Friday, August 27, 2021

Sand Nisko aims to develop a mini township in Melaka

BSharen Kaur - Published in NST Property on August 24, 2021

Sand Nisko Capital Bhd will undertake a residential project in Alor Gajah, Melaka with a landowner and explore further possibilities of working with other landowners in the surrounding area with the ultimate aim of establishing a mini township, with an estimated gross development value (GDV) of RM50 million.

Its property development subsidiary, Len Cheong Resources Sdn Bhd (LCR) has entered into a joint venture agreement (JVA) with one landowner, Professor Datuk Dr. Raduan Che Rose to develop the residential project on 5.63 acres in Durian Tunggal.

Sand Nisko managing director Emily Sow Mei Chet said the agreement represents a strategic opportunity for the group to increase its land bank in Melaka, thereby ensuring growth and sustainability of revenue and profitability.

LCR's role in the development involves the application for approvals from the appropriate authorities, as well as the construction works and completion of building units, the group said in a stock exchange filing.

It further said that Raduan shall within the time stipulated in the JVA deliver vacant possession of the land to LCR, and in return, he will get 12 per cent of the total number of units developed in the project.

Sand Nisko said it intends to undertake a residential development in Durian Tunggal as the land is in a mature location and ready for development.

The area is located less than two kilometres from Universiti Teknikal Malaysia Melaka and the Ayer Keroh Toll Plaza, the gateway to Melaka.

Sand Nisko said the property market in Melaka is also anticipated to recover gradually in 2021 with the allocation of funds from the state government to spur economic activities within the state.

"The group is of the view that Malacca Customary Land (MCL) status of the said land will not have a significant impact on the potential sales of the group's planned development as Malays form the majority demographic of the area. Since Melaka already imposes 60 per cent Bumiputra quota on all property developments, the group is thus confident to achieve the 100 per cent condition," it said.

Moving forward, Sand Nisko intends to seek further opportunities in the property development business.

Subsale properties more popular than new launches

 By NST Property, published on August 24, 2021 

iProperty/Photo

Homebuyers are more interested in purchasing a subsale residential property rather than buying a new property in the primary market, typically from a developer.

A subsale property is a second-hand home that is sold in the secondary market, where all matters pertaining to buying and selling are between the buyer and the existing homeowner.

Premendran Pathmanathan, general manager for customer data solutions & quality at iProperty.com.my said that subsale property has always been strong representing about 80 per cent to 85 per cent of total market transactions.

Despite the ongoing Covid-19 pandemic subsale is still at that level," he said during an online virtual conference of the bi-annual iProperty.com.my 1H 2021 property demand analytics here today.

Pathmanathan said the number one reason why there is more interest in subsale property is the location.

"Subsale is a ready unit in your ideal location. These locations are usually mature, and there is connectivity coupled within shopping malls and hospitals. It has everything. That is why subsale is always preferred to new primary projects," he said.

Premendran Pathmanathan, general manager for customer data solutions & quality at iProperty.com.my said subsale property is more popular thanks to the mature neighbourhoods. Courtesy image
Premendran Pathmanathan, general manager for customer data solutions & quality at iProperty.com.my said subsale property is more popular thanks to the mature neighbourhoods. Courtesy image

Pathmanathan added that areas like Kuala Lumpur and Petaling Jaya will remain hot spots for subsale property as land is limited and more people want to own a home there.

"You won't get a certain amount of projects coming in as space is limited and that makes subsale in this areas popular," he said.

On whether there is a rising demand in any particular locality because of the work-from-home order by the majority of companies, Pathmanathan said there are always the top 10 places high in demand but there are also smaller locations that are growing in demand.

He cited Bangsar and Salak South in Kuala Lumpur, where demand for larger size properties has been on the rise since the start of the pandemic.

Pathmanathan said in Selangor, he sees more demand in areas like Rawang, Setia Alam, and Serendah as the houses there have bigger space.

"People are more willing to purchase in these areas as the homes are bigger and they don't have to commute to work. A lot of companies are always considering hybrid working or fully working from home. The quality of life has improved as they are staying in a bigger unit," he said.

Improved consumer sentiment

Pathamanathan said that overall consumer sentiment has improved this year despite the lockdown.

He said this is seen from the intention to purchase with higher unique visits and property listing supply consisting of terraced houses, condominiums, service residences and apartments on the property portal, and loan applications staying above pre-Covid-19 levels.

The subsale residential property demand saw positive growth in 1H 2021, rising to +19.2 per cent from -2.5 per cent in H1 2020.

The value of home loan applications grew +86 per cent year-on-year (YoY) from RM96.4 billion in 1H 2020 to RM179.4 billion in 1H 2021, while the value of loans approved increased by +92.6 per cent YoY in the same period.

"It is encouraging to see recovery for the subsale residential market in 1H 2021. Covid-19 did not adversely affect this segment as it did in the first half of last year where the 1H 2020 demand figure dropped into the negative region. One of the critical factors which supported demand recovery in 1H 2021 is that property seekers have warmed up to the idea of conducting their property search journey online," Pathmanathan said.

He said with the Overnight Policy Rate at a record low of 1.75 per cent, many consumers are searching for property bargains in a low-interest-rate environment.

"The upward trend of approved home loan applications is promising. It shows that financially abled Malaysians are still interested in purchasing homes either for their stay or for investment purposes. However, positive figures aside, aspiring homeowners should plan before committing to long-term borrowing, as interest rates might not stay low for long. A return to pre-pandemic interest rates could result in higher monthly repayments in the future," he said.

Pathmanathan said interest in terraced houses remains the highest in Malaysia with a +29 per cent YoY increase and this has allowed sellers to maintain their high asking prices at +1.6 per cent.

"We also see that there is a higher demand for terraced houses in the suburbs which drove asking prices up marginally. Houses in the suburbs generally offer bigger space at a lower cost. The asking prices for condominiums or serviced residences, however, are dropping and this is mainly due to the existing overhang," he said.

Pathmanathan pointed out that property developers who own units in their housing projects and they have not been able to sell have started to drop prices.

"I don't have the data on how much they have cut but according to listings, there is a six per cent decline in prices for serviced residences as compared to last year, and four per cent for condominiums," he said.

Pathmanathan said the asking prices of high-rise homes in all major states, in general, have been reduced due to a high number of unsold units and as a means for sellers to attract buyers.

"As our country ramps up its vaccination program and moves towards herd immunity, we hope the economy and by extension, the property market will continue to recover in the second half of the year," he said.

Performance in key markets

Kuala Lumpur posted an +8.1 per cent growth in subsale residential demand, compared to +0.3 per cent in the first half of 2020 (1H 2020).

Pathmanathan said the asking prices in affluent areas such as Damansara Heights, Sri Hartamas, Mont Kiara, and Desa Parkcity are more likely to be higher as these are prime areas for wealthy property seekers.

However, property sellers in other parts of the capital city are lowering their asking prices, signalling a slight decline in holding power, he said.

The demand for terraced houses in Kuala Lumpur is robust at +27.1 per cent with asking prices growing by +2.9 per cent.

Bangsar saw strong demand for terraced houses priced between RM1.5 million and RM2 million (1,500 sq ft to 2,000 sq ft).

In contrast, Taman Tun Dr. Ismail attracted visitors interested in high-rise units priced between RM1 million and RM1.5 million (1,500 sq ft to 2,000 sq ft).

Selangor's subsale residential property demand grew by +17.6 per cent in 1H 2021, mainly driven by the +20.7 per cent YoY demand increase for terrace houses (+3.5 per cent for asking prices).

Puncak Alam and Dengkil saw high demand for terrace houses priced between RM500,000 and RM750,000 (1,500 sq ft to 2,000 sq ft), whereas property interest in Semenyih and Sungai Long was for spacious terrace houses (2,000 sq ft to 3,000 sq ft).

Pathmanathan said Penang benefitted from rising demand for properties around industrial hubs.

Compared to 1H 2020, Penang's subsale residential property demand growth has recovered from -6.5 per cent to +23 per cent YoY due to interest in industrial areas such as Batu Kawan and Bayan Lepas, which host many tech manufacturing companies.

On the mainland, lower-priced landed properties commanded higher asking prices between RM300,000 and RM500,000, mainly in Juru, Nibong Tebal, and Seberang Jaya.

"Interestingly, Bukit Jambul saw a surge in visitors for condominiums priced above RM1 million," said Pathmanathan.

The Johor subsale residential property market experienced positive growth of +36.5 per cent in 1H 2021 from -22.8 per cent in 1H 2020.

The increase came mainly from local property seekers as foreign demands, especially from Singapore, remain low with international borders still closed.

"Landed homes are still the preferred property type in Johor, with terraced houses priced between RM300,000 and RM500,000 (1,500 sq ft to 2,000 sq ft) being the top choice," said Pathmanathan.

Lagenda Properties turns to solar to 'power up' its new launches

 By Sharen Kaur - Published in NST Property on August 26, 2021 

Lagenda Tapah will have around 10,000 homes installed with solar photovoltaic systems.

sharen@nst.com.my

Lagenda Properties Bhd is developing the country's first large-scale sustainable township in Perak comprising solar-ready homes that will be selling below RM200,000 each.

The project, called Lagenda Tapah will have around 10,000 homes, and the gross development value is estimated at RM2 billion, said the company's managing director Datuk Jimmy Doh Jee Ming.

"Although the homes are solar-powered, we are still selling below RM200,000 each. We have been selling houses below RM200,000 all along. I am trying to make houses more affordable to people and this time I am installing solar photovoltaic (PV) systems for every home to enhance the value of the property.

"In Lagenda's point of view, as we move forward we are trying to make sure not only are the houses more affordable but we are adding value to the homes. We are improving our product from time to time to improve people's livelihood," Doh told NST Property.

Lagenda Properties Bhd managing director Datuk Jimmy Doh Jee Ming said the solar-ready homes will be offered below RM200,000 to the B40 and M40 groups. Image courtesy of Lagenda
Lagenda Properties Bhd managing director Datuk Jimmy Doh Jee Ming said the solar-ready homes will be offered below RM200,000 to the B40 and M40 groups. Image courtesy of Lagenda

Doh said Lagenda Tapah is designed for the B40 (lower-income) and M40 (middle-income) groups.

B40 is those with monthly household income below RM4,850, while M40 is those with a household income of between RM4,851 and RM10,970 a month.

Doh said the idea to have homes installed with PV systems came about after witnessing numerous households facing the challenge of increased electricity bills during the Movement Control Order (MCO) implemented in March last year.

He said this prompted the company to find an alternative solution to ease the burden of thousands of households in the country, starting off with Perak.

"Solar panels can reduce house temperature and generate electricity all year round. We believe this will reduce their monthly energy bill substantially. With savings from utility bills over the long term, our home buyers will ultimately enjoy a lower cost of living, adding to the attractiveness and affordability of our projects," said Doh.

Lagenda has appointed Solarvest Holdings Bhd as its solar PV systems partner for the township.

Solarvest will install solar PV systems for the first batch of 1,000 houses in Lagenda Tapah under Phase 1 of the township development.

The PV system can generate energy up to 98 per cent of the monthly electricity usage.

Doh said Phase 1 of Lagenda Tapah is targeted to launch in the fourth quarter of this year.

The township will be developed in seven to eight phases, over five to seven years, he said.

"Lagenda Tapah is our first sustainable township but it doesn't stop us from having solar solutions in other townships that we plan to develop in the future," he said.

Doh said the company has about 1420 hectares (ha) of development land in Perak, Kedah, Pahang (Kuantan), and Johor (Mersing) which will keep it busy for the next five to seven years.

The combined GDV for these large tracts of land is RM9 billion.

"We reverse engineer our house price according to affordability. When I launch in either Perak, Kedah, Kuantan, or Mersing, I will price my products according to the affordable needs of the respective areas," he said.

On the outlook, Doh said that he is confident in the country's affordable housing development prospects.

He said during the Full Movement Control Order, the company raked in close to RM700 million or 70 per cent of its RM1 billion sales target, despite the ongoing pandemic.

"Despite the lockdown and weak sentiments, we recorded RM700 million in property sales in just over six months. We are very optimistic moving forward and may likely exceed our RM1 billion sales target," he added.

The ongoing Bandar Baru Setia Awan Perdana in Sitiawan, Perak.
The ongoing Bandar Baru Setia Awan Perdana in Sitiawan, Perak.

The company's current two major affordable housing township projects are Bandar Baru Setia Awan Perdana in Sitiawan, and Lagenda Teluk Intan in Teluk Intan, which has a combined development area of 810ha and 20,000 affordable homes.

Tradewinds launches Glenmarie Hotel & Golf Resort in Selangor's capital city

 By Sharen Kaur - Published in NST Property on August 27, 2021 

The 260-room Glenmarie Hotel & Golf Resort overlooks the Garden Course; one of two award winning championship golf courses of Glenmarie Golf & Country Club. Courtesy image

sharen@nst.com.my

Tradewinds Corp Bhd, one of the largest hotel management companies in Malaysia, has launched Glenmarie Hotel & Golf Resort, a resort-styled sanctuary in Shah Alam, Selangor.

The 260-room resort is Tradewinds' latest brand of hotel and it overlooks the prestigious golf courses of Glenmarie Golf & Country Club.

"Tradewinds aims to better position their new hotel on the market, emphasising on quality, professionalism and excellent customer services, while remaining dedicated to delivering competitive and affordable prices for business and leisure travellers alike," said Glenmarie Hotel & Golf Resort cluster general manager, Jung Chul Soon.

Glenmarie Hotel & Golf Resort cluster general manager, Jung Chul Soon said the resort will emphasise on quality, professionalism and excellent customer services
Glenmarie Hotel & Golf Resort cluster general manager, Jung Chul Soon said the resort will emphasise quality, professionalism, and excellent customer services

Tradewinds is a diversified conglomerate with key interests in property development (as Tradewinds Property) and hospitality (as Tradewinds Hospitality).

Tradewinds Hospitality is currently one of the largest hotel owners in Malaysia with eight hospitality assets throughout the country including its flagship hotel, The Danna Langkawi.

Prestigious brands employed under its stable include Hilton, Mutiara, and Pelangi.

Jung said Glenmarie Hotel & Golf Resort offers several recreational facilities, five in-house restaurants, and well-equipped meeting spaces.

The grand lobby at Glenmarie Hotel & Golf Resort.
The grand lobby at Glenmarie Hotel & Golf Resort.

Further, the resort will have access to two award-winning championship golf courses.

"We are excited to welcome you to experience the new twist found in Glenmarie Hotel & Golf Resort, where we will be offering all the meaningful details that matter for a great stay," he said.

Jung said the resort is located 30 minutes from Kuala Lumpur International Airport and 10 minutes from Subang Skypark Airport, making it a sanctuary for a holiday retreat, a quick staycation from the bustling city, or a business stay. - NST Property