM began in 2012 with initiatives to assist construction industry players to adopt the system. The Construction Industry Development Board (CIDB) defined BIM as a modelling technology and associated set of processes to produce, communicate and analyse digital information models throughout the construction project life cycle. The system has been outlined in CIDB’s Construction Industry Transformation Programme 2016-2020 as an emerging technology that will improve productivity. However, the BIM adoption rate in Malaysia has been relatively low at 17%, compared to developed economies such as United States (71%) and United Kingdom (54%), according to CIDB’s BIM Report 2016. A survey conducted by CIDB showed that BIM in Malaysia is mainly used among professionals at the design stage. Architects are the leading adopters of BIM at 42%, followed by civil engineers (21%), contractors (13%) and quantity surveyors (12%). To further encourage the adoption of BIM, CIDB launched the country’s first onestop “myBIM Centre” in 2017. It acts as a resource hub for industry practitioners to model and visualise building projects in a simulated environment. Facilities equipped with the latest BIM technology are provided on a shared and pay-per-use basis. These include a BIM lab, studio, seminar area and showcase hall. Also available are module training programmes in three areas, namely modelling, coordinating and managing. The programmes cover the introduction of the BIM concept, set-up and coordination of the system, to training for professional BIM managers. Apart from the hardware, CIDB has
Rofizlan Ahmad
established an online storage known as myBIM Library for 3D BIM components that can be accessed by registered users.
Challenges of the new work form It’s fairly clear that the future of the construction industry is digital and none of the industry professions can bypass the use of technology. “In three to four years, everyone in the construction industry will use BIM. It will eventually become part of the construction process, just like AutoCAD,” said Malaysian Institute of Architects (PAM) president Ezumi Harzani Ismail at the opening of the BIM Summit 2018 organised by the institute. Although the awareness and acceptance of BIM in the local market has improved, the industry still faces technical and people challenges to achieve full integration. One major challenge is poor infrastructure and connectivity especially at the construction site. “BIM supposedly keeps track of the construction progress from input provided by the site staff. However, we face internet connection problems on-site,” said Ezumi, in reference to BIM requiring high-speed broadband to run its programmes and for data transfer. He added that not all project participants have the skills to operate BIM. Some industry players still use conven-
tional methods but engage a third party to handle BIM for the sake of the tender. “This goes against the intention of implementing BIM. Tenderers should be assessed to ensure they have BIM knowledge; it’s a way to encourage people to shift to the next level,” said Ezumi. CIDB eConstruct chief executive officer Rofizlan Ahmad highlighted another
From the government’s point of view, the main agenda of using BIM is to increase productivity and eliminate variables. In the conventional construction practice, it is difficult to detect conflicts and clashes. Problems will only reveal themselves at the construction stage, such as clashes between M&E, piping and beam, which eventually results in additional costs. “In some cases, the construction cost overshoots the estimation due to variations. This could have been eliminated by implementing BIM,” said Rofizlan. “The system can drill down to design specifications and detect any mistakes or errors before construction starts.” The government is planning to mandate the implementation of BIM in public construction projects worth over RM100mil. Ezumi pointed out that the biggest challenge in public procurement at the moment is insufficient time for project participants to develop models with full specifications. “Contractors and tenderers rush to submit the models and start the actual construction immediately. “I have come across structures on-site being built faster than the BIM models. To implement BIM correctly, the project owner should give ample time to input data from different specialists,” he said. Ezumi suggests that the first year of a three-year contract should be spent on developing models with full specifications, including input from the civil engineer, quantity surveyor, M&E engineering, and supplier. “About 60% of construction delay is caused by the waiting period. It might take weeks for material shipping or adjustments from the consultant,” said Rofizlan. “In the future, more time will be spent at the design stage and less time on actual construction.”
Why do we need BIM? BIM is commonly used on complex construction projects such as high-rise buildings and largescale infrastructure including a stadium or metro system. Objectives to achieve include site analysis, visualisation, design model, spatial requirement analysis, coordinated documentation, construction simulation, clash detection, cost estimation, and as-built model.
Architect: BIM offers seamless collaboration with other parties of a building project, and effective reviews of design. It also provides intelligent simulation tools to visualise design details such as sunlight in different seasons.
dimensions to ensure that everyone stays informed and up to date with the progress of the project.
Engineer: The “virtual construction” ensures a perfect fit for building components, while the automated clash detection feature helps to discover conflicts and mistakes at design stage to reduce on-site clash.
Contractor: An information resource for the on-site project team. They access to the model for task assignment, and input data to update the project progression.
Planner and consultant: BIM fosters
Owner and facility manager: The high transparency
better transparency on time, budget and schedule management. The integrated system centralises building works in all
among all parties improves the managing, operations and progress of the project. It also allows for real-time data transfer, diagnosing and efficient problem-solving.
STARPROPERTY.MY
01 AUGUST 2018
By Hakim Hassan hakim@thestar.com.my
11
Interview
COMMERCIAL UNITS TO THE FORE
Sales and Service Tax will likely boost investor demand for factories and shoplots
D
ESPITE the government having announced that the Sales and Service Tax (SST) will replace the Goods and Services Tax (GST) in September, investors could look forward to opportunities in the property market. Total Realty head of marketing Dr Kho Chng Guan said that although the full extent of the new taxation may not be felt as yet, an unexpected segment of the property market could be enticing to investors. That segment covers commercial properties. “Previously, there was no GST when buying residential properties but professional services such as assigning a lawyer would incur GST. “Come September, SST will likely be charged even for residential properties. “The market for commercial properties such as shoplots and factories had been stagnant over the past few years because investors had to pay an extra 6%. For example, if you bought a RM2mil shoplot, you would have paid RM120,000 more. “We can see why commercial properties were not selling well then. In the
near future, I foresee a rise in demand for factories and shoplots,” he said. Dr Kho believes that with the implementation of SST, businesses will get a new lease of life because the new tax should spur growth for enterprises. “With SST in place, more people would want to do business because of cost reductions. I also foresee an in-
Get posh S and glam at Sunway Velocity Fourth from left: Sunway Malls COO Kevin Tan, Sunway Malls and Theme Parks CEO H.C. Chan, and Sunway Velocity Mall senior general manager K.S. Wong at the launch.
creased demand for rent and sales.” On the government’s decision to slash mega projects such as the high-speed rail (HSR), Kho said there are other avenues in the market that would still be suitable for investment. “If you are keen to invest in property, you should be looking at places that are mature because new infrastructure
UNWAY Velocity Mall recently launched its first fashion-and-beauty campaign called Posh & Glam, which brought to the fore the mall’s fashion, beauty, eyewear, timepiece and sports outlets. The campaign ran from June 29 to July 29, featuring redemptions, contests and activities for fashionistas. Together with a media event on July 19 at the Vanity Atrium with leading beauty bloggers and social media influencers — such as Tasnim Shah, Chanwon, Ezlisa Loy, Syada Amzah, Tziaaa, and Karen Kho — as well as guests from partnering outlets, the main campaign highlight was Sunway Velocity Mall’s first, two-week long Fashion Parade, which showcased the latest apparel and products from the mall’s various fashion brands. During the launch, fashion bloggers were treated to pampering sessions, free professional photo-shoots, makeup demos and a fashion show featuring Lancaster, Superdry, ELLE, Marks & Spencer, Miss Selfridge and Burton Menswear. “With fashion, beauty, sports, eyewear and
projects such as the MRT and LRT create opportunities. “Consider those completed units that are located near to amenities such as public transportation; there’s lots more to invest in,” he said. Asked which areas would be best for investment, Kho said that both secondary and primary properties have their pros and cons that buyers need to consider. With experience in the sub-sale market, he said there are advantages that make secondary properties an attractive proposition but it depends on the buyer’s preferences. “A sub-sale property has its advantages -- you can view it, everything is set in stone, it has already matured or is maturing. “The problem is that you need to come up with a 10% down payment, legal fees, and perhaps renovation costs. With plenty of completed units available in the market, developers are offering incentive packages that include rebates, absorption of legal fees, and help with loan application. This is good for the buyer who will be able to save on costs,” he added.
Guests were treated to free pampering sessions at beauty stations.
timepiece outlets making up 40% of Sunway Velocity’s total occupancy, I am proud that our team has been able to bring this fashion fast-forward campaign to life in such a grand and majestic manner,” Sunway Velocity Mall senior general manager K.S. Wong said in his address. “It is my sincere hope that our loyal shoppers and new patrons find Posh & Glam to be wholesome and rewarding, with something for everyone.” Eye makeup was generously applied by SASA with Etude House providing a lip and cheek touch-up and Une Olive offering hand-scrubbing services. After the launch ceremony, guests were treated to a 30-minute fashion show by famous names in the industry who showcased the trendiest apparel, accessories, timepieces and sportswear. Since its inception, Sunway Velocity has tripled the amount of its alluring fashion and beauty brands to more than 150 outlets, propelling the mall to become KL’s next fashion and beauty hub. The mall houses international brands including Burton Menswear, Laneige, Miss Selfridge, H&M, Lacoste, Charles & Keith, Pedro, Sacoor Brothers, M.A.C, Victoria’s Secret, Innisfree, Aldo, Superdry, and SPAO. Outfits for trendsetters and impressionable individuals who wish to express
Kho believes that despite the soft market, commercial properties will see an increase in demand in the near future.
Scan here or log on to bit.ly/interviewSST for the full interview.
their unique identities are available at Marks & Spencer’s Boutique Concept Store and the flagship outlet for HLA Jeans in Malaysia, scheduled to open in mid-August. Sunway Velocity also ran a Facebook contest with free hair makeovers courtesy of A-Saloon, and Sunway Malls chief operating officer Kevin Tan presented the prizes to the Top 3 winners after the fashion show. Each winner took home a set of beauty gifts worth RM1,000 sponsored by VOIR, Etude House, Claire Organics, AsterSpring and Beaumedic. Other glamorous happenings over the campaign period include a line-up of beauty workshops, fashion-related activities from blogger sharing sessions to professional make-up workshops, and photo-booths on weekends. Fashion enthusiasts were also treated to exciting redemptions such as the chic Flamingo Pouch with a minimum spending of RM250 on two receipts at selected beauty, fashion, eyewear, and sports outlets. Shoppers and mall-goers were invited to take photos of themselves at the OOTD Backdrop and post on Facebook. Winners walked away with prizes totalling RM10,000 sponsored by SPAO, Clarins, Shins, Une Olive, Xixili, Burton Menswear, Miss Selfridge, Carlo Rino and more. Not forgetting the little ones, a ‘Little Fashionistas’ contest was held on July 28. The young talents turned up in style and took to the runway like professionals. The winners were all smiles when they received their rewards from Parkson, KidzB and KokoBlock. Shoppers and fashion fanatics got up close and personal with the mall’s household fashion brands that exhibited their latest offerings and deals at the Vanity Atrium. For information on upcoming campaigns, visit www.sunwayvelocitymall.com or Sunway Velocity Mall on Facebook.
12 01 AUGUST 2018
Feature
STARPROPERTY.MY
By Tharmini Kenas tharmini@thestar.com.my
MELTING POT OF ARCHITECTURE Commercial and residential buildings attest to development since Merdeka
P
ENANG and Malacca’s inclusion in the list of Unesco World Heritage Sites brought great honour to the country. With Portuguese and Dutch influence in Malacca and the representation of the British era in Penang, the two heritage sites highlight the rich and unique architectural scene in Malaysia. Being a melting pot of culture in the region, Malaysia has intrinsically unique architecture. From Kuala Lumpur, Penang and Malacca to Ipoh, Kelantan and Sabah, the buildings have played a crucial part in nation building since Merdeka. The effects of colonisation are still intricately embedded in the lives of Malaysians. After independence, our own cultural blend began to take precedence over colonial architecture. “In 1963, the Yang di-Pertuan Agong called for the construction of almost 10 buildings and institutions that are critical for the strengthening of nationhood. This was a significant moment because it indicated the role architecture plays in shaping a nation,” said architect Ang Chee Cheong. As co-writer of The Merdeka Interviews book (with architectural historian Dr Lai Chee Kien), Ang put together 17 interviews with architects, engineers and
6
artists who helped erect key buildings in Malaysia after independence. The need to create a national identity and a functioning nation spurred the architectural styles, which was followed by the urge to stand tall among other developing countries in the region. According to Ang, architecture plays a big part in the economy of any country and quite large in Malaysia. It affects over 200 industries, trades and services, and is a significant component of the domestic economic production. It is worthwhile noting that the price of heritage houses in Penang and Malacca has been steadily increasing. A three-storey pre-war building at the Heritage Zone in George Town, Penang, costs RM3,650,000 (RM869.05 per sq ft) while a three-storey superlink house in Mont Kiara, Kuala Lumpur, costs RM1,900,000 (RM467.06 per sq ft)*. “Perhaps a more important role for architecture is the representation of a nation’s ideas and ambitions, its identity and its quality,” said Ang. Asked about the local architecture scene, he said: “We need to change the way architecture is conducted in this country, in how architects are selected and how major buildings are commissioned. The way this is being done is often vague, often cloaked in secrecy and
common building styles
often with barriers, even with the various government agencies and GLCs. “In our research on Merdeka-era buildings, we see that the architects for major projects were often selected by open design competitions, with the submissions published and exhibited. In most countries with vibrant architectural cultures, we see that such competitions decide projects. “In light of the openness of our new government, perhaps this is an opportune time to make a real systemic change to our architecture and cities,” Ang suggested.
the Indian Kingdoms (from 7th to 14th Century), Malay Vernacular (early 15th Century to present), Straits Eclectic (15th Century to mid-20th Century), Chinese Baroque (19th Century to early 20th Century), Indian Vernacular (15th Century to mid-20th Century), Colonial (17th Century to mid-20th Century), and Modern (1950s-1980s). These variations in influence have resulted in the expression of assimilated architecture in local buildings.
Classification by periods
*Source: Propwall.my
According to the Heritage of Malaysia Trust, the styles of buildings are the basis of architectural classification. The influence of various architecture from other parts of the world has been successfully incorporated and modified by Malaysian culture and environment. Some of the architectural influences that differ according to time periods include
Despite being a convergent point for many architectural styles, some common ones can be easily found across Malaysia. The assimilation of foreign cultures with Malaysia’s own diverse cultures has resulted in unique architectural styles in the country. Some of these styles played prominent roles during British rule while others have been the backbone of the country from independence till now.
Mughal Being the blend of Indian, Persian, Turkish and Islamic architecture, Mughal architecture became common in Malaysia around the 20th Century. Some of the Mughal buildings in Malaysia are the Sultan Abdul Samad building, Malayan Railway Administration building, and the Kuala Lumpur National History Museum.
Dravidian The Dravidian architecture is well-manifested in the hundreds of temples across Malaysia. Emerging in South India, the Dravidian architecture heavily influences the structure of Hindu temples with the prominent feature being the high gopuram or gatehouse that rises well above the rest of the temple building complex.
Straits Eclectic
Tudor
The Straits Eclectic architecture is uniquely Malaysian and can be mostly found in the heritage shophouses in Malacca and Penang. British, French and Chinese architectures inspired the style, and these heritage buildings are being converted into business premises. Catching the attention of small and medium industries as well as international franchises, these buildings have contributed significantly to the economic development of Penang and Malacca.
As a result of British rule from the 1800s to 1957, its influence is still prominent in many aspects of Malaysian life. In building architecture, the British influence is manifested through the Tudor style. With time, it has been modified and adapted to the climate in Malaysia -- signifying the progress that Malaysia has undergone after the departure of the Brits. An example of Tudor architecture in Malaysia is The Royal Selangor Club in Kuala Lumpur.
Chinese
Post-modern
Instead of just being confined to Chinatown as in most parts of the world, Chinese-based architectural buildings can be found scattered all over Malaysia. The infusion of Chinese architectural elements in Malaysian buildings speaks loudly of the influence of the Chinese community in the making of Malaysia.
Despite being surrounded by many other modern architectural buildings, the Petronas Twin Tower’s tube-in-tube design continues to gleam the brightest in the Kuala Lumpur skyline. The structure attests to Malaysia’s development since Merdeka.
Architect Ang Chee Cheong
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