By Sharen Kaur - Published in NST Property, February 28, 2020
Berjaya Corp Bhd (BCorp) is selling its trophy asset, the Four Seasons Hotel & Hotel Residences Kyoto in Japan to Godo Kaisha Tigre (Tigre) and expects to gain more at least RM612.73 million from the disposal.
Four Seasons Hotel.
BCorp said its subsidiary, Kyoto Higashiyama Hospitality Assets Tokutei Mokuteki Kaisha (KHHA) has entered into a real property trust beneficial interest purchase and sale agreement to dispose the property to Tigre, a Japanese firm, for about RM1.87 billion.
NST Property had reported that BCorp was looking to sell the five-star hotel for between RM1.25 billion and RM1.65 billion and would only dispose of the property upon getting a good deal and arrangement with the prospective buyer.
BCorp's controlling shareholder and executive chairman Tan Sri Vincent Tan said the disposal provides an opportunity for the BCorp group to monetise its investments in the hotel at a very attractive price.
Four Seasons Kyoto - Brasserie outdoor seating.
“I am happy to dispose of this hotel which is only about 3½ years old for a huge gain," said Tan in a statement today.
Tan said, together with the 23 units of the Four Seasons Kyoto residences which were already sold and the estimated profit from the potential sale of the remaining 34 units of the residences, the BCorp group is expecting to realise a total net gain of about RM1.55 billion with gross cash inflows surpassing RM3.22 billion for the entire Four Seasons Hotel and Residences project in Kyoto.
Tan Sri Vincent Tan.
The hotel disposal is targeted to close in mid-March 2020, he said.
Another unit of BCorp, Berjaya Kyoto Development Kabushiki Kaisha (BKD) will leaseback the hotel from Tigre for 17 years, in order to maintain the present arrangements and operations of the hotel.
Both KHHA and BKD are 100 per cent-owned subsidiaries of Berjaya Kyoto Development (S) Pte Ltd, which in turn is held by BCorp and its listed subsidiary namely Berjaya Land Bhd, with each holding 50 per cent equity interest.
The five-storey hotel commenced operations in 2016. It has 123 hotel rooms and is touted as the best hotel in Kyoto and the top three in Japan.
In 2019, it boasts an average room rate of US$1,500 per night.
The hotel is located within close proximity of tourist attractions such as the Kyoto National Museum, Kiyomizu-dera Temple, Sanjusangendo Temple, Chishakuin Temple and Myohoin Temple.
Besides the hotel, the BCorp group also developed 57 units of branded residences (Four Seasons Kyoto residences).
BCorp clarified that these residences are not part of the hotel disposal.
Mah Sing Group Bhd founder and group managing director, Tan Sri Leong Hoy Kum is confident the group will achieve the higher target, on the back of new launches this year catering to all segments of the market.
By NST Property - February 28, 2020
Mah Sing Group Bhd says there is rising interest for its product offerings from overseas buyers in view of Malaysia’s attractive unique value proposition as a destination for retirement and education purposes as well as real estate investments business.
The developer plans to launch RM2.1 billion worth of new projects this year, the majority of which are residential developments.
It is also raising its sales target for the financial year ending 31 December 2020 to a minimum of RM1.6 billion, said the founder and group managing director, Tan Sri Leong Hoy Kum.
Leong said he is confident the group will achieve the higher target, on the back of new launches this year catering to all segments of the market.
He said 84 per cent of the targeted sales is expected to be derived from residential properties priced below RM700,000.
"2020 is going to be another exciting year for Mah Sing. In view of the rising appetite for mass market housing, we are confident to achieve our minimum RM1.6 billion target sales this year,” he said.
Last year Mah Sing achieved its target sales of RM1.5 billion, driven by strong take-up of its affordable homes for the mass market.
Mah Sing came up with various marketing campaigns offering easy entry with low upfront costs and affordability with great incentives and savings for homebuyers.
Leong said, Mah Sing developed fit-for-purpose products at affordable prices and located at strategic locations with good accessibility and connectivity.
EARNINGS VISIBILITY
As at 31 December 2019, Mah Sing has remaining landbank of about 820ha.
Leong said Mah Sing's remaining gross development value (GDV) and unbilled sales of about RM25 billion will support the group's long-term growth.
He said with a healthy balance sheet, the group is in a good position to continue to pursue more landbanking activities whist exploring any joint venture opportunities.
"In line with our growth strategy, we will continue to adopt our resilient strategy of quick turnaround business model to acquire prime lands at strategic locations, whilst being nimble and flexible to change," said Leong.
The current GDV and unbilled sales of about RM25 billion provides earnings visibility for Mah Sing for at least the next eight years, he said.
Mah Sing posted pre-tax profit of about RM270 million and revenue of RM1.8 billion for the fiscal year 2019.
For the fourth quarter ended 31 December 2019, the group recorded pre-tax profit of RM58 million and revenue of RM443 million.
In a filing with Bursa Malaysia, Mah Sing said revenue from its property development division was about RM1.4 billion, whilst operating profit was RM254.6 million for the 12 months ended 2019. Mah Sing attributed this to a higher proportion of sales secured from new projects.
"Contribution to revenue is expected to increase upon completion of the initial stages of construction for the new projects, and when construction momentum starts to increase," said Leong.
The development projects which led to higher revenue included M Vertica in Cheras, M Centura in Sentul, Southville City in KL South, Lakeville Residence in Jalan Kuching, Meridin East and Sierra Perdana in Johor.
Other developments which also contributed were D'sara Sentral in Sungai Buloh, M Aruna in Rawang, Ferringhi Residence in Penang, Meridin @ Medini and Mah Sing i-Parc in Johor.
HOPE FOR PROPERTY MARKET
Leong expects the RM20 billion stimulus package will stimulate economic growth and boost business sentiment as this in turn, would spur improved consumer confidence.
"Confidence is a key factor in property purchase. We are looking forward for more property-friendly incentives to encourage home ownership," said Leong.
Leong said the rolling out of the stimulus package is timely.
"The property market has a multiplier effect on more than 140 industries and is very much reliant on domestic consumption. The move to reduce the Employee Provident Fund’s minimum contribution rate by four per cent from 11 per cent to seven percent is commendable, as it will potentially unlock up to RM10 billion worth of private consumption. This in turn, will enable consumers to have more spending power," said Leong.
Higher spending power could potentially lead to higher property purchasers, he said.
Leong hope that the government can consider more relaxation measures such as speedy implementation for the RM600,000 threshold for foreigners to buy high-rise properties, waiver on the Real Property Gains Tax, and relaxing the current regulation of property sector.
Mah Sing recently launched its ‘Eazy to Own’ campaign to get buyers back into the market, said Leong.
The campaign, which commenced on 19 February covers the group's new and completed residential projects nationwide. It offers easy entry with low upfront costs and affordability with great incentives and savings for homebuyers that are looking to own their ideal home now.
Leong said the campaign has been crafted to address the needs of four key demographics with specific pain points in their home ownership journey - people with intention of buying, but are unable to afford a high down payment; people who are currently renting; people who face difficulties in getting their loans approved; and, first time home buyers.
STIMULUS PACKAGE BOOST FOR HOTELS AND MALLS
Leong said the 15 per cent discount in monthly electricity bills for the tourism sector including hotels and shopping malls is a direct injection to ease these businesses’ cash flow.
"We also laud the government’s move to further aid the tourism sector with the six per cent service tax exemption for hotels, the RM100 travel vouchers for Malaysian citizens, along with the personal income tax relief of up to RM1,000 for domestic travel," he said.
Leong said Mah Sing's properties like Ramada by Wyndham Meridin hotel at Iskandar Puteri in Johor and Star Avenue shopping mall will directly benefit from this.
Ramada by Wyndham Meridin hotel featuring 644 rooms has the highest room count in South East Asia under the Wyndham Hotels & Resorts. The hotel is operating under a franchise agreement between Mah Sing and Wyndham Hotels & Resorts and is the developer's first foray into the hospitality sector.
The four-star hotel opened in July 2018 and is the centrepiece of Mah Sing’s development in Meridin@Medini. It is located 700m away from the Legoland theme park, and is close to other attractions like Puteri Harbour and Iskandar Malaysia Studio.
Tropicana Corp Bhd is launching Shoppes & Residences (South), a mixed development comprising retail lots and serviced apartments at Tropicana Metropark, Subang Jaya. An artist impression of Tropicana Metropark
Tropicana Corp Bhd's key highlight in 2020 will be to introduce new developments and phases across its signature Tropicana townships with gross development value (GDV) exceeding RM2 billion.
The developer is set to launch Tropicana Grandhill, the first township development in Genting Highlands, which sits 1,800m-high atop Mount Ulu Kali, on the border of Pahang and Selangor.
It acquired 45.3ha of land in Gohtong Jaya for RM78.3 million in 2018. The township has a potential gross development value (GDV) of up to RM15 billion.
Tropicana said that based on the master plan, Tropicana Grandhill is expected to usher a new trend of holistic and health-centric resort living lifestyle in the highlands.
Tropicana Grandhill will comprise residential, commercial, wellness, education and park.
The first phase will be the TwinPines Serviced Suites with over 1,400 units of serviced apartments.
Tropicana is also launching Shoppes & Residences (South), a mixed development comprising retail lots and serviced apartments at Tropicana Metropark, Subang Jaya.
The 35.4ha integrated development sits on prime freehold land in Subang Hi-Tech Industrial Park. Tropicana acquired the land in 2011 for RM385.5 million and has so far launched a few phases like Pandora, Paloma, and Paisley.
Other upcoming launches include new landed residential phases at Tropicana Aman, Kota Kemuning; the sixth residential and commercial phase at Tropicana Heights, Kajang; Tropicana Miyu condominiums at Jalan Harapan, Petaling Jaya; and shop offices at Gelang Patah, Johor, it said in a statement.
Tropicana said, looking ahead, the group will continue to stay focused on being market-driven in its product offerings while unlocking the value of its landbank in strategic locations in the Klang Valley, Genting Highlands, and the Southern region.
The group, controlled by tycoon Tan Sri Danny Tan Chee Sing completed its corporate exercise in November 2019 and its landbank increased to about 700ha with a total potential GDV of RM61.5 billion, along with the joint development agreements for 494ha of land with a potential GDV of RM4.8 billion.
Tropicana said, while the local property market is expected to be challenging in the short term, the group believes that the government will provide continued support towards homeownership.
"Against this backdrop, the group believes that there will still be demand for properties in prime locations with attractive pricing," it said.
In a filing with Bursa Malaysia, Tropicana posted lower revenue in the year ended 31 December 2019. Revenue fell by 31.5 per cent from RM1.1 billion to RM1.6 billion in the preceding year, due to lower sales and progress billings across projects in the Klang Valley and Johor.
Net profit jumped 97.5 per cent to RM335.8 million in 2019 from RM170 million recorded in 2018.
EXSIM Development Sdn Bhd (EXSIM Group) is expanding outside of Klang Valley and has inked multiple agreements with landowners in Penang, Johor, and Perak.
The first tranche of the Sukuk issuance is backed by the executed sales and purchase agreements of Scarletz Suites. Photo courtesy of Exsim
The head of marketing and corporate communications, Michelle Siew told NST Property that the agreements were signed in the last few months and are part of the group's strategy to venture out of Klang Valley for expansion.
"We have secured the land, some via outright purchase and the rest we intend to develop jointly with the landowners. The signing stage is over. We are now planning the development and target to launch the projects starting this year," said Siew.
Siew said the projects will have a combination of residential and commercial properties and the ratio will depend on demand in the respective markets.
She said Exsim is all set to perform much better this year over previous years, despite the current property market slowdown.
The group expects its property sales to increase by at least 30 per cent this year, and it could surpass RM2 billion on the back of new launches in Klang Valley, and also in mainland Penang, Johor Bahru and Ipoh, she said.
Last year Exsim registered about RM1.5 billion in sales from its projects in Klang Valley.
"We aim to launch around RM2 billion worth of new projects this year. When we launch we always target 100 per cent sales through various initiatives and promotions. So we are bullish Exsim will meet its RM2 billion sales target.
"For us, we are confident about our product and our workmanship. A product in the right location, with an innovative design, and at the right pricing will always sell," said Siew.
Timber-turned property developer
Exsim was established as a timber company back in 2002. The group ventured into property development in 2009, focusing on residential, commercial and industrial projects in the Klang Valley. Its completed developments include Nouvelle Industrial Park @ Kota Damansara, Nouvelle Kemuning Industrial Park @ Kota Kemuning, Nouvelle Industrial Park @ Meru, The Treez @ Bukit Jalil, The Leafz @ Sungai Besi, Twin Arkz @ Bukit Jalil, Expressionz Professional Suites @ Tun Razak, Petalz Residences @ Old Klang Road,
To date, the group has launched a total of 21 projects with a gross development value of RM8 billion and there's another RM18 billion in the pipeline.
Among its ongoing developments is The Arcuz @ Kelana Jaya, Millerz Square @ Old Klang Road, D'Nuri Residences @ Desa Petaling, Ceylonz Suites @ Bukit Ceylon, and Nouvelle Industrial Park @ Kota Puteri.
Its latest project is Scarletz Suites, which is Exsim’s second commercial property development in Kuala Lumpur City Centre. It is a serviced residence of 604 units housed within a single 49-storey tower, located on Jalan Yap Kwan Seng.
The launch price of this project started from RM750,000, for units sized between 450 square ft and 575 sq ft.
Siew said Scarletz Suites is fully taken up and is expected to be delivered to owners in the third quarter of 2021.
Sukuk issuance for projects
Exsim is raising RM3 billion from two Sukuk issuance to refinance loans as well as buy more land and fund its working capital needs.
The issuances include a RM2 billion Islamic medium-term note programme (IMTN programme) which carries a credit rating of AA3/stable assigned by RAM Ratings Services Bhd, and RM1 billion Islamic commercial papers (ICP).
The Sukuk was structured by NewParadigm Capital Markets Sdn Bhd and guaranteed by Danajamin Nasional Bhd.
The IMTN programme is the first Sukuk structure in Malaysia to monetise the future sales earnings of a commercial real estate development project, whereby each tranche will be secured against a specific project.
Exsim group managing director Lim Aik Hoe said during the signing ceremony recently that the first tranche is backed by the executed sales and purchase agreements of Scarletz Suites.
He said the programmes will help Exsim achieve its next level of growth and provide them with liquidity for future projects.
The first Sukuk programme by Exsim was in January 2019 to monetise its residential real estate earnings.
Berjaya Times Square Hotel, Kuala Lumpur. File Photo
By Sharen Kaur - Published by NST Property, February 27, 2020
Berjaya Corp Bhd (BCorp) says the recent outbreak of the novel coronavirus (COVID-19) has adversely impacted the group’s hotels and resorts business segment.
The outbreak of the virus caused travel restrictions by certain countries due to the fear of infection.
"Consequently, the group’s hotels and resorts business segment have been directly and adversely impacted by this outbreak and as such, this business segment’s performance is expected to be challenging in the subsequent quarters," said BCorp.
Berjaya Corp Bhd founder Tan Sri Vincent Tan. File Photo
BCorp, founded by billionaire Tan Sri Vincent Tan owns and operates several luxury to midscale brands in Malaysia, Philippines, Sri Lanka, Seychelles, Japan, and the United Kingdom via Berjaya Hotels & Resorts.
Besides hotels and resorts, the other main operating businesses of the group are marketing of consumer products and services, restaurants and cafes, property investment and development, and gaming operations.
BCorp registered revenue of RM2.08 billion for the quarter ended 31 December 2019, a bulk of which was contributed by the gaming business segment.
It reported a pre-tax loss of RM61.66 million in the current quarter under review mainly due to operating expenses incurred by the overseas and local property projects, and further impairment on the balance of Berjaya (China) Great Mall Co. Ltd (GMOC) sales proceeds in anticipation of the delay in the recovery proceedings.
In a filing with Bursa Malaysia, BCorp said the group's hotels and resorts segment reported lower revenue in the quarter ended 31 December 2019 due to lower occupancy and average room rates as compared to the preceding quarter.
"This was due to the onset of the monsoon season which affected the island resorts located on the East Coast of Peninsular Malaysia and the generally softer market conditions," it said.
As a result of lower revenue, the segment reported lower pre-tax profit as compared to the preceding quarter.
The group's property investment and development segment reported higher revenue in the current quarter mainly due to higher progress billings as compared to the preceding quarter. However, the segment contributed a higher loss in the current quarter mainly due to higher operating expenses from overseas and local projects.
For the cumulative six months period ended 31 December 2019, BCorp registered revenue of RM4.15 billion and a pre-tax loss of RM16.04 million.
Banks in Malaysia should correlate with home buyers for the issuance of strata titles for high-rise residential units so that they become the rightful legal owners of the property which they have paid for.
The Real Estate and Housing Developers’ Association president, Datuk Soam Heng Choon said banks and homebuyers must play a role to make sure the title is transferred.
Soam said, when the title is out, the banks must “perfect the charge” over the legal document, that is, make the transfer to the rightful owner.
"By doing this, nobody can play around with the title. Otherwise, there is a piece of title which is free from encumbrances running all over the place," said Soam.
Soam told NST Property that Rehda has been in discussions with banks to force it upon the buyer to get the strata title.
"If the buyer can't afford to come out with that bulk of the money to pay the stamp duty, what the bank can do is add that amount on to the loan and defray it over the loan payment. We understand that it is disbursement and banks don't give loans for disbursement. But in this instant, it is very important because it is part of the legal document. If you have been a good paymaster or customer of the bank, then RM10,000 to RM15,000 over a 20 years loan is a very small amount. This is one of the solutions to solve this problem if the buyer doesn't have the money to pay that amount for the stamp duty instead of leaving the strata title in the developer's office.
"Without the title, how confident are you that the developer won't take the title and do anything about it? There was a case whereby someone bought a landed property with cash but did not collect the title. Years later, a certain individual from the developer's office took advantage of the situation. He took the title and used it as an instrument of charge to the bank to get a loan without the buyer's knowledge. When the buyer started asking for the title, that individual said no title has been issued for the property. The buyer got his lawyer to do a search at the land office and discovered that the title had been charged to a bank. So if you don't get the strata title, somebody at the developer's office can misuse it. To get the title, you have to show the Sales and Purchase agreement to prove that you have paid for the property," said Soam.
The Real Estate and Housing Developers’ Association president, Datuk Soam Heng Choon said homeowners should realise the significance of a strata title. File Photo
Soam said homeowners should consider claiming their strata titles and realise its significance.
He said there are two issues regarding strata titles in Malaysia - developers not getting the strata titles, or strata titles have been issued but buyers are not taking it.
Soam said the new law has a section that compels the developer to get the strata title, a failure in which the buyer can retain 2.5 per cent of the selling price, but there is no compulsion on the buyer to transfer the title.
"It should be somewhere in the act to force the buyer to do it. The developer's role is compelled by law but there is nothing to compel the buyer and the bank to come and take the title. By compelling the buyer and the bank to do it, the government can get revenue," he said.
Soam said the government may stand to lose revenue from stamp duty payments and registration fees that could run into millions of ringgit if owners do not collect their strata titles.
Homeowners have to pay stamp duty to the Inland Revenue Department according to a scale. For the first RM100,000 it is one per cent or RM1,000 per parcel. For every RM200,000 and RM300,000 it is two per cent and three per cent respectively. For a property that is worth more than RM1 million, it is four per cent or RM40,000.
"When owners do not claim their strata title, the government will lose in terms of stamp duty collection. The tax is based on the purchase price as stated in the sales and purchase agreement. On top of the stamp duty, owners have to pay the legal fees and perhaps this is why many of them refuse to collect their strata title as it involves a big sum."
Uncollected strata titles can go to the wrong hands and the individuals may misuse it to obtain financing from banks for their own purpose. File Photo
What is a strata title?
A strata title is different from an individual title.
Strata titles are issued for properties in a multi-storey building where the land usually belongs to the owners or developers of the property. Strata titles are divided into separate individual titles issued to units of apartments, condominiums or offices within a development that share common facilities like the swimming pool, gym, elevators, and lounge.
Developers are required to apply for the strata titles on behalf of home buyers.
Individual titles are normally issued for landed properties like semi-detached homes, terraced houses, bungalows, villas and townhouses, and owners of the land.
Having a strata title can safeguard you should the developer come under liquidation or become insolvent.
To check on your strata title, you can either call the local land authority or conduct a quick search on the e-Tanah system using the master title details in your Sale and Purchase Agreement. Alternatively, you can call the developer to ask if they have applied for the strata title and what is the next stage.
Upon issuance of strata titles by the land authority, the developer shall transfer the titles to the purchasers within 30 days of the date of issuance.
Your rights as a strata property owner include:
A) The right to request for an Extraordinary General Meeting (EGM) if owners feel there is the misuse of funds by the management office or they are unhappy with the maintenance work, or decisions made by some members to award contracts for maintenance work to family members/friends. The Chairman of the committee should convene for an EGM within six weeks of receiving the requisition in writing from strata owners who are together entitled to at least 25 per cent of the aggregate share units. Should the management ignore the request for an EGM, owners can take the matter up with the Commissioner of Building (COB).
B) Right to vote during AGM and EGM: To exercise this right, owners will have to settle all of their outstanding services and sinking fund fees prior to the AGM or EGM. Those who fail to do so will not be allowed to cast a vote for any resolution. Each parcel of the unit will be entitled to one vote. A co-strata owner may vote by means of a jointly appointed proxy.
C) Owners have the right to request for the review of service charges and sinking fund if they are unsatisfied with the fees charged by the management, especially if there is a sudden increase in charges. They can bring up the matter with the COB, who will then determine the right amount that should be charged.
(D) Owners have the right to file a claim under the Strata Management Tribunal (SMT). The SMT was formed to provide feasible solutions for disputes regarding the failure to perform a function, duty or power imposed by SMA 2013. Disputes under the SMT can be handled at a minimum cost as no legal representation is allowed. However, the SMT has a pecuniary jurisdiction not exceeding RM250,000.
Strata title means better management of the property?
The issuance of the strata title will initiate the formation of the management corporation (MC) by owners of an apartment or condominium so there is better management of the property.
Due to the delay in the issuance of strata titles, about 90 per cent of new strata properties in Malaysia are still being managed by an interim body called Joint Management Bodies (JMB) while only 10 per cent have formed an MC.
A JMB is set up to run things, starting from the delivery of vacant possession by the developer to the purchasers.
An MC consists of unit owners who are voted in by other residents who attend the Annual General Meeting (AGM) of a strata development. They represent all strata unit owners and decide how to best manage the strata development.
The main responsibilities of the MC include enforcing rules and regulations, managing and maintaining common properties, paying quit rent, obtaining insurance, and complying with relevant laws and policies. However, an MC can only be established after strata titles have been issued, and at least 25 per cent of the aggregate share units have been transferred to unit owners.
Can you sell your property without a strata title?
Yes, you can! If you have found a buyer for your property, and you do not have the title registered to your name, you can prepare and sign a Deed of Assignment (DOA) made between yourself and the new owner.
The DOA is different from the Deed of Mutual Covenants (DMC), which is a legal document that lays out all the rules and regulations for parcel owners. The DMC is usually signed by the developer and the original homeowner.
The DOA assigns all the rights of beneficial ownership from the seller to the new owner and when the title is issued, the new owner will have his name registered as the owner of the parcel. The new owner, however, must give notice of assignment under Section 22D of the Housing Development (Control and Licensing) Act, 1966 to the developer. This notice informs the developer that the rights of the seller have now been assigned to the new owner.
By Sharen Kaur - Published in NST Property, February 26, 2020
SkyWorld Development Sdn Bhd could go public in the next two to three years to raise a minimum of RM200 million for expansion, says its major shareholder and group managing director Datuk Ng Thien Phing.
Ng told NST Property that the company is all set to launch an initial public offering (IPO) but added that it would wait for the market to recover.
"We have been talking about an IPO for several years and we are more than qualified to list. We can list now but the timing is not right. We are in no hurry as we have banks supporting us and we can carry out our projects and acquire new landbank without any issues. Banks like us because we make sure our developments are fully taken-up or 90-95 per cent sold before we launch our next project.
"Let's say we target to launch four projects this year, we will make sure the previous four projects are fully sold. If the projects don't hit the target, we will not launch new developments as we don't want to carry unsold stock. Now the current situation is that many developers have a lot of unsold stock but not SkyWorld," said Ng.
SkyWorld Development Sdn Bhd group managing director Datuk Ng Thien Phing said staff are given free hand to come up with good quality, innovative and sustainable products. - NSTP/SHAREN KAUR
Ng said future fundraising exercise by SkyWorld is to acquire landbank in strategic locations in Kuala Lumpur and to carry out existing and new projects.
He said the top three priorities for location are the land must be beside a park, next to a LRT station and in a highly-populated area.
"We are the only developer who builds affordable high-rise homes in a good location in the city with full condominium facilities and that is why buyers like us and we continue to build for them," said Ng.
SkyWorld has eight on-going high-rise residential projects in Kuala Lumpur which will keep the company busy for the next five years, said Ng.
The city developer is building more than 2,000 residential units and they are almost 99 per cent sold, said Ng, adding that the company's unbilled sales are over RM1 billion.
SkyLuxe On The Park stands majestically at Bukit Jalil. - NSTP/SHAREN KAUR
Human capital driving company forward
SkyWorld's greatest strength lies in its human capital and the staff is constantly coming up with innovative products that sell, said Ng.
"Human capital is truly the wealth of any organisation. I am a strategist. I make sure the principal is right and I let my staff do the rest of the work. I don't want to control them. I give them a platform and they do everything themselves. Everything is an open book at SkyWorld.
"I always ask my staff, when you buy a property, what are you looking at? Today you buy at RM150,000, tomorrow you want it to be RM180,000. So how do you make it RM180,000? You go for innovation, design and the product must be very efficient. How do you buy a BMW with a Camry price? I challenge them to come up with an innovative design to add the BMW features into the Camry. So although you are driving a Camry, the feeling is as though you are in a BMW and this is how we build at SkyWorld," said Ng.
Ng said if the product has good quality, is innovative and sustainable, the value will increase.
SkyWorld Development Sdn Bhd group managing director Datuk Ng Thien Phing. - NSTP/SHAREN KAUR
He cited the company's SkyLuxe On The Park’ project at Bukit Jalil which sold for RM700 per square feet during the launch in 2016, and the units are now transacting between RM900 psf and RM1,000 psf.
SkyLuxe On The Park features two towers of 43 and 44-storeys sitting on a 0.74-hectare site next to Bukit Jalil Recreational Park and opposite Bukit Jalil Golf and Country Resort.
It has a total of 477 units, with built-up sizes ranging from 661 sq ft to 1,224 sq ft. The project, with a gross development value of RM411.6 million, was fully sold within a few months.
The launch price started from RM600,000 for the smallest unit up to RM1 million.
"The value of the property has appreciated by at least 20 per cent since the launch. There are very limited sub-sale units in the market as the owners are anticipating the price to increase further," said Ng.
RM1.5 billion worth of new projects coming up
SkyWorld expects to launch four new projects with combined GDV of RM1.5 billion between July this year and March 2021. The lands are located in Cheras, Setapak, Old Klang Road, and Sentul.
Ng said the projects will offer affordable range apartments/condominiums.
He hinted that when the market is ready, the company will launch a high-end project in the next two to three years.
"We will see then if the market can take it or not but it will be the most expensive development by SkyWorld," said Ng.
Ng expects the market to continue to be challenging for the rest of this year, but SkyWorld is still on uptrend until now.
"When you want to sell a product, you need to ask what the market wants. It is not what we as a developer want. You need to know what the market wants, what are they looking for and what can they afford. We have to go back to the basics. We are not selling to our company directors or shareholders...we are selling to the public. If the public can only afford affordable products, we have to sell that to them," said Ng.
Should you hire a real estate negotiator (REN) or a real estate agent (REA) to help you sell or rent your property?
An agent (REA) must possess certain years of experience, some level of knowledge and education before being granted a license by the Board of Valuers, Appraisers and Estate Agents (BOVAEA).
A negotiator (REN) on the other hand, is not required to, hence why there are thousands of them in the market all over Malaysia and the highest count is in Klang Valley.
How do you get the right negotiator or agent for your property?
Recommendation by friends and family is one of the most important methods besides the REN or REA's experience handling the type of property you own.
Engaging a REN or REA will require some work like a background check on them and their respective companies. Some of the important aspects to look into when it comes to potential agents are their previous and current portfolio, whether they serve the area your property is located at, and the experience they have selling or leasing the type of property you own.
Also, you have to ask them how they plan to advertise your property. Are they going to be using online property portals, social media, flyers, email marketing or other advertising methods?
By asking them these questions you will be able to understand better how they are going to market your property for sale. You need to be convinced that you are getting the best of the best for the job.
A good property negotiator or agent will help you set the right price, market the home on various platforms, qualify the buyers or tenants as well as negotiate and finalise the deal. Hence, the role of an agent is important to successfully sell or lease your property at a good deal.
Sold! File Photo
But if you decide to sell or rent your property without engaging a negotiator or an agent, there are a few things you need to know. Firstly, you must have the time and resources to manage the calls and arrange viewings with potential buyers, most often at their convenience.
Since there is no commission to be paid to a negotiator or an agent, you can lower your selling price or rent to entice the buyer and the renter. Once they agree, you will have to engage a lawyer and pay all the necessary fees, stamp duty and taxes.
What do you do? Simple! If you cannot afford the time and resources, get a REN or REA to assist you.
There are a few things you should know before hiring either one of them.
Knowing the difference between REN and REA
REN is usually regarded as a junior. They must first work for an authorised real estate agency and have an official REN tag issued by the BOVAEA. Unlike REA, they’re not allowed to have their own property agency. REN needs to attend the Negotiator’s Certification Course (NCC), acquire a certificate of attendance, and submit basic paperwork in order to start working in a real estate agency. The easiest way to identify a REN is by checking their REN tag and it should be in red.
REA are certified professionals and registered under BOVAEA and their tag is blue. Any REA who offers property for sale, rent, or lease must be registered with BOVAEA. They need to take many examinations and require at least two years of working experience under another REA. Once they have qualified, they can start their own real estate agency and employ up to 30 RENs.
If the negotiator or agent you plan to deal with doesn’t have the appropriate credentials, you might end up becoming a victim of fraud.
Engaging a REN or REA
When you engage a real estate agent or negotiator, you have to screen for a potential candidate.
"You’ll want to run some background checks and have interviews with them. You’ll want to look at the agent’s previous and current portfolios, and also take note of their experience with the kind of property you’re going to assign to them. It's an extra point for them too if the agent has been recommended by your friends and family," said PropertyGuru Malaysia in an article entitled "5 Things You Should Know Before Hiring A Property Agent In Malaysia".
PropertyGuru said getting a good property agent can be of great help as they’ll set the right price, market the home well, screen potential buyers, and conduct all the negotiations on your behalf.
"In short, they can be a good investment that saves up a lot of your time and effort in managing your property transactions."
Ensure that all necessary agreements are in place when closing a deal. File Photo
Charges that come with hiring a real estate agent
Since real estate agents are regulated by BOVAEA, the same goes for their fees. The maximum they can charge is three per cent on any sales transaction,
regardless of whether the buyer or seller pays for it. However, they’re entitled to a minimum fee of RM1,000. These charges don’t apply to foreign properties that are marketed in Malaysia, or Malaysian properties marketed abroad.
Types of arrangements that can be made with a real estate agent
Exclusive agents: You appoint only one agent to market and sell your property. Under this arrangement, you cannot sell your own property.
Sole agents: You appoint only one agent but you can also sell your own property if you have a buyer.
Joint agency: You may appoint two to three agents to sell your property, and all agents have to be aware of each other’s appointment.
Sole Joint agency: You and your appointed agent work together to sell the
property, and the profits are to be divided based on prior agreements.
You can also appoint as many agents or negotiators as you want to help sell your property but you must screen all of them first. You must also inform all the agents that you working with a few to close the deal.
