StarProperty.my October 2016 by StarProperty

OCT

2016 WEDNESDAY

ADDRESS FINANCING FOR

FIRST-TIME HOMEBUYERS End-financing and loan rejection are main reasons for increasing unsold units in H1 2016. >P02-03

iWajib Group Datuk Chew Yin Kee IJM Land Edward Chong

Redha Penang Datuk Toh Chin Leong

Ekovest Berhad Christopher Yeo

MIEA Erick Kho

INSIDE THIS ISSUE www.starproperty.my

Star Media Group, Prop BU Ernest Towle

PEOPLE MATTER FIRST TO PARAMOUNT CORP

BY USING INNOVATIVE, VIBRANT AND BOLD APPROACHES, PARAMOUNT CORP ADDRESSES PEOPLE’S DEMAND FOR QUALITY HOMES AND EDUCATION. > P10 facebook: starproperty.my

wechat:StarProperty

Mah Sing Group Ho Hon Sang

REAL ESTATE FINDINGS

RESPONSES FROM REHDA MEMBERS IN THE PROPERTY INDUSTRY SURVEY PROVIDE CLEAR INSIGHT INTO THEIR PERCEPTIONS AND INTERACTIONS. > P12 Emag: StarProperty.my (English) / Property Trends (Chinese)

A LUSH HAVEN FOR THE FAMILY

IOI’S 16 SIERRA CREATES SWEET CHILDHOOD MEMORIES WITH UNIQUELY THEMED GARDENS. > P20

cover story

STARPROPERTY.MY WEDNESDAY 05 OCTOBER 2016

02 roundtable By CAITLYN NG LI YUIN

liyuin@ocision.com

OR many people in Malaysia, owning a property seems to be a dream that is just a little out of reach. Now it may seem as though that dream may be harder to achieve, especially among young people, as house prices continue to escalate. According to NAPIC (National Property Information Centre), one telling sign is the declining number of transactions in Q1 2016 compared to Q1 2015. In Q1 2015, the total number of residential properties sold was 59,490 while in Q1 2016, sale dropped by approximately 17% to 49,612. Other worrying trends include the number of new launches, which has also dropped. According to statistics gathered by Real Estate and Housing Developers’ Association Malaysia (Rehda), it went from a total of 9,938 units in H2 2015 to 7,172 units in H1 2016. This challenge will have an even bigger impact on the youths who would like to own their dream home early on in life, what with high interest rates weakening their purchasing power and the financial institutions making the eligibility to obtain loans stricter. “While it may seem like a nearimpossible goal, especially if they have just begun working and have little to no savings, it is still achievable if they have set their mind to obtain a property while they are in their prime years. “There would need to be a change in the lavish lifestyle of young couples and individuals, so that they are able to reduce their current struggle with debts. Instead of a preference to spend on holidays, cars, or the latest gadgets, they should choose to rethink their priorities and conform to a more frugal way of life. “Finally, it is very important for us to educate them early on, that buying a house will be one of the best decisions that they will make in life, as it is a valuable asset for the future,” said Ekovest Bhd project director Christopher Yeo. Other issues that the younger generation may face are loan financing, as well as finding sufficient funds just to pay for the initial deposit of the property. However, the Government has since taken steps to relieve those burdens, in the form of the MyDeposit scheme. “The MyDeposit scheme should continue to be implemented as it is beneficial to first-time homebuyers. The Government should still look into allocating more funding than the current RM200mil, so that they would be able to accept more applicants,” said IJM Land Bhd managing director Edward Chong. Another method that the Government could consider in order to address affordability and financing issues for youths would be to consider allowing the developers to come up with innovative financing packages. “While waiting for completion of construction on their new homes, firsttime homebuyers may have decided to rent a place nearby. In this case, they would not only need to pay for the rental, but also service the interest of the mortgage at the same time. “How this works is that for the first couple of years that the property is under construction, allow for the utilisation of interest into the capital of the house, so

ADDRESSING FINANCING NEEDS FOR

FIRST-TIME HOMEBUYERS

End-financing and loan rejection are main reasons for increasing unsold units in H1 2016.

1 IJM Land Bhd managing director Edward Chong.

ultimately, the homebuyers only need to service one item,” he added. While the Government would like to increase homeownership in Malaysia, Rehda Penang chairman Datuk Toh Chin Leong opined that property prices will not be coming down any time soon. With the cost of construction, land prices and compliance cost all increasing, the feasibility of drastically reducing house prices is very low.

2 Ekovest Bhd project director Christopher Yeo. 3 Rehda Penang chairman Datuk Toh Chin Leong.

This has led to an increase in the number of unsold units. Backed by data from NAPIC’s Property Market Status Report, there was a total of 9,733 unsold units in 2014, whereas in 2015, there was a total of 11,316 unsold units. “The developer interestbearing scheme (DIBS) should be brought back for first-time homebuyers, which allows purchasers to 3

pay a downpayment of between 5% and 10%, with the rest upon completion of the property. “People do not understand that the bank is actually charging a higher interest rate for lower-end housing compared to those in the higher-end. This is because the banks tend to look upon purchasers of lower-end properties as a ‘high risk group’, which I think is unfair,” said Toh. Toh also suggested that the banks consider a staggered repayment plan for first-time homebuyers, which is particularly beneficial for the youths and young couples. “For example, a younger buyer who has just started working manages to obtain a loan to purchase the property of his choice. If the average monthly repayment is more than RM1,000, he may struggle to come up with adequate funds to do so. “The banks can instead allow for a lower amount in the first year, such as RM400 per month, and then gradually increase the amount each year until he finishes paying the full amount. “The younger generation would have just graduated and started their first job, so we should give them some time to progress in their career and build up their wealth as the years go by, thus making it easier for them to own their own home,” elaborated Toh. These specialists were among a panel of experts present during the roundtable discussion organised by StarProperty. my on ‘Overcoming Malaysia’s Property Industry Challenges at Budget 2017’.

“People do not understand that the bank is actually charging a higher interest rate for lower-end housing compared to those in the higher-end. –Toh

cover story

STARPROPERTY.MY WEDNESDAY 05 OCTOBER 2016

By NURUL ASMUI MD AZMI

roundtable03

asmui@ocision.com

N Sept 1, StarProperty.my had organised a roundtable discussion on "Overcoming Malaysia’s Property Industry Challenges at Budget 2017" at Menara Star, Petaling Jaya. Six real estate experts attended the seminar to discuss and contribute their opinions on the property market issues that matter. The participants included Malaysia Institute of Estate Agents (MIEA) president Erick Kho, Rehda Penang chairman Datuk Toh Chin Leong, Ekovest Bhd project director Christopher Yeo, IJM Land Bhd managing director Edward Chong, IWajib Property director Datuk Chew Yin Keen and Mah Sing Group chief executive officer cum executive director Ho Hon Sang. Moderated by StarProperty Sdn Bhd acting assistant general manager Ernest Towle, the roundtable discussion kicked off with the main question, “What are the financing challenges and how should they be addressed in the upcoming Budget 2017?” All of them at the roundtable discussion agree that many homebuyers, especially first timers, are struggling to buy a house due to so many factors. One of the major challenges that most of the homebuyers are facing is end-financing and loan rejection. According to Erick, household debt has gone up tremendously. Therefore, it is currently a very challenging time to purchase a property. “I am aware that for the primary market, there are a great deal of loan rejections. The official loan rejection rate disclosed by the Bank Negara is at 60%. Government should look into various areas to solve this issue as there are still many purchasers out there that are determined to buy, but they are unable to get financing. Chew stated that there are three main components that can help reduce cost of borrowings so that homebuyers can finance their property purchase. “First, in order to increase the ability to borrow, the interest rate on housing loans must be decreased. A special rate that is equivalent to or less

PROPERTY MARKET ROUNDTABLE DISCUSSION BY

STARPROPERTY.MY A SUCCESS Participants at the roundtable focused their discussion on the challenges of the property market.

1 Malaysia Institute of Estate Agents (MIEA) president Erick Kho. 2 IWajib Property director Datuk Chew Yin Keen. 3 Mah Sing Group chief executive officer cum executive director Ho Hon Sang.

3 1

than the Overnight Policy Rate (OPR) rate could possibly be considered as it will inevitably improve the debt service ratio (DSR). “Second, the charge of stamp duty on memorandum of transfers (MOT) and loan documentation should be exempted to reduce the cost of acquisition. This will, thus, increase the ability to purchase. “Third, GST relief should be granted by the government to reduce to cost of house. When the cost of GST is relieved from all of the items that

are used to build houses, the price of the house will decrease. Therefore, the group of people who have the ability to secure housing loans will increase,” explained Chew. Meanwhile, Ho confirmed that increased loan ratios will allow more people to purchase. “Restriction on the financing provided by banks has made it hard for many people to obtain loans to buy a property. Necessary steps must be taken to improve the situation. If not, the property industry will suffer,” said Ho. “If loan ratio is increased, it will be easier for homebuyers to buy and the margin will also be better. Homebuyers no longer have to come up with a lot of cash to buy a property,” he added. Amongst the other issues that have been discussed at the roundtable were property-related regulations, comparison between primary and secondary market, affordable houses, and how government should step in to help the property industry. The StarProperty.my roundtable has received excellent feedbacks and useful responses from the line of property experts. This affirmed the effort of StarProperty.my to provide a platform to combine a range of perceptions and ideas on how to solve the issues in the property market.

feature

04retirement By MAK KUM SHI

STARPROPERTY.MY WEDNESDAY 05 OCTOBER 2016

homes

makks@thestar.com.my

N years to come, senior citizens will make up a bigger segment of the Malaysian population. In view of this development, retirement homes and innovative financing schemes for senior citizens are expected to emerge in the future. Many married couples in Asia, including in Malaysia, are significantly underestimating the length of time they will spend in retirement, and as a result, are likely not accumulating sufficient retirement savings. Manulife Asset Management Services Bhd chief investment officer Jason Chong said, “Married couples in Malaysia face average joint retirement of 27.4 years, which represent a generally ‘higher’ degree of longevity risk relative to their peers across Asia. This is partly because Malaysians retire from the workforce relatively early.” Manulife Asset Management president for international asset management Michael Dommermuth said, “We feel that marital status in particular is too often ignored in retirement planning. The vast majority of Malaysians continue to enter retirement as part of a married couple and thus should factor in the likelihood of one partner, usually the wife due to longer life expectancy for women, outliving the other.” The potential that couples will outlive their retirement savings would increase if they do not factor in the potentially significantly longer life expectancy of their partners. This situation is made worse by the fact that expenses are not cut in half by the death of a spouse as cohabitation delivers economies of scale for living costs.

EMERGENCE OF

RETIREMENT HOMES

Ageing demographics, financing for senior citizens and retirement homes are expected to make an impact in the future for the property market.

According to Manulife Asset Management’s “Live long and prosper?” report, Malaysians attach far less importance to retirement as a financial objective. This attitude is influenced by the fact that a high proportion of Malaysians expect to receive financial support from their adult children during their retirement years. To address these challenges, policymakers are already taking steps to reduce longevity risk for their citizens. While Malaysia’s official retirement age was raised to 60 from 55 in 2013, responsibility for retirement income security is increasingly shifting to individuals. Effective deployment wealth would reduce the chances of outliving retirement savings by delivering the potential for returns in excess of bank deposit rates.

Addressing demographic challenges

Paramount Corp Bhd group chief executive officer Jeffrey Chew said, “One of the things we are looking in the next five to 10 years is the demographic shift in terms of the birth rate and population growth that is actually slowing down as a country. However, the growth rate in terms of the more aged population in terms of over65 age group is growing very fast at 5% per annum in Malaysia. “This group is growing bigger every year. Retirement homes are something we are exploring,

Estimates and projections for Malaysians' life expectancy at birth by sex

Estimates and projections for Malaysia's total population by broad age group

Source: United Nations, Department of Economic and Social Affairs, Population Division (2015). World Population Prospects (The 2015 Revision)

AGE

While Malaysia’s official retirement age was raised to 60 from 55 in 2013, responsibility for retirement income security is increasingly shifting to individuals.

and we are among the pioneers that are going in a very big way. This is something we are targeting in terms of innovation.” Chew added that it is crucial to provide innovative financial packages to enable more people to afford and live in retirement homes. This is due to the challenge of people aged 60 onwards without an income being able to obtain financing to buy a retirement home.

Innovative financing for senior citizens

However, there are developments that are addressing these financing challenges for senior citizens in the region. According to Manulife Asset Management’s “Asset rich, income poor?” report, about 60% of Singapore’s total household wealth is tied up in property-related investments. Foreign works residing in Singapore have, to some extent, propped up the value of real estate and the nation’s highly constrained developable land area adds a speculative element to housing, rendering real estate relatively expensive. Singapore’s government recognises that much of the population’s wealth is illiquid and has been attempting to help citizens monetise their real estate holdings by encouraging the development of a reverse mortgage market. However, it remains to be seen whether Singaporeans have embraced this new retirement funding technique.

developments

06green By JONATHAN ROBERTS

STARPROPERTY.MY WEDNESDAY 05 OCTOBER 2016

building

jonathan@propwall.com

BUILDING A GREENER TOMORROW

Special Token

INGAPORE: In the quest to reduce emission intensity by 36% from the levels marked in 2005, and to reach peak emission by 2030, Singapore Green Building Week (SGBW) 2016 held early September aimed to engage the whole community in the fight against climate change. The week-long exhibition at Marina Bay Sands Expo & Convention Centre featured three anchor events, namely International Green Building Conference (IGBC) 2016, Build Eco Xpo (BEX) Asia 2016 and Mostra Convegno Expocomfort (MCE) ASIA 2016. Organised by the Building and Construction Authority of Singapore (BCA) in collaboration with Singapore Green Building Council (SGBC) and Reed Exhibitions, SGBW managed to attract over 26,000 participants from 50 countries in a total of 23 events.

International Green Building Conference (IGBC) 2016 In conjunction with its theme “Build Green: The Next Decade”, IGBC endeavoured to inspire new thinking, collaborations and partnership as well as catalyse novel and holistic solutions to climate change. IGBC 2016 brought together global and regional stakeholders to accelerate transformative evolution in the green building movement in hopes of shaping a sustainable future. World Green Building Council (WGBC) board of director Tai Lee Siang reckoned that the awareness for green building has been raised significantly, but the adoption rate is still slow. He said the idea of retrofitting existing buildings might not sit well with building owners due to the cost. Many developers are still sceptical about green buildings, as it might cost more to develop or retrofit, but the return of investment (ROI) in the long run would be worth it. “In the past, green buildings cost 10 to 20% more than standard buildings.

However, due to greater demand for green technology, this additional costs have reduced significantly to between 0 and 3% depending on the type of technologies employed. As green technologies continue to evolve, there are building owners who are willing to invest in cutting-edge technologies to try to achieve net zero carbon status and they see this as a long-term investment,” Tai added. A report titled “The Business Case for Green Building: A Review of the Costs and Benefits for Developers, Investors and Occupants” examined the possibility of attaching a financial value to the cost and benefits of green buildings. The findings pointed out that green buildings have been shown to save money through reduced energy, water consumption, long-term operations and maintenance costs. The energy savings alone typically exceeded any cost premiums associated with their design and construction within a reasonable payback period.

Minister Lawrence Wong at the ebm-papst booth at Mostra Convegno Expocomfort (MCE) Asia to find out more about smart fan technology.

1 World Green Building Council (WGBC) board of director Tai Lee Siang. 2 Reed Exhibitions Business Development Director and BEX and MCE Asia Project Director Louise Chua.

Build Eco Xpo (BEX) Asia 2016 and Mostra Convegno Expocomfort (MCE) ASIA 2016 BEX and MCE held their ninth and second editions respectively, which comprised 450 exhibiting companies representing 27 countries and 12,000 visitors. BEX Asia exhibitors educated visitors about the ways in which green building and innovative technologies can drive the industry beyond the current sustainable agenda. The exhibition saw a convergence of green building experts, policy-makers, academics and built environment practitioners who discussed new ideas to building a sustainable future. MCE Asia provided a platform for exhibitors to showcase the best and latest energy-efficient innovations from around the globe. This was mainly targeted at building professionals within the residential, commercial, industrial, institutional and hospitality sectors. Reed Exhibitions project and business development director Louise Chua believes the bottom-up approach of BEX and MCE is what sets them apart. “We encourage initiatives of all forms, even efforts that may appear to others as frivolous. For example, we could start with switching off the electricity in the office whenever we go out for a meeting. “Even for these events, we went paperless. We no longer give out papers for registration. These are little initiatives that can open our eyes and challenge us

to new thinking and ideas,” Chua said. She also stressed that the green concept goes beyond just buildings. It covers a wide spectrum of our everyday lives, from our waters, infrastructures to transportations. She urged students from a young age to participate and engage in the green campaign, as the long-term benefits will serve their interests. Malaysians were the second biggest attendees for the events after Singaporeans. However, BEX and MCE hope to attract more manufacturers from Malaysia to exhibit at their events. “Every year we have Malaysian exhibitors but the number has not been very big yet. The strong Singapore currency poses a challenge for many of the medium-size Malaysian manufacturers,” she added. Exhibiting companies include Kansai Paint, Ebm-papst, Greenology, Maxxsean Distributors, Sto SEA, Pu Hua International, FSH Coating Sdn Bhd and HSS Heat Shield Solution. Apart from the regional exhibitors, there were also representatives from China, Taiwan, South Korea, Japan and Italy of which many were first timers. Exhibitors from Germany include DEOS Control Systems GmbH, EURA Drives Europe GmbH and Eurotec GmbH. Meanwhile, Italian Pavilion consists of BLUPURA Srl, ERRECOM, Emmecom Srl, Impresind, Brandoni S.p.A., and Fumasi by Gimap Srl.

events

STARPROPERTY.MY WEDNESDAY 05 OCTOBER 2016

By CAITLYN NG LI YUIN

forum09

liyuin@ocision.com

FINANCING AND LOCATION DEVELOPMENTS

The recently concluded StarProperty.my forum addressed the challenges of how financial standing and location relate to the feasibility of obtaining a property.

N life, there will come a few times when one will be faced with having to make major financial decisions. When first-time homebuyers (especially the younger generation) are asked about their concerns regarding purchasing a property, it is thus no surprise that many of them cite financing as one of the main challenges. During a recent StarProperty. my forum held at Pullman Putrajaya Lakeside Hotel, a trio of professionals from the property industry were present to offer up their expert advice on how financial standing and location relate to the feasibility of obtaining properties. There were many topics covered during tax and GST consultant Dr Choong Kwai Fatt’s talk, titled ‘How does a reduction in OPR affect the Malaysian property market’. He first explained that the overnight policy rate (OPR) was about the interest rate determine by Bank Negara Malaysia at which, a bank lends to or receives from, an investment from another bank. As of now, the OPR is at 3%, but it may continue to drop in the months to come to 2.5%. With this, one finds that the commercial bank rate has dropped by 0.2%, whereas the base lending rate (BLR) has dropped by 0.2%. Choong also provided the audience with two examples of banks with the lowest BLR, Maybank at 6.65% and Public Bank at 6.72%. Among the impacts that this will have on the economic environment are that developers will have a lessened cost of doing business, as they have already done the adjustment in pricing; homebuyers will be able to borrow and purchase properties of a higher value by gearing in order to gain a higher capital appreciation in the future and investors will be able to see the share price index going up. Choong went on to clarify that there are two categories of properties which can be purchased: residential and commercial. While commercial properties – hotel suites, retail and office units – may seem attractive, there is a lifespan to their appeal since there are many choices in the market. With the fickle nature of humans, there is no guarantee that commercial properties will always have a steady demand. Thus, residential property is still the way to go as people will always need a roof over their heads, creating an endless demand and unlimited shelf life. “When you buy a property, it does not matter whether you like it or not. Currently, it is a buyer market and what you should be considering is whether the property can be sold off or not in the future, unless you are buying for your

own stay,” said Choong. “First-time homebuyers are encouraged to buy condominium units that have three bedrooms and two car park lots, as these are the ones that will fetch a good rental price, but little capital appreciation. In addition, it is advisable to buy units in a condominium that does not integrate retail below since the increased foot traffic might pose security risks,” he added. The next speaker was Ho Chin Soon Research CEO Ishmael Ho, with his talk titled ‘Growth and development of Putrajaya: Now and then’. While many people may perceive the city of Putrajaya as merely be federal administrative centre of Malaysia, it is actually one of the best integrated city that is currently enjoying tremendous growth and rapid development. Ho showed attendees a chart plotting the GDP by state in order to determine the most productive state in Malaysia. This signifies that there are plenty of work opportunities and that the pay was better than most other states, thereby attracting more people to choose to make a living there. “The areas of Selangor and KL were in the top two positions, with approximately RM227bil and RM152bil respectively in 2014. The growth percentage over the course of four years (2010 - 2014) for these two states was 27.78% and 34.79% respectively, which is much higher than other states. To keep up with the growing demand for properties in those areas, developers had to come up with various properties that span a diverse range of prices in order to cater to people from all income brackets. For example, according to NAPIC (National Property Information Centre), in Q1 2016, Kuala Lumpur had a total of 2,732 residential units transacted with 5.7% of those falling in the RM100,000 and below bracket, and 18.4% of those falling in the RM1mil and above bracket. On the other hand, Selangor had a total of 12,121 residential units transacted with 14.5% of those falling in the RM100,000 and below bracket, and 7% of those falling in the RM1mil and above bracket. In comparison, Putrajaya had a total of 42 residential units transacted with 40.5% of those falling in the RM100,001 – RM250,000 bracket, and 40.5% of those falling in the RM1mil and above bracket. Putrajaya is proving to be a city to look out for, as it is located next to one of the districts in peninsular Malaysia (Sepang) that had a population growth rate of more than 3% per annum from 2000 to 2010. “This just goes to show that the

“If you do not have much savings yet, don’t worry as that is not so important, but you do need to provide proof that you have a stable monthly income. In addition, the property that you are considering needs to fall within the right price range.

–Chong

Keen to participate in our next forum? Visit http://www. starproperty.my/ forum for the our latest forum events.

population is moving down south very strongly. Ho Chin Soon Research has created a map with a circle showing the first tier 20km of Greater KL. Within this circle, which Putrajaya is also located, the demand for houses can be found,” he enthused. The final speaker was Loanstreet Sdn Bhd head of business development Leo Chong, with his talk titled ‘How can mass market leverage your profile in mortgage’. Many first-time homebuyers are intimidated by the amount of factors to be taken into consideration before they even start to apply. With banks’ rejection rates fluctuating on a yearly basis – from approximately 25% in 2012 to approximately 50% in 2015 – attendees were educated on the proper preparations to make before submitting their loan requests. They were also shown the standards that banks have in order to evaluate every potential customer’s financial profile besides the income. First off, for Malaysian citizens, they are eligible to get up to a 90% loan from the bank for their first two properties, while a third property is only eligible for a 70% loan. Some of the mandatory documents required by the banks include a copy of the IC (identification card), payslips and latest EPF statement. “The debt service ratio (DSR) is also important to consider, where after the calculation of all the commitments that one has, if the DSR is not more than 70% then almost all the banks will be able to approve the loan application,” said Chong. Some of the factors which would determine an individual’s loan eligibility

include the DSR, risk profile, value of the property, the maximum loan-tovalue (LTV) ratio, age, presence of joint applicant and past relationships with banks if any. In order to maintain a good credit scoring, an individual should practise these good habits: utilising one’s credit card not more than 70%; prompt payment behaviour; not have many unsecured loans such as credit cards and personal loans; have a clean record in CTOS; and maintaining a stable employment status that gives income consistency. “The younger generation needs to make sure that they are well-prepared before they proceed to apply for a home loan. Make sure that you have worked for at least one year and possess a degree certification. “If you do not have much savings yet, don’t worry as that is not so important, but you do need to provide proof that you have a stable monthly income. In addition, the property that you are considering needs to fall within the right price range. “As an example of a successful applicant, if a first-time homebuyer was earning RM3,500 per month, he can comfortably afford a property that costs RM300,000 and below. This means that he only needs to fork out slightly more than RM1,000 per month in repayments. “Banks have a guideline to follow, and if the youths were to follow the advice stated, their DSR would be not more than 50%, which means that they will have a good chance of getting a loan,” he reiterated.

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feature

10 corporate By MAK KUM SHI

makks@thestar.com.my

PEOPLE COME FIRS PARAMOUNT COR

By using innovative, vibrant and bold approaches, Paramount Corp quality homes and education.

OMES and education form important and necessary components in the cycle of life for most people. Therefore, it is only befitting that they should only have the best homes and education they can afford to build better lives for themselves and their loved ones. Paramount Corp Bhd group chief executive officer Jeffrey Chew said that Paramount’s vision is to be an innovative market leader in businesses that benefit society. It has two core businesses, namely Paramount Property and Paramount Education. The rationale behind Paramount’s involvement in such businesses is that property and education are probably the two largest investments that individuals will make in their lifetime, and what they get from them shapes their role and contribution to a nation. An asset that acts as a shelter over their heads is a long-term investment that appreciates in value. This investment is quite different from buying a car, which may be quite important, but is a depreciating asset. Therefore, buying an asset that shelters them starts off their ability to establish their financial stability. When they reach a stage in life where they have children, they would ensure a secured future for their children through education. As a property developer, Paramount contributes to society by being a people’s developer, building high quality properties that can meet the evolving needs of residents, investors and businesses. It also creates enduring addresses that stand the test of time, while ensuring buyers and investors enjoy strong returns and consistent value. Chew said, “As an education services provider, we shape characters and build careers, first ensuring that we provide students with education beyond the academic, making them to be responsible, contributing global citizens, and then by equipping them with real skills to meet real world needs, thereby meeting the talent and human resource needs of our country.” Chew commented, “We provide education, all the way from Sri KDU private international schools and national schools, to tertiary education, located in Penang and Kuala Lumpur.” Chew said that Paramount Education, through KDU University College, had introduced several new education concepts that have greatly benefited the nation, and which education providers have emulated.

They created the first purposebuilt, private tertiary education campus in Malaysia and introduced the twinning model, where students can get a high-quality international degree by completing some or all of the programmes in Malaysia at a relatively lower cost. When the next generation needs to start to build their family and invest in a shelter with a roof over their heads, the cycle repeats itself. Therefore, shelters and education are enduring investments with strong values for everyone. These values shape the philosophy, vision and mission that drive Paramount Corp forward.

“We shape characters and build careers, first ensuring that we provide students with education beyond the academic, making them to be responsible, contributing global citizens. – Chew

Innovation, energy and vibrancy

Compared to when Paramount Corp started over 40 years ago in Sungai Petani, at present times, people’s values and cultures have changed. To adapt to changing times, the management encourages innovation, vibrancy, energy and boldness within the

organisation. “As far as the customers and public are concerned, they also want to see what we stand for, in relation to what we talk about, in terms of the mission. That’s where people see us as a company that is trusted and respected, but we need to inject different elements into the organisation. “We want to inject vibrancy and energy into our organisation as well, so that people will know that when you work for the company or when you buy our products, you see that our products will add an exciting vibe to the community and neighbourhoods,” Chew said.

STARPROPERTY.MY WEDNESDAY 05 OCTOBER 2016

ST FOR RP

p fulfils people’s demand for

1 KDU University College's flagship campus within the Paramount Utropolis integrated development. 2 Sejati Residences offers spacious, expansive living that caters to three-generational families. 3 Paramount Corporation Berhad group chief executive officer Jeffrey Chew.

Paramount also wants its employees to be bolder and brave in terms of the things they do and say in the market, and being very much engaged with the media and the public through digital and social media. “As an employer, we focus a lot on talent and skills development seriously, and we look after the growth and wellbeing of our employees. We have put in place long-term strategies to effectively identify, attract and retain talent within the group,” Chew added. Citing the creation of the university metropolis at Glenmarie as an example of innovation, the 21-acre development was split equally into the KDU University College and a mixed development, with residential, retail mall and hotel elements. “By leveraging on the university for the neighbourhood to become a proper

metropolis, when there isn’t enough accommodation for people from the university, they can always stay in our residence. When they need to go for internship, they can work in the hotel. When they actually finished their education and are looking for a place to stay, they may continue to stay in the university metropolis because that is a place that is more vibrant. We are trying to portray that as the Paramount brand.” Other innovations from Paramount include an energy-saving show house for Utropolis, as this concerns affordability issues where people are buying smaller units rather than big homes. Citing changing lifestyles where people would rather live in apartments instead of houses, there are disadvantages in living in small units

because of the lack of space. However, Paramount has been creating space-saving furniture and dualkey access homes, resulting in homes that can accommodate quite a number of people, including parents, in-laws and guests. The organisation also takes a different approach in its engagement with the public. Unlike other developers who prohibit photography in their show houses, Paramount engages with the public by encouraging them to take photos of their show houses and post them on social media. By taking this approach, regardless of purchasing interest, potential buyers and the public can have an enjoyable experience when exposed to innovative features projected by the developer. “So in a way, we are trying to become a more creative and innovative company in the things that we do.”

The People’s Developer

In line with their philosophy in keeping the buyer and user at the forefront of everything that Paramount Property does, they ensure that they adhere to the highest standards of quality that even other developers respect. Offering buyers a wide range of products at different locations with different price points, Paramount Property has integrated townships in Kemuning Utama, Shah Alam;

“We are a people’s developer because we focus on practical designs that can meet the evolving needs of homeowners and businesses.

Greenwoods Salak Perdana in Sepang, Selangor; as well as Bandar Laguna Merbok and Bukit Banyan in Sungai Petani, Kedah. Aside from this, the developer has luxury homes in Sejati Residences, Cyberjaya, medium-cost homes in Sungai Petani, high-rises and Small Office Home Offices (Soho), as well as industrial, commercial and retail properties. “We invest and reinvest in our communities, ensuring we create enduring addresses that stand the test of time and result in our buyers and investors enjoying good and steady returns. We are a people’s developer because we focus on practical designs that can meet the evolving needs of homeowners and businesses. We think about what the user will need, and design accordingly,” concluded Chew.

events

STARPROPERTY.MY WEDNESDAY 05 OCTOBER 2016

By CAITLYN NG LI YUIN

forum 11

liyuin@ocision.com

FINANCING AND LOCATION DEVELOPMENTS

The recently concluded StarProperty.my forum addressed the challenges of how finance and location relate to the feasibility of obtaining a property.

N life, there will come a few times when one will be faced with having to make major financial decisions. When first-time homebuyers (especially the younger generation) are asked about their concerns regarding purchasing a property, it is thus no surprise that many of them cite financing as one of the main challenges. During a recent StarProperty.my forum held at Pullman Putrajaya Lakeside Hotel, a trio of professionals from the property industry were present to offer up their expert advice on how finance and location relate to the feasibility of obtaining properties. There were plenty of topics covered during tax and GST consultant Dr Choong Kwai Fatt’s talk, titled ‘How does a reduction in OPR affect the Malaysian property market’. He first explained that the overnight policy rate (OPR) was about the interest rate determine by Bank Negara Malaysia at which, a bank lends to or receives from, an investment from another bank. As of now, the OPR is at 3%, but it may continue to drop in the months to come to 2.5%. With this, one finds that the commercial bank rate has dropped by 0.2%, whereas the base lending rate (BLR) has dropped by 0.2%. Choong also provided the audience with two examples of banks with the lowest BLR, Maybank at 6.65% and Public Bank at 6.72%. Among the impacts that this will have on the economic environment, is that developers will have a lessened cost of doing business, as they have already done the adjustment in pricing; homebuyers will be able to borrow and purchase properties of a higher value by gearing in order to gain a higher capital appreciation in the future; investors will be able to see the share price index going up. Choong went on to clarify that there are two categories of properties which can be purchased: residential and commercial. While commercial properties – hotel suites, retail, and office units – may seem attractive, there is a lifespan to its appeal since there are many choices in the market. With the fickle nature of humans, there is no guarantee that commercial properties will always have a steady demand. Thus residential is still the way to go as people will always need a roof over their heads, creating an endless demand and unlimited shelf life. “When you buy a property, it does not matter whether you like it or not. Currently, it is a buyer market and what you should be considering is whether the property can be sold off or not in the future, unless you are buying for your

own stay,” said Choong. “First-time homebuyers are encouraged to buy condominium units that have three bedrooms and two car park lots, these are the ones that will fetch a good rental price, but little capital appreciation. In addition, it is advisable to buy units in a condominium that does not integrate retail below since the increased foot traffic might pose security risks,” he added. The next speaker was Ho Chin Soon Research CEO Ishmael Ho, with his talk titled ‘Growth and development of Putrajaya: Now and then’. While many people may perceive the city of Putrajaya to merely be the federal administrative centre of Malaysia, it is actually one of the best integrated districts that is currently enjoying tremendous growth and rapid development. Ho showed attendees a chart plotting the GDP by state, in order to determine the most productive state in Malaysia. This signifies that there are plenty of work opportunities and that the pay was better than most, thereby attracting more people to choose to make a living there. “The areas of Selangor and KL were in the top two positions, with approximately RM227bil and RM152bil respectively in the year 2014. The growth percentage over the course of four years (2010 - 2014) for these two states was 27.78% and 34.79% respectively, which is much higher than other states. This presents us with a good idea of what is currently happening economically, and a good indicator for the future as Selangor and KL progresses in the years to come,” stated Ho. To keep up with the growing demand for properties in those areas, developers had to come up with various properties that span a diverse range of prices in order to cater to people from all income brackets. For example, according to NAPIC (National Property Information Centre), in Q1 2016, Kuala Lumpur had a total of 2,732 residential units transacted with 5.7% of those falling in the RM100,000 and below bracket, and 18.4% of those falling in the RM1mil and above bracket. On the other hand, Selangor had a total of 12,121 residential units transacted with 14.5% of those falling in the RM100,000 and below bracket, and 7% of those falling in the RM1mil and above bracket. In comparison, Putrajaya had a total of 42 residential units transacted with 40.5% of those falling in the RM100,001 – RM250,000 bracket, and 40.5% of those falling in the RM1mil and above bracket. Putrajaya is proving to be a city to look out for, as it is located next to one of the

districts in Peninsular Malaysia (Sepang) that had a population growth rate of more than 3% per annum from 2000 to 2010. “This just goes to show that the population is moving down south very strongly. Ho Chin Soon Research has created a map with a circle showing the first tier 20km of Greater KL. Within this circle, which Putrajaya is also located, the demand for houses can be found,” he enthused. The final speaker was Loanstreet Sdn Bhd head of business development Leo Chong, with his talk titled ‘How can mass market leverage your profile in mortgage’. Many first-time homebuyers are intimidated by the amount of factors to be taken into consideration before they even start to apply. With banks’ rejection rates fluctuating on a yearly basis — from approximately 25% in 2012 to approximately 50% in 2015 — attendees were educated on what were the proper preparations to make before submitting their loan requests. They were also shown the standards that banks have in order to evaluate every potential customer’s financial profile, instead of just the income. First off, for Malaysian citizens, they are eligible to get up to a 90% loan from the bank for their first two properties, while a third property is only eligible for a 70% loan. Some of the mandatory documents required by the banks include a copy of the IC (identification card), payslips and latest EPF. “The debt service ratio (DSR) is also important to consider, where after the calculation of all the commitments that one has, if the DSR is not more than 70% then almost all the banks will be able to

approve the loan application,” said Chong. Some of the factors which would determine an individual’s loan eligibility include the DSR, risk profile, value of the property, the maximum loan-tovalue (LTV) ratio, age, presence of joint applicant, and past relationships with banks if any. In order to maintain a good credit scoring, an individual should practise these good habits: utilising one’s credit card not more than 70%; prompt payment behaviour; not have many unsecured loans such as credit cards and personal loans; have a clean record in CTOS; and maintaining a stable employment status that gives income consistency. “The younger generation needs to make sure that they are well-prepared before they proceed to apply for a home loan. Make sure that you have worked for at least one year and possess a degree certification. “If you do not have much savings yet, don’t worry as that is not so important, but you do need to provide proof that you have a stable monthly income. In addition, the property that you are eyeing needs to fall within the right price range. “For an example of a successful applicant, if a first-time homebuyer was earning RM3,500 per month, they can comfortably afford a property that costs RM300,000 and below. This ensures that they only need to fork out slightly more than RM1,000 per month in repayments. Banks have a guideline to follow, and if the youths were to follow the advice above properly, their DSR would be not more than 50%, which means that they will have a good chance of being approved for the loan,” he reiterated.

Experience now!

StarProperty.my e-Mag apps The greatest interactive experience in Malaysian real estate! View stunning high-resolution videos and pictures. Get news-breaking stories on real estate. All these and more on the mobile-friendly StarProperty.my e-mags, now in English and Chinese language. Download them now! For the best reading experience, e-mags are best viewed on tablets.

HOW TO DOWNLOAD

Visit Google Play or Apple Store

Organisers:

Readers will also be able to tap on thumbnails to view more photos, and even enjoy extended photo areas by swiping on selected photos.

In the search bar, type “StarProperty.my e-Mag” for the English version or “Property Trends / 潮楼产业” for the Chinese version

Open the app and refer to the ‘User Guide’ for instructions on how to navigate the e-mag

Radio Partner:

StarProperty Sdn Bhd (708369-V) A wholly-owned subsidiary of Star Media Group Berhad (10894-D) [Formerly known as Star Publications (Malaysia) Berhad]

feature

12 property

market

By NURUL ASMUI MD AZMI asmui@ocision.com Assisted by JACKY CHENG jackycheng@thestar.com.my

REAL ESTATE FINDINGS Responses from Rehda members in the property industry survey provide clear insight into their perceptions and interactions.

URVEYS on the property industry play a crucial role in real estate market analysis, as the results help to explain, describe and predict patterns of demand, supply, as well as prices of properties. To evaluate the property market performance for the first half of 2016 and the market outlook for the second half of 2016, Real Estate And Housing Developer’s Association Malaysia (Rehda) conducted its Property Industry Survey 1H 2016 from January to June 2016.

Respondent profile

157

Rehda members across peninsular Malaysia.

Rehda members = Property Development Companies

Buyer profile The survey saw a marked change in buyers’ profile where firsttime buyers have decreased by 13% from 2H 2015.

Affordable housing The number of respondents with affordable housing in 1H 2016 decreased imperceptibly from last year. Top

FIVE

challenges that respondents

faced in affordable housing provision are: 1. Not feasible due to high land price (30%) 2. Increased overall cost of doing business (26%) 3. Requires cross-subsidies from higher end properties (19%) 4. Not consistent with surrounding properties (13%) 5. Lack of incentive due to low density allowable (10%)

Launches

Residential selling price

The number of units launched and the number of units sold in 1H 2016 have been reduced by about 28% and 46%, respectively, from 2H 2015. Due to the decline in numbers, the sales performance in 1H 2016 decreased from 52% (2H 2015) to 39%, which essentially means that many respondents (developers) have changed their business strategies by lessening property developments and holding back property projects launched.

The property selling price below RM200,000 has increased by 8% in 1H 2016, supporting the fact that more people were looking for low-cost houses. Nevertheless, the affordable range maintained between RM200,001 and RM1mil.

82% of property buyers in 1H 2016 were local, whereas the other 18% were foreign buyers that mostly purchased their property in Penang, Kuala Lumpur and Selangor. Out of all the buyers of 1H 2016, most of them were found to be upgraders.

The purpose of purchase in 1H 2016 was mainly for self dwelling, which means property buyers were mostly non-investors and/or property speculators.

Types and prices Although the launches of residential projects reduced from last year, a similar trend could be seen from 1H 2015 to 1H 2016, in which developers were more confident in building residential developments. According to IJM Land Bhd managing director Edward Chong Sin Kiat,

developers were deferring development projects, particularly for commercial properties due to the overall market sentiment in the commercial sector remaining cautious. The number of commercial launches has also reduced in light of the slowdown in the local property market, the weakening ringgit, softer consumer and business sentiment and tight financing conditions. In the current

economic climate, most companies have adopted a “wait-and-see” approach and focused on continuity of the business rather than expansion. For 1H 2016, twoto three-storey terraces were the first option that most buyers looked for. Additionally, as the number of people searching and opting for economical housing was increasing, flat and low cost houses have made its entry into the top three.

STARPROPERTY.MY WEDNESDAY 05 OCTOBER 2016

Unsold units

Cooling measures

Since Developer Interest Bearing Scheme (DIBS) was removed during Budget 2014 and banks tightening their lending policies, the number of unsold units have been more than 50% since 1H 2014.

Conclusion

137 out of 157 respondents (87%)

claimed that they experienced property sales slowdown in 1H 2016. Top

FOUR cooling measures

impacting the property industry, according to rank: 1. 70% loan-to-value ratio 2. Responsible lending guidelines 3. Maximum loan tenure cap (35 years) 4. High real property gain tax Mortgage Reduction Planning (MRP) Advisory Services chartered financial consultant Franciss Chin stated that since the introduction of 70% loan margin for third and subsequent property purchase, many homebuyers and several investors were struggling to raise enough money to cover the 30% down payment or initial deposit. Thus, increasing the number of unsold units.

Price range of unsold units

Future launches The respondents that do not have launches were 10% more than those who planned to launch in 2H 2016.

Respondents see a similar trend for unsold units between RM500,001 and RM2.5mil. Top

THREE

reasons for unsold units: 1. End financing and loan rejection 2. Low demand and interest 3. Unreleased bumiputra quota

Outlook The percentage of respondents that are very pessimistic and pessimistic for H2 2016 have shifted towards the neutral and optimistic sides for H1 2017. Optimistic respondents have increased by 10%.

Compared to the anticipated sales performance for 1H 2016, the percentage of respondents anticipating sales performance below 50% in 2H 2016 reduced from 80% to 68%. This means the percentage of respondents anticipating sales performance above 50% in 2H 2016 has increased to 32% from 20% in 1H 2016.

The results from the survey demonstrated the market performance during the first half of 2016, and the challenges faced by property developers. The survey has also gauged the present as well as the future market sentiments among the respondents. The main issue that most developers were facing was financing. 69% of the respondents stated that end-financing issue remains a major problem for them. The top

FIVE financing issues:

1. Credit history / CTOSS / CRISS 2. Ineligibility of buyers income 3. Lower margin of financing 4. Bank requesting more documents 5. Limited quota for low-cost / affordable housing Although most of the developers agreed that property sales were experiencing slowdown, the level of positive sentiment showed an improvement for the next six months. The improved level of optimism in real estate industry outlook for 2H 2016 and H1 2017, compared to 1H 2016, signifies that respondents are becoming more confident of the property market, especially next year. "As seen on the survey report of the residential selling price 1H 2016, majority of the developers have launched residential developments that are between RM200,000 and RM1mil. With a total of 79% unit launched under these price tags, this significant percentage shows that property buyers have a handful of options to select their preferred property. If you are looking to buy a home, this is the time to look for one," said StarProperty Sdn Bhd head of sales, Property Business Jacky Cheng.

Rehda Budget 2017 Wish List 1. Facilitate Home Acquisition • To design financial schemes and packages specially to assist buyers at the early stage of purchase and facilitate their acquisition costs with smaller initial outlay. • To extend MyDeposit Scheme with higher allocation to benefit firsttime homebuyers.

2. Revision of the bumiputra Quota Policy • To standardise bumiputra quota and discount rate across all states. • To standardise and make bumiputra quota release mechanism transparent across all states.

3. Reduce Cost of Doing Business • To review and decrease / abolish unnecessary charges or requirements so that the savings can be passed on to house buyers. • To reduce processing time for approvals as longer time means higher holding cost.

4. Increase Affordable Housing Supply • To relieve developers from the role of providing low- cost housing and revert the role back to the Government. • To increase supply of affordable housing and to control the distribution and resale of subsidised housing so that the benefits are accorded to only deserving parties.

5. Encourage Adoption of IBS

• To continue providing the IBS (Industrialised Building System) promotional fund with higher allocation and ensure that Government’s and its agencies’ projects adopt the IBS system and components. • To provide funds to SME to create a ready supply of IBS products while special incentives be given for accelerated adoption of IBS.

6. GST Relief Order • To give GST Relief Order for residential properties with a selling price of below RM500,000 to mitigate the increased cost for affordable housing and to provide ample opportunity for the target group to purchase properties at prices comparable to that of the pre-GST regime.

feature

14 investment and development By MAK KUM SHI

STARPROPERTY.MY WEDNESDAY 05 OCTOBER 2016

makks@thestar.com.my

WAY OF THE MALAYSIAN

REAL ESTATE INDUSTRY

HAT are the factors that can contribute to the success of property investment and property development? The answer to this would be very complex, as it would require mastery of the entire spectrum of real estate development, the acquisition of practical experience and theoretical knowledge, and collaboration with professionals with different skill sets. In Malaysian Real Estate Industry’s Value Creation Strategies, former Malaysian REIT Managers Association honorary secretary James Tee shares his perspectives of the core competencies needed to succeed and excel in the local property industry. The contents of the book were categorised into 12 chapters, such as the real estate industry in Malaysia, property development, cost management, risk management, branding and marketing, and green buildings. Case studies of successful developments for highrise residential property, townships, offices, shopping malls, hotels and convention centres were also cited. Tee shared that branding and marketing at the company level and also at the property development project level are of paramount

By VIKNESH ASHLEY

importance to attract buyers. A developer’s reputation is dependent on its past track record and supported by good future prospects. Strong flagship developments create a positive image and brand name for the company. A prominent personality as the face of the company can also provide solid branding. On the surface, the book appears to be better suited to property developers and real estate industry practitioners, as it contains a substantial amount of information related to property development. However, the book has been written, edited and published in an academically structured manner that makes the subject on real estate practical and easy to understand. Therefore, this book is also suited to inform investors on a wide spectrum of issues and opportunities related to real estate development. By understanding the intricacies of real estate development, real estate investors should be able to make better and informed investment decisions, as they evaluate the integrity and reliability of property developers in the Malaysian property market. This book is definitely a recommended reading resource for investors and practitioners in the real estate industry.

vikneshashley@thestar.com.my

STARPROPERTY.MY FAIR 2016 AT PUBLIKA MALL

Bringing communities at Northern Kuala Lumpur together with homes and trees.

HE StarProperty.my Fair 2016, held in Publika Mall in Kuala Lumpur was a success, as it saw over 5000 property passionate visitors as well as an estimated RM5mil in property sales despite the soft property market sentiment. Publika Mall is an upscale neighborhood shopping mall located in Solaris Dutamas, Sri Hartamas, catering to those living in close by areas such as Segambut and even in Mont’ Kiara, a residential and commercial destination, thousands of Malaysians and expatriates from across the globe call home. The fair had taken place within the mall was illuminated by sunrays during the day, providing a vibrant atmosphere throughout the fair, which took place from Sept 29 to Oct 2, 2016. The fair was supported by premium partners, Ekovest Bhd and IJM Land, as well as other renowned developers among the public, which included Agile PJD Development, Eupe Bangsar South Development (JV) Sdn Bhd, Mah Sing Group Bhd, Tropicana Corp Bhd and See Hoy Chan. Some of the property highlights that were popular amongst fair visitors included M City by Mah Sing Group Bhd, EkoCheras located along Jalan Cheras and Ekotitiwangsa along

Jalan Pahang by premium partner Ekovest Bhd. The Colony, a joint-venture development between Roxy Pacific Holdings Ltd and Macly Group, was presented to prospective buyers at the fair. Other developments that were presented at the fair included Novum in Bangsar South (Eupe), The Potpourri in Ara Damansara (See Hoy Chan), The Colony in Kuala Lumpur (Macly Group and Roxy Pacific), The Residences at Jalan Ampang and Tropicana Gardens in Kota Damansara (Tropicana Corp Bhd). Free Tree Society Kuala Lumpur, Creative Robotics Education and Frozen Trees Gift & Premium also took part in this year’s StarProperty.my Publika Fair. Fair visitors that completed survey forms at the StarProperty.my booth were given a chance to redeem a free plant upon completion of the survey forms on a first-come-first-served basis, as well as a RM5 rebate voucher for an Air Plant Terrarium Workshop during the fair by Frozen Trees Gift and Premium. A total of 30 plants were given out each day at the fair. For more information on future property fairs that would be held at locations near you, visit fair.starproperty.my right away!

developments

STARPROPERTY.MY WEDNESDAY 05 OCTOBER 2016

16 high-rise By VIKNESH ASHLEY

vikneshashley@thestar.com.my

TREASURED OPAL RESIDENSI Opal Residensi by PKNS is strategically located at Shah Alam, offering a variety of allures for different buyer markets.

PALS are gems that give the impression of capturing the magnificence of nature. These gems can be found in many different shades, which include flashes of fire and lighting, the individual colours of the rainbow, softer shades of the skies, as well as the deeper tones of deep blue seas. Perbadanan Kemajuan Negeri Selangor (PKNS), Selangor’s premier property developer, has named its newly completed residential offering in Section 7 Shah Alam as Opal Residensi, reflecting the varied offerings that this property has for those considering a modern yet convenient home to suit individual lifestyles. Opal Residensi stands proudly at 13 levels tall, spread across two blocks. The development holds a total of 138 units of modern apartments units that are presented in intermediate, semi-detached villas and penthouse configurations, ranging from 1,227 sq ft to 2,486 sq ft. Opal Residensi is a leasehold development that has been developed on a 3.4-acre expanse. This development holds many modern conveniences for its

residents. Some of the select facilities that have been added into this residence include a swimming pool and changing rooms, gym and sauna, a multipurpose hall, kindergarten, laundry and multipurpose court. As for security, the apartment features card access to its entrance. Section 7 is one of the largest and most developed sections in Shah Alam, comprising residential, commercial, educational, entertainment and industrial developments. The vicinity offers residents easy access to public amenities and township facilities. The township is near to popular institutes of higher learning such as UiTM and UNISEL, as well as shopping centres such as Tesco Section 13, Plaza Alam Sentral, Kompleks PKNS Shah Alam, SACC Mall, Aeon Bukit Raja, Jakel and Bintang Hypermarket. I-City is also located within the vicinity and offer various attractions such as trick art museum & wax museum. Additionally, to the delight of fast food lovers, this township also has KFC and Pizza Hut outlets. Public transport users can travel to

the locale via bus, taxi, as well as the Padang Jawa KTM commuter station, while those driving can easily access Opal via excellent highways. Some of these highways include New Klang Valley Expressway (NKVE), North South Expressway (NSE), Federal Highway, Lebuhraya Damansara – Puchong Highway (LDP), New Guthrie Corridor Expressway and the Sprint Expressway. Opal Residensi is fully completed with a selling price from RM601,500. For more information on this development, visit www.pkns-property.com.

Development project name

Opal Residensi Keen for more information on real estate and this development? Visit http://www. starproperty.my/ forum to learn more.

Advertising Permit no. and date 9062-89/052017/0426(P) Developers Licence no. and date 9062-89/052017/0426(L)

Development concept Modern Apartment Location Shah Alam, Section 7, Selangor Property type High End Apartment Land title Residential Tenure: Leasehold Development size: 3.4 acres Total units: 138 units Built-up area 1,227 sq ft – 2,486 sq ft Total designs 4 Number of bedrooms: 3 to 4 Number of bathrooms 2 to 4 Price range RM601,500 – RM1,236,500 Estimated date of completion Completed (December 2016)

developments

18 high-rise

STARPROPERTY.MY WEDNESDAY 05 OCTOBER 2016

THE PRESENT MATTERS

By EDITOR OF STARPROPERTY.MY editor@starproperty.my

55VS OFFERS A WISE INVESTMENT IN

LONDON’S NEW DESTINATION OF CHOICE V

ICTORIA is fast becoming one of the capital’s premium destinations, with a £4bil (approximately RM22bil) regeneration programme across SW1 providing cutting-edge, high-end residential, office and retail floor space. However, this major investment is long overdue. For too long, Victoria has not lived up to its political and royal heritage, overshadowed by its neighbouring districts. Its central location, destination as a major London travel hub and rich history provide the perfect opportunity for those that wish to reap the rewards of London’s ever-booming property investment market. Prime Central London’s residential property prices grew by 76% between 2009 and 2015 – an average of just under 9% growth a year – as the city continues to provide attractive investment prospects for astute buyers both from within the United Kingdom and further afield. Victoria itself has outperformed all other central London regions, with property prices rising by 88% since 2009 , with the wider City of Westminster also predicted to outperform wider London in terms of both economic output and job creation over the next five years. Simply put, Victoria is the star residential investment performer in a city that is widely regarded as the most important city for the world’s

ultra-wealthy. With thousands of new office workers expected in the region after all developments are completed, the provision of retail and residential space is vital to deliver the vibrant, thriving hub that London so desperately needs. Across the district, over three million sq ft of prime retail, office and residential space is being developed, creating a self-sustaining community for wealthy Londoners looking to enjoy quality living, dining and shopping. Phillips de Pury, the international auction house, is surrounded by a host of global, leading fashion brands such as Tom Ford, Dolce & Gabanna, Marc Newson, Burberry and Jimmy Choo. With Mayfair, St James’, Sloane Square and Knightsbridge all a short stroll away, the area’s collective shopping offer is set to rival that of Regent Street to the East. Glamorous shopping is matched by luxurious dining, with a feast of gastronomy’s finest outlets set to open in the coming years. Michelin-star chef Jason Atherton is at the head of the dining wave headed to the City of Westminster, with his much-anticipated NOVA restaurant due to open next year. Victoria’s remarkable cultural offering is, perhaps, unsurprising given its location, with Buckingham Palace, Westminster Abbey and Victoria Palace Theatre providing a historic heart to an increasingly contemporary destination.

“55VS represents a wonderful opportunity to take advantage of the region’s prospects by purchasing a world-class residential unit.

1 1 Living space. 2 55VS' exterior.

When combined with its close proximity to The Thames and abundance of green space – home to over 4.2 million sq ft of royal parks – the district is evolving into one of the most well rounded affluent areas in London, with all features of luxury living mere minutes away. Yet, increasingly, many Londoners yearn for breaks from the bustle of city life, with the soon-to-be-revamped Victoria station and its nearly 700 overground trains each day offering short trips to some of Britain’s most prized retreats, from the celebrated Sussex Downs to the seaside charm of Brighton. Gatwick Airport is also just 30 minutes’ away via the Gatwick Express, opening up Victoria to 177 cities across the world. Closer to home, three underground lines (Victoria, Circle and District) already intersect in the district, providing easy access to London’s other famous quarters. With £700mil (approximately RM3.7bil) being invested into an alreadybustling development, the new Victoria Station will equip the region with a cutting-edge transport hub. With a host of leading companies such as Microsoft, American Express and E.ON all joining the likes of Google, Boeing and John Lewis in the area, Victoria is set to prosper from an influx of major corporations keen to snap up the new world-class office space on offer. The ever-increasing trend of providing these businesses’ employees with conveniently located living space that matches the quality of their working environment has led to a surge of residential developments in Victoria. At the heart of this ‘Victoriarenaissance’ is 55VS – a high-end residential development conceptualised by Alchemi Group in collaboration with multi-award-winning architects Stiff + Trevillion. This impressive building, located on Victoria Street and less than half a mile from the Houses of Parliament, brings New York-style loft living to one of London’s most prestigious addresses. The development features Danish

charcoal-fired brick cladding and handcrafted terracotta glazed tiles, offsetting luxurious marble and dark timber flooring. Stunning bronzed balustrades in the 7m-high reception lead to the 57 spacious one-, two-, threeand four-bedroom apartments and penthouses, each offering up to 3,100 sq ft of living space. Featuring nearly three-metrehigh ceilings and five-metre-wide floor-to-ceiling windows that provide breathtaking views across London’s skyline, the generous open plan spaces look to bring together the legacy of the area with the contemporary Manhattan loft design styled by Studio L, London. Reflecting the amount of rich greenery in the neighbourhood, 55VS has striking outdoor spaces for its new residents. Private balconies and terraces are supplemented by two additional communal spaces, including an 8th floor Sky Garden, providing views from Battersea Power Station to Southwark Cathedral, further drawing on the Manhattan roof top vision with London’s skyline serving as the backdrop. Foxtons new homes & investments director Mark Goodeve-Docker commented, “Victoria is widely acknowledged as London’s top residential investment market, with outstanding returns on offer for savvy buyers with plenty of capital. The wider regeneration of the area will create a truly distinct destination, seamlessly combining all aspects of modern life within a spectacular environment. 55VS represents a wonderful opportunity to take advantage of the region’s prospects by purchasing a world-class residential unit.” Just 18 of the 57 apartments are still available in 55VS, meaning the window for taking a slice of central London’s new premium heart is constantly narrowing. With apartments starting at £1mil (RM5.29mil) and available for immediate occupation, interested parties should contact: sales@55vs.co.uk or visit the website www.55vs.co.uk

developments

STARPROPERTY.MY WEDNESDAY 05 OCTOBER 2016

20 township By LEE YAN LI

lylee@thestar.com.my

A LUSH HAVEN FOR THE FAMILY IOI’s 16 Sierra creates sweet childhood memories with uniquely themed gardens.

RAFTED to nurture the lifestyle of “Play-Learn-Bond”, the 535-acre 16 Sierra mixed development generates acclaim for the 16 gardens of different themes. The family-friendly development at Puchong South by IOI Properties Group Bhd provides greenery that is enhanced by exercise stations and customised educational play sets to give children a chance to explore the outdoors surrounded by interconnected walkways. The unique blend of Algebra Garden, Maze Garden, Rain Forest Garden, TicTac-Toe Garden, Spring Garden, Chimes Garden and others forms the unique concept of 16 Sierra as nature’s classroom, which secured the Family-Friendly Honours Award in The StarProperty.my Awards 2016. At the centre of the beautiful setting is the 7.2-acre Central Park which has terraced seating for outdoor celebrations and events. The exclusively crafted Amigo Clubhouse is equipped with glass gymnasium, yoga deck, badminton court, Amigo's café, a 40-m lap pool to the wading pool with the "Tipping Bucket", creating a relaxing experience for the residents. The gated and guarded community features an access card system, digital entrance lock, home alarm system, perimeter fencing, CCTV monitoring and 24-hour guard patrol. Families can enjoy the facilities such as kid zone, basketball court, futsal court, grand lawn and tai chi lawn. 16 Sierra is located in close proximity to the mature neighbourhood of Putrajaya and Cyberjaya, and is easily accessible via the SKVE, LDP, MEX and Silk highway. It is near to Aeon Equine Park, Pasar Borong Selangor and Giant hypermarket and eight-km away from IOI City Mall. There are a number of educational institutions within the 15km radius, including Rafflesia International and Private Schools situated within 16 Sierra, ELC International School at Cyberjaya, Australian International School at The Mines, Taylor's International School at Puchong, SMK Cyberjaya and Multimedia University. Nearby amenities and facilities also include Hospital Serdang, SJK (C) Bukit Serdang at Seri Kembangan and the upcoming SJK (C) Union at Cyberjaya. An eco-friendly residence where healthy living meets the convenience of a modern township, 16 Sierra exemplifies the perfect way to embrace the familyfriendly lifestyle within nature.

Name of development

N'Dira

Type of development Townhouse Developer Lush Development Sdn Bhd Location Sierra 12@16 Sierra Gross Built-up From 2,099 sq ft Lot size From 27' x 73' Land area (Total) 19.6 acres Total number of residential serviced suites Total: 336 units Number of units type and size range 3 bedrooms with attached bathrooms.

2 1 Sierra 6's three-storey superlink houses offer spacious homes for the residents. 2 16 Sierra: Amigo Clubhouse. 3 Artist's impression of the facade of N'Dira.

For more info, visit http://bit.ly/ioi_NDira

N’Dira@ Sierra 12

N'Dira townhouse is the second townhouse development located in the Sierra 12 and boasts a collection of distinct homes within a gated community. Launched in June 2015, the lowdensity development consists of 336 units offering three bedrooms with attached bathrooms. Each unit is designed with a semi-detached house appearance with separate driveways to accommodate two cars. The large window allows for ample natural lighting for the residents to fully enjoy the dynamic skyline and building silhouette created by different roof orientations. The high ceiling and large windows in the living, dining and bedrooms and windows in all bathrooms are designed to enhance natural lighting and ventilation. Residents of the upper units will also enjoy a sky terrace for extra outdoor activity area, while the lower units enjoy a clear view of and direct access

to the back garden. To provide more green communal space for the residents, there is also a linear garden right at the doorstep dotted with decorative trees.

Sierra 6: Distinctive lifestyle in a private enclave Carving out capacious living spaces, Sierra 6 offers 104 units of twostorey superlink houses and 113 units of three-storey superlink houses launched in August 2014 and May 2015 respectively. It is a green neighbourhood decorated with sculptured embellishments. The whimsical and quirky characters add a charming rhythm to the beautiful scenery of the oasis garden. It’s a green life for the residents of Sierra 6, which provides solar hot water system, rainwater harvesting tank and lush landscape with pathways leading to the precinct’s Tic-Tac-Toe-themed garden. Like N’Dira, the energy-efficient design, includes high ceiling and large windows in the living, dining and bedrooms, as well as windows in all bathrooms to enhance natural lighting and ventilation. Besides a north-south orientation of the houses which symbolises good feng shui, the houses are also furnished with branded and quality fittings and finishes including Grohe and Toto. For more information, visit http:// bit.ly/ioi_NDira.

Tenure Leasehold (99 years) Price From RM709,920* Completion date March 2018

Name of development

Sierra 6

Type of development 2 & 3-storey superlink houses Developer Lush Development Sdn Bhd Location Sierra 6@16 Sierra 3-storey superlink houses • 113 units • Lot size from 27’ x 73’ • Built-up size from 3,526 sq ft • 5 bedrooms • 5 bathrooms + 1 powder room • Expected completion date: April 2017 • From RM1,403,136* 2-storey superlink houses • 104 units • Lot size from 27’ x 73’ • Built-up size from 2,798 sq ft • 4 bedrooms • 4 bathrooms + 1 powder room • Expected completion date: Dec 2017 • From RM1,103,220* Land area (Total) 19.6 acres Tenure Leasehold (99 years) Accessibility • SKVE highway • LDP highway • MEX highway • Silk highway *Terms and Condition apply