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MAY 2016 WEDNESDAY
TRANSFORMATION OF KLANG VALLEY’S PREMIER CITY by IJM Land
INSIDE THIS ISSUE www.starproperty.my
Infrastructure, population and economic growth are catalysts. > P02-03
MODERATING PROPERTY MARKET IN 2015 RAISING THE BAR FOR I-CITY A SOFTENING PROPERTY MARKET, BLEAK HOUSEHOLD SENTIMENTS, DWINDLING BUSINESS CONFIDENCE, COOLING MEASURES, DROP IN TOURIST ARRIVALS AND VOLATILE COMMODITY PRICES HAD IMPACTED VARIOUS PROPERTY SUB-SECTORS. > P14-15 www.facebook.com/starproperty.my
I-BHD PLANS MORE REAL ESTATE AND TOURISM ATTRACTIONS TO FURTHER ENHANCE THE CITY OF DIGITAL LIGHTS. > P10
DEVELOPER WITH HEART
IJM LAND EXTENDS HELPING HAND TO BUYERS. > P05
STARPROPERTY.MY WEDNESDAY 4 MAY 2016
02
COVER STORY
PETALING JAYA’S METAMORPHOSIS An attractive place in the Klang Valley to live, work, study and play.
By MAK KUM SHI
makks@thestar.com.my
T
HE evolution of Petaling Jaya from a township to a leading city over a period of half a century has been impressive. The city is now undergoing a rejuvenation that will bring its development to the next level. IJM Corp Bhd CEO and managing director Datuk Soam Heng Choon shared that Petaling Jaya had originally started off in the 1950s as a satellite township for Kuala Lumpur, as the capital city was getting overpopulated. As the congestion in Kuala Lumpur became more critical, Petaling Jaya naturally benefited with businesses starting to set up offices and factories outside of Kuala Lumpur. With the population growing and businesses expanding happening robustly, infrastructure developments and amenities soon followed with highways, rail transit systems, buses, schools, colleges, universities, shopping malls, hotels and entertainment centres being built rapidly during the same period. Thriven Global Bhd group managing director Ghazie Yeoh Abdullah stated that the main attraction of Petaling Jaya is it has everything required to be an attractive place to live, work, study and play. In addition, it provides the freedom of space, lush greenery and ease of mobility. Lots of major companies are moving their operations from Kuala Lumpur City Centre to the suburbs of Petaling Jaya. This has led to various areas of Petaling Jaya being thriving centres and yet decentralised from one another. This allows for free movement, which at the end, spurs economic movements. Every different area allows for different economic activities, such as trading, food and beverage, services, operations and logistics.
Next phase of growth
The very first townships in Petaling Jaya, towards Petaling Jaya South (also known as PJS), from Section 8 to PJ Old Town, had the first settlements. As development progressed, PJ North, on the other side of the Federal Highway, was developed. Soam commented that inward migration for people seeking employment opportunities, especially those from other states in Malaysia, started the population boom in Petaling Jaya, due to its proximity to the capital. It was a more economical alternative than staying in the capital, as well as a
more conducive environment for younger couples to bring up families. With the growth in population, businesses and industries also started to thrive and prosper. Some of the industrial areas are now located on prime real estate. Regeneration is in the midst of taking shape. A SCland spokesperson said that Petaling Jaya enjoys the success of building multi-racial communities that drive its population growth. It is common to find many multi-generation families with family members who live near to each other. Petaling Jaya's address is perceived to carry some premium in social status, due to it being home to many high and highmiddle income communities. The purchasing power of its large middle and above-average income populace provides resilience to the local economy and fuels economic growth. It has fashioned itself as a melting pot for studying youths, working adults and also retirees, offering facilities and conveniences to all demographics. It also sees a constant increase in immigrant numbers, typically comprising young adults who move into the Klang Valley to pursue their studies or careers and elect the township as their base. A large number of Kuala Lumpur’s workforce reside and commute from Petaling Jaya. Growth in business and job opportunities in Kuala Lumpur attract large numbers of those emigrating from other parts of the country each year. This contributes to the population growth in Petaling Jaya. These drivers of population growth further propel economic growth, providing a strong market and demand for new property development zones in Petaling Jaya.
Premier city of the Klang Valley
For a city to thrive, it has to be accessible, convenient and equipped with the necessary facilities for its residents. SCland shared that the convergence of major highways in Petaling Jaya underscores its status as the premier city in the Klang Valley, outside of Kuala Lumpur. Such highways open up new areas for development and bring in both permanent and transcient population. These investments are necessary in order to alleviate traffic congestion and provide a solution to Petaling Jaya’s high rates of increase in population and traffic volume. In addition, these new transport options will equip Petaling Jaya’s labour
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1 IJM Corp Bhd CEO and managing director Datuk Soam Heng Choon.
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2 Thriven Global Bhd group managing director Ghazie Yeoh Abdullah.
force with greater geographical mobility, allowing workers to seek job opportunities over a larger area. A more significant pool of human resource also promotes efficiency and competition, which in turn translates into big improvements for businesses and companies situated within that reach. A well-planned network of highways sets the foundation for efficient logistics that is critical for manufacturing activities and delivery of services, in moving either goods or human capital. Hence, improving transportation infrastructure has a direct correlation to increased economic activities. Consequently, the sum of these factors will result in greater demand for Petaling Jaya properties for residential, commercial or industrial use. Property prices will no doubt continue
3 Mah Sing Group Berhad group managing director Tan Seri Leong Hoy Kum. 4 An aerial view of PJ Midtown fronting Jalan Kemajuan. 5 Icon City Phase 1 – Residential towers, SoVo, Gourmet Street, Central Park, 30 Jewels and MSC Tower nearing completion. 6 Night view of Lumi Tropicana. 7 Emporis at Kota Damansara, Petaling Jaya.
“With the growth in population, businesses and industries also started to thrive and prosper. Some of the industrial areas are now located on prime real estate. Regeneration is already in the midst of taking shape. – Datuk Soam Heng Choon
to appreciate and as land becomes increasingly scarce, development of neighbouring districts and zones will accelerate. A beneficiary of massive infrastructure development initiatives taken by Majlis Bandaraya Petaling Jaya (MBPJ) is SCland’s Emporis development, which is located at the heart of Kota Damansara and has a gross development value of RM1bil. It fronts Persiaran Surian, where there are three MRT stations in advanced stages of construction. It also has direct access to the NKVE through the Kota Damansara interchange. Widening works are being carried out on Persiaran Surian. A new underpass is being constructed along Sunway Damansara. Emporis will also be easily accessible through the proposed elevated Damansara – Shah Alam (Dash) highway, which brings about would connect Shah Alam with the west side of Petaling Jaya. “We are fortunate for all these factors provide big advantages to our buyers and great potential for value appreciation,” SCland said. A Gamuda spokesperson shared that
STARPROPERTY.MY WEDNESDAY 4 MAY 2016
03COVER STORY Prices of residential properties in Petaling Jaya
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its Highpark suite would have the added advantage of having higher chances for sale in the secondary market because of the mixed market in Petaling Jaya. Due to land scarcity, new developments would be mostly high-rise types. Mah Sing Group Berhad group managing director Tan Sri Datuk Seri Leong Hoy Kum commented that the numerous improvements being made to the public transport infrastructure in Petaling Jaya, including the planned Mass Rapid Transit (MRT) lines, will boost accessibility within the area. The public traffic infrastructure in Petaling Jaya was developed to cater to the ever-increasing population. The Kelana Jaya Light Rail Transit line has five stations within Petaling Jaya. Other forms of public transportation include the Rapid KL buses. The highways that are within close proximity to Petaling Jaya, such as the Federal Highway, DamansaraPuchong Expressway (LDP), Duta-Ulu Klang Expressway (Duke), Shah Alam Expressway (Kesas) and North Klang Valley Expressway (NKVE), allow those living outside Petaling Jaya to enter and
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exit the city. This provides the option for people to work or set up businesses within Petaling Jaya but can still live outside the city. The issue with having so many outlets for transport is the traffic congestion it will cause but there are already steps being undertaken to manage it. “Icon City is strategically located at the crossroads of LDP and Federal Highway. It also provides easy access to other major highway networks such as NKVE, Elite, NPE and Kesas,” said Leong. “For Mah Sing, we have taken the initiative with Icon City’s traffic dispersal system. The first vehicular ramp of this system was completed in early this year. It will help ease the traffic flow within the area,” he added. Upon completion of the overall traffic dispersal system with multiple interchanges, it is set to benefit 700,000 people in the surrounding area. Menara Star 2, which is owned by Star Media Group Berhad, is also a beneficiary of the transformation that is taking place in Petaling Jaya. Located at Section 13, it will be at the heart of the neighbourhood that is
Type
Location
Average Average Land Area Floor (sq m) Area (sq m)
2015 Price Range (RM/unit)
Average Price Change (%)
1S-Terrace
SS 2
143
112
625,000 - 650,000
6.3
1S-Terrace
SS 3
160
104
650,000 - 750,000
5.8
1S-Terrace
SS 4
150
85
600,000 - 650,000
5.0
1S-Terrace
SS 5
149
88
590,000 - 650,000
Stable
1S-Terrace
Seksyen 8
145
75
410,000 - 460,000
3.8
1S-Terrace
Seksyen 10
125
93
540,000 - 675,000
6.6
1S-Terrace
Seksyen 14
151
84
490,000 - 650,000
6.3
1S-Terrace
Seksyen 17
153
91
666,000 - 680,000
4.9
1S-Terrace
Seksyen 18
154
73
400,000 - 460,000
ND
1S-Terrace
Seksyen 20
159
123
480,000 - 710,000
4.5
1S-Terrace
Seksyen 21
130
97
630,000 - 690,000
9.3
1S-Terrace
Seksyen 22
174
134
560,000 - 650,000
5.6
1S-Terrace
SS 26
121
72
575,000 - 580,000
Stable
1S-Terrace
Seksyen 51A 151
70
415,000 - 490,000
4.7
2S-Terrace
SS 1
130
130
770,000
2.7
2S-Terrace
SS 2
158
176
900,000 - 1,530,000
3.3
2S-Terrace
SS 3
147
165
750,000 - 788,000
11.4
2S-Terrace
SS 4
168
186
850,000 - 998,000
5.2
2S-Terrace
SS 5
208
174
1,000,000
8.1
2S-Terrace
SS 7
130
140
693,000 - 750,000
3.1
2S-Terrace
Seksyen 14
153
160
660,000 - 780,000
Stable
2S-Terrace
Seksyen 17
147
158
750,000 - 965,000
7.4
2S-Terrace
Seksyen 19
143
178
860,000
4.9
2S-Terrace
SS 20
152
172
980,000 - 1,250,000
9.2
2S-Terrace
SS 21
153
161
950,000 - 1,180,000
6.2
2S-Terrace
SS 23
155
159
860,000 - 1,280,000
7.5
2S-Terrace
SS 24
153
179
880,000 - 1,200,000
4.1
2S-Terrace
SS 25
153
163
900,000 - 980,000
ND
2S-Terrace
SS 25
150
166
870,000 - 950,000
3.6
2S-Terrace
SS 26
133
156
880,000 - 980,000
7.5
2S-SD
SS 3
315
241
1,500,000 - 2,200,000 11.8
2S-SD
SS 5
419
318
1,665,000 - 2,350,000 5.6
2S-SD
SS 7
461
279
1,350,000 - 1,800,000 Stable
2S-SD
Seksyen 17
413
251
2,300,000 - 2,580,000 15.1
Condo
Seksyen 5
-
169
840,000 - 860,000
4.5
Condo
Seksyen 16
-
105
693,000 - 765,000
6.2
Condo
Seksyen 22
-
93
500,000 - 560,000
8.2
Source: Ministry of Finance’s Valuation and Property Services Department’s Property Market Report 2015
evolving from a light industrial area to a major business district with a wide range of mixed developments. The diversity of developments in the area promises to transform the neighbourhood into a centre for services, commerce, retail, arts, entertainment, dining and residences. Major developments in this up-andcoming district include IOI Properties and Sime Darby Brunsfield’s PJ Midtown, Tetap Tiara’s Jaya One, Inspiration Group’s Centrestage, Island Circle’s Pacific Star and Fraser Group’s Trilight Residences. A 14-storey Grade A office tower with four basement levels, Menara Star 2 is a major component of the Pacific Star development and is designed to comply with MSC status and Green Building Index (GBI) certification requirements.
Its features include 100% backup power supply, fibre-optic backbone infrastructure, an impressive double volume grand lobby and secure turnstile system with key card access to designated floors. It has 6+1 high-speed lifts with intelligent lift control system, designated levels with raised access flooring, stateof-the-art auditorium and 900 dedicated parking bays. Corporate floor plates range from 8,600 sq ft to 40,350 sq ft. Jones Lang Wootton (JLW) is the marketing agent and building manager for the development, which is expected to be completed by end-Q3 2016. With these developments taking place in Petaling Jaya, it is clear that the city, its economy and populace will thrive in years to come.
04
FEATURED DEVELOPMENT
STARPROPERTY.MY WEDNESDAY 4 MAY 2016
MORE UPCOMING PROJECTS DESPITE SOFT MARKET Housing developments provide ample opportunities for investors and homebuyers.
By LEE YAN LI
lylee@thestar.com.my
I
T has been challenging time for both purchasers and developers. Bank Negara Malaysia (BNM) recently said there was a “supply mismatch” between buyers’ and developers’ expectation of house prices. According to BNM, houses priced up to RM165,060 would be affordable to Malaysians with an average median income of approximately RM5,000. For developers, affordable housing units meant properties priced below RM500,000. This has resulted in a situation in which many homebuyers faced difficulties in securing a mortgage, which prompted the developers to roll out more programmes and products that could meet the market’s demand. IJM Land managing director Edward Chong said its Free Stay@No Pay campaign is aimed to address the public’s concern on their ability to pay the instalment in uncertain economic times. The programme offers an instalment-free scheme up to 12 months with a 0% interest instalment scheme for up to 36 months. IJM’s ongoing and upcoming projects include Waterside Residence at Penang, Bandar Rimbayu at Shah Alam, Seremban 2 and Sebana Cove at Johor. Chong said the Johor project is mainly catered to the oil and gas market, and although sentiment is less than ideal at the moment, IJM believed that the area has a huge potential in the long run.
Ekovest Bhd managing director Datuk Seri Lim Keng Cheng said besides working with a few big partner banks to facilitate the loan application process, Ekovest is also planning to launch an affordable housing project in Setapak. For Ekovest’s upcoming project, the EkoTitiwangsa of the Kuala Lumpur River City development project will soon be launching its second and third block by the end of this year. Lim pointed out that this residential project is to cater to the more high-end market segment, and that the master plan of KL River City has emphasised an integrated transport concept, which included public transport such as MRT, monorail, and LRT, as well as cycling track, walkway and water taxi. Ekovest Bhd and IJM Land have been officially announced as the premium partners of StarProperty.my on April 28, and will be joining most upcoming StarProperty.my fairs this year. The StarProperty.my Fair 2016 Premium Partners Announcement Ceremony was officiated by Star Media Group Bhd chief operating officer Calvin Kan. Also present were chief revenue officer Lim Bee Leng and StarProperty.my assistant general manager K.C. Tan. The upcoming fairs will be held at Johor Bahru City Square (July 22-24), Nu Sentral (Aug 15-21), Sunway Putra Mall (Aug 2628), Publika Mall (Sept 26-Oct 2) and Kuala Lumpur Convention Centre (Nov 18-20). For more information, visit fair.starproperty.my 1 Kan (sixth from left), Lim and the Ekovest team at the Star Property. my Fair 2016 Premium Partners Announcement Ceremony. 2 Kan (fifth from left), Chong and the IJM team at the Star Property. my Fair 2016 Premium Partners Announcement Ceremony.
STARPROPERTY.MY WEDNESDAY 4 MAY 2016
05FEATURED DEVELOPMENT
DEVELOPER WITH HEART
IJM Land extends helping hand to buyers. 1
By ANGIE NG
angie@thestar.com.my
E
XTENDING a helping hand to property buyers during the current economic uncertainties and rising cost of living, IJM Land Bhd is offering property buyers an easy ownership proposition under the Free Stay @ No Pay campaign that's on until July 31 this year. Under the campaign, the developer has put together an attractive package for new property owners in seven of its current property developments located in various parts of the country–Bandar Rimbayu and Shah Alam 2 township in Selangor, Seremban 2 and Seri Binjai in Negri Sembilan, Pantai Sentral Park in Kuala Lumpur, Epic Residences in Johor, and Riverine Diamond @ Kuching Riverine Resort in Sarawak. Among the incentives for the buyers include instalment-free period of up to 12 months, 0% interest instalment scheme (via selected banks' credit card) up to 36 months, an additional 1% rebate under IJM Land’s Purchaser Priority Program, low down payment and easy ownership packages. On top of that, IJM Land also offers every buyer a free three-day two-night stay at Club Med, Kani-Maldives. Bandar Rimbayu sales and marketing manager Susan Teh said the up to 12 months free home loan instalment upon vacant possession will give buyers peace of mind to use the extra savings for their day-to-day needs or as extra cash for their moving in or renovation expenses. The sprawling 1,879-acre Bandar Rimbayu in the Kota Kemuning corridor is offering various property types–Periwinkle double-storey cluster semi-detached houses, Wisteria double-storey link homes (gated and guarded) and Penduline double-storey link houses. The Periwinkle residences with built-up from 2,117 sq ft to 2,267 sq ft and a 10 feet side garden are priced from RM996,800 and Wisteria gated and guarded doublestorey link homes of 2,388 sq ft to 2,499 sq ft are priced from RM936,800. The latest launch comprises Penduline 20 ft x 70 ft double-storey link homes with built-up of 1,771 sq ft to 2,022 sq ft priced from RM689,800. Set to take another 10 to 15 years to complete, the township will be home to 10,000 households in exclusive housing enclaves, from affordable housing to luxurious high-end residences. It showcases a healthy blend of residential, commercial, recreational and parkland components in the four precincts of Flora, Fauna, Bayu and the commercial hub. Meanwhile, the property type offered in Pantai Sentral Park comprises phase two, Secoya Residences. The condominiums of 1,050 sq ft to 1,670 sq ft have average price from RM800 per sq ft before a 4% discount.
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The targeted completion of phase two is in 2019, while the whole development is to be completed in 10 years.
Pristine addresses Located strategically with a direct
interchange to and from New Pantai Expressway, the project will be home to a population of 15,000 upon its completion. In Johor, Epic Residences comprises a 25-storey residential tower of 528 smartly designed studio units, three-bedroom family units and penthouses of 549 sq ft to 2,476 sq ft, priced at RM500 per sq ft. The gated and guarded project, scheduled for completion by end-2016, is equipped with clubhouse facilities, generous landscaped gardens and a spectacular Olympic-size aquatic pool. Strategically located close to all highways and commuter routes in Johor Baru, it is within15 minutes’ drive away from the tourism hotspots of Legoland, Mall of Medini, Puteri Harbour Indoor Theme Park and five to 10 minutes' drive to JB city centre and Singapore causeway. The thriving township of Shah Alam 2 is offering Bayu Suria link semi-detached houses of 1,665 sq ft at RM520,000 and semi-detached houses of 2,285 sq ft priced at RM808,000. Connected to the major highways of Guthrie Corridor Expressway, NKVE, Federal Highway and the proposed West Coast Expressway, Shah Alam 2 showcases various residential designs and layout to suit the different needs of buyers. The facilities include the UiTM Puncak Alam Campus, Tesco Puncak Alam, Econsave and McDonald’s Drive Thru restaurant. In Seremban 2, 208 units of Block A Kalista 2 Exclusive Apartments of 926 sq ft to 1,561 sq ft are priced from RM317,800.
1 Bayu Suria Semi-D @ Shah Alam 2. 2 The ARC @ Bandar Rimbayu. 3 Epic Residences @ Johor Baru. 4 Riverine Diamond @ Kuching Riverine Resort, Sarawak. 5 Pantai Sentral Park @ Kuala Lumpur. 6 Kalista 2 Exclusive Apartments @ Seremban 2.
To be launched in the second quarter this year, the RM79mil guarded project offers two car parks for each unit, swimming pool, gymnasium, playground, multipurpose hall and half basketball court. Also for launching in the second quarter of this year are 183 units of Rimbun Irama terrace houses of 2,224 sq ft and 2,451 sq ft priced from RM555,800. The guarded residences come with fully extended car porch and backyard, hasslefree renovation and high-speed broadband infrastructure. In Sarawak, Riverine Diamond at Kuching Riverine Resort comprises condominiums of 484 sq ft to 1,937 sq ft. Priced from RM630 to RM911 per sq ft, the units have price tags of RM304,920 to RM1,765,465 each. Located by the Sarawak River, Riverine Diamond is an upscale condominium project that has a waterfront esplanade and
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full condominium facilities. The project will be completed around 2018. Its strategic location in Kuching’s central business district is complemented by good roads leading to and from the site. Buyers who want to take advantage of the offer can visit IJM Land website at www.ijmland.com. or call the respective IJM Land offices at: • Bandar Rimbayu @ Selangor: 1700 81 8686 • Shah Alam 2 Township @ Selangor:+6 (03) 3393 3103 • Seremban 2 Township @ Negri Sembilan/ Seri Binjai @ Negri Sembilan: 1800 222 456 • Pantai Sentral Park @ Kuala Lumpur: 1800 880 456 • Epic Residences @ Johor: +6 (07) 3645 205 • Riverine Diamond @ Kuching Riverine Resort, Sarawak: +6 (082) 231678
STARPROPERTY.MY WEDNESDAY 4 MAY 2016
06
FEATURED DEVELOPMENT
HEALTHY LIVING @ OnePark A tranquil and rejuvenating living Greenarium development in Semenyih by Iwajib. By MAK KUM SHI
makks@thestar.com.my
M
ORE than just a sales gimmick, the development of eco-friendly homes is a pledge undertaken to provide a healthy lifestyle for the community at large. Imagine waking up every morning to sound of birds chirping and sight of trees around your home. Such an atmosphere makes life more expressive and is a prerequisite to healthy living. At Iwajib’s OnePark, going green is more than just planting trees. It is a whole new concept that is built into the essence of the development. OnePark consciously takes away the boundary between the inside and outside of the home in a way that flora and fauna will greet the residents the moment they step out of the house, enveloping them in the warmth of lush greens and invigorating fresh crisp air. The comfort of the home internally and externally is the same, exuding the divine bliss of being one with Mother Nature. OnePark is fundamentally a “Greenarium”, a word passionately carved by the visionaries who condensed the idea of creating a home with a 3600 green surroundings. From the point of entry into the residential property, one is immediately transported to the wilderness as the path is lined with trees leading to the central park. There are also the kids’ playground, a jogging track, gazebos and a community building for the diverse needs of the owners and residents of OnePark. The developer, Iwajib Group, regards the venture as a meaningful contribution to the planet. “We are in a world today where our resources are depleting with aggressive human activities. In this regard, we want to be different. Making a difference to the world we live in and the lives of people is our ultimate goal,” said Iwajib Group CEO Datin Adeline Quak. “Our designs emphasise on natural lighting and natural air ventilation in every home in addition to a practical landscaped garden with stringent security features thrown in,” Quak added. OnePark is located in Taman Semenyih Idaman. It has 250 double-storey link homes nestled on a plot of land along the main road of Jalan Semenyih before Semenyih town. Shopping is a major consideration when choosing where to live. A new mall is coming up in the vicinity while several hypermarkets are just a stone’s throw away. OnePark is surrounded by schools and tertiary education institutions that will be ideal for young and mature families alike. For medical attention, there are several hospitals just a short drive away, making
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it perfect for those looking to retire into the quietness of nature and being close to essential conveniences. Living in a green-friendly hub is not a distant dream, it can become a reality. OnePark is a gated and guarded residential estate with homes that encompass living in and with nature. The stringent security features are single entry-exit point, smart tag and six-tier security system. The system has 24-hour security guard service, clock-in system guard patrol with personnel equipped with walkietalkie, CCTV surveillance, seven-feet high perimeter fencing with solar energy lightings installed, panic alarm buttons and home alarm system. Solar energy lightings will ensure availability of night lighting when electricity supply cut-off occurs. The medium-sized enclave on OnePark is just minutes away from the Semenyih Exit
(2101A) of Lekas Highway, making it a breeze to access the KL city centre. Lekas is linked to Silk, Plus, Grand Saga and other major highways, which connect to various parts of the Klang Valley. Quak shared: “As a responsible developer, we are committed to developing quality property that meets the aspirations of today’s home/business owners. We will always strive for excellence.” As a boutique developer, Iwajib is devoted to ensure that every project it undertakes is in harmony with nature and the environment for the well-being of the residents and community. OnePark is meant to be a stress reliever for those who get caught up in the daily rigours of work and commitments outside the home. Take the first step today, call 017-816 0388/ 017-225 0388/ 012-271 0389 for an appointment or visit www.iwajib.com.my or Facebook: OnePark, Taman Semenyih Idaman and the rest will fall into place in no time.
Developer Name
Iwajib Property Sdn Bhd
Address
5-G, Jalan Kiara 3, Kiara Business Centre, 43500 Semenyih, Selangor
Website
www.iwajib.com.my
OnePark, Taman Semenyih Idaman
sales@iwajib.com.my
Contact No
017-816 0388, 017-225 0388, 017-826 0388, 012-271 0389, 03-8727 7113
Fax No
03-8727 7028
Development project name
OnePark, Taman Semenyih Idaman
Advertising Permit no.
14279-1/03-2018/0185(P)
Developers License no.
14279-1/03-2018/0185(L)
Location
Semenyih
1 Type Melwood overlooking 25-feet wide linear park.
Property type
Double storey linked homes
Land title
Residential
2 Powder-coated aluminium sliding door dividing wet and dry kitchens.
Tenure
Freehold
Total units
Baywood – 62 units Melwood – 159 units Winwood – 29 units
Land area
Baywood and Melwood – 22’ x 65’ Winwood – 20’ x 70’
Built-up area
Baywood – 2,168 to 2,179 sq ft Melwood – 2,245 to 2,296 sq ft Winwood – 2,232 to 2,242 sq ft
Total designs
3
Number of bedrooms
3+1
Number of bathrooms
3
Price range
Baywood (RM726,000 – RM1,162,000) Melwood (RM741,000 – RM1,214,000) Winwood (RM734,000 – RM887,000)
3 Spacious living and dining rooms with tempered glass railing for staircase.
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Estimated date Dec 2018 of completion 3
WEDNESDAY 4 MAY 2016
STARPROPERTY.MY
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STARPROPERTY.MY WEDNESDAY 4 MAY 2016
08
FEATURED DEVELOPMENT
ENLIGHTENING TALKS AT STARPROPERTY.MY FORUM 2016 Enhance your investment skills at the upcoming Prime Investment Forum in May.
PRIME INVESTMENT FORUM Residential Commercial Industrial
Founder of Chur Associates, Chris Tan
Date : May 08, 2016 (Sunday) Venue : The Oak Room, Nexus, Bangsar South Time : 9am - 6pm Sponsor by
By VIKNESH ASHLEY
vikneshashley@thestar.com.my
W
HAT will you be doing this May 8? One should mark this date as StarProperty.my is back with its enlightening property forum dubbed the Prime Investment Forum, sponsored by Mah Sing Group Bhd. The property forum will take place in the glamorous Oak Room, at Nexus, Bangsar South and will be held in two sessions. One session will take place from 9am till 1pm and the other will be from 2pm till 6pm. Four experts will educate participants on how to soar despite the trying times of the property market. The speakers are Chur Associates founder Chris Tan, Advocate and Solicitor Tax and GST Consultant Dr Choong Kwai Fatt, Khalil Adis Consultancy Pte Ltd founder Khalil Adis and Iqbal Hakim, Sia and Voo partner Elizabeth Siew. Some of the titles that will be discussed at the StarProperty.my Forum include 'Quality, Location and Reputation – Learning the Art of War in Property' by Tan and Tax Strategies in GST Era on Property Acquisition – with Asset Protection for Children by Choong. Khalil will be presenting 'Connectivity and its Impact on Residential, Commercial and Industrial Properties' while property expert Siew will explore 'Smart Property Investment Via Knowing The Law in Creative Investment'. Tan will discuss return on investment, high risk and high return, the golden rules of investing, why should one invest in Malaysia’s property market as well as the importance of timing, location and branding. Khalil will share on what to expect in terms of the economy this year, insights on where to look for affordable property, as well as sharing guidelines on how to make the best investments, based on choosing properties with good accessibility. Adding to that, Khalil will also talk about property trends, buying the first property, calculating affordability, as well as providing a step-by-step buying guide. For those curious about the relatively new property type of SoFo, SoVo as well
Advocate & Solicitor Tax and GST consultant, Dr Choong Kwai Fatt
Founder of Consultancy Pte Ltd, Khalil Adis
Partner of Hakim, Sia & Voo, Elizabeth Siew
1 Southville City, Bangi. 2 Icon Residence, Mont Kiara. 3 Meridin East, Pasir Gudang, Johor. 4 D’sara Sentral, Jalan Sungai Buloh. 5 Ferringhi Residence, Batu Ferringhi, Penang. 6 Aspen @ Garden Residence, Cyberjaya.
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as SoHo, Khalil will explain how this property type would fare in the property market, sharing insights on the areas that this property type would perform best, as well as how one could generate income without wholly leasing out the property. Choong is well-qualified to provide good advice regarding income tax legislations, GST legislations, its applications and interpretations, and the proper maintenance of accounts and documentation by companies to reflect commercial substance. He specialises in GST, tax planning, tax restructuring and tax appeal in relation to transfer pricing, tax investigation, penalties, tax evasion and anti-money laundering matters. Choong is an acknowledged tax authority and a leading tax specialist in Malaysia, having competently provided tax consultancy services to listed companies, audit firms and the Government for more than 26 years.
Siew is an advisor to both local and foreign corporations in relation to commercial buildings and property transactions. This speaker holds vast experience in conveyancing commercial and corporate legal practices, particularly with respect to land acquisition and joint project development matters as well as property development for commercial, residential and industrial projects. At the forum, Siew will share tips on the must dos before buying a property, creative property investment, buying now versus buying in the future, owning a property versus owning the rights to a property, joint-venture purchasing, as well as insights on leasing and subletting. Take action now and reserve your seat by registering and booking right away, as seats are limited. For more information, visit www.starproperty.my/ forum
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WEDNESDAY 4 MAY 2016
STARPROPERTY.MY
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STARPROP WEDNESDAY 0
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FEATURED DEVELOPMENT
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By ANGIE NG
angie@thestar.com.my
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HE virtue and value-adding proposition of placemaking, as expounded by the late American architect Jon Jerde, has created renowned real estate destinations around the world that include the Mall of America in Bloomington, Minnesota, the Urban Entertainment Center Universal CityWalk in Los Angeles, the Las Vegas Fremont Street Experience and the Bellagio in Las Vegas. In Malaysia, Jerde’s Midas touch has brought out the gleam and vibrancy in I-Bhd’s flagship development, the 72acre i-City ultrapolis in Section 7 Shah Alam, Selangor. I-Bhd founder and executive chairman Tan Sri Lim Kim Hong’s decision to engage the California-based Jerde Partnership in 2005 to design the masterplan for i-City reveals Lim’s foresight as a visionary entrepreneur to turn the former plantation land into an iconic real estate and leisure destination. Lim, an astute businessman, wanted the best idea and plan to develop the land he purchased in 1993 into a viable real estate development of international standing, which would add value to I-Bhd, its partners and associates. Seeing the land which he purchased at RM4 per sq ft turning into a vibrant residential, business and leisure destination must have given much satisfaction to Lim and his team for all the effort they had expended on the project. According to Lim, Jerde’s masterplan for i-City has redefined what a metropolis is–an ultrapolis that showcases a fully integrated built city that comprises components of corporate, leisure and residential offerings. To many, this RM9bil ultrapolis is an international business hub by day and a lifestyle haven by night. The idea of i-City was conceived to reflect the nation’s aspiration to be a developed and high-income economy by 2020. In line with this, I-Bhd is much focused on the middle to upper market for its i-City development. “I-Bhd has been recognised as a significant contributor to the economy of the Greater KL corridor and has earned accolades from various state and Federal Government leaders. The latest came from the Prime Minister himself. At a recent press conference, Datuk Seri Najib Razak said i-City is a good example of
how the private sector can contribute to the Government’s goal of making the Klang Valley truly outstanding and also in helping to increase tourist arrivals to the country. The company has a RM1bil tourism master plan comprising the leisure park, Central i-City Mall, three hotels, a convention centre and a wellness hub. The goal of the tourism master plan is to ensure that when i-City is fully developed, it would have a recurring income stream from properties that are developed to tap into the tourist market. The shopping mall, which is a joint venture with CPN, is targeted to open for business in 2018. As for the hotels, Best Western is already operating since end-2014. I-Bhd has signed with Hilton to operate the DoubleTree that is targeted to open in 2020. The convention centre is part of the DoubleTree hotel complex that will open for business in 2020. The theme park is today five years old with an investment of about RM80mil in the various rides and attractions. On the drawing board are the remaining components comprising a five-star hotel and a wellness hub. Since work started in 2004, the various development components include the 1.5 million sq ft Central i-City Shopping Mall, Grade A office towers, cyberoffice suites, three-, fourand five-star hotels, high-rise residential towers, retail outlets, data centres and a theme park. In terms of land allocation, 17% has been allocated for the retail component, 24% for offices and data centres, 49% for residences, and 5% each for the hotels and the theme park. These include 2.4 acres for the i-Residence project, which is the maiden residenial project in i-City, 21.5 acres for the cyber office blocks, 12.1 acres for i-SoHo, i-Suites, Liberty, Parisien and Hyde residential blocks, 7.5 acres for Central Tower plot, 11.1 acres for Central i-City Shopping Mall, and 5.1 acres of vacant land for the Dome development that is currently on the drawing board stage, 12.5 acres for Persiaran Multimedia and Jalan Siber retention ponds, and 1 0acres for The Jewel mixed-use project. In the residential precinct, some 1.3 million sq ft of the approved gross floor area worth a gross development value (GDV) of some RM2bil had been completed at the end of 2015. Total sales recorded to date came up to about RM1bil.
Raising the b
I-Bhd plans more real estate and tourism attraction Lights.
New revenue streams The most recent project launch was
“The idea of i-City was conceived to reflect the nation’s aspiration to be a developed and high-income economy by 2020. In line with this, I-Bhd is very much focused on the middle to upper market for its i-City development.
for Hyde Tower residences. The other upcoming launch, scheduled for the second half of this year, will be residences aboveHilton. In the first half of 2017, the launch will be some service apartments. Projects under construction involve another 3.7 million sq ft of built-up while another 3.6 million sq ft of projects are at the tender award stage. Another 5.4 million sq ft of projects worth a GDV of RM7bil will be the development pipeline for I-Bhd in i-City over the next 10 years. In the leisure and entertainment side, i-City’s 10ha theme park comprises four main components – City of Digital Lights, SnoWalk, WaterWorld and FunWorld. The presence of the two renowned hotel chains of Best Western and DoubleTree by Hilton in i-City is set to boost the development of the theme park and other attractions. Located next to the Federal Highway, the four-star DoubleTree by Hilton i-City hotel will offer 300 rooms built at a gross development value of RM200mil. It will be the second international hotel chain in the 29ha i-City ultrapolis when it is completed in 2020. The first was Best Western i-City hotel, which
opened in 2015. Besides creating jobs and residential opportunities through its development in i-City, I-Bhd is also contributing half of the construction of the RM55mil i-City interchange that connects the Federal Highway to Section 7 Shah Alam and to i-City. To spruce up the connectivity within i-City, the company will be constructing a pedestrian link between the Light Rail Transit Three (LRT3) and i-City’s Central i-City Mall. Meanwhile, the entire Shah Alam city will see a a boost in terms of connectivity with the LRT line from Glenmarie to i-City, that will link up to the mass rapid transit in Sungai Buloh, Selangor. Lim and his team are encouraged by the various Government initiatives that will benefit the i-City development. These include the development of the Greater KL and Klang Valley corridor into one of the top-20 most liveable metropolis globally. It is one of the National Key Economic Area (NKEA) under the country’s Economic Transformation Programme. As the tourism sector is seen with the highest potential to generate economic activities, the development of i-City as a tourism destination is in line with the country’s aim to achieve 30.5 million tourists, which is expected to contribute RM103bil to the economy.
PERTY.MY 04 MAY 2016
11FEATURED DEVELOPMENT
bar for i-City
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Key milestones in i-City 2005
• i-City was first conceived as a RM1.5bil township development with five million sq ft of approved built-up space.
ns to further enhance the City of Digital
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The infrastructure and transport projects announced under the 2016 Budget, such as the RM9bil LRT3 project linking Bandar Utama to Shah Alam and Klang, and the discounted fare for the KL Klang Intercity bus, will have positive impact on demand for properties in the western part of the Klang Valley. I-Bhd is confident that Leisure Park@i-City and the Central i-City Mall will also benefit from these projects. Although the country had to face two major challenges last year with the implementation of the Goods and Services Tax (GST) and drop in oil prices, I-Bhd foresees better performance and growth in 2016 and 2017. Firstly, there are RM692mil of unbilled sales at at end of 2015, and also, many of its projects have passed the foundation stage, meaning there is now a higher percentage of revenue recognition. Having taken the Shah Alam property scene to the next level with the development of i-City, I-Bhd is embarking on its first Kuala Lumpur development, the luxurious 8Kia Peng @ KLCC, King of The Hill residential project. The 50-storey freehold tower of 442 luxury residences is in the prestige neighbourhood of KLCC. With the hands-on stewardship of Lim in steering the company forward, the success of i-City and 8Kia Peng may be able to propel I-Bhd into a billion-ringgit fullfledged property-based group.
1 Central Tower plot comprising Double Tree by Hilton and residences above Hilton, Grade A offices and service apartments, all within the Central i-City Mall development. 2 Central i-City Mall, opening in 2018. 3 Double Tree by Hilton, opening in 2019. 4 i-SoHo, handover in end 2016. 5 Best Western Hotel, i-SoVo and Data Centre at the Eastern side. 6 8Kia Peng, King of the Hill, luxury residences in KLCC.
2008
• i-City was awarded with MSC Cybercentre status. • Approved as a Tourism Destination by the Ministry of Tourism and Culture. • Declared as an International Park by the Selangor State Government, where entertainment and cosmopolitan lifestyle activities are permitted.
2016
• Today i-City is a RM9bil ultrapolis development. • Groundbreaking of Central i-City Mall and DoubleTree by Hilton.
Global Partnerships 2007
• Joint venture with technology partners ServCorp and Cisco network.
2008
• Al Rajhi purchased 36 units (of 3- to 5-storey per unit) of Cyberoffice suites.
2013
• Joint venture with Central Pattana Public Co Ltd to develop Central i-City Mall, a regional shopping mall in i-City.
2015
• Best Western Hotel @ i-City opened for business. • Inked deal with Hilton’s DoubleTree Hotel that will open for business in 2019.
STARPROPERTY.MY WEDNESDAY 04 MAY 2016
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FEATURED DEVELOPMENT
i-CITY’S CHIC RESIDENCES Enjoy the comfort of holistic living.
i-suite 1 1 Breathtaking view from i-Suite. 2 The Jewel is a mixed-use building. 3 Central Tower, view from the north. 4 Dome, indoor theme park with a transparent covered dome.
By ANGIE NG
angie@thestar.com.my
T
HE opening of the direct flyover access from the Federal Highway to i-City on April 28, 2016 further enhances its accessibility and promotes the i-City address. The improved connectivity brings forth more vibrancy to the corridor and i-City. Besides being a well-regarded business and leisure address, i-City is home to chic residences for a growing community. The first residential project in i-City, the i-Residence that comprised a 33-storey block of 346 service residences and an adjacent villa block of 20 duplex and triplex residences, was fully sold out before the handing over of vacant possession in 2015. The other completed projects are the MSC Cyberoffice suites in 2010, i-Sovo in 2014, and Best Western Hotel in 2015. Currently, construction is ongoing for i-SoHo project with handover by end of this year. i-Suite will be completed next year, while Liberty, Parisien and Hyde will be in 2018. The Central i-City Mall will open for business in August 2018 while DoubleTree by Hilton will be in 2019. Coming up next will be the Central Tower plot that is
targeted for completion by 2019. The plot consists of two tower blocks that are connected via a Sky Bridge. It features a mix of residential service suites and office spaces. The tower will have a multitude of access points to the Central i-City Mall. There is also one tower for DoubleTree by Hilton and residences above Hilton, and another tower comprising Grade A offices. The project with more than 580 units will have a gross development value of RM560mil. Covering over four hectares, The Jewel, targeted for completion in 2020, will comprise 45 to 70 storeys of mixed-use buildings targeted toward the international community. Towering over the rest of the developments, The Jewel provides a range of facilities, including residential, offices, a five-star hotel and retail elements. The Jewel will be connected at the top by a sky bridge and will be i-City’s most premium offering, which aims to be completed by 2020. Coming up after that will be Dome, a state-of-the-art indoor theme park under a transparent covered dome. With Jerde's unique placemaking hallmark, i-City is headed towards charting new milestones going forward.
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STARPROPERTY.MY WEDNESDAY 4 MAY 2016
INTERNATIONAL 13MARKETS
SUBDUED HONG KONG MARKET
Challenging trading and retail environment impact retail and industrial property sub-sectors. On the other hand office space shortages firms up office sub-sector.
makks@thestar.com.my
H
ONG Kong’s property market is seeing price drops in residential properties, readjustments in retail, a firm office sub-sector due to supply shortages, and a subdued industrial sub-sector. Knight Frank Research indicated that residential sales this March rebounded with more units launched in the primary market and more deals closed in the secondary market, but prices continued to fall. According to the Land Registry, residential sales volume rebounded 45% month-on-month from the lowest level in 25 years, reaching 17,106. The rise was attributable to a number of primary project launches after Chinese New Year and a reviving secondary market, with some flat owners willing to cut prices. As a result, prices fell further, with official figures showing that home prices had decreased for five consecutive months, for a cumulative decline of 11%. With potential buyers expecting increasing supply and a further drop in home prices, residential sales are expected to fall to around 50,000 units this year. Although overall luxury home prices are expected to drop 5% this year, prices of super-luxury houses and apartments should remain stable. Mass market prices could drop up to 10%.
A transition in retail
Hong Kong’s retail industry is seeking new elements and angles to rebalance business. In the first two months of the quarter, both retail sales value and visitor arrivals decreased by 13.6% year-on-year. With an 18% decrease in mainland Chinese visitors during the period, their decade-long shopping spree in Hong Kong is coming to an end. This has put downward pressure on rents in core retail areas. Looking ahead, the retail market is likely to continue going through a period of readjustment to reduce its dependency on mainland visitors spending. As rents drop, it is becoming more affordable for lifestyle brands to take up space in core shopping areas. Supply shortages firms up office subsector. In the case of the office sub-sector, low vacancy levels persist and rents edged up by 2.1% over Q1 2016 as a result. However, demand remains subdued. Savills Research shared that vacancies remain at extremely low levels across all of Hong Kong’s major business districts, averaging 2.2% or 1.23 million sq ft. Grade A office rents edged up in the first quarter of the year by 2.1%, even though demand proved less than buoyant. In Central, interest from People’s Republic of China (PRC) firms remained muted compared to the last two years,
possibly given a poor stock market performance. In Sheung Wan, the chosen location for many PRC brokerages, little changed during the quarter as a lack of quality space constrained take-up there. Given the popularity of the area among tech businesses, the district has found itself home to a number of co-working offices. Wanchai is still popular among nonfinancial multinationals with regional operations and China-listed entities. Causeway Bay is reinventing itself as a finance, technology, media and telecommunications (TMT) hub. The result has been strong relative rental outperformance. Rental growth in Causeway Bay has consistently outperformed Wanchai by one to four percentage points per quarter since Q2 2013 after the opening of Alibaba, Apple and Yahoo. Hong Kong’s Central Business District 2 continues to take shape across a wide geography, which includes Kai Tak, Kowloon Bay, Ngau Tau Kok and Kwun Tong. On full development, the four districts will host close to 56 million sq ft of Grade A offices among a mix of other uses, including retail and hospitality. The Government has arguably been a bit slow in pushing this initiative forward but prospects for the area have brightened as plans have recently been announced for the potential tender of two new office sites this fiscal year, one offering the possibility of erecting a landmark tower suitable for headquarter use.
Subdued industrial sub-sector
Industrial investment sentiment remained subdued in Q1 2016. Investment activity slowed in Q1 2016 with no en-bloc deals concluded. The two-speed market in the warehouse
A view of the Hong Kong skyline showing mostly Mid-Levels residential buildings, Hong Kong, China.
sector saw modern warehouse landlords holding firm on asking rents even though there are increasing concerns over the business prospects of multinational tenants. The traditional warehouse segment revealed a very different picture, with many small to medium logistics operators forced to downsize or vacate due to the need for cost savings in the face of shrinking business prospects, as well as the reluctance of landlords to adjust rents significantly. While both modern and traditional warehouse landlords have held firm on
Savills Grade A office vacancy rates by district, Jan 2006-March in 2016
asking rents, with rental levels of both segments remaining unchanged in Q1 2016, both are faced with uncertainties in the near future. The imminent completion of Mapletree Logistics Centre Tsing Yi will bring around 1 million sq ft of physical vacancy to the modern warehouse market, with current asking rents of HK$14 (RM7.08) to HK$17 (RM8.59) per sq ft. The further erosion of local trading and retail environment may induce more vacancies in traditional warehouses, weakening the hand of landlords.
Luxury residential prices and rents
Jan 10 March 10 May 10 July 10 Sept 10 Nov 10 Jan 11 March 11 May 11 July 11 Sept 11 Nov 11 Jan 12 March 12 May 12 July 12 Sept 12 Nov 12 Jan 13 March 13 May 13 July 13 Sept 13 Nov 13 Jan 14 March 14 May 14 July 14 Sept 14 Nov 14 Jan 15 March 15 May 15 July 15 Sept 15 Nov 15 Jan 16 March 16
By MAK KUM SHI
Source: Savills Research & Consultancy
Source: Knight Frank Research
STARPROPERTY.MY WEDNESDAY 4 MAY 2016
14
MAIN FEATURE
MODERATE PROPERTY
A softening property market, bleak household sentiments, dwindling business confidence, cooling measures, drop in tourist arrivals and volatile commodity prices had impacted various property sub-sectors.
Bleak household sentiments
In line with the market softening and bleak household sentiments, the primary market reacted accordingly, as the number of new launches reduced to 70,273 units, down by 19.2% against 2014 (86,997 units). Most states, particularly major ones, saw substantial declines in their new launches. New launches in Johor and Penang saw declines of 42.8% to 9,428 units and 47.5% to 2,348 units respectively. The overall sales performance for the country hovered at 41.4% (29,089 units sold), lower than 45.4% (39,491 units sold) in 2014. The residential overhang situation took a downturn as more units were recorded. There were 11,316 overhung units worth RM5.9bil, up by 16.3% in volume and 56.0% in value. Holding 21.9% of the national overhang, Johor saw its overhang increased to 2,483 units. This increased by 8.5%, compared to 2014, due to higher unsold units in terrace and service apartment types. On a similar trend, the unsold units under construction recorded an increase of 28.6% to 68,760 units, due to the large number of unsold condominium and service apartment units. The fewer number of new launches partly helped contain the unsold units that were not constructed, down by 20.5% to 10,704 units. Construction activities were generally on a low tone with the exception of starts. Completions were down by 25.0% (80,850 units), whereas starts recorded a 10.3% increase over 2014, as higher numbers of service apartments in Johor Bahru (20,914 units) and Kuala Lumpur (13,197 units) commenced construction. On the contrary, new planned supply was on a four-year low at 139,189 units, down by 31.8%. As at end-2015, there were 4.93mil existing residential units with nearly
By
Overall Transaction Volume
MAK KUM SHI
440,000
makks@ thestar.com.my
Mak Kum Shi is the content and consumer engagement manager for the property business unit of Star Media Group
15% 10%
384,060
381,130
376,604
380,000
5%
0.8% 362,105
-0.7%
360,000
-5.7%
320,000
2010
2011
2012
2013
Transactions volume
0% -5% -10%
-10.9% 2014
-15%
2015
% Change
Overall Transaction Value 180,000 160,000 140,000 120,000
32.6%
28.3%
152,372.12
162,974.38
142,844.94
30% 25% 20%
107,439.55
15%
100,000
6.7%
80,000
7.0%
10% 5%
60,000
0%
3.6%
-5%
20,000 0
35%
149,897.95
137,828.04
40,000
Dwindling business confidence
The retail sub-sector recorded a slight improvement from 81.8% in 2014 to 82.4% in 2015, with a take-up amounting to more than 780,000 sq m. Higher take-up spaces were observed in Selangor with more than 200,000 sq m,
11.4%
340,000
There were 31,776 transactions worth RM26.4bil recorded, down by 10.6% in volume and 17.1% in value. Major states recorded lacklustre performance with Johor recording the highest decrease of 21.9%, followed by Kuala Lumpur at 15.0%, Selangor at 11.1% and Penang at 10.7%. In terms of transactions value, Penang had an increase of 19.0%, in spite of fallen market activity. Other major states succumbed to double-digit declines.
Improvements in retail occupancy
427,520 14.3%
400.000
Lacklustre commercial sub-sector
The shop sub-sector recorded 17,181 transactions worth RM13.31bil in 2015. This consisted 54.1% of commercial property transactions and 50.4% of the total value. Compared to 2014, market activity was reduced by 14.7% in volume and 11.2% in value. Penang and Selangor contributed higher market volume to the national total, each with 18.8% and 16.9% market share. Performance-wise, Johor recorded a drop of 29.3%, while Selangor saw a 10.0% fall. The shop overhang recorded 4,972 units worth RM2.25bil, up by 15.0% in volume and 50.1% in value. Similarly, the unsold (units) under construction and not constructed were also on uptrend, nearly double the amount to record at 12,882 units and 2,459 units respectively.
20%
430,403
420,000
Volume
0.89mil in the incoming supply and 0.64mil in the planned supply. The Malaysian House Price Index sustained its moderating trend. As at Q4 2015, the Malaysian All House Price Index stood at 227.5 points (at base year 2020), up by 5.8% on annual basis. The annual rate of increase for Malaysian House Price Index has been on a decelerating trend since Q4 2013, resulting from the various cooling measures to contain the spiralling prices. On quarterly movements, the index points contracted by 0.8% against Q3 2015.
Value (RM Million)
A
LTHOUGH economic sentiments have impacted various property sub-sectors in 2015, there have been silver linings, particularly in retail and offices. The National Property Information Centre (Napic) from the Ministry of Finance’s Valuation and Property Services Department had indicated a slight downturn in property market activity last year. Market volume recorded at 362,105 transactions worth RM149.9bil in 2015, a marginal reduction of 5.7% in volume and 8.0% in value, compared to 2014. The residential sub-sector recorded a slight downturn by 4.6% and 10.5% in volume and value respectively. The commercial, industrial, agricultural and development land sub-sectors were also down by 10.6%, 13.0%, 7.5% and 2.4% respectively.
-8.0% 2010
2011
2012
Transactions value
2013
2014
2015
-10% -15%
% Change
Source: Ministry of Finance’s Valuation and Property Services Department’s Property Market Report 2015
“Penang and Selangor contributed higher market volume to the national total, each with 18.8% and 16.9% market share. Performancewise, Johor recorded a downfall of 29.3%, while Selangor saw a 10.0% fall.
while Sarawak and Penang each secured more than 100,000 sq m. Apart from Kelantan which recorded negative take-up rates, all other states recorded positive results. Occupancy rates remained encouraging with nine states securing above 80.0% mark. Kuala Lumpur saw a slight decline from 89.8% to 87.4%. Selangor improved further from 84.7% to 87.7%. Johor sustained at 74.8% compared to 74.9% in 2014. Penang improved to 71.8% from 66.1% in 2014. Construction activity continued to see new entrants in the year. In terms of space, completions declined by 9.2% to record at 645,878 sq m. Starts increased by 68.7% to 621,165 sq m as five complexes in Johor with a combined space of more than 200,000 sq m commenced construction. As at end-2015, there were 13.83 mil sq m of existing retail space from 932 shopping complexes. There were another 64 complexes (1.51mil sq m) in incoming supply and 38 complexes (1.03mil sq m) in the planned supply. Selangor dominated the existing retail space while Kuala Lumpur dominated the incoming and planned supply.
Moderate performance for office sub-sector The office sub-sector saw a slight downturn in the overall occupancy rate at 83.7%, down from 84.9% in 2014. Although the annual take-up rate was positive at 262,202 sq m in 2015, it was lower than 867,979 sq m that was recorded in the previous year. Occupancy rates for government buildings was at 98.7%, which helped to cushion the moderate performance of private office buildings at 78.5%. Private buildings supplied nearly 75.0% of existing space and 70.0% of occupied space nationally. State performance was commendable with 14 states having secured more than 80.0% occupancy. Perlis obtained full occupancy and eight other states obtained more than 90.0% occupancy. The state office sub-sector was mostly dominated by government office buildings. The new office supply was on an uptrend. There were 27 new completions
STARPROPERTY.MY WEDNESDAY 4 MAY 2016
15MAIN FEATURE
MARKET IN 2015 offering a total space of 520,718 sq m, an increase of 17.3% against 2014 (443,792 sq m). There were 16 buildings commenced construction (481,642 sq m), more than double the space recorded in 2014 (183,395 sq m). Seven of these starts were in Kuala Lumpur. New planned supply, on the other hand, recorded eight buildings against 13 last year but did not run far in terms of space. Six of these newly approved building plans are in the capital city. As at end-2015, there were 20.13 million sq m of existing office space from 2,434 buildings. There were another 62 buildings (1.67 million sq m) in incoming supply and 17 buildings (0.41million sq m) in planned supply. Kuala Lumpur dominated all three supply categories.
Residential Property Market Movements
Plateau in industrial property sub-sector
The positive performance for the industrial property sub-sector that was recorded in the first half of 2015 did not sustain till year-end. The industrial subsubsector recorded 7,046 transactions worth RM11.97bil, down by 13.0% in volume and 17.5% in value. Selangor continued to dominate the market, with 28.9% of the nation’s volume, followed by Johor and Perak, each with 16.1% and 9.6% market share respectively. The industrial overhang saw a slight increase to record 243 units worth RM240.57mil, up by 7.5% in volume and nearly triple the value of 2014. The significant increase in value was contributed by cluster industrial properties, which accounted for 45.6% of the national overhang value and were solely in Johor. The unsold units under construction also observed similar trends, up by 29.7%
50%
25%
40%
20%
30%
15%
20% 10%
10%
0% -5%
0%
2010
2011
2012
2013
2014
2015
-20%
-15%
-30%
Volume of Transactions
2010
2011
2012
2013
2014
2015
-10%
-10%
Tourist arrivals drop impacting leisure sub-sector
In tandem with the drop in tourist arrivals for 2015, the average occupancy rates of hotels saw a slight decline from 62.6% in 2014 to 61.0% in 2015, as reported by Tourism Malaysia. The hotel sub-sector recorded 40 new completions (4,716 rooms), down by 29.5% when compared to 2014. Starts recorded an increase of 12.3% to 4,340 rooms, but new planned supply decreased by 30.2% (4,342 rooms). As at end-2015, there were 2,857 hotels across the country offering 208,747 rooms. Another 116 hotels (24,069 rooms) were in the incoming supply at a national level. Kuala Lumpur led other states with an incoming supply of 5,125 rooms. There were another 85 hotels (16,341 rooms) at the planned supply stage.
Commercial Property Market Movements
Value of Transactions
Volume of Transactions
Industrial Property Market Movements
Value of Transactions
Agriculture Property Market Movements
80%
50% 40%
60%
30% 40%
20% 10%
20%
0% -10%
2010
2011
2012
2013
2014
2015
0% -20%
-20% -30%
-40%
Volume of Transactions
Value of Transactions Volume of Transactions
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to 1,731 units, whereas unsold units that were not constructed reduced to 87 units, down by 41.2%.
5.3bil Remaining firm in The agriculture subsector is expected to remain stable in the coming year. RM5.3bil allocated to the Ministry of Agriculture and Agrobased Industry for the proposed 2016 programmes is expected to support the sub-sector.
2016
While the global and local economic and financial environment is expected to be challenging this year, the recalibration of the Malaysian annual budget 2016 is intended to ensure the country remains firm to brave such challenges. The residential sub-sector is expected to experience further softening in 2016, in view of various internal and external uncertainties foreseeable in the coming year. Issues on affordable housing and affordability of home purchasers will continue to top the national agenda. The measure that states that all new housing projects priced up to RM300,000 be limited to first-time homebuyers was recently announced in the budget recalibration. The outlook for the commercial sub-sector is expected to be equally or more challenging when compared to the residential sub-sector.
The retail sector is likely to moderate as cautious sentiment on consumers’ spending is expected to continue due to increasing costs of living. However, the performance of hypermarkets looks more positive due to the nature of goods, such as necessities, being sold in these premises. The performance of the office market is expected to plateau. Downward pressure on rental may be felt by buildings, particularly those with tenants that are related to the oil and gas industry. At the same time, the ample office space supply should send some cautionary signals to the authority before approving new developments. The leisure sub-sector is expected to remain positive. The allocation of RM1.2bil to the Ministry of Tourism and Culture to implement programmes and events to achieve the targeted tourist arrivals at 30.5mil in 2016 may help support the subsector and industries such as hospitality. The industrial property sub-sector is expected to remain moderate for the year. The establishment of Principal Hub scheme, which offers multiple advantages to multi-national companies that uses Malaysia as a base for their regional and
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global business operations, will entail better prospects for the industrial sub-sector. The flexibility of the scheme that allows companies to decide on the locations of their preference is another plus point for the sub-sector. The agriculture sub-sector is expected to remain stable in the coming year. RM5.3bil allocated to the Ministry of Agriculture and Agro-based Industry for the proposed 2016 programmes is expected to support the sub-sector. Several infrastructure projects such as public transport networks are expected to help boost values in areas where the networks run. Such networks include the AmpangPutra Heights, Kelana Jaya-Putra Heights and Bandar Utama to Johan Setia LRT Lines, Sg Buloh-Kajang and Sungai Buloh -Serdang-Putrajaya MRT Lines, Kuala Lumpur-Singapore High Speed Rail, and the Pan-Borneo Highway. Although the property sector may see moderation in market activity for 2016, the slowdown would still be manageable. The property sector will be able to endure this challenging period with adjustments and corrections expected from both the demand and supply side.
STARPROPERTY.MY WEDNESDAY 4 MAY 2016
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iBilik and Propwall
COLOURFUL HISTORIC CITY Combining tradition with modernity has created a unique city without parallel anywhere in South East Asia. By CAITLYN NG LI YUIN liyuin@ocision.com
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T doesn't take much for one to see why George Town, the capital of Penang, was listed as a Unesco World Heritage Site in July 2008. As an acknowledgment of its long and illustrious past that represents the British era from the end of the 18th century, you'll find yourself enjoying a truly well-preserved cultural and historical heritage that is both discernible and intangible. Named after the British monarch, King George III, the city is a great example of a multicultural society, which is evident in the melting pot of cultures, religion and food. However, what truly characterises the city is its architecture. With an eclectic mix of romantically crumbling shophouses, colonial buildings and houses, soaring skyscrapers, as well as gleaming shopping complexes, George Town is a city that rewards its explorers with hidden gems. Yet perhaps, the greatest reward comes at the end of all the exploration: the incredible food. There's a reason why Penang is widely considered as the food capital of Malaysia. Everywhere you look, you will be rewarded with a myriad of choices, from the coffee shops and roadside stalls of yesteryear, to the modern restaurants and
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food courts. Home to a melting pot of ethnic groups, the food bears interesting nuances of flavour from different influences to please every palate. Although present-day George Town is very compact, the older parts of the city is a labyrinth of narrow lanes and alleyways, allowing one the pleasure of a leisurely stroll and getting lost in the memories of bygone days. Some of the more popular attractions are within easy reach, such as Cheong Fatt Tze Mansion, Fort Cornwallis, Penang Hill, Khoo Kongsi, Chew Jetty, St George's Church and Kek Lok Si Temple. But if you'd like to forget about all the fabulous architecture and world-renowned local fare (for a while at least), then you must check out the quirky and eye-catching street art. It first started out as a series of 3D cartoon steel artworks affixed to walls around the city, detailing local customs and heritage with humour. As these gained international fame, a series of unique public paintings, combined with actual everyday objects, became the next big thing, drawing crowds of people eager for selfies. With so much to see and do in George Town, there's no time to lose. Start planning your trip to this exceptional city today.
Check out short-term stays at George Town on iBilik.my www.ibilik.my/short_term_rentals/georgetown
ESSENTIALS FOR OUT-OF-AREA PROPERTY INVESTMENT B By NURUL ASMUI MD AZMI asmui@ocision.com
UYING an investment property is still one of Malaysian’s favourite ways to invest. Investing in property means you are using your time and money to increase your wealth and securing your financial future. The best advice that any property investors can give is to purchase a property that is affordable to you. By all means, take a mortgage loan that is lesser than what you are eligible for, and do not spend a dime more than
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It is a sign that there is potential capital appreciation when the out-of-area property is surrounded by housing developments that are mostly occupied. As the property demand in the area is high, it is more likely that the property will increase in value.
what you can afford. The escalating property prices in KL and its surrounding areas may put off many first-time property investors. Location definitely plays an important role in property investment, but what if you can’t afford those high-class areas with plenty of existing and future infrastructure? The answer is, it doesn’t matter when and what property you want to invest in. Pay attention to what are in the vicinity of the property that you are searching for.
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Properties that are situated nearby workplaces will be easier to rent out. Find an out-of-area property that has hospitals, universities, companies and organisations within its vicinity, preferably less than 30 minutes’ drive away.
If you can’t afford to invest in high-end locations, then there is no harm in opting for properties that are in out-of-area cities such as Serendah and Dengkil. The top three features to look out for when investing in out-of-area properties are the nearby residential areas, workplaces and modern amenities, making sure that the property fits the “Live, Work, Play” lifestyle.
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Amenities such as shopping malls, cinemas, recreational areas and restaurants have profound impact on property values. Many homebuyers or renters will be looking for a property with good access to entertainment and recreation. The secret to out-of-state property investors’ success is to look for properties with positive cash flow. Choosing properties with all these three features are more likely to be ideal investments.
STARPROPERTY.MY WEDNESDAY 4 MAY 2016
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THRIVING WESTERN KUALA LUMPUR
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Mature areas and luxury property come together seamlessly in the highly sought after locale. By VIKNESH ASHLEY
vikneshashley@thestar.com.my
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HE Western region of Kuala Lumpur focuses on five key areas that are mature and have been a prominent area for investment among seasoned homebuyers in Malaysia. Some of the popular areas that fall under the West Kuala Lumpur region include Bandar Utama, Mont Kiara, Damansara Heights, TTDI as well as Sri Hartamas. One glance at these locales and one would realise that these areas are the luxury residential parcels of Kuala Lumpur offering a good balance of amenities as well as luxury properties to befit the requirements of upper-class property purchasers. Nonetheless, these mature areas have also been the repeated choice of expatriates that work in Malaysia as well as foreigners that enjoy Malaysia as a home for retirement. Parts of Western Kuala Lumpur currently hold large shopping malls, international schools, local and international food and beverage outlets, as well as central business districts catering to a large population of working class residents that frequent the vicinity as well as close by areas such as the Kuala Lumpur city centre. The performance of the landed residential sector in the Klang Valley in the past few years has slowed down. New launches have decreased in 2015 compared to 2014 and evidently, developers are being cautious by launching their projects on a smaller scale. Property buyers are also more cautious in spending and investing, as the global and regional economies become uncertain. Purchasing or investing in property has not been active within the last two years as investors and buyers prefer to hold cash and maintain financial liquidity. Though the property market has softened, some developers still have confidence in the potential of Western Kuala Lumpur. They continue offering properties within the region. Guocoland (Malaysia) Bhd is currently constructing an integrated city development dubbed Damansara City. This development consists of two Grade-A office towers, a two 28-storey luxury residence named DC
Residensi as well as a retail appendix that will be known as DC Mall, that will offer a food- and beverage-centric lifestyle concept mall. This niche development will also host the globally renowned Sofitel Kuala Lumpur, Damansara. DC Mall will present itself as a fourstorey landmark lifestyle mall, housing restaurants, eateries and cafes with 70% of its nett lettable area allocated for food and beverage outlets. Key tenants that would occupy the mall upon completion include Kampachi, Soleil, Charlie Chaplin, Cake Sense, I Love Yoo, Juiceworks as well as several brands that are new to the market that are established operators. The affluent mall will also house the Kuala Lumpur Fertility and Gynecology Centre, one of Malaysia’s leading fertility centres. This boutique mall is fashioned to cater to patrons looking to relax and unwind as well as to those that value the finer things in life. Those looking for a true retail experience can count on the Pavilion Damansara Heights development crafted by Pavilion Group, which will enhance the Damansara Heights locale. Pavilion Damansara Heights will offer residents as well as visitors a brand that is well-loved by Malaysians and tourists. The site is located next to Damansara City and will feature the Pavilion retail galleria, service residences, premier residences and corporate towers that are now exclusively offered as a blue-chip investment opportunities. Over in Mont Kiara, developer UEM Sunrise is developing a residential condominium, dubbed Residensi Sefina Mont Kiara. This property will offer a minimal of three bedrooms to a unit that will be presented in practical layouts, ranging between 1,333sq ft and 1,771sq ft. All units within Sefina are designed
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1 This scene on the Jalan Damansara stretch of the Sprint Highway was captured at 7pm, when the traffic was heavier than usual due to an evening downpour. 2 Arcoris Mont’Kiara, a commercial lifestyle hub that adds vibrancy to the cosmopolitan enclave. 3 Pavilion Damansara Heights. 4 Residensi Sefina Mont Kiara.
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in a north-south orientation with large bedrooms, spacious living and dining areas as well as a functional kitchen. Adding to that, each home will enjoy the luxury of private balconies. This development enjoys unmatched amenities such as proximity to Hartamas Shopping Centre, Publika Shopping Gallery, Solaris Mont’Kiara, One Mont’Kiara, Plaza Mont’Kiara as well as an upcoming lifestyle hub Arcoris Mont’ Kiara, a lifestyle hub underway by UEM Sunrise. Arcoris Mont’ Kiara is located just
6km from the Kuala Lumpur city centre and will further draw expatriates as well as tourists to the élite Mont Kiara territory. Arcoris is designed in response to its locality and neighbouring setting to add diversity and appeal to the present Mont Kiara skyline. It was also fashioned to function as the township's new urban centre in a manner that would match the urbane way of life expected of its dwellers. The development will comprise two blocks of 18- and 35-storeys respectively, holding private luxury residences, business suites, SoHo as well as a boutique hotel.
STARPROPERTY.MY WEDNESDAY 4 MAY 2016
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FEATURED DEVELOPMENT
MITRALAND BRINGS THE OCEAN BREEZE TO KLANG SOUTH 1
Gravit8 offers four uniquely themed residences inspired by Mediterranean, Scandinavian, Japanese and Thai influences. 1 Aerial view of Gravit8. 2 Gravit8 facade. 3 Eight-acre lake park. 4 Nordica drop-off area. 5 Adria dropoff area. 6 Pier8 Porte Cochere.
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By VIKNESH ASHLEY
vikneshashley@thestar. com.my
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RAVIT8 is a self-sustaining lifestyle hub in the Klang vicinity. The mixed development is set within 15 acres of freehold land within Southern Klang’s Kota Bayuemas township and adopts a maritime concept, consisting of a lifestyle mall, service residences, office tower, a hotel and small offices home offices (SoHos). This development that will change the face of Klang has a harmonious blend between nature and construction. Despite many property offerings being showcased within Gravit8, nature still takes centre stage. Water poses a central image for Gravit8 as the entire development is built around a large central water body. The development features an eight-acre
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lake park where residents and visitors can look forward to enjoy a pleasant environment for exercise, recreation and water-centric activities. Gravit8's four residential towers are split to two phases, dubbed Phase 2A and Phase 2B respectively. Phase 2A will comprise the 32-storey Scandinavianand Mediterranean-inspired towers, Nordica and Adria, while Phase 2B will feature Japanese- and Thai-inspired residential blocks named Ashino and Andaman respectively. The four residential towers are styled and named after the various oceans of the world that reflect their respective climatic ambiences. The highlight of the residential component is the three-acre recreation deck, a large green space that leads up to the skies that will paint the garden themes of Mediterranean and Thai, shared by two towers. Each residential tower boasts an individual function hall placed in front of the infinity swimming pool while other facilities include a gym, reading room, game room, kindergarten, playgrounds and designated changing rooms. Additionally, a jogging track covers the entire deck, enhanced by par course equipment and fitness corners. Multipurpose sport courts also flank each side of the deck. Gravit8 also pays close attention to the sun’s orientation to enable energy saving via usage of natural lighting and natural ventilation. Some of the key features taken to
realise these benefits include placing the residential towers in a north-south orientation. This creates a longer façade, resulting in optimum lake views from residential units, as well as accommodating to moderate heat changes. Adding to that, the tower placement ensures that the western rays of the sun are mitigated by a shorter façade via the usage of shear walls that naturally minimise the need for air-cooling. The developer is focusing on the launching of Phase 2A of the residential component of Gravit8, resulting in a 70% booking rate during the private preview event of the project's first residence, Nordica, on April 16. The second block, Adria, is now open for registration. Nordica, Adria, Ashino and Andaman will all sit atop a retail area dubbed Pier8@Gravit8. This retail offering will be arranged in a plaza and courtyard manner along three sides to form an inward-facing retail arrangement to draw the attention toward its maritime concept, further accentuated by a gigantic marine aquarium. Pier8 will feature food and beverage outlets that relate to seafood, taking after Port Klang. This makes the project the first maritime-themed retail experience in Klang. Gravit8 is accessible from the Kesas Highway as well as Jalan Pandamaran via an encircling, pedestrian-friendly vehicular road. Access into the elevated parking is planned along two designated parallel sides for ease of movement. The connectivity of Gravit8 will be further enhanced due to its proximity to Klang’s upcoming LRT stations as well as the readily available KTM station.
Wednesday 4 May 2016
Starproperty.my
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Starproperty.my
Wednesday 4 May 2016