Alpine gears up for third tower project

By SHAREN KAUR
Published in NST on August 17, 2017

ALPINE Return Sdn Bhd, the developer for the RM3 billion Star Residences, hopes to launch the third tower of the project next month or in October despite a slow market.

According to its chief operating officer Alan Koh, the third tower, comprising serviced apartments branded under The Ascott Ltd, will feature 472 units worth around RM1 billion.

The price tag for the units starts from RM1.7 million or between RM2,400 per sq ft (psf) and RM2,500 psf.

Alpine Return is offering the units under a leaseback option scheme with an expected yield of between six and seven per cent per year.

“We think this is a good buy. Our price is affordable considering what other developers around this area are selling their properties, which is from RM2,500 psf to above RM3,000 psf.

“We expect two-thirds of our buyers to take up the scheme and the rest would be buying for their own stay,” he said in an interview.

Alpine Return is a joint-venture company between Symphony Life Bhd and UM Land Bhd.

The company launched the first two towers at end-2014 and last year, both of which are almost fully sold.

The first tower with a gross development value of RM700 million comprises 500 units that were sold from RM1 million to RM1.3 million or between RM1,600 and RM1,700 psf.

The second tower, also comprising 500 units, sold at an average RM2,200 psf or from RM1.3 million to RM1.7 million.

Koh said the buyers were a good mix of locals and foreigners from China, Hong Kong, Singapore, Japan and South Korea.

“The first two towers are fully fitted out, especially the kitchen, bedroom and bathroom. The third tower we are launching is something different. It is fully furnished and we are fitting in The Frame, something new that has been introduced by Samsung,” said Koh.

The Frame’s line-up includes 55-inch and 65-inch models. Instead of fading to black like a conventional TV, The Frame display transforms into bespoke work of arts when powered off.

Through its Art Mode feature, The Frame can display 100 exclusive works of art by 37 renowned designers or precious family photos, all of which can easily be controlled via smartphone application.

“We believe that by offering something exclusive in the development it would garner a lot of interest,” said Koh.

Silver lining in downturn cycle

By SHAREN KAUR
Published in NST on August 17, 2017

DURING a downturn cycle, luxury properties are the first and most to be impacted.

Buyers usually opt for more economical alternatives or just hold on till the market improves, said Sheldon Fernandez, the country manager for PropertyGuru Malaysia.

There has been a slowing down of transactions for properties above the RM1 million mark and a bigger cooling off in interest for properties priced above RM2 million, especially in Zone 1 of the KLCC area.

Zone 1 is where luxury residences like One KL, The Troika, Marc Residences, Park Seven, Stonor Park, The Binjai on the Park, The Oval, Platinum Park and the ongoing The Four Seasons Place, The Ruma Hotel & Residences, 8Kia Peng and Star Residences are located.

According to Fernandez, PropertyGuru observed that property supplies in Kuala Lumpur from the fourth quarter of last year to the first quarter of this year dropped by 21 per cent, but asking prices rose three per cent.

He said despite the uncertainty in the market, there are a number of luxury projects that are doing fairly well in the Kuala Lumpur city centre.

These include YOO8 at 8 Conlay and Pavilion Suites.

“YOO8 is hailed as one of the most expensive properties around Kuala Lumpur. Reaching an astonishing price of RM3,200 per sq ft (psf), many are anticipating eagerly the outcome of this ambitious undertaking,” Fernandez told NST Property.

Pavilion Suites, consisting of a 51-storey serviced residence tower with 383 units (718 to 1,254 sq ft), sells from RM2.5 million per unit.

The residences offer world-class concierge service and personalised assistants to run errands and chores.

KING OF THE HILL

For 8Kia Peng @ KLCC, sales may be slow but developer I-Berhad and its founder Tan Sri Lim Kim Hong are unfazed.

This is a RM1 billion luxury residential project sited on 0.44ha of prime land at the hill of Changkat Kia Peng, off Jalan Kia Peng, in Kuala Lumpur.

It comprises a 50-storey tower with 442 luxury residential units ranging between 716 sq ft and 987 sq ft each.

The units are selling from RM1.6 million, or more than RM2,300 psf, and are currently about 15 per cent sold.

Lim said the company has received offers from foreign investors looking to buy the units en bloc.

“We are still considering the offers. This is a good project and we are in no hurry to sell, but if the price is right then we may consider the offers.

“We are selling the lifestyle experience, the address and its future investment value. These are among the strategies we have for 8Kia Peng,” said Lim, adding that the units are also fully fitted and furnished, thereby making it the first residential development in the KLCC area to offer such ready-to-move-in luxury.

8Kia Peng, which is the first luxury project by I-Berhad, was unveiled on March 14 last year by Prime Minister Datuk Seri Najib Razak.

Construction of the tower is targeted to be completed by end-2019 with the handing-over of keys to buyers expected in early 2020.

8Kia Peng has been dubbed “King of the Hill” for its historical essence and because of the site’s terrain that is higher than others in the area.

Jalan Kia Peng pays tribute to one of the city’s most illustrious figures, Choo Kia Peng (it is a surname shared by the first emperor of Ming Dynasty China Zhang who rebuilt the Great Wall of China along high mountain passes), and was once home to many Malaysian elites, including Malaysia’s founding father Tunku Abdul Rahman.

The higher ground where 8Kia Peng is located gives it the advantage of a commanding skyline of the Kuala Lumpur city centre.

“There is a lot of uncertainty in the market, but if you have a good product, there is really nothing to worry about. The mantra — location, location, location — still stands strong. 8Kia Peng is in a good location. It is tucked in a quiet and private enclave and only within five to 10 minutes’ walk to international five-star hotels like Grand Hyatt and Mandarin Hotel, shopping malls that include Pavilion and Suria KLCC, and the KL Convention Centre.

“Our pricing is also below those of our neighbouring projects. This gives room for our buyers and investors to enjoy price appreciation,” said Lim.

The Four Seasons Place, which is next to KLCC, was selling at an average RM2,950 psf, beating the RM2,900 psf record held by Binjai on The Park.

The Troika, completed in 2010, sold at RM2,500 psf.

The remaining units at The Four Seasons Place are selling above RM3,000 psf.

Malton bullish on Bukit Jalil City mall

By SHAREN KAUR
Published in NST on August 24, 2017

MALAYSIA’S retail sales, which expanded 1.7 per cent last year, continue to retreat amid rising cost of living, recording a 1.2 per cent contraction in the first quarter of this year.

Bukit Jalil City by Malton Bhd

Consumers remained cautious in their spending amid rising cost of living as pointed out by Knight Frank Malaysia in their latest research report: “Real Estate Highlights for 1st Half of 2017.”

The report stated that the Klang Valley retail supply continued to expand rapidly despite growing challenges in the industry.

“The economic recovery with higher gross domestic product posting in the first quarter of this year and the recent strengthening of the local currency may lift consumer sentiment and improve retail sales going forward,” it said.

Malton Bhd, which is developing the RM4 billion Bukit Jalil City project, is quite bullish on the Pavilion Bukit Jalil City mall, which will be managed by Pavilion Kuala Lumpur.

According to Pavilion Kuala Lumpur retail chief executive officer Datuk Joyce Yap, the mall is expected to achieve retail sales turnover of RM1.7 billion in the first 12 months of operation.

Pavilion Kuala Lumpur is expecting 70 to 80 per cent of occupancy when it starts operations in the fourth quarter of 2020.

“We see huge interest with over 1,000 registrations from prospective tenants,” she said recently after the launch of the second tower of The Park 2 serviced apartments at the Bukit Jalil City.

Yap said with a net lettable area of 1.8 million sq ft, Pavilion Bukit Jalil is poised to be a regional mall in term of brands mix, flagship stores and concept.

Bukit Jalil City is a collaboration between Malton and Pavilion Kuala Lumpur.

Launched in 2015, the 20.1ha development will be fully completed in 2021.

Besides the mall, Bukit Jalil City consists of the Signature Shop Offices (112 units), The Park Sky Residence (1,098 serviced apartment units), Park Point Shop Office and The Park 2 (709 units of serviced apartments).

The Park 2, featuring two towers, has an estimated gross development value of RM720 million. There are 385 units in Tower 1 and 324 units in Tower 2.

Tower 1 was launched in March and has recorded a take-up of more than 90 per cent while Tower 2 is about 70 per cent sold.

D'Sara Sentral: Potential hotspot in Sungai Buloh

By SHAREN KAUR
Published in NST on August 24, 2017

MAH Sing Group Bhd’s transit-oriented development D’sara Sentral is set to be a key location in Sungai Buloh due to its direct access to the Kg Selamat mass rapid transit (MRT) station.

The Kg Selamat MRT station is one of 31 stations along the 51km Sungai Buloh-Kajang MRT Line.

Mah Sing recently completed the construction of a covered walkway, which connects the development directly to the MRT station.

The completion of the walkway was very timely as the entire Sungai Buloh-Kajang MRT Line was now fully operational, said Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum.

“We want to bring convenience to our buyers, and the best way to achieve this is by offering a development in a strategic location. The D’sara Sentral is situated right opposite the Kg Selamat MRT station.

“For D’sara Sentral, the focus is on its connectivity and accessibility. We are enhancing the accessibility by developing a covered walkway, which shortens the walking distance to the MRT station.

“With the improved public transport infrastructure, we believe it will further enhance quality of life and the economy of the country,” he said.

D’sara Sentral comprises both residential and commercial components on a 2.63ha site, with a gross development value (GDV) of RM937 million.

It has retail shops, a SoVo (serviced office, virtual office) tower and four blocks of serviced residences.

It is the first project in Sungai Buloh area to feature a dual-key concept for its residential units.

Leong said the retail component, which has 105 units of retail shops, has recorded an 85 per cent take-up and is scheduled for vacant possession (VP) in March next year.

“The VP of the project is timely as businesses in the retail shops will get to enjoy the ready catchment of 4,300 residents within the development as well as the nearby community.

“It is anticipated that D’sara Sentral will be the ‘catalyst of growth’ in the Sungai Buloh area. Upon completion, it will be able to garner a following to the place due to the lack of entertainment centres and activities in the area at the moment.

“It has a potential to become the hotspot for people to gather because of its promising outlook of retail shops as well as convenient accessibility,” he said.

Leong said there would be a further boost of population growth in the area as it is located near to the 936.66ha Kwasa Damansara project, which is currently under development.

Upon completion of the project, 150,000 people are estimated to reside in the area.

China buyers still keen on Malaysia

Published in NST on August 24

OUTBOUND property buying by investors from China surpassed the US$100 billion (RM480 billion) mark last year, according to Juwai.com.

Juwai.com’s estimation for Chinese outbound commercial and residential property investments last year was US$101.4 billion worldwide.

This estimation includes real estate purchases made by corporate investors and individuals, or retail-level investors. It is based on Juwai.com’s own data and information gathered from both industry and governments.

The top five destinations for Chinese investments are the United States, Australia, Hong Kong, Canada and the United Kingdom.

According to the international property portal, despite the “well-publicised issues” at Forest City in Johor, Malaysia is among the countries that would likely win more Chinese property investments this year, including from individual investors.

“Malaysia offers buyers from China very affordable prices, a perceived high quality of life, and a good economic story,” said Juwai.com of operations chief Sue Jong.

The Malaysian property market offers significant growth potential that stems from strong economic fundamentals and demographic factors, offering plenty of opportunities for Chinese investors.

Malaysia also offers a foreign residency scheme called “Malaysia My Second Home” (MM2H), which not only is relatively easier to get into compared with similar schemes elsewhere in the world, but also the cheapest within the region.

ANOTHER GOOD YEAR

Juwai.com is expecting 2017 to be another near-record year for China outbound property investments, although the flow will likely be lower than last year.

It said this year’s investing environment differs in important ways from that of last year, a year in which Chinese corporate and retail-level buyers purchased a record number of overseas properties.

“This year, China’s restrictions on the transfer of capital overseas, foreign buyer restrictions and taxes in some key markets, and the possibility of a slower economy are the three main factors that could reduce investment levels from last year.”

Despite this, Juwai.com said this year might well rank among the top three years ever recorded for China’s outbound property investments.

The portal expects Southeast Asia to be among the strongest performers this year in terms of attracting real estate investments from China.

“Southeast Asian nations are well placed to receive investments through China’s ‘Belt and Road’ initiative,” it said.

Despite tightened money transfer policy effective January 1, Chinese overseas property buyers remain undeterred, it said.

Although the policy tightening was meant to curb the overseas investment binge, Chinese buyer views had shown robust growth for top destinations on Juwai.com in February, such as for Thailand and Malaysia, which grew 89.3 and 69.4 per cent year-on-year (y-o-y), respectively.

Chinese buyer views for Canada, the US, and the UK saw a 47.2, 42.7, and 32.5 per cent y-o-y increase, respectively, during the same period.

Signs of recovery in high-end condo market

Published in NST on August 24, 2017

THERE is hope for recovery in the high-end condominium market after the recent rebound in the country’s economy, coupled with the strengthening of the ringgit.

Knight Frank Malaysia managing director Sarkunan Subramaniam said despite the overall subdued market in the first half of the year, with developers scaling back on new property launches amid weak demand, the situation would continue to improve thanks to the stable employment market and other positive developments.

“Malaysia remains an attractive investment destination in the region, with its stable property market and relatively low entry prices that continue to offer reasonable returns,” he said.

The country’s economy rebounded in the first quarter of the year, with gross domestic product (GDP) growth expanding 5.6 per cent, driven mainly by higher private expenditure.

For the second quarter, growth was stronger at 5.8 per cent.

Due to the strong performance, the government will revise higher the growth outlook for this year than the initial target of 4.3 to 4.8 per cent.

To remain accommodative to economic activity and to support domestic demand, Bank Negara Malaysia has kept its Overnight Policy Rate (OPR) at three per cent.

The ratio of approvals to applications in the first quarter of this year for residential property purchases was lower, at 40.4 per cent, versus 44.3 per cent last year.

Meanwhile, the first quarter saw a marginal increase in the total outstanding/non-performing loans in the housing sector to RM5.54 billion versus RM5.41 billion in the fourth quarter of last year.

Knight Frank Malaysia recently launched its latest research report, “Real Estate Highlights for 1st Half of 2017”, which revealed that the high-end condominium market in Kuala Lumpur remained subdued with less market activity, as potential buyers and investors continued to adopt a “wait- and-see” approach.

Kuala Lumpur recorded lower volume and value of transactions in the condominium/apartment segment, with 1,247 transacted units valued at RM975.88 million in the first quarter of the year, 12.2 per cent and 5.9 per cent lower than the previous quarter.

The cumulative supply of high-end condominiums/residences stood at 47,380 units in the first half, following the completion of three projects contributing 1,333 units.

By the second half of the year, another eight projects, totalling 2,979 units, are scheduled for completion, five of which comprise hotel-branded/managed projects.

With potential purchasers and investors waiting on the sidelines, developers continue to tweak their marketing strategies to sustain earnings through “stock clearing” of completed and ongoing projects.

The report also showed that there were noticeably fewer launches of high-end condominiums/residences during the period under review.

On outlook, the report mentioned that the popularity of dual-key units, offering additional rental income, and smaller-sized units continued as affordability remained a key issue in the domestic housing market.

Developers, meanwhile, are seizing opportunities in the soft market to increase their landbank in strategic Klang Valley locations, such as along the rail transportation routes for transit-oriented developments and affordable housing projects.

Setapak: The next investment gem

By SHAREN KAUR
Published in NST on August 24, 2017

SETAPAK, formerly a tin-mining and rubber plantation area, is one of Kuala Lumpur’s oldest suburbs.

Despite the property market slowdown, it is one of the few areas in Kuala Lumpur that is seeing growth, compared with other locations that are experiencing a plateau.

The earliest settlers of Setapak were the Orang Asli and Minangkabau. Now, Setapak has transformed itself from a sleepy municipal into a thriving area within Greater Kuala Lumpur.

“Setapak is the next investment gem because the infrastructure and facilities are already in place. It is a matured development,” said SkyWorld Development Sdn Bhd founder and group managing director Datuk Ng Thien Phing.

Setapak covers Setapak Jaya, Wangsa Maju, Jalan Gombak and the first few kilometres of Jalan Pahang.

Jalan Genting Kelang is the arterial road of Setapak and also a hotspot when it comes to property investment.

SkyWorld, which is focused on delivering quality, innovative and superior products, is the biggest and most active developer in Jalan Genting Kelang.

In 2014, SkyWorld launched the first phase of its 11.6ha SkyArena mixed-development project, known as Ascenda Residences @ SkyArena. Comprising 650 high-rise units with a gross development value (GDV) of RM399 million, Ascenda Residences is almost fully sold.

In 2015, SkyWorld launched Phase 2, known as Bennington Residences @ SkyArena, featuring 580 high-rise units priced at more than RM584,000 each. The project has a GDV of RM447 million.

As of this month, Bennington Residences is 73 per cent sold and Ng expects the take-up rate to pick up in the second half of this year.

“We believe the market will improve slightly towards the end of this year and demand will start to come in,” he told NST Property.

One of the unique features of SkyArena is the 3.8ha sports complex. It will have an Olympic-sized swimming pool equipped with a diving board, a fitness and dance centre, badminton, squash, indoor futsal, tennis and basketball courts, as well as indoor rock climbing, a football field and field facilities.

There will also be a sports medical centre, childcare centre and cafes.

Ng said Phase 3 and Phase 4 of SkyArena, which would be launched next year onwards, were Curvo Residences and a commercial development.

SkyWorld’s other upcoming launches in Setapak are SkyAwani 3 @ SkySanctuary and The Hub @ SkySanctuary.

SkyAwani 3 @ SkySanctuary will have a GDV of RM570 million. The project with mixed-product offerings was launched last month.

The Hub, slated to be launched in the fourth quarter of this year, would have a GDV of RM100 million and would be mainly commercial, said Ng.

TRANSFORMING CITIES FOR SUSTAINABILITY

SkyWorld, established in 2008, has about 53.8ha of prime land in Kuala Lumpur with a GDV exceeding RM13 billion.

It has chosen areas such as Setapak, Sentul, Setiawangsa, Jalan Ipoh, Bukit Jalil and Taman Desa to undertake mixed-development projects in its drive to help transform cities.

“As Malaysians progress and the city population grows, high-rise living becomes the inevitable choice. All major cities of the world are adopting this urban living solution.

“Our population is growing at around two per cent a year and will reach 38.6 million by 2040; urbanisation is increasing and the demand for urban living solutions will naturally increase.

“We know that by 2020, at least 70 per cent of Malaysia’s population will stay in cities under the urbanisation process. Our focus is to build properties for high-rise living as we believe there will be strong demand for houses in cities. Land is scarce, especially in Kuala Lumpur. The only way forward is to build upwards.

“We are a city developer but we won’t just build anywhere. We will develop properties in areas that are strategic and close to the city centre and is supported by infrastructure such as road and rail.

“Although the market continues to face headwinds, we believe SkyWorld has the right product mix to appeal to the broad market, where there is sustainable demand for properties in good locations which have great accessibility, a good mix of amenities and most importantly, attractive pricing,” said Ng.

MARKET PROSPECTS

Ng said prospects this year were expected to remain challenging but stable.

“We hope it will pick up in the second half of the year. Generally, consumers are satisfied with the gradual but stable appreciation of property prices, particularly in the key urban epicentre of Kuala Lumpur.

“We believe there will still be pockets of opportunity for property developers as there is demand for properties in good locations with great accessibility and attractive pricing, particularly in the Kuala Lumpur region.

“When we plan and launch our developments, we put a lot of thought into all the underlying factors. But more importantly, the winning formula is always location, location and location.”

Ng also said the strong emphasis on SkyWorld’s three key strengths would give the company an edge in marketing its products.

The three key strengths are value creation (strategic location, good quality — Quality Assessment System in Construction and Construction Quality Assessment certified, and potential for appreciation); integrated sky living experience (harmonious living — reminder of kampung life, abundant facilities, green building initiative compliance and city farming); and, innovative concepts and designs (practical layout with big lanai space for family gatherings, storeroom next to car park and garage in front of the unit).

“Before we launch a project, we will always do a feasibility study. Thanks to our dedicated team and support from our business associates, we are able to craft the right product mix and enter the market at the right time to get the right target,” said Ng.

Ekovest plays major role in Setapak transformation

EKOVEST Bhd, which is headquartered in Taman Sri Setapak, is playing a significant role in transforming Setapak and the surrounding neighbourhood.

The developer is involved in the rehabilitation of Sungai Gombak and the KL River City project.

Ekovest will rejuvenate and transform a 3km stretch of Sungai Gombak into a vibrant riverfront development by 2020.

It will be revitalised to match some of the world’s landmarks, such as Australia’s Yarra River and San Antonio River Walk in the United States.

The KL River City project will have several components for business, leisure, shopping, living, hospitality and wellness.

According to Ekovest’s website, more than 129.5ha of river-fronting land will be transformed in one of Klang Valley’s most ambitious urban rejuvenation projects.

KL River City will feature several developments, namely EkoGateway, EkoPark Place, EkoAvenue, EkoTitiwangsa and EkoQuay.

These projects are expected to generate a gross development value of RM16 billion collectively.

EkoQuay, which is a mixed-development on the western side of Jalan Pahang, will be launched next year.

Ekovest said in April its unit, Ekovest Properties Sdn Bhd, had sealed an agreement to buy two adjoining parcels of land from Ekovest’s substantial shareholder, Lim Seong Hai Holdings Sdn Bhd, for RM26.77 million for the proposed development.

The project, with a gross development cost of RM293.8 million, is expected to take four years to complete. It will feature serviced apartments and retail shops as well as commercial blocks.

Upon completion, there will be seamless integration of the transport system (Duta-Ulu Klang Expressway, mass rapid transit, light rail transit and water taxi), in addition to the serene landscape and self-sustaining developments.

Rail link boost for Sentul projects

By Sharen Kaur

Published in NST Property - August 10, 2017

EXCITEMENT is building in Sentul on news of a faster rail link to the Kuala Lumpur International Airport (KLIA) in Sepang and onwards to Singapore when the high-speed rail (HSR) project is fully completed.
Malaysia is also investing billions of ringgit to develop an integrated rail network in the Klang Valley comprising the light rail transit (LRT), KTM Komuter, KL Monorail, Express Rail Link (ERL) and the Mass Rapid Transit (MRT).
Combined, they are Malaysia’s largest infrastructure project, which is designed to enhance the city’s livability and connectivity.

Sentul is one of many areas in the Klang Valley which will benefit from the rail development plan.
Two property projects — Sentul East and Sentul West, developed by YTL Land & Development Bhd — will directly benefit from the existing rail lines and will be riding on new developments, such as the MRT, for further growth.
Serving both projects are the KTM Komuter and two LRT lines — the Sentul Timur-Putra Heights route on the Sri Petaling Line and the Sentul Timur-Ampang route on the Ampang Line.
Three stations — the Sentul KTM station, and the Sentul Timur and Sentul LRT stations — are nestled strategically in the heart of Sentul East.
YTL Land executive director Datuk Yeoh Seok Kian said Sentul is four stations away from the KL Sentral transport hub in Brickfields via KTM Komuter and enjoys direct connectivity with the ERL’s KLIA Ekspress route to KLIA.
He said all three train lines (KTM Komuter and the two LRT lines) from Sentul are also connected to MRT Line 1, with interchange stations at various points.
“This further enhances Sentul’s accessibility by rail, making it even more popular among property buyers and investors,” Yeoh told NST Property in an interview.
Sentul has been earmarked as a hotspot to benefit from the MRT project.
MRT Corp Sdn Bhd has fully completed MRT Line 1, which runs from Sungai Buloh to Kajang.
By 2022, MRT Line 2 (Sungai Buloh-Serdang-Putrajaya) will begin operations, and Sentul is one of many areas that are expected to benefit.
MRT Line 2 starts from Sungai Buloh, passes through Sentul and Bandar Malaysia before terminating at Putrajaya.
Bandar Malaysia is Malaysia’s first integrated transit-oriented development and the Kuala Lumpur terminal of the KL-Singapore HSR.
“We have a MRT station at both the Sentul East and Sentul West projects. Station 11 in Jalan Ipoh is located close to The Maple at Sentul West, while Station 12, which is an underground station, is situated before the entrance to Jalan Strachan leading into Sentul East.
“MRT Line 2, which is currently under construction has added two more stations for Sentul, adding more value to our developments.
“With the current KTM Komuter rail service, you will be able to reach KLIA via KL Sentral from the station in Sentul East in an hour. In future, you will be able to reach Singapore via the HSR station in Bandar Malaysia in about two hours,” he said.
Yeoh said it is highly anticipated that Sentul would benefit from the future MRT Line 3, or the Circle Line.
MRT Line 3 is the final line for the MRT project and is currently in the planning stages .

Saving the past for future generation
Sentul has been a railway hotspot for a very long time. The town was founded in the late 1800s when the first Malayan railway line opened between Taiping, Perak and Port Weld. The rail line was gradually expanded to connect the north and south of Malaya.
The town claimed the honour of establishing Sentul Works in the early 1900s, one of the finest integrated engineering railway workshops in the country, helping to elevate Sentul’s prominence.
The diminishing economic and social dependence on the railway line in the 1960s saw the decline of the once-prosperous railway town.
Several decades later, YTL Land saw an opportunity in Sentul and embarked on an urban renewal initiative, today known as Sentul East and Sentul West.
Yeoh said the majority of urban redevelopment projects are focused on decentralisation, and relocating whole communities. Sentul, however, was revived to preserve its history, culture and heritage.
“By adopting intelligent solutions under a master plan, Sentul was resculpted to re-capture its colours, soul and spirit. Not all has been lost, as the master plan deliberately retains its downtown culture and heritage, while providing an opportunity for urbanites to embrace green living within the city,” he said.
“Old railway warehouses and workshops that were once part of the Sentul Railway Workshops succumbed to disrepair as rail transport declined in the 1960s.
“As these buildings can no longer be used for their original purpose, a new use through adaptation is one way to preserve their significance and heritage.
“The creative adaptation of the old and original is the principle behind YTL Land’s successful adaptive reuse projects in Sentul,” added Yeoh.
The strategy for the development of Sentul East and Sentul West, which combined covers 118.97ha prime freehold land, was catalysed when the site was effectively split in half by the existing Sentul KTM Komuter Station and its tracks.

Hence, the master plan was developed by characterising the two halves differently, forming unique personalities in Sentul West and Sentul East.
Sentul West, comprising 75.27ha, celebrates the outdoors with a haven of greenery intermingling with exclusive residences, offices and shops amidst lakes bordering a 14.16ha private gated park.
Sentul East, with 43.7ha, sets the tone for modern downtown living, combining the rawness of Sentul with the grace of inner city courtyard tenements.
Yeoh said the aim for the Sentul East and Sentul West projects was to keep both the developments focused on art, design and heritage.

“These are not like other developments, which focus on building commercial and residential properties.
“We have the Kuala Lumpur Performing Arts Centre (KLPAC) now and in future, we are building an art gallery, a mall and possibly a university that focuses on art, design and heritage. We want to harness on the heritage,” he said.

Future buildups in Sentul East
Yeoh said there are a few projects that have been planned for the development of Sentul East.
YTL Land is introducing The Fennel, a 38-storey residential tower.
Complementing the curves of The Capers, an earlier development in Sentul East, The Fennel carves an edge with its sharp-angled iconic towers piercing the sky.

Yeoh said the building design took imagination to a new level, sculpting the sky through an interplay of clean lines and edges, adding further energy and vitality to the facade.
Previous projects by YTL Land in Sentul East include The Maple, which is the only residence in Kuala Lumpur with a private gated park. The Maple was completed in 2006.
Forthcoming developments include d2 and d5. d2 exudes a rustic charm with its Corten exterior cladding. It will feature individual office blocks linked by landscaped courtyards, terraces and corridors. The estimated built-up area is 320,000 sq ft. d5, a commercial development with a built-up area of 340,000 sq ft, will boast an ingenious design comprising six pods encased in steel that are connected by sky bridges while being open to the elements.

Fajarbaru makes foray with Rica Residence

By Sharen Kaur

Published in NST Property - August 10, 2017
FAJARBARU Builder Group Bhd chairman Datuk Low Keng Kok says Sentul has everything from good rail and road networks to public amenities.
“Sentul has everything. Apart from good food, Sentul is so near to the Kuala Lumpur City Centre and Putra World Trade Centre. It is also well served by hospitals, as well as has good connectivity by rail and road.
“There is pent-up demand for high-rise residential units. Taking all these factors into consideration, we decided to make use of our land in Sentul and launch our maiden property project in Malaysia, known as Rica Residence @ Sentul.

Fajarbaru Builder Group Bhd chairman Datuk Low Keng Kok

“We are pricing our properties lower than what other developers in this neighbourhood are selling. The average price for new residential properties in this area is above RM700 per sq ft. The average price per unit at Rica Residence @ Sentul is RM678 per sq ft.
“This gives house buyers and investors an opportunity to enjoy price appreciation after they collect their keys,” he told NST Property at the launch of Rica Residence @ Sentul in Kuala Lumpur recently.
Rica Residence @ Sentul is located on a 0.86ha site 150m from a Mass Rapid Transit (MRT) station that is under construction.

Fajarbaru bought the land from a private owner six years ago at RM235 per sq ft.
Low said the company might still focus on developments in Sentul, but added that it had become tougher and more expensive to get good land in the area.
Recently, Sunsuria Bhd acquired a parcel of land near Rica Residence @ Sentul for RM280 per sq ft.
Rica Residence @ Sentul comprises a 39-storey tower with 473 serviced apartments ranging from 657 to 1,283 sq ft each.
Low said the company sold 70 per cent of its units over eight months and expected to sell the rest by the first half of next year.
“We believe we can launch a property project anytime because demand is always there, despite challenging times. The country’s gross domestic product growth is still positive and people are still earning.
“Of course, the over saturation of the property market is a concern, but there is always a need for housing, so we are quite bullish on the market moving forward,” he said.

UEM Sunrise ups presence with Mayfair

By Sharen Kaur

Published in NST Property - August 10, 2017

IN less than three years, UEM Sunrise Bhd has launched three luxury residential projects in Melbourne, Australia, with a combined gross development value (GDV) of almost RM5 billion.

Driving UEM Sunrise to Australia are the country’s low interest rates, attractive yields and a favourable exchange rate, coupled with strong demand for luxury housing, said its managing director and chief executive officer Anwar Syahrin Abdul Ajib.

A fourth project can be expected next year as the luxury developer narrows its search on some parcels of land in Melbourne and Sydney, he said at the launch of Mayfair, the company’s third project in Melbourne.

UEM Sunrise’s maiden venture in the Australian city, namely Aurora Melbourne Central, consisting of 92-storey high-rise mixed-use development, was in 2014 and is completely sold.

The second project, Conservatory, comprising 446 apartments in a 42-storey tower, was launched in 2015 and is 93 per cent sold.

Its chief operating officer of commercial, Raymond Cheah, said it was quite magical that the company was able to launch a few projects in Australia over three years.

“We completed the land transaction for Mayfair in July 2016, and a year later we are launching. It is just like the Aurora project. The planning approval in Australia is very structured and that is why we are able to buy land and launch a year later,” Cheah told NST Property in an interview.

Mayfair is expected to be completed by the second quarter of 2021.

He said now was the perfect time to launch the project.

“This product is not affected by the current conditions in the market. It is different. It is not an investment-grade product, but is meant for owner-occupiers.

“Buyers are either Australian citizens or have PR (permanent resident) status, or foreigners who intend to migrate to the country ... So, they are not subjected to any new ruling in Australia like the 2017 stamp duty or foreign duty. That is the beauty of this project,” said Cheah.

Mayfair, with a GDV of RM1.1 billion, is located at 412 St Kilda Road, Melbourne’s most-eminent boulevard.

The building, which is designed by well-known Zaha Hadid Architects, pushes the boundaries in terms of ultra-luxurious living, offering bespoke experiences for sophisticated apartment dwellers with private lift lobbies and a car valet system, among others.

It has 158 bespoke residences of one- to five-bedrooms, ranging from 750 to 6,000 sq ft with prices starting at RM2.44 million.

The most expensive are the penthouses, branded as the Zaha Signature Suites, which sell at RM43 million.

“Mayfair offers a new lifestyle never before seen in Melbourne. We invited Zaha Hadid Architects to design something that showcases Australia. Through its design we are selling unrivalled quality of interior.

“We paid elaborate attention on the space planning. Even the simplest features, like the his-and-hers side of the walk-in-robe and laundry room, are purposefully designed.

“The carefully-considered and capacious floor spaces offer ultimate comfort and enjoyment to the residents,” said Cheah.

Mayfair will be marketed in different geographical areas, such as Malaysia, Japan, Singapore, China and Australia, he said, adding that 15 to 20 per cent of its units have been allocated for Malaysian buyers.

Meanwhile, Zaha Hadid Architects principal and director Patrik Schumacher said the fluidity within the beautiful Australian landscape has defined the geometries of the building’s sculpted facade, which are carried through to the interiors and celebrate the finest attention to detail.

He added that the experience starts from the main entrance and continues right through every apartment — each with own unique views.

MRCB plans long-term stay in Australia

By SHAREN KAUR
Published in NST Property, August 3, 2017

MALAYSIAN Resources Corp Bhd (MRCB) is beefing up its operations in Australia as it aims to be a long-term player in the housing market there.

1060 Carnegie

The group is specifically targeting the middle- to high-income market in Melbourne and Sydney, according to Alex Lim, director for MRCB Land (Australia) Pte Ltd.

The Australian venture would help MRCB diversify its earnings, Lim told NST Property.

MRCB made inroads into Australia in 2009 via its wholly owned unit, Bitar Enterprises Sdn Bhd, which acquired a 70 per cent equity interest in Australian firm, Yes 88 Pty Ltd.

Yes 88 owns 5,025 sq m of land in Burwood, located 15km from Melbourne’s city centre.

In 2011, MRCB announced that it would develop the site and another location in Carnegie.

The group launched in 2014 its first project in Australia — Easton Burwood, consisting of only 126 units. The units were sold out in less than eight months at prices of between A$330,000 and A$800,000 (RM1.13 million and RM2.74 million) each.

The A$65 million Easton Burwood project is now complete.

It offers one-, two- or three-bedroom apartments spread across four blocks of five-storey buildings.

“Easton Burwood has the right mix of residential amenities, transport connections via rail and road, and other facilities. It is close to schools and Deakin University, which is attractive to owner occupiers, renters and investors,” said Lim.

He said the majority of buyers comprised Australians, Singaporeans, Chinese and Indonesians. Malaysians accounted for 15 per cent of the sales.

MRCB is bullish on its second venture in Australia, following the success of Easton Burwood, said Lim.

The group is developing 1060 Carnegie in one of Melbourne’s most sought-after established suburbs, Carnegie.

Carnegie is an established residential location in south-east Melbourne, 12km from the city’s central business district (CBD).

Lim said 1060 Carnegie has a gross development value (GDV) of A$105 million.

The 10-storey block has a total of 173 well-apportioned apartment units, with sizes ranging from 500 sq ft (one bedroom) to about 1,000 sq ft (three bedroom).

The selling price for the smallest units (500 sq ft) starts from A$430,000 to A$480,000 while the two-bedroom units (800 sq ft) are priced between A$580,000 and A$725,000.

Lim said the three-bedroom units (about 1,000 sq ft) were priced from A$730,000 each.

“We have sold more than 70 per cent of 1060 Carnegie with only 30 units remaining. The bulk of the buyers were also Australians, Singaporeans, Chinese, Indonesians and Malaysians.

“It took us less than six months to achieve 70 per cent sales. So, we are quite confident that we will be able to sell the rest within the next six to eight months,” he said.

Lim added that construction for 1060 Carnegie would start at the end of this year.

The project is expected to be completed in two years.

Developer’s foresight

Malaysian developers, including MRCB, are heading to Australia because it is a stable economy, said Lim.

“Australia is also known for its wide range of international universities which is why you have a lot of people, including Malaysians, buying properties there, especially in Melbourne.

“Demand for housing is increasing in tandem with population growth. The population in Carnegie has grown 26 per cent over the past 15 years to roughly 19,000 people in 2016,” he said.

According to Australian Bureau of Statistics, this figure is expected to increase by 19 per cent over the next 15 years.

Lim said the vision of moving into Australia came from MRCB group managing director Tan Sri Mohamad Salim Fateh Din.

“He sees the potential and numbers and finds it suitable to venture into Australia. There is no right or wrong timing. It is just his business acumen. If he has a good feeling about something, he will do it.

“Tan Sri Salim has the foresight for choosing the sites. We bought two sites in Melbourne a few years ago and both are bearing fruit now,” he added.

MRT line boosts property prices along rail corridor

By Sharen Kaur and K. Begum
Published in NST Property, July 27, 2017

The development of rail lines have a huge impact on real estate prices along its corridor and it also improves the standard of living of a large segment of urban population.

Prasarana Malaysia Bhd president and group chief executive officer Datuk Seri Azmi Abdul Aziz said rail projects like the Klang Valley Mass Rapid Transit (MRT) line were a catalyst for sustainable development and spurring economic activities.

Prasarana Malaysia Bhd president and group chief executive officer Datuk Seri Azmi Abdul Aziz 

"Because of the economic spillover from the MRT development, it will generate appreciation to property value. Property prices are expected to appreciate by between 10 and 20 per cent because of the MRT project. In fact, some areas are already seeing their property value go up," he said during a media walkabout here last week.

Azmi said a rail line directly impacted real estate through increase in land value, land use and densification along the corridor.

He expects residential and commercial (comprising offices, retail and hotels) areas to benefit from better accessibility and connectivity.

"Rail projects tend to create new jobs and business opportunities. The completion of the Sungai-Buloh Kajang MRT Line 1 will draw buyers to areas closer to the MRT stations. There are 31 stations along MRT Line 1 so you can imagine the kind of growth would take place.

"What was not visible before, will now become more visible and both developers and house buyers will go there," he said.

Property projects to spur traffic growth on the MRT

The second phase of MRT Line 1, from Semantan station to Kajang station, started operating last Monday.

The first phase, from Sungai Buloh station to Semantan station, started in December last year.

Azmi said MRT Line 1 will add value to several ongoing developments in Kuala Lumpur, such as the Tun Razak Exchange, Bandar Malaysia, KL118 and the KL Sentral transport hub in Brickfields.

The MRT line will integrate with the KTM commuter, Light Rail Transit and monorail systems at the KL Sentral.

In the future, MRT will be linked to the planned high-speed rail (HSR) system, connecting Kuala Lumpur (via Bandar Malaysia) and Singapore (via Jurong East).

"If you are travelling in the MRT, you can see several developments being carried out along the corridors. There are also some plots of land ready for redevelopment and we can expect developers to start building there. Some may have been waiting for the MRT Line 1 to complete before their launch.

"We expect all existing and new developments will help to increase traffic on the MRT. Since Phase 1 opened to the public, people have been using the MRT for all sorts of reasons from attending meetings, heading to work, shopping or just to have lunch somewhere," said Azmi.

Riding on MRT spillover effects

THE Klang Valley Mass Rapid Transit (MRT) is a long-term game changer to boost the country’s economy.

The whole MRT system (MRT 1, MRT 2 and the Circle Line), will create economic spillover activities and raise job opportunities, which in turn, will raise household income.

“The MRT will increase activities along the corridor. With the completion of the MRT Line 1, we can expect areas like Kajang and Sungai Buloh to benefit a lot with the existence of a station there. There will be new developments,” said analysts.

Construction work in Pusat Bandar Damansara

Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum said the successful delivery of the MRT project marks another milestone of the country’s grand plan to move towards a developed nation status.

Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum

Leong said the company’s projects such as D’sara Sentral, Sungai Buloh and the upcoming M Vertica in Cheras, would get to enjoy the full MRT Line 1 service.

D’sara Sentral is a transit-oriented development that is situated right opposite Kampung Selamat MRT station.

Leong said the covered walkway with direct access to MRT station is slated for completion next month.

M Vertica is situated only 600m or seven minutes walk from the Maluri MRT and LRT interchange and is only 800m or 10 minutes walk from Taman Pertama MRT Station.

M Vertica

In Cyberjaya, Mah Sing’s Garden Residence is located 2km from Cyberjaya North MRT station and Cyberjaya City Centre MRT station. There is also an ERL station and Putrajaya Sentral located close to the project, allowing residents an easy access to KLIA, KLIA 2 as well as KL Sentral.

“Ever since the launch of our D’sara Sentral project, we have been looking forward to the completion of the MRT Line 1. We laud the government’s initiative and effort in improving the convenience of public transportation and we hope the improved infrastructure will further enhance the quality of life and economy of the country,” said Leong.

Challenging market: Penang developers step up on goodies to attract buyers

By SHAREN KAUR
Published in NST Property, July 27, 2017

Property developers in Penang are offering various packages to entice the market into buying properties launched last year but could not sell because of cooling measures and a subdued housing market.

PA International Property Consultants (Penang) Sdn Bhd executive director Loo Choo Beng said developers were now offering attractive packages to enhance their properties.

PA International Property Consultants (Penang) Sdn Bhd executive director Loo Choo Beng 

They include giving potential buyers rebates and freebies, as well as offering them low down-payment schemes and interior design packages.

Some developers, such as SP Setia Bhd, are also offering differential sum loan schemes.

SP Setia’s differential sum loan scheme, Setia Express Advance Loan (SEAL), is only available for its completed projects, which includes Pearl Villas @ Setia Pearl Island, Penang.

SEAL’s three-year tenure would enable buyers to have more options to arrange for alternative financing, like accessing their Employees Provident Fund savings, or unlocking other assets to fund the differential sum.

The scheme offers interest rates as low as 5.5 per cent per year, and up to 30 per cent of the intended property purchase price.

“Penang’s property market remained soft last year. Cautious spending behaviour and competition with newly completed properties are part of the reasons for the slow sales performance,” he told NST Property.

According to the Malaysian Property Market Report released in April by the Valuation and Property Services Department, developers launched 52,713 units last year but sold only 16,532 units, or 31.4 per cent.

Penang’s newly-launched houses performed the worst last year in terms of sales. Developers sold only 9.9 per cent, or 561 units, of the 5,646 units launched in the market.

Reasons for this included high loan application rejections, rising cost of living, the depreciating ringgit versus major currencies and weak consumer sentiment.

Loo said based on the analysis shown above, the low sales performance of newly-launched projects could also be attributed to the zero take-up rate of the affordable housing sub-sector.

“Our observation revealed that the demand for affordable housing in Penang is still encouraging. There might be a reason that the process of taking up affordable housing units takes time, as it needs state council approval.

“Even though the units have been booked by the purchasers, it will only be considered sold upon receiving approval from the state council,” said Loo.

Loo said as housing was a basic need, the demand would continue to grow in line with population growth.

He said given the current soft market, there might be a group of people whose purchasing ability were affected by the slowing economy, but there was also a group of consumers with stable incomes and were still pursuing their dreams of owning property.

“However, the right pricing and type of property should be studied properly in order to meet the market’s needs,” he said.

Projects that may project a more positive outlook this year and the next include units priced below RM1 million.

There are several developers who are actively pursuing developments in the state. They include Ideal Property, SP Setia, Eco World, Hunza, Aspen, IJM Land, Mah Sing and Tambun Indah.

Mah Sing recently said that it was buying 4.4ha of freehold land in Bukit Mertajam, Penang, for RM43.8 million.

The land will be developed into an industrial business park with a gross development value of RM150 million. The project is scheduled for a preview in the third quarter of this year and is to be developed over three to four years.

2017 MARKET PERFORMANCE

Loo said property market activity this year might have slowed down, but was still stable and healthy.

He said cautious sentiment or perception would persist due to the slowing economy, which may make 2017 a challenging year.

“The property market in Penang is experiencing a period of consolidation and price correction in terms of rentals and sales.

“We welcome a pricing correction in the high-end segment, as prices in the high-end category have peaked. The price correction process will bring a new equilibrium between supply and demand in the market.

“You may expect some good buying opportunities during this price correction period, as some desperate sellers in the secondary market may be willing to dispose of their property at the discounted price.

“However, personal affordability is a major factor to be taken into account before committing into any loan financing for property,” said Loo.

Loo said the industrial and office property sub-sectors were expected to see stable and positive growth due to the state’s efforts in seeking convergence between the manufacturing and services sectors.

He said incoming supply of high-rise residential property was expected to exert more pressure on occupancy rates.

The growth of Meetings, Incentives, Conferences and Events (MICE) industry would also be an attractive proposition for the hospitality property sub-sector, he said.

“The mainland is going through massive transformation, with Butterworth expected to be another upcoming hotspot after Batu Kawan.

“Even though the Penang Transport Master Plan (PTMP) is still uncertain, thus not having any material effect on the property market, public transport is a must in Penang in order to maintain the livability of the city,” he said.

Product, place and time must be right

PROPERTY developers who build the right product in the right location and with the right pricing will do well, as it will attract people to buy their products.

YTL Land & Development Bhd executive director Datuk Yeoh Seok Kian said a product with the right strategy would do well no matter what the market conditions were.

Shorefront

“There is no such thing as no demand. It is a matter of pricing and location. If you price it correctly and in the right location, then people will come.

“Even now, in a recession period, if you price it correctly there will be buyers. I have gone through three to four cycles and I have seen the highs and lows.

“In the 1980s, we were trying to sell low-cost houses in Ipoh at RM22,000 but nobody wanted to buy. We decided to restrategise and buy land which we thought was strategic, such as Sentul and Jalan Pantai Dalam near Kampung Kerinchi (in Kuala Lumpur). In the early days, no developers wanted to go there, but look at the two areas now,” said Yeoh in an interview with NST Property.

YTL Land & Development Bhd executive director Datuk Yeoh Seok Kian 

Yeoh thinks there are two areas in Malaysia which will continue to grow: the Klang Valley and Penang.

According to him, these are the two big markets which should not be avoided.

Yeoh said YTL Land would continue to develop its Sentul East and Sentul West projects as well as the Pantai Hill Park development, while in Penang, the focus would be to develop land on the island.

“We notice that a lot of Penangites like to live on the island. They are the ones who buy property in Nibong Tebal, Butterworth and our Shorefront project.

“There are few pockets of land, and people are asking for high prices (for them). That is why we are taking a longer time to land a deal. If prices are too high, it means we have to sell at higher prices.

“We are eyeing land in Batu Kawan as there is a new linkage, as well as some universities,” said Yeoh.

Shorefront is YTL Land’s maiden project in Penang. The RM330 million project, comprising 115 units in three blocks, is located adjacent to the E&O Hotel and is fully sold.

The average selling price was RM2,000 per sq ft.

Strategies to grow Berjaya Corp

By SHAREN KAUR
Published in NST Business, August 2, 2017

BERJAYA Corp Bhd founder Tan Sri Vincent Tan remains cautiously optimistic about the economy and plans to expand the group by looking at areas that do not need massive capital investment.

Berjaya Corp Bhd founder Tan Sri Vincent Tan 

Tan, the country’s 20th richest man with a net worth of US$820 million (RM3.5 billion) as at January 3 based on Forbes ranking, said the group would not downsize its operations although the market landscape was fraught with uncertainties.

The 65-year-old, who owns three football clubs (Cardiff City Football Club, Sarajevo Football Club and Belgium’s Kortrijk Voetbalt VBA) and co-owns the Los Angeles Football Club, is planning to bring in partners from overseas for some of the group’s businesses by way of partnership or collaboration.

“We are consolidating the group’s operations in Malaysia and overseas. Times are difficult now but they are not bad. Malaysia is still doing very well. The government is doing a lot to pump prime the economy and create opportunities for more employment. This is good for Malaysia.

“I think the private sector and the government should continue to work together. That would be the right thing to do in order to overcome current challenges,” Tan told NST Business at a dinner attended by Da Ai TV Taiwan and Taiwan Buddhist Tzu-Chi Foundation Malaysia, here, recently.

Tan said Berjaya Corp’s focus was to do better year-on-year despite market challenges.

Berjaya Corp returned to the black in the financial year ended April 30, recording a pre-tax profit of RM626.17 million versus RM293.74 million in the same period last year.

Revenue increased by 1.3 per cent to RM9.14 billion from RM9.02 billion a year ago.

The major contributor to the pre-tax profit was the property investment and development segment, with higher sales mainly from property projects in China and Japan. Other contributors were the hotels, resorts and recreation, and food and beverage segments.

Berjaya Corp is also involved in gaming and lottery management, financial services, motor trading and distribution, education, consumer market and clean technology.

Tan said to achieve better performance, Berjaya Corp planned to carry out acquisitions and sell some of its assets to bring in capital for expansion.

“Although we do acquire new businesses, we also dispose of assets if the price is reasonable.”