02
NOV
2016 WEDNESDAY
BUDGET 2017:
KEY ISSUES AFFECTING PROPERTY SECTOR Several measures to support house ownership and improve property industry introduced. >P02-04
INSIDE THIS ISSUE www.starproperty.my
THE TRAIL OF VALUE CREATION
GAMUDA LAND CEMENTS ITS LEGACY AS “MASTER -BUILDER” OF VALUE SUSTAINABLE DEVELOPMENTS. > P08 facebook: starproperty.my
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THE LUXE BY INFINITUM, PEERLESS IN MANY WAYS LUXURIOUS COMPACT HOMES AT THE HEART OF KUALA LUMPUR’S CAPITAL. > P10
A BEGINNER’S GUIDE TO MORTGAGE INSURANCE
CHOOSING THE RIGHT MORTGAGE INSURANCE MAY NOT BE A LIFE OR DEATH SITUATION, BUT IT IS ONE IMPORTANT LIFE CHOICE. > P12
Emag: StarProperty.my (English) / Property Trends (Chinese)
cover story
02 budget
2017
By NURUL ASMUI MD AZMI asmui@ocision.com
And CAITLYN NG LI YUIN liyuin@ocision.com
BUDGET 2017:
KEY ISSUES THAT AFFECT THE PROPERTY SECTOR Several measures to support house ownership and improve property industry introduced.
W
hen Malaysia’s Budget 2017 themed “Accelerating Growth, Fiscal Prudence, Enhancing Wellbeing of People” was announced, it came as no surprise that there were vastly different opinions and feelings about it. With an allocation of RM260.8bil, which is an increase of 3.4% from the 2016 Budget Recalibration, the Government has introduced a raft of measures to support house ownership and improve the property industry through the budget. The budget also included various incentives and relief measures that relate to not only real estate and property sector, but also education, cost of living, sports as well as tourism. “The Budget focuses on the agenda of the citizens. It has always been an issue with property affordability where demand and supply do not match. That is why the Government intervention in terms of public housing comes in, and is much welcomed. “One of the things that caught my attention was the allocation of 10,000 units of executive property for rent. It is an interesting approach because previously, we focused more on purchasing, but now the Government is trying to buy time for the younger generation by giving them this kind of opportunity,” said Reapfield Properties Sdn Bhd group chief operating officer Jonathan Lee. “When I look at the budget, I think that it is trying to achieve a balance between the affordable and the more expensive properties. The stamp duty has been given a complete exemption for properties below RM300,000, but it has been increased for properties above RM1mil. The impact of this will be quite substantial, but the government has taken these measures for the purpose of cooling down the market,” said S.K. Brothers Realty (M) Sdn Bhd general manager Chan Ai Cheng. Her statement was reiterated by Chester Properties group chief executive officer Kam Jun Yin, “One can see that there are many cooling measures implemented by the government which indicates that the direction they are headed in for the year 2017 is to stop the
property prices from rising too rapidly. Even though the stamp duty has been raised from 3% to 4%, we are currently still very low as compared to other countries in the region, which have already recorded double digits. “We believe that the incentives for the real estate and property sector will give the much needed boost to the industry towards achieving the targets of housing the nation. Rehda welcomes the Government’s move in continuing to make affordable housing a priority. “The programmes for affordable housing announced in the Budget will expedite and widen the accessibility of affordable housing to the citizens and hopefully nudge them in taking the first step towards home ownership,” said Rehda president Datuk Seri FD Iskandar. The most challenging facet in 2016 is securing mortgage from banks, be it for first-time homebuyers or property investors. To undertake this issue, Budget 2017 has announced an increment in the housing loans eligibility for the public servants, housing for the B40 and a special scheme for the (Perumahan Rakyat 1Malaysia) PR1MA programme. “Rehda lauds the Government’s efforts in increasing the public servants’ housing loans eligibility from between RM120,000 and RM600,000 to between RM200,000 and RM750,000. This will open up more opportunities for public servants to purchase their homes particularly in the urban areas,” said Iskandar. “The introduction of the MyBeautiful New Home where the Government will subsidise RM20,000 for the development of houses in private owned land will further encourage home ownership. “Similarly, the target to build 9,850 units PPR (People’s Housing Programme) houses by KPKT (Ministry of Urban Wellbeing, Housing and Local Government) under the same scheme is a laudable step in promoting affordable home ownership. In addition to that, the allocation to upgrade and maintain low cost houses (PPR) will help improve the quality of life of the lower income group,” added Iskandar. “The new, special ‘step-up’ endfinancing scheme for the PR1MA programme will provide plenty of incentives for first-time homebuyers. If
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2 1 Drone shot of the housing project near Ara Damansara. 2 RAPID LRT integrated transport system in Kuala Lumpur.
youths are intending to buy a property, this is a good time to start hunting for a property. “However, one should seek advice from home mortgage specialists to ensure that the most is gotten from this incentive. Talk to them and find out what needs to be done three to six months prior to purchasing, to mitigate any risks on loan rejections,” said REI Mediaction Sdn Bhd (a subsidiary of REI Group of Companies)
director Khalil Adis. Besides the greater effort in providing affordable housing and better financing, infrastructure development and upgrades also play a vital role in the property industry as they help to enhance connectivity and accessibility, as well as improve property values in most major localities. Iskandar commented that Rehda is heartened that the Federal Government
STARPROPERTY.MY WEDNESDAY 02 NOVEMBER 2016
will not only continue accelerating the implementation of outstanding infrastructure projects, but has allocated more budget resources for further projects that will further propel economic growth benefiting the nation. Its spillover effect on the property sector with the opening up of further new areas of development, giving better accessibility and short traveling time, will have direct positive impact on the citizens. The budget proposed that the Government is committed to upgrade public transport in rural areas through numerous measures, which are implementation of East Coast Rail Line project, accelerating the implementation of Pan Borneo Highway in Sabah and Sarawak, to restore the East Coast railway line along Gua Musang – Tumpat, and to increase the trip frequency of ETS for the Johor Baru – Padang Besar route. “The East Coast Rail Line will make the areas, Port Klang, ITT Gombak, Bentong, Mentakab, Kuantan, Kemaman, Kerteh, Kuala Terengganu, Kota Baru and Tumpat, highly accessible and desirable. “Follow where new infrastructure development will be as this will help to boost the value of the property. The spillover impact will be felt in the property market and beyond like tourism and retail,” said Khalil. While some parties thought that it was full of goodies for a wide spectrum of industries in the economy, many others felt that there were items on their wish lists which were not fulfilled. According to Syarikat Ong Sdn Bhd managing partner Agnes Wong, while the initiatives outlined in the Budget are of
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good intention, educating the buyers on the risk and benefit of owning a property is crucial. “This is true, especially in the case of first-time homebuyers. Without the proper knowledge and understanding of how the system works, we may welcome unready first-time homebuyers into the property market,” said Wong. Echoing the same sentiment, Lee expressed his concern on how many young people lack an awareness of how the financial system works. “Our education system should incorporate the subject of personal finance into the syllabus from a very young age. Young people make up the majority of the population, and if the majority does not possess high financial literacy, it is bad for the country,” said Lee. Vivahomes Realty head of sales and
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marketing ML Lim reckoned young homebuyers must shoulder the blame as it is their poor financial decisions that led to the home loan rejection. “People from the younger generation tend to have a more lavish lifestyle, spending much of their earnings on exorbitantly priced gadgets. This ultimately pushes up their debt service ratio (DSR), thus causing the bank to not approve their home loans,” said Lim. “If youths have plans to purchase their first property by the time they’re 30 years of age, it would be recommended for them to start building up their financial profile as early as possible, say at 20. This is where the parents come in. Loans are not necessarily bad. Youths must learn the difference between good debts and bad debts. As personal loans and credit card debts are some of the
major factors which contribute to a bad profile, parents can adopt a simple explanation process. “They can start by working backwards, where one calculates the approximate amount needed to pay off a mortgage and a car loan, and include the daily basic expenditures. From there, the child can then see how much they would need to earn. This would teach them the value of money and how being wellprepared is very important,” enthused CBD Properties head of training Sherry Chew. Given the different views and opinions on the Budget, StarProperty.my decided to reach out to a few renowned developers and professionals in the property industry to seek their views and insights through a set of carefully curated questions.
1 Mah Sing Group group managing director Tan Sri Datuk Seri Leong Hoy Kum. 2 REI Mediaction Sdn Bhd (a subsidiary of REI Group of Companies) director Khalil Adis. 3 Rehda president Datuk Seri FD Iskandar. 4 Naza TTDI Sdn Bhd group managing director SM Faliq SM Nasimuddin. 5 Syarikat Ong Sdn Bhd managing partner Agnes Wong. 6 Ekovest Bhd managing director Datuk Seri Lim Keng Cheng. 7 IJM Land Bhd managing director Edward Chong Sin Kiat. 8 Reapfield Properties Sdn Bhd group chief operating officer Jonathan Lee.
Q
uestion 1
How does Budget 2017 affect real estate industry stakeholders such as property buyers, investors, professionals and developers? How does the Budget affect various neighbourhoods? Ekovest Bhd managing director Datuk Seri Lim Keng Cheng: The budget will affect the industry for all parties concerned in a positive way as incentives given in Budget 2017 will provide a platform to rejuvenate a somewhat stagnant real estate market. Certain neighbourhoods will benefit greatly from the infrastructure projects proposed in the Budget as it will drive the economic development of that area. There will be spillover effects on the real estate industry from the projects planned. This will provide improved accessibility and cut the traveling time to certain neighbourhoods and with that, different opportunities can derive and will spur the economy of that region. IJM Land Bhd managing director Edward Chong Sin Kiat: First-time homebuyers, affordable housing buyers and youth entering the workforce have definitely received the focus of the Government. We applaud the Government's effort to provide more affordable housing projects catering to both the B40 and M40 group.
The “step-up” financing proposal for PR1MA homes will further encourage higher eligibility for loans to enable house ownership. First time homebuyers will further benefit from the 100% stamp duty exemption for the first RM300,000 for the purchase of property RM500,000 and below. As for investors and upgraders, property above RM1mil will attract an additional 1% in stamp duty with effect from 1 January 2018. Furthermore, the Government has also allocated grants to resident associations to assist them to safeguard and maintain their neighbourhood. Tax and GST consultant Dr Choong Kwai Fatt: Malaysia remains one of best places for property investment. In view of its strong cultural establishment, relatively lower cost of doing business, and coupled with the weakened currency, all these factors would certainly attract foreign investments from countries such as Indonesia, China or European countries to set up regional centres in Malaysia. There is no property bubble as the spike in property prices has been adjusted or diminished during the years 20122014. The cost of construction, land cost and labour cost would continue to rise in the years to come. This is the best time to invest in a property. Property developers should shift
9 Chester Properties
group chief executive their focus to the East Coast, which the Tan Sri Datuk Seri Leong Hoy Kum: officer Kam Jun Yin. Government can encourage by giving Budget 2017 is a good ‘Rakyat’-centric them various incentives such as a tax budget with the aim to help the lower10 CBD Properties head of training Sherry exemption on investment in the East and middle-income groups who are Chew. Coast Economic Region. first-time homebuyers. The initiatives Naza TTDI Sdn Bhd group managing in Budget 2017 to improve public 11 S.K. Brothers Realty (M) Sdn Bhd general director SM Faliq SM Nasimuddin: Budget transportation and road infrastructure manager Chan Ai 2017 primarily focuses on social housing is a big step to improve accessibility Cheng. as part of the Government’s goal in between villages to cities and towns. 12 Vivahomes realty meeting the housing needs of the people. As a property developer, Mah Sing head of sales and With various Government initiatives in would have appreciated more initiatives marketing, ML Lim. creating the platform for the building of to spur growth in the property sector. more affordable homes, this will provide >TURN TO PAGE 4 opportunities and encouragement for more first home ownership. Other stakeholders such as property developers will need to be more innovative in creating value-added and packaged products in other property categories to meet the demand of a competitive market. The allocation of a Government grant in the Budget to resident associations to ensure a safe and clean neighbourhood is welcomed, as it can help to foster a peaceful and secured community. Mah Sing Group Upgrading of the Pan Borneo highway has begun as can be seen here along the Bintulu stretch in group managing director the northern Sawarak.
cover story
04budget
STARPROPERTY.MY WEDNESDAY 02 NOVEMBER 2016
2017
>FROM PAGE 3
Q
uestion 2
Infrastructure spending drives economic growth. In your personal opinion, why do we need them? What other infrastructure developments does Malaysia need? Lim: Infrastructure is the lifeline for any development. Without infrastructure improvement, it is not possible for a project or an area to strive and reach its fullest potential. A clear example of what I have observed is how the DUKE highway opened up opportunities, new development and rejuvenation of northern Kuala Lumpur, especially in the Gombak, Setapak and Wangsa Maju areas. Ten years ago, to access the area was already a problem as Jalan Pahang/ Jalan Genting Klang cannot cope with the sheer volume of cars and traffic at that time. With better access and infrastructure via the DUKE, the area
Drone shot of the latest PPR, PPR Lembah Subang 2 in Ara Damansara.
Q
has opened up to new developments. There are already many infrastructure projects that the Government will implement following Budget 2017, which will help spur further development and have positive spill-over effects. However, what I hope is for all these projects to be planned in a more holistic manner and that they will complement each other. We cannot be planning infrastructure on a silo basis. Integration and interfacing of these projects is critical to ensure that every ringgit we spend gives the maximum return to the rakyat. Quite a fair bit has been done by Ekovest as well – full integration between public and private transportation to complement each other. Chong: Infrastructure investment is an important driver to spur economic growth during the period of economic uncertainties; more importantly, infrastructure investment on significant public transportation, roads and rails will, upon completion, enhance greater
uestion 3
There are always queries by property buyers of where and when will be the best time to purchase a property. At what age do you think someone should purchase their first property? And what are some of the reasons holding back the youngsters from purchasing one aside from financial restrictions? Lim: Age is not a factor when purchasing a property. Affordability is key. I would advise first-time property buyers to invest as soon as they can afford it. And like I said earlier, purchasing a property is not going out to buy the most expensive unit one can find; it is to buy a house which one can afford. The Government should assist this category of homebuyers. The DIBS programme, which was introduced before, is a clear example of how it can help first-time buyers. However, due to the abuse by certain quarters, it was scrapped. Apart from Government policies and assistance to make purchasing properties more accessible, the younger generation may also lack the knowledge and the importance of owing a property. Their priorities may also be different nowadays and that they prefer to spend their hard
accessibility and connectivity. This can lead to economic growth that will certainly benefit the nation. Choong: Infrastructure spending has been proven to stimulate economy growth as it also encourages residents to stay outside the city centre. Indeed, it is obvious that Malaysia is working on improving its infrastructure, seeing the many MRT, LRT and High Speed Rail trains being developed. The main infrastructure development that should take place is the connectivity of each line with one another so that there is greater ease of access. Faliq: The presence of infrastructure is in an important factor on the success of a property development project. Infrastructure development that involves connectivity such as road network and public transportation are essential, especially in the Greater KL area in improving mobility for its population. The development of LRT and MRT
earned money on a lavish lifestyle. Buyers need to do a bit more research in the location in which they wish to invest. They need to look at properties in which one can see what the future planning is in that area. Investing in properties is long term and they should be aware of what transformation that will take place. Don’t regret buying at the wrong location. Do take full advantage of the benefits provided by the Government in assisting first time buyers and those who are entitled to financial assistance. This will grow the real estate industry and in turn, help to improve the Malaysian economy. Chong: I personally believe that we should get on the property ladder as soon as possible, given that the pace of property price has been increasing more rapidly than the income growth over the past many years. I believe the time to buy is now right as there are ample choices of properties available and developers are offering attractive packages to boost sales. Properties that are located close to new public transportation like MRT and LRT, as well as well-planned townships that are well connected and easily accessible will continue to garner strong interest. We also believe that first-time homebuyers must take the effort to
lines as well as new highways that have extended beyond Greater KL has provided the opportunity for property development beyond the area. Leong: The Government has allocated considerable funds in Budget 2017 to upgrade and improve transportation infrastructure, particularly in rural areas, in order to provide accessibility to both towns and cities. The implementation of the new 600km East Coast Rail Line connecting the Klang Valley to the East Coast as well as the upgrading and developing of 616km roads and bridges in villages, towns and cities across the country show the Government’s commitment to improve connectivity and foster urbanization. Future infrastructures additions such as the High Speed Rail together with the Mass Rapid Transit (MRT) and Light Rail Transit (LRT) line extensions will continue to be a stimulus to the economy as travelling long distance becomes faster and easier.
understand the various factors that affect or reduce their loan eligibility so they can determine which factors can be minimised or eliminated. Choong: Generally speaking, the best time to buy property is now or never. The criteria is buying one that is in the region of RM300,000 - RM700,000. To be specific, one should purchase a property at the age of 29, assuming that he/she graduated at the age of 24. The loan tenure should be extended to 60 years; this does not mean that the loan payment will be made up to 60 years old. What it means is that a long tenure would ease up the pressure of paying higher sum of instalments. In modern times, youths should be grateful for the things they have and stop complaining, blaming or criticising the country or other people. Effort should be put into critical thinking to know what he/ she needs to do in order to be happy and work within one’s ability and capability. Faliq: The purchase of a first property should be made upon attaining the financial capability to do so, regardless of age. With the introduction of various Government home ownership programmes, such as PPR, MyBeautiful New Homes and PR1MA, this will provide a better opportunity towards one’s first home ownership. First-time homebuyers should seize the opportunity on the recently announced initiatives in the Budget. For properties in the higher category, there
are various choices in the market but essentially, the factors that one should be looking at will be strategic location, the amenities and the reputation of the developer. Leong: Committing to a home is a big decision and should be given much consideration. Start young to be able to leverage on the long tenure for bank loan borrowings facilities. First-time homebuyers can also consider buying homes under construction for the advantages of being able to purchase the property at current prices and delay the full repayment until the completion of the property purchased. In Malaysia, property is often a hedge against inflation and represent a good investment. Properties which are located where there is good infrastructure will continue to do well and appreciate in value. Civil servants will benefit from the increase in housing loans eligibility: RM200,000 and RM750,000 from RM120,000 and RM600,000 respectively as a good measure to encourage Malaysians to purchase homes. There will always be opportunities to own good developments and there are a few options to choose from. For example, the stamp duty was increased from 3% to 4% for homes more than RM1mil, which will encourage advance buying of completed properties by investors prior to January 1, 2018.
Public Service Announcement
Individuals who were once Malaysian citizens, but will be giving up their citizenship, would now need to pay RPGT on landed properties despite being an inter vivos gift to children, spouse or grandchildren. The RPGT rate of 30% applies to non-citizens for the holding period of a landed property within 5 years, and 5% for the holding period of a landed property exceeding 5 years. The RPGT is levied based on the difference between market value of the property at the time of transfer and its acquisition price. This will be a heavy cost to the benefactor. In order to avoid RPGT, the benefactor may act now to transfer the Malaysian properties during the year 2016 to his children, spouse or grandchildren. There will be no RPGT payable based on the existing Para 12(2), Sch 2 of RPGT Act 1976. The amendment will only take effect from January 1 2017.
Tax and GST consultant Dr Choong Kwai Fatt.
developments
STARPROPERTY.MY WEDNESDAY 02 NOVEMBER 2016
By LEE YAN LI
retail05
lylee@thestar.com.my
1
RETAIL GROWTH IMPETUS AT
THE HEART OF CHERAS
Sunway Velocity brings elegant shopping experience to the mature neighbourhood.
R
EPORTS of a glut of retail space in the Klang Valley, particularly in Kuala Lumpur city area, may be a source of concern for some. However, for residents and business operators of bustling yet long ignored neighbourhoods, this may be a blessing in disguise as more megamall developers are diverting their focus from the city centre. Sunway Velocity Mall, the first shopping mall with a one-million net lettable area (NLA) to serve the densely populated Cheras population, will change the face of retail business in the Cheras area when it opens on Dec 8. With over 100 “taman” in Cheras, the mall will reside within a catchment of 1.72 million people within a 20-minute drive radius. “If you look at Cheras today, there is a void of a world-class mall offering one million sq ft, carefully planned integrated developments and a mass cluster of retail brands in fashion, leisure and entertainment as well as food and beverage,” said Sunway Malls and Theme Parks chief executive officer H.C. Chan in an interview. Citing Jones Lang Wootton retail property research, which estimated a figure of 4.5 sq ft retail space per capita, Chan said Cheras has a largely affluent and urbane population, which is underserved. “The intent of building Sunway Velocity mall is to fill the latent demand in Cheras and elevate the retail scene and experiences for the consumers,” said Chan. Chan said weak consumer sentiments,
lower tourist arrival, macroeconomic pressures, retail space oversupply are among the factors which have led to a competitive mall rental market, and suggested that some form of control is needed to address the oversupply situation. “The malls have to move from quantity to quality. If the real differentiation between malls is not established, crowding out will happen,” he said. With positive sign-up occupancy rate that reaches 90% to date and an estimation of 100% by 2H 2017, Sunway Velocity has been carefully coordinating the trade mix to offer consumers strong retail brands and optimal shopping experience. “There is a good balance of trade mix with fashion (26%), F&B (25%) entertainment (7%) and departmental store (22%), which will predominantly serve the middle- to upper-middle class markets. “Both F&B and entertainment are strategic elements in our retail planning besides harnessing the social aspect of the mall to give it an edge. For example, there will be a themed food precinct that celebrates the vibrant local food culture,” said Chan. The mall will have seven levels and four precincts, namely Market Place, Vanity Hall, Food Street Food and the Balcony. Sunway Velocity Mall has 12 key tenants consisting of anchors and mini anchors that will occupy 40% of NLA, including Parkson, TGV Cinemas and
1 Artist’s impression of Sunway Velocity Mall. 2 Sunway Malls and Theme Parks chief executive officer HC Chan.
6,500 PARKING
Sunway Velocity Mall will have a two-acre park, an elevated deck lined with greenery and three levels of basement parking with approximately 6,500 parking bays.
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Aeon MaxValu Prime as the three main anchors. Moviegoers are in for a treat as the cinema will have the biggest IMAX screen in peninsular Malaysia. The mall will be the first in Malaysia to host Aeon MaxValu Prime, a new concept store by Aeon that emphasises quality living goods from different countries, especially Japanese-made products. Globally, Aeon MaxValu Prime can only be found in Japan and Hong Kong. One of the highlighted tenants include CHi-X Fitness, a sister brand to existing CHi Fitness, a leading home-grown fitness chain in Malaysia. It will be the third Chi-X Fitness Club in the country. The other key tenants include Grand Imperial, Uniqlo, Harvey Norman, Padini Concept Store, Popular Bookstore, Home's Harmony, Toys 'R' Us, and JD Sports. Being the fifth mall that is developed by Sunway, Sunway Velocity Mall draws on the strength and success from its past experience to enhance the concept of the mall, including Sunway’s reputed integrated development strategy. “Besides the shops, the mall is also
conceived as an urban sanctuary for people seeking respite. Cheras is infamous for its traffic jams and difficulty in finding car parks, while there is little green space and accessible pedestrian walkways. “Hence, we are creating a world of contrast with Sunway Velocity Mall. Within the Velocity development, there will be a two-acre park linked to the mall, an elevated deck lined with greenery and three levels of basement parking with approximately 6,500 parking bays,” said Chan. As online shopping and social media experience have become part of retail experience, Chan said Sunway is also capturing the trend by offering the best of both worlds. “We are planning to offer services in which customers can buy online and collect goods at the outlet in the mall. Customers will be able to spend some leisurely time here while collecting the goods hassle free,” he added. Sunway Velocity Mall is part of a 23-acre integrated development that combines residential, commercial, healthcare and retail component located in Jalan Cheras. The development has a wide range of networks, including Jalan Cheras, Jalan Loke Yew, Jalan Pudu and Jalan Tun Razak. It is easily accessible via Smart highway, KL-Seremban highway, New Pantai Expressway (NPE) and Maju Expressway. It is within walking distance from Ikea Cheras and is well served by the Maluri LRT interchange station and the upcoming Cochrane and Maluri MRT stations.
events
STARPROPERTY.MY WEDNESDAY 02 NOVEMBER 2016
06fairs
By LEE YAN LI
lylee@thestar.com.my
THE DAWN OF
NEW RETAIL ERA A
FTER decades of prosperity, the retail market is facing winds of change. The ever-growing number of shopping malls and retail outlets in Malaysia are starkly contrasted with the lack of evolution in its built-up and mode of operation. However, with the progress of online shopping, food trucks, pop-up stores, changing consumer behaviour of Gen Z, globalised nature of retail market and the current depressed market, the traditional “Bigger is Better” malls are no longer a certain bet for success. Savills Malaysia managing director Allan Soo said that previously, one could build a mall, knowing the rental yield will be good enough and the cost is relatively low. “Today, location is no longer the deciding factor, as virtually the whole Klang Valley is filled with malls,” he said in the recent Rehda Institute CEO Series 2016.
By JONATHAN ROBERTS
In the Klang Valley area, there are approximately 56 million sq ft of retail space by 155 malls and hypermarkets, and there will be more coming up. In this situation, strategic planning, targeting and positioning would become the keys to a successful retail facility. As the current market is challenging on big or small malls alike, factors such as the catchment areas of the mall, the average household income and tenants’ needs have to be addressed to ensure the success of a mall. Ideally, there should be a population of 80,000 people within a five-minute drive radius with an average household income of over RM5,000 to guarantee a chance of success. “If there is 500,000 people within the 15-minute radius, but less than 50,000 people within five-minute drive, it is not going to work because the day crowd won’t be there, and there’s no guarantee that there will be a weekend crowd,” said Soo.
Traditional 'Brick and Mortar' retail concept has been challenged by e-commerce in recent years.
According to him, the next generation of malls have to reconsider the “brick and mortar” concept of retail experience, as forces of online shopping have made an impact on consumer trends and spending habits. Soo said the Gen Z, who are the first real demographic group of digital natives, are accustomed to shop at the click of a button. The new shopping centres need to cater to their expectations of efficiency
and the penchant for sharing their shopping experience on social media. He added that some established international brands have been quick to adapt to Gen Z’s appetite. Some clothing brands have been launching new designs every few days rather than months to cater to the young.
StarProperty.my Emag
The original article was first published in Chinese in Property Trends.
jonathan@propwall.com
STARPROPERTY.MY@ THE CURVE A SUCCESS T Home seekers enquiring about the product offerings at the Starproperty.my@TheCurve.
HE recent StarProperty.my Fair@The Curve proved to be a success as participating exhibitors drew interest from potential homebuyers. The four-day long property fair was from October 27 to 30 (Thursday to Sunday), 10am to 10pm at G Floor, Centre Court@The Curve. As budget 2017 was recently announced, and while many homebuyers were appreciative of the Government’s help to get the B40 and public servants a roof over their heads, they were upset about the lack of initiative for middle-income earners.
According to a senior real estate negotiator, the property market is in a tricky situation, “With the rise of labour cost, compliance cost and land price, it is not easy for property developers to drive down property prices,” he said, and added, “We hope for some relaxation (of measures) from the banks because the demand for properties is there, but getting home loans approved is a challenge. However, if there is too much relaxation, the property market will also be at risk.” Despite the slowdown in the property market, home seekers were aplenty at the fair. They were greeted with a host of luxurious projects such as The Luxe by Macly Equity Sdn Bhd, M City and Lakeville Residences by Mah Sing Group Bhd, as well as Begonia, Sefina Mont Kiara and Verdi Eco-Dominiums by UEM Sunrise Bhd. Other prominent participating
developers included Tropicana Corporation Bhd, Agile PJD Development Sdn Bhd and Eupe Bangsar South Development (JV) Sdn Bhd. Homebuyers at the fair were pleased to receive electrical and household items worth more than RM10,000 in a lucky draw. On top of that, lucky visitors who participated in a survey also won Spritzer Hot and Warm Mini Dispensers and other exciting mystery gifts. IJM Land and Ekovest Bhd were the premium partners for StarProperty. my Fair 2016. For more information on upcoming StarProperty.my fairs, visit fair.starproperty.my or Facebook page (StarProperty.my), or call 603-79671388 (ext: 1103). StarProperty.my also offers support to those with serious concerns on mortgage and financing problems. Email support@propwall.my for inquiries on mortgage application.
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developments
08 township By LEE YAN LI
lylee@thestar.com.my
A
T the heart of value creation is a well-planned development that sits on the foundation of a sustainable environment as well as the right hierarchy of facilities and amenities. For over two decades, Gamuda Land has based its success on its unyielding commitment to deliver strategically located developments with strong master plan and well-crafted environments to ensure sustainable value is being enjoyed by customers in the form of enhanced quality of life and investment growth. For this, Gamuda Land has netted the Value Creation awards for the last five consecutive years. Established in 1995, Gamuda Land is the property development arm of Gamuda Bhd, which has demonstrated itself as one of Asia’s premier companies with its 40 years of success. Gamuda Bhd recently won The Builder of the Year Award at the Malaysian Construction Industry Excellence Award (MCIEA) 2016. The award by the Construction Industry Development Board honours overall excellence in company performance and project implementation. It is a testament to Gamuda Bhd’s diligence in embracing superior quality, workmanship and innovation in all its projects, from building homes and communities to enabling easier connectivity via Gamuda's involvement in the country’s first mass rapid transit system and highway projects. Gamuda Bhd's emphasis on product differentiation and excellence, value creation and sustainability are reflected in the way Gamuda Land works, which are exemplified in sustainable developments such as Kota Kemuning, Bandar Botanic and Horizon Hills. Gamuda Land’s story started with the celebrated development of Kota Kemuning in Shah Alam, a sustainable master plan that captured the mood of the future.
The vision that launched thousands of homes
Back when Gamuda acquired the 1,800 acres of palm oil estate in Shah Alam in 1995, the future Kota Kemuning was in the middle of nowhere. The location was transformed by the construction of Shah Alam Expressway (Kesas highway) by Gamuda in 1996 and has since become one of the major highways with high traffic volume. Gamuda Land managing director Chow Chee Wah said, “We always start with a strong master plan to ensure longterm sustainable growth. There was no gated community for landed property in the area but we saw the possibility and decided to create the suitable infrastructure for future implementation of more gated-and-guarded precincts. “Now, if you visit some of the older phases in Kota Kemuning, they have all become gated communities done by the residents as the infrastructure, landscapes and road hierarchies had
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been pre-designed for them,” he said, adding that the sustainable features allow the development to grow with the community without moving to another area. Natural landscape, such as the central lake and parks, are weaved into residential enclaves to ensure residents can get out of their homes and easily spend time outdoors. The integrated township became the muse for Gamuda Land’s subsequent township developments.
1 Horizon Hills: A lowdensity integrated residential township in Iskandar Puteri that spans across 1,200 acres of land. 2 Signature homes of Gamuda Gardens with striking façade. 3 Bandar Botanic, a self-sustaining township with an average 21% capital appreciation year-onyear.
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Multi-award winning integrated development
Bandar Botanic, the self-sustaining township in Klang, is a parklandwaterfront concept spanning over 1,247 acres of freehold land. The lowdensity development which began in 2001 stayed true to Gamuda’s practice of incorporating maximum “greenscapes”. The 80-acre Botanic West was carefully designed to create a distinct green identity with its Central Lake and Park as the community’s main recreational hub. Meanwhile, the 100acre Botanic East offers resort-styled ambience with its thematic parks and gardens. “We preserve the natural topography of the land, work with the natural resources and incorporate well-planned features like lakes and ponds to serve recreational, aesthetical and functional purposes,” said Chow. Bandar Botanic, with its strategic location in Klang, easy access from Kesas highway and Pulau Indah Expressway, good master planning and quality homes, as well as comprehensive amenities and lifestyle facilities, has been winning the value creation award for four consecutive years. The future LRT 3 and the expansion of the regional wholesale centre are expected to contribute to Bandar Botanic’s development.
Glimpsing green horizons
Horizon Hills is another low-density integrated residential township in Iskandar Puteri that spans across 1,200 acres of land. The environment has
THE TRAIL OF
Gamuda Land cements its legacy as 'master
40 YEARS
Established in 1995, Gamuda Land is the property development arm of Gamuda Bhd, the leading engineering, construction and infrastructure group in Malaysia, which has demonstrated itself as one of Asia’s premier companies with its 40 years of success.
won the hearts of not just locals, but also Singaporeans and other foreign investors. The township is set in a resort-style environment and offers generous open spaces for recreation such as gardens, parks, lakes and a 30-km cycling path. Horizon Hills’ master plan maintained the natural undulating terrain of the land and transformed the lowlands into the golf course of international standards and a club house. Only 30% of the terrain was reshaped with the rest retaining its natural form. The award-winning international championship 18-hole golf course was designed by Ross Watson. A hierarchy of roads, cluster neighbourhoods and public amenities are laid out to maximise safety, including features such as a three-tier security system with CCTV surveillance on perimeter fencing, entry guardhouse at each precinct, 24-hour security patrols and panic buttons in every home.
Gamuda Land continues to create value
Keeping its eyes on the future, Gamuda Land created sustainable communities and wholesome beautiful living environments for the buyers and investors and set the standards for all lifestyle integrated developments, which became the benchmark in the industry. The price of Kota Kemuning homes has increased 237% from RM132,000 in
2010 to RM445,000 in 2015. In the same period, Bandar Botanic’s link houses have increased 110% from RM556,000 to RM1.17mil. Both amounted to an average annual yield of 21% to 47%. For its consistant performance in sustainable value creation, Gamuda Land has won multiple awards for various projects. Bandar Botanic has been winning the value creation award for four consecutive years from 2013 to 2016 whilst Kota Kemuning was also given the same award for 2012 and 2013.
New upcoming townships
With decades of experience in designing sustainable award-winning townships, Gamuda Land raises the bar to achieve greater heights in its upcoming projects such as Gamuda Gardens, Kundang Estates and twentyFive.7, which are located at the northern and southern ends of Greater Kuala Lumpur. Each project has its own distinctive identity, which stays true to Gamuda Land’s vision.
Lush natural terrains of Gamuda Gardens In the northern part of the Klang Valley, the 810-acre Gamuda Gardens and 89-acre Kundang Estates will be new neighbours to mature towns like Sungai Buloh and provide excellent connectivity via Latar Expressway, the North-South Highway and Guthrie
STARPROPERTY.MY WEDNESDAY 02 NOVEMBER 2016
09
VALUE CREATION
-builder' of value sustainable developments. Corridor Expressway. The main appeal of the location lies in its proximity to Sungai Buloh Integrated Transportation Hub, the future focal point of northern Kuala Lumpur, which is a stop away from Kuang KTM station. Utilising the Park&Ride facility, residents will be easily connected to all parts of the Klang Valley. The MRT station (Line 1) is scheduled to be completed by next month. Launching in the first quarter of 2017, one of Gamuda Gardens’s biggest wonders is its preservation of the natural undulating terrain. The impressively designed lush parks boast 50 acres of green with five cascading lakes, a majestic waterfall and nature-rich bike trails. With more than 15,000 trees in the entire development, 75% of the streets will be shaded with trees. Residents will be able to look out to great vistas of the vast parklands through amazing key lookout points. From day one, the planning was laid out to ensure the natural beauty of the landscape is preserved and enhanced. “We plan and design every aspect of the development, including infrastructure, road systems, current and future precincts, the right hierarchy of community spaces and amenities to ensure long-term viability and growth to enhance the quality of life for generations to come,” said Chow The comprehensive master planning ensures that lifestyle conveniences are
development is the vibrant waterfront village filled with cafés, restaurants, grocers and boutiques to meet the residents’ lifestyle needs. Urbanites live in chic and modern homes with striking façade surrounded by sweeping hills, indigenous trees, natural lakes and the waterfalls. The planning of the neighbourhood is based on crime prevention through environmental design (CPTED), in which the orientation of homes maximise views of the public realm to maintain “eyes on the street”. This eco-gem is complemented with modern facilities and infrastructure to support the needs of the next generation.
Kundang Estates: A home of countryside splendour Just five km from Gamuda Gardens, Kundang Estates is designed to offer the generations of locals a chance to stay
delicately merged with the beautifully crafted environment. At the heart of the
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For more information, visit www.gamudaland.com.my
of Kota Kemuning with its waterfront lifestyle hub and designer residences, twentyFive.7 enjoys the same accessibility while presenting a whole new and exciting ambiance to the young and hip. The comprehensive master planning means twentyFive.7 has been designed to cater to the modern way of life for Millennial-minded homebuyers, as well as young, creative start-ups with features of lifestyle-focused spaces, a plug-and-play environment and new-to-market designs. “New townships should embody integration, inclusivity and diversity. They must cater to not just what we want today, but what the future needs tomorrow,” said Chow. The 257-acre integrated township is one of the first developments to offer landed dual-key features. The urban chic designs also resulted in multi-façade link houses that are customised with different orientation and frontage to present different perspective. At the waterfront hub, new-concept retails and shops such as artisan cafés and specialty restaurants will be augmenting the vibrant, pulsating life of the urban neighbourhood. Furniture of Avant-Grade design decorates the streetscape, mirroring the chic and offbeat blend of modern youth. close to their roots while embracing the modern yet tranquil lifestyle. The relatively small acreage of the development does not hamper the vision for a holistic approach to maximise the possibility of Kundang Estates. The low density boutique residential estate with 573 double-storey terrace houses are decorated with four interconnected parks, namely Lakeside Gardens, Community Farm, Esplanade and Adventure Parks, bringing an abundance of activities that cater for multigenerational residents. “We don’t just design houses – we design vibrant and quality communities. No matter how basic or small a house may be, we always inject lifestyle features – the small luxuries – into it,” said Chow.
North to South: twentyFive.7 embraces Avant-Garde Life From northern Klang Valley to the south, Gamuda Land makes a turn to embrace the youthful, avant-garde lifestyle of the millennial. Envisioned as the vibrant pulse
Engineering a future of value enhancement
Through thick and thin, Gamuda Land plays the long game with its visionary projects. The comprehensive master planning of Gamuda Land’s projects fuses natural geographic advantages with exhaustive infrastructure and amenities, making it a perfect living environment that continues to evolve and define the spirit of modern living. “For every township we develop, we must be able to create a distinction and an enhanced concept compared with previous projects. We must be able to craft something that can sustain those expectations as we are designing for the future, not for yesterday or today. “Moving forward, we will continue to raise the bar in building developments with emphasis on strategic locations, fortified by comprehensive master planning and beautifully crafted environments, to ensure that sustainable value is created for our customer,” said Chow.
developments
STARPROPERTY.MY WEDNESDAY 02 NOVEMBER 2016
10 high-rise
By MAK KUM SHI
makks@thestar.com.my
THE LUXE BY INFINITUM,
PEERLESS IN MANY WAYS Luxurious compact homes at the heart of Kuala Lumpur.
T
HE capital city of Kuala Lumpur presents a wide range of business, tourism and employment opportunities, but it presents its own set of challenges for those who want to grasp those opportunities as well. Therefore, compact homes with excellent value at competitive prices and unrivalled location within Kuala Lumpur City enable urbanites to be able to optimise such opportunities. The Luxe by Infinitum, an exquisitely designed development by Macly Equity, a joint venture between Roxy-Pacific Holdings and Macly Group, is located next to the Golden Triangle, Malaysia’s leading commercial, shopping and entertainment hub. With a KL Monorail station that is easily accessible from the Quill City Mall, a major shopping centre adjacent to The Luxe by Infinitum development, residents will have
unparalleled accessibility to other transportation networks such as the LRT and MRT, as well as major destinations in within the Golden Triangle, such as the Kuala Lumpur City Centre and Bukit Bintang. Its seamless connectivity from the monorail station to the Kuala Lumpur International Airport through KL Sentral makes the transportation system to travel overseas from home convenient. This development’s location is strategic because it enables residents to access a thriving region that hosts both national and global headquarters of several multinational companies, an internationally renowned shopping destination and a vibrant entertainment hub for locals, tourists and expatriates alike. The advantage of having a strategic location is further enhanced by the development’s design, which presents a wide
range of usage and investment opportunities for owners. With a stunning panoramic view of Kuala Lumpur City skyline, The Luxe by Infinitum is a self-contained world of luxury, refinement and pleasure, with a superb selection of recreational facilities, spread over two floors for your delight. Roxy-Pacific Holdings Limited executive chairman Teo Hong Lim said, “With good design, you compact the size of your units, you have no wasted space. When prices go up on a per square foot basis, you are still making the product affordable. “Infinitum is probably one of the products where we harnessed our skill sets in optimising the space and created the product of a very compact dual-key that is usable and accepted by the market.” Macly Group managing director Herman Chang commented that the development units being compact dual-key offer the possibility of multiple tenants and usage, which will push up the yield of the properties. The developers have looked at various ways of possible space utilisation, and by shifting the walls by 10cm to create very optimum usable space for buyers, they created a value proposition for buyers. Compared to The Colony by Infinitum development, which was the first tower of the development, the developers had raised the upgraded specifications by including porcelain tiles and raising the specifications of appliances. The development would also have a wide range of facilities that would create a conducive living environment, such as 24-hour on-site security service, business facilities and meeting rooms, daily housekeeping service and concierge service. Chang said, “We have about 20% sales from Singapore. Some of these people are going to have it for their own use because of the dual-tenancy, dual-purpose feature. Some of them will be doing business here, they will want to use part of it as their office, the other half as their own residence, which will eliminate the need for them to stay in hotels. “Others include some urbanites, like husband and wife, where before they have children, they are working. They may be in their early 30s, needing a convenient place (to live in) to avoid the jam and lessen the traveling time in the morning, so these are some of the buyers.”
Developer's name:
Macly Equity Sdn Bhd (joint-venture of
Roxy-Pacific Holdings Limited and Macly Group) Address: 18, Jalan Dewan Sultan Sulaiman, 50300 Kuala Lumpur Website: www. thecolonybyinfinitum. com.my/theluxe Contact No: +603 2602 3318 Corporate Background: As an established property and hospitality group with an Asia-Pacific focus, RoxyPacific Holdings Limited has established itself since May 1967 into a trusted, homegrown specialty property and hospitality group, principally engaged in the development and sale of residential properties. In addition to owning the Grand Mercure Roxy Hotel, Roxy Square Shopping Centre and other investment properties, it has grown its portfolio to include both residential and commercial developments. As a real estate development company based in Singapore, Macly Group has a track record of developing landed properties, apartments, condominiums, mixed developments, commercial and cluster housing projects. From 2004 to 2011, the group had developed and launched 20 developments with a total of more than 1000 residential and commercial units in Singapore.
Development project name:
The Luxe by Infinitum
Advertising Permit No. and date: 13559-1/06-2017/01982(P). 21-6-2016 to 20-6-2017 Developers License No. and date: 13559-1/06-2017/01982(L). 21-6-2016 to 20-6-2017 Development concept: Compact Dual-Key HighRise Location: Kuala Lumpur City Property type: Condominium Land title: Housing Development Tenure: Freehold Development size: 1.389 acres Total units: Phase 1 (423 units) Phase 2 (300 units) Commercial (31 units) Built-up area: Phase 1 (705 – 1,155 sq ft) Phase 2 (675 – 1,575 sq ft) Total designs: 5 Number of bedrooms: 1 to 2 Number of bathrooms: 2 to 3 Estimated date of completion: Phase 1 (end-September 2020) Development project’s target market: For home-stay and investment use. Suitable for local and foreign individuals and executives alike.
Educational Institutions: • IBC Higher Studies Sdn Bhd • ANC Business Management • International Academy Clipso • Boston Language Centre • International Business School • Lu Pei Chan Japan Education Centre • University Teknology Malaysia • Goon Institute Medical Institutions: • General Hospital Kuala Lumpur • IJN Heart Institute • Hospital Pusrawi Sdn Bhd Retail, entertainment, and leisure: • Quill City Mall • Maju Junction Mall • Sogo Shopping Mall • Jalan TAR (Tunku Abdul Rahman) • Asian Heritage Row • Sheraton Imperial Hotel Architectural concept: • Business Lounge • BBQ Area • Indoor Dining • Residents’ Lounge • Internet Room • Swimming Pool • Shallow Pool • Pool Deck • Steam/Sauna Room • Gym • Wet Deck • Jacuzzi • Internet/KTV Room • Children’s Playground • Staff Recreation Room Interior design concept: • Kitchen - Built-in kitchen cabinet with hob and hood, sink and tap • Pantry - Built-in kitchen cabinet with sink and tap [for Types A, A1, A1(G), A2, A3, D, D(Corner), D1, D2, E, E1, P1, P1(Corner), P1(A), P1(B), P2 only] • Bathroom - Quality Sanitary Wares
feature
STARPROPERTY.MY WEDNESDAY 05 OCTOBER 2016
12 mortgage insurance By JONATHAN ROBERTS jonathan@propwall.com
A BEGINNER'S GUIDE TO
MORTGAGE INSURANCE C
HOOSING the right mortgage insurance may not be a life or death situation, but it is one important life choice. The right insurance might become the life saver for your loved ones when facing the uncertainties of life, while the wrong one will do little to alleviate a difficult financial situation. In Malaysia, two mortgage life insurance are available to homebuyers – Mortgage Reducing Term Assurance (MRTA) and Mortgage Level Term Assurance (MLTA). Quoting the “2013 Protection Gap in Malaysia” study, Life Insurance Association of Malaysia (Liam) president Toi See Jong said out of every 10 Malaysians, four to five persons don’t have life insurance. Such complacency is why most Malaysians are grossly underinsured, and many are risking unsettled loan in the event of accidents or sudden deaths. Thus, transferring the burden of mortgage repayment to the loved ones.
What is the difference between MRTA and MLTA?
As property prices have skyrocketed in recent years, majority of Malaysians find themselves having to utilise the maximal loan-to-value ratio of 90% with longest loan tenure possible to reduce their equated monthly instalment (EMI). Allianz Life chief executive officer Joseph Gross explained that MRTA and MLTA are commonly pegged to a home loan to cover the loan in the event of the death or TPD of the insured. “The key difference is MRTA’s sum assured reduces over time while MLTA’s sum assured remains constant throughout the term of the policy,” he said. Some home loans like flexi home loans allow one to make withdrawals but it will reduce MRTA’s sum over time. When the amount owed to the bank is higher than the MRTA’s sum, the MRTA will not be able to fully cover the home loan. “While MLTA comes at a higher premium, the flat sum meant the borrower and the family will not have the same concern,” he added. Mohd Adib Bin Mohd Yazid Prudential Wealth Planner said since the bank is MRTA's beneficiary, it is unable to protect a borrower’s family in totality. “MLTA is more personal and often protect your next of kin. If anything happens, the family claims the insurance money. This money can be used to settle the outstanding loan amount since MLTA benefit is fixed sum assured,” he said. Great Eastern Life Assurance (M)
Bhd group agency manager Bon Sze Shean said borrowers should take note that if they decide to cancel MRTA before maturity date, the cash amount that the company will pay you is much less than the total amount premium you have paid. He added that MLTA is a long-term financial commitment. It is not advisable to hold this plan for a short period of time in view of the high initial costs. “If you find the fund that you have chosen is no longer appropriate, you have the flexibility to switch fund,” he added. Bon also opined that borrowers should avoid surrendering their MLTA because if designed properly, the cash value can break even. “Treat it as savings and use the cash value to pay off your loan (early settlement) in the later years and save on interest,” he said. When asked if MRTAs and MLTAs are absolutely necessary, Jared Lim Loanstreet co-founder suggested that borrowers weigh their risks holistically from an estate planning perspective. “If you are sufficiently covered by a life insurance policy, you can even consider skipping the MRTA or MLTA. But note that your beneficiaries will get lesser if you lose your ability to generate income,” Lim said. He added that borrowers must go through the trouble of making sure their next of kin is aware of their policy and know how to make claims.
Adib said the process of insurance claim is basically the same for MRTA or MLTA. In the event of death, the claimant would need supporting documents such as certified copy of death certificate, copy
of deceased identification card, burial permit, medical report, identity of claimant, proof of claimant relationship with deceased and most importantly, the original policy document. “It is highly important to educate your family on this subject matter,” he said.
“The key difference between MRTA and MLTA is MRTA’s sum assured reduces over time while MLTA’s sum assured remains constant throughout the term of the policy.
MRTA
MLTA
Benefits
Covers outstanding loan owed to the bank in the event of death or TPD.
Payment
Lump Sum
Periodically
Protection
Sum assured reduces over time
Sum assured remains constant
Coverage
Mortgage
• Mortgage • Option of expanding coverage for critical illnesses
Type of Assurance
Term assurance
• Term assurance or • Whole life
Transferability
No
Yes
Cash value
No. Policy expires at the end of the loan tenure
Yes. Policy holders will receive cash value
Nomination
Bank as beneficiary
Anyone
A detailed example of MRTA and MLTA: MRTA
MLTA
Age
25
25
Mortgage Loan (RM)
540,000
540,000
Loan Tenure
30 years
30 years
Interest Rate
4%
4%
Premium (RM)
Lump sum –16,296.00
Annually – 2,554.20 Half-Yearly – 1,302.65 Quarterly – 657.70 Monthly – 223.50
Sum Assured (RM)
540,000; Will decrease periodically and be payable upon: Death or TPD
RM 540,000 plus Additional Sum Assured, or Total Investment Value, whichever is higher
Cash Back (RM) –End of zero sum Tenure Source: Great Eastern Life Assurance (M) Bhd
Cash Back based on return on investment
news
STARPROPERTY.MY WEDNESDAY 02 NOVEMBER 2016
iBilik and Propwall13
By JONATHAN ROBERTS jonathan@propwall.com
YOUR SWEET BORNEAN ESCAPE
I
F you are in dire need of a sweet escape from the hustle and bustle of metropolitan life, a retreat to Kundasang is your answer. A small village-cum-town that lies along the Kundasang Valley, Kundasang is located in the district of Ranau, and a two-hour drive east of Kota Kinabalu, the capital of Sabah. Renowned for its spellbinding landscape, cooling air and vegetable market, it is no wonder this little Bornean town is attracting tourists in droves. Home to predominantly native Orang Dusun and a small Chinese population, shops at Kundasang are mostly run by locals, creating a tight-knit community of rural charm. Obligatory visits should be paid to local hotspots such as Desa Cattle Dairy farm, Kundasang War
Memorial, Kinabalu Park, Kundasang Market, Rose Garden, Poring Hot Spring and Mount Kinabalu Golf Club. The Desa Cattle Dairy farm sits on the foothill of Mount Kinabalu, an ideal destination for family vacation as children can enjoy the simple pleasure of “kampong boy” by feeding calves and goats and learn about the milking process. The breathtaking view of the mountain peaks will leave tourists wishing they could stop time. It is hardly surprising that many see this spot as a perfect venue for taking wedding photography. History buffs should set foot in the tranquil yet solemn Kundasang War Memorial. This garden was established in 1962 by a New Zealander to commemorate the Australians and British prisoners of wars.
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The tales of those who tragically lost their lives in the Sandakan-Ranau marches during World War II will remind you the calamity of war. Boasting more than 5,000 vascular plant species, Kinabalu Park is another must-see attraction as a home to many unique faunas and over 90 species of lowland mammal. Visitors who are in awe of Mount Kinabalu but less interested with the traditional journey atop can opt for other activities such as alpine rock climbing, paragliding, mountain biking, golfing, birding, farm tours or canopy walk. A trip to Kinabalu Park will never be complete without making a pit stop at the Poring Hot Spring. Soaking in the relaxing water is the best way to wash away your sweats and fatigue from all the climbing and trekking. The sulphuric minerals content in the spring with allegedly therapeutic effect to sooth sore muscles and aches can’t hurt either. At the Poring Hot Springs, visitors can also look out for the Poring Orchid Conservation Centre, Poring canopy walkway, Rafflesia flower site, tropical garden and butterfly farm. Visit the agricultural hub of Kundasang Market, a modest row of wooden stalls that stretches along the highway. Local farmers offer a slew fresh fruits, vegetables and flowers that attract bulk buyers from all over Sabah, Sarawak and Brunei. Sabah is calling you. What are you waiting for?
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Check-out short term stays at Kundasang on
www.ibilik. my/short_ term_rentals/ kundasang
1 The famous Kundasang Market. 2 A stunning vista of Mount Kinabalu from the balcony at the top of the Kundasang War Memorial.
Edited by JONATHAN ROBERTS jonathan@propwall.com Assisted by CHRISTOPHER CHAN
LAND TITLE 101 Christopher Chan, associate director and registered estate agent with Hartamas Real Estate Group.
Christopher Chan has written a comprehensive series on Land Title that can be found on Propwall.my. Scan the QR code to read it online.
I
N a recent Propwall REN (real estate negotiator) day held at Menara Star, keynote speaker Christopher Chan spoke on the history of land ownership in this country from PreBritish times to the present; the National Land Code and the indefeasibility of title; tenure of land; Malay Reserve Land; types of titles, categories of land use; extension of leasehold land in Selangor and Kuala Lumpur and the issues in transferring of property from bumiputra to non-bumiputra. The history of land ownership in this country began with customary land tenure where any person who carried out a task of clearing waste land was entitled to occupy it provided he cultivated it and gave one-
tenth of the produce to the State. When the British arrived, they introduced privately executed deeds and later on we adopted the Torrens system of land registration from Australia. The main land law in peninsula Malaysia today is the National Land Code (NLC). Sabah and Sarawak have their own land laws too: Sabah Land Ordinance and the Sarawak Land Code respectively. Enshrined in the Torrens system of land registration is the concept of indefeasibility of title, which means "once an interest is registered, it is good against the whole world". Land can be either one of the following: > Freehold which is held in perpetuity; and
> Leasehold which can be for a term of usually 30, 60 or 99 years. Upon expiration of the lease, there are provisions under the law for the extension of lease. The sale and lease of Malay Reserve Land is strictly restricted to Malay individuals or corporations only. This is governed under the Malay Reservations Enactment (F.M.S. Cap 142) for Federal Territory, Negri Sembilan, Selangor, Perak and Pahang. This was created under the British Colonial Policy in 1913. Titles can be either an individual title (Issue Document of Title) issued under the National Land Code 1965 or Strata Title issued out under the Strata Titles Act 1985. Individual titles are for landed properties
such as houses, land that are commonly not multi storey whereas strata title is commonly issued for multistorey buildings but since 2007 has been extended to even houses in gated and guarded communities. When an individual title is first issued, it is a provisional (or qualified) title. After a final survey has been done, a final title will then be issued. The same title can be under the jurisdiction of Registry of Land Titles ("Registry title") or under the jurisdiction of the Land Office ("Land Office title"). The provisions for the extension of leasehold land in Selangor and Kuala Lumpur can be found in the NLC. For Selangor, the formula for the calculating the premium for the extension
of lease can be found in Selangor Land Rules 2003 and Selangor Quarry Rules 2003. In Kuala Lumpur, it can be found in Federal Territory of Kuala Lumpur Land Rules 1995. When transferring properties from bumiputra to non-bumiputra in the secondary market, the vendor may face challenges in obtaining the approval from the state authorities to do so. This is because the state government is looking after the welfare of the bumiputra community in ensuring that, among other reasons, they are proportionately represented in a particular area.
events
STARPROPERTY.MY WEDNESDAY 02 NOVEMBER 2016
14 forum By CAITLYN NG LI YUIN
liyuin@ocision.com
SHAH ALAM HAS MUCH TO OFFER PKNS collaborated with StarProperty.my to put together an exciting event for the public.
S
INCE its inception in 1964, the Selangor State Development Corporation (PKNS) has built more than 150,000 houses. Their current focus is on the construction of Rumah Selangorku units, particularly for the lower- and middle-income earners. The move to build more affordable homes is in line with the state government’s intention of building 20,000 units of Rumah Selangorku within three years. PKNS recently hosted a 2016 real estate collection, which took place at the PKNS complex from Oct 17 to 23. There were 17 of their choice developments, both residential and commercial, valued at more than RM400mil on display. Some of the residential products which were open for the public to view and own included Opal Residensi and Aquavilla, Seksyen 7, Shah Alam; Anggun 2 and Hijauan Enklaf, Setia Alam; Cassia and Azhara, Antara Gapi; Citrina 3 and Dillenia, Bernam Jaya; Puteri Daffina 2, Kota Puteri; as well as Vega Residensi in Selangor Cyber Valley. As for the commercial units, there were I-Zone at Bandar Sultan Suleiman, I-Zone Zurah at Rasa and Perdana Avenue at Kuang, to name a few. “There were incentives and special rebates available for visitors and potential customers at the exhibition. In addition, we also organised a property forum in conjunction with StarProperty.my to cater to some of the popular topics related to real estate. “Titled ‘Shah Alam transformation: A journey through time’, the talk featured three renowned experts in their respective fields. The combined effort created the right platform to attract more homebuyers, by bringing together quality products and an informative forum,” said PKNS general manager Hajjah Noraida Hj Mohd Yusof. Ho Chin Soon Research chief executive officer Ishmael Ho was the first to speak, on the titular subject of the forum. Infrastructure development is the key to determining good property locations for own stays or investments. Here is where Shah Alam will be benefitting from upcoming megainfrastructures such as the MRT Line 2, LRT Line 3 and High Speed Rail. This goes towards proving that the popularity of Shah Alam is on the rise. According to data from the Department of Statistics Malaysia, it showed that population growth rates have slowed down as we progress towards being a developed nation. However, there are eight districts in peninsular Malaysia that had a growth rate of more than 3%, and one of it was Petaling with 4.09%, which is where the city of Shah Alam is located. The next speaker was MINGS (Malaysian Institute of Geomancy Sciences) vice president Stephen Chin
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with his talk titled ‘How geomancy is practised by different cultures in Malaysia’. He outlined how geomancy is a cultural practice that developed since ancient times, and there is a common thread between the traditions of each culture, allowing geomancy to be applied in the modern world. Whether based on feng shui (Chinese), Vastu Shastra (Indians) or Tajul Mukluk (Malays), each one is influenced by beliefs and superstitions. But what they have in common, is that they all teach one what to do or not to do with the house, in order to maximise good luck upon the occupants. GM Training Academy PLT chief executive officer and founder Miichael Yeoh presented on ‘Managing your mortgage effectively and borrow smartly’. He addressed the current issue of getting the bank’s approval for a house loan, which is getting harder by the day. According to Bank Negara Malaysia, there was only a 47% loan approval rate in 2015. He also shared with the attendees a step-by-step approach in planning and preparing, so that their financial documents will be in order. Banks check on a few main aspects of an individual before approval: personal credit reports (through CTOS and CCRIS) as well as the
Debt Service Ratio (DSR). To be an effective borrower, one also needs to keep a few things in mind, namely making sure to get an experienced banker; ensuring that the right financial documents are prepared before submission, as different banks require different paperwork; read through the documents before signing; and going loan shopping for the best 2 1 The public gathering around the various booths showcasing the real estate collection of PKNS. 2 PKNS general manager Hajjah Noraida Hj Mohd Yusof. 3 The crowd listening attentively to one of speakers at the StarProperty.my property forum.
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deal in the market. “Shah Alam is increasingly drawing people to choose the city as their next home, as there are plenty of amenities within close proximity and infrastructure development taking place in strategic locations. It also helps that the property value in Shah Alam appreciates approximately 20% to 30% per annum,” said Noraida.