By Sharen Kaur - Published in NST Property on November 24, 2021
The Andaman, a Luxury Collection Resort under the Marriott International umbrella, was destroyed in a fire in January. File Photo
sharen@nst.com.my
The Andaman, a five-star resort in Langkawi that burned down earlier this year, will most likely reopen in the second half of 2023.
According to Landmarks Bhd, the resort's reconstruction and restoration will begin in the first quarter of 2022 and will take up to 30 months.
The company said the designer team has begun work on the new resort's design.
The claims for the resort's fire losses are also progressing well, it said in a recent stock exchange filing.
The Andaman, a Luxury Collection Resort under the Marriott International umbrella, was severely damaged in two fires that broke out within hours on January 12, effectively destroying one entire block of the rainforest resort.
The resort is managed by the Marriott Group and is owned locally by Andaman Resort Sdn Bhd, a Landmarks subsidiary.
According to reports, Landmarks is collaborating with super-luxury hotel designer Jean-Michel Gathy, the principal of Denniston, who is responsible for some of the world's most iconic hotels, to rebuild the property.
Landmarks, a 24.98 per cent-owned associate of Genting Bhd is a major player in the resort and wellness industry. Its earnings are primarily derived from The Andaman and Treasure Bay Bintan, an Indonesian 338-hectare waterfront resort city.
Recently, the company released its unaudited interim results for the third quarter ended September 30, 2021 (3Q 2021).
Landmarks reported a net loss of RM15.72 million for the nine months, a significant improvement or 79 per cent lower than the net loss of RM48.1 million reported in the same period a year ago.
The company stated that the decrease in losses was primarily due to the recognition of estimated insurance receivables of RM140 million for The Andaman, while affected property, plant, and equipment totaling RM106.38 million were written off and impaired as a result of the fire incident.
It also stated that Treasure Bay Bintan incurred a lower operating loss following the sale of the Natra Bintan Hotel in late 2020.
Moving forward, the company is optimistic about the tourism industry's recovery, citing rising vaccination rates around the world and countries opening their borders to business and travel.
It stated that the opening of tourism hotspots such as Phuket Thailand with its Phuket Sandbox arrangements and Bali Indonesia with its Vaccinated Travel Lanes has increased tourist traffic to the two destinations.
"The surge in tourism demand has been encouraging and we foresee the demand to travel will continue to increase as countries continue to take steps to ease the restrictions previously imposed on overseas travelers," it said.
According to Landmarks, Treasure Bay Bintan has recently experienced an increase in both occupancy and room rate, which will be boosted further with the opening of the Singapore border.
The Indonesian government and local authorities in Bintan have been in active discussions with the Singapore Economic Development Board and the Singapore Tourism Board to open a travel lane between Singapore and Bintan, according to the statement.
"We expect there will be a surge in demand for our resorts should this happen," the company said.
By Sharen Kaur - Published in NST Property on November 18, 2021
Robin @ Rimbayu Type B has three bedrooms, three bathrooms, and a large opulent gate. Courtesy image
sharen@nst.com.my
IJM Land Bhd recently launched Robin @ Rimbayu, which saw 308 homes with a gross development value (GDV) of RM241 million sold within half an hour.
The sale was conducted by an online unit selection session, during which interested homebuyers were able to select a unit via the developer's official portal and enjoy Home Ownership Programme benefits like a 10 per cent discount on the purchase price, exemption of stamp duty for Memorandum of Transfer and loan, and free legal fees for Sales and Purchase Agreement and loan.
Robin @ Rimbayu, which is part of the 1,879-acre Bandar Rimbayu township in Selangor, had 615 double-storey link homes.
The homes are available in three different types and sizes – Type A (177 units), Type B (333 units), and Type C (105 units) – and are aimed at homebuyers looking for quality residential homes suitable for multigenerational families.
The intermediate Type A units have a land size of 18' x 65' and a built-up area of 1,535 sq ft.
Following the pandemic's recent lifestyle shift, which has been more home-based than ever, the ground floors in Type A units have an open layout concept that offers homeowners flexibility and control over their space utilisation. This allows for easy future renovation of the living spaces to meet their ever-changing needs.
Type A units start at RM648,800 and come with plenty of room and space, including a 7-foot backyard, high home ceilings, and a balcony in the master bedroom, all of which contribute to the spacious atmosphere.
The presence of sliding doors allows for improved lighting and ventilation, which improves livability and comfort at home.
Homebuyers can also consider Type B units, which have a larger built-up area of 1,665 sq ft and start at RM680,800.
While Type B prioritises space and an open concept layout, homebuyers of Type B benefit from a larger floor depth, which creates an even larger space.
Type A and Type B units in Robin @ Rimbayu both have three bedrooms, three bathrooms, and a large opulent gate.
Robin @ Rimbayu Type C - Intermediate units come with 8' wide garden. Courtesy image
Type C homes have a great layout design for growing families and families with elderly members, making them an excellent choice for a generational home.
The intermediate Type C units, which start at RM881,800, have a 28' x 65' land size and a large 2009 sq ft built-up.
Type C units are referred to as garden homes because they are the largest of the lot. They include an additional bedroom (four-bedroom, three bathrooms), a seven-foot-long back yard, an eight-foot-long garden, and a ground-floor room that opens directly to the garden. These features make the development very appealing to homebuyers with extended families who make full use of the green spaces incorporated within their homes' compound.
Homebuyers can also use the extra space at the car porch area to convert it into a linear garden with trees, plants, and shrubs, further amplifying the aspects of green spaces in a balanced and fulfilling life.
The open concept layout that is implemented on the ground floor is similar to Types A and B. The living, dining, and kitchen areas are not obstructed by compartmental walls.
The additional family hall on the first floor overlooks the garden below, providing additional space for family members to gather.
By Sharen Kaur - Published in NST Property, November 23, 2021
NSTP/AIZUDDIN SAAD
sharen@nst.com.my
There were 30,290 unsold completed residential units (overhang) worth RM19.7 billion nationwide as of September this year, according to Deputy Housing and Local Government Minister Ismail Muttalib.
According to Ismail, this is an improvement over the second quarter, when there were 31,112 unsold units worth RM21 billion.
This represented a 2.64 percent decrease in volume and a 1.74 percent decrease in the value of unsold units in the third quarter, reported Bernama.
"Although not obvious, there is a drop in the number of unsold houses after some developers reduced prices or gave discounts to clear the supply overhang amidst the uncertain economy," he said today in the Dewan Rakyat.
The Home Ownership Campaign (HOC) has played an important role in encouraging homeownership and reducing the number of unsold properties.
The HOC is a government initiative designed to assist first-time homebuyers while also encouraging the sale of unsold properties in the local housing market.
The campaign began in January 2019 and generated RM23.2 billion in sales, exceeding the government's initial target of RM17 billion.
Datuk N. K. Tong, deputy president of the Real Estate and Housing Developers' Association (Rehda), had said that as of September 30, a total of 73,503 residential units valued at RM47.38 billion (after discounts) had been sold since the HOC was reintroduced last year.
During that time, he said, buyers received discounts totaling more than RM9 billion.
Selangor dominated sales during the HOC, selling 30,888 units worth RM21.1 billion, followed by Kuala Lumpur, which sold 17,468 units worth RM11.6 billion.
Johor came in third with 8,723 units valued at RM5.4 billion sold, followed by Penang which achieved RM4.5 billion in sales with 6,784 units sold.
The HOC benefits include significant savings in stamp duty and tax exemption on housing loans, as well as a minimum 10 per cent discount on the purchase price of properties listed under the scheme.
The campaign, which will run until December 31, 2021, will cover registered residential properties worth between RM300,000 and RM2.5 million.
Industry participants hoped that the campaign would be extended until June or July of next year, with the possibility of expanding to include the secondary housing market.
With benefits such as stamp duty and tax exemptions, this provides property developers and individual sellers with an equal opportunity to sell their units in the residential market segment.
LBS Bina Group Bhd had secured RM1.1 billion in property sales and total bookings in the pipeline of RM950.2 million as of November 22, 2021. File/Photo
LBS Bina Group Bhd has achieved 92 per cent of its RM1.2 billion sales target for 2021, according to its executive chairman Tan Sri Lim Hock San.
He revealed in a statement that as of November 22, 2021, the company had secured RM1.1 billion in property sales and total bookings in the pipeline of RM950.2 million.
"This illustrates that we are building in the right areas and delivering affordable housing which satisfies the needs of the general public. While the outlook for the property sector is expected to remain challenging, we are encouraged by Malaysia's return to normalcy, having achieved over 90 per cent vaccination rate among the adult population," said Lim.
LBS Bina Group Bhd executive chairman Tan Sri Lim Hock San. File/Photo
Based on data released by the National Property Information Centre, there was an 18.5 per cent increase in the number of transactions for properties below RM500,000 in the first half of 2021, compared to the corresponding period in 2020.
According to Lim, this is a positive sign for the property sector, particularly for affordable housing, because it indicates that the property market recovering.
LBS has released its third-quarter results for the fiscal year ending December 31, 2021. (3Q FYE21).
Despite Covid-19-related restrictions and the re-implementation of the Full Movement Control Order, the company achieved revenue and profit after tax and minority interest (PATAMI) of RM254 million and RM18.1 million, respectively, for the quarter under review.
In the nine months ended September 30, 2021 (9MFYE21), revenue and PATAMI increased by 15 per cent and 153.7 per cent, respectively, to RM922.4 million and RM60 million, compared to the same period in 2020.
The 9MFYE21 PATMI surpassed the total PATAMI of RM51.3 million in 2020.
According to Lim, the increase was largely due to the company's ongoing development projects at KITA @ Cybersouth, LBS Alam Perdana, Alam Awana Industrial Park, Residensi Bintang Bukit Jalil, and Cameron Centrum's positive take-up rates and steady construction progress.
He hoped to maintain the current positive earnings momentum through the end of 2021.
LBS currently has 20 ongoing development projects totaling RM5.65 billion in gross development value (GDV).
The landbank for future development totals 2,794 acres, with a GDV of RM24.3 billion and unbilled sales of RM2.17 billion.
"According to the Housing Bureau Statistics, Malaysia still has a shortage of one million units of affordable residential housing. On the back of this, we recently launched Prestige Residence in Seri Kembangan and landed houses in Kita Mesra at KITA @ Cybersouth, whereby we have seen encouraging sales," Lim said.
KITA Mesra consists of 646 affordable landed homes (townhouses, double-storey and single-storey terraced houses) with a GDV of RM309 million.
Lim stated in a separate statement that KITA Mesra is yet another neighbourly residence that is set to follow in the footsteps of KITA @ Cybersouth township, fulfilling fellow Malaysians' homeownership dreams with affordable pricing for new family starters.
"We believe that, despite the ongoing pandemic, demand for landed properties will continue to rise, and this project can benefit buyers with its reasonable price range as well as long-term value for investments," he said.
By Sharen Kaur - Published in NST Property, November 15, 2021 25
Located at 205 Jalan Bukit Bintang, Menara YTL is the next significant step in the YTL Group's journey. Image courtesy of YTL
sharen@nst.com.my
The new corporate tower for the YTL Group, Menara YTL, which is located within the prestigious Jalan Bukit Bintang enclave is the star among the many office buildings nearby.
The boutique-scaled office tower is located on the same row as The Westin Kuala Lumpur and JW Marriott Hotel Kuala Lumpur, adjacent to The Starhill Mall.
Menara YTL, located at 205 Jalan Bukit Bintang, is the next significant step in the YTL Group's journey.
YTL had gone through incredible transformation and growth since its inception in 1955. It has progressed from a small home-grown construction company to an integrated infrastructure developer with operations in over ten countries.
This multifaceted organisation, which now has over 12 million customers worldwide, began in modest shop offices on Jalan Bukit Bintang. As YTL advanced into the future, it relocated to YTL Plaza, which eventually became its headquarters, to envision a new home that better reflects the evolution of the YTL brand and accommodates an ever-expanding new generation of employees.
Menara YTL will house many of the group's core businesses, including property development and investment, construction, hotel development and management, cement, power, e-commerce, and internet-based education solutions.
It will provide cutting-edge facilities for a dynamic new workforce of over 1,000 people while remaining true to the group's traditional roots by remaining in Bukit Bintang.
The design brief for the 41-storey Menara YTL was developed in 2017.
The tower was designed by a renowned architect, designer, and consultant hired by YTL and completed in December 2020.
Menara YTL stands majestically in Kuala Lumpur’s city centre. Courtesy image
The elegant touches and monochromatic scheme of the building make it a standout structure in Kuala Lumpur's skyline.
The total built-up area is 392,021 square feet, with two levels of basement parking and parking bays ranging from level 1 to level 7.
Meeting rooms are located on levels 9 and 10, while offices are located on levels 13 through 39. On level 8, there is also a cafe, sky lobby, roof garden, and town hall.
The tower has a high ratio of open space to development footprint, which is consistent with YTL's philosophy and commitment to sustainable development. Almost half of the site area (excluding the building footprint) is dedicated to calming greens and landscaping, far exceeding the local authorities' requirements.
One of the main challenges in designing the building was to create a one-of-a-kind structure that would arise from a narrow plot of land in the high-volume heart of Kuala Lumpur's premier shopping district.
The structure would also need to stand out and be distinctive in the typical YTL style, as well as bring the vision to life.
The sleek tower was designed by American architecture firm KPF Associates, with a "crystal" façade finish achieved through an artfully folded glass that creates a gem-like effect with variations in light reflection and contrasting textures.
The 8th-floor deck hosts a highly meaningful art installation. Courtesy image
Landscape architect and sculptor Dr. Colin K. Okashimo created an outdoor installation on the eighth-floor deck. The one-of-a-kind circular arrangement represents metaphorical expressions associated with Tan Sri Dr. Yeoh Tiong Lay, the late founder of the YTL Group.
Japanese-headquartered Studio Sawada created the spectacular installation in Menara YTL's lobby. Courtesy image
The tower's cavernous reception lobby, which spans over 25m in height across seven floors, is the "star." Studio Sawada Design made a lasting impression for the seven-story atrium with a glittering kinetic sculpture. The sculptural interpretation of 'komorebi,' dubbed Leaves, poetically captures the effect of sunlight streaming through tree leaves.
The soaring entrance lobby is lined with marble-clad columns and bronze detailing created by the Singapore-based Ministry of Design (MOD), an architecture and interior design studio founded in 2004 by Colin Seah.
The MOD's goal was to improve the "majestic" quality of this vast space while also making it welcoming. To accomplish this, the studio created a restrained material palette, which is dominated by the soaring white columns clad in Bugatsa marble that run the length of the lobby.
Menara YTL's cavernous reception lobby, which spans over 25 metre in height across seven floors, is the "star. Courtesy image
Behind the columns, floor-to-ceiling windows illuminate them and maximise natural light throughout the day, making the space "glow like a lantern in the evening."
At the back of the lobby is a deliberately symmetrical lift area, accessible via turnstiles and framed by a statement bronze doorway. This enables private access to the upper levels of YTL Headquarters, including the office oak-lined cafe, various meeting spaces, and a MOD function room.
Ministry of Design steered the design for levels 8 to 10. Courtesy image
The cafe features a rough grey granite counter with a polished black granite worktop against a backdrop of bronze wall-mounted shelves and oak-lined walls.
The walls and ceilings of the meeting rooms have also been lined with oak.
Berjaya Land Bhd will open Iceland Parliament Hotel, its 15th hotel in Iceland next year in a bid to expand its presence there. Courtesy image
sharen@nst.com.my
Berjaya Land Bhd (BLand) intends to acquire and operate more hotels in Iceland in order to expand its presence and target global travellers, according to the company's chief executive officer, Syed Ali Shahul Hameed.
Despite the global pandemic, most hotels in Iceland are performing well and BLand is confident that the country could deliver long-term promise to capitalise on growth opportunities, he said.
"Iceland is becoming increasingly popular among tourists. In Iceland, we operate 14 hotels, all of which are fully booked. We expect a significant increase in tourists once the global blockades are lifted, so we believe we are in a prime market," he told NST Property.
Berjaya Land Bhd chief executive officer, Syed Ali Shahul Hameed said that the Berjaya Group wants more hotels in Iceland to cater to global travellers. Courtesy image
According to Morgunblai, nearly three times as many foreign tourists visited Iceland via Keflavk International Airport in the summer of 2020. The majority (43 per cent) came from the United States, followed by Germany (nine per cent), Poland (seven per cent), the United Kingdom, and France (five per cent each).
The vast majority of visitors were on vacation, four per cent were visiting friends or family, and two per cent were there for health, research, or other purposes. In Iceland, the average number of overnight stays was 9.1 days.
According to the National Statistical Institute of Iceland, there were nearly 2.7 million overnight stays in summer 2021, which is 58 per cent more than in summer 2020 and about a quarter less than in summer 2019.
The occupancy rate for hotels in the summer was at its peak in August, at 76 per cent, with East Iceland accounting for approximately 83 per cent of the total.
This year, BLand entered into a share purchase agreement with Icelandair Group hf for the acquisition of a 100 per cent stake in Icelandair Hotels ehf through its wholly-owned Irish-incorporated subsidiary Berjaya Property Ireland Ltd.
With 1,471 keys across 14 hotels under various brands, BLand is Iceland's largest hotel operator.
Its hotel brands, which include Icelandair Hotel, Hilton, Edda, Canopy, Konsulat, and Alda, cater to a diverse range of market segments.
The company owns 875 rooms in Reykjavik, 595 in the countryside, 304 at Icelandair Hotels, and 292 summer rooms at Hotel Edda.
Icelandair Hotel Hamar. Courtesy image
The acquisition, according to Syed Ali, is consistent with BLand's goals of geographical diversification and revenue expansion.
"We anticipate increased visitor arrivals next year as more people around the world have been immunised and are eager to travel abroad. We believe that the Icelandic hotel industry has enormous potential for connecting Iceland with Asia, particularly Malaysia," he said.
BLand will open Iceland Parliament Hotel, its 15th hotel in Iceland, in the first half of next year to meet rising demand.
The hotel, which has 163 Scandinavian-style rooms, is a 50:50 collaboration between Dalsnes and Icelandair Group and is located next to the Icelandic Parliament - Alingi.
This means by the middle of next year BLand will operate a total of 1634 rooms in Iceland and the numbers will expand, Syed Ali said.
According to him, there have been numerous inquiries from Malaysians who want to visit Iceland.
He said that BLand is in discussions with several airlines and will collaborate to provide a variety of packages for Malaysians who want to visit Iceland.
"At the same time, we're putting together packages for Icelanders to visit Malaysia and stay in our hotels and resorts," he said.
BLand, which is controlled by Berjaya Corp (BCorp) Bhd, operates 36 other hotels and resorts in eight countries, including Malaysia, Vietnam, the Philippines, Japan, Sri Lanka, Seychelles, and the United Kingdom.
Last year BCorp sold its trophy asset, the Four Seasons Hotel & Hotel Residences Kyoto in Japan, to Godo Kaisha Tigre (Tigre) for about RM1.87 billion. The transaction gained more than RM600 million from the disposal.
Berjaya Kyoto Development Kabushiki Kaisha, a unit of BCorp, has signed a 17-year leaseback arrangement with Tigre to run the hotel.
As part of the group's hotel network expansion in Iceland, BCorp plans to duplicate the success of its Four Seasons development idea, according to Syed Ali.
It aims to build a Four Seasons Hotel & Residences located in Iceland's capital, Reykjavik.
The Berjaya Group founder, Tan Sri Vincent Tan in recent years bought numerous property assets there.
The proposed five-star hotel development will feature 150 rooms in addition to over 100 private residences with world-class facilities.
"We believe there is demand for luxury hotels, therefore we are exploring the possibilities of adding one to Icelandair Hotels' portfolio as we progress, either by acquiring existing properties or by building from the ground up in popular locations," he said.
An artist’s impression of Merdeka 118 with the 118-storey structure and residential towers. Image credit: merdeka118.com
Oakwood Premier Kuala Lumpur is scheduled to open in December 2024, next to Merdeka 118, the world's second-tallest structure that will reach almost 700 metres high next year.
It will have 348 serviced residences with one, two, and three bedrooms.
Merdeka 118 is an RM5 billion project being built in three phases on a 19-acre site in Kuala Lumpur's historical enclave.
The first phase of the project, which began in 2014, involved the construction of a 118-story tower, which overlooks two national historical landmarks, Stadium Merdeka and Stadium Negara, and a seven-story shopping mall.
The second and third phases consist of four luxury residential towers.
PNB Merdeka Ventures Sdn Bhd (PMVSB), a wholly-owned subsidiary of Permodalan Nasional Bhd (PNB) is developing Merdeka 118.
PMVSB inked a management agreement today with Oakwood Premier Kuala Lumpur to offer premium hospitality serviced residences at one of the four residential towers.
PNB president and group chief executive Ahmad Zulqarnain Onn said in a statement the company is confident that the Oakwood Premier brand will increase the development's appeal.
Oakwood Premier is a market leader in premium residential services, and it is known for its comfort and convenience.
Ahmad Zulqarnain said Oakwood Premier Kuala Lumpur complements Merdeka 118's mix of components, creating a desirable place to work, live and socialise with fully activated, well-thought-out spaces for our visiting guests and resident community.
"We are delighted to welcome this celebrated brand of premium serviced residences to the Merdeka 118 precinct family," he said.
Image credit: merdeka118.com
From a tourism standpoint, Merdeka 118, like its predecessors, Menara KL and the Petronas Twin Towers, will redefine Kuala Lumpur's skyline. The upper levels of Merdeka 118 will include the highest observation deck in South East Asia. It will also feature a sky lobby, restaurants, and breathtaking views of Kuala Lumpur.
Oakwood Premier Kuala Lumpur will be the brand's second property in the city, following Oakwood Hotel & Residence Kuala Lumpur, located on Jalan Ampang, offering 251 elegantly furnished hotel rooms and serviced apartments.
It joins a rapidly expanding portfolio of Oakwood Premier properties in Bangalore, Guangzhou, Hangzhou, Incheon, Jakarta, Melbourne, Phnom Penh, Singapore, Seoul, and Tokyo with more in the pipeline.
Oakwood chief executive officer Dean Schreiber said Oakwood Premier will deliver its distinctive brand of residential lifestyle for discerning guests who seek indulgence and style without compromising on hospitality excellence in Kuala Lumpur's most prestigious new development.
Property experts and stakeholders hoped for more incentives to push the property sector forward, amid the ongoing Covid-19 pandemic,
According to Sim Kwang Gek, a tax leader at Deloitte Malaysia, more could have been done to stimulate the property sector.
She proposed, among other things, extending the Home Ownership Campaign (HOC) beyond December 31, 2021.
Sim said that the Real Property Gains Tax (RPGT) exemption for Malaysian citizens and permanent residents disposing of properties with a holding period of more than five years should bring some joy and tax savings to these individuals.
CBRE / WTW group managing director Foo Gee Jen hoped for a full stamp duty exemption on the property's sale so that more money could end up in the pockets of upgraders for their next purchase.
He said that the RPGT exemption on the sale of properties held for five years would have encouraged more families to upgrade from their current smaller homes.
"We see the budget at a neutral relation since there are no groundbreaking initiatives planned for the next year. Though we would have hoped to see more sustainable efforts within the real estate industry such as investments in solar panels and green technology for safer homes, there is still much the industry can reap out of this announcement," he said.
Foo also said that the hotel industry requires more assistance than just wage subsidies to weather the current pandemic.
Datuk Soam Heng Choon, president of the Malaysia Real Estate and Housing Developers' Association said that developers were hoping for other positive measures towards a quicker recovery of the property market. NSTP/Photo
Datuk Soam Heng Choon, president of the Malaysia Real Estate and Housing Developers' Association (Rehda), said: "While we appreciate the government's efforts and consideration in preparing for an all-inclusive and balanced Budget 2022, we were actually hoping for other positive measures towards a quicker recovery of the property market."
Soam hoped that the removal of the RPGT would energise the Malaysian property market and result in a positive multiplier effect on the economy.
"The RPGT was initially introduced to curb speculation when the property market was buoyant but under the current soft market conditions, we welcome the government's move for the removal," he said in a statement.
Tan Sri Leong Hoy Kum, founder and group managing director of Mah Sing Group Bhd. File photo
Tan Sri Leong Hoy Kum, founder and group managing director of Mah Sing Group Bhd, said that the total allocation of RM332.1 billion under Budget 2022 is expected to provide a significant boost to the overall economy.
According to Leong, this will benefit every industry in some way because people's spending power will increase over time as market conditions improve, income stabilises, and consumer sentiment improves.
"We anticipate that the property market will benefit from newly announced measures such as the allocation of RM2 billion Housing Credit Guarantee Scheme to facilitate loans for those who do not have proof of consistent income, as well as the RPGT waiver for property disposed of in the sixth year. This would be a timely catalyst in expediting the recovery of the property industry," he said.
The RPGT exemption for property disposed of in the sixth year and above, according to Leong, is expected to increase interest in the secondary market.
"This would also boost the overall sentiment in the property market as buyers may look to upgrade their homes after selling their older units," he said.
Datuk Chang Kim Loong, honorary secretary-general of the National House Buyers Association (HBA), said that the allocation in Budget 2022 to build comfortable and quality homes for the lower-income segment will ensure that they have access to comfortable and quality housing.
He said HBA hopes that proper planning, allocation, distribution, and execution are done to ensure that these affordable properties are built for the targeted groups.
By Sharen Kaur - Published in NST Property, November 1, 2021
Club Med Borneo Kota Kinabalu will offer 400 rooms when it opens by early 2024.
sharen@nst.com.my
Club Med, owned by Hong Kong-listed Fosun Tourism Group is looking for greenfield opportunities in Malaysia, Thailand, Vietnam, Indonesia, and the Philippines to capitalise on the anticipated travel rebound.
According to Vincent Ong, Club Med's senior vice-president of commercial Southeast Asia (SEA) and Marketing Asia Pacific (APAC), the France-based resort chain operator is looking for investors and partners to help with the expansion.
The expansion of Club Med throughout SEA will be critical in continuing the brand's journey in APAC, he said.
"This is a five-year strategy. Club Med is looking for new deals in Asian countries and is targeting Asian countries for key opportunities. We're also on the lookout for future projects.
"We need to expand and diversify our presence in SEA because we expect Chinese visitors to return next year. We already have a resort on the Peninsular Malaysian Peninsula and another in East Malaysia. Vietnam, Thailand, Indonesia, and the Philippines will be the priority markets from now on. Our criteria for new resorts is always about the right location and with the right partner," Ong told NST Property.
Ong said that Club Med is open to potential new destinations in Malaysia, which is consistent with the company's approach in all SEA/APAC markets.
He said that Malaysian investors are also welcome to partner with Club Med to bring its tried-and-true formula to regional priority destinations outside of Malaysia.
Ong said that the Malaysian expansion would have to complement the company's flagship resort, Club Med Cherating in Kuantan, Pahang, and its second opening, Club Med Borneo Kota Kinabalu in Sabah.
He said that Club Med Borneo Kota Kinabalu, the company's first SEA greenfield beach resort, will pave the way for this regional expansion.
"If any of our partners can provide us with a good proposal, we will gladly consider it. Nothing is off-limits. We are also open to the idea of someone having land and wanting to develop a resort with us and open it under the Club Med brand," he said.
Club Med, the pioneer of premium all-inclusive vacations, expects Club Med Borneo Kota Kinabalu to open in late 2023 or early 2024.
It is setting up the resort in Kuala Penyu in collaboration with the asset owner Golden Sands Beach Resort City (GSBR) Sdn Bhd.
According to Ong, the 41-acre resort with 400 rooms will reveal a brand new destination encapsulating Sabah's beauty and potential.
"Club Med is confident in capitalising on the vast untapped potential of this pristine location, which is only six hours by flight from key Asian markets," he said.
The Club Med company is opening Club Med Borneo Kota Kinabalu in collaboration with Golden Sands Beach Resort City Sdn Bhd. Image courtesy of Club Med
GSBR, based in Sabah, was founded by like-minded investors to bring Club Med to Borneo.
In a press statement issued in September, GSBR's managing director, Peter Wong, stated that Club Med has been an outstanding partner in its collaboration for the Club Med Borneo Kota Kinabalu resort.
"They bring expertise in crafting unique experiences at resorts, and they have the right savoir-faire to bring them to life and elevate stays in the resort. We have the utmost confidence in Club Med's capabilities of creating a sense of destination at the Borneo Kota Kinabalu resort with upmarket designs that evoke emotional connections for guests with the destination, offering them the iconic Club Med experience in a site that is simply paradise," he said.
The Club Med company's success can be attributed to its ability to directly market and distribute its resorts, as evidenced by a consistent five per cent year-on-year growth and a steady 1.4 million guests pre-pandemic, bringing them a total of 1.7 billion Euros in business volume in 2019.
Occupancy rates around the world reflected this success, with pre-pandemic averages of 75 percent in the East, South Asia, and Pacific regions, and 76 percent and 78 percent in Europe-Africa and North America, respectively.
Club Med Cherating in Kuantan, Pahang opened in 1979. Courtesy image
Club Med Cherating, with 300 rooms, opened in 1979 and it was Club Med's first resort in Asia.
The 85-hectare site is sandwiched between a tropical forest and the South China Sea.
NST Property reported recently that the owners of Club Med Cherating are looking to sell the property after it identifies a strategic partner.
Ong had said that the sale is part of the group's strategy of selling assets at a reasonable price while remaining asset-light.
He clarified that Club Med's intention was not to cash out of Malaysia by selling the property, but rather to enter into a sale-and-leaseback agreement with the new owner to continue managing it.
"This resort is still a priority for Club Med, and it is in line with the global trend of adopting an asset-light strategy. Club Med is currently seeking partners and potential investors to assist us in revitalising, renovating, and expanding the resort," he said.
According to Ong, Club Med Cherating is currently at full capacity due to the lifting of the interstate travel ban imposed by the Covid-19.
Malaysia resumed interstate and international travel on October 11, after more than 90 per cent of the country's population had been completely vaccinated.
Club Med Cherating reopened on October 15, 2021. The room rate starts from RM930++ per adult for a three-day and two nights stay at the resort.
Outlook
Despite a difficult 18 months due to the pandemic, Ong is optimistic about the future of the hospitality and tourism industries.
"We expected a rosy outlook for 2021 in 2020, but what we got was delta. But there are more reasons to be optimistic for 2021. Travel will come back very sound. People are travel starved and they want to come out and travel.
"We believe that 2022 will return to 2019 levels by the second half of the year, with leisure travel being the first to recover. When it comes to leisure travel, decisions are always made from the heart. People want to go places where they can be happy with their families and have a good time," he said.
Club Med, according to Ong, has worked hard in the last 18 months to keep its head above water.
"One thing that worked in our favour was that we came into the crisis strong. In terms of profitability, 2019 was our best year yet. We had our best year in winter 2020, which is between December 2019 and February 2020, just before the Covid-19 hit. So we came into this crisis with a lot of cash.
"The second point to mention is that we have a very strong and supportive owner in the form of Fosun Tourism Group. They were there for us throughout the crisis. Third, Club Med is very international. If Asia is struggling, Europe will be picking up the slack," he said.
Ong said that in the last 18 months, it was also about making the most of the new Club Med locations.
The resorts were getting a lot of new guests, while domestic travel was still going strong, he said.
Club Med operates nearly 70 resorts around the world.
Fosun Tourism Group is continuing to aggressively expand the Club Med resort presence, to significantly increase its global footprint in the coming years, added Ong.
It was reported that 12 existing resorts worldwide are scheduled to complete renovations by June 30, 2024, with an increase in annual capacity of about 26 percent compared to 2019.
