06
APRIL
2016 n m Editio pWEDNESDAY
itPy 6 i-2 C R 201 - 24 A
11am
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ietio- 9n d E h t y t t i Vis0i16 11yamFapmir 2016 i-C APR 2 4 2 22 erty.m p o r P r id Sta Pyram ay • Sunw -9 Apr 7 ity ion, IC t i d e y • I-Cit 2-24 Apr 2
sentiment TO improve
Better absorption rate for unsold housing expected in 2H 2016. > P04-05
INSIDE THIS ISSUE www.starproperty.my
AFFORDABLE HOUSING PROJECTS FOR MALAYSIANS HOLISTIC SOLUTIONS NEEDED TO ADDRESS THE SHORTAGE PROBLEM. > P06-07 www.facebook.com/starproperty.my
Convenience at EkoTitiwangsa
An urban home with qualities that matter. > P18
Prestige at the top of the Golden Triangle
8Kia Peng, King of the Hill epitomises opulence at the heart of Kuala Lumpur. > P20
STARPROPERTY.MY WEDNESDAY 6 April 2016
02
FEATURED DEVELOPMENT
JUST BID IT FOR 5 TROPICANA DREAM HOMES
From Tropicana Gardens, Tropicana Heights, Tropicana Aman and Tropicana Metropark – bid your lowest price at TropicanaJustBidIt.com
1
By Viknesh Ashley
vikneshashley@thestar.com.my
T
ropicana Corp Bhd has recently launched Just Bid It!, Malaysia’s first online property bidding campaign that provides its registrants a chance to bid for five chosen Tropicana exclusive offerings. Just Bid It is Tropicana’s second digital campaign, where the bidder with the lowest as well as unique bid will stand a chance to own their dream homes at their bid price. The campaign is running online at TropicanaJustBidIt.com until May 20, 2016, and it is open to the public. As Malaysia’s first online property bidding campaign, this campaign is crafted by the developer to engage with the community and reward its customers. Participants can choose to bid as low as the given floor price. The most distinctive bidders with the lowest unique bids will walk away with their dream homes. The properties for bidding are Cyperus Residences, Tropicana Gardens (April 1-10 & May 11-20), Parkfield Residences, Tropicana Heights (April 11-20), Bayan Residences, Tropicana Aman (April 2130) and Paloma Residences, Tropicana Metropark (May 1-10). A first-of-its-kind integrated development designed with a transitoriented concept, Tropicana Gardens is poised to become Kota Damansara’s next urban hub. Directly connected to the elevated Surian Mass Rapid Transit (MRT) station, this 17-acre development features diverse components that include highrise residences, designer office blocks, proposed hotel towers and a retail mall, all interspersed with lush greenery. Tropicana Heights encompasses 199 acres of freehold land, replete with lush greenery. Tropicana Heights is anchored by a 16-acre Central Park with a 750m linear lake, dedicated private community parks, seamless pedestrian walkways, including its very own recreational and commercial hub, all of which are complemented by beautiful landscaping and parkland views. True to the group’s eco-friendly vision, all of its original trees have been retained and transplanted into the green area. Situated next to the growing affluent neighbourhood of Kota Kemuning, Tropicana Aman encompasses 863 acres of idyllic setting that offers an array of facilities and features such as a generous 85-acre
2
3
1 Tropicana Gardens offers the best of luxury as well as accessibility and connectivity with the MRT station and shopping mall at your doorstep. 2 The best of a wholesome lifestyle can be enjoyed at Tropicana Aman, which offers gated & guarded 2- and 3-storey link homes surrounded by nature. 3 Tropicana Heights features homes that enjoy the idyllic and dedicated 4.8-acre community park in serenity. 4 Getting to your destination is a breeze, with the Federal Highway directly connected to Tropicana Metropark, thus offering easy accessibility. The direct link from Federal Highway is expected to be completed this year.
4
Central Park, a 7-km vehicular free bike trail/jogging path and green spaces that draw people into a life of relaxation and peace. In line with the unique DNA of Tropicana, the township also features a central community clubhouse with a sports centre and the Tenby International School. Set to transform and elevate the vibrancy of Subang Jaya, the 88-acre Tropicana Metropark features a 9.2-acre Central Park with a man-made lake acting as a ‘green lung’ to the area, a dedicated jogging and cycling track along with an al fresco F&B strip, proposed mall and the GEMS International School.
To enhance the accessibility of this development, Tropicana is also constructing a RM106mil flyover, which will directly link the project to the Federal Highway. Tropicana Corp senior general manager of sales and marketing Ung Lay Ting said: “Following our first successful ‘Dream Investment’ digital campaign in 2015, we developed good relationships with our customers and understand their needs better.” Ung added: “It also allowed us to better serve our customers and promote our integrated properties that will enrich their lives. Today, we are very pleased to
introduce this second digital campaign and we believe that it will allow us to continue to engage with our customers.” Ung also commented that digital marketing has become the fastest growing trend because it has enabled people to review, shop or bid freely at their convenience, anytime and anywhere. People have access to the Internet all the time, so they can shop or bid all the time. Ung said: “This also enables us to reach a larger audience, widening our target market nationwide, and provide an opportunity for everyone to own a Tropicana home.”
Wednesday 6 April 2016
Starproperty.my
3
STARPROPERTY.MY WEDNESDAY 6 April 2016
04
COVER STORY
Soft Housing Market Outlook Improved sales performance indicates a silver lining.
By LEE YAN LI
lylee@thestar.com.my
T
HE government’s cooling measures and the rejection by banks for end-financing have resulted in a pessimistic outlook on the property market in the first half of this year. However, property sales have risen about 19% in the second half of 2015 when compared to the first six months of the same year. According to the Rehda Property Industry Survey 2H 2015, units launched in the first half and second half of 2015 have decreased from 10,829 to 9,938, although the market has seen improved sales performance, as 5,195 units (52%) were sold in the later period, compared to 4,371 units (40%) sold in first half of 2015. The improving sales were reported mainly for the apartment or condominium units, which have seen an
increase of about 136% from 779 units in the first half to 1,844 in the second, even though less units were launched. At the same time, the sales of single-storey terrace houses and low-cost or flat units have also increased significantly. However, the market was seen suffering a slowdown, especially when compared to the days of people queuing up to grab newly launched properties. Rehda president Datuk Seri FD Iskandar said that before 2014, the launched units could be sold out in a week, but it takes up to six months nowadays to reach 60% sales. As more developers shifted their focus to lower priced housing projects, property prices were likely to see negligible increase. Sixty eight percent of the respondents reported being on the pessimistic side on the market outlook for the period of the first half of 2016, while 28% remained neutral and only 4% expressed optimism.
68
%
FD Iskandar said 68% of the respondents reported being on the pessimistic side on the market outlook for the period of the first half of 2016, while 28% remained neutral and only 4% expressed optimism.
However, they believed things could improve in the second half of 2016, as less than half (49%) were pessimistic, and 44% were neutral. At the same time, 7% were optimistic about the market, a significant increase compared to the earlier period. For the second half of 2015, the top five reasons for unsold units were the difficulty of securing end-financing and loan rejections, unreleased units under bumiputra quota, low demand and interest, the existence of odd/corner/ special units, and undesirable locations such as the proximity to T-junction. The difficulty of end-financing and issue of loan rejection rates of 68% were the number one reason that resulted in the soft property market. The increase was significant compared to the loan rejection rate of 52% during the first half of 2015, when unreleased bumiputra quota constituted the main reason of unsold units. Unsold units in Kuala Lumpur
and Johor were mainly higher priced units, while Pahang, Perak, Penang and Kedah faced difficulties in the affordable housing segment.
Challenges in financing
Rehda had urged Bank Negara to relax the terms of loan financing for first-time homebuyers who purchase affordable houses. The factors of difficulty in financing included buyers’ credit history in CTOS and CCRIS reports, ineligibility of buyers’ income, lower margin of financing, banks requesting more documents and limited quota for lowcost or affordable housing. While the banks have conventionally examined applicants’ net income for approval of end financing, it is important to consider the other earnings such as overtime and allowances as well.
STARPROPERTY.MY WEDNESDAY 6 April 2016
The government should also consider reinstating the Developers Interest Bearing Scheme (DIBS) for first-time homebuyers of affordable housing properties, and 62% respondents agreed with the sentiment. While Malaysia’s personal household debt at 86.8% of gross development product was considered one of the highest in the region, it was important to consider the segmentation of the debt.
05COVER STORY
The major component of household debt included residential mortgages (around 30%), car loans (around 20%) and credit card or personal debt. While residential properties gained value over the years, other segments would see a substantial or total loss. Bank Negara should encourage citizens to develop portfolios that build wealth. Sixty three percent of the unsold units were priced above RM500,000 [46% (RM500,000 - RM1mil),
62% agreed that DIBS should be reinstated for properties below RM500,000 for first-time buyers.
65% respondents opined
that DIBS will improve their sales performance.
From left: Rehda patron Datuk Ng Seing Liong, president Datuk Seri FD Iskandar, deputy president Datuk Soam Heng Choon and vice president Datuk Anthony Cho Tian Han at the unveiling of Rehda's property industry survey 2H 2015.
14% (RM1mil - RM2.5mil), 3% (above RM2.5mil)]. Properties below RM500,000 constituted 37% of the unsold units. Residential properties continued to lead newly launched developments at reduced numbers, while commercial units recorded a slight increase. The survey indicated that domestic buyers continued to lead the residential market, while buyers purchasing for investment purposes have decreased from
“The major component of household debt included residential mortgages (around 30%), car loans (around 20%) and credit card or personal debt. While residential properties gained value over the years, other segments would see a substantial or total loss. Bank Negara should encourage citizens to develop portfolios that build wealth.
23% in 1H 2015 to 13% in 2H 2015. Strata launches have overtaken landed properties by only 1%. Most strata properties were based in Selangor and Kuala Lumpur. Sixty one percent respondents have reported increased cost of business operations up to 10%, prompting them to implement various cost-cutting measures. Two thirds of the respondents noted that GST had impacted the housing prices, mainly due to an increase of operating cost. About 76% of developers indicated that the market suffered a slowdown due to GST. Eighty six percent of the developers absorbed the corresponding increased cost to differing extents, while 14% chose to transfer the cost to the purchasers. Rehda deputy president Datuk Soam Heng Choon said the property sector is not heading towards a crash, despite all the difficulties faced by developers and lower buying sentiment. He cited the Asian Financial Crisis in 1997/98, in which the market had seen 50% buyers renegading from their purchases, prices suffered a sharp drop of around 30% to 40% and the phenomenon of rampant nonperforming loans. However, he agreed that the current property market is going through a lull. Savills Malaysia executive chairman Chris Boyd echoed the sentiment and listed a sharp increase in interest rate and a sudden drop in housing prices as indications of a housing market crash, which has yet to be seen in Malaysia. However, the property market is expected to see an improvement in the second half of 2016, with a better market absorption rate for unsold housing units.
STARPROPERTY.MY WEDNESDAY 6 April 2016
06
MAIN FEATURE
Housing Malaysians WitH affordable Projects Holistic solutions needed to address the shortage problem.
W
ITH house prices having risen beyond the affordability of many average Malaysians, the need for well-planned, quality and affordable housing projects to meet the needs of a growing number of new households cannot be overemphasised. This situation is especially noticeable in the urban areas where the price increase is most obvious. Having a roof over the head is a basic necessity for security and for families to thrive. The high price of housing has rendered buying a house an unaffordable proposition for the lower income and even the middle-income groups, which further underscores the urgency in the need for more affordable housing projects to be built to prevent a social crisis of “house-less Malaysians”. As a gauge, the level of affordability for housing can be measured as a multiple of annual median income to the median house price. An affordable market is one where the median house price is three times the annual median household income. Khazanah Research Institute (KRI) in a report revealed that Malaysia’s housing market is considered to be “seriously unaffordable”, with a median house price of more than four times the median annual household income. The situation has contributed to a growing number of Malaysians who are unable to afford their own home as many average Malaysians continue to be locked out of the housing market. The supply mismatch situation in the housing market needs to be remedied, as the price of houses in the urban areas, including the Klang Valley and Penang, continued to be beyond affordable levels as most of the new launches were priced at more than the affordable price of up to RM300,000 a unit. The public and private sectors need to come up with urgent workable solutions to prevent the mismatch problem from worsening. Although there are developers that are building compact-sized homes of less than 1,000 sq ft with high density approvals to enable the projects to be built economically and priced in the range of RM300,000, such housing units are still in severe short supply. Industry observers concurred that one of the priority measures that should be implemented is to set up a dedicated housing board or agency that has the statutory power to undertake the masterplanning and implementation of the affordable housing policy at both the Federal and state levels. Currently, a number of agencies have been tasked to build affordable housing. However, there is no single dedicated entity that is empowered to draw up the blueprint of the big picture on the actual needs and supply situation of affordable housing,
By
ANGIE NG angie@ thestar.com.my
Angie Ng is the content editor of StarProperty.my.
SP Setia Bhd's Seri Baiduri Apartments in Setia Alam, Shah Alam, is a good model of a wellplanned, affordable housing project. The apartments were sold for RM205,000 a unit when the project was launched in August 2012.
and to arrange for the necessary resources, principally the land for the projects, to expedite the planning and building process. Among the government’s affordable housing programmes include PPA1M houses under the 1Malaysia Civil Servants Housing Programme, People’s Housing Programme (PPR), Syarikat Perumahan Nasional Bhd‘s (SPNB) Rumah Mesra Rakyat programme, Housing Aid Programme (PBR) and Federal Territories affordable housing projects. DTZ Malaysia executive director Brian Koh said instead of having too many agencies doing the same thing, SPNB and Perumahan Rakyat 1Malaysia or PR1MA should be amalgamated to be more effective in spearheading the affordable housing needs of the people. “Given that the free market forces are unlikely to provide the solution, the government will need stronger and more effective clout to fulfil the role, and in cases where government land is available, priority should be for affordable housing projects, instead of building more commercial developments.” Knight Frank Malaysia managing director Sarkunan Subramaniam said a longterm policy that also rope in the private sector developers in building affordable housing schemes would work better. It is worthy to draw from the experience of other countries, including Singapore and South Korea, which showed that a
dedicated agency on affordable housing has alleviated the demand/supply mismatch in those countries. Singapore’s Housing and Development Board (HDB) is a good model to show that consolidating various affordable housing entities under one agency has resulted in effective resource planning and lowered development costs through economies of scale. The adoption of the Industrialised Building System (IBS) for affordable housing programmes by Singapore’s HDB has contributed to labour cost savings, shorter construction time and improved quality, compared to the conventional construction methods. Bank Negara in its Annual Report 2015 highlighted an acute shortage in the affordable housing sector, noting that while affordable housing initiatives by the Federal and state governments, SPNB and PR1MA, have gathered some momentum, the current level of house-building in the affordable housing segment has not been sufficient to meet demand. This is despite a substantial amount of affordable housing units that are currently under various stages of construction. A substantial increase in the supply of affordable housing is necessary. An estimated 202,571 new houses will be required annually between 2016 and 2020 to match the estimated growth in households during this period, approximately 2.5 times the
number of houses being built annually in the previous five years. The shrinking size of households, combined with continued growth in income level and population, as well as rapid urbanisation, are expected to remain as important drivers of the overall demand for houses, especially in the major urban areas.
a matter of priority and collaboration
Consistent with the underlying demand, especially in the major urban and employment centres, it is crucial to formulate a holistic planning and implementation system to provide sufficient quality housing that is affordable for the low- and middle-income households. A comprehensive and carefully designed national planning policy for the property market will help support the government’s affordable housing policy, while managing oversupply of commercial properties. CH Williams Talhar & Wong’s (WTW) Property Market Report 2016 stated that Malaysia’s home ownership as a whole stood at 72.5% in 2010 and urban home ownership fared relatively poor at 69.1%. In Kuala Lumpur and Selangor, the figures dropped to 53.5% and 66.9% respectively. Compared to WTW’s estimate of 406,620 affordable houses that are
STARPROPERTY.MY WEDNESDAY 6 April 2016
07MAIN FEATURE Since 2010, New Launches in Malaysia Have Been Increasingly Skewed towards Houses Priced above RM500,000
Public Affordable Housing Programmes Number of Housing Units Schemes
Completed
Under Construction
Planned
Total
Program Bantuan Rumah (PBR)
56,668
8,928
-
65,596
Program Perumahan Rakyat (PPR)
12,025
27,087
-
39,112
Rumah Mesra Rakyat 1Malaysia (RMR1M)
32,948
2,803
-
35,751
560
18,400
-
18,960
1Malaysia Civil Servants Housing (PPA1M)
-
13,539
-
13,539
Rumah Wilyah Persekutuan (RUMAWIP)
-
9,309
-
9,309
Rumah SelangorKu
-
15,721
19,729
35,000
Perumahan Rakyat 1Malaysia (PR1MA)
'000 units 100 75 50
Monthly Annual Median Median Income Income (RM) (RM) (1)
Est. Affordable House Price1 (1) x 3
24%
9% 19%
25
72%
0
2008 Less than RM250,000
List of states and multiple of median house price over annual household income State
36%
All House Price (RM) (3)
Median Multiple (3)/(1)
Price Gap (3) - (2)
34%
43%
42%
21%
2011
2014
RM250,000 - RM500,000
Above RM500,000
Source: National Property Information Centre (Napic)
Severely Unaffordable Sabah
3,745
44,940
134,820
435,396
9.7
300,576
Sarawak
3,778
45,336
136,008
365,814
8.1
229,806
House Prices Have Grown at a Faster Pace than Income Levels
Kuala Lumpur
7,620
91,440
274,320
690,541
7.6
416,221
CAGR, %
Pulau Pinang
4,702
56,424
169,272
358,245
6.4
188,973
10
Selangor
6,214
74,568
223,704
445,640
6.0
221,936
Malaysia
4,585
55,020
165,060
297,934
5.4
132,874
Kelantan
2,716
32,592
97,776
166,247
5.1
68,471
Seriously Unaffordable Pahang
3,389
40,668
122,004
204,898
5.0
82,894
Terengganu
3,777
45,324
135,972
210,071
4.6
74,099
Perak
3,451
41,412
124,236
168,955
4.1
44,719
Moderately Unaffordable Kedah
3,451
41,412
124,236
160,918
3.9
36,682
N Sembilan
4,128
49,536
148,608
185,339
3.7
36,731
Johor
5,197
62,364
187,092
232,136
3.7
45,044
Perlis
3,500
42,000
126,000
148,470
3.5
22,470
168,381
2.8
-12,663
7.9
8
7.3
6 4 2.5
3.2
2 0 2004-2007 Average house prices
2009-2014 Average household income
Source: National Property Information Centre and Department of Statistics, Malaysia Household Income and Basic Amenities Survey Reports
Affordable Melaka
5,029
60,348
181,044
Source: Napic’s House Price Index 1Q 2015, Department of Statistics and WTW Property Market Report 2015.
Targets for Public Affordable Housing under 11MP Programme
Housing Unit (Malaysia)
PBR
47,000
PPR
50,000
PR1MA
380,000
PPA1M
88,000
RMR1M
55,000
RUMAWIP
33,000
Total
653,000
Average Annual Supply Target (within 5 years)
130,600
Total Affordable Housing Under-construction
110,000
Source: 11th Malaysia Plan
needed, the government has targeted the construction of 653,000 units, and the problem will be aggravated by changing demographic factors. While the population will reach 38.6 million by 2040, urbanisation is increasing, households are getting smaller, increasing family units from 182 to 250 per 1,000 people by 2020. The WTW report pointed out that generally affordable homes are defined as houses priced below RM300,000, and only PR1MA and PPA1M have offerings at this price benchmark, which made up only 5% to 10% of the total units offered.
Data from Department of Statistics showed that the population of Malaysia was 30.1 million in 2014 while average and median household income were recorded at RM6,141 and RM4,585 respectively. Applying broad ratios, WTW estimated a total need for 406,620 affordable houses for first-time buyers. It calculated the overall affordability level by states based on the respective household income level of each states. (Refer to the tables) Overall, six states are within the severely unaffordable category, three classified as seriously unaffordable, four as being
moderately unaffordable and only Malacca is deemed to be affordable. Sabah and Sarawak lead the list being the top two most unaffordable states in the country, followed by Kuala Lumpur. However, at the individual level, latest data from the Department of Statistics estimated that in 2014, median monthly salaries or wages was RM1,700. This was consistent with the data from EPF showing that 75% of active EPF members earned less than RM2,000 per month and about 15% earned between RM2,000 and RM5,000 a month. It said high housing prices are often blamed on land costs but the causality actually runs in the opposite direction; rising house prices result in rising land prices. CH Williams Talhar & Wong Sdn Bhd managing director Foo Gee Jen said while the programmes for affordable housing were to address the requirements of first-time homebuyers, the plans must be matched by actual deliveries. The actual number of affordable houses to be constructed may fall far below target. Demand for affordable homes still exceeds the current supply. With most of the new residential schemes that were launched being priced between RM500,000 and RM1mil, the population at the bottom 40 income bracket will still find these new properties unaffordable. To involve the private sector developers, the government needs to look into new incentives for it to develop affordable housing.
“Private developers have found it challenging to build affordable homes without the government’s support, with land cost, construction cost and compliance getting expensive. Hence, the government may need to look at additional incentives for new affordable housing supply, such as sale of state land at low price to the developers to build such housing,” he added. SP Setia Bhd acting president and CEO Khor Chap Jen said one of the biggest challenges facing developers is the availability of suitable and reasonably priced land and also the ever-increasing compliance cost. Some of these issues can be overcome with better engagement between the government and the private sector. As for quality, developers are always looking at ways to improve the quality of affordable housing projects but it is a matter of balancing the cost of construction. “At SP Setia, we utilise the Industrialised Building System, which is a construction process that uses techniques and building systems that involve prefabricated components and on-site installation. With the benefit of economies of scale, our construction cost can be maintained or even reduced while achieving a better quality finish for our affordable housing projects,” he disclosed. The developer plans to launch approximately 3,500 affordable housing units, which include flats, apartments, Rumah Mampu Milik and Rumah Selangorku across its townships.
STARPROPERTY.MY WEDNESDAY 6 April 2016
08
FEATURED DEVELOPMENT
Driving Penang forward
Legal and transportation developments are expected to drive Penang’s economy and bring back the lustre in Penang Island’s property developments.
By Mak Kum Shi
makks@thestar.com.my
V
arious legal trends, economic drivers and transportation systems are expected to impact stakeholders in Malaysia and Penang’s property market. Ho Chin Soon Research chief executive officer Ishmael Ho indicated various transportation infrastructure developments that are planned for Penang. Such developments include the Tanjung Tokong, Raja Uda-Mertajam/ Alma and Ayer Itam monorail lines, Bayan Lepas and George Town-Butterworth LRT, Seberang Jaya-Batu Kawan BRT and tram at George Town. The development of such infrastructure is expected to improve accessibility for residents and tourists. Improvements in accessibility may improve productivity and drive economic growth within the state. Chur Associates managing partner Chris Tan recently shared at StarProperty. my Forum 2016 that Penang’s legal trends included possible oversupply of affordable housing and delays in the issue of advertising permits and developers’ licences. Other trends in Penang included restrictions on foreign purchasers of Penang properties, talent retentionoriented housing policies, curbing of speculation in the property market and the state government taking the lead in developing their housing schemes without the assistance from the Federal Government. The requirements for affordable housing in Penang were that applicants applying for low-cost, medium-cost and affordable housing should be Penangborn working in the state or that they have been residing there for at least five years from the date of application. Applicants from the talented and skilled category should be diploma or degree holders with a minimum of two years of working experience, be employed in Penang, and undertake to be in the state for a minimum of five years from the handover of property. Such policy requirements imply elements of talent retention to facilitate economic development for the state. Khalil Adis Consultancy Pte Ltd founder Khalil Adis commented that the economic drivers for Penang included tourism, food & beverage, and the free trade zone at Bayan Lepas. The Bayan Lepas Free Industrial Zone is a high-tech industrial zone on the southern part of Penang island. It has attracted businesses such as ITW Meritex, Sanyo, Lemtronics and Bosch to the industrial zone. Penang has been ranked eighth in the Top 40 global destinations by The Guardian , and that more tourists have fallen for its charm and see it as an ideal retirement destination. It is one of the top retirement destinations among foreign retirees under the Malaysia
A scale model of the Eco Terraces development at Penang Island.
70
%
Eco World’s 333-unit Eco Terraces freehold strata gated and guarded residential development at Jalan Paya Terubong. This low density development uses 30% of the development land for Eco Terraces. 70% of 12.79 acres is dedicated to natural elements with undulating green terraces and captivating water elements.
My Second Home (MM2H) Programme. Khalil commented that the housing market in Penang island is driven by Penang residents, foreigners and retirees. Penang residents are very loyal and tend to only buy within the island. As a result, property prices tend to appreciate due to the ‘island effect’. The average price per square foot ranges from RM350 to RM1,000. Average quantum price exceeds RM500,000, while average income of residents on Penang island exceeds RM5,000 per month. To make informed investment decisions, investors should check the development and transportation masterplans, budget allocations from the government, economic drivers and job creation events. Eco World’s 333-unit Eco Terraces freehold strata gated and guarded residential development at Jalan Paya Terubong is expected to benefit from the transportation infrastructure developments taking place on Penang island. The development is close to Fairview International School, Queensbay Mall, Penang International Airport, the first and second Penang Bridges, and George Town. This is in addition to the proposed Ayer Itam monorail that is expected to pass through its neighbourhood. This low-density development uses 30% of the development land for Eco Terraces. Seventy percent of 12.79 acres is dedicated to natural elements with undulating green terraces and captivating water elements. Eco Terraces has five-star facilities,
protected existing green slopes and uses Green Building Index (GBI)-certified products. Eco World Development Sdn Bhd general manager Khoo Teck Chong shared that investors are very choosy when putting their money in. They have to look at the location and background of the developer. Developers have to put value into the development. “The perspectives that we show and the actual pictures, the objective is that the reality is better than the perspectives. We envision to do, whatever that we show on the brochure, we do better than the brochure,” Khoo stated.
“Penang has been ranked eighth in the Top 40 global destinations by The Guardian , and that more tourists have fallen for its charm and see it as an ideal retirement destination. It is one of the top retirement destinations among foreign retirees under the Malaysia My Second Home Programme.
Penang’s transportation masterplan is expected to enhance accessibility for residents and tourists in the state. Source: Ho Chin Soon Research
Wednesday 6 April 2016
Starproperty.my
9
10
FEATURED DEVELOPMENT
STARPROPERTY.MY WEDNESDAY 6 April 2016
PROPERTY EXHIBITION FORESEES HIGH TURNOUT Developers will be showcasing their flagship projects at Sunway Pyramid. By NURUL ASMUI MD AZMI asmui@ocision.com
S
TARPROPERTY.MY Fair 2016 is returning on the back of the fast-moving and thriving Klang Valley property market with distinguished developers. The highly anticipated four-day event, organised by StarProperty.my, will be held in Sunway Pyramid, one of Klang Valley’s most renowned shopping malls, at Blue Concourse Level LG 2 from tomorrow until Sunday from 10am to 10pm daily. The fair is a proven platform for individuals and investors to connect and lookout for real estate projects. Established developers IJM Land Bhd and Ekovest Bhd are participating as premium partners of the fair. Other participating developers include Titijaya Land Bhd, Tropicana Corp Bhd, Sunway Property, Sime Darby Brunsfield Holding, Knusford Bhd, OIB Group, MCT Bhd and Nusmetro. Designed to cater to prospective property owners, the event expects a better turnout of homebuyers and investors seeking a wide range of property developments within various budgets and locations. Don’t miss the chance to find your ideal property and learn about them from the developers’ representatives. Some of the developers are offering add-on incentives and discounts for visitors at the fair. Besides a broad range of exclusive offers, homebuyers at the event stand a chance to win shopping vouchers worth more than RM33,000. Visitors to the fair can join in the ‘Happy Hour’ for lucky draw, which will have three different sessions on Saturday and Sunday, at 1pm, 4pm and 7pm. For more info, logon to 07 - 10 APR 2016 10am - 10pm fair.starproperty.my
SUNWAY PYRAMID
STARPROPERTY.MY WEDNESDAY 6 April 2016
11FEATURED DEVELOPMENT
Allure of Kota Baru
Crafts, cuisine and culture come together in a conservative city. By CAITLYN NG LI YUIN liyuin@ocision.com
O
NE can expect to find Kota Baru, Kelantan's capital city, well-developed and filled with many places of interest, not to mention local fares that are easily obtainable. Granted, it is a lot more laid-back and relaxed, compared to larger cities like Kuala Lumpur and George Town, but it does make for a great overnight stop for those who are travelling to Thailand or Pulau Perhentian. It would do visitors well to take note that Kota Baru is a socially conservative city with certain cultural and religious sensibilities, due to its primarily Muslim residents. Due to the city's geographical proximity to the southern border of Thailand, visitors can also expect to find slight nuances of cultural influences from the Thais. The traditional day and night markets not only sell a variety of items such as clothing, batik, crystals, gemstones and kites, but also delicious Kelantanese food such as ayam percik, nasi kerabu and keropok lekor. Visitors can pay a visit to Pasar Siti Khadijah (central market), Bazar Tok Guru or Wakaf Che Yeh for their dose of retail therapy, and be prepared to fill their bellies with the unique cuisine. Visitors to Pantai Cahaya Bulan can check out the batik shops or savour some fried seafood or refreshing coconut water. The beach's original name was 'Pantai Cinta Berahi', but was deemed a little too indecent for the state government and was subsequently renamed. Tourists will also be able to immerse themselves in culture by visiting various museums, the old royal palace and former royal buildings in the centre of the town, allowing themselves to marvel at the elegant architecture as well. There are also beautiful temples to visit, such as the Wat Pothivihan (home to a huge reclining Buddha) and Wat Mai Suwan Khiri (intricate dragon boat). Nature-loving tourists will be pleased to know that they can enjoy the views of Fireflies Garden along a river in a traditional Malay boat. So come along and discover the hidden gems of this city, a good base for experiencing all that Kelantan has to offer.
Check out short-term stays at Kota Baru on iBilik.my www.ibilik.my/short_term_rentals/kota_bahru
6 Reasons To Hire A Real Estate Agent By CAITLYN NG LI YUIN liyuin@ocision.com
1
Professional: Ideal to
have two registered real estate negotiators/agents (REN/ REA) to represent buyer or seller individually. Not uncommon to sometimes only have one REN/REA between two parties. Since all REN/ REA are required to be registered with the authorities, they are governed and bound by a code of conduct throughout the entire sales process.
6
Smooth process: At the end of it all, they are responsible for facilitating the contracts and escrow to a successful sales close. After closing, they will also still be in touch or on standby to assist in case there are any further questions that pop up after the excitement has settled.
2
Experience: For sellers, agents know how to
market the property aggressively and in all forms of media, especially popular social platforms such as Propwall.my and StarProperty.my. For buyers, agents will have easy access to all properties listed by other agents; they can help to track down properties that meet the criteria and set up the necessary appointments. Above all, they are skilled at keeping up good relations on both sides.
5
Background search:
Real estate agents are required to perform necessary checks on a variety of important documents, and this process is vital to ensuring that no detail is overlooked which may cause any complications after the sale. Some of the documents include caveats as well as the title (ownership, property details, property size, etc).
3
Pricing: For sellers,
agents help to put the right price tag on; not too high till it becomes a stale listing, and not too low till money is left on the table. For buyers, they have a wealth of detailed market information to find the dream home in an ideal neighbourhood at the right price.
4
Negotiating: A tricky business to handle the nitty gritty details such as complaints or counter-offers. Real estate agents are professionals who have been trained to present their respective client's case in the best light and are able to remove themselves from the emotional aspect in order to close the deal successfully.
STARPROPERTY.MY WEDNESDAY 6 April 2016
12
AREA FOCUS
CONTEMPORARY LIVING WITHIN AN AFFLUENT TOWNSHIP Ara Damansara is booming with different types of property developments offering many facilities and amenities. By NURUL ASMUI MD AZMI asmui@ocision.com
A
RA DAMANSARA is thriving as an affluent residential township in one of the last parcels of freehold lands in Petaling Jaya North in the district of Petaling, Selangor. Developed in 1999 by Sime Pilmoor Development Sdn Bhd, a wholly owned subsidiary of Sime Darby Bhd, the 299-hectare residential township project was launched in 2000, and is currently managed by Sime UEP Development Sdn Bhd. Located within the vicinity of established residential and commercial areas in Damansara and Kelana Jaya, Ara Damansara is poised to be a prominent township, offering a lifestyle that promotes close-knit community living. Upon completion, the affluent township will encompass approximately 4,000 units of various property types, including bungalows, double-storey linked and semidetached houses, medium-cost and low-cost apartments, neighbourhood shops, as well as shop offices. As an attempt to provide a safe township concept for the residents, Ara Damansara is among the first township to comply to the Safety City Initiative standards of the Federal Department of Town and Country Planning (FDTCP). The township has a 24-hour CCTV surveillance system, street patrols, as well as guard houses at every point of precinct.
1 1 Oasis Corporate Park is a mixed development comprising lifestyle office suites, corporate office towers, a business and leisure hotel, contemporary service suites and a bustling lifestyle centre. 2 Sime Darby Property is the pioneer of Ara Damansara. 3 H2O Residences featuring dazzling interlocking ice-cubes facades.
3
Distinguished developments
One of the well-known residences in Ara Damansara is the Ara Hill, a signature development by Sime Darby Property. It is an exclusive residential development that consists of condominiums and villas that are designed in a resort-styled setting. Set in a low density enclave of only 25 units per acre, there are 110 villa units ranging from 1,948 sq ft to 4,715 sq ft with an average price of RM700 to RM800 psf, and 290 condominium units ranging between 1,442 sq ft and 4,532 sq ft with an average price of RM650 to RM750 psf. Some of the facilities that are available for the residents of Ara Hill are a community hall, a clubhouse with swimming pool, tennis courts, squash courts, gymnasium, children’s playground, as well as a 1.5km walking path that is surrounded with lavish tropical landscape. Besides that, the largest integrated development in Petaling Jaya North is on the prime freehold land of Ara Damansara. Sprawled across 85 acres, Oasis Damansara infuses living, leisure, retail and business to
2
13.4% When we take a closer look at the prices of residential property in TTDI , the average price change from 2013 to 2014 for single-storey terrace is 13.4%, whereas for double-storey terrace is 6.0%.
create a cohesive development environment. Some of the completed and current developments in Oasis Damansara include Oasis Gallery, Oasis Square, Oasis Plantation, Oasis Corporate Park, Oasis Rio and Oasis Mall. Another ongoing project in the centre of Ara Damansara township is H2O Residences, a prestigious development by Titijaya Land Bhd. Aimed to be the first of its kind in Malaysia, this residential development, inspired by the beauty of water, features stunning architectural design with its signature facade of interlocking icecubes. Slated for completion by December 2017, H2O comprises three blocks of service apartments and one block of Small Offices Home Offices (SoHo). For future developments, the awardwinning Sime Darby Property has an upcoming development that will be built near a LRT station, which is currently under construction as part of its Transit Oriented Development (TOD) project. Another upcoming development is Cantara Residences, another renowned project by Sime Darby Property, which consists of four towers of service apartment units with built-up ranging between 650 sq ft and 1,500 sq ft.
Excellent location
Developed on one of the most soughtafter addresses within the Klang Valley, Ara Damansara is situated within close proximity to numerous well-established residential areas and townships such as Taman Tun Dr Ismail (TTDI). When we take a closer look at the prices of residential property in TTDI (as shown in Table 1), the average price change from 2013 to 2014 for single-storey terrace is 13.4%, whereas for double-storey terrace is 6.0%. The capital appreciation in TTDI
is just an example of how the prices of properties near Ara Damansara have escalated in past years. Established in a prime location of Petaling, Ara Damansara itself has also seen a steady rate of appreciation since its launch. Thus, there is a high chance that the prices of the properties in Ara Damansara will command a high value due to its exclusive neighbours. Ara Damansara has excellent connectivity to various parts of the Klang Valley. It is served by the Federal Highway, and is strategically located at the north and west of New Klang Valley Expressway (NKVE), south of Puncak Alam Highway, as well as being near Subang Jaya-Kelana Jaya Interchange. In addition to the easy accessibility to numerous major roads, there are aplenty of amenities available within the vicinity of Ara Damansara. It is located between the Tropicana Golf and Country Club and the Saujana Golf and Country Club. Other amenities include CITTA Mall, Jaya Grocer, Giant, Tesco, IPC Mall, Ikea, The Curve and 1 Utama. There are also public amenities nearby such as police stations and Ramsay Sime Darby Medical Centre. With its strategic location, excellent connectivity and prime neighbourhood, Ara Damansara’s address is second to none.
Table 1: Prices of Residential Property District/ Mukim and Scheme
Taman Tun Dr Ismail single-storey terrace
Sample Average Size Land Area (s.m.)
3
Taman Tun 17 Dr Ismail double-storey terrace Source: JPPH
Average Floor Area (s.m.)
Price Range (RM/Unit)
Average Price Chance (%)
2013
2014 1,060,000 - 13.4 1,100,000
178
119
882,000 1,060,000
171
180
1,050,000 - 1,160,000 - 6 1,550,000 1,770,000
STARPROPERTY.MY WEDNESDAY 6 April 2016
13NEWS
Creating certainty in home ownership Sunway Property Certainty Campaign features guaranteed loans, deferred payments and voluntary exit plan.
P
Sarena Cheah sharing the Guaranteed Loan, Deferred Payment Plan and Voluntary Exit Plan offered by Sunway Property to assist keen buyers in realising their dreams of owning a home.
rospective home buyers should be relieved that there are developments that could enable them to overcome financing challenges and own properties in the current property market. There is still demand for good and well located properties in the market. People are looking to upgrade, invest and own a home in a well-planned environment that is equipped with comprehensive services and amenities. Sunway Property Certainty Campaign is designed to help purchasers to own properties and include guaranteed loans, deferred payments and voluntary exit plans. The plan would provide financial flexibility and assurance for the comfort of purchasers. Homebuyers can opt for the
deferred payment option with an initial down payment as low as 3%. There is an option for purchasers to terminate their sales & purchase agreement (SPA) if they lose their employment. Sunway Property managing director of property development division for Malaysia and Singapore Sarena Cheah said: “For homebuyers who meet the basic criteria, we are happy to assist them by providing a certainty package with a guaranteed loan, thereby enabling them with greater sense of comfort to own their dream home.” Sunway Property unveiled the final phase of the Sunway GEO series, which is the first integrated development located in the heart of Sunway South Quay. Sunway GEO Residences 3 will consist of a
44-storey condominium block with 420 units. The resort lifestyle living development will be directly linked to the upcoming Sunway GEO Retail and Malaysia’s first elevated Bus Rapid Transit (BRT) – Sunway Line – offering greater accessibility to residents and visitors. Sunway Property is also gearing up for more central region launches during the early half of the year with two key developments in the Klang Valley. Nestled in Mont Kiara, Sunway will launch a 37-storey condominium project, featuring 288 freehold units with a total GDV of RM250mil. Another development in the pipeline is the Sunway Gandaria Residences with 259 units of service apartments located in Bangi.
LAYOUT & EXHIBITORS LISTING BOOTH
SUNWAY PYRAMID
07 - 10 APR 2016
10am - 10pm
S1
EXHIBITOR Sunway Bhd
S2 S3
OIB Group
S4
Nusmetro Group
S5
Sime Darby Brunsfield Holding Sdn Bhd
S6
Ekovest Bhd
S7
Titijaya Land Bhd
S8
Tropicana Corp Bhd
S9 S10
IJM Land Bhd
S11 S12
MCT Bhd
S13
Knusford Bhd
S14
StarProperty Sdn Bhd
STARPROPERTY.MY WEDNESDAY 6 April 2016
14
FEATURED DEVELOPMENT
ELEGANT living at the green suburban utopia MCT marches on with its integrated development.
1
By LEE YAN LI
lylee@thestar.com.my
T
he once tucked-away vicinity of Cyberjaya is burgeoning at an impressive momentum. With ongoing projects from more than 20 developers, Cyberjaya and its surrounding areas are showing all signs of growing into a mature town. MCT chief marketing officer Teh Heng Chong pointed out that as a 7,000acre township that sits on a unique location, Cyberjaya has benefited from the government’s constant upgrade of its infrastructure and facilities. The Express Rail Link connecting to KLIA, upcoming MRT Line 2 and the upgrading of Maju Expressway (Mex) all provide easy access, while the Mitsui Outlet Park and the impending Kuala Lumpur International Outlet have all but promised the growth of property values of the surrounding areas. Teh said that six years ago, landed properties in Cyberjaya, such as terrace houses fetched RM700,000 on average, and the sub-sale market now price the same properties in the range of RM1.2mil to RM1.5mil. “High-rise properties that are targeted at students were priced from RM300 to RM400 psf but now the market which has changed its focus to family and investors, are valued from RM500 to RM750 psf,” he added. MCT’s two ongoing projects are located in Cyberjaya vicinity. It aims to provide affordable housing properties for families and investors looking into an up-and-coming township that provides green living and healthy lifestyle. The Diandra Tower (Tower Four)
of LakeFront@Cyberjaya is the fourth phase of the new residential development. The four blocks are on 17% of 23 acres freehold land. The 26-storey high-end condominium of Diandra Tower is located by a tranquil lake, surrounded by a vast landscape of greenery and overlooking the beautiful skyline of Cyberjaya. The built-up of the 303 semifurnished strata units, priced at RM530 psf, ranges from 950 sq ft to 1,292 sq ft. There are two units with built-up of 1,488 sq ft, and another two units with builtup of 1,708 sq ft. The condominium towers are named after aquatic plants and symbolise their unique features with modern architectural elements. The high-end and stylish living is enhanced with a walkthrough centre-piece from North to the South End. The amenities include fitness centre, Olympic-sized swimming pool, wading pool, sports facilities, launderette, outdoor amphitheatre, jogging tracks and so on. As part of its CSR initiative, MCT is also building the first-ever Chinese primary school in the area, the SJK(C) Union at Cyberjaya, which is expected to be opened in 2018. For families looking for affordable landed properties, look no further than Cybersouth, another serenely green paradise blessed with the convenience of Cyberjaya. MCT will be opening the property gallery on May 7 at Cybersouth, a twostorey link house residential development that sits on 40 acres. Catering to the varied needs of the modern buyers, all 530 units with four bedrooms have spacious builtup ranging from 1,959 sq ft to 2,702 sq ft, with a starting price of RM629,800.
1 The suburban utopia of Lakefront at Cyberjaya. 2 MCT chief marketing officer Teh Heng Chong notes the strength of MCT as an integrated developer allows it to adjust current market demand. 3 The infinity pool of Reo suite overlooks the beautiful cityscape of USJ Subang Jaya.
2
3
Pitching a naturally down-to-earth living, CasaView contains many natural elements and thoughtful additions that come together in a harmonious way to create the perfect balance to a busy modern life. Sprawled across a 417-acre piece of leasehold land, the residential area includes a verdant 25-acre central park and a beautiful lake, as well as a community club. The township is merely 400 meters from Putrajaya and 1.5 km from Cyberjaya, and surrounded by educational
centres such as SRK Dengkil, SMK Dengkil and UiTM. The major highways such as Putrajaya-Cyberjaya Expressway, Elite Highway, South Klang Valley Expressway (SKVE), New Klang Valley Expressway (NKVE), Mex as well as the DamansaraPuchong Highway, which links to the B15 Jalan Puchong-Dengkil route via the Persiaran Utara Interchange, all provide easy access. For small families looking for a more mature township, MCT will be launching the Reo Suite (Sofo) as part of phase three of One City, the final phase development that spreads across 20 acres of freehold land. An iconic silhouette rises in the thriving suburban hub of Subang USJ, Reo Suite sets to tantalise the dreams of the modern generation, offering 1,115 units of studio and two-room suites with built-up sizes ranging from 370 sq ft to 609 sq ft, and priced from RM830 psf. Perched on the prestigious address of Subang USJ, Reo Suite boasts an excellent vantage point and a panoramic view of the surroundings. The facilities include infinity pool, Jacuzzi, yoga deck, BBQ area, steam room, sauna, gym room, dance studio, prayer room, meditation room, games room, Zen Garden, multipurpose hall, roof garden and viewing deck. A good selection of international and local schools are located in the area, while Taylor’s University College, SEGi College, Inti International College, Monash University and Sunway University are within a 15-km distance radius, making it an attractive investment option for those looking for properties catering to the student population. Reo Suite enjoys excellent connectivity and accessibility as it is strategically located within several minutes’ drive to major highways, namely the Damansara-Puchong Expressway, the Elite highway, NKVE, the Shah Alam Highway (Kesas) and the SKVE. The upcoming LRT extension train services from Kelana Jaya Line is set to provide convenience of mobility to One City Phase Three. As noted by Teh, MCT holds the trump card of an A-to-Z in-house operation as an integrated developer. “From design, planning, construction to marketing, everything is done inhouse, allowing us to monitor and maintain the cost, speed and quality of the projects, and adjust to the current market trends. “The upcoming townhouse project at CyberSouth, with an indicative starting price of RM400,000 and Rumah Selangorku with an indicative starting price of RM100,000, are MCT’s commitment to build more low-cost and affordable housing in accordance with the market demand,” he said.
Wednesday 6 April 2016
Starproperty.my
15
STARPROPERTY.MY WEDNESDAY 6 April 2016
16
SPECIAL FOCUS
Challenges for retail space Klang Valley occupancy rate drops as retail space surges.
Savills Malaysia managing director Allan Soo speaks a t S a v i l l s R e t a i l e r 's Conference 2016.
for the past 15 years, rental rates have been rising non-stop. He cited the Kuala Lumpur Convention Centre as an example, in which the average net rent has grown from RM8 to RM9 per sq ft to RM28 per sq ft over the past 18 years. “There is nothing wrong with shopping centres. It is just that there are too many of them now,” said Soo. The upcoming MRT and LRT lines criss-crossing the Klang Valley will be a
game changer for shopping malls and retail outlets. Soo pointed out the Ampang LRT line extension project, which covers the Puchong area, as an example. Puchong, with a population of 700,000 residents, presents a huge demographic with lots of opportunities, and the line extension could make traffic congestion less of a problem to travel to the city area. “Puchong has not quite matured in terms of retail and commercial space. There are only two malls there, and the rest are mostly shophouses,” said Soo. Retailers should grab the
opportunities of getting new brands and growing local brands, as Malaysia has not been promoted well to attract more brands into the country. Malaysia’s retail industry, partly spurred by the rapid demographic growth, has been expanding fast for the past few decades, resulting in more attention given to the expansion of space, rather than merchandising and branding, and the local retail industry is lagging behind other countries in terms of brand growth. Meanwhile, Soo also noted that the retail sales in Malacca and Johor have seen a 20% increase in sales, due to the influx of Singaporeans who took advantage of the weakened ringgit last year. To adjust to hard economic times, outlet malls have also seen a boost in sales as the middle-income group sought branded goods at a discounted rate.
Rents under pressure 200
Prime Rental Index (Q4 2005=100)
180 160 140 120
100%
Average Occupancy Rate
70
90% 85%
60
80%
50
75% 70%
60%
2015
2014
2013
2012
2011
2010
2009
2008
Greater KL retail space will exceed 60 million sq ft by 2017
95%
65%
2007
Source: Savills Research
2006
Source: Savills Research 100
2005
K
lang Valley retail space is expected to reach a threshold of 60 million sq ft in 2017, contributing to a drop in average occupancy rate from 90% to 85%, with a possibility to stabilise and recover in 2018. Savills Malaysia managing director Allan Soo said that the Klang Valley currently has approximately 56 million sq ft of retail space, which at more than seven sq ft per person, represented a larger per capita number than Singapore's. “By 2017, the retail space will hit 60 million sq ft, meaning there are more than 155 shopping centres and hypermarkets at the Klang Valley,” said Soo at the Savills Malaysia Retail Conference 2016. The whole Klang Valley is almost built up with shopping centres, which are mostly concentrated in areas that are very close to highways and areas of dense population. While some malls still have retailers queuing to fill up their retail space, it is increasingly harder to fill up new malls, and the occupancy level drops every time a new mall opens, although it is expected to stabilise and recover when heading towards 2018. There are already six megamalls in the Klang Valley, with a probable growth to a total of 10 megamalls. With the increase of retail space, the concerns will be whether there will be any success in the new ones, how it will impact the old ones, and how the retailers can adjust and choose the appropriate spots and compete in this environment. “The megamalls are still attracting businesses, but there are more megamalls coming up; being big can also mean vulnerability, and some megamalls may not do so well,” said Soo. However, while the oversupply of retail spaces and shopping malls has been a concern for most, the retailers should also see it as a situation that creates opportunities. In general, there are around 600 grade A outlets, more than 1,500 grade B and few thousands of grade C outlets, and while the consolidation and shift of status quo would probably happen in this climate, good retailers can benefit from the situation. In terms of investment, Soo noted that retail rental still presents good options, as
Malaysia’s 56 million sq ft of retail space at more than seven sq ft per person constituted a larger per capita number than Singapore's.
Rental Index (Q4 2005=100)
lylee@thestar.com.my
Source: Savills Research
Retail Space (millioon sq ft)
By LEE YAN LI
Source: Savills Research Selangor KL Suburbs KL City
40 30 20 10 0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2007e 2018e
STARPROPERTY.MY WEDNESDAY 6 April 2016
17FEATURED DEVELOPMENT
Infrastructure Boost to Sarawak SCORE, Trans Borneo Highway and green certification to beef up the property market. By Viknesh Ashley
vikneshashley@thestar.com.my
T
he Sarawak property market will see an increase in property pricing due to many factors such as progress in the construction industry, Sarawak Corridor for Renewable Energy as well as other projects simultaneously taking place to enhance the land-rich state. Oxford Business Group in a recent report disclosed that the construction industry has seen a significant increase in activities over a five-year period, between 2009 and 2013 where the yearly value of completed projects had risen from RM4.88bil to RM8.04bil, according to data acquired from the Department of Statistics Malaysia (DOSM). Construction in Sarawak differs from the national construction trend. Instead of relying on the private sector for funds, funding in this state is split evenly between public and privately funded projects. Of the RM1.9bil of construction carried out in Sarawak, in Q3 2014, some RM929.55bil was spent on public civil engineering projects as compared to RM899.68mil spent on residential as well as non-residential construction, according to DOSM. This trend looks to continue as 476 new construction developments approved in 2013 resulted in RM15.28bil as well as one project in excess of RM1bil as reported by the Construction Industry Development Board (CIBD). Later in the first half of 2014, an additional of 110 projects of RM2.03bil were approved. Oxford Business Group also reported that Sarawak’s largest driver of construction at present is the Sarawak Corridor for Renewable Energy (Score). This development is a mammoth project having employed a large army of construction workers to build new townships and manufacturing centres. Many large projects are on-going, for example environmental-friendly building practices. The creation of new townships virtually overnight has given planners the opportunity to incorporate “green building” components into construction at the earliest stages. One example is the boom town of Samalaju, built to support the industrial node developing at the site, which is pursuing the well-regarded Leadership in Energy and Environmental Design (LEED)
Kuching city centre.
certification devised by the US Green Building Council. While Sarawak has not traditionally employed environmentally-friendly building practices, if LEED certification is achieved, it would make Samalaju the first “greencertified” township in Malaysia. As such standards gradually catch on, a new wave of more efficient structures could take their place alongside the state’s first green-certified building: the headquarters of Menara Sarawak Energy in Kuching, which earned a silver rating under the Green Building Index (GBI) in July 2013. The GBI, a system unique to Malaysia, rates buildings as silver, gold or platinum based on six criteria: energy efficiency, indoor environmental quality, sustainable
“Construction on Sarawak’s second green building, a new branch of the capital’s Kuching North City Hall, was initiated in March 2014. A component of the city's 'clean, beautiful, safe' campaign launched in 2013, in which the city incorporates energy-efficient technology into new municipal offices, the building is to be completed by this June.
site planning and management, material and resources, water efficiency, and innovation. Construction on Sarawak’s second green building, a new branch of the capital’s Kuching North City Hall, was initiated in March 2014. A component of the city's “clean, beautiful, safe” campaign launched in 2013, in which the city incorporates energy-efficient technology into new municipal offices, the building is to be completed by this June. While the facility is not targeting official GBI certification, it will include a wide array of green features such as LED lighting and use of natural light. As of mid2014, three of Malaysia’s 29 GBI-certified buildings were in Sarawak. The Malaysian government has been pouring billions of ringgit into infrastructure projects to provide an extensive and stable utility network, as well as an efficient and modern transport system. Substantial outlays from both federal and state agencies in recent years to install the infrastructure for the massive Score project have been a boon to the construction industry, and have included several big-ticket contracts for multi-billion-ringgit projects. As a result, public building projects have been on par with private sector investments. The 167 infrastructure contracts approved in 2013 were worth RM4.22bil, or about 27% of the industry that year, in addition to 67 approved social
amenity projects worth RM1.37bil. These figures were roughly on par with allocations in 2012, when 81 infrastructure and 62 amenity contracts were approved, worth RM3.09bil and RM567.8mil respectively. In the first half of 2014, a total of 37 infrastructure contracts worth RM1.17bil and 13 social amenity builds worth RM132.3mil were approved. Among the big-ticket contracts currently dominating the sector are upgrades to a large portion of the TransBorneo Highway. Work on the state's primary land route has been stepped up in recent years, with RM500mil allocated for improvements in 2014, including additional lanes in some sections. This figure ballooned in 2015 when the Federal Government announced it was accelerating work on the 1,663 km under its purview (936 km in Sarawak and 727 km in Sabah) at a total cost of RM27bil. Both local and national construction companies are expected to bid for a slice of the project in 2015, including Hock Seng Lee, IJM Corporation, WCT Holdings, Bina Puri Holdings, TRC Synergy, Naim Holdings and KKB Engineering. The 2015 budget also allocated RM943mil to build and upgrade 635 km of rural roads in East Malaysia, while dozens of contracts are being tendered for hundreds of kilometers of new and upgraded roads to support Score.
STARPROPERTY.MY WEDNESDAY 6 April 2016
18
FEATURED DEVELOPMENT
Convenience at EkoTitiwangsa
1
Developer Name Address
An urban home with qualities that matter.
1 Relax in the comfort of the infinity pool while enjoying the view of the Kuala Lumpur capital city skyline.
By Mak Kum Shi
makks@thestar.com.my
I
F YOU are looking for a new home in Kuala Lumpur that is attractive in location, accessibility, facilities, amenities and price, look no further than EkoTitiwangsa. For urban couples to small families that aspire to live near the Kuala Lumpur city centre and access a wide range of employment opportunities, educational institutions, medical services, public transportation services and amenities, EkoTitiwangsa is an ideal development that fulfils such expectations. Located within the Titiwangsa neighbourhood in Kuala Lumpur, this luxurious freehold service apartment project is a major component of the KL River City integrated mixed development. KL River City stretches 3km along the Gombak River and opens up a new development that integrates leisure, residential, retail, hospitality, business and wellness elements together. As testimony of a development that epitomises the ‘Work, Play, Live & Learn’ concept, EkoTitiwangsa was recently recognised in the StarProperty. my Awards 2016 with Merit in The Just-Walk Award – Best Integrated Development. The development has excellent accessibility to various parts of Kuala Lumpur due to its connectivity to major highways and roads such as Jalan Pahang, Sentul Link, MRR1 - Jalan Tun Razak & Lebuhraya Sultan Iskandar (Lebuhraya Mahameru), and MRR2. For the convenience of public transportation, the Sentul KTM Station and Titiwangsa stations for the Ampang LRT, KL Monorail, and upcoming Sungai Buloh – Serdang – Putrajaya MRT lines are within walking distance.
2 River view of KL River City with EkoTitiwangsa. 3 Podium view of EkoTitiwangsa.
Website Email Contact No Fax No Development project name Advertising Permit no. and date Developers License no. and date Development concept Location Property type Land title Tenure Total units Built-up area Total designs Number of bedrooms Number of bathrooms Price range
2
Price per sq ft Estimated date of completion Educational Institutions
3
Bringing the concept of comfort living to a whole new level, the development has a wide range of facilities such as multi-purpose hall and area, children’s playground, sauna, barbecue area, gymnasium, Jacuzzi, wading and infinity pools. Given the characteristics and concept of this integrated mixed development, EkoTitiwangsa makes an attractive
home for those who aspire a modern contemporary lifestyle within an excellent location in Malaysia’s capital city. Ready to make EkoTitiwangsa your new address? Find out more from Ekovest, StarProperty.my Fair 2016’s Premium Partner, at Booth S6, Blue Concourse Level LG2, Sunway Pyramid, from tomorrow until Sunday, or visit their showroom today!
Medical Institutions
Retail, entertainment, and leisure
Ekovest Land Sdn Bhd Ground Floor, Wisma Ekovest, 118, Jalan Gombak, 53000 Kuala Lumpur www.ekotitiwangsa.com ekoproperty@ekovest.com.my 03-40321881 03-40321771 EkoTitiwangsa 13673-1/09-2016/0899 (P) 13673-1/09-2016/0899 (L) Integrated mixed development Titiwangsa, Kuala Lumpur Service Apartment Commercial Freehold 696 Block A: 825 – 1,200 sq ft Block B: 820 – 1,340 sq ft Block C: 825 – 1,178 sq ft Block A – 4 Block B – 10 Block C – 6 2–3 1–2 Block C (RM591,986 – RM1,725,630) Approx. RM720 per sq ft and above Early 2019 SRJK (C) Chong Hwa SRK Bandar Baru Sentul SK Setapak Chiao Nan Primary School SK Jalan Kuantan 1 International College of Music Wesley Methodist School Methodist Boys School Convent Sentul Secondary School KPJ Tawakal Sentosa Medical Centre Hospital Kuala Lumpur National Blood Bank Malaysia National Heart Institute River of Life Titiwangsa Lake Setapak Central Sunway Putra Mall EkoRiver Centre shopping mall (upcoming) 1Malaysia Park (proposed)
Wednesday 6 April 2016
Starproperty.my
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STARPROPERTY.MY WEDNESDAY 6 April 2016
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FEATURED DEVELOPMENT
i-City Edition 22 - 24 APR 2016
11am - 9pm
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Prestige at the top of the Golden Triangle 8Kia Peng, King of the Hill epitomises opulence at the heart of Kuala Lumpur.
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By LEE YAN LI
lylee@thestar.com.my
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TANDING tall at the urban jungle and yet enjoying exclusive privacy in a premier location, the freehold project, 50-storey 8Kia Peng@KLCC, offers 442 residences that promise a chic lifestyle. Prime Minister Datuk Seri Najib Tun Razak officiated the launch of I-Bhd’s first luxury project of 8Kia Peng, King of the Hill on March 14. He pointed out that the development of i-City and now the 8Kia Peng, King of the Hill by I-Bhd are good examples of the private sector contributing to the economic growth of the nation. The prime minister is confident that 8Kia Peng will create even greater awareness of the Malaysia My Second Home programme, convincing the people from around the world that Malaysia is a place you can call home. Since then, the project has been receiving positive response from interested parties, way before I-Bhd executive chairman Tan Sri Lim Kim Hong launched the 8Kia Peng sales gallery located at Menara Bangkok
Bank@Berjaya Central Park, Kuala Lumpur, on March 31. 8Kia Peng may be a glamorous and luxurious concept, but its vision originated from the simple nostalgic sentiment of the self-made tycoon. Lim, who ventured into the ultrapolis project of i-City after his retirement, confessed that 8Kia Peng, King of the Hill was born from his desire to share the vantage point afforded by his former home of 30 years. 8Kia Peng’s single tower block is located at the higher ground of the Golden Triangle of Kuala Lumpur, and 80% of the units have direct view of both the Twin Towers and the central park. The two-bedroom, fully fitted and furnished units with built-up sizes of 716 sq ft to 987 sq ft, provide comfortable living space in a ready to move-in condition. 8Kia Peng, poised to be a CONQUAS standard building, is expected to be completed in 2019. Located within Zone One of KLCC, 8Kia Peng, King of the Hill is comfortably tucked away in a quiet enclave while in close proximity to numerous amenities in the heart of the city. The project is targeted at global property buyers and those seeking the best views of KLCC and Petronas Twin Towers. Besides the target market of 70% international buyers, the profile of the 30% local buyers are expected to be professionals of middle-to-upper income group. “We would like to congratulate I-Bhd for coming to KL to build an iconic building for both locals and foreigners. I believe this project will help to enhance KL to be a liveable city, a world-class city Malaysians will be proud of,” said Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor.
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4 1 The beautiful scenery that encompasses KLCC from the 50m infinity pool at 8Kia Peng. 2 Prime Minister Datuk Seri Najib Tun Razak (left) and Tan Sri Lim Kim Hong at the launch of 8Kia Peng, King of the Hill project. 3 GS Realty director Datuk Seri Nelson Kee. 4 Founder and managing director of Rozel Corp Gan Tai Hwa.
i-City Edition 22 - 24 APR 2016
11am - 9pm
The 8Kia Peng project with a gross development value of RM1bil is intended to cement I-Bhd’s position as one of Malaysia’s leading high-rise developers. Members of the public are cordially invited to visit the StarProperty.my Fair i-City Edition 2016, which will be held at i-City from April 22 till 24, from 11am to 9pm. The fair will be presenting notable projects in i-City such as i-Soho, i-Suite, Liberty Tower, Parisien Tower, Hyde Tower, as well as 8Kia Peng. Visitors will be able to gain more insights into the property market through various talks by industry experts. I-Bhd’s global partners Al-Rajhi Banking Group, Central Pattana Group Thailand and Rozel will showcase their products and services at the special event, including Hilton and Best Western, which will be serving free coffee for the visitors. Founder and managing director of Rozel Corp Gan Tai Hwa said: “Given the quality and design of our products, we are very confident it will be at par with the commitment of i-City to its purchasers. Rozel sofa designs will bring out the modern, chic and refined interior of the project.” To celebrate the special event, visitors will stand a chance to redeem the 1,000 complimentary theme park tickets given daily for three days, and join in the carnival fun on Saturday and Sunday. The All-Day Happy Flea Market, food trucks offering culinary delights, magic shows and live band performances promise to create fun and unforgettable memories. GS Realty director Datuk Seri Nelson Kee, who will be promoting the i-Suites, said that the early invitations have received good response from potential buyers, with around 500 confirmed participating while more are expected on that day. For house buyers, great prizes await at the fair. RedBricks will be sponsoring lucky draw prizes, including two return tickets to London for purchasers of Hyde Tower. For Parisien purchasers, they stand a chance to win two tickets to Paris sponsored by Reapfield, while two round-trip tickets to New York await buyers of Liberty Tower, sponsored by Viva Homes.