SUNDAY 19 JULY 2015
Tropicana The Residences
A Spectacular Iconic Landmark in KLCC
Tropicana Corp Bhd will further change the city's skyline with its modernist luxury residences that will be the first of its kind in Kuala Lumpur. > P 02-03
THRILLS AND SPILLS FROM HOW PUBLIC SPACES THE TOWERING SKYSCRAPERS MAKE CITIES WORK INSIDE THIS ISSUE
The pace new buildings are cropping up can be fascinating and bewildering at the same time.
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THE 2015 CHALLENGE TO HOUSING THE NATION
Do we have amazing public Outstanding student loan spaces that complement issue is expected to affect the our great architecture? demand for affordable homes.
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Iconic 5-star Tropicana The Residences at KLCC
Tropicana Corp ups the scale in luxury high-rise living By ANGIE NG
angie@thestar.com.my
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UALA Lumpur is upscaling its status as a liveable city with a number of infrastructure projects that will improve the quality of living environment in the capital city, and proof of its growing popularity as a choiced address is seen in the growing number of property projects being built to cater to the expanding city dwellers and business travellers. The capital city’s premier address is undoubtedly still Kuala Lumpur City Centre (KLCC) given the premium attached to its proximity to the iconic Petronas Twin Towers, Malaysia’s national landmark, and to the other lifestyle conveniences. Development projects that bear the KLCC address command a premium over those that are located further away in the other fringe areas of Kuala Lumpur. No wonder a growing list of developers are vying for a piece of the KLCC action that will further change the city’s skyline when more high-rise buildings crop up in the city in the coming years. Given that there are quite a number of projects coming up around the KLCC area, developers have to put in extra efforts and creativity to ensure their projects have unique selling propositions, outstanding amenities, facade and features to stand out from the rest in the market. Undaunted by the competition posed by the other developments that are coming up in the city, Tropicana Corp Bhd is building its most ambitious development, Tropicana The Residences at KLCC (The Residences), on a 1.28-acre plot of freehold land along Jalan Ampang, Kuala Lumpur. This is one of the most prime locations in Kuala Lumpur at the original Millionaires Row and just two minutes’ walk to the Petronas Twin Towers. To give it an edge in the market, Tropicana’s plan is to build a unique iconic project offering chic and modernist luxury residences that will be the first of its kind in Kuala Lumpur. Tropicana Corp has engaged the services of international architectural firm, Skidmore, Owings & Merrill, well-known for its feat in designing international landmarks such as Dubai’s Burj Khalifa, the tallest building in the world, and New York’s One World Trade Centre, to up the game for The Residences into another spectacular iconic landmark. “We are confident the unique concept of our project that is inspired by The W Hotel concept will ensure The Residences stands out from the existing pool of properties in the market,” Tropicana Corp executive director of project Daniel Teh says. Teh points out that the project’s location on one of the last remaining premium freehold parcels in KLCC will up the value and add credence to The Residences prestige as an iconic landmark in the city. Scheduled to complete in mid-2017,
“The hotel has full-height double-glazed windows. Both the exterior building envelope and interior partition walls are built to the highest acoustic and thermal performance specifications, as required by the hotel operators.
1 Chic and sleek architecture. 2 Tropicana Corp head of marketing and sales Ung Lay Ting. 3 Tropicana Corp executive director of project Daniel Teh.
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Teh is confident The Residences will be a frontrunner in the development of this fast growing segment of luxury and branded residences in the city centre of Kuala Lumpur. The Residences will be anchored by the very first W Kuala Lumpur Hotel in a stunning 55-storey tower, designed by Skidmore, Owings & Merrill that is working together with Veritas Architects Sdn Bhd in Kuala Lumpur. The internationally acclaimed and award-winning architect firm brings its expertise on tall buildings to this landmark project by Tropicana Corp. “Alongside its neighbour, the Petronas Twin Towers, the sleek
elegant tower of The Residences with its distinctive highly detailed dark aluminium and glass finishing, will form part of the future iconic skyline of Kuala Lumpur,” Teh remarks. When completed, The Residences will be the highest residential apartments in Kuala Lumpur, soaring higher than the soon-to-be-completed 48-storey St Regis Hotel and Residences at Sentral. This iconic development will bring to Kuala Lumpur, the daring, witty and stylised culture of the hip W brand which captures the vibe and spirit of New York as a leading centre for music, fashion and urban culture. First launched in New York as a boutique hotel, the W has transformed into a fashion and style leader in the hotel industry and has been especially well-received in Asia where it has transformed into a popular, high energy, future-forward lifestyle brand that syncs well
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with the frenzied speed and intense energy of Asian cities. The hotel has full-height doubleglazed windows. Both the exterior building envelope and interior partition walls are built to the highest acoustic and thermal performance specifications, as required by the hotel operators. Teh says The Residences also follows similarly high specifications, adding that it is rare for developers in Kuala Lumpur to provide residential developments with the high acoustic insulation, sound-proofed fullheight windows as in The Residences. “The high specifications of the curtain wall and resulting high thermal performance of the building envelope also means much better comfort levels within the apartments and lower air-conditoning bills. “While there are several green-rated lower-rise residential developments, The
Residences is one of the first super high-rise apartment towers in KL to enjoy the benefits of a very high level of green certification with its GreenRe Gold rating,” he explains.
Opulent lifestyle Teh says The Residences offers discerning
and well-travelled purchasers an opportunity to own a piece of luxury in this hot address of the KLCC. The project’s location on top of the internationally acclaimed W Kuala Lumpur gives the residences a unique fivestar branding and living standard. The residents will be in the company of other like-minded hip, funky and happening community who will be able to bask in the luxury of five-star lifestyle. The Residences that comprises 353 fully furnished service residences will occupy the 25th to 53rd floors of the 55-storey
4 Chill Out Deck. 5 Gourmet Loft. 6 Top view of Saltwater Sky Pool. 7 Forest Lounge.
tower block. The hip and upscale W Kuala Lumpur Hotel, a luxury hotel chain owned by Starwood Hotels & Resorts Worldwide, will have 150 rooms on the 8th to 23rd floors. The project will have a gross development value of RM800mil. Teh says the uniquely designed residences offer four types of swanky layouts with built-up area ranging from 710 sq ft to 2,973 sq ft. “All the units have cutting-edge designs, yet portray the warmth of local lifestyle and influences that will place them in a league of their own and make them the prized dwellings for our residents,” he says. “The residences are unique, first of a kind funky luxury for our residents in line with our aim to redefine luxury and create another level of luxury living fit for our wellheeled buyers. “Owning a residence in this super prime location is a reflection of luxury and prestige. The residents will also benefit from the integrated five-star hotel services,” he says. Besides the unique facades and architecture design, the softscapes and amenities are just as opulent – a rooftop facility floor that offers the perfect place to chill out with unobstructed view of Kuala Lumpur’s sprawling and colourful city vista, saltwater infinity pool, a forest-themed lounge, multi-purpose area on the roof known as the Gourmet Loft and a first-ofits-kind aqua gym. The Residences also come with concierge service where residents will be able to enjoy butler service that will arrange services that ranges from transport to laundry and dry cleaning. Residents will also be able to make bookings for flights, restaurants, spa and salon treatments. Jet-setters and those who are constantly on the move will be happy to have the convenience of optional housekeeping services and an innovative home-care programme, which includes
a home monitoring system, personalised renovations and regular cleanliness inspection, at their disposal. The Residences will be managed by Tropicana Corp, a pioneer in resort-style home concepts with a strong track record in high-end residential and commercial developments. Teh says being at the forefront of the property industry, Tropicana Corp continues to lead the way in the lifestyle and sustainable development segment. “The Residences has been categorised as a green building with resource and energyefficient features in daily operations like powering lifts and other utilities,” he adds. Teh says The Residences is expected to be a serious contender for expatriates wanting to make a wise investment in Malaysia given the increasing appreciation of capital in this sought-after address. Tropicana Corp head of marketing and sales Ung Lay Ting says the project was launched on March 21 across six countries – Malaysia, Singapore, Taiwan, China (ChengDu and Shanghai), Indonesia and Hong Kong – at private bars for specially invited guests. Most of the buyers comprise young professionals and business owners from Hong Kong and Singapore. The main launch of The Residences was held at the chic Marini’s on 57, Malaysia’s highest rooftop bar that is located close to the Petronas Twin Towers that offers panoramic views of the Kuala Lumpur city skyline. For its unique 3D presentation at the launch, The Malaysia Book of Records awarded Tropicana Corp for the Biggest Outdoor HD Projection Mapping Screen in Malaysia. “The Residences prides itself as the only swanky and arty luxury property in Kuala Lumpur’s Golden Triangle ideal for jet-setters or those constantly on the move. It will be in a class of its own and the first of its kind to provide contemporary luxury living, targeting the rebellious, antipodean buyers. “The Residences' overall intention is to be the swankiest place in town. The target audience are the trendsetters – people who are interested in the latest, newest, hippest and coolest. It is a celebration of stylish sophistication, of upscale metropolitan living. To receive more info or for a private tour, we warmly invite you to register with us at our website www. tropicanatheresidences.com,” Ung says. Ung says Tropicana Corp has another similar development in Penang, Tropicana 218 Macalister that will feature the first Courtyard by Marriott in Malaysia. “We are definitely looking into exploring other markets to bring the Tropicana experience to more people around the country,” she adds.
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NEWS
Property fair set to draw IN the crowd The popular StarProperty.my Fair makes its appearance once more. This time it heads down south to Johor Bahru City Square.
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isitors to the fair can expect to be wowed by an array of properties from reputable developers such as IJM Land, Tropicana Corp Bhd, Matrix Concepts Holdings Bhd, Mah Sing Group, IOI Properties Group Berhad, I&P Group Sdn Bhd, Macrolink International Land (M) Sdn Bhd, Belleview Group, UDA Land (South) Sdn Bhd, Andaman Property Management Sdn Bhd, R&F Development Sdn Bhd, Country Garden Danga Bay Sdn Bhd and more. First-time homebuyers who are looking for their dream home, or even those who are searching for the perfect property to invest in, should make their way to the fair. From compact units in high-rises to spacious landed homes (terraces, semi-Ds and bungalows), there will be something for everyone. In addition to the dazzling displays, there will be talks held to further pique the interest of visitors . On Saturday, Khalil Adis will be presenting his talk, "First-time and affordable homes for Johoreans" while
Master Sandy Paw will be presenting her talk in Mandarin titled, "Feng shui and you: How to select a house with good feng shui". On Sunday, the two other speakers are Dr Daniele Gambero with his talk titled "How to win the property investment game: The golden rules to become a smart investor" as well as Ryan Khoo with his talk "Why manufacturing is driving a boom for the industrial property in Iskandar Malaysia". Visitors will also be able to participate in a quick survey at the StarProperty.my booth for a chance to win a Samsung Galaxy Tab 3 Lite or a one-year subscription of The Star e-paper worth RM350. There will be a lucky draw for those who purchase a property at the fair as well, and they stand a chance to win a Senheng voucher worth RM5,888, RM2,888 or RM888. The fair is from Aug 21 to Aug 23, 10am to 10pm, and entrance is free. For more information, visit fair.starproperty.my
NEWS 1 New and existing customers of Liberty Tower and Parisien Tower participated in the event. 2 Strong interest in i-City’s projects.
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Talks during the StarProperty.my Fair Saturday (Aug 22,2015)
Khalil Adis
Master Sandy Paw
Session Speaker
Topic
2.00pm - Khalil Adis 3.00pm 4.00pm - Master Sandy Paw 5.00pm (Mandarin version)
First-time and affordable homes for Johoreans Feng shui and you: How to select a house with good feng shui
Sunday (Aug 23, 2015)
Dr Daniele Gambero
Ryan Khoo
Session Speaker
Topic
2.00pm - Dr Daniele Gambero 3.00pm
How to win the property investment game: The golden rules to become a smart investor
4.00pm - Ryan Khoo 5.00pm
Why manufacturing is driving a boom for industrial property in Iskandar Malaysia
i-City treats buyers i-City hosted a successful event where buyers of Liberty Tower and Parisien Tower were treated to food, drinks, prizes and more.
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he Buyer’s Appreciation event received an overwhelming response on June 28 at i-Gallery. Many existing and new customers of Liberty Tower and Parisien Tower participated in the event, which was sponsored by i-City and PropertyPlus. Since Parisien Tower’s launch in March 2015, it achieved 65% sales despite the current market’s sentiments. Those who attended the event were treated to a sumptuous array of food and drinks, as well as a presentation of the tower’s
French-styled showroom units and its attractive sales package. Existing buyers who referred new buyers were also accorded with a special reward. There was also a Buyer’s Appreciation Day lucky draw, where two LED TV sets and two Blu-ray players were given away. Parisien Tower @ i-City is the second themed freehold residential tower in i-City under the Icona Series following Liberty Tower. Parisien Tower is a Paris-themed residential tower which aims to bring a touch of Paris to i-City. Each unit is fully furnished and
tastefully decorated with old school and modern French architecture to give residents an authentic Parisian feel. Parisien Tower is set to be completed in 2019, and it is also near i-City LRT Line 3. Located adjacent to Parisien Tower is the 1.5 million sq ft Central Plaza Mall, which is set to open in 2017. The mall is also conveniently connected to Parisien Tower via a dedicated pedestrian walkway. i-City is set to become a self-sustaining ultrapolis that provides residents with a true taste of metropolitan city life.
STARPROPERTY.MY SUNDAY 19 JULY 2015
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StarProperty.my assists first-time homebuyers
The Own It programme has successfully helped several first-time homebuyers towards owning their first property.
Aug 1, Saturday 2:00pm – Important must-know basics of 3:00pm property investment by Khalil Adis
a home ownership transformation programme
By SHERRY KOH sherrykoh@thestar.com.my
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Khalil believes that property is a good hedge against inflation. He will share the basics on buying a property such as location, financial calculation and economic drivers to ensure that you get the most out of your investment. Also, he will share tips on how to choose a property for your own stay versus for investment.
oday, the primary force that drives so many people to bankruptcy is their desire to live beyond their means. Many default on their car, housing and personal loans simply because they want to live a lavish lifestyle. Even without being fully established in their careers, they choose to buy an expensive car when a simple entry-level car will suffice. It is the same kind of thinking that makes them go for high-end property instead of affordable ones. Those who are just starting out should switch on their “trading up” mentality. They should think about purchasing lower-priced properties first. After all, property is a good hedge against inflation. When the lower-priced property increases in value, capital appreciation can be used to slowly trade up to better properties.
Home ownership transformation programme
That is one of the key reasons StarProperty.my, together with Propwall.my, initiated Own It. It is a home ownership transformation programme that is designed to assist first-time homebuyers towards owning a property. Star Media Group general manager of the property business unit Timothy Hor said, “The core purpose of Own It is to help young Malaysians, Gen Ys and the millennials, better understand the home buying process and start planning their journey towards owning their first home. “For many of our younger generation, the lament about not being able to afford their own homes has become louder in recent years because of the escalating prices of property. And many have accepted the fact that they will be a "generation of renters". “We want to help change that mindset and provide them with a platform to better understand and learn about property ownership, and hopefully inspire them to start planning to buy their first home.” The ongoing Own It programme consists of a series of educational forums and sharing of pertinent information on property investment. The programme kick-started in May this year, when StarProperty.my managed to help several first-time homebuyers purchase their first property. Own It is StarProperty.my’s CSR (Corporate Social Responsibility) initiative, and the company is consistently working with developers to explore attractive starter home offerings, while providing financial and investment guidance for eligible first-time homebuyers.
3:30pm – Design: Small is the new big 4:30pm by Nick & Alex Designing a home within limited space is a huge challenge, as we all know that homes are becoming smaller due to affordability and easier maintenance for today's young families.
Star Media Group general manager of the property business unit Timothy Hor said, "The core purpose of Own It is to help young Malaysians better understand the home buying process and start planning their journey towards owning their first home.”
Register for Own It Forum
To keep the momentum going, StarProperty.my will be starting a series of educational talks and the first one is a two-parter. It will be held on Aug 1 and Aug 8 at Tropicana Metropark’s Property Gallery, 2pm to 4.30pm. There will be three speakers – Khalil Adis (founder of Khalil Adis Consultancy Pte Ltd), Nick and Alex (directors of an architect and interior design firm Nu Infinity) and Alexander Woo (VP Financial Education at IQI Holdings). There will be a FlexibleLove chair worth RM1,385 to be given away each day. There will also be a special offer for developments in Tropicana Metropark. Ask the sales personnel about it. Admission to the forum is free and light refreshments will be provided. Register at starproperty.my/ownitforum now as seats are limited. Brought to you by
Supported by A FlexibleLove chair worth RM1,385 to be given away for each day.
Four Points by Sheraton Puchong 6 - 8 March 2015 11am - 10pm
The new challenge in designing these homes is particularly focused on making space look bigger than they really are. Nu Infinity will share valuable design insights such as using smart mechanism to make spaces flexible and maximise space usage in several ways. Most importantly, these enhancements could increase the value of rental yield and price of the property itself.
Aug 8, Saturday 2:00pm – What types of properties are hot 3:00pm right now and what’s right for you? by Khalil Adis From dual key units to SOVOs, these new property types have become the norm across Malaysia. However, not all types of properties are suited for each investor. Khalil will share more about the types of investors that certain properties are suited for and then narrow down to types that suit their profile.
3:30pm – How to spot a good property deal 4:30pm and are you ready to purchase? by Alexander Woo Everyone needs a place to live and one could either buy or rent. Either way, there’s a need to choose an appropriate location. Other factors to consider include your financial strength, intended length of stay, future plans, and maturity stage of your intended location. There is no hard and fast rule, but it is important to learn more about these factors and make the choice that best suits you!
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SPECIAL FOCUS
KUALA LUMPUR’S BUSTLING SKYLINE AND VISTAS
thrills and Spills from the towering skyscrapers T
HE proliferation of high-rise buildings in Kuala Lumpur is changing the capital city's skyline and vistas, and the pace new buildings are cropping up can be fascinating and bewildering at the same time. On one hand, it may be a sign that our capital city remains robust and vibrant and is constantly renewing itself with new projects that will inject excitement into the property market with new buildings, designs and facades to look out for. They will cater to the growing number of city dwellers and the working population who are taking to city living, career and recreation with gusto. Improvement in the city’s infrastructure, including the Kuala Lumpur monorail, light rail transit and mass rapid transit infrastructure that are underway, will further spruce up the connectivity and ease of travel around the city and to the suburbs. For those who work in Kuala Lumpur, having a residence in the city makes sense as it means convenience and saving time and money to and from work. The vibrancy of the city’s gourmet scene that whips up a whole spectrum of local and international cuisines, al fresco hangouts, and a lively shopping scene with renowned local and international retail brands, are certainly contributing to Kuala Lumpur becoming a happening chillout destination and choiced residential address once again. On the other hand, the new supply of high-rise buildings is fuelling apprehension whether the market has the capacity to absorb the additional residential and commercial property space that will come onstream when the projects are completed, failing which the market will become saturated. A property overhang will happen when the new property supply floods the market when demand fails to keep pace with the supply. Property prices and rental rates will drop as a consequence and the market will shift into lower gear. There is also concern whether the many high-rise buildings under construction will cause overcrowding in the city’s skyline and some quarters are calling for some form of control to ensure a more palatable skyline in Kuala Lumpur before it goes down the path of overcrowded cities. The new high-rise buildings that are being planned around the capital city and around the fringes of the city will be gigantic towers and skyscrapers of more than 60 storeys that will dwarf over the other existing buildings. These towering buildings with their unusual facades and aesthetic designs are expected to be sights to behold as they dazzle in the day and at night. Visitors can feast their eyes with swathes of new and old buildings of different shapes, heights, facades and functionalitties that intersperse with the other lower buildings, adding a spectrum of colours and shades
By
ANGIE NG angie@ thestar.com.my
Angie Ng is the content editor of StarProperty.my.
to the city’s vistas. Residential apartments, office buildings, shopping complexes and other commercial buildings are the mainstays of the city. There are quite a number of new projects, either residential, commercial or mixed developments, that are under construction. Malaysian REIT Managers Association chairman Datuk Stewart Labrooy says Kuala Lumpur’s skyline is unique with the city being developed in stages, donning architectural styles from the 1960s through to the new green buildings of today. “Some of these towers are getting much taller, challenging the skyline with towers of 50 floors and higher. The architectural styles are also very interesting and reflect the desires of the developers to try new styles in architecture,” he remarks.
Property consultancy VPC Alliance (KL) Sdn Bhd managing director James Wong says Kuala Lumpur’s changing skyline is a boon for the property market and the capital city. Skyscrapers with integrated developments of living, shopping and entertainment make Kuala Lumpur a more liveable city, promoting economic activities both in the day and night time, he observes. “Notable skyscrapers in Kuala Lumpur like KL Tower and Petronas Twin Towers are iconic landmarks which add to the new identity of Kuala Lumpur, besides being tourist attractions,” Wong says. Savills Malaysia deputy managing director Paul Khong says Kuala Lumpur has a very interesting skyline currently and the main focus is still in the KLCC vicinity with
KL Sentral following closely. “We are looking at more skyscrapers appearing in the next few years. The new focal point in the city centre will eventually be extended and shared between KLCC and the Tun Razak Exchange (TRX) vicinity. “The skyline in KL’s city centre will continue to grow despite the decentralisation of commercial areas which has already been effected since early 2000. Clear examples of decentralised locations include KL Sentral, Mid Valley, Damansara City and Bangsar South, all lying at the fringes of the city,” Khong says. Hall Chadwick Asia chairman Kumar Tharmalingam says growth of the city and rising land values are responsible for the higher density as developers find that the
STARPROPERTY.MY SUNDAY 19 JULY 2015
only way to mitigate high land costs is to have high density. “This is a similar situation in many other cities around the world. In Kuala Lumpur today, density is up to 11 times the land area and hence the new 60 and 118 storey towers under construction,” he observes. Kumar also feels the changing skyline is a boon as people live closer to services and there is cohesive business and living environment. “Mont Kiara is a good example. Highly dense but a community grew out of it.”
Need for a balancing act While he does not think Kuala Lumpur’s skyline is overcrowded when compared to other capital cities, Labrooy cautions the need to build rationally, emphasising that new supply should match the city’s capacity to absorb the increased capacity. “The absorption factor needs addressing. Planners need to take a leaf from Singapore where there is a concerted effort by the city planners to match supply and demand,” Labrooy says. Labrooy points out a pricing imbalance in the housing market that needs to be addressed, stressing that more affordable units are needed to meet demand. “The issue today is one of affordability as many of these new developments rely on the rich investor and not the end user
07SPECIAL FOCUS to make a sale happen. There is still a big demand from end users for homes priced below RM500,000,” Labrooy stresses. He says a worrying trend is that prices of apartments are rising but rents are falling, and this will squeeze yields and the ability of investors to service their loans, unless if they have bought their property in cash. “There will be stress on investors who bought the expensive high-end units and now have to service their loans as tenants remain in short supply,” Labrooy adds. Wong concurs: “There is a mismatch of too many high-end residential units compared to affordable housing. This is primarily due to land price issue when land prices are too high and not economical for developers to build affordable housing in the city. The solution is for the Government to monetise Government land reserves in KL City and release such land to joint venture with developers to build affordable housing. Another solution is for the local authority, the KL City Hall, to consider increasing development density or plot ratio, so that developers can build more affordable and smaller units to increase home ownership.” Citing market observations, he says there are more than 40 high-rise residential developments under construction in Kuala Lumpur. The notable projects in the Kuala Lumpur City Centre (KLCC) area are Dorsett Residences, The Robertson, Tribeca, The Mews, Trillion KL, 23 Eight, The Ruma Residences, Four Seasons Place Residences, Expressionz Professional Suites, Tropicana's The Residences, Kempenski Hotel and Residences, Vortex and Manhattan Residen 61. Labrooy says research by Savills Malaysia shows total existing supply of residential properties in Greater KL to be 1.83 million units, with landed property stock making up 43.5% of total stock, while non-landed represent 35.3%, and the remainder are low-cost housing. “There will be incoming supply of 215,578 new housing units which will translate into at least 50,000 new units a year in 2015, 2016 and 2017. Checks with property websites show quite a number of residential towers coming up. They are The Dax @Kiara East comprising 274 condominiums to be completed by 2016, The NOVO @ Ampang (421 serviced apartments to be ready this year), The Astoria @ Ampang (1,216 serviced apartments by 2019), The Mark @ Cheras (467 serviced apartments by 2016), Phase 1 of 9 Seputeh (824 serviced apartments, 287 SoHos and 49 commercial lots by 2017), and KL Eco City’s Vogue Suites 1 (708 condominiums by 2017 that will be followed by another two condo towers and a serviced apartment tower). “St Mary Residences will have three towers of 657 residential units, Crown Residences at Damansara City (370 residential suites by 2015), Centrina Service Apartments @ Sungei Besi (359 serviced apartments and 526 SoHos by 2016), 100 Residency @ Setapak (100 condos by 2016), Veo @ Desa Melawati KL (350 condos by 2016), The Manhattan @ Jalan Raja Chulan (129 residences by 2016), The Court Service Apartments @ Sungei Besi (365 service apartments by 2016), and Sentral Residences (two 55-storey towers of 752 residences by 2016).” Khong believes market forces will determine the future supply of offices and residential units in the city. He does not think the incoming housing supply will cause a glut, noting that the property delivery system in the residential sector is still largely based on the
Sell Then Build (STB) system and not Build Then Sell. “This STB system will automatically govern supply and when demand falls, developers will revise their supply chain based on market forces. Developers will not want to dent their profit lines by reading the market erroneously,” Khong observes. He says a lot of the unsold units in the market are due to poor market research offering wrong products in poor locations. Khong says projects that will be closely watched include the residential strata project in TRX by LendLease called the Lifestyle Quarter. TRX is a 70-acre integrated development with a commercial mall, residential towers, hotel and office blocks offering space of about 21 million sq ft. Lendlease will lead the TRX development of the Lifestyle Quarter on the 17-acre commercial mall site, Khong says. “We also see some new offerings, such as Wing Tai’s Le Nouvel, W Kuala Lumpur Hotel/The Residences by Tropicana and Four Seasons Place by Venus Asset, which are all super prime products lying adjacent to KLCC along Jalan Ampang,” he adds. Khong says branded residences in the city centre or the fringe areas such as Banyan Tree, Four Seasons, Pavilion Suites KL and St Regis currently command the highest price tags in the capital city. They are moving towards the RM3,000 per sq ft price tag while the normal high-end condos in the city range from RM1,350 per sq ft. On the high-end strata residential segment, Khong says St Mary Residences, Ascott/Kirana Apartments, Marc Residences and Binjai on the Park are getting popular within the city areas. "In the KLCC area, expatriates working around the locality are the natural tenants, while areas like Mont’Kiara and Embassy Row in Ampang also have a fair share of expatriate tenants although the number is dwindling due to a slowdown in the oil and gas sector," he adds.
New centre of gravity A silver lining that will promote take-up rate is that city living is making a comeback in Kuala Lumpur and more people are opting to reside in the city. Khong says convenience, proximity to the work place and other amenities, and the opportunity to enjoy a new lifestyle are among the reasons for more people choosing Kuala Lumpur as their address. Labrooy concurs, saying the migration of new workforce living and working in the city is bringing a lot of life to the city centre, keeping it busy after working hours. “Gen Y and Millennials (Gen Z) prefer to live and work in the city, and this is driving decisions by companies to move back to the city. New city developments with brand new buildings and amenities to cater to the younger working group are finding favour today with corporations. “We haven’t appreciated how the Millennials will change the real estate in this country with their very different take on life. They are very much into city living with its amenities and may not even own a car, preferring to use taxis and public transport,” Labrooy notes. Kumar says Kuala Lumpur has always been a magnet for young graduates, irrespective of where they were born or went to school. “The belief (not unfounded) is that options for job promotions and being head
VPC Alliance (KL) Sdn Bhd managing director James Wong.
Malaysian REIT Managers Association chairman Datuk Stewart Labrooy.
Savills Malaysia deputy managing director Paul Khong.
Hall Chadwick Asia chairman Kumar Tharmalingam.
“Notable skyscrapers in Kuala Lumpur like KL Tower and Petronas Twin Towers are iconic landmarks which add to the new identity of Kuala Lumpur, besides being tourist attractions. — James Wong
hunted are always positive in the larger cities,” he says. In the office space sector, Wong cites Napic’s Property Market Report 2014 that estimated another 25 office buildings to be completed in Kuala Lumpur by 2018. They include IB Tower, Jalan Binjai with net lettable area of 394,000 sq ft, Naza Tower @ Platinum Park (535,000 sq ft), Damansara City Pusat Bandar Damansara (756,000 sq ft), Q Sentral @ KL Sentral (1.05 million sq ft), Summer Suites/Menara Solaris (800,000 sq ft), Ken TTDI @ Taman Tun Dr Ismail (330,000 sq ft), Public Mutual Tower, Jalan Raja Chulan (215,000 sq ft), JKG Tower, Jalan Raja Laut (510,000 sq ft), KL Gateway, Bangsar South (730,000 sq ft) and The Crest, Jalan Sultan Ismail (259,400 sq ft). Labrooy says the industry view on the office market is that there will be a sharp rise in vacancy and a softening in rents and pricing of assets, adding that for every 1% drop in occupancy, it will involve some 1,000,000 sq ft in vacancy. “I believe the office market is headed for an oversupply situation. The current absorption of office space in Kuala Lumpur is currently mismatched to the supply that is coming onstream. These imbalances will take many years to even out. “At a time we are constructing another 7 million sq ft of space for rent, it begs the question as to where these new customers will come from.” He says the rush to build a raft of new buildings in the city and the suburbs will contribute to Kuala Lumpur and Greater KL having a very sizable office stock, surpassing 100 million sq ft by the end of 2015. This put Kuala Lumpur way ahead of its neighbours, Singapore with some 80 million sq ft of office space, Bangkok around 84 million sq ft, and Jakarta’s nearly 80 million sq ft. This year, some 1 million sq ft of new office space has been completed with another 5.9 million sq ft to go in Kuala Lumpur and the Greater KL region. Of that supply, 35% will be in Kuala Lumpur’s city areas and the balance 65% will be in Kuala Lumpur’s suburban areas, which shows a shift of building activities to the suburbs. Khong says Greater KL will see another 7.2 million sq ft office space in 2015 and 6.7 million sq ft in 2016. “Occupancy rates are still trading steadily at about 80% to 85% averagely and with more new space coming through in the next few years, vacancy rates are expected to be on the rise again,” Khong adds. He says among the skyscrapers appearing in the next few years include KL 118, also known as Menara Wawasan in Jalan Maharajalela, Signature Tower in TRX, possibly one more 100-storey tower in Naza’s Metropolis @ Jalan Duta, the 65-storey Four Seasons Place & Hotel in KLCC, and 83-storey Oxley Tower near the Petronas Twin Towers. Khong observes that although the future supply of office space is quite alarming, developers, despite having received the approval for their projects in the last few years, are cautious and will only build if they have locked in any anchor tenant who has committed to taking up a big percentage of the building upfront. “Market forces will determine the supply of high-rise developments within the city limits. In the current market conditions, we are already seeing some projects being deferred due to poor demand and speculative construction is not rampant,” Khong concludes.
STARPROPERTY.MY SUNDAY 19 JULY 2015
08
SPECIAL FOCUS
A Closer Look At The SPARKLING City
Amenities and facilities that offer the best of food, drink, art, culture and travel in Kuala Lumpur.
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HAT better way to understand the diverse culture and lifestyle that we have in Malaysia than perusing around a city that has mostly everything. From authentic food to heritage development, Kuala Lumpur (KL), the capital state of Malaysia, offers a great mixture of cuisine, culture, activities as well as nature. Despite the hot and humid weather during the day, travelling in the city is very convenient with the availability of public transportation and extensive road network. The recently completed pedestrian walkway that links the KLCC area to the Bukit Bintang area also offers a better and safer pathway for pedestrians as it is not only covered, but also equipped with air conditioners. Furthermore, with the famous Hop-On Hop-Off bus service that covers more than 40 attractions with 23 stops around KL, one will find many interesting places to visit and fascinating things to do. This service is great not only for tourists, but also the locals looking to explore what Kuala Lumpur has to offer.
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Tourist attractions
Most of these tourist attractions can be easily reached via the KL Hop-On Hop-Off bus. Spending RM45 for a 24-hour adult pass, or RM79 for a 48-hour adult pass is definitely worth it as one will get to witness spectacular views and architectures while roaming on a double-decker bus. In addition to these, there are of course many other attractions that one should visit.
Kuala Lumpur City Gallery
This is the most anticipated stop for art enthusiasts. Situated opposite Dataran Merdeka (Independence Square), Kuala Lumpur City Gallery is just what travellers need to wind down and escape the hustle and bustle of the city. The gallery showcases a collection of photos, prints and miniatures to reveal the story and history of the city. The most astonishing highlight of Kuala Lumpur City Gallery is the city model that features the city’s past, present and future through advance multimedia projection mapping on the model, the first of its kind in South-East Asia.
NURUL ASMUI MD AZMI asmui@ 3
Chinatown
Based in Petaling Street, Chinatown is known by many as a bargain hunter’s paradise. This place is deeply immersed in oriental culture, heritage and history where one can find a diverse collection of things from Chinese herbs to fashion items. During the night, the main market area transforms into a vibrant night market with hundreds of stalls.
1 Passengers lining up to get on the KL HopOn Hop-Off bus. 2 The majestic view of the Petronas Twin Towers. 3 The entrance to Chinatown in Petaling Street. 4 The welcoming gate into Little India. 5 The Kasturi Walk next to the Central Market. 6 A boy standing near the water fountain in Perdana Botanical Garden.
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Central Market
Situated along Jalan Hang Kasturi, Central Market is only a few minutes away from Petaling Street. Also known as Pasar Seni, this market features an assortment of merchandise and services that includes souvenirs, handicrafts, authentic Malaysian batik prints and skilled sketch artists. Just adjacent to the Central Market is the Kasturi Walk. It is an open-air flea market with roofing, similar to Petaling Street. There are vendors selling local snacks, fruits and an array of goods, such as T-shirts and watches.
Merdeka Square
ocision.com
A tour in Kuala Lumpur is only complete with a visit to the Petronas Twin Towers where one can get to the Twin Towers Skybridge and witness a spectacular view from the highest twostorey bridge in the world. The twin 88-storey skyscrapers also offer all sorts of family entertainment, branded shopping outlets and eateries.
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KL Tower (Menara Kuala Lumpur), along with the Petronas Twin Towers, is Malaysia’s most popular landmark. Standing tall at 421 metres, KL Tower is visible from almost anywhere in Kuala Lumpur. One major attraction at KL Tower is the observation deck where visitors are able to enjoy a bird’s-eye view of the entire city. In addition to that, there is a revolving restaurant dubbed Atmosphere 360, which is a perfect venue for visitors to dine while enjoying a scenic view.
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Petronas Twin Towers
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KL Tower
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Little India
With a vast selection of Indian stores and restaurants in Brickfields, this is where visitors can experience true Malaysian Indian culture. While walking to the pulsating beats of Bollywood hits, one will discover all sorts of stuff from traditional-style sarees and gorgeous bangles to finger-licking chapatis.
Merdeka Square (also known as Independence Square) is a historical landmark in Kuala Lumpur. The venue was used to announce Malaysia’s Independence in 1957, and there's a 95-metre flagpole, one of the highest in the world. The wide field in the middle of the Independence Square is usually used to hold tourism-related and national celebrations.
Bukit Bintang
As one of the most lively areas in Kuala Lumpur, Bukit Bintang is packed with incomparable entertainment and boundless enjoyment. The area spans across three roads – Jalan Bukit Bintang, Jalan Imbi and Jalan Sultan Ismail. During the day, it is a shopping haven that boasts the highest concentration of shopping outlets in Kuala Lumpur. The famous Pavilion Mall-cum-the biggest shopping mall in Bukit Bintang is also a popular hotspot among the locals and tourists. Walking down the wide pedestrian walkway of Bintang Walk, one will step into an exciting rendezvous point with al fresco cafes and restaurants. For after-hour entertainment, Changkat Bukit Bintang, located behind Jalan Bukit Bintang, is a great trendy place for pub crawling. It is the avenue where most of Kuala Lumpur’s most popular bars and restaurants can be found.
Recreational parks
Amidst the concrete jungle of Kuala Lumpur, one can still find peace and comfort from recreational parks. Among the famous parks in Kuala Lumpur are KLCC Park, Taman Tasik Titiwangsa (Titiwangsa Lake) and Perdana Botanical Garden (formerly known as Taman Tasik Perdana or Lake Gardens). KLCC Park is a 50-acre urban sanctuary with around 1,900 trees and plants from 74 different species. The main highlight of this elaborately landscaped park is the dazzling dancing water fountains at the Lake Symphony. The park also has jogging tracks, a children’s playground and an elevated bridge. Titiwangsa Lake offers a perfect place for one to rest and relax in a vast open space. There are also entertainment services available for rent, such as bicycles and pedal boats, and horse wagon rides near the lake. Located in the Heritage Park of Kuala Lumpur, Perdana Botanical Garden has a history that dates back to the 1880s and still remains as a part of the green lung of the city. As a popular recreational spot, the garden houses beautiful botanical collections in a tropical rainforest ambiance.
Dining experience
Kuala Lumpur’s eateries range from budget street food to high-end luxury, and it reflects the diverse culture of Malay, Chinese, Indian, and even Western influences in Malaysia. Restaurants that offer luxury dining in Kuala Lumpur are plentiful. Some of the more luxurious restaurants are Lafite at Shangri-La Hotel, Tamarind Springs in Ampang, Cilantro on Jalan Tun Razak, Li Yen at The RitzCarlton and Bijan Restaurant on Jalan Ceylon. Budget eats are also aplenty around the city, such as Nasi Kandar Pelita on Jalan Telawi, Lot 10 Hutong Food Court in Lot 10 Shopping Centre, Warung Rindu off Jalan Pantai Dalam, Chat Masala Restaurant in Brickfields and Precious Old China in Central Market.
Kuala Lumpur is rapidly growing, but there is always room for improvement. Since some walking paths are not properly maintained and crossing the busy road in KL can be challenging, it would be great to have more comfortable pedestrian walkways like the one that connects Bukit Bintang to KLCC. It will also be beneficial to have arts studio for visitors who want to obtain a deeper understanding of Malaysia's culture and arts. Art studios will not only give personal space for artists to showcase their creativity, but also allow visitors to interact with artists.
STARPROPERTY.MY SUNDAY 19 JULY 2015
09SPECIAL FOCUS
Transforming the urban landscape
The city skyline, once filled with generic concrete buildings, looks all set to change with glittering towers that soar majestically above the rest.
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leaming skyscrapers tower over a vast concrete jungle landscape, glittering like stars at night. Kuala Lumpur is undoubtedly a magnet for international corporations and their professionals, along with tourists and expats. It's no surprise that foreign investors are attracted to the excellent infrastructure, rich cultural melting pot and a competitive currency exchange rate. Developers are thus jumping at the opportunity to provide luxurious residential properties for these corporate powerhouses and discerning expatriates, all housed within a prestigious address. There are many reasons as to what makes the address of KL an enviable and much sought-after one.
Designer lifestyles
The allure of a building's refined outer facade cannot be denied; the sleek streamlined curves and light bouncing off the glassy walls are enough to elicit love at first sight. Tropicana Corp Bhd's The Residences sets out to nurture that feeling by showcasing how glamorous nature can be. Inspired by the distinctiveness of haute couture and the bold colours of the heliconia plant, the result is an exterior and public space that makes an impressive statement of exclusivity. "With our moderately sized units priced reasonably, and a chic design appealing to the fashionconscious, this is a place to stand out and be seen," said Tropicana Corp Bhd's head of sales and marketing Ung Lay Ting. The KL skyline is further redefined by the futuristic vertical icon that is KSK Land's 8 Conlay, a trio of compellingly charismatic towers. "Our collaboration with worldrenowned partners to set a new benchmark for branded residences encompasses three main elements – liveable architecture, interior designs and personalised services," said KSK Land managing director Joanne Kua. A landmark luxurious development is thus born: imposing, contemporary and artfully blending aesthetic beauty with positive capital yield, fit for those who seek a higher quality lifestyle. Then there is Opus, which brings a whole new level to the love for cityliving. From the reception of the designer lobby to the sophisticated car park, every international need and want is carefully tailored to, as intercontinental migration is now more common. "Our interiors have adopted some of the more universal and up-to-date design concepts as we understand how important it is to meet the global standards of discerning residents," said Star Effort Sdn Bhd director Dave Hoong.
Excellent connectivity
Property gurus have only one mantra, and that is "Location". It's widely known that increasingly, more people are choosing to live in urban areas. People generally seek out properties located in high return and low
By
CAITLYN NG LI YUIN liyuin@ ocision.com
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1 Set against a sunset backdrop, The Residences enjoys breathtaking views of the KL twin towers because of its close proximity to the KLCC Park. 2 The world's second tallest tower, KL118, adds to the overall prestige of living at Opus. 3 The glittering towers of 8 Conlay soar like iconic beacons, and offers its residents a one-of-a-kind branded mixed development with luxurious fullyfurnished units. 4 Tropicana Corp head of marketing and sales Ung. 5 Star Effort Sdn Bhd director Hoong. 6 KSK Land managing director Kua.
“Happiness can be found when there is a perfect balance struck between living space, recreational and common activity areas, without compromising on space planning.
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risk areas, preferably within close proximity to amenities and public transportation. Experiencing the city's choicest retail outlets and main artery is made possible when living at 8 Conlay, which is strategically located in the heart of KL's Golden Triangle. There is Jalan Raja Chulan and Jalan Bukit Bintang for instant access, in addition to the convenience of public transportation. The close proximity of the Raja Chulan monorail station and the proposed MRT station at Jalan Conlay all come together to provide a peace of mind. Having the world's second tallest building as a neighbour and some of the best connectivity to transport systems is a privilege that not many can boast of. At Opus, residents are located in close proximity to the KL118 tower, which will have a MRT station within. There are even major roads nearby such as Jalan Syed Putra and Jalan Mahameru, and the monorail stops right at the doorstep, which further connects to both KLIA and KLIA2 via KL Sentral. Considerable ease of access is enjoyed at The Residences with it being sited along the intersection of Jalan Ampang and Jalan Yap Kuan Seng. There are three major highways that connect to/from the city centre, all of which are a short drive away from the development – Ampang-Kuala Lumpur Elevated Highway (AKLEH), Maju Expressway (MEX) and SMART Expressway. Residents will also still be able
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to walk to the KLCC LRT station and the Bukit Nanas monorail station.
Happiness and health By achieving the maximum potential of the
plot of land a development sits on, residents will not only be blessed with a myriad of excellent facilities, but be able to appreciate nature's magnificence at one's threshold. Happiness can be found when there is a perfect balance struck between living space, recreational and common activity areas, without compromising on space planning. At Opus, the carefully thought-out facilities area brings direct advantages to the residents, with a galaxy swimming pool, floating yoga deck and rooftop fully fitted kitchen for al fresco dining, to name a few. No detail is spared when it comes to giving the best experience. From the columns, beams and hardscapes, to colours, details and softscapes, it is all about a sustainable lifestyle.
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Views of the sparkling city is always a drawing factor, so The Residences has a maximised plot ratio that allows for a 360-degree view. Residents will be able to immerse themselves in some of the facilities available, namely the tranquil saltwater sky pool, forest lounge, misty walk, aquarobics zone and gourmet loft. A new inspiration emerges from this development, where fashion is merged with artistic landscaping, creating a verdant retreat at the very top of the building. A soothing green haven that allows residents the opportunity to escape and unwind is always a welcoming respite. 8 Conlay's 44th floor features a unique elevated jogging track encircling a tropical forest garden, a perfect replica of Malaysia's hilly and lush terrain that residents can enjoy within the comforts of home. Partnering with Kempinski Hotels, Europe's oldest hotel management company, 8 Conlay is set to bring impeccable personalised services to its residents, allowing them to indulge in true five-star luxury.
STARPROPERTY.MY SUNDAY 19 JULY 2015
10
SPECIAL FOCUS
Insider’s outlook
KL from the point of view of the residents, workers and tourists. By
Mangalesri Chandrasekaran mangalesri @ocision.com
Zulkarnain Jarid For me, Kuala Lumpur CBD was the most suitable place to start up my business. Offering a unique business, I depend mainly on the strategic location, as well as the high number of tourists visiting this area. Yet it is not a good time for business now due to our country's weakening economy and the implementation of GST. Other than that, I don't regret staying here. There are several concerns regarding traffic congestion and lack of effective public transportation in KL, but that doesn't directly affect my business.
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Audrey Chan, Gulce Kaya & Irem Aydemir Kuala Lumpur has been quite welcoming and we enjoy the environment the most. Even though the weather is quite hot, it is a nice place to visit. We travelled from Thailand by train and the feeling we got when reaching KL was something unexplainable. We felt safe. There are food and ample shopping areas to explore. Love the diverse cultures here and with the help of our friend from KL, Chan, we are expecting to experience Malaysia more.
Keeran Chandrasekaran & Sarala Manokaran Working in Kuala Lumpur has been quite convenient for us, since everything we need is within a short distance. What can be improved here is the traffic congestion, as the public transportation offered so far can't seem to curb this problem. It would be quite a hassle to use public transportation, especially KTM, since it is overcrowded and unreliable most of the time. Besides that, everything here is pricey and the cost of living is high compared to other states.
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Simane Mohamed
Having lived in Malaysia for nine years, Kuala Lumpur CBD turned out to be the best area for me as an expat to have an equal balance of work and social lifestyle. Public transport is easily accessible in the CBD compared to other places. Moreover, taxi booking apps have made it easy, too. My office is five minutes away from my home which makes it very convenient for me. I end up spending less in transportation. However, living in the CBD has some downsides as well. Food is more expensive and the traffic jam can be a huge headache at times.
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Abbas Kamal & Shantini Samugam
Kuala Lumpur provides the best ambience to work. There are ample job opportunities available here, especially for youngsters like us and the wages in KL are better compared to the outskirts. As for entertainment and emergencies, it is not necessary to travel far. Even though working in the city centre is quite awesome, the cost of living is a matter which needs more attention. The cost for parking and food is soaring, and it became worse after the implementation of GST. What we really need in KL is more affordable parking and food with reasonable prices.
Zunita Haji Morat & Muhammad Masreza Shaari Living in Kuala Lumpur is one of the best decisions I made in my life. I moved to KL nine years ago to pursue my studies and now I'm married, and settled here. The best feature about KL is the opportunities it offers, which attract a high number of people from other states. Surviving in KL is quite challenging, since everything is expensive here. But it is also a place worth staying as educational institutes, malls, parks, hospitals and public transportation are all a short distance away.
STARPROPERTY.MY SUNDAY 19 JULY 2015
11DESIGN
Reigning over uneven terrain
A unique three-storey bungalow sits at 6 Jalan Girdle, and its design was masterfully constructed to work with nature.
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By SHERRY KOH sherrykoh@thestar.com.my
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4 1 The shape and form of the building adjust and conform to the natural contours of the land, which descends between 8m and 10m from the road’s level. 2 The material palette of the house leans toward natural products like marble and timber. 3 One of the private bedrooms. There are 6 bedrooms in total.
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4 Full-height opening blurs the boundary between interior and exterior; surrounding inhabitants with green and serene views. 5 The elegance of the dining area and dry kitchen is created through a clean-cut linear 'Manhattan' style counter top and a generous ceiling height of approximately 5m (16ft). 6 Minimum glass or screen cladding is used for the facade facing the road to protect users’ privacy. 7 The lowest floor has a large covered terrace, which opens up a pool deck, infinity pool and natural surroundings.
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- Photo by First Photography
xclusive addresses are prized assets and the Boustead Group has one that is located in an affluent part of Kuala Lumpur. The property is simply known as 6 Jalan Girdle, but there’s certainly nothing simple or typical about how the uneven landscape is now host to a structure that unites creativity with practicality. Choo Gim Wah (CGW) Architect was tasked to redevelop this piece of land to feature a bungalow that reflects the needs of a contemporary household. The land descends between 8m (26.24ft) and 10m (32.80ft) from the road’s level. Immediately, this posed as a challenge, and as in the line that is often uttered by Barney Stinson (from the TV series How I Met Your Mother), it was a “challenge accepted” by the architect. The design process began with the idea of having a building that engages with its existing terrain, slope and level. CGW saw this as the perfect platform to showcase their expertise in spatial programming. Choo Gim Wah explains, “6 Jalan Girdle is a structure that emerges from the land. Its intention is not to compete with the land, but to complement it. With that in mind, the main challenge during the design stages naturally became the shape and slope of the site. The goal was to harmoniously integrate this three-storey building into the terrain, complementing its beautiful and natural surroundings.” Thus, the bungalow was built to sit snugly within the “basin” of the terrain. The ground floor is the “public” space, with living and dining areas for all to congregate, while “private” spaces such as the family room and most bedrooms are located on the level beneath it. The lowest floor features the infinity pool, pool deck, terrace and two very private guest rooms. The large covered terrace opens up to the pool deck and infinity pool, with no barriers separating these areas. CGW Architect’s decorative scheme embraces tropical greens, while composing an arrangement that blurs the boundary between interior and exterior. It is truly a harmonious setting that is both inspiring and restful.
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6 Jalan Girdle
• Three-storey bungalow – ground floor, lower ground floor and second lower ground floor • Gross floor area (GFA): 8,000 sq ft • 6 bedrooms, 1 maid's room and 1 guardhouse.
STARPROPERTY.MY SUNDAY 19 JULY 2015
12
INSIGHT
SOHOS AND serviced apartments – COMMERCIAL OR residential TITLES?
Are SOHOs and serviced apartments under commercial or residential titles? Can residential properties be used for commercial purposes? Christopher Chan finds out.
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OHOs and serviced apartments built on commercial title – what are they actually? Under the National Land Code 1965 (Act 56), land is categorised into one of the following uses: "Agriculture", "Building", or "Industrial". Under the "Building" category, there is an express condition in the title (known as "Syarat Nyata" in Bahasa Malaysia) that states whether the land is to be used for residential or commercial use. As an example, you can see the title below of a land in the District of Gombak with a "Building" category for residential use. This is also a Malay Reserve Land.
that "Tanah ini hendaklah digunakan untuk bangunan perdagangan bagi tujuan kedai pejabat dan pangsapuri servis sahaja". For Marc Residence, it is stated as "Tanah ini hendaklah digunakan untuk bangunan perdagangan bertingkat bagi tujuan pangsapuri servis sahaja". The individual strata titles for units of both of these developments have yet to be issued and that is why we are looking at the master titles at the moment. Therefore, we refer to these developments as being on a commercial title as it is stated as "untuk bangunan perdagangan". Therefore, on the same reasoning, the quit rent, assessment and utilities are usually charged based on commercial rate by the authorities. For a stratified development, the master title (encompassing one piece of large title for the whole development to be developed by the developer) is deemed as the "Parent title" while the individual strata title (issued to the individual purchasers) can be deemed as the "children title". Just like a human being where we inherit the DNA structure from our parents, the conditions in the master title would naturally be the same conditions as stated in the individual strata titles. The Housing Development (Control and Licensing Act) Let"s have a look at the express conditions Act 1966 (Act 118) and Regulations was in the master title for Scott Garden"s SOHOs amended in 2007 to widen the definition in Old Klang Road and Marc Residence of "housing accommodation" to include (Serviced Apartments) in KLCC. SOHOs and other similar developments. The new definition is as follows: "Housing Accommodation" is defined under Part 1 sub-section 3 of Act 118 on "Interpretation" to include any building, tenement or messuage which is wholly or principally constructed, Master title with ‘Syarat Nyata’ for Marc Residence (Serviced adapted or intended for human Apartments) in KLCC. inhabitation or partly for human inhabitation and partly for business premises and such type of accommodation as may be prescribed by the Minister from time to time to be a housing accommodation pursuant to Master title with ‘Syarat Nyata’ for Scott Garden’s SOHOS in section 3A. Old Klang Road. Under the above definition, SOHOs and the likes, would fall under the definition of a housing The express condition in the master accommodation and therefore they are title for Scott Garden"s SOHOs states subject to Act 118.
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Christopher Chan christopherchan @hartamas.com
Christopher Chan is a registered estate agent and an associate director with Hartamas Real Estate (Malaysia) Sdn Bhd.
Can residential properties be used for commercial purposes?
“Just like a human being where we inherit the DNA structure from our parents, the conditions in the master title would naturally be the same conditions as stated in the individual strata titles.
It is interesting to note that the Petaling Jaya City Council (MBPJ) has, for some time now, allowed residential homes to be turned into commercial use as provided for in the Petaling Jaya Local Plans 1 & 2. I paid a visit to MBPJ on June 30 to seek clarification on this matter. Interestingly, my findings are as follows: The MBPJ allows certain residential areas to be turned into "limited commercial use" as provided for in their local plans. This is allowed for certain areas in Petaling Jaya such as Jalan SS2/24 (partial), Jalan Universiti (partial), Jalan Utara (partial), Jalan Kemajuan, Jalan Gasing and Jalan Penchala (partial), among others. Limited commercial use means that the council allows for certain types of commercial activities such as art galleries, showrooms (excluding cars), agencies (including tourism, advertising and real estate agencies) and Care Homes for the elderly, among others. One may obtain a booklet from the council titled, "Garis Panduan Bagi Membuat Perubahan Matan Perdagangan Dan Perniagaan Di Majlis Bandaraya Petaling Jaya" dated July 14, 2007 for more details on this. It is interesting to note that quite a number of these properties have not been formally converted to commercial use as such. They have merely been given an approval by the council to be used for the abovementioned purposes, subject to an annual payment of RM2,000 to the council. One would need to continue to renew this on a yearly basis. The title of these properties remains residential as stated in the express condition. Beginning next year, MBPJ will cease to allow the yearly annual payment of RM2,000. This means that the owners should then proceed to convert their land from residential into commercial use. The owner would have to apply under section 124 – "Variation of Conditions, Restrictions & Categories" of the National Land Code 1965 for approval. For this, one would need to apply at the Petaling Land and District Office.
STARPROPERTY.MY SUNDAY 19 JULY 2015
AN OPINION DATUK STEWART LABROOY Datuk Stewart LaBrooy is the Chairman of Malaysian REIT Managers.
13VIEWPOINT
How Public Spaces Make Cities Work “You can measure the health of a city by the vitality and energy of its streets and public open spaces.” – William H. Whyte
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uala Lumpur is ranked the 16th most liveable city in Asia although we have been given the dubious distinction of having the worst taxi drivers in the world. In asking myself what would enable a city like KL to move up in the rankings, I arrived at the conclusion that one aspect of what makes great cities comes down to the city’s ability to provide its citizens with amazing public spaces that will complement our great
architecture. There is no denying that Kuala Lumpur has its very own amazing green lung – our Lake Garden’s. This legacy from colonial times is really beautiful but remains far away from the working population in the Golden Triangle and the business district. Unlike Central Park in New York or the many parks in the middle of the city in London, which interact with their
business and residential districts, Kuala Lumpur is bereft of any great spaces near to where people actually work. The only public space within the commercial district of Kuala Lumpur is KLCC Park. The KLCC Park is a public park located in the vicinity of Suria KLCC, Kuala Lumpur. The park has been designed to provide greenery to Petronas Twin Towers and the areas surrounding it.
Public spaces should be designed The park was designed to showcase a heritage of tropical greenery by integrating man's creation with nature. The park itself contrasts as a calm environment in the midst of the hustle and bustle of the city. The park features many combinations of man-made designs to add plural connotation such as water features and also natural features such as trees, shrubs, stones and wood. Elements of shape and topography were created to give an illusion of space. The combination of trees, shrubs and sculptures were arranged to provide colour and form to the park. Conservation and bio-diversity was a major influence in the creation of the park. Twenty three of the mature and rarer specimens were saved from the old Selangor Turf Club and transplanted into the park grounds. One thousand nine hundred indigenous trees and 66 species of palms were planted in the park to promote bio-diversity. The trees were deliberately selected to attract local and migratory birds. However it appears that it was not designed for people and it shows as there is nowhere to sit! Public spaces should be designed to attract people to them. They should have an incredible attention to detail and be created for the common good of the city. These spaces need not be large but rather frequently interspaced within the concrete jungle where we spend a disproportionate of our lives every day. As living accommodation in the city shrinks there is an urgent need for its citizens to have places where they can bond with nature. Great public spaces are the living room of a city – where people can come together and enjoy the city and each other. Public spaces make high-quality life in the city possible. They range from grand central plazas to small squares and neighbourhood parks.
Berkeley Square London W1.
Feel of a city and its neighbourhoods Parks are complex elements of a city. They can serve scores of different uses, may be specialised in their function, or can simply provide visual appeal for residents. However they work, they act to define the shape and feel of a city and its neighbourhoods. They also function as a conscious tool for revitalisation. Parks can stem the downturn of a commercial area, support the stabilisation of faltering neighbourhoods, and provide a landmark element and a point of pride for constituents. For all these things to happen, the city needs to be open and aware of parks' potential to spur revival, and support the elements that are needed to make that happen. For these reasons, parks need as much thoughtful attention to design, location and surrounding uses as every other constructed element in the city, from housing to retail to commercial to entertainment. When careful attention is given to selective park creation or improvement, it will likely have a great impact.
Parks are good financial investment for communities
KLCC Park.
Parks provide intrinsic environmental, aesthetic and recreation benefits to our cities. They are also a source of positive economic benefits. They enhance property values, increase municipal revenue, bring in homebuyers and workers, and attract retirees. At the bottom line, parks are a good financial investment for a community. Understanding the economic impacts of parks can help decision makers better evaluate the creation and maintenance of urban parks. Wouldn’t it be a wonderful experience if we could wonder out of our offices and enter a park for lunch and read a book or meet with some friends for a chat? Some others may just like to pick up a cup of coffee and do some work in private. However, we have witnessed the disappearance of our public spaces at an alarming rate in our cities across Malaysia as developers work hard to change the zoning to build new developments on green spaces or playing fields without consultation with the constituents. The problem is further aggravated by the fact that many public spaces are poorly maintained and are in a terrible state of repair. Local authorities just don’t have a good culture of maintenance or have the required skill sets to ensure that public spaces are kept in a pristine condition. This has to change. Claiming public spaces is very difficult – losing them is very easy. There is a need for local planners to take a lead and be vigilant champions in the design, creation and maintenance of our public spaces. Every park should be a key element in any city or town and cherished and nurtured for the benefit of their citizens. It reminds me of the song Big Yellow Taxi by Joni Mitchell in which she sings the following verses: “They paved paradise And put up a parking lot With a pink hotel, a boutique And a swinging hot spot
Central Park New York.
Don't it always seem to go That you don't know what you've got
Till it's gone They paved paradise And put up a parking lot
Don't it always seem to go That you don't know what you've got
They took all the trees Put them in a tree museum And they charged the people A dollar and a half just to see them
Till it's gone They paved paradise And put up a parking lot”
STARPROPERTY.MY SUNDAY 19 JULY 2015
14
VIEWPOINT
AFFORDABLE HOMES AND OUTSTANDING STUDENT LOAN ISSUE
THE 2015 CHALLENGE TO HOUSING THE NATION F
irst-time home-buyers this year are finding more and more projects within their affordability as Malaysian developers have generally repositioned their offerings at more reasonable level of pricing. The Southern and Western corridors of Klang Valley, from Klang to Shah Alam, Seri Kembangan to Kajang and down south till Bangi and Semenyih are experiencing an unusual exciting and sparkling moment. All the local big players are there offering highrise and landed housing at far below the RM700,000 tag which, according to Table 1, represents the higher limit of Kuala Lumpur/ Selangor affordable values. Demand for homes keeps on remaining high and supply is still far behind as this study and projection done on the latest Property Market Report 2014 released by Napic earlier this year clearly shows. Unless something new comes into the market place very soon, by 2020 we will still have an unsatisfied demand of more than three million homes. (Table 2) By looking at these numbers and considering the effort to increase the supply of affordable homes put in place by the developers, we should expect a good market outlook and positive outcomes for the industry. However, asking around the developers and various professionals, the finding is totally a different story. Almost everybody is complaining that it is becoming more and more difficult to purchase affordable homes. Pay attention to the words, now people are not saying: “it is impossible to find affordable homes” but, “it is difficult to purchase affordable homes”.
Negative factor
We all know how challenging it has become to find proper financing nowadays. Banks are narrowing down the selection criteria, margin of financing (MOF) is often below 90%, Bank Negara has introduced more restrictive parameters for the calculation for the Debt Servicing Ratio (DSR) and the unexpected has actually happened: PTPTN (Perbadanan Tabung Pengajian Tinggi Nasional) has finally done what it has been for a long time threatening to do. Since June 1, 2015, the Central Credit Reference Information System (CCRIS) form has been updated with two data related to the PTPTN loan that several hundred thousand Malaysians have obtained in their younger years to complete their higher education: outstanding amount and number of months in delayed payment. We can surely say that Malaysian banks are generally quite flexible, but one thing they stressed is payment punctuality. How a good paymaster a borrower is, often represents the positive decision-making factor to have loan approved even with higher DSR or MOF. It makes sense as punctuality in repayment is an indicator of reliability and trust. What is quite wrong is that very punctual paymasters, in their owing to banks, have been revealed as untrustworthy borrowers when it comes to borrowing from the Government and
banks have rapidly changed their valuation parameters and rejected loans percentage has hit the roof. The 2014 statistics released by PTPTN revealed the actual size of this issue, which needs to be immediately addressed by the authorities to avoid heavy negative repercussions over the next few years’ balance sheets of the country in terms of rise of the debt-to-GDP (Gross Domestic Product) ratio and, because of this, possible downgrading of the Malaysian credit ratings. Table 3 shows a CCRIS report that indicated the number of months with defaulted payment (red fields) and can easily explain how banks’ officers will look at it.
REAL ESTATE INSIGHTS
Table 1
DR DANIELE GAMBERO
REI Group of Companies CEO and co-founder Dr Daniele Gambero gives presentations on the property market and welcomes feedback at daniele.g @reigroup.com.my
Penang
Negri Sembilan
Challenging numbers
The statistics released by PTPTN in April last year, as shown in Table 4, are giving the actual size of the challenge that the authorities are facing. How all the above relates to the affordability issue is quite easy to understand. Developers may expect a reduction of more than 400,000 potential buyers who will be wiped out, as good and reliable borrowers, by the updated information in the CCRIS form. For them, available affordable homes will still remain a dream even though their income and DSR are saying that they can actually afford to buy.
Table 2
SUPPLY OF LOW-COST TILL 2020
SUPPLY OF HIGH-RISE TILL 2020
Negri Sembilan
POSSIBLE SOLUTIONS TO THE CHALLENGING ISSUE Someone said that there is not a problem that does not have a solution and I fully agree with this; in our case what we need is good and fair cooperation between the relevant parties. PTPTN has been more than reasonable in the past decades allowing minimum repayments and patiently waiting, possibly too much. It is now time Table 3 for them to identify the defaulters and sit down with them and look for practical solutions. 3 16/08/2006 OWN OTH 64,000,00 The easiest solution might be to cross-check with the Income 0 OTLNFNE 49,050.00 31/05/2015 MTH CLEAN 77 77 Tax Department and define with a three-party agreement, employer4 10/08/2005 OWN OTH 5,000.00 employee-PTPTN, a fixed deduction from the monthly salary: public 0 OTLNFNCE 6,025.00 31/05/2015 MTH CLEAN 101 101 and private entities can easily deduct a minimum and comfortable amount from monthly payslip and transfer it directly into PTPTN Table 4 account. At the same time Bank Negara should advise banks on how to look at the concerning information on months of default in the PTPTN loan payment which has been uploaded in the CCRIS form. PTPTN STATISTICS-APRIL 2014 For home-buyers, a side agreement to the purchase of a home/property will allow the borrower to still be able to buy a home and at the same time starting the repayment of his/her PTPTN TOTAL NUMBER OF BORROWERS 1997/2013 2,390,000 outstanding loan with full and fair satisfaction to all the parties involved. TOTAL NUMBER OF BORROWERS WITH For the ones who right after their degree graduation have left the country looking for better OUTSTANDING LOANS AS AT 2013 1,240,000 opportunities overseas, a check with the Malaysian Immigration should result in a possible mediumto long-term recovery of a good part of their outstanding balance. TOTAL NUMBER OF DEFAULTERS AS AT 2013 412,245 I strongly hope no one will get hurt by these thoughts, which have been coming from basic common sense and fair considerations. If you are lucky enough to live in a country which grants you TOTAL AMOUNT OF STUDENT LOAN IN DEFAULT RM1,300,000,000 with a good study loan that will allow a substantial upgrade of your lifestyle and career possibility, Source: Study by YN Chow, Phd.Han Chiang College it should be logical, once you have achieved your dream, to repay the favour and punctually “give back” what was anticipated of you. My fair and simple five cents worth of thoughts.