StarProperty.my Edition 18 Oct 2015

SUNDAY 18 OCTOBER 2015

THE DAWN OF WELL-PLANNED EDUCATION CITIES Malaysia’s young population and the thrust towards developed nation status herald good opportunities for holistic learning cities. >P2-3

2016 BUDGET, SME’S AND MITTELSTAND MODEL

INSIDE THIS ISSUE

datuK stewart Labrooy expounds on the iMpact budget 2016 couLd have on MaLaysia's industriaL sector.

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BANDAR SRI SENDAYAN SOARS IN RUSTIC SEREMBAN

ODE TO NATURE

Matrix concepts brings quaLity education to its fLagship township.

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Live, Laugh, share and grow in the Latest sociaL heart of Kajang.

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STARPROPERTY.MY SUNDAY 18 OCTOBER 2015

02

SPECIAL FOCUS

THE MAKING OF EDUCATION CITIES OppOrTUNITIES AbOUND FOr wEll-plANNED AND HOlISTIC lEArNING CITIES

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DUCATION is undoubtedly the basic foundation to build a strong, stable and progressive world, based on the notion that educated people will have a higher propensity to absorb knowledge, and hopefully will be able to contribute towards a more progressive and harmonious world for all mankind to thrive.

According to famous American poet and essayist Ralph Waldo Emerson: “The secret in education lies in respecting the student.” This is more so in the current information age and the opening up of so many channels of information and learning platforms, that with the proper hardware and software, quantum leap progress can be made by mankind through education. After all, the human mind has immense power and can achieve great things, even seemingly insurmountable feats or miracles.

In order for Malaysia to up its ante and progress into a robust nation status, much more needed to be done to provide the best education we possibly can to all Malaysians – from primary school right up to tertiary levels.

Given the increasing student population in the country, there is a need for more education hubs and cities to be established that can potentially yield many intrinsic benefits, including massive savings in foreign exchange (forex) expenses – a rising cost that is being further exemplified by the sharp drop in the ringgit, and potentially also bring in more forex earnings to the country, if we have our own crop of Ivy League institutions that will be able to attract quality students to our shores.

Well-planned education cities and hubs will require holistic planning to bring together reputable institutions that cater to the different ages of students, accommodation for the students and academic staff, good connectivity to major highways, and also the various ancillary facilities for the communities living there.

Forward-looking and visionary developers need to offer unique selling propositions in their developments that include spicing up their project offerings with value-adding features and amenities, and one of the game-changing themes being deployed by developers is education-themed developments that cater to the needs of young families with growing up children.

According to property consultancy, PPC International Sdn Bhd managing director Datuk Siders Sittampalam, education cities are part of mega integrated or township developments that comprise residential, commercial, industrial and other public amenities such as medical facilities, leisure and entertainment parks. They will contribute to the development of new growth areas, especially where growth in some states is relatively slower.

“Educational cities bring immense social and economic benefits to the country, and they are considered the most valuable initiatives undertaken by any government in

By

ANGIE NG angie@ thestar.com.my

Angie Ng is the content editor of StarProperty.my.

1 1 Taylor's University Lakeside Campus in Subang Jaya.

2 University of Reading Malaysia’s new campus in EduCity, Iskandar Malaysia.

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pursuit of nation building.

“Domestically, it provides wide and systematic education to the youth of the nation. Harnessing our education prowess not only brings economic benefits, it enhances our human capital and creates a highly skilled and specialised workforce. It will also encourage our students to engage in research-based pursuits and industries.”

He says Malaysia has positioned itself to a large extent as a regional education hub that is attributed by competitive course fees, varied study options, and branches of international university campuses at affordable cost. This is further underpinned by relatively low living cost, a safe and peaceful country, and political stability.

Siders, who is also the president of Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS),

elaborates that while there are a number of education cities in the country, they are mainly concentrated in the southern and central regions.

“There is scope for more education cities to be developed in the northern region, especially in Penang, and the eastern region, notably in Terengganu and Kelantan. This would expand the educational opportunities to the local people there and contribute to the growth of property development in those areas. Also, it will create multi-disciplinary and specialised courses to be made available in the country. For example, education cities in the northern region may be of medical and manufacturing-based courses,” Siders observes.

Savills Malaysia deputy managing director Paul Khong concurs, noting that education cities are great stories for development in Malaysia.

"This sector is almost recession-proof as most parents give high priority to their children’s education, while cutting back on other expenses. Many newer projects are now being moved into education city (s) for better synergy and larger land plots for development with the various incentives offered, " Khong says.

Knight Frank Malaysia managing director Sarkunan Subramaniam says by harnessing quality education at affordable cost will benefit a wider student population, reduce forex outflow to other countries, attract foreign direct investment into the country, slows down brain drain, and drives economic and innovation growth.

Education hubs or cities will be able to provide good manpower to businesses within the rest of the developments and form the resource pool of educated and skilled workforce, besides raising academic standard and improving job prospects for the people.

Sarkunan notes that good education cities should be equipped with the basic facilities and infrastructure such as quality and affordable student accommodation, leisure facilities such as campus sports and activities, arts and cultural activities, easy access to and from campus (cycling paths), and to train stations and airports, as well as convenience stores, banks, groceries, minimarkets, hypermarkets, post office, and food and beverage outlets.

“Malaysia has several education hubs or cities, notably EduCity in Iskandar Malaysia, Johor, that comprises a cluster of international universities (Malaysian

STARPROPERTY.MY SUNDAY 18 OCTOBER 2015

campus) and institutions such as Newcastle University Medicine Malaysia, University of Southampton, University of Reading, Management, Marlborough College Malaysia, and Management Development Institute of Singapore.

“In Cyberjaya - Putrajaya, Selangor, there are Multimedia University, Cyberjaya University College of Medical Sciences, and Limkokwing University of Creative Technology; while Nilai boasts of a number of prestigious institutions, including Heriot-Watt University Malaysia, INTI International University & Colleges, Nilai University, Nilai Polytechnic, Manipal International University, Cempaka International Ladies’ College, and British international school Epsom College in Bandar Enstek Campus.”

He says the Klang Valley is another bastion for education, with Taylor’s University, Sunway University, HELP University, KDU University College, and International Medical University among the reputable institutions. In Sepang, Sunsuria City will be home to the new Xiamen University Malaysia Campus.

Kampar, Perak, has Universiti Tunku Abdul Rahman (Utar), Tuanku Abdul Rahman University College (Perak campus) and Westlake International School.

Scope for new education corridors Another upcoming education hub will be located in Pagoh, Johor, where the first phase of the development will comprise Universiti Tun Hussein Onn Malaysia, International Islamic University Malaysia, UTM and Politeknik Pagoh.

Sarkunan says there is a need to expand the courses and programmes offered by the local campuses of foreign universities to cater to a wider student population, given that selected universities only offer limited courses and programmes currently, and also to ensure that the teaching staff is adequate and competent.

“Malaysia can take a leaf from other successful education cities, including

03SPECIAL FOCUS

Artist's impression of Management Development Institute of Singapore in EduCity, Iskandar Malaysia

London, Sydney, Melbourne, Toronto, Montreal, Boston, Tokyo, Seoul, Singapore and Hong Kong. The upcoming global education hubs include Dubai in UAE, Doha in Qatar and Jeju in South Korea,” he adds.

Malaysian REIT Managers Association chairman Datuk Stewart Labrooy points out that education cities in Malaysia are a work in progress, noting that Malaysia has used transnational education strategically to meet demand from specific student population groups and to cap the outflow of currency via students who study abroad.

“The country has taken a marketoriented approach and has ambitions to become a regional hub for international education. It aims to attract 150,000 international students by this year. It is envisaged that a proportion of those international students will be attracted to one of the foreign branch campuses (of which there were eight – mainly Australian and UK – as of January 2013 according to statistics compiled by British Council, 2013), established with the encouragement of the Government.

“This led to the EduCity concept and the first major development of this concept is EduCity Iskandar,” Labrooy says.

Meanwhile, facilities for other types of education and training are also important.

These include vocational training institutes, not-for profit schools, research centres and schools that enable young people to receive

their A-Levels after some time in the labour market.

The direct impact on the local economy will be through tuition fees or student expenses incurred within the country, and also the talented and educated labour pool if the students stay back to work and live in the country. There is also job creation at the education institutions and spillover effect to the other businesses that will benefit from the student and teacher population.

Labrooy says besides facilities like sports facilities, transportation, pubs, cafes, shopping malls, entertainment outlets, student accommodation and research facilities, there should be room for academic discourse.

“In order to be truly competitive, the education cities in Malaysia should host academic events, or invite guest speakers, and make sure that the universities and the cities will be known for their academic successes and academic freedom,” Labrooy stresses.

Siders gave his thumbs up to EduCity in Iskandar Malaysia as probably the best planned educational city in Malaysia that will have 600 acres of fully integrated development comprising universities, institutes of higher education, R&D centres, student accommodation, as well as recreational and sport facilities – a first of its kind in Asia.

“The educational theme can be a catalyst for commercial and social activities that will promote businesses, communities and other

Malaysian REIT Managers Association chairman Datuk Stewart Labrooy

Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) president Datuk Siders Sittampalam.

Siders is also PPC International Sdn Bhd managing director.

sectors with the concentration of the student community. This further enhances the quality of workers in respect of knowledge in the country and the region at large.

“A well-trained and educated workforce will be better equipped to develop new industries. This will lead to a knowledge economy and society. In addition and on a larger perspective, Malaysia as an educational hub will lead to higher inflow of foreign funds into the country.”

Siders says successful education cities should have good public transportation such as MRT/LRT, shuttle bus, student accommodation with sports and recreational facilities and other basic amenities.

Labrooy also gave his vote to EduCity in Iskandar Malaysia as a pioneering multi-varsity education hub located in Nusajaya, comprising universities and institutes of higher education, academiaindustry action and R&D centres, as well as student accommodation, shared sports and recreational facilities.

“EduCity aspires to create Asia’s first 'best-in-class' higher education destination with a superior urban environment in which students and staff can live, work, study and play. There is space for eight international universities to share facilities and, ideally, offer complementary provision. From the perspective of the three UK universities involved (Newcastle University, University of Southampton and University of Reading), the intention was for different institutions to offer courses in an area of specialist expertise (such as medicine and engineering). To this end, exclusivity agreements were provided to certain institutions so that they have a monopoly on delivering EduCity-based courses in a particular subject area for a number of years.”

Labrooy, however, observes that student numbers at EduCity currently seem to lag behind expectations (except for Marlborough College which is growing better than expected).

“There is a massive delay in construction and most campuses are expected to fully operate only in 2017 or later,” he adds.

Labrooy says Kuala Lumpur Education City, which was launched in 2007, has not progressed as expected (except for Epsom College which has opened its doors) and the website does not work. "The time horizon for this one looks like it's going to be 15 to 20 years," he adds.

"Meanwhile, Pagoh Education Hub in Johor, will not have any international universities but rather have mainly Malaysian universities operating there with the exception of a cooperation with Imperial College. There is also no website to check,” he says.

There are a number of issues that needed to be fixed, including marketing, financing, and ensuring a high reputation and academic discourse which includes freedom of speech and the right to discuss diverging political opinions openly.

“Not being fully operational and benefiting from economics of scale also means that universities have to offer the full range of services and cannot benefit from sharing facilities, services and cost with other universities just yet.

“In order for the education city to really work, universities should enable students to cross-register at the different universities to ensure a holistic education and not a single focus on one subject, and also to make use of the concept of one campus for multiple universities from different countries and with different focuses,” Labrooy concludes.

STARPROPERTY.MY SUNDAY 18 OCTOBER 2015

04

FEATURED DEVELOPMENT

SuStainable living WitHin a gReen enviRonment

Floris Collection at Setia EcoHill to provide energy-saving and environmental-friendly designs.

Features of Floris Collection

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BY NURUL ASMUI MD AZMI asmui@ocision.com

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ESTLED within the rolling hills of Semenyih is Setia EcoHill, a 673-acre eco township by SP Setia Bhd. The mixed township development offers a low-density concept of only 10 houses per acre. Each residence is well-designed to be an energyefficient home, and has access to extensive facilities and activities, such as those at Setia EcoHill Park and a 360º Club. The latter is constructed with green sustainable design features and a roof top where residents can enjoy a spectacular view of the entire EcoHill.

As part of SP Setia ‘LiveLearnWorkPlay’ development philosophy, Setia EcoHill offers an inspiring learning environment by incorporating parks and gardens that preserve the original tropical surroundings, as well as another branch of Tenby International School that will open in September 2016.

Tenby International School was founded more than 50 years ago by Dorothy NelsonDoig from Wales, and is now known as one of the international educational providers in Malaysia. Adopting the British system, the school aims to provide high quality international education and optimum learning environment to the community of Setia EcoHill.

For future educational facilities, the group is also planning to include government primary and secondary schools in the township.

ultimate master plan

What makes Setia EcoHill extraordinary is its master plan that is based on the Live Green! DNA, which comprises eight principles of sustainability that ensure an ideal setting for a sustainable lifestyle in Setia EcoHill without sacrificing comfort and modern conveniences.

The eight principles under Live Green!

DNA are as follows: 1)Creating a sustainable

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1 The convenient EcoHill Link is linked directly to the LEKAS Highway.

2 EcoHill Park offers a tranquil and relaxed ambiance (as shown in this actual site photo).

3 Scenic view of the EcoHill landscape.

4 Experience the remarkable landscape of The Sun Bird Walk at Horizon Residences.

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township, 2)Supporting local businesses, 3) Reducing the carbon footprint, 4)Protecting the environment, 5)Promoting education for all, 6)Encouraging the 3R’s - reduce, reuse and recycle, 7)Facilitating a lifestyle of health and sustainability, 8)Providing a safe and secure environment.

The township’s master plan incorporates extensive green spaces that are not just parks and gardens but also habitats for indigenous wildlife including birds, butterflies, squirrels and more. The rehabilitation of the site’s original ecosystem will strengthen the sustainability of the township while enhancing the overall environment.

astonishing elements at Horizon Residences

The principles are also incorporated into the development of Horizon Residences, a gated and guarded precinct of Setia EcoHill.

Horizon Residences comprises of three exclusive collections, Grandlis, Floris and Gloris. The recently launched Grandlis

Collection consists of super-link homes that are designed with generous land sizes of 3.6ft x 76ft and 23.6ft x 86ft with built-up of 2,389 sq ft and 2,500 sq ft, respectively.

With a take up rate of 90% during the launch of Grandlis Collection, it is expected that the demand for homes in Setia EcoHill will continue to grow, especially when there are only limited version of super-link houses available within Setia EcoHill development.

The enclave of Horizon Residences is enclosed by AgilFence PIDs, the most intelligent fencing in the world. Its remarkable landscape includes parks like Fragrance Garden and Sun Bird Walk which are inspired by nature’s best.

Designed with unique concept, The Sun Bird Walk is a network of linear gardens that runs between every row of super link houses in Horizon Residences. It is an outstanding natural landscape that features interactive gardens that can stimulate physicals, reawaken senses and connect with emotions.

The linear gardens are divided into themed zones, such as a sunshine gym, meditation lawn, play park and herbs garden.

As the latest development of Horizon Residences, Floris Collection will also enjoy the dazzling setting and the numerous fascinating sections of The Sun Bird Walk.

With a gross development value (GDV) of RM70mil, Floris Collection features energy-saving houses that will help lower the residents’ energy consumption. Floris Collection also provide a wholesome and serene environment as it maintains the original ecosystem and protect the water table.

To provide a healthy lifestyle, Setia EcoHill’s holistic environment offers the perfect ambiance for the residents to create a healthy and sustainable lifestyle for themselves and their loved ones. Just like other residential “village” at Setia EcoHill, Floris Collection, too, will feature built-in security systems, complemented by 24-hour guard patrol throughout the township.

Floris Collection will comprise superlink houses that are surrounded by amazing flora and beautiful gardens. The houses offer two distinctive designs, Type B1 and Type B2, with land area of 23.6 ft x 76 ft, and built-up ranging between 2,563 sq ft and 2,718 sq ft. The launching price starts from RM798,000.

For Type B1, the ground floor boasts a generous built-up with an open floor plan to create a sense of space as well as flexibility, whereas for Type B2, both floors will be fully extended to promote a flexible living space that allows homeowner to modify the rooms according to their preferences.

Delivering an economical design at Floris Collection, the facades of the houses will reflect a modern contemporary tropical design ethos, and solar passive features that that will help keep the interior naturally cool and ventilated without sacrificing natural daylight.

excellent connectivity

Before the planning of Setia EcoHill began, Jalan Semenyih was the only access in and out of the town. However, since the major road can no longer sustain the increasing traffic flow from the housing developments booming in the area, the EcoHill Link has been constructed for the residents of Setia EcoHill and in the area.

Conforming to the sustainability trait of Setia EcoHill, the EcoHill Link has been designed to ensure maintenance will be kept to a minimum. This is achieved by creating the Eco Cave, a cave environment in the underpass through the use of natural stone finishes and artistic cave paintings.

This direct link to the Kajang-Seremban Highway (LEKAS) has benefited the wider community in and around Semenyih town by significantly alleviating the heavy traffic volume along Jalan Semenyih.

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STARPROPERTY.MY SUNDAY 18 OCTOBER 2015

06

SPECIAL FOCUS

EDUCATIONAL-THEMED DEVELOPMENTS:

THE wAy fOrwArD

Gone are the days of travelling great distances for the best schools as nowadays, developers are bringing the best institutions to the doorsteps of their residents.

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ARENTS will have a host of matters to worry about when it comes to their first-born child, noticeably the family expenses.

With an exponential increase in expenses given an extra person to feed, clothe, raise and care for, parents will still want the best for the apple of their eyes.

So it would make perfect sense for people who are searching for a home to live in an area with everything under one address. Not only will it greatly reduce the costs derived from travelling great distances to get to amenities, but also diminish the headache that is sure to arise from ferrying the family to and fro.

In this issue, we take a look at the townships that have education as their main focus. It is an excellent answer to parents who are on the hunt for a home that would offer them peace of mind for many years to come as well as easing the burden of their wallets. Vibrant and bustling with life, yet filled with pockets of greenery for some respite, these type of townships are fast becoming the favoured choice for first-time homebuyers and investors alike.

The main feature that townships under this genre would obviously have are the schools, colleges and universities that one would be able to find in these vicinities.

Not surprisingly, homes in these townships would be able to command a higher price due to the demand of living in close proximity to good institutions. One example would be the self-contained Bandar Sunway township.

From schools to colleges and renowned international universities, such as Sunway International School, Sunway College and Monash University, parents would indeed be spoiled for education choices at Bandar Sunway. There is even a unique school for those who aspire to master the arts of French cuisine and patisserie: Le Cordon Bleu Institute.

Furthermore, these houses would be able to fetch good rental yields, adding on to its growing appeal. Once the kids have grown up and "flown out of the coop", the owners could easily choose to have the house rented out to a group of college or university students who wouldn't mind staying there in order to reduce the time taken to get to and from classes.

Full facilities and great amenities are usually aplenty in townships, more so when educational institutions are in the neighbourhood since there is a ready catchment population in the form of the families and students (both local and foreign). Over in the town of Nilai, there are many educational townships that host a number of learning institutions. They include Putra Nilai, Nilai Impian and Kota Seriemas, just to name a few.

Some of the institutions that can be found there include Nilai International

By

CAITLYN NG LI YUIN liyuin@ ocision.com

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1 Monash University in Bandar Sunway consistently ranks among the top one per cent of world universities.

2 The sprawling campus of the Universiti Sains Islam Malaysia in Putra Nilai is surrounded by lush greenery.

3 Residents of Nilai Impian, a township touted as the "Lake Garden Township", are enveloped by the luxuriance and serenity of nature.

4 Putra Nilai is chock-a-block with retail shops and supermarkets that cater to the needs of its residents and visitors.

5 The KESAS highway is one of the many major arteries that seamlessly connects UEP Subang Jaya to other parts of Klang Valley.

6 Taylor's College in Subang Jaya is a centre of excellence in pre-university studies, renowned for its academic track record.

School and Universiti Sains Islam Malaysia in Putra Nilai; Inti University College and Nilai University College in Nilai Impian; and the world-class KPJ Healthcare University College in Kota Seriemas.

Medical centres, sports complexes and retail shops can be found packed into these sprawling developments to service people and provide a range of activities. Taking into consideration that there are people from all walks of life, developers would have ensured a balanced mix of eateries like fast food chains, local Malaysian delights and international cuisines. Leisure and recreation

can be done at any one of the beautifully landscaped parks such as the Discovery Park in Nilai Impian, Laman Ilmu in Kota Seriemas and the Nilai Springs Golf and Country Club in Putra Nilai.

As for public transportation and infrastrure at these townships, you can be sure that residents and visitors will have the best ease of accessibility. UEP Subang Jaya by Sime Darby is another prime example of a highly successful educational township, with plenty of major highways like the Federal Highway, LDP Highway, New Klang Valley Expressway (NKVE) and KESAS Highway

linking to it. In addition, there is the existing Subang Jaya KTM station and the upcoming LRT Putra Line extension which will pass through Subang Jaya and UEP Subang Jaya.

With so much going for these townships, it's no surprise that many developers are now trying to emulate the allure by leveraging on education theme in their developments.

Not only will this benefit the residents and their future generations, but bring plenty of visitors to the development (commercially advantageous) as they drop their kids off at the premises.

STARPROPERTY.MY SUNDAY 18 OCTOBER 2015

07VIEWPOINT

2016 Budget, SMes and MittelStand Model

Mittelstand companies are incredibly focused and almost always family-run. The young men and women go through the apprenticeship system and learn that the goal is excellence.

– Tom Peters

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T'S time for the 2016 Budget to be rolled out and all the noise in the market is that the 2016 Budget will be a very conservative one with little in the way of goodies or incentives for companies or the man in the street. It appears that we just can’t afford to have a generous Budget and try to balance the books at the same time.

I am not an economist so I am not attempting to write a thesis on what ails the country and giving advice on what the Government should be doing in the way of crafting the 2016 Budget. What I would like to put forward is a proposal on what we need to do in building a better future for all of us and I pray that we are sufficiently enlightened to address it on Oct 23.

I am taking a narrow focus in this article by discussing the impact the Budget could have on the industrial sector. I am not expecting any response to what I will be discussing in this article except that, perhaps, it could be considered as a strategy for the future.

Over the last three years, I have travelled fairly extensively in Germany looking at industrial assets and visiting German companies. Germany's economy is the strongest in the world. Its trade balance – the value of its exports over its imports – is second only to China's, which is all the more remarkable since Germany is home to just 82 million people. Its unemployment is lower than at any time since right after reunification. Growth is robust, and real wages are rising.

One key to Germany's miracle is the Mittelstand, as the family-owned small and mid-size manufacturing firms that dominate the economy are known. The German Ministry of Economic Affairs defines the Mittelstand as firms with up to 500 employees and between €1mil (RM6.3mil) and €50mil (RM318mil) in annual sales. This cohort of businesses, which are often family-owned, makes up more than half of Germany’s economic output.

In Germany, the Mittelstand is viewed as a single unit, across the country: • It contributes about 70% of the employment in Germany • Provides skills and technical development • Engine of growth for economy • Focus of export-led strength I believe that industrial platform in Malaysia should be modelled on the German “Mittelstand” that is focused primarily on SME development. In Malaysia, our definition of SME is similar, albeit turnover is smaller where the definition of an SME is a company having a sales turnover not exceeding RM50mil or full time employees not exceeding 200 workers.

Adopting the Mittelstand model of industrial development as a single platform

AN OPINION DATUK STEWART LABROOY Datuk Stewart LaBrooy is the Chairman of Malaysian REIT Managers Association.

is both value accretive, and nation building.

The success of Malaysia’s SMEs has been very uneven. The ones that lag are normally located in poorly presented old industrial estates and are fairly underinvested in the latest technology or management processes. They very rarely command a leading position for their products globally. The Government has always recognised the importance of SME as a major cog in our economic machine and have been very supportive in terms of incentives.

The Government has recently announced measures to further boost the economy and the SME sector was singled out for attention. They include a RM2bil Working Capital Guarantee for SMEs affected by the depreciating ringgit, exemption on 90 tariff lines in the manufacturing sector and a further RM1bil for the Domestic Investment Strategic Fund.

However, we need to set our house in order before we start pumping money to stimulate growth.

What needs to be done?

1. A centralised approval and management process: We need to streamline the agencies that deal with potential investors or at least the way they work together. We see there is a lot

1 A production facility at the Mittelstand.

2 An aerial view of a Mittelstand.

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of duplicity in agencies at federal and state levels, sometimes working at cross purposes.

The solution is to have one central agency like Thailand where the Board of Investment manages a large number of industrial estates with infrastructure and can direct FDIs to a variety of industrial estates. In Singapore and Vietnam, estates are also regulated and managed by a central authority.

2. Improve infrastructure: Manufacturing and logistics will lead the new momentum of FDIs and local SME investments as Malaysia rightly capitalises on the huge investment it has made over the years in infrastructure.

We need to plan for a second port the size and quality of PTP in the north to cater for future industrial developments to capitalise on the movement of exports from southern Thailand. Such infrastructure investments are deemed necessary to bring growth to the Northern Corridor.

We need to plan for where the next wave of industrial locations should be based on our demographic profile and build the transport networks around it. Excellent infrastructure, services and access to a population base is needed to support these industrial cities.

3. New modern industrial estates need to be developed: Sadly there are very few well established industrial estates that are gated and guarded, professionally managed or wellpriced. Developers are keen to just sell raw land for maximum profit without any incentive to make the industrial spaces work.

Industrial land has been subject to speculation and prices have escalated to a point where it has become uneconomical to promote industries in these locations.

Foreign companies have many choices and cost of land is a key consideration.

To keep land cost down, conversion charges and stamp duties should be waived.

State governments should start to behave like their counterparts in

Europe who give incentives to new industries to their municipalities.

Land costs have to be capped to around RM25 to RM40 per sq ft delivered with infrastructure. Federal and state governments have to invest in bringing infrastructure to these sites so costs can be mitigated. Penang has set an excellent example over the years on how a state development corporation manages its industrial development activities.

Federal and state governments should team up with industrial development specialists to create and manage these parks to international standards.

There has to be a fast track approval system in place for these estates and their buildings. Building standards must be grade A, green and in line with local and international best practices.

4. Creating the management and workforce of tomorrow: Human capital is a key part of the Mittelstand strategy. The aim would be to set up colleges near the main industrial hubs so students can undertake industrial training at the factories in the estate as they progress through school. The industries should be consulted as to the skills sets they are required to have upon graduation and the foundation courses they feel are necessary.

Invite technical schools and colleges to set up in Malaysia and provide tax incentives in training local students and establishing skills mentoring programmes.

The top management should be incentivised to undertake MBA programmes so they may learn to adopt the best management practices, governance and technology in order to compete globally.

To summarise, I believe that if these issues are dealt with urgently we will reap the key benefits of such an undertaking by: • Attracting MNCs to Malaysia and energising our own SMEs, which will add to the technical skills of our workforce and technology transfer; • Creating new and dynamic training and educational platforms to drive industry and reducing underemployment among our youth; • Creating new investable grade A industrial properties; • Delivering improvements in skills means productivity increases, quality of products and services and higher wages; • Enabling higher wages and employment will create a huge driver for the growth in real estate from housing, commercial. retail to industrial, • Taking advantage of Malaysia’s amazing infrastructure and location at the centre of Asean; • Acting as the industrial and logistics hub for South-East Asia, India and East Asia; • Developing long-term infrastructure projects that contribute to GDP, FDI and are export focus.

STARPROPERTY.MY SUNDAY 18 OCTOBER 2015

08

SPECIAL FOCUS

THE APPEAL OF WORLD-CLASS EDUCATION HUBS

More can be done to promote education-themed developments.

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AKE a peek into many educational establishments across Malaysia and one would find a high population of both local and foreign students pursuing their chosen fields of studies in various parts of the country.

Malaysia is safe, has many options for education and is relatively cheaper compared to other countries, yet providing quality education and experience like those in other leading countries around the world.

Property is also a key factor for some parents choosing Malaysia as an educational destination. The depreciating ringgit is attracting many parents based locally as well as abroad to invest here, to house their children during the education period. Parents can use these student accommodation as a means of generating additional income once their children have completed their education.

Aside from foreigners and locals, expatriates living in Malaysia also influence the growth of the education sector in Malaysia. Malaysia currently faces a growth in student population due to multinational companies placing their headquarters here including Nestle, Ikea, Tesco, Dell, Intel as well as Hewlett-Packard.

These expatriates would usually opt to place their children in international schools due to the syllabus that is covered, for example British, American, Australian and the International Baccalaureate syllabus.

There are several parts in Malaysia offering world-class education for primary, secondary and tertiary, thanks to the increase in the number of international schools as well as higher educational institutions that have grown in numbers and are placed in locations easily accessible by the masses.

It is clear that education helps abundantly in the growth of areas such as Bandar Sunway that is home to a number of prestigious education institutions.

They include Sunway University College, Monash University Malaysia, Taylor’s University Lakeside Campus, Taylors College Subang Jaya Campus as well as INTI International College Subang.

These institutions are popular among students from Indonesia, Sri Lanka, Turkey, the Maldives and Africa, just to name a few.

While pre-university courses are extremely popular, some common universitylevel courses here include culinary arts, communication and media management, architecture, interior design and psychology.

Students looking to rent property in this area will have many options to choose from as Bandar Sunway is a well-integrated township that is able to meet the needs of the students. For students looking to stay close to the educational institutions, there are many student apartments that are well connected to the other parts of Bandar Sunway via public transport as well as pedestrian walkways.

There are also other accommodation options that are available in Bandar Sunway that are connected to many establishments

By

viknesh ashleY vikneshashley@ thestar.com.my

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1 Matrix Global Schools offer holistic education that meets experiential learning.

2 Foreign companies set up in Cyberjaya require work force supplied via Malaysian ICT graduates, instantly providing job opportunities.

3 Malaysian and foreign students make up the student pool in Malaysia today.

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such as Sunway Pyramid Mall and popular educational institutions, including Sunway University College, Monash University Malaysia and Taylor’s University Lakeside Campus.

Another excellent example of education driving growth of a city is Cyberjaya, that has gained popularity by being an educational hub particularly for private tertiary institutions. Multimedia University was introduced as one of the "starter projects" for Cyberjaya in the Government's effort to produce more ICT graduates to meet the demand of the MNC companies as well as other IT companies within the smart township. Since Multimedia University, Cyberjaya has attracted many other institutions to set up campuses there.

According to Setia Haruman Sdn Bhd executive director Lao Chok Keang, Cyberjaya is home to Multimedia University, the Limkokwing University of Creative Technology, Cyberjaya University College for Medical Science, University Islam

Malaysia and Kirkby International College.

He says the other institutions of higher learning near Cyberjaya include the Harriot Watt University and University Malaysia of Computer Science and Engineering in Putrajaya.

It is also home to the ELC International School, Seri Puteri Girls School as well as primary and secondary government schools to meet the needs of Cyberjaya’s growing residential population.

“Additionally, staff working in Cyberjaya can turn to the Knowledge Workers Development Centre (KDC) by Multimedia Development Corporation (MDeC) where on-going training as well as certification program are conducted.

“Cyberjaya currently holds a large population of students totaling up to 23,000 students in the various institutions,” says Lao. More are in store for Cyberjaya.

A Chinese school called Sekolah Jenis Kebangsaan China Union is currently

being developed here to better serve the Chinese community in Cyberjaya as well as in Putrajaya , while a local university has bought a piece of land to build its main campus there.

There is news of a Korean International School being built on the fringes of Cyberjaya due to open in 2016 and UiTM Denkil Campus set for operation in 2016.

According to Matrix Concepts (Central) Sdn Bhd executive director Lim Kiu Hock, many townships in Malaysia have grown successfully in the past due to the presence of education institutions. One of the earliest areas to have transformed due to education include Subang Jaya where one of the first international school first kicked off with Sri Kuala Lumpur School in the 1990s.

“Over in Seri Kembangan one would have noticed in its early years, when the area was still underdeveloped, that the Alice Smith School was a huge pull factor for people buying into the area.”

Matrix Concepts hopes to replicate the

STARPROPERTY.MY SUNDAY 18 OCTOBER 2015

09SPECIAL FOCUS

Education oFFErings in thE southErn corridor success of successful edu-city destinations by providing a township that is centered on an exclusive first-of-a-kind educational offering in Seremban, dubbed Bandar Sri Sendayan.

The “star” of this township is the Matrix Global Schools providing international and national education as well as preschool education based on the Cambridge International Certificate of General Secondary Education (ICGSE).

Nilai is known for its array of educational offerings, including Nilai University, Nilai International School, Inti International University Nilai, Global Institute of Studies and Nilai International College. It is clear that with its wide arrays of education products, Nilai is meeting the needs for primary, secondary and tertiary education. How does Matrix Global Schools differ?

Matrix Global Schools CEO Felix E.B. Lee says, “Our concept of learning here at Matrix Global Schools is unique, proving that education can in fact be intertwined with learning as the school employs a balance of in-class as well as outdoor learning, bringing about a whole new experiential learning curve for students assisted by modern technology as well as state-of-the-art facilities.”

Matrix Global Schools offers national, international as well as pre-school education.

The Cambridge Curriculum has been infused into the syllabus of students studying the national school syllabus at Matrix Private School just in case the students may later choose to sit for the core papers of ICGSE. The transition will then be a lot easier.

Lee says Matrix Global Schools also facilitates the mastering of Mandarin via the schools' collaboration with Kongzi Institute, University Malaya, instantly recognizing as well as authorizing the Seremban campus as the Test Centre for

Exciting ProjEcts at starProPErty.my Fair

StarProperty.my is gearing up to attract property hunters in the Klang Valley.

BY NURUL ASMUI MD AZMI asmui@ocision.com

P

ROPERTY hunters will be able to shop around for their dream property to buy at the StarProperty.my Fair from this Thursday until Sunday at the Tropicana City Mall, Petaling Tropicana City Mall 22 - 25 October 2015 10am - 10pm Jaya, for the second time this year.

The four-day event offers the perfect platform for real estate developers to display their latest projects and connect with potential clientele. First-time buyers, homeowners and investors should not miss out this opportunity to shop for their ideal home.

A wide range of projects from 13 prominent developers are waiting to be discovered at the fair. The list of developers include DK-MY Properties Sdn Bhd, Ekovest Bhd, IJM Land Bhd, Ireka Engineering & Construction Sdn Bhd, Land & General Bhd, Mah Sing Group Bhd, Matrix Concepts Holdings Bhd, Naza TTDI Sdn Bhd, See Hoy Chan Sdn Bhd Group, Setia Haruman Sdn Bhd, Sime Darby Brunsfield, Titijaya Land Bhd and UEM Sunrise Bhd. Besides the extensive property displays, there will be two promotional activities going on. Visitors at the fair can participate in a quick survey at the StarProperty.my booth to be in the running for a Samsung Galaxy Tab 3 Lite or a one-year subscription of The Star e-paper worth RM350.

Additionally, those who purchase a property from any developers at the fair can participate in a lucky draw by submitting their sales order form to StarProperty.my booth for a chance to win Senheng cash vouchers worth RM888, RM2,888 and RM5,888.

The StarProperty.my Fair will be held from Oct 22 to 25, from 10am to 10pm.

Admission is free. For more information, visit fair.starproperty.my

The much anticipated StarProperty.my Fair will feature 13 reputable developers showcasing their dazzling projects.

the Office of Chinese Language Council International (Hanban) in Beijing to conduct the International Chinese Proficiency Test carried out by teachers serving at the school from Beijing, China.

NEWS

STARPROPERTY.MY SUNDAY 18 OCTOBER 2015

10

FEATURED DEVELOPMENT

Bandar Sri Sendayan SoarS in ruStic SeremBan Matrix Concepts brings quality education to its flagship township.

BY Viknesh AshleY

vikneshashley@thestar.com.my

B

ANDAR Sri Sendayan (BSS), dubbed the next Damansara of Seremban, is an integrated, selfsustaining mixed-development sprawled over 5,233 acres. It is adding another feather to its cap as an education hub.

The flagship development by Matrix Concepts Group is home to a number of prestigious institutions – Matrix International Pre-School, Matrix Private School and Matrix International School.

Since the schools opened their doors in September 2014, the student enrolment is now close to 500, and is targeted to reach up to 800 students in the coming intake.

“BSS is split up into five components, which include residential and recreational development that makes up 35% of the township, commercial and institutional development (10%), Sendayan TechValley occupying 20% of BSS, TUDM Academia and Training facility taking up 14% and the remaining 21% of the land will be for orchards," Matrix Concepts Group executive director Lim Kiu Hock explains.

Lim adds, “BSS that will feature more than 10,000 units of housing and commercial property will have an estimated gross development value (GDV) of more than RM5bil for completion over the next seven to eight years. “This unique township is strategically located within the Greater Klang Valley area."

Seremban folks will be able to witness the blossoming of this self-sustainable township that cater to the different needs of property buyers looking for an affordable solution within a holistic environment. The township also manages to strike a balance between offering a serene lifestyle, yet is just minutes away from the city.

Occupying some 20 acres at the heart of BSS is Matrix Global Schools campus, with Matrix Private School, offering primary till secondary school education based on Malaysia’s national curriculum KSSR and KSSM, while Matrix International School offers syllabus based on the Cambridge IGCSE examinations. Parents with preschool children can enrol them at Matrix International Pre-School to give them a good head start in their learning journey.

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The uniqueness of Matrix Global Schools lies in the creation of a global curriculum based on the best of East and West. National school students studying here can later progress as international school students via this approach.

Visitors to the Matrix Global Schools will be instantly fascinated as well as drawn to the unique architecture and interior design of the school that has a vintage British colonial feel.

Matrix Global Schools CEO Felix E.B. Lee elaborates, “Our fully equipped campus is fashioned after British residential or boarding schools that can cater to up to 2,500 students. We adhere to a policy of 20 students per classroom in the international school and 25 students in the private school.

“As Matrix focuses on providing a holistic and experiential learning experience, Matrix Global Schools are not only equipped with auditoriums, lecture theaters and a multipurpose hall, but also rugby and football fields, music rooms as well as a performing arts centre and also a recording studio.”

It strives to provide state-of-the-art facilities, while maintaining an ideal teacherstudent ratio, ensuring a strong mentormentee bond. Lee elaborates, “Some of the unique facilities offered within our schools include our very own stadium as well as a sports complex housing an indoor climbing

wall and outdoor rope course to facilitate activities such as absailing and flying fox.

The school also has a lake that can be used for kayaking.”

BSS will also have a number of government schools that include Sekolah Menengah Kebangsaan Taman Nusari, as well as a Chinese primary school currently under construction, that is to be relocated from Parit Tinggi in Kuala Pilah. The school is targeted to open next year.

Matrix Concepts has launched some 30 phases of projects in BSS, with 1,889 units of residential and commercial property under construction. Another 2,500 units are to be launched over the next three years.

Property prices at BSS are affordable compared to the surrounding developments.

Suriaman 3 double-storey superlink homes are priced from RM204 per sq ft, while semidetached homes are from RM1,338,888.

The next launch for the Seremban education township will be Fellona doublestorey houses of 22 ft by 80 ft. These units are the last parcel of the Hijayu series featured within BSS. The homes offered at BSS are designed contemporarily, with minimalism in design and layout, emphasizing on architectural beauty as well as layout practicality to create comfortable living for buyers.

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STARPROPERTY.MY SUNDAY 18 OCTOBER 2015

11FEATURED DEVELOPMENT

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8 1 The majestic gateway into Matrix Global Schools.

2 The lobby at Matrix Global Schools looks as though it has popped out of a "Harry Potter " book.

3 Matrix Concepts (Central) executive director Lim Kiu Hock says property prices in BSS are suited to the masses yet keeping quality at its core.

4 Outdoor activities are of utmost importance seen by the space allocation for the school's stadium as well as sports complex.

5 The clock tower is the main assembly point within the school.

6 Matrix Global Schools CEO Felix E.B. Lee says learning here is truly unique as the school focuses on holistic and experiential learning.

7 A glance into one of the more exclusive phases of the township.

8 The homes in BSS focus on maximising space as well as natural lighting into each and every home.

As of now, up to 5,833 property units in BSS have been delivered to the buyers since 2006, representing 57% of the planned developments in the vast township.

The residents in Bandar Sri Sendayan will be able to enjoy full-fledged condominium facilities. The BSS d'Tempat Country Club is a premier business – and family-oriented club offering a wide range of wholesome recreational facilities including sporting, food and beverage outlets, retail stores, as well as a banquet hall that can cater up to 800 people. "This club will pose as the centre of activity for our township while promoting family bonding,” Lim says.

Those who prefer outdoor facilities can enjoy the access of the 26-acre Sendayan Green Park, designed to create community interaction and encourage activities for all ages. The park offers facilities such as an amphitheater area, a football field, skating area and platforms, yoga and tai chi lawns, gazebos as well as fitness stations.”

Those looking for daily retail needs can depend on the Sendayan Merchant Square, a 100-acre central business hub for the community as well as surrounding areas. The community will be able to enjoy their shopping experience here with proposed boutique retail outlets and dining options. The Sendayan Merchant Square is located a stone’s throw from the BSS Hijayu residential series.

True to its promise of increasing the number of jobs within BSS is the township’s own technology park, dubbed the Sendayan TechValley that has attracted

local and foreign investors to set up operations there. This is significant for the development of the township as it generates many job opportunities to those living within BSS, in line with the state government's vision of staying and working in Seremban.

For the security of residents, projects at BSS are built with anti-climbing fencing in selected new phases and single entry and exit points with guardhouse. There are also three police posts in the township that will be able to further beef up the security of the residents.

Lim states, “We want to work closely with the residential communities as well as local authorities to ensure safety within the township is enhanced. This is how we show that we take much pride in the safety and security of the community as we work towards creating a safe haven for our residents.”

Bandar Sri Sendayan is strategically located near major highways, approximately 7km to North- South Expressway exits at the Seremban- Labu Toll. Adding to that, the township is also easily connected via the Kajang- Seremban Expressway (LEKAS), North-South Expressway Central Link (ELITE).

An upcoming highway stretching from Senawang to Kuala Lumpur International Airport (KLIA) called the Senawang-KLIA Expressway will shorten the travelling time to KLIA and KLIA 2 from the township.

Its accessibility will be further spruced up with a high speed rail and a proposed station in Seremban.

STARPROPERTY.MY SUNDAY 18 OCTOBER 2015

12

FEATURED DEVELOPMENT

Forces oF attraction

Step into the revival of Klang with a vibrant new development that is home to a diversity of exciting elements.

By CAITLYN NG LI YUIN

liyuin@ocision.com

W

HAT would make a person gravitate towards a particular place? Would it be the numerous amenities in the surrounding area, satisfying all needs and wants? How about the environment, either surrounded by upbeat vibrancy or verdant serenity? Whatever the reason, discerning homebuyers will be able to find all that and more under one convenient address: Gravit8.

This up-and-coming development looks poised to change the landscape of Klang South, ushering in a new phase of a dynamic and modern era. Here is where living, leisure, work and entertainment can be found, all in one spot. With a simple play on the word "gravitate", the number "8" was also included in the name as an allusion to the eight planned high-rise towers which will surround a landscaped lake.

"We believe that once the entire development is complete, Klang folks and the surrounding communities will be drawn towards Gravit8. The contemporary maritime-themed concepts injected into this project will serve as a natural pulling force.

Exciting the senses of the visitors, allowing them to enjoy the facilities and to patronise the retailers/shops available, is what we aim to achieve," enthuses Mitraland Group Sdn Bhd CEO Chuah Theong Yee. With a total gross development value (GDV) of approximately RM1.3bil, Gravit8 is a mixed development comprising service apartments, SoHos, hotel, retail outlets, shopping mall, corporate offices as well as a proposed medical centre next door to the development, allowing it to be completely self-sustaining. By transcending the typical developments in the surrounding vicinity, residents and visitors will be spoilt for choice by the number of activities and areas in which they can spend their quality time.

Indeed, Mitraland has engaged only the best experts in landscaping and designing, in order to create a lush sanctuary that blends both earthy and water elements together. In the heart of Gravit8 is the splendid eightacre lake, which will not only be a visually impactful icon, but also the perfect social

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gathering point for people from all walks of life. A massive aquarium will be placed in the two-storey Pier 8 retail mall, serving as the main attraction.

Mother Nature is welcomed into the development with the addition of a threeacre green deck on the podium of the service apartments. This is where the full clubhouse facilities are housed, where residents will be able to enjoy the swimming pool, multifunction hall, gymnasium and minilibrary, to name a few. In the mall itself, there will be an al fresco food haven that brings together all the best seafood offerings and local delicacies.

The first phase of the development saw 22 units of three- to five-storey shops launched, while Phase 2A consists of the residential aspect: two 32-storey towers

2 1 A stunning aerial view of the Gravit8 masterplan that encompasses all aspects of life - from living to entertainment, working to playing.

2 The two-storey retail mall boasts clean contemporary designs and will house the firstof-its-kind seafood and local delicacies haven in keeping with the maritime theme.

3 One of the biggest attractions in Gravit8 will be the massive aquarium that stands tall in the centre of the retail mall, acting as both a focal point and great educational subject.

4 The vibrant concept of Gravit8 is one of its drawing factors, enticing people from all ages and walks of life to come and enjoy the cohesive blend of facilities and amenities.

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housing the service apartment units. Keeping in accordance to the prevalently maritime theme, the towers are named "Nordica" and "Adria", and have distinct nautical touches woven into the design of the towers. The units come in built-up ranging from 600 sq ft to 1000 sq ft, and will have various layouts to suit the needs of each owner.

These lofty plans to bring a lifestyle project of such a large-scale to the Klang South community will be the talk of the town, especially since Mitraland has priced the units below RM500,000, allowing for residents to enjoy in the lap of luxury, but at an affordable rate.

"We decided to permeate Klang South as we truly believe this is a new growth area, like how we had envisioned Cheras South or Balakong to be when we were developing C180. With Gravit8 making its presence felt, we aim to breath new life into Klang South and thus make it the new epicentre – a place that will fulfil the needs of the community," says Chuah.

With a strategic location in Kota

Bayuemas, this 15-acre freehold development is merely sited one km away from the proposed Johan Setia LRT station, in addition to being next to the Shah Alam Expressway (Kesas). The main advantage though, is the direct connection to major highways that makes travelling to any other parts of Klang Valley effortless. Residents and visitors alike will be able to reach other established areas such as Kota Kemuning, Shah Alam, Petaling Jaya and the Kuala Lumpur city centre with ease.

Gravit8 is proportionately balanced to cater for not only the young working adults who are looking to invest in their first property, but for business-minded investors as well. With a cohesive mix of multiple sections that have a unique maritime theme, it will not only create a calming effect, but can also serve as a great educational subject – as seen by the life-size aquarium at Pier 8.

The best of both worlds – urban facilities set in a naturally lush surrounding – gives residents the opportunity to enjoy the best of both worlds!

STARPROPERTY.MY SUNDAY 18 OCTOBER 2015

13VIEWPOINT

Rising PRoPeRty PRices – PaPeR gains mean nothing I increase

n our article income of RM91,4402 in Kuala Lumpur for 2014, last month, we highlighted the Rachel will discover that report by Khazanah half of the population in Kuala Lumpur cannot Research Institute on By National afford to buy her modest ‘Making Housing House apartment. Rachel can Affordable’, which showed Buyers only hope to find jointthat the Malaysian allAssociation buyers in the middle house price index grew steadily at a compounded management position with annual household annual growth rate income of at least (CAGR) of 3.1% from 2000 to 2009, and RM166,667 to buy her apartment to be deemed suddenly accelerated at a The National House CAGR of 10.1% between as ‘affordable’.

Buyers Association 2009 and 2014.

The situation is (HBA) is a non-profit, equally bleak for Deepak Many existing property non-governmental owners are overjoyed to and Ismail who could organisation afford to buy their see steep price increase in manned purely by volunteers with landed property just a their properties compared the motto: Striving decade ago whilst only to the cost of acquisition. for the rights and in middle management These gains are referred interest of house position. Deepak and to as 'paper gains' as buyers.

Ismail must also hope the gains have yet to be realised and only exist on to find joint-buyers in HBA can be reached senior management paper. However, we at the at info@hba.org.my position with combined national House Buyers or its website Association (HBA) are household income of at www.hba.org.my. least RM183,333 and of the opinion that steep price escalations especially RM266,666, respectively, within a relative short span to buy their intermediate of time are not necessarily a good thing. link house.

For purpose of case study, we use the real life stories of some of our volunteers who were willing to share some data of their property purchase.

An overview of the type of properties bought by our volunteers We have ascertained that based on their together with their income levels and current salaries, Deepak, Ismail and current property values are outlined in Rachel will find it ‘unaffordable’ to buy Table 1. their current properties. This would Based on Table 1, it would be mean if they want to acquire another reasonable to assume that Deepak, property, they would have to dispose Ismail and Rachel should be happy of their current property and hopefully, with their 'paper gains', but looking with the gains and cash from selling at it deeper will reveal a very different their current house, be able to afford situation. something bigger and better.

However, based on our calculations in Table 2, even after disposing of their current properties, Deepak, Ismail and Rachel still cannot afford the 'upgraded property' that they desire.

In 2004, Deepak, Ismail and Rachel From Table 2, we can see that managed to buy their first home based back in 2004, the loan instalment was solely on their salaries and the price was about 16% of their respective salaries. within the three-times annual income, This is well within the range that which was considered as 'affordable'.

Bank negara's ‘rule of thumb’ that the However, just 10 years later and maximum single loan instalment is despite climbing up the corporate a third of the borrowers’ income and ladder, all three of them would find maximum combined loan instalment it ‘seriously unaffordable’ to ‘severely is half of the borrowers’ income.

From the above table, we find unaffordable’ to buy the same property that despite disposing of their current based on their current salaries. This property which has enjoyed steep gains, would also mean that other executive the new loan instalment as a percentage level wage earners to the senior of their respective incomes is much management wage earners will also higher than before, ranging from find it ‘unaffordable’ to buy the same 43.47% to 55.07%. This would imply property. that to buy their upgraded property, This will effectively mean that the buyers like Deepak, Ismail and Rachel target market for Deepak, Ismail and will have to spend a larger chunk of Rachel should they want to sell their their income and reduce on other current house has shrunk significantly. spendings and possibly have no spare With a median annual household

Housing Matters

new purchase is also out of reach

shrinking target market

cash or savings to weather any sudden emergencies.

in market value does not equate to increase in built quality or living quality

Table 1 - Profile of Properties bought by Deepak, Ismail and Rachel Deepak

Ismail

Year Acquired

2004

Type

Intermediate Double Storey Intermediate Double Storey Link House with built-up of Link House with built-up of apprx 1,800 sq ft apprx 1,600 sq ft

2004

Rachel 2004 Apartment with built-up of apprx 1,000 sq ft

Location

Kajang

Kota Damansara

Old Klang Road

Price Bought

RM250,000

RM280,000

RM140,000

Annual Salary in 2004

RM84,000

RM96,000

RM48,000

Position in 2004

Middle Management

Middle Management

Executive

Multiple of Property Price over Annual Income in 2004

2.97 times

2.91 times

2.92 times

Affordability Rating for 2004 1

Affordable

Affordable

Affordable

Indicative current market price (2015)

RM550,000

RM800,000

RM500,000

Paper Gain

RM300,000

RM520,000

RM360,000

Current Annual Salary in 2015

RM126,000

RM144,000

RM72,000

Current Position

Senior Management

Senior Management

Middle Management

Without insulting any house Multiple of Property Price over Annual 4.36 times 5.55 times 6.94 times Income in 2015 buyer, a property that cost RM140,000 to buy from a Affordability Rating for 2015 1 Seriously Unaffordable Severely Unaffordable Severely Unaffordable developer will always be a Annual Household Income required RM183,333 RM266,666 RM166,667 “RM140,000 property”. Just for property to be deemed affordable because the market price has increased to RM500,000, it Table 2 - Current Salary vs Price of Upgraded Properties does not mean that the quality Deepak Ismail Rachel has suddenly improved, giving the Property Price in 2004 RM250,000 RM280,000 RM140,000 new buyer a RM500,000 ‘built quality Loan amount taken @ 90% financing for 30-years in RM225,000 RM252,000 RM126,000 property’. This is the situation faced by 2004 many prospective house buyers; that Annual loan instalment RM13,522 RM15,144 RM8,113 the prevailing prices of properties, both existing and new properties offered by Annual salary in 2004 RM84,000 RM96,000 48,000 developers, do not reflect their built Loan instalment as percentage of salary in 2004 16.1% 15.8% 16.9% quality and living environment. Basic Current loan outstanding in end of 2014 RM179,623 RM201,178 RM107,774 'bread and butter' properties that were Indicative current market price (2015) RM550,000 RM800,000 RM500,000 affordable for the lower- and mediumGain on disposal before ancillary expenses RM370,377 RM598,822 RM392,226 income earners just 10 years ago are now even unaffordable for the highPrice of upgraded property RM1,200,000 RM1,800,000 RM900,000 income earners.

Loan required to purchase upgraded property RM829,623 RM1,201,178 RM507,774 As a result, many younger house New annual loan instalment based on 4.4% for RM54,773 RM79,303 RM33,524 buyers are willing to settle for smaller 25-years but cheaper units. Capitalising on this Current annual salary in 2015 RM126,000 RM144,000 RM72,000 new trend, developers are building more Loan instalment as percentage of current salary 43.47% 55.07% 46.56% smaller units that are actually studiostyled shoe-boxes with one or two bedrooms of no bigger than 650 sq ft, and priced them at around RM500,000 current owners, as shown above, when so that joint middle-income earners can Notes: it is difficult for owners to sell their afford it. But is it really worth paying current property or upgrade to a larger so much for something so small? In the 1 Please refer to property. Paper gains are only paper long run are such small units conducive our September gains until the property is sold, but for family living?

21 column for the when your ‘bread and butter property’ Affordability Rating. is no longer affordable to half of the population, something has gone terribly 2 The Household wrong somewhere. Existing property Income and owners cannot afford to upgrade their Basic Amenities current properties and buy something Survey 2014 by Conventional wisdom has taught us ‘bigger and better’ and are stuck with the Department of that investing in properties is the best their current homes. Clearly, such a Statistics revealed hedge against inflation in the long run. situation does not benefit even existing that the Median Many prospective house buyers want property owners.

Monthly Household to invest in properties as a retirement There is no real magic number Income for 2014 fund or to fund their children’s per se on what is the acceptable or in Kuala Lumpur education and hope that the returns maximum annual increase in property was RM7,620 or from investing in properties are higher prices. So long as the annual property RM91,440 per than merely keeping their money in the increase is higher than the inflation annum. bank. Hence, every house buyer wants rate and the rate of fixed deposits to see healthy appreciation in the value offered by banks, and still affordable of their property. to its intended target market, house However, when property prices buyers who buy for their own stay escalate too fast within a short span and for long term investment should of time, it can be harmful even to be contented.

is there a magic number?

STARPROPERTY.MY SUNDAY 18 OCTOBER 2015

14

FEATURED DEVELOPMENT

A lifestyle-focused development

LBS incorporates over 70 lifestyle facilities into BSP21 to pamper the residents of Bandar Saujana Putra.

BY NURUL ASMUI MD AZMI asmui@ocision.com

B

ANDAR Saujana Putra, a selfcontained township by LBS Bina Group Bhd (LBS), stands out from the rest when it comes to meeting the everyday and lifestyle needs of its residents. Launched in 2003, the 850acre township with a population of over 30,000 was recently bestowed the award of “Best Development Marketing, Malaysia” by the Asia Pacific Property Awards (APPA) 2015.

Conveniently surrounded by future commercial hubs, hospitals, shopping centres, hypermarkets and a developing education hub, Bandar Saujana Putra is a model of community living that promises wholesome values and enriching lifestyles.

In line with LBS’s business model of building mostly affordable and quality homes, Bandar Saujana Putra features housing units that are within reasonable price range to cater to the rising demand for affordable housing. The latest development in Bandar Saujana Putra by LBS is a serviced residence project, BSP21.

exclusive designs

Strategically built on a 21-acre land in Bandar Saujana Putra, BSP21 consists of 10 high-rise blocks that sit on three separate podiums, and are interconnected by sky bridges and green spaces. The blocks that range from 18 to 27 storeys will have a total of 2,602 serviced residence units and 28 shops.

With a gross development value (GDV) of RM1.4bil, BSP21 is a unique development with a 66,000 sq ft four-storey clubhouse and over 70 lifestyle amenities constructed on an eight-acre recreational facility. Those looking to unwind can go over to the clubhouse, Podium A, Podium B, Podium C, Ground Floor and the rooftops to enjoy the facilities that are designed to accommodate every age groups.

To cater to different needs of homebuyers, there are eight different layouts available. The built-up ranges between 610 sq ft and 1,558 sq ft with one to four bedrooms. Each unit is designed to have wide special angles, as well as integrated spaces of dining and living rooms to make the whole house feel cosy and spacious.

The flexible space within the units gives residents plenty of creative ways to decorate their interior space to suit their personality.

Artist impression 1

Artist impression 2

Artist impression

Artist impression

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1 The Tree House Pavilion at BSP21 is the perfect place for residents to hang out.

2 The inviting entrance of BSP21.

3 The silver station offers a myriad of recreational facilities for health enthusiasts.

4 Themed playground: A rocket playground specially designed for kids to have fun.

5 Skateboarders can hit some rails at the skate park provided at BSP21.

6 Kids can play imaginatively and creatively at the imagination play area of BSP21.

7 The awe-inspiring pool deck offers a relaxing environment.

conscious residents, including exercise decks for tai chi and yoga, various pools, gymnasiums, court games as well as a rockclimbing wall.

Families with young children will find BSP21 to be the perfect address as it features plenty of imagination stations that will help kids grow and learn, such as specially designed kids facilities and five different playgrounds. Kids will be able to explore, learn new things and make new friends right here at BSP21.

For those who enjoy a quiet, peaceful moments, BSP21 provides wide ranges of gardens, landscaped and inspirational spaces that are perfect to escape the stresses of everyday life. Relax amidst the greenery and enjoy a tranquil atmosphere.

BSP21 also promotes a strong sense of community by providing essential facilities, such as Tree House Pavilion, gardens and rooftop barbecue facilities where residents can make friends and bond with their neighbours.

In addition to that, safety is also crucial to the development of BSP21 as it boasts a three-tier security system for peace of

8 Aerial view of BSP21 at night.

comprehensive facilities

BSP21 is an award-winning development that offers a modern and healthy style of living to the residents without leaving the residential compound. The development boasts 2.7km jogging and cycling track, and a specially engineered exercise station for a safe and secure routine for the elderly.

There are also a skate park and an aerial runway for the young and adventurous, and a range of fitness facilities for health

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mind. The security facility features CCTV monitored lift, podium lobby and car park with panic buttons.

Accessibility wise, BSP21 is conveniently connected to major expressways, including Ekspresway Lingkaran Tengah (ELITE), South Klang Valley Expressway (SKVE),

Damansara-Puchong Expressway (LDP), Shah Alam Expressway (KESAS) and Maju Expressway (MEX).

For its well-planned facilities, BSP21 won an award by APPA 2015 under the category, “Highly Commended Apartment, Malaysia”.

Sunday 18 OctOber 2015

Starproperty.my

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STARPROPERTY.MY SUNDAY 18 OCTOBER 2015

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FEATURED DEVELOPMENT

Ode tO nature

Live, laugh, share and grow in the latest social heart of Kajang.

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By CAITLYN NG LI YUIN

liyuin@ocision.com

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HEN it comes to the creation of exquisite homes located in a master plan that aims to foster a wholesome lifestyle, Tropicana Corp Bhd is right on track with its upcoming gated and guarded development, Tropicana Heights.

Since 1992, the company has pioneered resort-themed lifestyles in each of its exceptional developments, alongside a unique DNA that has raised its profile to one of the leading property developers.

Continuing in that vein, a fine balance of urban city convenience and welcoming communal warmth is what makes this development stand out from the rest. At the luscious enclave, sited on 199 acres of prime freehold land, one can expect to find residential, commercial and recreational spaces coming together to establish a wholesome, fulfilling life for its inhabitants.

Ensuring that Tropicana Heights replicates the same success as its predecessors, every little detail is carefully considered in the crafting of a green-inspired community, where nature is appreciated and relationships are cherished. Inviting green spaces are interspersed with scenic walking trails and a 80-feet panoramic boulevard, encouraging family closeness and fostering neighbourly interactions.

Built on what was formerly the Kajang Hill Golf Club, Tropicana first studied the contours of the land and decided to keep the original landform when designing Tropicana Heights. Enveloped in the verdant beauty of pristine valleys and hills, here is where the residential precincts are anchored around a landscaped 16-acre central park.

"Tropicana decided to build part of the central park first before any of the other components. This is a move rarely seen in other projects, but we did so in order to show visitors and prospective buyers the promise of quality we have made coming to fruition. Seeing is believing, and we wanted to create a holistic ambience first, that is a symbiosis between the architecture and the environment," says Tropicana sales and marketing business development senior general manager Ung Lay Ting.

This tranquil park is complete with a 2.3 km-long walkway which encircles a 750-meter linear lake that forms the breathtaking focal point. It is home to plenty of thoughtful touches such as a wide variety of thematic gardens, children's playground, manicured meeting spaces, pavilion as well as a floating gazebo and platform. There is also a two-acre recreational hub that provides a sanctuary out-of-home with plenty of activity options: Olympic length swimming pool, tennis and badminton courts and sauna, to name a few.

It’s only befitting that a resort homestead with a gross development value (GDV) of RM2.18bil is transformed from a former golf course, given the company’s first ever flagship development. By reestablishing the natural flora, aquatic life and ecosystem, residents and visitors alike will be able to appreciate the seamlessly spacious pedestrian

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7 1 A lush bed of shrubs and flowers creates an entrance statement, welcoming residents and visitors to Tropicana Heights.

2 An aerial view of the landscaped 16acre central park and tranquil 750 metre linear lake that forms the social heart of the development.

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walkways, all of which are complemented by beautiful landscaping, water features and gorgeous parkland views.

With sumptuous yet attentivelyconceived parkview homes, lakeside condominiums, a market square and neighbourhood schools, all conveniences are

3 The interior of a show unit in Parkfield Residences has decor and fittings that are contemporary with a touch of understated luxury.

4 The facade of homes in Parkfield Residences shows clean lines and spacious grounds, perfect for gatherings and family activities.

5 Walking into a home at Fairfield Residences is a delightful experience, with the double volume ceilings creating a sunny and airy expanse.

6 An artist's impression of a home's facade in Fairfield Residences illuminated softly by the light of dusk.

7 Verdant flora and soothing waterscapes give an aura of tranquility to Tropicana Heights 8 As the main arrival area, the pavilion is located at the highest point of the park to allow a breathtaking view of the whole lake.

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located within easy reach. Two phases have been launched so far, the first of which is Fairfield Residences and the second being Parkfield Residences.

The former is an enclave of two- or three-storey terraces with built-up ranging from 2,135 sq ft to 3344 sq ft, where layouts are kept functional and flexible, suitable for a wide array of families and lifestyles. A double volume ceiling in the living area creates an airy expanse and grand first impression that can be perceived throughout the classic yet elegant homes.

The latter is a community of two-storey terraces and three-storey linked semi-Ds, with capacious open-plan built-up ranging from 2,203 sq ft to 3,079 sq ft fit for luxurious living. With a dedicated 4.8-acre private community park located within the secure boundaries of this gated neighbourhood, indulging in the simple pleasures of life with loved ones is now a reality.

Connectivity-wise, Tropicana Heights enjoys some of the best accessibility as it is located seven km away from Kajang and the Semenyih town centre, putting it within close proximity to major road networks and transportation hubs. It is surrounded by a host of shopping, dining, entertainment, healthcare and educational amenities.

The upcoming Klang Valley MRT and KTM stations in Bandar Kajang, proposed flyover to Persiaran Bangi and upgrading of the bridge to Bandar Teknologi to four lanes will also benefit the residents of Tropicana Heights. What is more, there is an estimated RM60mil upcoming flyover that will allow access directly to Persiaran Bangi, with the costs shared by a few developers in the area.

Tropicana Heights is a self-sustained master plan that abounds with featured facilities and amenities for everyone to immerse themselves in conversations, activities and togetherness.