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.

2018 Budget: 'Keys to home ownership'

For NST Property - October 12, 2017 

Any houses priced above RM700,000 has been hardest to sell and this has resulted in the current residential oversupply being “the longest” ever.

The Valuation & Property Services Department’s (JPPH) Property Market Report 2016 showed that there were 14,792 local overhang units worth RM8.56 billion last year, up by 43.8 per cent in volume and 70.7 per cent in value, against 2015.

Stringent lending rules is a major factor contributing to the rise in unsold stocks in the property market.

House buyers have been struggling to obtain loans because of measures introduced by banks since 2010 to curb excessive speculative activities in the housing market and prevent over-borrowing.

In a poll of 1,655 respondents based on the House Buyers’ Survey 2017 by Real Estate And Housing Developers’ Association Malaysia (Rehda) announced in April, 56 per cent said they were looking to own a home this year, mainly within the KLCC area and Kuala Lumpur city centre.

About 38 per cent of them are first-time house buyers, 30 per cent repeat buyers, 23 per cent investors, six per cent expatriates and three per cent tenants.

However, stringent lending rules continue to be a major deterrent, especially for first-time home buyers.

But there could be good news for them in the forthcoming 2018 Budget as Rehda is proposing several measures to the government to help first-time house buyers to own a property.

Firstly, the association is urging the government to waive Goods and Services Tax (GST) on construction material for development of affordable housing priced at RM500,000 and below.

Its president Datuk Seri FD Iskandar said at a luncheon on REHDA’s 2018 Budget Wishlist, here, last month that by waiving the GST it would seriously help first-time home buyers.

More developers will also come forward to build affordable houses, he said.

The GST was implemented on April 1 2015 and this was the first time that Rehda had proposed for a GST exemption on construction materials for houses priced RM500,000 and below.

FD Iskandar said while Rehda supported the introduction of GST to make taxation more comprehensive, efficient, transparent and business-friendly, the imposition of the tax has resulted in rising input prices.

He said as residential properties are categorised as an exempt supply, the disallowance of input tax credit has added on to the development cost.

Meanwhile, Rehda is also proposing to the government to introduce the Home Ownership Assistance Programme (HOAP), which he believes would help address the affordability issue faced by the first- time buyers.

Under this programme, developers will include the interest of the housing loan disbursed during the construction period.

The main objective of the proposal is to assist buyers at the early stage of purchase and ease their burden of having to service both their house rental and the loan interest during the construction period.

The HOAP is also aimed at existing homeowners who have sold their previous homes to upgrade and/or relocate.

This is for houses priced RM500,000 and below.

The Rehda wishlist also includes:

Employees Provident Fund (EPF) withdrawal

• Disbursement of 10 per cent downpayment from EPF to be channelled directly from the pension fund to the developer concerned without buyers having to pay the amount from their own savings or other sources.

• The percentage of contribution credited to EPF Account II to be raised to 50 per cent, from the current 30 per cent.

Stamp duty exemption

• The stamp duty waiver to be expanded to more properties of higher threshold, but under the affordable housing.

• The stamp duty exemption to be continued beyond December next year.

Special end-financing scheme

• To include private developers in the scheme or accord them other similar schemes towards realising the government’s objective of encouraging homeownership among the rakyat.

• Introduction of a special end-financing scheme for PR1MA houses during 2018 Budget which provides buyers with end-financing up to 90 per cent to 100 per cent.

Solicitors’ Remuneration (Amendement) Order 2017

• Residential properties with selling price of up to RM500,000 be given special consideration and the legal fee structure applicable to such properties be reverted to the old structure.

Increase affordable housing supply

• To relief developers from the role of providing low-cost housing. The role should be reverted back to the government through one centralised body with a statutory power to build such houses.

• Government to identify and utilise government and state-owned land for the provision of affordable housing, especially if such land is not used optimally.

• Focus on building affordable housing by converting low-cost quota, which is low in demand to affordable housing with higher demand.

• Review planning requirements in order to facilitate and encourage supply of more of houses. The current planning policy for residential development based on density should be changed to plot ratio to enable sub-division of floor area into smaller units, thus increasing supply.

Cost of doing business

• To review and lower down or abolish unnecessary charges or requirements with the objective of reducing the costs of doing business so that savings can be passed on to house buyers in the form of more affordable housing.

• Private utility companies should not impose capital contribution charges on developers. Developers are already required to lay infrastructure in their development projects.

RM1 million threshold price for foreign property purchase

• A three-tiered pricing threshold approach to promote foreign investments in Malaysian property without compromising the interest of local buyers.

• The three-tier pricing threshold should be adopted according to the state and degree of urbanisation of the related property as highly urbanised areas (Kuala Lumpur), urbanised areas (Selangor, Melaka, Negri Sembilan, Johor, Penang) and less urbanised areas (Perlis, Kedah, Perak, Pahang, Kelantan, Terengganu, Sabah, Sarawak).

• Foreign acquisition threshold to be relaxed for completed properties which remained unsold six months after the issuance of Certificate of Completion and Compliance.

Revision of the Bumiputra quota policy

• The Bumiputra quota should be standardised across all states and should be capped at 30 per cent.

• Bumiputra quota release mechanism should be standardised, structured and transparent across all states. The automatic release of unsold Bumiputra units to the open market shall be:

a) 10 per cent to be released after six months from the launching date.

b) 10 per cent to be released after 12 months.

c) Balance 10 per cent to be released upon completion.

• Bumiputra discount rate should be standardised and capped at three to five per cent for housing and five to seven per cent for commercial properties and should not be applicable to high-end properties.

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HSR stop in Forest City a possibility

By SHAREN KAUR - For NST,  October 13, 2017 

KUALA LUMPUR: There could be a change in the alignment of the High-Speed Rail (HSR) project linking Kuala Lumpur and Singapore due to a request from the private sector to divert the line to Forest City in Johor.

It is understood that Hong Kong-listed property developer Country Garden Holdings Co Ltd is courting the government to build a HSR station in Forest City.

An artist’s impression of Country Garden Pacificview. Could there be a High-Speed Rail (HSR) station in Forest City? Hong Kong-listed property developer Country Garden Holdings Co Ltd is courting the government to build a station there. Pic courtesy Country Garden Pacificview.

Country Garden has made requests to the authorities and stakeholders.

“Discussions are ongoing between the authorities and stakeholders. They are talking about the additional cost of adding a station in Forest City.

“The discussions will involve the Land Public Transport Commission as it will need a feasibility study. Whether it will be a revised proposal for the HSR project, will depend on the outcome of discussions,” said a source.

The source said Country Garden planned points of entry from Malaysia and Singapore, with a ferry and light rail transit network at the centre of it all.

The possible HSR station in Forest City would be the new transport hub for Johor Baru, similar to KL Sentral in Brickfields, the source told the New Straits Times.

The governments of Singapore and Malaysia signed a bilateral agreement on Dec 13 to embark on the HSR project. Operations are expected to begin by Dec 31, 2026.

The project will include seven stations in Malaysia — Bandar Malaysia, Putrajaya, Seremban, Melaka, Muar, Batu Pahat and Iskandar Puteri — before reaching its last destination in Jurong East, Singapore.

In the current alignment, the train will depart Iskandar Puteri and go towards the second causeway, then cross an overhead bridge into Singapore.

“The same alignment can still be used, but the path may be diverted to Forest City before heading to the (second) causeway. The distance could be longer and will cost more for Malaysia. Singapore, however, will not be affected by this move,” said the source.

The 350km bullet train line (335km in Malaysia) will cut travel time from KL to the Lion City to 90 minutes.

The connectivity will allow businesses to be more productive, while the public can enjoy faster travel and a comfortable ride from KL to Singapore.

The source said the proposed HSR station in Forest City would cater to tourists and the 700,000 people expected to live in the posh residential and commercial enclave once the project was completed in 20 years.

Residents and visitors will have access to luxury lifestyle amenities, including hotels, retail centres, parks and leisure attractions.

“Country Garden expects Forest City to fuel Johor’s growth and the economy in Malaysia and Singapore. Therefore, having a HSR station there will benefit both countries,” said the source.

Forest City will be built on four man-made islands over 20 years. It is set to be one of the largest real estate developments in Asia in terms of the number of properties to be developed.

The estimated investment for the project is RM175 billion.

'CANADA LAND SALE TO FUND EXPANSION'

By Sharen Kaur for NST Business, Oct 9, 2017

KUALA LUMPUR: UEM Sunrise Bhd will use part of the C$113 million (RM382.54 million) proceeds it received from selling a plot of land in Canada on new property projects in Malaysia, Australia and South Africa.
 
  Managing director and chief executive officer Anwar Syahrin Abdul Ajib said it would park the balance with its stakeholder in Canada for use in future expansion plans and also to earn on foreign exchange.
 

UEM Sunrise Bhd managing director and CEO Anwar Syahrin Abdul Ajib said it will utilise part of the C$113 million proceeds from the land sale for new property projects in Malaysia, Australia, and also in Durban, South Africa

  "We have sold everything in Canada and now we have funds to expand.
 
  "In fact, we just got the money. We will bring some back to further expand UEM Sunrise and retain the rest in Canada," Anwar told NST Business.
 
  UEM Sunrise's subsidiary, UEM Sunrise (Canada) Alderbridge Ltd, sold the 1.98ha plot in New Westminster, Richmondm to 1107782 BC Ltd, a unit of South Street Development Group.
 
  According to Bursa Malaysia filing last week, the proposed disposal was completed on September 29.
 
  Tabung Haji raised its stake in UEM Sunrise to 6.88 per cent following the announcement by acquiring 2.44 million shares over three days.
 
  Analysts, who spoke on condition of anonymity, said UEM Sunrise made a right decision to sell the land, where it would have to spend the next 10 years developing just to recognise gains.
 
  "It is quite clear that UEM Sunrise's strategy is to focus on developments in Malaysia and Australia, where it is actively looking for land to acquire.
 
  "I also understand that UEM Sunrise plans to start developing the land in Durban (South Africa) next year so it needs funding for all these," said the analyst.
 
  Analysts had estimated the outright gain on the sale of the land at about RM150 million.
 
  UEM Sunrise acquired the land in April 2014 for C$70.23 million.
 
  The company had originally intended to develop the parcels into a mixed development comprising residences, offices, retail shops and amenities with a gross development value of C$516.9 million.
 
  Anwar said UEM Sunrise had to diversify.
 
  "We have to make sure that we are robust so that when it is soft here we will have somewhere else that can fill the gap. Right now we are focusing on Australia and we have land in Durban. Going international gives us a lot of learning that we can bring back, too.
 
  "Malaysia is a different market altogether. The market is a lot wider and we are catering for more mid-income.
 
  "The Australian market is a bit more exclusive where we are targeting high net worth individuals who want investments or people who are uprooted from the suburb and want to downsize into a small posh area," he said.
 
  Meanwhile, Anwar said he was "cautiously optimistic" on the property market in Malaysia.
 
  "Our biggest concern is always about the outlook and about the economy. When the economy is good the property business is good.
 
  "All the potential political instability, that is beyond our control. We are talking about North Korea, the United States, China and Brexit. All these things will affect us because we are still an export-oriented economy.
 
  "Anything that happens externally will affect us internally. But the government's pump-priming is also useful, such as the infrastructure projects. So we are cautiously optimistic about what the domestic market will bring in the coming months," said Anwar.

Dorsett KL boasts fresh look, feel

By Sharen Kaur for NST Property - October 2, 2017 

DESPITE a few difficult years in the tourism industry, a number of hotels in Kuala Lumpur are investing in upgrading and refurbishing their properties.

Some owners feel it necessary to refurbish their hotels. The trick is to do it when the market is soft as occupancy would be low and they can close rooms in phases to carry out the work.

Others feel the need for it as they want to be able to compete with new hotels entering the market.

It was reported that 98 hotels, with 25,537 classified rooms, would enter the market from this year to 2021. Luxury and upper-luxury hotels will account for 46 per cent of total room supply.

Dorsett Kuala Lumpur, which has been a mainstay in the city centre for almost two decades now, has invested heavily in the business over the past number of years.

This was a key indication of the hotel’s commitment to not only the tourism sector, but also the local area, said its new general manager Adele Ang.

Dorsett Kuala Lumpur, a four-star hotel parked under the Dorsett Hospitality International (DHI), is located right in the heart of the Bukit Bintang Golden Triangle and at the start of the Bintang Walk.

According to Ang, the hotel had invested RM40 million on refurbishment in a bid to increase its share of the business event and leisure markets.

The hotel took almost two years to transform, following there furbishment that started early last year, she said.

Renovations included an extension and complete refurbishment of the existing meeting rooms, all of the hotel’s 322 rooms, food and beverage outlets, and public spaces.

“We embarked on the refurbishment to bring new life to the hotel. In order for us to remain as popular as ever with our customers, we must be relevant in the market, thus the need to invest and retrofit the hotel,” she said.

“The timing of the refurbishment is perfect. It’s crucial to renovate and refurbish now so that in time to come we can compete with all the key hotels that are coming up.

“In the hotel industry, if you do not upscale yourself, you’ll be left behind when new properties enter the market, and when the economy recovers,” she added.

Malaysia’s tourism sector had shown signs of recovery with positive grow thin tourist arrivals and receipts last year. There was an increase of four per cent in the number of tourist arrivals compared with 2015.

Last year, Malaysia welcomed 26,757,392 tourists, mainly from Singapore, Indonesia, China, Brunei and Thailand. The receipts were RM82.1 billion, growth of 18.8 per cent compared with RM69.1 billion in 2015.

This year, the industry is expecting a bigger market from China and India with the e-visa facility,

besides the usual travellers from Singapore, Thailand, Indonesia and Brunei.

Dorsett Kuala Lumpur targets the milennial market for business growth.

“Dorsett Kuala Lumpur is a four-star brand. I would say, in terms of scale, it is up-market and the brand goes really well with what we are targeting - the millennial market. If you are looking for hotel rooms with value-for-money, that’s where we are,” she said.

“Millennials look for accommodation, offering great value for money and distinctive experience. They like the idea of engaging with local culture and they look for convenience to move around.”

Dorsett Kuala Lumpur is within walking distance to BukitBintangWalk,Pavilion, Starhill Gallery, Fahrenheit 88, Lot 10, Sungei Wang, Berjaya Times Square, Plaza Low Yat, the Kuala Lumpur ConventionCentre and the Petronas Twin Towers.

Meanwhile, DHI has opened Dorsett Residences Bukit Bintang — the first integrated residences annexed to Dorsett Kuala Lumpur — and would manage 52 studios and two-bedroom suite residences.

“We are delighted to announce the first residence opening under the group, and are confident that it will prove to be the preferred choice for families and holiday makers. With this property, guests can enjoy the additional space of the studios or two-bedroom suite residences while extending their stay amid the contemporary design of the rooms,” said Ang.