02 JANUARY 2019 WEDNESDAY
Respondents of the latest StarProperty.my Buyers' Sentiment Survey consider pricing first and security second as top deciding factors. See story on pages 4 & 5.
INSIDE THIS ISSUE
FINDING THE JEWEL IN YOUR WEALTH
Buying on value and the ability to hang on is the jewel in the crown > P02
www.starproperty.my www.propwall.my www.ibilik.my
StarProperty.my
GREEN AND NOVEL IDEAS
MLAA to benchmark local landscape architecture for global community > P03 StarProperty
StarPropertyTV
RIGHT PRODUCT, RIGHT PRICE
Sunway Property's launches do well in a challenging market > P08 StarProperty.my (Eng) Property Trends (Chi)
E vent highlights
STARPROPERTY.MY
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findING THE JEWEL IN YOUR WEALTH www.starproperty.my www.propwall.my www.ibilik.my StarProperty.my StarProperty StarPropertyTV
Assistant General Manager ERNEST TOWLE ernest@thestar.com.my
Editorial Contributing Editor DAVID YEOH Acting Head of Content tharmini kenas ltharmini@thestar.com.my
E
possible contingencies over the seasons ahead. VERY new year brings an opportunity for a new Despite the shifting present and unknown future, beginning. Reflecting on the experiences and By one’s goal of financial independence and wealth crealessons from the previous year allows you to Ernest Towle tion remains. The only thing that changes is the game plan better for the coming year and get closer plan to preserve and grow your wealth. to your goal(s). In this game plan, there will be times to take risks and From local and international politics to economics, times to ride the situation until clarity is apparent. During such 2018 was a year of many firsts. With so many permutations times, cash is king and cash flow is imperative for survival and as to where the world will be heading, the situation is fluid to say the growth. least. Should you then abandon all forms of planning and refrain Although the signs may point towards a buyer’s market, bear in from taking any action? mind that not all that glitters is gold and not all gold can be acquired Like the farmer who works tirelessly throughout the changing because the inability to hang on to the “gold” may cause more damseasons toward the harvest, wealth-building is never about shortage than good. term gains. During winter, machines get repaired and the field preBuying on value and the ability to hang on is the jewel in the pared for the planting season. crown. And the more precious the jewel, the better the long-term All efforts aimed at the farm’s intended goal have to be cusreturns. tomised to accommodate the changes in the environment. Lessons Here’s wishing you a happy and prosperous 2019! learnt from the previous harvest are incorporated to provide for all
StarProperty.my Event Highlights
Content HAKIM HASSAN NG PAU LING VIKTOR CHONG AISYAH SUWARDI 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 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 Awards 2019: Calling for entries The prestigious annual StarProperty.my Awards 2019 will be held in March. The event aims to honour property developers who have worked tirelessly to contribute to the nation’s development. To register for the 2019 awards, go to http://bit.ly/2OtQ132
GOLDEN TRIANGLE
Ask Me Anything: Clear your doubts on issues
Watch out for the uber-cool Best@ Golden Triangle StarProperty.my’s Best@ series highlights the beauty of Kuala Lumpur: Alive, vibrant and colourful. More than just a buying guide for potential buyers, the publication sheds light on the faces and places that make the capital truly special. Featuring Central KL where the proposed golden triangle will nestle in, this issue scratches the surface of a mature capital city to uncover what makes the nation’s capital tick. These are the stories of Kuala Lumpur and its people.
Ask Me Anything is a platform for all readers to ask about all things property. If you have any enquiries, key in your questions at bit.ly/AskMeAnythingProperty . Property experts will share their knowledge with you.
Latest happenings Gamuda’s 50-acre Discovery Park opening soon Gamuda Land signed a memorandum of understanding with six key partners -- namely Aerophile, AKA Balloon, Blastacars, Invade, Kitchen Mafia and Caravan Serai – when unveiling the first few elements of its entertainment hub Discovery Park@Gamuda Cove. The park is divided into three recreational zones. Adventure Park, Hangout Village and Sports Park offer visitors leisure, shopping, wellness and entertainment experiences. Gamuda Land chief operating officer Gan Chee Meng said the company is confident that Discovery Park will become a key tourism destination in Southern Klang Valley for both local and international visitors when it opens its doors in 2019.
Sime Darby Property offers Ara Damansara units Cantara Residence in Ara Damansara is the latest offering from Sime Darby Property. The
freehold integrated development is priced from RM542,600 each with built-up sizes of 646sf to 1,184sf. The recently-launched project comprises 888 serviced apartments and 13 commercial units with an iconic link bridge connecting its four residential towers. It is expected to be completed by 2020.
IOI Properties launches green-practice campaign IOI Properties Group Bhd recently launched the IOI-Active Citizens: WasteTo-Treasure campaign, a collaboration with British Council on its Active Citizens Programme in Puchong. The campaign aims to inculcate the habit of reducing, reusing and recycling in the community to minimise waste generation, said IOI Properties Group chief operating officer (Property Development) Teh Chin Guan. “IOI Properties Group prioritises the development of sustainable townships to deliver a positive impact on the local economy, the surrounding environment and the society in which it operates,” he added.
Forum on state of the property market in 2019 StarProperty.my organised a forum inviting
a panel of experts from various sectors in the industry to dispel myths surrounding the property market and reveal the trajectory for 2019. The day’s events closed with a panel discussion moderated by StarProperty.my assistant general manager Ernest Towle and attended by UMLand Group chief executive officer Datuk Charlie Chia, Asian Land Realty Sdn Bhd director Warrick Singh, Eaglenest Realty principal Ong Poh See, and Ho Chin Soon Research Sdn Bhd founder and chairman Ho Chin Soon.
Instant eligibility check for fast loan approval IQI Global has formalised a deal with Finology Sdn Bhd to use its instant loan eligibility check system for property buyers via their product Loanplus. With Loanplus, buyers can find out detailed information about their loan eligibility in 10 minutes as well as best-matched property loan with 17 financial institutions.
STARPROPERTY.MY
S pecial feature
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SEEKING OUT GREEN AND NOVEL IDEAS
MLAA to benchmark local landscape architecture for global community
Malaysian Landscape Architect Awards 2019 Categories
By Viktor Chong viktorchong@thestar.com.my
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HE Malaysian Landscape Architect Awards (MLAA) will return this year to feature some of the greenest and most sustainable ideas in the industry. Celebrating 11 years of excellence in landscape architecture, the 2019 awards will recognise outstanding consultancy firms, NGOs, foundations, media, individuals, developers and researchers in Malaysia and overseas. The MLAA is among the activities held in conjunction with the World Landscape Architecture Month celebrations. According to the Institute of Landscape Architects Malaysia (ILAM) president Assoc Prof Dr Suhardi Maulan, the awards will bring to the fore those projects that support sustainable development and the new urban agenda. This year’s awards will include a new category that involves corporate social responsibility. “This category recognises work done by NGOs, corporate sectors and consultants in using landscape for CSR purposes,” said Dr Suhardi, adding that ILAM encourages more voluntarism in society. The work can be in the form of space, a place-making exercise or simply tree-planting. Dr Suhardi said the judging system this year will incorporate visits to participating project sites for the judges to have a more holistic view. The awards will endorse highquality landscape work and the inclusion of novel ideas from participants. “We are searching for local projects that can be a reference point for landscape architects around the world,” said Dr Suhardi. Citing the New York Central Park as an example, he said that landscape architects have been using the park design as a benchmark for their projects. Likewise, he is challenging landscape consultants to bring in new ideas. Dr Suhardi believes that such a lofty goal may not be achievable without the support of developers and government agencies. He highlights the development of Putrajaya which utilised a massive wetland system to cleanse the water supply before channelling it into the lake. “In the United States at that time, only small developments were implementing the wetlands system,” said Dr Suhardi, adding that few people believed Malaysia was capable of
achieving such a feat. ILAM is looking forward to seeing the new government play a more robust role in cultivating landscape policies. “We have 70% or 80% of our population living in urbanised areas; this is an issue that the government will have to tackle. “As a rule of thumb, every development should have 10% of the land apportioned as open spaces and play area. But the situation will be complicated if there is a capacity of 2,000 to 3,000 people in an area with a plot ratio of 1:6 or higher. Will a 10% land area for open space be enough?” According to Dr Suhardi, a condo or high-rise should have green spaces at the bottom of the building and that these open spaces would be limited if developers decided to provide rooftop gardens only. “Open spaces are not commodities but something
that the public can use together as a community,” he added. He said the government should not only focus on buildings and infrastructure because people usually want to spend their time in green open areas. “It is not necessary to have a lavish open space; all that’s needed is a green space with grass, shady trees, and places for walking, playing and sitting.” Dr Suhardi said it is crucial for the government to enact a Landscape Architect Act. “When something happens to a building, it is the responsibility of the architects. But who will be responsible for the safety of the jogging tracks, playground or open spaces?” He said that the Act will ensure that landscape architects are more careful when executing their work which directly benefits members of the public who use the open spaces. ILAM believes that landscape
10%
of the land as open spaces and play area
“It is not necessary to have a lavish open space; all that’s needed is a green space with grass, shady trees, and places for walking, playing and sitting.
– Dr Suhardi
Dr Suhardi Maulan says the government should enact a Landscape Architect Act.
l Professional l Developer l Landscape contractor l Landscape supplier or manufacturer l Government agencies l CSR l Researcher l Student l Media
architects can play an important role if given the chance to work with planners during the early development stage to ensure landscape requirements are met for the betterment of the people and the environment. “Unlike 20 years ago, we now have millennials with different mindsets and needs, and they want a better quality of life,” said Dr Suhardi, adding that one way to meet their demands is by introducing more greenery, open spaces and parks.
Cover story
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Survey respondents consider pricing first and security second as top deciding factors By Tharmini Kenas tharmini@thestar.com.my
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OOD news for developers and the property market: the majority of the 3,000 respondents in the latest StarProperty.my Buyers’ Sentiment Survey are keen to make a purchase in 2019. At the same time, they show a reluctance to rent properties for the long term. On the question of buying property in the next 12 months, 42% of the respondents answered yes. While 34% are not thinking of buying now, 24% are undecided -- making them potential buyers. These numbers represent an aboutturn from last year’s survey results where respondents were uncertain and confused about their property decisions. The certainty shown in this year’s survey reflects the optimism in the market. Another point of interest to developers is the response to the question: Would you prefer to buy or rent? A whopping 84% chose buying over renting, indicating the reluctance of Malaysians to rent properties for long periods.
Interestingly, two of the three top factors have shuffled positions compared to last year. In 2018, price remained the No.1 factor but respondents chose location over safety and security. Other factors that markedly influence buyers’ decisions are developer reputation, connectivity and accessibility, potential rental yield, potential capital appreciation and distance from hazardous elements such as overhead power lines, busy roads, and sewage treatment ponds.
Price of property
3.85
24%
Do you intend to purchase a property in the next 12 months?
Yes
42%
No
34%
Safety and security
TOP Factors and Weighted average
3.82
Location
3.80
Respondents show a high preference (87%) for newly-launched houses over sub-sale properties (28%). Of late, developers have been launching projects that come with attractive packages such as low down-payment, absorbed lawyer fees, and built-in furniture and fittings – which contribute to the appeal for new properties. On the other hand, auction properties did not fare well with respondents. Recording a mere 16% interest shows that the stigma associated with auction properties is still clouding opinions and judgments of buyers.
Auction property
Undecided
6%
2019
Options on property types
Undecided
Rent
BUYers KEEN oN
10%
Would you prefer to buy or rent?
Buy
84%
16%
Sub-sale
28%
What kind of property would you prefer to purchase?* Newly launched
87%
*Respondents can choose more than one option
Factors that influence buying The findings of the survey also reveal that the price of property (with a weighted average of 3.85) tops the list of factors that influence buyers, followed closely by safety and security (3.82) with location (3.80) in third spot.
Of the different types of property available, respondents highly favoured terraced/ link houses (52%) compared to condominium/ serviced apartments (44%), apartment/flat (25%), semi-detached house (23%), bungalow/ villa (10%), and shophouse (7%).
Property type * Semi-detached house
23%
Apartment / Flat
25%
Condominium / Serviced residence
44%
Bungalow / Villa
10%
Terraced / Link house
52%
Shophouse
7%
*Respondents can choose more than one option
As for affordability, properties in the range of RM300,000 to RM500,000 are most favoured by the majority of respondents. The next range is RM500,001 to RM700,000 and only 5% of respondents are looking for properties costing more than RM900,000. Affordable housing projects by private developers are often in the RM300,000 RM500,000 range which falls within the budget of the majority of respondents for 2019. The most popular location among buyers is Johor Baru (50%), followed by Kuala Lumpur (19%), Puchong (18%) and Petaling Jaya (17%). Shah Alam, Cheras and Kajang are also among the preferred locations. An aspect that often gets sidetracked when it comes to preference is property size. To cater to affordability, the size of new developments is often significantly reduced. In the 2019 Buyers’ Sentiment Survey, most of the respondents chose 1,000sf-1,499sf as the ideal property size for a quality daily life.
STARPROPERTY.MY
Johor is the most popular Investors who made up 31% of the total respondents showed an interest in residential properties (80%) in 2019, followed by commercial properties (33%) and industrial properties (7%).
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Residential properties
80%
Commercial properties
33%
Types of properties for investment*
Industrial properties
53%
of respondents believe that Malaysian land should be for Malaysians only
*Respondents can choose more than one option
The investment location that tops the list is Johor Baru (48%), beating Kuala Lumpur (31%) with Puchong and Petaling Jaya recording 18%. Other favourite investment locations include Cheras, Penang Island and Shah Alam.
48%
31%
Petaling Jaya
18%
Puchong
18%
*Respondents can choose more than one option
Interesting facts from the survey
44% of respondents feel that the interest rates for housing loans are quite high. The acceptable distance from home to the workplace is less than 15km.
53% of respondents believe that Malaysian land should be for locals only. 43% of respondents support multigenerational loans, 40% are against while 17% are undecided. 64% of respondents strongly believe that there is an oversupply in the local property market.
67% of respondents will not buy a property they think is haunted. However, 16% would go for it while 17% are undecided.
Petaling Jaya
17% Puchong
18%
The most popular location among buyers*
Johor Baru
50%
Kuala Lumpur
19%
*Respondents can choose more than one option
Not looking to buy
15%
Firsttime home buyers
Upgrader
15%
Tenant
Home Ownership
13%
26%
The acceptable distance from home to the workplace
Johor Baru
The investment location that tops the list*
Of the 3,000 respondents who participated in the survey, 31% were investors, 26% first-time home buyers, 15% upgraders, 13% tenants and 15% not looking to buy another home.
15km
7%
Kuala Lumpur
The respondents
67%
will not buy a property they think is haunted
Investor
31%
People’s wish list for 2019 property market 1.
Competitive and affordable price for new properties 2. Control the price of sub-sale properties 3. Lower housing loan interest 4. High yield/return of investment 5. Flexible financing options 6. No RPGT 7. Zero down-payment 8. Properties near to public transportation 9. Properties with an improved and attractive layout 10. Pet-friendly condominiums/apartments 11. Reduction in loan approval time 12. Easy access to the main road 13. Disabled-friendly developments 14. Elderly-friendly condominiums/apartments 15. More green plants in housing areas 16. Control/regulate properties sold for investment purpose 17. Halt new developments until the number of unsold properties is reduced significantly 18. More township developments 19. Environmental-friendly housing projects 20. Give importance to security 21. Provide correct information about developments 22. Auction properties should be in good condition 23. High quality and attractive lifestyle facilities 24. Better government incentives and housing policies for the middle class 25. Parking charges to be monitored because some operators are unscrupulous 26. More affordable residential properties catering to the middle class (instead of just two extremes: luxury-low cost)
D evelopment
S
ET in the mature neighbourhood of Setapak, Kuala Lumpur, is a condominium that aims to offer residents a quality lifestyle with its wide range of facilities and services. Residensi Platinum Teratai by Platinum Victory stands on 2.94 acres of prime freehold land within easy reach of shopping conveniences such as Aeon Big, Setapak Central Mall, Giant Setapak, Aeon Alpha Angle and Wangsa Walk. In the vicinity are education facilities from primary to tertiary level, making the development a favoured location to raise a family. For outdoor lovers, recreational sites such as Danau Kota Lake, Tasik Sri Rampai and Taman Tasik Titiwangsa can be found less than 5km away. Close to the condominium are the LRT stations of Taman Melati and Wangsa Maju, besides Jalan Genting Kelang, DUKE highway, Jalan Tun Razak and MRR2 – making the property easily accessible.
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MOVE-IN READY FOR THE FAMILY
Residensi Platinum Teratai offers suitable location for quality living
For first-timers and upgraders Targeted for completion in March 2019, the development provides an opportunity for buyers to move in within a short period. The move-in ready factor also reduces the bank loan interest that buyers face. Comprising 800 units of 928sf each with a starting price of RM423,800, Residensi Platinum Teratai comes with tasteful interior design furnishing packages for the kitchen, living and dining area as well as the master bedroom and a guest room, adding value for buyers. Buyers get to choose from two layouts, both having three bedrooms and two bathrooms. The different layouts of Type A and Type B optimise individuality. Meanwhile, some units have the added advantage of the magnificent city view. Residensi Platinum Teratai offers various types of facilities – including a gym, café, kindergarten, AV room, swimming pool, multi-purpose hall, laundry, convenience store, prayer room, nursery, and study room – that are expected to enrich the daily lives of residents.
Residensi Platinum Teratai residents will get a splendid view of the city skyline.
“We believe that the market still has an appetite for projects of good quality. Residensi Platinum Teratai will be a suitable home for those looking for a living environment that’s comfortable and offers convenient amenities and facilities,” said Platinum Victory Group executive director Gan Yee Hin. “It is the type of development that people will find value for their money. Moreover, it’s a freehold development,” he added.
“We believe that the market still has an appetite for projects of good quality. – Gan Yee Hin
Residensi Platinum Teratai is expected to be ready in March 2019, providing fast-track home ownership to potential buyers.
Artist’s impression of Residensi Platinum Teratai which stands on 2.94 acres of prime freehold land in Setapak.
Artist’s impression of the Residensi Platinum Teratai swimming pool.
Meticulously designed living spaces in the units will enrich the lives of residents.
Wednesday 2 January 2019
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S pecial feature
RIGHT PRODUCT, RIGHT PRICE
Sunway Property’s launches do well in a challenging market
By Hakim Hassan hakim@thestar.com.my
A
FTER recording positive numbers in 2018, Sunway Property will be aiming to expand its land bank and increase contributions from overseas operations in the coming year. Currently active in Penang, Perak, Klang Valley and Johor, the company will be on the lookout for landbank opportunities in other states as well, says property division managing director Sarena Cheah. “Malaysia is going through a renewal process. We believe in the medium to long-term prospects of the country, so we will continue to look for opportunities,” she said. Outside of Malaysia, Sunway Property has been active in Singapore and China. Cheah said: “Although we have plans to expand beyond the two countries, we are aware of international challenges that lie ahead. “We have been looking at Australia and even the UK, but we have to take a more cautious stand especially at this time of global trade wars. We have done well in Singapore and China, so we will continue to expand there.” Cheah added that in the scope of two to three years, Sunway
Property’s international portfolio is targeted to contribute close to 30% of its overall profits (from the current 10%).
Ending on a positive note Despite the soft property market in 2018, Sunway Property is confident of ending the year on a positive note -- spurred on by overseas sales and new launches. Cheah says the company should do better than the
Sarena Cheah
target of RM1.3bil in sales. “The property market has consolidated in the past three to four years after Bank Negara introduced tightening measures. I think that is good for the property market in the medium to longer term. "So far this year, the market has done quite well. We have been fortunate to launch in strong locations, either in transit developments or townships within our own developments. I believe we will end the year with RM1.7bil in sales, helped by our overseas concerns,” she said. As for local products, Cheah said the performance of the new properties has been encouraging. Among them is Sunway GEO, a condominium opposite Sunway Medical Centre within Bandar Sunway, which has garnered a take-up rate of up to 80% primarily because of its strong location within a fully integrated township. Another new launch is Sunway Velocity 2, which adjoins Sunway Velocity within a 23-acre integrated development in Kuala Lumpur and served by two MRT stations. Cheah said: “That particular development is nearly completed and we have actually sold everything there. It is anchored by a mall, a hotel and offices. By next year we will open our medical centre.” As for Velocity 2, the launch of serviced apartments has been met positively by buyers. “We have sold about 80% of the first phase,” Cheah added.
In Johor, sales of Sunway’s Citrine Lakehomes – landed products comprising townhouses – have also reached 80%. “These launches have returned strong figures because we have put out the right products with the right prices in a market that is relatively more challenging,” said Cheah. She said that their operations in Singapore and China have performed exceptionally well and has contributed significantly to the company’s profits during the slowdown in the local market. “Our executive condo in Singapore is 100% sold and we are doing 80% to 90% in China, both of which have helped us exceed our sales forecast for this year. “This year has not been the easiest, but we have been able to sell the majority of units in our launches. Moving forward, we hope to continue with this performance,” said Cheah.
ABOVE: The performance of new properties has been encouraging, including the Sunway GEO condominium opposite Sunway Medical Centre in Bandar Sunway.
“outside of Malaysia, currently there are plans to expand beyond Singapore and China. but we are aware of international challenges that lie ahead. – Sarena Cheah