Mah Sing Group Bhd is eyeing for more land in the Klang Valley, says its founder and managing director Tan Sri Leong Hoy Kum.
As at end March 31, 2019, Mah Sing has a healthy balance sheet with cash and bank balances at RM1.3 billion, providing an easy avenue for the company to expand.
The developer bought a few pieces of land this year and currently has 2,099 acres, which would yield a remaining gross development value (GDV) and unbilled sales of about RM25.1 billion.
"This will provide steady earnings visibility for the group," said Leong in a statement.
Mah Sing Group Bhd founder and managing director Tan Sri Leong Hoy Kum said the company is eyeing more land. (PIX/Mah Sing)
"We will continue to focus on replenishing our prime lands in the Klang Valley,
especially in the affordable property range so that buyers can look forward to more
exciting project launches from Mah Sing," he said.
Leong said for the latest land acquisition in Happy Garden, Mah Sing is naming the project M Oscar.
He said, the proposed smallest two-room, 700 sq ft unit (at M Oscar) is indicatively priced from RM428,000.
The project is targeted to commence in the second half of 2019 and developed over
a span of 4-5 years. Based on preliminary plans, M Oscar will have an estimated
GDV of RM500 million.
“We remain positive that our property projects will continue to gain traction with buyers as about 81 per cent of our property projects are catered for the affordable segment, which is below the RM700,000 mark," said Leong.
Mah Sing announced a pre-tax profit of RM73.9 million on the back of revenue of RM450.3 million for the first quarter ended 31 March 2019.
On the property development front, revenue was RM355.5 million while operating
profit was RM68.9 million for the quarter ended 31 March 2019.
Leong said, this is mainly attributable to a higher proportion of new sales secured from new projects where contribution to revenue is expected to pick up once past the initial stages of construction.
Mah Sing is launching RM2.2 billion worth of properties this year and it will remain focused on building affordable homes, majority of which will be priced below RM700,000.
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THE new redevelopment plan for Kampung Baru (Kg Baru) in Kuala Lumpur will have 83 million sq ft of residential and commercial floor space, says Kampung Baru Development Corp (KBDC) chief executive officer Zulkurnain Hassan.
He said 70 per cent of the floor space would comprise residential dwellings and 30 per cent would be iconic corporate towers and retail complexes.
Zulkurnain said Kg Baru would no longer have landed houses, except for a few “kampung” houses which would be duplicated in a public area in order to preserve the history of the 120-year-old settlement.
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“It will all be high-rise dwellings as we want to subsidise the development in Kg Baru. We are looking at building apartments, serviced apartments, condominiums and serviced suites to support the commercial development within and around Kg Baru”.
The estimated gross development value (GDV), based on the new master plan currently being
drafted by Kuala Lumpur City Hall (DBKL) for the redevelopment of Kg Baru, is RM50 billion to RM60 billion, Zulkurnain told NST Property.
However, the GDV is subject to change based on market conditions and demand, he said.
Land in Jalan Raja Abdullah in Kampung Baru is said to be worth around RM650 per sq ft.
KAMPONG BHARU CITY CENTRE PLAN SHELVED
The new master plan for Kg Baru will exclude Kampung Bharu City Centre (KBCC), the catalyst project that was planned under the old Kampung Baru Detailed Development Masterplan.
“The government at that time wanted to prioritise some areas in Kg Baru, especially around the main
mosque, thus it came up with KBCC. But KBCC didn’t take off due to objections from the land owners.
“KBCC was supposed to be developed over 40 acres (16.19ha) of land which is owned by 150 to 160
individuals. Out of this number, we managed to talk to 90 per cent of the owners. The remaining 10 per cent have passed away and the title was not transferred to their beneficiaries... so that has been a challenge.
Kampung Baru Development Corp (KBDC) chief executive officer Zulkurnain Hassan.
“Out of the 90 per cent, not many people agreed to KBCC. About five per cent rejected the development as they wanted the land for their own use. Half of those whom we spoke to agreed to the development if the right price was offered. Some owners were asking for more than RM2,000 per sq
ft (psf). Anything less they wouldn’t sell. But we do know the land in Kg Baru doesn’t cost that much,” he said.
Zulkurnain said some of the owners maybe just too comfortable staying where they are now and
enjoying the ‘kampung’ environment. “This is why we think they have come up with an unreasonable price tag for their land, because their intention is to stay and not move. So, looking at this situation, we could not guarantee that KBCC will be carried out and this is why we have decided to call off the plan.”
Some houses in Kampung Baru will be duplicated in a public area under a new master plan.
Last month, Federal Territories Minister Khalid Abdul Samad said the government needed RM10 billion to acquire land in Kg Baru, which could be developed into a modern and integrated settlement of the Malay community in the heart of Kuala Lumpur.
He said a RM10 billion fund was required if all landowners in Kg Baru agreed to accept cash for
their land to be developed by the developer to be appointed by DBKL.
The minister had also reportedly said that if all the landowners want cash instead of apartments (in exchange for their land), this would probably be the worst-case scenario as the fund required would be between RM6 billion and RM10 billion.
Zulkurnain said the problem was that one plot may have 20, 50, 70 owners or more and it would be a challenge to get approval from all of them in one go.
Kg Baru has a total land area of 121.4ha administered by KBDC.
There are seven villages that come under “Malay Agriculture Settlement” status spread over 89ha, as well as Chow Kit and the PKNS flats, which combined, cover 32.4ha of area.
The land in Kg Baru (including Chow Kit and the PKNS flat area) is divided into 1,355 lots with around 5,300 registered owners. Of the total 1,355 lots, around 88 per cent, or 1,193, measure less than 11,840 sq ft, or 0.11ha each.
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An entry point in Jalan Raja Muda Musa, one of primes areas in Kampung Baru.
By Sharen Kaur for NST Property - May 30, 2019
KUALA Lumpur City Hall (DBKL) hopes to present the first draft of the new master plan for the redevelopment of Kampung Baru (Kg Baru) to all land owners by August this year, says Kampung Baru Development Corp (KBDC) chief executive officer, Zulkurnain Hassan.
“Hopefully once they have seen the new master plan they would agree to sell their land. As I
have mentioned, they have an option to get cash or a new apartment in return for their land and there is no other choice.
“The redevelopment of Kg Baru is for them. Depending on the size and value of their land, they could get either an apartment, serviced apartment or condominium. The development will see to it that there is a lot of public space and green area to improve their well-being and lifestyle,”
he said.
‘LAND PRICE BELOW RM800 PSF’
According to market consultants, the price for land fronting the main road — Jalan Raja Abdullah and Jalan Raja Muda Abdul Aziz — is around RM650 per sq ft (psf), currently.
“Depending on where the land is located in Jalan Raja Abdullah and Jalan Raja Muda Abdul Aziz, and the type of land, whether it is flat and undeveloped, or is very strategically located, the price can go up to RM800 psf but it shouldn’t be more than that.
“The price will also be lower in the inner parts of Kg Baru, like those less developed areas with small roads. It should be nothing more than RM500 psf,” a consultant told NST Property.
Tamu Hotel and Suites in Jalan Raja Abdullah will remain as it is under a new Kampung Baru master plan.The consultant said land in Kg Baru cannot be on par with that of other parts of Kuala Lumpur’s Golden Triangle.
“The Golden Triangle is the CBD (central business district) of Kuala Lumpur... That is where you have many luxury apartments that sell at more than RM2,000 psf, five-star hotels and up-market shopping malls. There are many iconic structures in the CDB such as Petronas Twin Towers and KL Tower. Kg Baru is a far cry from the Golden Triangle,” he said.
FOUR COMMITTEES HAVE BEEN FORMED
Zulkurnian said the Federal Territories Ministry has formed four committees to come up with a new concept for the master plan, handle land matters, and overlook social-economic issues and financing for the redevelopment of Kg Baru.
The master plan committee is headed by DBKL and it is coming up with a new concept and business model for Kg Baru, he said.
“The second committee is in charge of land matters. It is the one engaging with all the land owners in Kg Baru, having discussions and meetings to get them to agree to sell off their land to make way for the redevelopment.
“The third and fourth committee are in charge of financing and social economic matters. All four committees have presented their respective issues. We are not sure when the master plan will be ready but the first presentation to the land owners is expected this August,” he said.
The government intends to either acquire the land from owners based on prices by the Valuation Department, or on a willing-buyer-willing-seller basis at a price to be determined later.
Zulkurnain said the priority for the development of Kg Baru is to get consent from all the land owners.
“We will not develop too many areas in Kg Baru. Too many areas mean it will be difficult to start the development. Under the old master plan, the plan was to develop every area and that would have made the development too congested.
“We believe in open spaces and providing a lot of green areas for the residents. The new master plan for Kg Baru will focus on these two aspects,” said Zulkurnain.
Federal Territories Minister Khalid Samad has said the whole plan is to develop Kg Baru in a
well-organised and integrated manner and according to a comprehensive plan.
“We will have more details on what the land owners want following the presentation in August. Based on their feedback, it would be easier for us to work on the next step,” said Zulkurnain.
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IS the current poor market sentiment a domino effect from the various cooling measures implemented by the previous government to curb speculation and runaway inflation on property prices?
Among the measures implemented since 2010 were interest rate hikes, abolishment of Developer Interest Bearing Scheme (DIBS), raising the Real Property Price Index, raising the minimum property purchase price for foreign investors from RM500,000 to RM1 million, and introducing the maximum 70 per cent Loan-To-Value for third residential mortgage loan onwards.
Market consultants said these measures, especially the removal of DIBS and interest rate hikes, had caused a knee-jerk reaction and the market to go downhill.
DIBS was an innovative home financing scheme which aimed to help lower the cost of buying a house. Under DIBS, interest payments would be borne by the developer during the construction period. With its abolishment, buyers can’t avoid the interest costs, thus increasing the expenditure threshold needed for property speculation. As a result, houses may become less affordable to
the genuine house buyer.
In the first quarter of 2013, 93 per cent of participants in the PropertyGuru Consumer Sentiment Survey expressed dissatisfaction with the housing initiatives available at the time.
This decreased to 63 per cent in the second half 2018 survey, with satisfaction rising from seven to 22 per cent over a similar timeframe.
“These movements reflect increasing confidence in public sector initiatives over the past few years, with Malaysians wanting the government to up the ante in their initiatives to provide more affordable national housing for the masses,” said PropertyGuru Malaysia country manager Sheldon Fernandez.
PropertyGuru Malaysia country manager Sheldon Fernandez says the survey shows increased confidence in public sector initiatives in the second half of 2018.
The survey was based on a sample group of 944 participants, responding to online questionnaires. The majority of respondents comprised 30 to 39 year olds from the PMEB (professionals, managers, executives and businessmen) working demographic and medium to high-income households in Klang Valley.
Will current government initiatives spur the property market?
According to the survey, a majority of Malaysians still feel that a more targeted approach could be taken to address the pressing gap in the property market, including issues related to affordable housing.
The sentiment comes amid widespread perceptions that property prices remain high in the country, with unfavourable market timing. Lack of capital and good financial options were also cited as challenges by property seekers.
The survey showed that actual uptake of national affordable housing programmes is low, despite demand for such initiatives.
“Only 19 per cent of survey participants applied for the 1Malaysia People’s Housing scheme, for example. Participation rates ranged from four to nine per cent for other initiatives such as Rumah Selangorku, the Federal Territories Affordable Housing Project, My First Home Scheme, 1Malaysia Civil Servants Housing and MyHome.
“In fact, 41 per cent of respondents reflected that they were not qualified to apply for such national housing initiatives.
“A large segment of home seekers is either not qualified, or unaware about existing affordable housing initiatives. That has deterred them from applying for or even considering these options,” said Fernandez.
He said another challenge is the lack of consensus on what exactly constitutes affordable housing itself.
“Baseline prices vary from location to location. That being said, the majority (nearly eight out of 10) of respondents considered properties in the RM300,000-RM500,000 range to be on the affordable spectrum.”
NEGATIVE PRICE SENTIMENT
Some 76 per cent of Malaysians anticipate continued price increases in the next six months.
Fernandez said regardless of price movements, household income in Malaysia has failed to commensurate with living cost and this has caused many to cite unfavourable timing and market conditions as a factor in their property decisions.
At least 67 per cent of Malaysians have a budget of RM500,000 or less for property purchases.
The survey found that 51 per cent of respondents resorted to withdrawing their Employees Provident Fund savings at least once to purchase properties.
“Given income stagnation in the country, the younger generation has been particularly hard hit by property financing issues. Over 70 per cent of house seekers under 29 years of age, for example,
see prevailing interest rates in Malaysia as excessively high.
“Further challenges for house buyers seeking financing include unfamiliarity with the paperwork involved, unfavourable credit histories, unstable sources of income and other outstanding debts that contribute towards high debt-service ratios in the country, such as car loans, personal loans and outstanding credit card debts,” said Fernandez.
SILVER LINING
Fernandez said Johor, Penang, Kuala Lumpur and Selangor are seen as primary contributors to transactions last year, with 75 per cent of loans approved undertaken for properties in these areas.
He said asking prices generally trended downwards or sideways in the third quarter as the market adjusted to larger economic tides.
However, the Johor, Penang and Kuala Lumpur markets registered marginal quarter-on-quarter
increases of up to 0.5 per cent, in line with their role as key focuses in national development.
Location-wise, the PropertyGuru Market Index Q1 2019 report found areas of high demand for affordable properties in Klang and Shah Alam.
“This demand is catalysed by the upcoming Light Rail Transit Line 3 alignment linking these areas to
the city centre,” said Fernandez.
In terms of property types, more Malaysians are looking at landed, semi-detached and mixed-use projects, with home seekers expressing fewer intentions to buy terrace, condominium, flat/apartment and bungalow properties.
Fernandez believes that government initiatives, such as the Home Ownership Campaign, could stimulate buying appetite in the short to mid term.
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QUIT
Rent is a form of land tax collected by state governments via Land Office and is imposed on owners of all alienated land — freehold and leasehold land).
Under the National Land Code, it is compulsory for owners of all types of properties to pay quit rent annually to the relevant Land Office. For most states, the last date for payment is on or before May 31.
The amount of quit rent a home owner is required to pay varies from state to state.
When Selangor decided to increase its quit rent drastically by up to 800 per cent this year, many people have questioned the purpose of it.
Market consultants say the move by Selangor Land and Mines Office (PTGS) to increase quit rent by about eightfold is unreasonable.
Senior adviser Kumar Tharmalingam questioned the rationale behind the increase amid an economic slowdown.
He said many people and himself were puzzled by the sudden increase in costing as there was no consultations with any parties.
“Why are they taking so much money? You must ask the local council the reason for the rate increase? It’s hard to believe if it’s because local councils have no money. So far, in all these years, no citizens have ever questioned how local councils spend their money.
“Even politically, this is not a good idea.... you’re trying to make everybody happy in this country and you come up with this incremental cost, in addition to the (current high) cost of living. This (could) make people very suspicious as to where the money is going,” said Kumar.
He said the people should know how their money is spent. “What is the expenditure and where do they spend the money? How do we pay for the services and where is their cost? Is the local council paying extra rents or very high salaries?
“They (local councils) need to come out and justify the cost increase. If they can’t justify it, then that
is something to worry about,” said Kumar, adding that the quit rent hike has affected a lot of people.
He also pointed out that the local council was not being friendly to the public in explaining on the
rationale behind the rate hike.
“There is an increase of 500 to 800 per cent, which is a lot of money. The local council has to explain why it is necessary.”
ANOTHER MARKET DAMPENER
Kumar believes the quit rent hike will affect the market, although not by a large scale.
The consumer segment that is most vulnerable to it is those buying affordable homes below RM600,000.
Any slight increase in rates affects a person’s household budget, he said.
“Most apartment owners look at the rates as a charge. On top of the quit rent, they are paying service charge to the joint management body (of their property). They are also paying the assessment rate twice a year. So it is becoming very expensive,” he said.
However, Kumar doesn’t think the rate hike would affect the sale price of high-rise dwellings
although he foresees property developers shying away from such developments and focusing on landed properties.
A resident in Petaling Jaya, who declined to be named, said she now has to pay RM200 a
year instead of RM43, following the quit rent hike.
“This is ridiculous. The jump is not 10 per cent but triple-digit. We want PTGS to explain the sudden hike. I sent them an email early this month for an explanation but they have not responded. I don’t understand why state governments still require property owners to pay quit rent when the land
and building is legally ours?” she said.
‘HIDDEN’ COSTS EVERY HOMEOWNER SHOULD KNOW
Owning a property is not easy or cheap.
You had secured a loan and now own a home but your expenses do not end there as there are other costs involved.
Here are some extra costs that house owners will need to commit to besides quit rent and home loan interest.
1. Property assessment tax
Homeowners are required to pay an assessment tax or ‘cukai pintu’. The tax is imposed by local authorities on every household to finance the construction and maintenance of public infrastructure, cleaning services and upgrading works in the area under its jurisdiction.
The tax is calculated as a percentage of annual rental value (therefore varying according to property type and location), multiplied by a set of rates determined by local authorities.
In general, a residential unit assessment tax is calculated at a rate of four per cent of the annual
rental value and is payable in two instalments per year. This set of rates is determined by local councils every year to ensure they have money to run yearly activities under their jurisdiction.
2. Maintenance fees
If you stay in a strata-titled property, you have to pay maintenance fees and sinking fund on a monthly basis to the management office of your property. The fees are paid to cover general and management costs to upkeep the common areas and the facilities of the apartment. The sinking
fund is paid in advance for any major fixtures, fittings or repairs needed, including painting of the buildings.
3. Mortgage insurance
In Malaysia, there are two types of mortgage insurance available — Mortgage Reducing Term Assurance (MRTA) and Mortgage Level Term Assurance (MLTA). Both offer protection for homeowners by helping them settle their outstanding home loan in the event of illness, disability
or death.
However, despite what your banker might tell you, it is not compulsory for you to take a MRTA or MLTA. But it is advisable to take it to protect your family from the risk of losing a home. The
amount of premium you need to pay is subject to your age, loan amount and loan tenure.
4. Indah water utility bill
Indah Water Konsortium is responsible for operating and maintaining public sewage treatment plants and underground sewerage pipelines. Every year, a homeowner will have to pay the Indah Water utility bill.
Domestic premises like houses are generally billed RM8 per month (27 sen a day) for sewerage systems that are connected to a public sewage treatment plant or RM6 per month (20 sen a day) for those with an individual septic tank.
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Sunway Property has recorded 80 per cent take-up rate for the first tower of its integrated Sunway Avila development in Wangsa Maju.
Sunway Avila is a RM590 million development comprising 810 residential units with 30 retail shops.
The development will be connected to the nearby Sri Rampai LRT station via a covered walkway.
Sunway Bhd Property Development Division Central Region executive director, Chong Sau Min
Sunway Bhd's Property Development Division Central Region executive director, Chong Sau Min said: “Sunway Avila comes with functional and practical layouts for families and is a great selection for people who work in the KL City Centre and commute via LRT. It is also good for the younger second-generation families who wants to stay close to their families living around the area."
Chong believes that the overwhelming response for Sunway Avila is attributed to having launched the right product, at the right place, at the right price.
Sunway Avila is targeted for completion in 2023, the company said in a statement.
Meridian Berhad (formerly known as Meda Inc Berhad) is exploring a preliminary partnership with travel360.com, the digital expansion of AirAsia's inflight magazine travel360.
The partnership aims to steer Meridian’s Malaysia Tourism City (MTC) project in Malacca to greater heights and see travel360.com as the developer's official marketing partner for the tourism development.
The partnership will holistically boost the local economy through tourism and trade for both Malacca and Malaysia.
Meridian executive director Datuk Seth Yap said that with travel360.com’s support to promote MTC as the ultimate destination for local and international tourism, it will benefit the local economy
by attracting greater inflow of tourists into Malacca.
A flagship project under Meridian, the 251.7ha integrated tourism project is located in Kuala Linggi, Malacca. Yap’s private entity M101 Holdings Sdn Bhd. has signed a licensing agreement with Hasbro Live!, the largest toy maker in the world with over 1,000 brand names like NERF, MY LITTLE PONY, MR POTATO HEAD, PLAY-DOH, BATTLESHIP, MONOPOLY, ELEFUN & FRIEND AND MOUSETRAP.
Sofitel Hotels & Resorts is launching a new global brand campaign, 'Live The French Way', in celebration of the brand’s birthplace and heritage.
The campaign’s brand promise, pays homage to Sofitel’s French origin, demonstrates the eternal allure of French style, and reinforces the brand’s time-honored position as an ambassador of French art de vivre around the world.
“The goal of Live the French Way is to reinforce Sofitel’s position in the luxury segment and leverage its inherent strengths, while also differentiating the brand from its competitors and injecting a sense of modernity into the brand. We think guests will be delighted to experience authentic French touches through an immersive and luxurious journey into Sofitel’s world, wherever they may travel,” said Steven Taylor, Chief Marketing Officer, Accor.
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Raffles Hotels & Resorts, renowned for bringing old world elegance, first class travel experiences and genuine charm to the world’s most fascinating cities and desirable holiday hot spots since 1887, is pleased to announce the opening of two important new landmark hotels, Raffles Shenzhen and Raffles Maldives Meradhoo. Both hotels opened in early May and are now accepting reservations at raffles.com. Known as havens for royalty, film stars, writers and artists, many remarkable stories and cultural moments have taken place within the plush confines of Raffles hotels and resorts.
Raffles Maldives Meradhoo
“The Raffles collection now includes 14 properties across 12 countries, with a carefully curated list of distinguished addresses in leading markets around the world,” said Chris Cahill, Deputy CEO, Accor. “With a storied history spanning more than 130 years, Raffles is currently experiencing a renaissance, with a robust project pipeline that will see the portfolio add an additional 8-10 hotels over the next few years.”
Raffles Shenzhen brings the height of luxury and bespoke service to the shining modern metropolis of Shenzhen. An extraordinary urban oasis discreetly perched on the top floors of a 72-storey tower in the prestigious One Shenzhen Bay complex, Raffles Shenzhen is the epitome of glamour and refinement. With 168 spacious guestrooms, as well as a selection of serviced residences, well-travelled guests will be enchanted by the exquisite dining venues, spectacular views of Shenzhen Bay and Hong Kong, and of course, the famous Raffles Butlers and the warm, graceful and personalized service for which they are known.
On the remote southern tip of the Maldives archipelago, Raffles Maldives Meradhoo is as removed from the rhythm of everyday life as can be. Surrounded by crystalline Indian Ocean waters and unspoiled reefs, the resort is a rare haven of 21 island beach villas and 16 ocean overwater villas. Guests take a domestic flight and are transported by speed boat to the pristine and private oasis of Meradhoo, where they receive the gentle and intuitive attentions of the legendary Raffles Butlers, along with an exclusive Marine Butler service, Children’s Butlers and private chefs.
“With the doors now officially open at Raffles Maldives Meradhoo and Raffles Shenzhen, we are delighted to invite guests to experience the impeccable service, intuitive charm and extraordinary adventures upon which the Raffles legend has been built,” said Jeannette Ho, Vice President, Raffles Brand & Strategic Partnerships. “The next few years will be very exciting for our guests and global ambassadors as we continue to expand our illustrious hotel collection, bringing Raffles to the most fascinating, attractive and culturally rich regions of the world.”
COMING SOON TO RAFFLES
Adding to the recent openings in China and the Maldives, Raffles has also developed a smart and strategic growth plan which will see the luxury brand add a number of new and exciting hotels, resorts and mixed-use projects to its global portfolio over the coming years. Highlights include:
Scheduled for opening in 2020, 101-room Raffles Udaipur will be the brand’s first hotel in India. Modelled after a palace, the hotel is set on a private island on the Udaisagar Lake in this stunning and romantic region known as the “Venice of the East”. With spectacular vistas of lake, hillside and a neighbouring 400-year old temple, Raffles Udaipur is truly set to be an oasis for the well-travelled.
Raffles Jaipur, set to open by 2022, is a 55-room hotel being built at Kukas in the city of Jaipur, near popular tourist destinations such as Amer Fort, Jaigarh Fort, Nahargarh Fort and Jal Mahal palace. Secluded private residences and courtyards will join a larger complex that presently houses a hotel - Fairmont Jaipur - from one of Raffles’ sister brands, Fairmont Hotels Resorts. The development is planned as a discreet destination where guests will feel pampered and privileged.
Raffles The Palm Dubai, with its 125 hotel rooms and suites, will enjoy a coveted position at the tip of the Palm archipelago, providing 360 degree views of the Jumeirah coast and the Arabian Gulf. With planned opening in 2021, the hotel will be the tallest structure on Palm Jumeirah at almost 260 meters high. The property will also offer 359 branded residences.
Scheduled to open in 2021, Raffles Boston Back Bay Hotel & Residences is shaped by the creative and intellectual spirit of Boston, one of the most captivating cities in the United States. Located in the historical heart of the city, it promises to be a welcoming oasis of refined elegance in a striking new 33-story building. The project includes a distinctive 147 room hotel as well as 146 exquisitely appointed branded residences.
Currently under development, Raffles London will reside within the Old War Office building on Whitehall. The property is being transformed into a flagship Raffles hotel featuring 125 rooms and suites, restaurants, spa and 85 private residences.
As global warming drives more events that impact coral reefs, managing the Great Barrier Reef’s resilience demands comprehensive and detailed mapping of the reef bed.
Available surveys and maps with geographically referenced field data have been limited and fragmented.
A diverse research team recently demonstrated a successful approach, applying statistics to image data to build predictive models, integrate diverse datasets on reef conditions, and provide a comprehensive map of the Reef that informs reef management decisions.
Any aquarist who has tried to grow a variety of the colorful Acropora coral in a hobby tank knows how delicate they are – “not for beginners.” And yet this sensitive group of hard, branching corals dominates the coral population of the Great Barrier Reef, lending color, structure, and tourist appeal.
In April of this year, reports came out that the annual spawning of this coral showed a low rate of recruitment (growth of infant coral within a reef). These coral communities had been devastated when sea temperature rise drove back-to-back bleaching events in 2016 and 2017. It can take an Acropora coral community 9–12 years to recover from a severe bleaching event.
A new approach to managing reef data
In Queensland, Australia, a diverse group of organizations overseeing the Great Barrier Reef are committed to helping Acropora regeneration efforts. But they all need comprehensive maps – not necessarily containing the same information – of the Reef.
In response, a multi-institutional research team has developed a public-access, predictive mapping tool that combines image data from professionals and citizen scientists to predict coral cover.
“Citizen scientists, professional scientists, the tourism industry, indigenous communities, multiple sectors of our society are interested and invested in understanding the changes coral reefs are facing,” said Manuel González-Rivero with the Australian Institute of Marine Science.
For scientists hoping to seed new Acropora colonies on the reef, for example, it’s important to know where healthy, similar colonies are located.
“Once corals release their egg-sperm bundles into the ocean and break apart,” says Alannah Vellacott with the Perry Institute for Marine Science, “fertilization success depends on sperm from one colony finding eggs from another.”
From seeding new colonies to eradicating the voracious crown-of-thorns starfish, which eats coral polyps, reef managers are looking for fine-scale reef information to help develop solutions, González-Rivero told Mongabay. Over time, the interested organizations have collected data on various aspects of the Reef, but their respective datasets differ in type, quality, time period, and spatial extent, so they have never been combined in a single analysis.
Recent modeling work by Erin E. Peterson, a research fellow at Queensland University of Technology (QUT), and colleagues promises to address this need. Using predictive statistical models, Peterson, González-Rivero, and colleagues have developed a mapping tool to compile and map photographic data on these hard corals collected and/or classified by professional and citizen scientists. The new tool uses the models to integrate the diverse datasets, assigning values to survey data to account for differences in survey method and quality.
The unique modeling approach, detailed in a recent paper, has led to “the most comprehensive map” to date of the Great Barrier Reef (GBR), according to Peterson, which will provide users with spatially and temporally explicit information to guide research and management.
The push to concentrate data is all part of the Australian government’s Reef 2050 Integrated Monitoring and Reporting Program with a mission to “create a knowledge system that enables resilience-based adaptive management of the Great Barrier Reef and its catchment.”
Capturing uncertainty
The new model predicts the proportion of a given image pixel covered by coral and includes a “level of uncertainty” with all predictions, which managers can factor in when making decisions.
“Predictive maps with estimates of uncertainty can be used to prioritize management actions, inform the design of monitoring programs, and guide coordinated monitoring efforts within and across organizations,” the paper reports, “and provide scientifically rigorous information, summarized at multiple scales.”
The authors state that the new integrated mapping tool can help users to:
report on coral status and trends, including changes in coral health,
expand the scope covered by monitoring activity, to help capture spatial and temporal heterogeneity within and between large regions,
identify areas needing additional monitoring data before taking action, and
evaluate the management effectiveness of the Reef 2050 Plan.
The map’s predictive accuracy improves the more datasets it ingests. The team tested the model using citizen science data obtained via an online classification tool called Virtual Reef Diver (VRD), and the model performed well.
The researchers tested their model using one dataset collected just by official monitoring programs and another that also incorporated additional data collected by citizen scientists, universities, and other groups. Adding the additional data increased the predictive ability of the models, which provides more accurate and precise information about coral cover across the whole of the GBR.
“Results to date,” Peterson told Mongabay, “show that integrating image-based data from multiple organizations significantly increases the accuracy of model predictions.”
Expanding datasets through citizen science
Now Peterson’s team is about to combine forces with the Great Barrier Reef Marine Park Authority (GBRMPA), the Reef’s primary management agency, which has its own citizen science program and data collected through a program called Eye on the Reef.
A Queensland Citizen Science Grant will allow QUT, GBRMPA, and Great Barrier Reef Legacy to expand the VRD project, says Peterson. Both the Australian Government’s Reef Trust and the Great Barrier Reef Foundation have supported the project.
“The project will integrate the largest participatory science program, the Eye on the Reef, [and] other citizen science initiatives, with the aim of integrating monitoring observations,” González-Rivero said.
The VRD application enables citizen scientists to contribute to the new map in two ways: by identifying coral species in professional photos and contributing their own images, expanding the geographic reach of the image dataset.
Supporting coral recovery
Peterson said that coral communities support each other much the same way trees in a forest do. For anyone planning to seed Acropora, it is not enough that the coral spawn successfully, the mated egg and sperm cells still need a local web of same-species communities for a successful recruitment. The new predictive modeling map can identify these communities.
“This information is really important when it comes to reef interventions, such as genetically modified coral,” Peterson told Infrastructure Magazine. She was referring to a restoration plan put forth by the Australian Institute of Marine Science, which calls for “next generation corals for tomorrow’s reefs such as translocating existing corals with elevated temperature resistance, selective breeding and gene modification.”
“We can’t plant coral larvae everywhere,” Peterson said, “but we can seed reefs that are strongly connected to other reefs through ocean circulation. With traditional resources, we don’t have a good idea of overall coral cover, which you need to carry out genetic connectivity modeling.”
The approach by Peterson and colleagues can map not only coral cover, but also environmental features such as water temperature, history of high-impact events like cyclones, or the presence of marine predators like the crown-of-thorns starfish.
Datasets with different levels of accuracy can affect the model’s ability to predict coral cover, so the researchers applied a weighting system. Statistics predicting probabilities enable the team to understand and model how much all those datasets vary.
“The model weights the contribution of different datasets and allows using data from different providers at once, professional and citizens and artificial intelligence, to help make a robust picture of the condition of coral reefs across very large scales,” González-Rivero said.
For example, they tested the ability of individual citizen scientists working with Virtual Reef Diver to accurately identify coral by having volunteers classify (annotate) images from known datasets. Each citizen’s input was then weighted according to its accuracy.
“Tools like the Virtual Reef Diver can help gather citizen science annotations and test their contribution,” González-Rivero said, “to assist the training of more informative artificial intelligence algorithms.”
VRD has been able to confirm proof of concept and will give citizen scientists a sense of empowerment.
“With simple modifications to the mobile app,” Peterson said, “images collected by hundreds of Eye on the Reef volunteers can be automatically uploaded to the VRD platform for analysis.”
“Participants can see their data in VRD, learn how it is used, and understand how their efforts help inform management,” she added.
Image data for coral assessments
The new modeling approach mines images in a unique way.
“Images were used as objects for classification and to analyze the characteristics contained in groups of pixels (e.g., color, texture, shading),” González-Rivero said. “Because images can be quickly taken while diving, they allow us scientists to collect a large volume of information, covering large areas.”
“Traditionally, random points are laid on an image as objects for classification, where an expert or citizen scientist annotates the identity of the organism behind each point,” he added. “A second approach was used by the data provided by the 2014 XL Catlin Seaview Survey, where machine learning algorithms … were able to accurately identify the benthic organism behind the points on the images using millions of attributes derived from the information contained in the pixels.”
Integrating both sets of data yielded more accuracy to the predictions.
“Ultimately, both our human brains and the machine algorithms make use of the texture, shading, shape and colors to identify what’s on an image,” González-Rivero said, “although perhaps in different ways.”
But will all this help Acropora?
The versatility of Peterson’s model says yes. “Predictive maps also can be used for other research purposes,” she said, “such as connectivity modeling to identify optimal larval restoration sites.”
In April, the GBRMPA teamed up with the University of Queensland to map the entire GBR using remote sensing via satellite spectral imaging. The map will be able to catalog species up to 10 meters below the ocean surface. But for deeper reefs – outer reefs can reach 2,000 meters in depth – only cameras can capture the needed resolution.
“It’s difficult [for satellites] to discriminate between live and dead coral, algae and sand in most cases,” Peterson said, “especially as the depth and turbidity of water increases. That’s why most estimates of coral cover come from underwater images.”
“Mapping the entire GBR requires a combined approach between underwater and satellite observations,” said González-Rivero. “These are exciting times for coral reef conservation in the GBR and multiple projects are looking at increasing our knowledge across the entire GBR, including using satellites, citizen participation, expert observations and machine learning algorithms.”
Citation
Peterson, Erin E…Manuel González-Rivero, et al. (2018). “Monitoring through many eyes: Integrating disparate datasets to improve monitoring of the Great Barrier Reef.” https://arxiv.org/pdf/1808.05298.pdf
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