To the nursery for a Poinsettia festivity

By SHAREN KAUR - November 30, 2017 @ 1:57pm

Christmas is just around the corner and if you are still thinking what to do in terms of decorating your garden or the kind of plants to have indoors, go to the nearest nursery for suggestions.

One that gets crowded during any festive season here is Nurseri Dimewa in USJ 3A, Subang and they are having a few standard Christmas plants and flowers that you may like for your home this holiday.

The owners, who have been in this business for the last 27 years, will offer you suggestions or tips on how best to decorate your garden or home if time is of the essence.

Nurseri Dimewa specialises in landscaping design, turfing and potted plants. They have over 200 types of tropical ornamental palm, shrubs, trees, climbers, ground covers as well as aquatic plants.

For this holiday season, dominating the entrance of the nursery are red poinsettia, silver leaf plants, goldcrest pines and English Ivy, to name a few.

These are very popular plants for Christmas and perhaps the most recognisable is the poinsettia, also known as the queen of Christmas plants, which comes in bright red and green leaves.

Other plants suitable to decorate your home for this Christmas are begonia leaf (variegated), fern leaf and ficus elastica.

“Depending on the space you have in the garden, you can either buy a few of the same species and place them at the sides of the driveway so you have them all in one colour, or mix and match a few different types and arrange them neatly at the entrance.

“Mix and match varieties offer a fantastic look. The spectacular plant combination complements each other in an unusual and outstanding way.

“You can even put the plants indoor, especially the poinsettia at the corner of your living room, on the dining table or even in the kitchen. The bright red colour will make the environment quite pleasant and very christmassy,” said one of the owners.

Of course the centrepiece of any Christmas celebrating house is the Christmas tree and Nurseri Dimewa has new supply coming in after having fully sold the early stock.

Integrated resort — a tourism game-changer

For NST Property - November 30, 2017

Sutera Harbour Resort in Kota Kinabalu, Sabah

Integrated resort (IR) developments are mushrooming around the world. Countries see the roles that IRs play can strengthen their overall tourism offerings.

IR developments are generally defined as mega-tourism, entertainment and leisure developments that combine hotels, restaurants, convention centres, casinos, theme parks and shopping centres.

Some of Malaysia’s leading IRs are Resorts World Genting (Malaysia); Sunway Resort Hotel & Spa (Malaysia); and Sutera Harbour Resort (Malaysia).

For other parts of Asia, they include Marina Bay Sands (Singapore); Resorts World Sentosa (Singapore); Mission Hills Haikou (China); Venetian Macao (Macau); Sheraton Macao Hotel Cotai Central (Macau); StarWorld Hotel (Macau); Wynn (Macau); MGM (Macau); City of Dreams (Macau); and City of Dreams Manila (the Philippines).

Outside of Asia and among the world’s best-known IRs are the Venetian and Palazzo in Las Vegas, Disneyland/Disneyworld, Melbourne’s Crown Entertainment Complex, South Africa’s Sun City, Mauritius, and The Atlantis in the Bahamas.

Wherever they emerge, IR developments have a dramatic impact, enhancing an entire destination’s tourism product and appeal — boosting the economy, changing the entire shape of tourism and creating job opportunities like never before.

For example, Macau’s casino revenue had quadrupled from HK$55 billion to HK$217 billion (RM28.96 billion to RM114.25 billion) last year since the opening of the Venetian Macao, the flagship of “Asia’s Las Vegas” in 2007. Despite a downturn in gaming visitors from China, revenue remains nearly five times the Vegas Strip. Macau’s visitor arrivals have expanded from 22 million to a projected 32 million this year, generating significant economic benefits beyond gaming.

Malaysia’s Sutera Harbour Resort in Kota Kinabalu, Sabah, the country’s foremost premier integrated property, is also doing well and expanding to include new tourism products and luxury houses for the local and overseas markets.

Sutera Harbour Resort in Kota Kinabalu, Sabah is one of top IR destination in Malaysia

The 154ha resort is now home to two luxurious five-star hotels with 956 guest rooms, championship golf course, marina and recreational facilities.

Singapore Exchange-listed property developer GSH Corp Ltd expects robust potential for prime real estate in Kota Kinabalu, fuelled by strong tourism growth from South Korea, Japan and Hong Kong. Visitors from these countries are increasing by the year and account for more than half of total international arrivals to Sabah.

Vietnam to join the club

HOIANA — a new world-class IR development in Vietnam — is set to join the IR club in Asia, with the first phase scheduled to open in 2019.

Located between Danang, Vietnam’s third-largest city and Hoi An, a Unesco World Heritage site, the 985.5ha development will offer a full range of amenities to attract tourists, families, couples, golfers, gamers and businessmen.

HOIANA head of business development Amy Do said the master development plan for the project over the next 10 to 15 years envisaged a host of complementary tourism and leisure-related projects through subsequent development phases.

The massive US$4 billion (RM16.44 billion) venture will have a world-class casino, an ultra-luxury Rosewood Hotels & Resorts, a 445-room hotel and 200 buy-to-let condominiums; and a championship golf course-country club by Robert Trent Jones II.

Recreational facilities will include a beach club and entertainment venue for live shows and events, watersports and dive centre, and a promenade packed with bars and restaurants.

“HOIANA is set to rank among Asia’s most renowned resort destinations, offering a self-contained world of entertainment, leisure, pleasure and luxury lifestyle.

“This unrivalled, world-class integrated resort and leisure playground will set a new benchmark for high-end tourism in Vietnam, bringing economic prosperity and opportunity to Quang Nam province,” she said.

Macau-based casino operator SunCity Group and Chow Tai Fook Enterprises are stakeholders working with VinaCapital for the IR casino resort. VinaCapital is one of the largest foreign investors in Vietnam’s real estate market.

It was reported that Phase 1 at HOIANA will incorporate the 445-room hotel complex and 200 apartment-suites for sale on a buy-to-let basis operated by Hong Kong’s New World Hotels, as well as Rosewood spa resort with 75 guest villas and 25 residences, and the world class championship golf course.

The opening of HOIANA is set to compliment the developments of several projects in Vietnam by Malaysian developers.

Property investment: Malaysia still top choice for China buyers

For NST Property  -November 23, 2017 @ 1:06pm

MALAYSIA remains a property hotspot for foreign buyers, especially the Chinese, and the top locations are Kuala Lumpur, Johor Baru and Melaka, according to Juwai.com, China’s largest international property website.

Although Beijing had restricted overseas property investments in a bid to limit capital outflows and strengthen the yuan, the Chinese are still interested to buy real estate abroad.

Juwai.com chairman Georg Chmiel said the popularity of the location or project among the Chinese depends on various factors.

These include the projects on offer and the efforts taken to market the properties, he told NST Property.

“There are some things that developers can do to improve the appeal of their projects to buyers from China. Developers who offer financing options to foreign buyers will find this makes their property more appealing.

“Safety is important to buyers from China, so emphasise on built features and aspects of the community that enhance residents’ safety. Developers should also offer post-sales services, property management services and rental guarantees to attract buyers,” Chmiel said.

He said an important driver of investment in Malaysia is the Belt and Road initiative promoted by the Chinese government, and the potential gains in terms of employment and gross domestic product.

“Malaysia attracts Chinese buyers who appreciate its relatively well-developed infrastructure, the opportunity to obtain quality English-language education and the chance to enjoy a more pleasant lifestyle and environment than in China.

“Most importantly, Malaysia is a springboard for second-generation Chinese who come here to study before they go to Europe, Australia or the United States. Malaysia offers a more pleasant lifestyle compared with Chinese cities. It is an appealing place for vacation homes and retirement living, given the excellent healthcare system and the easy travel to and from China. The country offers a convenient visa programme and an attractive second home plan.”

Chmiel said to market Malaysian properties overseas, developers should use a balanced strategy that combines branding, online traffic, Chinese-language marketing and listings and Chinese-language buyer services located in China — such as a service desk, property tours and local agent partners.

“These are elements we offer to Chinese developers. We think the most successful marketing campaign will combine them all.”

He said the majority of international real estate Chinese buyers are from Guangdong, Shanghai and Beijing, who come from the wealthiest parts of the country and who are the most integrated with the rest of the world.

He said the average price of Malaysian residential real estate that Chinese buyers are most interested in ranges between RM1.2 million and RM3 million.

“The majority of buyers are looking for individual homes and apartments. It is not uncommon for an investor to put money into an early-stage development project. There are also some families who purchase multiple apartments.”

Chmiel said Chinese buyers represent the biggest and most lucrative market for Malaysia.

“Chinese demand for Malaysian residential property increased 138 per cent in the first half of this year compared to one year earlier, and we expect demand to continue growing in the years to come,” he added.

EcoWorld International acquires prime site in Sydney popular with locals for AUD139 million project

Eco World International Berhad (EcoWorld International) has secured access to a prime development land situated 12 kilometres northwest of Sydney’s central business district with plans to develop an AUD139 million Gross Development Value (GDV) project there.

The project site is situated at 1-3 Lachlan Avenue, Macquarie Park, Sydney adjacent to Macquarie University in the Macquarie University Precinct. This locale is home to one of Australia’s top 10 universities and top two percent (2%) universities in the world that attracts thousands of international students annually. It is also strategically positioned within close proximity to the Macquarie Innovation Park District, Macquarie University Train Station and Macquarie Shopping Centre.

MIPD is Sydney’s second largest business district and one of the largest business and technology precincts in the Southern Hemisphere. It is also one of Sydney’s most important employment centres which hosts major global players across the pharmaceutical, technology, electronics and telecommunications industries like Fujitsu, Canon, 3M, Microsoft, Procter & Gamble and Johnson and Johnson, to name a few.

“We are delighted to be able to add the Macquarie Park site, which is situated in a fastgrowing location extremely popular with Sydney-siders, to our growing project portfolio in Australia. Our decision to focus on serving the needs of the domestic property market began with the acquisition of the Yarra One site in South Yarra, Melbourne. This was followed by our recent entry into the Heads of Agreement with Willmott Dixon to potentially acquire 12 projects in the UK. The announcement today is therefore in line with our overall strategy to localise our brand wherever we operate,” said Dato Teow Leong Seng, President and CEO of EcoWorld International.

At present there is an existing building located on the project site with 30 en-bloc apartment units. Under the Strata Schemes Development Act 2015 (Australia), 75% of unit owners in a strata scheme can agree to end their strata scheme, so the site can be redeveloped or sold.

EcoWorld International has entered into a call and put option agreement with owners of 25 of the apartment units to acquire these units by way of a collective sale. This represents approximately 84.2% of the strata scheme which enables EcoWorld International to proceed with the acquisition of all the apartment units through a strata renewal process under the Act.

The estimated purchase price to acquire the entire site is approximately AUD40 million and the proposed acquisition is expected to be completed by November 2018. EcoWorld International plans to develop 125 units of residential apartments with a small component of retail.

The total estimated GDV of the project is AUD139 million and it is targeted to be launched in the first half of 2019 and completed over 3 – 4 years from the date of launch.

Funding for the proposed acquisition of the Sydney project is expected to come from a combination of the proceeds of EcoWorld International’s recent IPO and bank borrowings / other debt instruments. 

Malaysian firms can bid for MRT Line 3

By SHAREN KAUR for NST Business- November 13, 2017

KUALA LUMPUR : The chief for Mass Rapid Transit Corp Sdn Bhd (MRT Corp) said that tenders for the third Klang Valley MRT (KVMRT) line is open to both local and foreign firms.

According to chief executive officer Datuk Seri Shahril Mokhtar, local civil infrastructure companies can bid for the turnkey contract by forming a consortium or joint ventures (JV) with foreign players who have the technical expertise and know how.

As for the financing proposal, Shahril said that the tenderer would act as a "match-maker" for MRT Corp.

"As a match-maker, they would be involved in getting the financing in place for the MRT Line 3 development. We strongly believe that this method of developing the MRT Line 3 will save a lot of public money," Shahril said here today.

Shahril had said that the turnkey financing model is aimed at attracting foreign companies who may provide better financing options for MRT3.

The development of the MRT Line 1 and MRT Line 2 were based on the PDP (project delivery partner) model to ensure the on-time delivery of the projects.

MRT Corp recently invited construction and infrastructure development firms to participate in the tender process to build the MRT Line 3 on a turnkey basis.

The MRT Corp tender announcement followed Prime Minister Datuk Seri Najib Razak’s Budget 2018 speech on October 27, where he said that the government will expedite the construction of MRT3 and expects it to be completed by 2025, earlier than the initial target of 2027.

According to the notice of tender, MRT Corp said the successful applicant will be responsible for the engineering, procurement, construction, testing and commissioning of the 40km MRT3 line, featuring 32km of twin-bored tunnels and 8km of elevated viaducts.

The successful tenderer is also expected to develop tunnels, viaducts, stations, depots, trackworks, rolling stock, signalling, power supply and other related structures.

In order to qualify and participate in the tender process, MRT Corp said prospective applicants must meet the minimum financial capacity of having a paid-up capital and a shareholder’s fund that is not less than RM5 billion.

As for the financing proposal, MRT Corp said it should include a minimum financing period of 30 years, with a drawdown period of up to 2028, while the margin of financing must not be less than 90 percent of the expected total project cost.

A tender briefing for the MRT Line 3 will be held this Wednesday.

Anzo is bidding for over RM300m worth of construction jobs

By SHAREN KAUR for NST Business - November 1, 2017

KUALA LUMPUR: Anzo Holdings Bhd is bidding for construction jobs worth over RM300 million from the public and private sectors to inch up its earnings, company officials said.

Paragon@KL Northgate

The aim is to sustain continued profitability via the company's organic growth strategy in the core construction business for the financial year 2018 and onwards, said an official.

The construction and timber product manufacturing group returned to the black in the last quarter of its fiscal year 2017 after 16 consecutive loss-making quarters.

For the fourth quarter ended March 31, 2017 Anzo recorded an unaudited net profit of RM1.27 million from a net loss of RM3.84 million posted in the same quarter a year ago.

For the 12-month period, Anzo’s net loss narrowed to RM4.63 million from RM10.85 million, on the back of increased revenue of RM12.26 million from RM6.11 million.

Anzo managing director Datuk Eddie Chai said previously that the company is on the right path to sustainable profitability.

For the first three months of its current financial year ending March 31, 2018, Anzo registered a net profit of RM741,000 versus a net loss of RM2.65 million in the same period last year.

"We are bidding for contracts to build high-rise buildings, both residential and commercial in Greater Kuala Lumpur and Melaka where there are a lot of construction activities.

"The contracts are worth each between RM100 million and RM150 million and we hope to secure them in the first half of next year," said the official.

This year Anzo has won close to RM1.4 billion worth of contracts in Selangor and Melaka through its subsidiary, Harvest Court Construction Sdn Bhd.

The biggest job is a Letter of Intent (LoI) for a contract worth RM1.21 billion for the Paragon@KL Northgate mixed development in Gombak district.

In Melaka, Harvest Court received a letter of intent (LoI) for a RM109.3 million contract to undertake Phase 2 of the Porto De Melaka Hotel and Resort development.

The LoI was from Tinta Anggun Engineering Sdn Bhd, which in October 2015 had awarded Harvest Court a RM153 million contract to construct 120 units of service suites and 24 spa villas under Phase 1 of the Porto De Melaka Hotel and Resort development.

Harvest Court also won a RM10.17 million job from KL Northgate Sdn Bhd to revitalise

Selayang Hot Spring near Selangor's Batu Caves.

Upscale market: Mont Kiara remains preferred location

By SHAREN KAUR - October 19, 2017 @ 1:26pm

Mont Kiara, located in the northwest part of Kuala Lumpur, is considered a premiere real estate location for clients looking for the best spot in the city.

It is just several minutes away from the centre of trade and business in the city, which is the Kuala Lumpur City Centre.

Prime suburban locations, such as the Taman Tun Dr Ismail, Subang Jaya, and Petaling Jaya are also just a short drive away from the area.

Mah Sing Group Bhd chief executive officer (CEO) Datuk Ho Hon Sang said developers with properties in Mont Kiara target the upscale market because they have built homes there using the latest trend in architecture and equipped them with modern technology.

“Development is constant with better structures rising each year along with houses that feature fresh designs in construction,” he told NST Property.

Ho said there will always be demand for quality homes in well-connected locations.

Arcoris Mont’Kiara terrace view

“Residential units in Mont Kiara, such as our Icon Residence, has a demand due to its strategic location near major road arteries such as the Jalan Duta, Jalan Kuching, Penchala Link, Lebuhraya Damansara Puchong, North South Expressway, Duta-Ulu Klang Expressway and New Klang Valley Expressway. It is also close to nearby amenities and developments such as the Hartamas Shopping Centre, the Malaysia External Trade Development Corp office and Solaris Mont’Kiara.

“In today’s property market, a development’s facilities are also an important factor buyers consider before making a purchase. We include a host of facilities in our Icon Residence development as we believe these facilities will enhance the lives of our buyers. Icon Residence also boasts a unique architecture where every unit is a semi-D,” he said.

There are at least 45 to 50 high-rise residential buildings (16,000 to 17,000 units) in the Mont Kiara area.

Even though Mont Kiara is popular among developers, it is yet to be fully developed and there are still large plots of undeveloped land (mostly Malay reserve) available towards the Kiaramas side, said Previndran Singhe, founder and CEO of Zerin Properties.

Mah SIng Group Bhd CEO Datuk Ho Hon Sang.

Hence, the Mont Kiara’s property market will continue to be active, at least for the next 10 years, he said.

“Mont Kiara is already expanding outwards and the area is being branded as Kiara North. Developers are riding on the Mont Kiara name branding as a marketing gimmick to attract buyers,” said Previndran.

Mont Kiara will continue to remain as a preferred location for living due to its strategic location, expatriate population and proximity to amenities and facilities, he told NST Property.

There are many developers who are currently developing in Mont Kiara, with UEM Sunrise Bhd being the most active.

A BUNDANCE INVESTMENT OPPORTUNITIES

Previndran said despite the perceived “glut” in the Mont Kiara property market, there are good investment opportunities for first-time home buyers and investors.

Both should look for units that are well-maintained and close to amenities, he said.

On top of that, they should exercise their bargaining power to get the best deal in terms of purchase prices as they will have more options to choose from with impending supply.

“Non-landed residential units by established developers, especially within mixed developments such as Arcoris Mont’Kiara, will be good investment products as they are in line with current trend whereby more of the younger generation prefer to live in mixed developments for convenience.”

A night view of Arcoris Mont’Kiara.

While there is a huge spread of asking price currently, in view of the present state of the economy, Previndran anticipates both prices and rentals to see some improvement from mid-2018 driven by potential increase in expat population, growing housing demand among locals and overall improvement to the property market.

“Overall, property prices have remained somewhat subdued in the past two years due to slower economy growth and influx of new supply. However, the prices are recording improvement in recent times. The prices have gone up as a result of economy rebound, resilient property market and growing demand from homebuyers,” said Previndran.

There is a good mix of local (including high-net-worth individuals) and expatriates in Mont Kiara now.

Previndran said the existence of several international schools and proximity to amenities and city centre attracts more expatriates to the Mont Kiara enclave, thus increasing demand for housing.

“This makes condominiums within this enclave, particularly those by established developers, highly attractive among the expat community and locals. These factors will remain as catalysts for the Mont Kiara’s condominium market,” he said.

MAH SING EYEING MORE OF MONT KIARA

Mah Sing’s Ho said the group’s current focus is to increase its landbank in Klang Valley to 75 per cent from the current 67 per cent within the next two to three years. Mont Kiara and Mont Kiara North are among its targeted areas.

UEM Sunrise Bhd MD and CEO Anwar Syahrin Abdul Ajib.

“Mont Kiara is among possible locations in the Klang Valley for us to explore and we anticipate more potential land acquisitions, joint ventures and investments.

“Our maiden project in Mont Kiara North, Icon Residence has done well. It is an iconic development in the Mont Kiara landscape. With our good track record of delivering quality developments, our customers and investors will be confident should we decide to pursue future developments in the Mont Kiara area,” Ho told NST Property.

Icon Residence was launched in June 2011 and completed four years later. It comprised 290 luxury service apartment units with built-ups from 874 sq ft (one bedroom) to 4,436 sq ft (4+1 penthouse).

The average launch price was RM699 per sq ft (psf) and it has doubled today to RM1,100 psf.

“The capital appreciation is about 40 per cent and this is something we want to replicate,” he said.

Ho believes that the primary market will continue to do well especially with a number of recent property launches in the Mont Kiara area.

There is demand for homes in the range of 800 to 1,300 sq ft. Ho added that these sizes will continue to do well in the current property climate and home value will also appreciate.

“We are also encouraged by the overall take-up rate by buyers. Our Icon Residence, for example, has a healthy occupancy of about 87 per cent, which shows that people still see Mont Kiara as an area they want to stay.

“The capital appreciation of a property depends on market and economic factors. For example, the current market demand is for mass market homes at affordable prices. However there will always be a niche for designer homes for the upgrader market,” he said.

According to Ho, the property market is currently undergoing consolidation but in the mid and long-term, it will continue to be healthy.

As such properties in Mont Kiara will be seeing good gains in the coming years as properties located in right locations will definitely see appreciation, he added.

Moving forward, Ho believes Mont Kiara will expand outwards once land has become limited.

“Mont Kiara started off as a small township but then expanded outwards to include areas such as Segambut Dalam (Mont Kiara North),” he added.

UEM SUNRISE CONTINUES TO LEAD MONT KIARA

UEM Sunrise Bhd has about 14.3ha of landbank in Mont Kiara and the surrounding area, in scattered locations, said its managing director and CEO Anwar Syahrin Abdul Ajib.

Anwar said the company will plan the launches in a timely manner in order to maximise the land’s value and proposition.

“We are not able to say when the land will be fully developed at this stage as we are also developing other non-Mont Kiara land,” he said.

Anwar said the company has no plan to acquire more land in Mont Kiara at this point in time.

The focus currently, he said, is to complete all ongoing projects and plan new launches on its existing landbank there.

Year-to-date, UEM Sunrise has already completed Arcoris Mont’Kiara, featuring business suites, soho units and serviced residences (959 units), and are handing over the properties to purchasers in stages.

The company is targeting to complete and hand over Tower A and B of Residensi22 Mont’Kiara, comprising 534 units, towards year-end.

Residensi22 Mont’Kiara comes with innovative and distinctive features that are formed by two majestic twin towers accommodating 534 freehold units ranging from 1,878 to 3,163 sq ft.

Next year, it plans to launch MK27, a high-rise residential development, and a 719-unit Kondominium Kiara Kasih (Rumawip). In 2019, it hopes to launch the first plot of MK31, which will be a mixture of high-rise and low-rise residential development.

“Do also expect exclusivity for MK31, a mixture of high-rise and low-rise residential project,” Anwar said, without disclosing further details on the development.

(Part II next week)

Retirement villages flourish on rising demand

For NST Property - October 19, 2017 

RETIREMENT is a time to live your life better and have a great adventure in a new part of the world.

In Malaysia, there are four retirement villages — The Green Leaf (Sepang), AraGreens Residence (Ara Damansara), Green Acres (Ipoh) and Eden-on-the-Park (Kuching) — offering facilities for senior citizens from all over the world to reinvent their lives.

A retirement village is a multi-residence housing facility intended for senior citizens. The facilities provided include meals, gatherings, recreation activities and some form of health or hospice care.

More demand for retirement homes are expected as the ageing population increases.

In the next three years, one in 10 Malaysians will age 60 and above. By 2040, it is projected to be one in five, giving the country an ageing nation status.

Based on the Live and Invest Overseas Annual Overseas Retirement Index 2017, 13 categories represent the most important criteria retirees must weigh when shopping the globe for the best place to live in their golden years.

The categories are cost of living, crime and safety, spoken English, entertainment, environmental conditions, expat community, health care, infrastructure, real estate affordability, real estate restrictions, recreation, residency options and taxes.

The index considers George Town in Penang as one of the Top destinations to reinvent life, get some adventure, have a great time and reduce cost of living dramatically.

Green Acres homes come equipped with age-friendly features.

George Town was named the most livable city in Malaysia and the eighth most livable city in Asia by global consulting firm ECA International.

Kuala Lumpur is also in the Top 10 list.

Ipoh’s very own retirement village

Total Investment Group is developing Green Acres in Meru, Ipoh — a five-phase development that was unveiled in 2014.

The RM100 million project will offer 177 units for independent living sprawled across a 5.26ha land surrounded by lush greenery and the rolling limestone hills of the Kinta Valley.

Each of the one and two-bedroom units, measuring between 730 and 1,100 sq ft, offer living space large enough for comfort yet small enough for easy maintenance.

The first phase of Green Acres was officially opened recently by Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong.

It comprises 26 units of resident-ready single-storey landed villas and a RM10 million community-centric clubhouse.

Games Room in Green Acres Clubhouse.

The three-story clubhouse spans 30,000 sq ft and anchors the residents’ community activities. Fronting a pristine landscape, back-dropped by emerald green hills in the distance, the clubhouse is the largest within a residential development in Ipoh.

Total Investment Group executive director John Chong said: “The first phase villas include new residents from Malaysia, Hong Kong and Canada.

“We are receiving great interest from residents from all over the world who would like to retire gracefully and comfortably in Ipoh,” he said.

Chong said the homes are designed to be age-friendly and are available in six layouts ranging from 734 sq ft to 1,105 sq ft in size.

These homes cannot be bought or sold; they can only be leased for life from the developer.

AraGreens Residences in Ara Damansara.

“They are required to pay an upfront deposit from RM300,000 onwards for a lifetime lease in addition to monthly general service charge starting from RM371 and sinking fund, which covers the operational cost of the village and access to the facilities and activities at the clubhouse.

“The lease deposit will be refunded to them when they leave,” said Chong, adding that 15 villas in the first phase had already been taken up by not just Malaysians but also residents from Canada and Hong Kong.

UEM Sunrise eyes more land Down Under

By SHAREN KAUR for NST Property - October 19, 2017

UEM Sunrise Bhd aims to buy at least two parcels of land in Australia next year with the completion of its land sale in Canada.

The luxury developer received C$113 million (RM381.87 million) from selling 1.98ha land in New Westminister, Richmond, and plans to use some of the proceeds for land acquisition in the world’s most liveable city — Melbourne — and Sydney.

According to its managing director and chief executive officer Anwar Syahrin Abdul Ajib, the company has “narrowed” its search for new landbank in the two cities.

“We are actively looking, but the numbers must make sense. We hope to have one or two deals next year because we want to make sure there is continuation of launches.

ADVERTISING

“In the last three years we launched three projects in Australia. We want to make sure that every year there is at least one new launch there,” Anwar told NST Property.

UEM Sunrise’s three projects in Melbourne are Aurora Melbourne Central, Conservatory and Mayfair with an estimated value of RM5 billion.

The sites for these developments were acquired beginning in 2014 for a collective sum of A$122 million (RM405.80 million).

UEM Sunrise acquired a 0.4ha site on LaTrobe Street for Aurora, a 0.4ha site on Mackenzie Street for Conservatory and a 21-storey office tower on 412 St Kilda Road for Mayfair.

The Australian operations have contributed between 20 and 30 per cent to earnings in the second quarter ended June 30 this year.

Anwar said Australia is an important market for UEM Sunrise which is seeking growth through diversification.

“The Australian market is always attractive because of its liveability. The demand is always there for places like Melbourne and Sydney. So, it is a matter of getting the right product in,” he said.

Ultra luxury living in Melbourne

“Our first two projects, Aurora and Conservatory, we were selling at about A$1,000 and A$1,100 per square foot (psf), respectively. For Mayfair, we are approaching nearly A$2,000 psf. Mayfair is a premium product as the location is special. We are targeting about 50 per cent buyers to be local Australians. It is an owner’s stay kind of development so it is pretty exciting for everybody,” he said.

Anwar said from the total 158 units in Mayfair, UEM Sunrise has secured up to 30 per cent sales, inclusive of bookings.

“Our guys are all over. We have done a soft launch in Singapore, Malaysia and Australia. We were in Taiwan recently,” he said, adding that there were 20 Malaysian buyers.

“They are the same people who also bought units in Aurora and Conservatory. They bought because they like the place and the product. People are excited about the product and the location.”

Meanwhile, the existing office tower on the Mayfair site was expected to be demolished early next year, said Anwar.

This was provided the developer had sold up to 70 per cent of the 158 units.

“We are giving ourselves a bit more flexibility. Hopefully we can have high percentage within the next three to six months. Once we have sold 60-70 per cent we will start demolishing the building hopefully by early next year.”

Anwar expects Mayfair, which has a gross domestic value of A$1.1 billion, to contribute a profit margin of 20 to 25 per cent to UEM Sunrise.

RIDING ON FOREIGN INTEREST

He said there was a lot of foreign interest in properties in Melbourne, Sydney and Brisbane.

“Brisbane is a good market, but we are not going there now. Our focus is Melbourne and Sydney. We are bullish on prospects, but we have to make sure what we launch is good.

(From left) Zaha Hadid Architects associate director Michele Pasca di Magliano, principal and director Patrik Schumacher, UEM Sunrise managing director and chief executive officer Anwar Syahrin Abdul Ajib and chief operating officer of commercial, Raymond Cheah, at the preview of Mayfair recently in Kuala Lumpur.

“Our products are pretty unique so far. They are pretty ultra luxurious because the price point is always high. For Mayfair, in a way we are setting the price benchmark for the area because the product to us is very special and unique. Mayfair is designed by well-known Zaha Hadid Architects. It is a sculpture the way we craft the project,” said Anwar.

It was reported recently that Chinese investment would continue to flow into Australia’s housing market despite tighter capital restrictions by the China government.

Real estate portal Juwai.Com has predicted levels will peak again despite a near-10 per cent fall in inquiries earlier this year.

Bloomberg reported that the restrictions on money flowing out of China had not stemmed Chinese interest in offshore investments.

Petaling Jaya Transformation: Abundance of residential choices

For NST Property - October 12, 2017 

PETALING Jaya (commonly called “PJ” by locals) has undergone tremendous growth since its origins in the 1950s. Formerly a rubber estate, PJ was developed with the purpose of diverting the population away from the capital Kuala Lumpur. As it grew and required the need of an administrator, PJ eventually becomed a city in its own right, ceasing to be part of Kuala Lumpur in the 1970s.

PJ, surrounded by Kuala Lumpur to the east, Sungai Buloh to the north, the capital of Selangor, Shah Alam, to the west, and Subang Jaya to the south - was granted a city status on June 20 2006. As population grew and businesses expanded, the public and private sectors started investing a few billion ringgit to develop the infrastructure and amenities in the area with roads, highways, light rail transit (LRT) systems, hospitals, shopping malls, hotels, schools, colleges, universities and entertainment centres.

Now known as satellite city, it is now home to various commercial and retail presence as well as houses more than 600,000 urbanites, all within an area of 97.2 sq km. It covers PJ South, PJ North and PJ West.

PJ South, from Section 8 to PJ Old Town, had the first settlements established around 1953. As PJ South progressed, PJ North, on the other side of the Federal Highway was developed.

An aerial view of The Azure Residences in Kelana Jaya. WCT PIC

PJ West came later covering Taman Mayang, Taman Seapark, Kelana Jaya, Damansara Intan and SS 1 to SS 25.

In PJ West, affordable opportunities still abound but property prices are driven up by newer developments.

The PJ West value map by Henry Butcher Malaysia shows that notable landmarks within and around PJ West include Tropicana City Mall (SS20), Menara Glomac (Bukit Kiara), Uptown Damansara (Damansara Utama), Centrepoint and First City University College (Bandar Utama), Kelana Jaya Medical Center, Parkland Commercial Center, Lincoln University College, Kompleks Sukan PKNS, Stadium MBPJ and Paradigm Mall (SS7), Giant and Unitar (SS6).

Petaling Jaya Stadium, or also known as MBPJ Stadium, in Kelana Jaya was built in 1996 in time for the 1998 Commonwealth Games and is the current home stadium to PJ Rangers and MISC-MIFA (Malaysian Indian Sports Council-Malaysian Indian Football Association).

Various multinational corporations have also established their presence in this locality. China technology giant Lenovo has its office set up in Damansara Uptown, followed by brands like Michelin, Lafarge and L’Oreal, while the Sungei Way Free Trade Industrial Zone houses names like Western Digital, Omron and NXP Semiconductors. Notably, Uber has its Partner Support Centre (PSC) in Section 51A.

The massive Paradigm Petaling Jaya development. WCT PIC

PUBLIC TRANSPORT

Although transportation facilities and infrastructure are well developed in PJ West, the fact that it is home to many offices and retail outlets leads to traffic and parking challenges for employees and residents. Commuting via rail transit is an alternative, with the three major rail transit options - KTM Komuter, LRT (Kelana Jaya line) and MRT (Sungai Bulog-Kajang) passing through the area, with last-mile connections via RapidKL’s extensive bus network.

The KTM Komuter serves the southern area (bordering PJS 1 and PJS 2), with the Setia Jaya, Seri Setia and Kg Dato Harun stations. Meanwhile, an MRT stop is a stone’s throw away from Damansara Intan (TTDI), while the LRT runs across the centre with stations in Taman Paramount, Taman Bahagia, Kelana Jaya, Lembah Subang, Ara Damansara and Glenmarie. The KTM Komuter and LRT lines meet in Subang Jaya, an interchange just a few stops away.

An aerial view of PJ West WCT HOLDINGS BHD PIC

There are several major highways and expressways that cover the area, including Federal Highway, New Pantai Expressway, North Klang Valley Expressway and Damansara-Puchong Expressway.

WEST SIDE BOOM

Before its boom, the residential stock in PJ West is made up mainly of terrace houses with some low-and medium-cost apartments. Today, condominiums and high-end developments are common, especially in areas like Bukit Gasing, Section 16 & 17, SS7 Kelana Jaya, Tropicana, and Ara Damansara.

Based on research by Henry Butcher, it is observed that residential properties in the vicinity of Taman Mayang and Aman Suria, many completed in the 1990s and 2000s, are relatively more affordable, whereas developments in Tropicana and Damansara Intan, which were completed more recently, command higher prices.

The affordable buys in PJ West congregate around Taman Mayang and SS7, with high-rise strata developments in the area sharing an average starting price of RM401 per sq ft (psf). Only one project in the area, Sterling (SS7), registered higher asking prices (exceeding RM600 psf).

Older medium cost apartments, such as Dataran Prima, Kelana Puteri and Suria Damansara (located near the Kelana Jaya Medical Centre), Tiara Kelana (near Sterling) and Shang Villa, register asking prices that start at RM201 psf. Those seeking more affordably priced homes can also look at older projects which were completed in the 1990s, such as Damansara Bistari, Jasmine Towers, Apartment Kampung Tunku, Kelana D’Putera, Kelana Parkview, Kelana Puteri, Mutiara Oriental, Shang Villa, and Tiara Kelana. For instance, one could very well find a unit in Tiara Kelana that is priced around RM300,000 (built-up area of 1,442-1,604 sq ft and pricing from RM200 psf).

Lumi Tropicana features four 35-storey residential towers. THRIVEN GLOBAL PIC

According to Henry Butcher, more recent entrants into the market register higher prices, with developers realising the potential the locality has to offer, as well as catering to the more discerning tastes of current house buyers. For PJ West, Damansara Intan and Tropicana reflect that growth, with most developments coming up in the late 2000s and early 2010s.

Bearing the prestigious “Damansara” name and being located adjacent to Tropicana City Mall has netted Damansara Intan higher property prices, with its projects - Casa Damansara 1 & 2, Tropics, Casa Suites (all developed by Tropicana Group) and Ken Damansara 1 & 2 (developed by Ken Holdings group) - generally starting at RM601 psf.

Henry Butcher believes that one could find a good value proposition in Casa Damansara 1 & 2, with asking prices at RM401 to RM600 psf.

The newer Tropics Serviced Apartment occupies the higher end of the spectrum, with prices averaging from RM850 psf. All these projects are closely positioned next to each other, but Tropics Serviced Apartment commands a higher price as it is part of a mixed-used development that comprises Tropicana City Mall and the 12-storey Tropicana office tower. Tropics is situated above the four-storey mall that has more than 200 retail lots.

Section 19, just south of Damansara Intan, follows a similar price range (RM601 to RM800 psf) with two outliers that are older developments - Damansara Bistari Apartment (starting at RM201 psf) and Jasmine Towers (starting at RM401 psf).

Meanwhile, the Tropicana area sees a mix of properties with varying price tiers. Damai & Permai Apartment, which were completed in the 2000s, start at RM201 psf and is the most affordable project in the area, followed by Casa Tropicana and Riana Green, which start at RM401 psf and can go up to RM800 psf. Tropicana Grande starts at RM601 per sq ft, and can exceed RM801 psf. Home buyers are prepared to pay higher prices for convenience and luxury, with projects like Casa Tropicana, Riana Green and Tropicana Grande located within close proximity to the MRT station and in the vicinity of lifestyle amenities like Tropicana Golf & Country Resort.

At SS5 and SS6 developments, projects with a similar price range as Damansara Intan are Kelana Parkview, Apartment Kampung Tunku and PJ 5, which starting at RM401 psf, with PJ 5 being the priciest of the three. The hottest project in the area is The Grand SOFO, which is priced from RM600 psf to over RM800 per sq ft.

Bordering Subang Jaya and facing the LDP Highway is Mah Sing’s mixed development project, Icon City, combining serviced apartments, retail spots and offices in one locality. Within Icon City lies Icon Residenz, another project that is priced above RM801 psf. Venture a bit further from Icon City, you will find Kelana Impian and Seri Setia, two projects that are starting at RM201 psf.

Generally high rise residential unit sizes in PJ West vary from 347 sq ft (The Grand SOFO) to 3,777 sq ft (Riana Green). Prices range from RM232 psf (Damai & Permai Apt), to a maximum of RM1,200 psf (The Azure).

NEW PROJECTS IN PJ WEST

There are four projects currently under construction in PJ West. Of the four, three are located close to one another (The Azure, Highpark Suites and Infinity Tower, occupying SS6 and SS7) while Lumi Tropicana by Thriven Global is located in Tropicana area. These projects have a minimum built-up area that starts at 417 sq ft (Infinity Tower), and a maximum of 1,815 sq ft (The Azure Residences).

Henry Butcher said prices are on the higher end of the spectrum, while The Azure, Highpark Suites and Lumi command above RM801 psf. Infinity Tower is the outlier, being the most affordable of the lot, starting at RM401 psf.

The Azure Residences by WCT Bhd is a 30-storey high iconic residential tower comprising 189 luxury units. The development incorporates the modern hotel living concept with dedicated recreational spaces. This luxury residential development is situated along PJ’s main arterial highway within WCT Holdings Bhd’s RM1.8 billion Paradigm integrated commercial development which includes Paradigm Mall, The Ascent corporate office tower and New World Petaling Jaya Hotel.

Highpark Suites by Gamuda Land Sdn Bhd. GAMUDA LAND PIC

Highpark Suites by Gamuda Land Sdn Bhd is located in Jalan SS6/2, SS6 in Kelana Jaya. The 2.02ha freehold lifestyle residential development features 1,024 residences which prices ranging between RM400,000 and RM1 million (452 sq ft studio units, 603 sq ft suites and duplex units of 743 sq ft or 840 sq ft) when they were first launched, and 43 units of dedicated retail arcades. HighPark Suites is the first Green Building Index (GBI)- certified development in Kelana Jaya, with a provisional certified Gold rating of 79.

Infinity Tower by Ideal City Development Sdn Bhd is a 0.5ha office-cum-retail development located near SS4 and SS5. It is a single tower housing 183 units of office-suites and pent-offices, nine units of three-storey retail shops, 16 units of F&B Alfresco Floor units and nine units of retail kiosks. The launch prices of the office suites were from RM290,700 and pent-offices from RM734,850. The retail shops sold from RM3,634,830 and F&B Alfresco units from RM376,390.

Thriven Global Bhd is developing the 2.6ha Lumi Tropicana in two phases featuring four 35-storey residential towers. Phase 1 launched in 2015 and last year, featuring two towers of 186 units of service residences each and 62 units of SoHo. Majority of units in Phase 1 have been sold with a gross sales value exceeding RM300 million. The first of the two towers in Phase 2, with 186 units of service residences, is selling from RM1,200 psf to RM1,300 psf. The entire project is expected to be completed by 2020.

“With such an abundance of residential properties, Klang Valley residents are spoilt for choice when it comes to finding a home in Petaling Jaya,” said Henry Butcher.

Opportunities for more affordable housing are still available in PJ West, although the new developments have seen prices being elevated to higher levels, it said.

Tweet Share 2018 Budget wishlist: Developers call for relaxed rules

By SHAREN KAUR  for NST Property, October 12, 2017

DEVELOPERS are urging the government to relax regulations so that property development in the country takes place in a healthy and efficient manner.

They have come up with various proposals and hope that the 2018 Budget would have some motivators.
Various cooling measures introduced by the government and Bank Negara Malaysia (BNM) in the last three years to help curb escalating property prices has left an irreparable dent in the market.

The measures included the removal of the Developer Interest Bearing Scheme (DIBS), changes in real property gains tax (RPGT) and curbs on loan to value (LTV) ratio which has resulted in end-financing issues and loan rejections.

Projects in the luxury housing or properties segment priced above RM800,000 have not been selling well.

According to the National Property Information Centre (Napic), as of the first quarter of this year, some RM10.08 billion worth of residential units (not including serviced apartments) were left unsold in Malaysia.

LBS Bina Group Bhd group managing director Tan Sri Lim Hock San hopes that cooling measures would be reviewed to help stabilise the property sector.

This includes relaxing the terms in RPGT to encourage more Malaysians to invest or upgrade their homes, directly creating and further boosting property market activities.

Lim suggested the lowering of the minimum threshold from RM1 million to RM500,000 for foreigners looking to purchase homes in Malaysia, and the expansion of the stamp duty waiver to include properties priced between RM300,000 and RM500,000.

“Many first-time home buyers still find it tough to meet loan requirements. We believe more flexible end-financing guidelines and additional incentives will greatly empower first-time home buyers financially,” said Lim.

Lim is also proposing the lowering of personal income tax rates and corporate tax.

“The additional margin in income can be used to ease the burden of the rakyat when purchasing their homes. Reducing the corporate tax will help to ease the burden of businesses, particularly developers.

“We are confident this will greatly benefit property developers who can then reinvest in the business, a move that can lead to improved productivity, increased job opportunities and increased quality and quantity of developments,” said Lim.

Lim said the move is aimed at helping to provide more options for home buyers and spurring the growth of the property industry and the overall economy.

Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum said stimulating the property industry would have a larger impact on the wider economy.

“The property industry has a larger multiplier effect than other industries, affecting more than 140 subsectors. Motivators in the 2018 Budget will help property developers and construction players, as well as encourage buyers, especially first-time home owners, to invest,” he said.

Mah Sing’s wishlist includes:

More flexible schemes for private developer’s projects

“At the moment, the flexible financing scheme is only exclusive for PR1MA’s projects. Such flexible schemes, if extended to private developers’ with projects where the houses are priced below RM500,000 and first-time home buyers will enable more buyers to own a home,” said Leong.

Continuing stamp duty exemption for first-time home buyers

The continuation of waiving off 100 per cent stamp duty for homes below RM300,000 is a good move to lessen the burden for first-time home buyers. It would further ease home ownership if the stamp duty exemption is applicable for homes below RM500,000, he said, adding that more subsidies will also be able to encourage a higher take up rate for first-time home buyers, said Leong.

Reducing compliance costs

“We hope the government will be able to loosen mandatory obligations to ease developers’ burden on compliance costs such as contributions for utilities like Tenaga Nasional Bhd, Syarikat Bekalan Air Selangor Sdn Bhd and Indah Water Konsortium Sdn Bhd, developer charges, land conversion premiums, infrastructure contribution, surrender of land and construction of facilities as these charges represent heavy compliance costs.

“All these would result in cost savings that can be passed directly to the home purchasers with a more affordable properties prices.”

Lower price threshold for foreigners

“This will promote more foreign investment in Malaysia. The majority of the states in Malaysia have a threshold of RM1 million while the Penang island and parts of Selangor have a threshold up to RM2 million for foreign buyers.

“Compared with Hong Kong and Singapore, Malaysia’s property market is very domestically driven. In fact, foreign buyers in Malaysia are only between two per cent and three per cent. Therefore, we should promote more foreign investments in Malaysian properties as it would also has a multiplier effect in boosting the property industry as well as the nation’s economy,” said Leong.

Claims on Goods and Services Tax (GST) input credit for affordable residential projects

In the property industry, a GST of six per cent is not imposed for residential projects. However, developers are still required to bear the GST for development cost.

Leong hopes the government will be able to allow developers to claim the GST input tax credit for development costs incurred for affordable residential products to lessen developers’ burden.

Providing tax relief for private developers

A 10 per cent to 20 per cent tax relief on profit will be able to encourage developers to build more affordable homes, especially in areas that are experiencing shortage of homes, said Leong.

Lower personal income tax rate

With the successful implementation of GST, Leong hopes the government will consider lowering the personal income tax rate for individuals. This would allow individuals to have more disposable income which could be used for investments.

Higher EPF account 2 percentage allocation

The government can consider revising the percentage of funds in the Employees Provident Fund (EPF) Account 1 and 2. By increasing the funds in Account 2 from the current 30 per cent to 40 per cent of EPF balances, EPF contributors can have more funds in Account 2 to pay the downpayment of their property purchase, reduce housing loan and pay monthly housing loan instalments, said Leong.